HomeMy WebLinkAboutAudited Comprehensive Annual Financial Report (CAFR) FYE 06/30/2015CITY OF PALM DESERT
FINANCE DEPARTMENT
Staff Report
REQUEST: RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED
FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30,
2015
DATE:
SUBMITTED BY
CONTENTS
Recommendation
March 10, 2016
Paul S. Gibson, Finance Director
1. City of Palm Desert Audited Financial Report for Fiscal Year
Ended June 30, 2015
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 Auditinq Standards
4. Appropriations Limit Worksheet No. 6
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, 2015.
Committee Recommendation
The Audit, Investment and Finance Committee received the audited financial statements
at their February 23, 2016 meeting, and it was recommended that the statements for the
fiscal year ended June 30, 2015 be received and filed by the City Council.
Background
White Nelson Diehl Evans LLP performed and completed the annual independent audit
for the fiscal year ended June 30, 2015, for the City of Palm Desert 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, 2015, 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.
GAFinance\Niamh Ortega\Staff Reports\Audit staff reports\Audit Staff Reports 2015\SR - Council audit 2015 CAFR.docx
Staff Report
Receive and file CAFR for Fiscal Year ended June 30, 2015
March 10, 2016
Page 2 of 2
In conducting their audit, the auditors test the City's internal controls. Attached is the
Report on Internal Controls over Financial Reportinq and on compliance and other
matters based on an audit of Financial Statements performed in accordance with
Government Auditinq Standards.
The CAFR was submitted for the Certificate of Achievement for Excellence in Financial
Reportinq from the Government Finance Officers Association. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program's requirements, as it has for the past 18 years.
Staff requests that the Council receive and file the City of Palm Desert's audited financial
reports for the fiscal year ended June 30, 2015.
Fiscal Impact
There is no fiscal impact as a result of this action.
Submitted by:
Paul S. Gibson, finance Director/City Treasurer
PSG:JLE:nmo
Approved:
J n . Wohlmuth, City Manager
G:\Finance\Niamh Ortega\Staff Reports\Audit staff reports\Audit Staff Reports 2015\SR - Council audit 2015 CAFR.docx
CITY OF PALM DESERT, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2015
CITY OF PALM DESERT
TABLE OF CONTENTS
JUNE 30, 2015
INTRODUCTORY SECTION
Table of Contents
Page
Number
Letter of Transmittal vii
GFOA Certificate of Achievement for Excellence in Financial Reporting xi
List of Principal Officials xiii
Organization Chart xiv
FINANCIAL SECTION
AUDITORS' REPORT
Independent Auditors' Report 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS
Exhibit A - Statement of Net Position 17
Exhibit B - Statement of Activities 18
Exhibit C - Balance Sheet - Governmental Funds 22
Exhibit D - Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 25
Exhibit E - Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds 26
Exhibit F - Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 28
Exhibit G - Statement of Net Position - Proprietary Funds 29
Exhibit H - Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds 30
I
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2015
BASIC FINANCIAL STATEMENTS (CONTINUED):
Exhibit I - Statement of Cash Flows - Proprietary Funds
Exhibit J - Statement of Net Position - Fiduciary Funds
Page
Number
31
33
Exhibit K - Statement of Changes in Net Position - Fiduciary Funds 34
Notes to Basic Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
35
Schedule 1 - Schedule of Changes in the Net Pension Liability and Related Ratios 126
Schedule 2 - Schedule of Contributions - Defined Benefit Pension Plan 127
Schedule 3 - Schedule of Funding Progress:
Other Post -Employment Benefit Plan
128
Schedule 4 - Budgetary Comparison Schedule - General Fund 129
Schedule 5 - Budgetary Comparison Schedule - Prop A Fire Tax
Special Revenue Fund 130
Note to Required Supplementary Information
SUPPLEMENTARY SCHEDULES
131
General Fund: 133
Schedule 6 - Budgetary Comparison Schedule by Department - General Fund 134
Other Governmental Funds - Combinine Statements: 139
Schedule 7 - Combining Balance Sheet - Other Governmental Funds 140
Schedule 8 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Governmental Funds 141
i1
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2015
Page
Number
SUPPLEMENTARY SCHEDULES (CONTINUED)
Other Governmental Funds - Other Special Revenue: 143
Schedule 9 - Combining Balance Sheet - Other Special Revenue Funds 146
Schedule 10 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Special Revenue Funds 150
Schedule 11 - Schedules of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - Special Revenue Funds:
A. Traffic Safety 154
B. Gas Tax 155
C. Housing Mitigation Fees 156
D. Community Development Block Grant 157
E. Public Safety Police Grants 158
F. El Paseo Assessment District 159
G. Landscape and Lighting Districts No. 1-17 160
Other Governmental Funds - Other Debt Service: 161
Schedule 12 - Balance Sheet - Other Debt Service Fund 162
Schedule 13 - Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Debt Service Fund 163
Other Governmental Funds - Other Capital Proiects: 165
Schedule 14 - Combining Balance Sheet - Other Capital Projects Funds 166
Schedule 15 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Capital Projects Funds 170
Internal Service Funds: 175
Schedule 16 - Combining Statement of Net Position 176
Schedule 17 - Combining Statement of Revenues, Expenditures and Changes
in Fund Net Position 177
Schedule 18 - Combining Statement of Cash Flows 178
Aaencv Funds: 181
Schedule 19 - Combining Statement of Assets and Liabilities - All Agency Funds 182
Schedule 20 - Combining Statement of Changes in Assets and
Liabilities - All Agency Funds 183
iii
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2015
Page
Number
STATISTICAL SECTION
Description of Statistical Section 185
Financial Trends
Net Position by Component
186
Changes in Net Position
187
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
196
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 2015 and 2014 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
Ratios 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
IV
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2015
Page
Number
STATISTICAL SECTION
(CONTINUED)
Demographic and Economic Information
Demographic and Economic Statistics 213
Principal Employers 214
Supplemental Miscellaneous Statistics 215
Overatinp, Information
Full-time Equivalent City Government Employees by Function/Program 216
Operating Indicators by Function/Program 217
Capital Asset Statistics by Function/Program 218
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION
Redevelopment Agency Project Areas Map
221
Project Area Statistics
223
Tax Allocation Bond Issue Information
224
FY 2014/2015 Breakdown of Basic 1 % Property Tax Levy Rates
225
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Original
226
Change in Taxable Values:
Redevelopment Project Area No. 1 - Original
227
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Amended
228
Change in Taxable Values:
Redevelopment Project Area No. 1 - Amended
229
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 2
230
Change in Taxable Values:
Redevelopment Project Area No. 2
231
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 3
232
Change in Taxable Values:
Redevelopment Project Area No. 3
233
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 4
234
Change in Taxable Values:
Redevelopment Project Area No. 4
235
Historical Tax Increment - Redevelopment Property
Tax Trust Fund Summary
236
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vi
December 9, 2015
Citizens of the City of Palm Desert,
Honorable Mayor and Members of the City Council
The Comprehensive Annual Financial Report (CAFR) of the City of Palm Desert for the fiscal year ended
June 30, 2015, is submitted herewith. This report was prepared by the City's Finance Department.
Management assumes full responsibility for the completeness and reliability of the information contained
in this report, based upon a comprehensive framework of internal controls established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
It is the policy of the City of Palm Desert to have an annual audit performed by an independent certified
public accountant. The independent audit of the City's financial statements for fiscal year ended
June 30, 2015, was conducted by White Nelson Diehl Evans, LLP as appointed by the City Council. 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, 2015, 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 of Palm Desert is required to
undergo an annual single audit. When applicable, information related to this single audit, including the
schedule of expenditures of federal awards, findings and recommendations, and auditor's reports on the
internal control structure and compliance with applicable laws and regulations, is included in a separately
issued report. For the fiscal year ended June 30, 2015, the City is 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.
vii
Citizens of the City of Palm Desert, Honorable Mayor and Members of*the City Council
December 9, 2015
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 of Palm Desert 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 and fire
protection through the County of Riverside; 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 improvements, infrastructure and maintenance
Public art and community promotion
Planning, zoning, building and engineering
Housing and community development
Code enforcement and inspections
Economic development, business support and energy
conservation
Legislative, city clerk, visitor center, public information
General administration, fiscal services, human resources,
and risk management
Building inspections and services
Public Enterprise Services
Golf course
Office complex
Internal service
Blended & Discrete Component Units
PD Housing Authority
PD Financing Authority
PD Recreational Facilities Corp.
The City maintains budgetary controls. The objective of these budgetary controls is 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
level 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.
viii
Citizens of the City of Palm Desert, Honorable Mayor and Members of*the City Council
December 9, 2015
The adopted budget for fiscal year 2014-2015 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, 2015, has a population
of 51,053 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 of Palm Desert 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 of Palm Desert receives less than 7 percent of the post -Prop 13 property taxes; therefore the City
relies heavily on sales tax and transient occupancy tax.
As a balanced community where economic, environmental, social, and cultural development flourishes,
Palm Desert is a much sought-after place to visit and reside. 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 1,127-seat theater which hosts some of the biggest names and well-
known productions in show business; The Living Desert wildlife and botanical park, 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 EI 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 two new recently opened satellite campuses for California State University,
San Bernardino and the University of California, Riverside. Both of these institutions of higher learning
offer multiple options for degree programs and continuing education.
The State of California Employment Development Department Labor Market Information Division
reported that the City of Palm Desert had an unemployment rate of 4.6% compared to Riverside County,
which had a rate of 6.5%. The City's balanced foundation of tourism, culture, and education has
strengthened the City's labor force.
ix
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
December 9, 2015
LONG-TERM FINANCIAL PLANNING
In June 2015 the City Council approved a total of $15.19 million in funding for various capital
improvement projects for the fiscal year of 2015-2016. Projects include traffic signals, sidewalk repairs
and construction, accessibility improvements, street widening, improving drainage areas, park
improvements, apartment complex construction and improvements at Desert Willow Golf Resort.
Certificates of Awards for Outstanding Financial Resorting
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, 2014. This was the 18th
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 general 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.
Acknowledements
The preparation of this report could not have been accomplished without the efficient and dedicated
services of the entire Finance Department staff whose names are listed individually on the title page. Due
credit is given to the Mayor and the City Council members for their interest and support in planning and
conducting the operations of our City in a 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. To the citizens of Palm Desert, our greatest appreciation 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,
John M. Wohlmuth
City Manager
JI,E.jle
Paul S. Gibson
Director of Finance/City Treasurer
INSERT GFOA CERTIFICATE AS PAGE NUMBER xi
xi
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xii
INSERT LIST OF PRINCIAPL OFFICERS AS PAGE NUMBER xiii
INSERT ORGANIZATION CHART AS PAGE NUMBER xiv
xtv
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and
Members of the City Council
City of Palm Desert, California
Report on 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 the City of Palm Desert, California, (the City) as of and for the year
ended June 30, 2015, and the related notes to the basic 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.
Auditors' Responsibility
Our responsibility is to express opinions on these basic 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 basic financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the basic financial statements. The procedures selected depend on the auditors' 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 auditors consider internal control relevant to the City'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 City'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.
2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: -714.978.1300 • Fax: _714.978.7893
Q ej- located in Orange and San Digo G unties
Opinions
In our opinion, the basic 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, 2015, 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.
Emphasis of Matter
As discussed in Note 19 to the financial statements, the City's governmental activities net position was
restated. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, the schedule of changes in the net pension liability and related
ratios, the schedule of contributions - defined benefit pension plan, the schedule of funding progress -
other post -employment benefit plan, and the budgetary comparison schedules for the General Fund and
the Prop A Fire Tax Special Revenue Fund, identified as Required Supplementary Information (RSI) in
the accompanying table of contents, be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the RSI 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 the
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, supplementary
schedules and statistical section are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
-2-
Other Matters (Continued)
Other Information (Continued)
The supplementary 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.
Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the supplementary 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing .Standards, we have also issued our report dated
December 9, 2015, 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 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
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.
Irvine, California
December 9, 2015
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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, 2015 provides: a comparison of current year to prior year ending results based on the
government -wide 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 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 $756.58 million (net position).
• The City's governmental activities net position decreased $31.09 million, and the net position of
the business -type activities decreased $0.50 million.
• During the year, the City's revenues were $93.62 million and expenses were $88.12 million in its
governmental activities, excluding transfers, compared to fiscal year 2014, where revenues were
$95.77 million and expenses were $86.07 million.
• In the City's business -type activities, expenses were. $0.06 million more than the $9.31 million
generated in green fees, merchandise sales, rental income and other revenues compared to the
prior year, where business -type activities revenues were $0.20 million less than its expenses.
• The City's governmental activities program revenues and general revenues decreased by $2.15
million, or 2.24 percent from prior year, while program expenses increased $2.05 million, or 2.38
percent from prior year.
• Business -type activities revenues increased $0.14 million, from $9.17 million to $9.31 million.
Expenses remained unchanged from the prior year at $9.37 million.
• The revenues available for expenditures were $1.59 million more than budgeted in the General
Fund. The City kept General Fund expenditures within spending limits by $2.37 million.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and
Statement of Activities (on pages 17, 18 and 19) provide information about the activities of the City as a
whole and present a long-term view of the City's finances. 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. 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.), 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.
M
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 — 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
private -purpose trust fund and 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.
M.f410 i7_FM1IA.6C971114
The City's combined net position decreased $31.59 million from $788.17 million to $756.58 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, 2015 and
2014
Governmental
Business
-Type
Activities
Activities
Total
2015
2014
2015
2014
2015
2014
Current and restricted assets
$
279.69
$ 281.52
$ 5.25
$
4.82
$
284.94
$
286.34
Capital assets
473.72
466.25
72.56
73.23
546.28
539.48
TOTAL ASSETS
753.41
747.77
77.81
78.05
831.22
825.82
Deferred outflows of resources
$
3.39
$ 0.02
$ -
$
-
$
3.39
$
0.02
Long-term liabilities
outstanding
43.87
11.96
1.44
1.22
45.31
13.18
Other liabilities
26.62
23.59
0.94
0.90
27.56
24.49
TOTAL LIABILITIES
70.49
35.55
2.38
2.12
72.87
37.67
Deferred inflows of resources
$
5.16
$ -
$ -
$
-
$
5.16
$
-
Net position:
Net investment in capital
assets
473.72
466.25
71.13
72.01
544.85
538.26
Restricted
135.90
140.46
-
-
135.90
140.46
Unrestricted
71.53
105.53
4.30
3.92
75.83
109.45
TOTAL NET
POSITION
$
681.15
$ 712.24
$ 75.43
$
75.93
$
756.58
$
788.17
1,200
1,000
800
600
400
6 200
0
Table 1- Graph
Total Assets & Liabilities
2015 2014 2015 2014 2015 2014
Governmental Business -Type Total
Activities Activities
■Total Assets
Total Liabilities
-8-
The City's governmental activities net position decreased by 4.37 percent, or $31.09 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 10.50 percent of the
overall total net position. Unrestricted net position decreased $34.00 million from $105.53 million in 2014
to $71.53 million in 2015. The decrease was due to the City implementing GASB Statements No. 68 and
71 that resulted in a prior year restatement that decreased the City's net positon by $39.73 million.
The decrease in restricted net position of $4.56 million was due to the following: restricted capital projects
decreased by $1.59 million due to capital projects expenses; restricted special projects decreased by
$2.97 million. The majority of the decrease is attributable to the $4.65 million repayment of debt by the
energy independence fund.
Investment in capital assets increased $7.47 million. The calculation of Investment in capital assets
includes outstanding debt used to purchase or construct the City's capital assets. Major additions
included the Monterey interchange improvements totaling $5.58 million and the construction of an
affordable housing apartment complex totaling $11.59 million.
The net position of the business -type activities saw a decrease of $0.50 million, from $75.93 million to
$75.43 million. The main factors for the decrease in net position were the transfer out and depreciation
expense. Total liabilities increased $0.26 million from $2.12 million in 2014 to $2.38 million in 2015. The
increase is due to the new golf cart lease (see Note 6).
The City's governmental activities total assets and deferred outflow of resources increased $9.01 million
from $747.79 million in 2014 to $756.80 million in 2015. The increase is attributable to capital assets
increase of $7.47 million.
Total liabilities and deferred inflows increased by $40.10 million from $35.55 in 2014 to $75.65 million in
2015. As mentioned above, the City implementing GASB Statements No. 68 and 71, which resulted in an
increase in the City's debt of $39.73 million (see Note 1d and Note 8).
TABLE 2
CHANGES IN NET POSITION
(IN MILLIONS)
As of June 30, 2015 and 2014
Governmental
Business -Type
Activities
Activities
Total
2015
2014
2015 2014
2015
2014
REVENUES:
Program Revenues:
Charges for services
$ 22.65 $
22.15
$ 9.20 $
9.06
$ 31.85 $
31.21
Operating grants and
contributions
7.51
9.74
-
-
7.51
9.74
Capital grants and
contributions
19.30
21.09
0.05
0.10
19.35
21.19
General Revenues:
Property taxes
10.29
9.57
-
-
10.29
9.57
Transient occupancy tax
10.93
10.06
10.93
10.06
Sales tax
17.61
17.29
17.61
17.29
Othertaxes
3.10
3.03
-
-
3.10
3.03
Investment earnings
0.49
0.36
0.01
0.01
0.50
0.37
Gain on sale of capital assets
0.01
0.49
0.05
-
0.06
0.49
Other revenues
1.73
1.99
-
-
1.73
1.99
TOTAL REVENUES
93.62
95.77
9.31
9.17
102.93
104.94
EXPENSES:
General government
16.34
19.19
-
-
16.34
19.19
Housing and redevelopment
11.67
7.85
11.67
7.85
Public safety
32.08
29.34
32.08
29.34
Parks, recreation and culture
8.60
8.33
8.60
8.33
Public works
19.14
21.12
19.14
21.12
Interest on long-term debt
0.29
0.24
-
-
0.29
0.24
Golf Course -Desert Willow
-
-
8.43
8.45
8.43
8.45
Office Complex-Parkview
-
-
0.94
0.92
0.94
0.92
TOTAL EXPENSES
88.12
86.07
9.37
9.37
97.49
95.44
INCREASE(DECREASE)IN NET
POSITION BEFORE TRANSFERS
5.50
9.70
(0.06)
(0.20)
5.44
9.50
Transfers
0.44
0.44
(0.44)
(0.44)
-
-
Gain on transfer to Successor Agency
-
-
-
-
INCREASE (DECREASE) IN NET POSITION
5.94
10.14
(0.50)
(0.64)
5.44
9.50
BEGINNING NET POSITION, AS RESTATED
675.21
702.10
75.93
76.57
751.14
778.67
ENDING NET POSITION
$ 681.15 $
712.24
$ 75.43 $
75.93
$ 756.58 $
788.17
9"1
Table 2- Graph
Changes in Net Position
800
700 'x
600
500 W
c
° 400
300
A
m 200
O
c 100
2015
2014
Governmental Activities
Governmental Activities
80
70
60
50
40
30
20
10
2015 2014
Business -Type Activities
Beginning Net
Position
� Total Revenues
—*—Ending Net
Position
O Total Expenses
Total revenue, excluding transfers decreased from $95.77 million to $93.62 million, a 2.24 percent
decrease. The decrease is the result of both the operating grants and capital grants and contributions
combined decrease of $4.02 million. Factors that contributed to the changes in revenues are as follows:
• In the prior fiscal year, the Housing Authority received $9.16 million from moneys disbursed by
the County Auditor -Controller from the Successor Agency's Redevelopment Property Tax Trust
Fund (RPTTF), pursuant to an obligation of the Successor Agency to provide certain funds for the
development to affordable housing units. The Successor Agency listed such obligation on every
Recognized Obligation Payment Schedules (ROPS), without objection from the State of California
Department of Finance (DOF) until the ROPS for the period covering July 1, 2014 through
December 31, 2014 (ROPS 14-15A). Starting with ROPS 14-15A, the DOF has disapproved the
relevant items on the ROPS, making the determination that they are not enforceable obligations
of the Successor Agency, and as the result, no RPTTF funding was received therefor in fiscal
year 2014-15.
• Decrease of $1.59 million due to the denial by the State of California of the semiannual allocation
for capital asset replacement on the ROPS.
• In the prior year, the City received $6.39 million in capital contributions of lands and buildings
representing government -use property transfers from the Successor Agency to the City pursuant
to the Long Range Property Management Plan, as approved by the California State Department
of Finance. Current year capital contribution from the Successor Agency was $0.48 million.
• The Housing Authority received intergovernmental revenues for the construction of the Carlos
Ortega Villas apartment complex totaling $11.61 million.
115
Total expenses increased from $86.07 million to $88.12 million, a 2.38 percent increase. General
government decreased $2.85 million, Housing and Redevelopment increased $3.82 million, public safety
increased $2.74 million and public works decreased $1.98 million. The City continues to find ways to
operate without the assistance of the former Redevelopment Agency. All transactions of the former
Redevelopment Agency are reflected on pages 33 and 34 under the title of Successor Agency to the
Palm Desert Redevelopment Agency Private -Purpose Trust Fund.
The following schedule represents the net cost of providing services:
General government
Housing and redevelopment
Public safety
Parks, recreation and culture
Public works
Interest on long term debt
Total
2015
Governmental Activities
Net(Expense)Revenue
12% 1% 21%
-16%
Business -type Activities
Governmental Activities
Net (Expense) Revenue
(In Millions)
2015
(11.96)
8.58
(21.71)
(5.96)
(7.31)
(0.29)
($38.65)
2014
Governmental Activities
Net(Expense)Revenue
19%
o.
2014
($8.59)
9.81
(18.67)
(5.48)
(9.92)
(0.24)
($33.09)
General government
■ Housing and
17% redevelopment
i Public safety
■ Parks, recreation &
culture
%
■ Public works
■ Interest on long term
debt
Business -type activities revenues increased $0.14 million from $9.17 million to $9.31 Million, a 1.50
percent increase. The overall increase was related to the charges for services. The major increase was in
merchandise revenues which recognized a $0.14 million increase from the prior year. Additionally, both
the Desert Willow Golf Resort and the Parkview Office diligently focused on retaining the market share in
their respective industries. The Desert Willow Golf Resort continued to utilize a strategic pricing structure
which allowed the golf resort to retain the course utilization with minimal impact to the overall average
green fee. The overall rounds mix and play remained consistent with the previous years.
The Parkview Office Complex revenues slightly increased resulting from the addition of two new tenants
and the annual rental rate adjustments stipulated in the lease agreement with the tenants.
- 12-
Operating expenses for business -type activities remained constant at $9.37 million. Both Desert Willow
and the City continued to implement effective and efficient methods to control costs without impacting
service.
THE CITY'S FUNDS
On Page 22, the governmental funds balance sheet is shown. The combined fund balance of $227.20
million decreased from $238.65 million, or 4.79 percent. This total includes the General Fund balance of
$79.81 million, which increased by $1.44 million from prior year. The City's General Fund balance has a
nonspendable balance of $10.31 million, which includes advances, loans and notes, and prepaid costs,
$1.77 million in assigned fund balance, and $67.73 million of unassigned fund balance. The change in the
General Fund's balance was due to growth in sales and transient occupancy tax, and an increase in
transfers in for street resurfacing reimbursement. Other major funds balance changes are noted below:
• The Prop A Fire Tax Special Revenue Fund: The fund balance decreased from $2.46 million to
$1.81 million, a $0.65 million decrease. The City transferred $2 million to cover part of the
shortage. Increase in contract costs was the major factor in the fund balance decrease.
• The Low Moderate Housing Asset Fund: The fund balance decreased by $0.86 million or 2
percent. The low moderate housing asset fund sold property below the cost in order to assist low-
income residents to purchase homes held in inventory ensuring an affordable housing cost.
• Measure A Special Revenue Fund: the fund balance decreased from $18.54 million to $14.78
million, a 20.28 percent decrease. The decrease in the fund balance is due to construction and
maintenance expenditures.
• Housing Authority Fund: This fund had a minor decrease of $0.14 million from $20.85 million to
$20.71 million. The major factor in the decrease was the transfer out to the RDA Low Income
Housing Fund for operational costs related to housing program expenditures including ownership
of 1,010 affordable housing units.
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 were requested to adjust their budgets to meet
current demands. At year-end, budgets were adjusted for unanticipated 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 $52.23 million were $1.59 million more than the
final budgeted revenues of $50.64 million. Sales and transient occupancy taxes continue to be the top
two revenue generators for the City totaling $28.36 million, or 54.30 percent of the General Fund budget.
The General Fund actual ending expenditures of $50.80 million were $2.37 million less than the final
budget of $53.17 million. There were changes in the original budget compared to the final budget during
the year. The original expenditure budget was $48.25 million compared to the final budget of $53.17
million, a $4.92 million increase. The major change was due to the appropriations of an additional $1.52
million in transfers to other funds and $1 million in retiree funding. In addition to the transfers, the street
resurfacing budget increased $1.05 million.
- 13 -
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2015, the City had $546.28 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 increase (including additions and
deductions) of $6.80 million over the prior year.
TABLE 3
CAPITAL ASSETS AT YEAR-END
(NET OF DEPRECIATION, IN MILLIONS)
For the years ended June 30, 2015 and 2014
Land
Construction -in -progress
Buildings and improvements
other than buildings
Machinery and equipment
Infrastructure & right-of-way
TOTALS
UIX
,,, 600
c
° 500
E 400
c
300
0 200
c 100
Governmental
Business -Type
Activities
Activities
2015
2014
2015 2014
$ 79.25 $
78.44
26.14
8.24
99.56
106.03
$ 52.74 $ 52.74
18.11
1.71
18.89
1.60
$ 72.56 $ 73.23
Table 3 -Graph
Capital Assets at Year -End
(Net of Depreciation in Millions)
2015 2014 2015 2014 2015 2014
Governmental Business -Type Total
Activities Activities
Total
2015 2014
$ 131.99 $ 131.18
26.14 8.24
117.67 124.92
3.89 3.63
266.59 271.51
$ 546.28 $ 539.48
■ Land
■Construction in Progress
• Buildings and Improvements
■ Equipment
•Infrastructure
• Totals
-14-
This year's major additions included (in millions)
Affordable housing apartment complex $ 11.59
Monterey interchange improvements 5.58
Equipment purchases 0.89
Land acquisitions 0.80
$ 18.86
The City's fiscal year 2016 capital budget calls for it to spend an additional $15.19 million plus continuing
capital projects spending of $39.87 million from prior year, with the majority being spent on street
improvements and development of a low-income housing apartment project. Projects will be funded with
existing bond proceeds or funds that have been designated by an outside party for specific use. More
detailed information about the City's capital assets is presented in Note 1g and Note 5 to the financial
statements.
Debt
At year-end, the City's governmental activities had $43.87 million in bonds, claims, compensated
absences and pension liability versus $11.96 million last year, an increase of $31.91 million as shown in
Table 4. The major cause for the increase was the required GASB Statements No. 68 and 71 recording of
the city's pension liability. Prior to GASB Statements No. 68 and 71, the city's pension liability was a
footnote in the financial statements that included the city's estimated pension liability.
TABLE 4
OUTSTANDING DEBT, AT YEAR-END
(IN MILLIONS)
For the years ended June 30, 2015 and 2014
Governmental
Business -Type
Activities
Activities
Total
2015
2014
2015 2014
2015
2014
Compensated absences payable
$ 2.67 $
2.69
$ - $ -
$ 2.67 $
2.69
Capital leases
-
-
1.44 1.22
1.44
1.22
Claims and judgements payable
0.30
1.02
- -
0.30
1.02
Special assessments debt with
government commitment
1.49
1.53
- -
1.49
1.53
Limited Obligation Improvement
bonds
1.81
2.06
- -
1.81
2.06
Lease revenue bond
-
4.66
- -
-
4.66
Pension liability
37.60
-
-
37.60
-
TOTALS
$ 43.87 $
11.96
$ 1.44 $ 1.22
$ 45.31 $
13.18
- 15 -
The City was able to meet its current year debt obligation in a timely manner. Debts issued in the prior
year have been used to finance various capital projects.
The City's business -type activities debt increased $0.22 million from $1.22 million to $1.44 million. Debt in
the business -type activities is for capital leasing of equipment. The City's golf course uses leasing as an
alternative to purchasing golf carts and maintenance equipment to maintain a cash flow to operate the
day-to-day activities. The increase in the City's business -type activities debt was directly related to the
new golf carts leases in the amount of $0.98 million. 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 2016, management focused on three core principles: 1) minimize
the impact of budget cuts to key services and maintain the level of service expected by residents,
businesses, and visitors; 2) minimize the number of tax and fee adjustments required to maintain existing
service levels; and 3) review standards of infrastructure maintenance and operation and adjust standards
to provide quality of city facilities in line with budget considerations, including but not limited to parks,
roads, and buildings. The following economic factors were considered by management:
• In the five-year capital improvement program, all restricted capital funds have been allocated to
various projects. As a result, any additional projects would require a transfer from the general
fund, which would mean a decrease to the City's unobligated general fund reserve. A detailed
analysis will be performed and a cost benefit approach will be employed before the general fund
reserves are decreased for capital improvements.
• Increase in healthcare and retirement costs.
The 2016 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. A copy of the City's 2015-2016 financial plan can be obtained by contacting the City's
Finance Department or visit the City's website at www.citvofr)almdesert.orq.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, 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, contact the
Finance Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert,
California 92260-2578, or (760) 346-0611.
NM,
CITY OF PALM DESERT
STATEMENT OF NET POSITION
ASSETS:
Cash and investments
Receivables:
Accounts
Notes
Interest
Loans
Internal balances
Prepaid costs
Inventories
Deposits
Due from other governments
Property held for resale
Due from component unit
Advances to Succesor Agency
Restricted assets:
Cash with fiscal agent
Net OPEB asset
Capital assets, not being depreciated
Capital assets, being depreciated
"TOTAL ASSF: FS
DEFERRED OUTFLOWS OF RESOURCES:
Deferred outflows from pensions
LIABILITIES:
Accounts payable
Accrued liabilities
Interest payable
Unearned revenues
Deposits payable
Due to primary government
Long-term liabilities:
Due within one year
n It1N Due in more than one year
"'%)t1'ension liability
TOTAL LIABILITIES
DEFF.RRF.D INFLOWS OF RESOURCES:
Deferred inflows from pensions
NL T POSITION:
Net investment in capital assets
Restricted for:
Special projects
Capital projects
Unrestricted (deficit)
TOTAL, NET POSITION
June 30, 2015
Governmental
Activities
$ 160,353,727
1,790,325
11490,250
476,093
11,533,306
500,000
923,635
31,469
15,007,273
11,339,246
287,181
285,000
40,476,288
26,703,404
8,493,635
226,449,293
247,273,401
753,413,526
3.393.041
Primary Government
Business -type
Activities
$ 4,1(A,814
107,129
(500,000)
34,831
250,566
1,185,970
52,736,087
19,828,702
77,808,099
10,404,390
596,850
392,200
171,687
99,507
-
15,171,948
143,665
558,835
28,150
754,000
537,242
5,520,605
897,804
37,591,271
-
70,492,756
2,375,398
5,160,141 -
Total
$ 164,518,541
1,897,454
1,490.250
476,093
11,533,306
958,466
282,035
15,007,273
11,339,246
287,181
1,470,970
40.476.288
26,703,404
8,493,635
279,185,380
267,102,103
831,221,625
3,393,041
11,001,240
563,887
99,507
15,315,613
586,985
1,291,242
6,418,409
37,591,271
72,868,154
5,160,141
473,722,694 71,129,743 5441852,437
80,293,982 - 80,293,982
55,606,538 - 55,606,538
71,530,456 4,302,958 75,833,414
$ 681.153.670 $ 75.432.701 $ 756.586.371
See accompanying notes to basic financial statements.
Exhibit A
Component
Unit
Palm Desert
Recreational
Facilities
Corporation
$ 72,236
41,314
9,464
45,860
168,874
49,334
53,126
91,430
1,470,970
1,664,860
(1,495,986)
(1.495.986)-
-17-
CITY OF PALM DESERT
STATEMENT OF ACTIVITIES
For the year ended June 30, 2015
Functions/Programs
Primary Government:
Governmental activities:
General government
Ilousing and redevelopment
Public safety
Parks, recreation and culture
Public works
Interest on long term debt
Total governmental activities
Business -type activities:
Desert Willow Golf Course
Office Complex - Parkview
Total business -type activities
Total primary government
Component Unit:
Palm Desert Recreational Facilities Corp.
See accompanying notes to basic financial statements.
Expenses
$ 16,337,393
11,666,724
32,077,635
8,598,242
19,144,213
294,258
88,118,465
Program Revenue
Charges Operating Capital
for Grants and Grants and
Services Contributions Contributions
$ 2,088,393
7,971,265
9,987,891
772,728
1,832,241
22,652,518
$ 922,734
331,138
1,483,358
4,775,664
7,512,894
$ 1,363,158
12,281,184
46,193
379,062
5,227,418
19,297,015
8,433,267 7,894,676 - 47,768
934,296 1,306,042 - -
9,367,563 9,200,718 - 47,768
$ 97,486,028 $ 31,853,236 $ 7,512,894 $ 19,344,783
$ 2,651,665 $ 2,671,630
General revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues
Change in net position
Net position - beginning of year, as restated
Net position - end of year
NII
Exhibit B
Net (13xpenses) Revenues and Changes in Net Position
Component
Primary Government
Unit
Palm Desert
Recreational
Governmental
Business -type
Facilities
Activities
Activities
Total
Corporation
$ (11,963,108)
$ $
(11.963,108)
$ -
8.585,725
-
8,585.725
-
(21,712,413)
-
(21,712,413)
-
(5.963,094)
-
(5,963,094)
-
(7,308,890)
-
(7,308,890)
-
(294,258)
-
(294,258)
-
(38,656,038)
-
(38,656,038)
-
-
(490,823)
(490,823)
-
-
371,746
371,746
-
-
(119,077)
(119,077)
-
(38,656,038)
(119,077)
(38,775,115)
-
- - 19,965
10,285.701
-
10,285,701 -
10,932,898
-
10,932,898 -
17,610,967
-
17,610,967 -
3,102,431
-
3,102,431 -
494,452
11,774
506,226 -
11,720
47,938
59,658 -
1,726,007
-
1.726,007 -
437,500
(437,500)
- -
44,601,676
(377,788)
44.223,888 -
5,945,638
(496,865)
5,448,773 19,965
675,208,032
75,929,566
751,137,598 (1,515,951)
$ 681,153,670
$ 75,432,701
$ 756,586,371 $ (1,495,986)
- 19-
THIS PAGE INTENTIONALLY LEFT BLANK
-20-
FUND FINANCIAL STATEMENTS
-21-
CITY OF PALM DESERT
BALANCE. SHEET- GOVERNMENTAL FUNDS
June 30, 2015
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Assessments
Notes
Interest
Loans
Prepaid costs
Due from other governments
Due from other funds
Deposits
Advances to Successor Agency
Inventories
Property held for resale
Due from component unit
Restricted assets:
Cash and investments with fiscal agent
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
Deposits payable
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
FUND BALANCES:
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
See accompanying notes to basic financial statements.
Special Revenue Funds
Low Moderate
Prop A
I lousing
General
Fire Tax
Asset
$ 70,831,696
$ 2,692,072
$ 12,251,419
1,318,074
-
23,093
1,489,000
-
1,250
209,381
-
41,051
39,806
-
6,798,671
923,287
-
-
3,279,985
454,147
-
2,500,000
-
4,531,000
9,236,000
-
17,821,288
26,368
-
-
-
-
287,181
285,000
-
-
$ 90,138,597 $ 3,146,219 $ 41,754,953
$ 5,462,170 $ 1,339,281 $ 6,216
281,161 - -
1,847,200 - -
19,479 - -
7,6 t 0,010 1,339,281 6,216
2,717,918 - 33,938
10,312,261
- 1,806,938 41,714,799
1,771,278 - 67,727,130 - -
79,810,669 1,806,938 41,714,799
$ 90,138,597 $ 3,146,219 $ 41,754,953
-22-
Exhibit C
Special Revenue
Funds (Continued)
Other
"Dotal
Housing
Governmental
Governmental
Measure A
Authority
Funds
Funds
$ 14,527,336
$ 16,607,246
$ 33,445,582
$ 150,355,351
-
24,069
425,089
1,790,325
-
-
1,347,184
1,347,184
-
-
-
1.490,250
-
11,639
214,022
476,093
-
-
4,694,829
11,533,306
-
-
348
923,635
5,233,821
1,911,636
459,657
11,339,246
-
-
500,000
7,531,000
15,007.273
-
-
15,007,273
-
-
13,419,000
40,476,288
-
-
5,101
31.469
-
-
-
287,181
-
-
-
285,000
342,603
4,847,951
21,512,850
26,703,404
$ 35,111,033
$ 23,402,541
$ 76,023,662
$ 269,577,005
$ 747,492
$ 2,088,851
$ 708,130
$ 10,352,140
-
102,848
8,191
392,200
-
-
5,183,800
7,031,000
15,007,273
16,047
129,149
15,171,948
-
481,252
77,583
558,835
15,754,765
2,689,998
6,106,853
33,506,123
4,576,270
-
1.545,109
8,873,235
-
-
348
10,312,609
14,779,998
8,838,055
39,121,422
106,261,212
-
117875,488
5,077,399
16,952,887
-
-
24,172,531
25,943,809
-
-
-
67,727,130
14,779,998
20,713,543
68,371,700
227,197,647
$ 35,111,033 $ 23,402,541 $ 76,023,662 $ 269,577,005
-23-
THIS PAGE INTENTIONALLY LEFT BLANK
-24-
Exhibit D
CITY OF PALM DESERT
RECONCILIATION OF TI IE BALANCE SHF,ET Ol' GOVF,RNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
June 30, 2015
Total fund balance for governmental funds
$ 227,197,647
Amounts reported for governmental activities in the Statement of Net Position are
different because:
When capital assets (land, buildings, equipment, etc.) that are to be used in
governmental activities are purchased or constructed, the costs of those assets
are reported as expenditures in governmental funds. However, the Statement
of Net Position includes those capital assets and contribution among the assets
of the City as a whole:
Beginning Balance, net depreciation
$ 464,965,573
Current year additions
19,341,235
Current year deletions
(1,071,998)
Current year depreciation
(11,615,255)
Contributions
644,784
Ending Balance, net depreciation
472,264.339
Long-term debt activities have not been included in the governmental fund
activities:
Long-term debt
(3,601,463)
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due.
(99,507)
Because the focus of governmental funds is on short-term financing, some assets
will not be available to pay for current -period expenditures. Those assets (for
example, receivables) are offset by deferred inflows of resources in the governmental
funds and, thus, are not included in fund balance:
Palm Desert Recreational Facilities Corporation - relates to the amount of rent
owed by component unit to City's General Fund
285,000
Measure A Special Revenue Fund grants not received in available period
4,576,270
Interest that was not paid at year-end
3179785
Sales tax
291,996
Successor Agency (former Redevelopment Agency) land purchase from City
2,055,000
7,526,051
Pension related debt applicable to the City's governmental activities are not due and
payable in the current period and accordingly are not reported as fund liabilities.
Deferred outflows of resources and deferred inflows of resources related to pensions
are only reported in the Statement of Net Position as the changes in these amounts
effects only the government -wide statements for governmental activities
Deferred outflows of resources
3,393,041
Deferred inflows of resources
(5,160,141)
Pension liability
(37,591,271)
(39,358,371)
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.
8,493,635
Internal service fund are used by management to charge the costs of certain activities,
such as equipment and compensated absences to individual funds. The assets and
liabilities of the internal service fund must be added to the Statement of Net Position.
8,731,339
Net position of governmental activities
$ 681.153.670
See accompanying notes to basic financial statements.
-25-
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURE'S AND
CI IANGF,S IN FUND BALANCES - GOVERNMENTAL. FUNDS
For the year ended June 30, 2015
REVENUES:
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Contributions from property owners
Miscellaneous
TOTAL, REVENUES
EXPENDITURES:
Current:
General government
Housing and redevelopment
Public safety
Parks, recreation and culture
Public works
Contributions to property owners
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURE'S
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Sale of property
Transfers in
Transfers out
TOTAL, OTI IER FINANCING
SOURCES (USES)
NET Cl IANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
See accompanying notes to basic financial statements.
Special Revenue Funds
Low Moderate
Prop A
I lousing
General
Fire Tax
Asset
$ 44,442,260
$ 5,136,552
$ -
-
2,097,968
-
1,467,668
-
1,802,929
982,099
-
150,550
-
3,200
1,051,639
-
-
416,656
5,966
120,533
88,053
-
-
636,056
14,689
128,873
50,055,811
8,237,274
252,606
14,056,713 - -
- - 3,280,608
20,631,915 10,856,288 -
3,912,300 - -
7,343,333 - -
357,926 32,718 -
46,302,187 10,889,006 3,280,608
3,753,624
(2,651,732)
(3,028,002)
-
-
2,163,222
2,179,472
2,000,000
-
(4,496,373)
-
-
(2,316,901)
2,000,000
2,163,222
1,436,723
(651,732)
(864,780)
78,373,946
2,458,670
42,579,579
$ 79,810,669
$ 1,806,938
$ 41,714,799
-26-
Special Revenue
Funds (Continued)
I lousing
Measure A Authority
$ 2,579,446 $
1,682, 707
56,967
4,319,120
Exhibit E
Other
Total
Governmental
Governmental
Funds
Funds
-
$ 413,111
$ 52,571,369
-
960,798
3,058,766
-
289,582
1,757,250
11,612,044
2,901,525
18,981,304
5,507,012
-
5,660,762
-
767,825
1,819,464
48,325
594,215
1,242,662
-
136,559
224,612
-
9,168
9,168
100
1,598,205
2,377,923
17,167,481
7,670,988
87,703,280
-
-
1,411,033
15,467,746
-
4,975,399
1,093,014
9,349,021
-
-
331,011
31,819,214
-
-
2,324,417
6,236,717
2,435,389
-
3,303,666
13,082,388
-
-
49
49
5,641,977
11,598, 816
1,708,550
19,339,987
-
-
4,944,000
4,944,000
-
-
240,219
240,219
8,077, 366
16,574,215
15,3 55,959
100,47%341
(3,758,246)
593,266
(7,684,971)
(12,776,061)
-
-
-
2,163,222
-
-
1,953,387
6,132,859
-
(733,014)
(1,741,972)
(6,971,359)
-
(733,014)
211,415
1,324,722
(3,758,246)
(139,748)
(7,473,556)
(11,451,339)
18,538,244
20,853,291
75,845,256
238,648,986
$ 14,779,998
$ 20,713,543
$ 68,371,700
$ 227,197,647
-27-
Exhibit F
CITY OF PALM DESERT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2015
Net change in fund balances - total governmental funds $ (11,451,339)
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 a depreciation expense. This is the amount by which
capital outlays exceeded depreciation and deletions in the current period:
Current year additions
$ 19,341,235
Current year deletions
(1,071,998)
Current year depreciation
(11,615,255)
Contributions of property from Successor Agency
644,784
7,298,766
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Position.
4,944,000
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 (54,039)
Net change in claims and judgments for the current period 721,869
667,830
Unavailable revenues are not reported as revenues in governmental funds
and thus has the effect of decreasing fund balances. For the City as a whole,
however, the collection of these receipts increases the net position in the Statement
of Net Position and results in revenues in the Statement of Activities:
Unavailable revenue 2,969,008
Revenues will not be collected within 60 days of the City's fiscal year-end and,
therefore, are not considered available in the governmental funds:
Interest on note issued by the City 56,688
Sales tax true -up from the State 45,833
102,521
Current year change for other post employment benefit asset. 45,024
Pension expense reported in the governmental funds includes the annual required
contributions. In the Statement of Activities, pension expense includes the change
in the net pension liability, and related change in pension amounts for deferred
outflows of resources and deferred inflows of resources 370,529
Internal service funds arc used by management to charge the costs of certain activities,
such as equipment and compensated absences. The net revenues (expenses) of the
internal service funds are reported with governmental activities. 999,299
Change in net position of governmental activitie< $ 5,945,638
Sec accompanying notes to basic financial statements.
-28-
CITY OF PAI,M DESERT
STATEMENTOF NET POSITION
PROPRIETARY FUNDS
June 30, 2015
ASSETS:
CURRENT ASSETS:
Cash and investments
Receivables:
Accounts
Prepaid costs
Inventories
Due from component unit (PDRFC)
TOTAL, CURRENT ASSETS
CAPITAL ASSETS:
Nondepreciable
Depreciable, net
CAPITAL ASSETS, NET
TOTAL ASSETS
LIABII,ITII:S:
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Deposits payable
Unearned revenues
Due to other funds
Compensated absences
Capital leases
TOTAL CURRENT LIABILITIES
NONCURRENT LIABILITIES:
Compensated absences
Capital leases
TOTAL NONCURRENT LIABILITIFS
TOTAL LIABILITIES
NET POSITION:
Net investment in capital assets
Unrestricted
TOTAL NET POSITION
See accompanying notes to basic financial statements.
Exhibit G
Business -type Activities -
Enterprise Funds
Major
Other
Fund
Fund
Governmental
Desert
Parkview
Total
Activities -
Willow
Office
Enterprise
Internal
Golf Course
Complex
Funds
Service Funds
$ 796.787
$ 3,368.027
$ 4,164,814
$ 9,998,376
24,717
82,412
107,129
-
32,795
2,036
34,831
-
250.566
-
250,566
-
1,185,970
-
1,185,970
-
2,290,835
3,452,475
5,743,310
9,998,376
52,736,087
-
52,736,087
421,272
12,134,433
7,694,269
19,828,702
1,037,083
64,870,520
7,694,269
72,564,789
1,458,355
67,161,355
11,146,744
78,308,099
11,456,731
562,173
34,677
596,850
52,250
171,687
-
171,687
-
-
28,150
28,150
-
143,479
186
143,665
-
500,000
-
500,000
-
-
-
-
600,000
537,242
-
537,242
-
1,914,581
63,013
1,977,594
652,250
-
-
-
2,073,142
897,804
-
897,804
-
897,804
-
897,804
2,073,142
2,812,385
63,013
2,875,398
2,725,392
63,435,474
7,694,269
71,129,743
1,458,355
913,496
3,389.462
4,302,958
7,272,984
$ 64,348,970 $ 11,083,731 $ 75,432,701 $ 8,731,339
-29-
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENSES AND CI IANGES IN FIJND NET POSITION
PROPRIETARY FUNDS
For the year ended June 30, 2015
OPERATING REVENUES:
Fees and rentals
Merchandise sales
Miscellaneous
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Maintenance and operations
Cost of merchandise
General and administrative
Depreciation and amortization
TOTAL OPERATING EXPENSES
OPERATING INCOME. (LOSS)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
Interest expense
Gain on sale of capital assets
TOTAL NONOPERATING
REVENUES (EXPENSES)
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS
AND TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION - BEGINNING OF YEAR
NET POSITION - END OF YEAR
Exhibit H
Business -type Activities -
Enterprise Funds
Major
Other
Fund
Fund
Governmental
Desert
Parkview
Total
Activities -
Willow
Office
Enterprise
Internal
Golf Course
Complex
Funds
Service Funds
$ 6,657,600
$ 1,296,630
$ 7,954,230
$ -
1,223,520
-
1,223,520
-
13,556
9,412
22,968
2,800
7,894,676
1,306,042
9,200,718
2,800
4,320,719
327,922
4,648,641
9,065
509,938
-
509,938
-
2,187,309
182,861
2,370,170
63,704
1,286,337
423,513
1,709,850
247,720
8,304,303
934,296
9,238,599
320,489
(409,627)
371,746
(37,881)
(317,689)
96
11,678
11,774
21,108
(128,964)
-
(I 28,9(A)
-
47,938
-
47,938
11,720
(80,930)
11,678
(69,252)
32,828
(490,557)
383,424
(107,133)
(284,861)
47,768
-
47,768
8,160
-
-
-
1,276,000
-
(437,500)
(437,500)
-
(442,789)
(54,076)
(496,865)
999,299
64,791,759
11,137,807
75,929,566
7,732,040
$ 64,348,970
$ 11,083,731
$ 75,432,701
$ 8,731,339
See accompanying notes to basic financial statements.
-30-
Exhibit I
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIF:1'ARY FUNDS
For the year ended June 30, 2015
Enterprise Funds
Major
Other
Fund
Fund
Govemmental
Desert
Parkview
Total
Activities -
Willow
Office
Enterprise
Internal
Golf Course
Complex
Funds
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers
$ 7,940,248
S 1,272,519
S 9,212,767
$ 2,800
Payments to employees
-
-
-
(82,402)
Payments to suppliers
(6,997,804)
(507,532)
(7,505,336)
(9,065)
NET CASH PROVIDED BY
OPERATING ACTIVITIES
942,444
764,987
1,707,431
(88,667)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Interest paid on loan
(20,000)
(20,000)
Cash received from other funds
3,976,000
Cash paid to other funds
(437,500)
(437,500)
-
NET CASH PROVIDED (USED) BY
NONCAPITAL AND RELATED
FINANCING ACTIVITIES
(20,000)
(437,500)
(457,500)
3,976,000
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Purchases of capital assets
(16,956)
(151,448)
(168,404)
(469,318)
Proceeds on sale of assets
24,300
Principal paid on leases
(566,299)
(566,299)
-
Interest paid on leases
(108,964)
(108,964)
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES
(692,219)
(151,448)
(843,667)
(445,018)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
96
11,678
11,774
21,108
NET INCREASE. IN CASH
AND CASH FQUIVALENTS
230,321
187,717
418,038
3,463,423
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
566,466
3,180,310
3,746,776
6,534,953
CASH AND CASH EQUIVALENTS -
END OF YEAR
S 796,787
$ 3,368,027
$ 4,164,814
$ 9,998,376
See accompanying notes to basic financial statements.
(Continued)
-31-
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization
Changes in assets and liabilities:
(Increase) decrease in receivables, net
(Increase) decrease in prepaid costs
(Increase) decrease in inventories
(Increase) decrease in due
from component unit
Increase (decrease)in accounts payable
and accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease)in unearned revenues
Increase(decrease)in compensated absences
NET CASH PROVIDED BY
OPERATING ACTIVITIES
Exhibit I
CITY OF PALM DESERT
STATEMENT OF CAST 1 FLOWS
PROPRII I'ARY FUNDS
(CONTINUED)
For the year ended June 30, 2015
Business -type Activities -
Enterprise Funds
Major Other
Fund Fund
Governmental
Desert Parkview
Total Activities -
Willow Office
Enterprise Internal
Golf Course Complex
Funds Service Funds
$ (409,627) $ 371,746 $ (37,881) $ (317,689)
1,286,337
423,513
1,709,850 247,720
13,485
(34,455)
(20,970) -
(3,284)
(777)
(4,061)
(29,762)
-
(29,762)
46,305
-
46,305
53,208
4,028
57,236
-
746
746
(14,218)
186
(14,032)
-
-
- (18,698)
S 942,444 $
764,987 $
1,707,431 $ (88,667)
NONCASHITEMS:
Noncash items include $47,768 (net value) of capital assets contributed by the City of Palm Desert to Desert Willow Golf Course.
See accompanying notes to basic financial statements.
-32-
CITY OF PALM DESERT
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
June 30, 2015
ASSETS:
Cash and investments
Receivables (net of allowance for uncollectibles):
Accounts
Assessments
Interest
Due from other governments
Prepaid costs
Restricted assets:
Cash with fiscal agent
Capital assets, not being depreciated
Capital assets, being depreciated
TOTAL, ASSETS
DEFERRED OUTFLOWS OF RESOURCES:
Deferred amount on refunding
LIABILITIES:
Accounts payable
Interest payable
Advances from City of Palm Desert
Advances from I lousing Authority
Deposits
Bonds payable - due within one year
Bonds payable - due in more than one year
TOTAL LIABILITIES
NET POSITION:
Held in trust
See accompanying notes to basic financial statements
Exhibit J
Successor
Agency to the
Palm Desert
Redevelopment
Agency
Private -Purpose
Agency
Trust Fund
Funds
$ 25,686,175
$ 13,396,211
35,000
-
-
84,632,764
87.056
3,053
-
564,466
86,750
4,208
99,706,796
7,363,290
41,769,297
-
1,711,729
-
169,081,803
$ 105,963,992
758,002
2,843,156 $ -
3,799,992 -
22.655,000
17.821,288 -
- 105,963,992
18,055,000
287,470,363 -
352,644,799 $ 105,963,992
$ (182,804,994)
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CITY OF PALM DESERT
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
For the year ended June 30, 2015
ADDITIONS:
Taxes
Investment income
Other
Sale of property
TOTAL ADDITIONS
DEDUCTIONS:
Housing and development
Interest
Depreciation
Sale of property
TOTAL DEDUCTIONS
CHANGE, IN NET POSITION
NET POSITION - BEGINNING OF YEAR
NET POSITION - END OF YEAR
See accompanying notes to basic financial statements
Exhibit K
Successor
Agency to the
Palm Desert
Redevelopment
Agency
Private -Purpose
Trust Fund
$ 36,282,417
308,985
214,575
734,821
37,540,798
15,524,414
15,010,898
276,150
9,591,524
40,402,986
(2,862,188)
(179,942,806)
$ (182,804,994)
-34-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2015
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 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 partly 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.
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CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
a. Description of the Reporting Entity (Continued):
Blended Component Units (Continued)
The Palm Desert Financing Authority (Financing Authority) was formed on January 26, 1989.
The purpose of the Financing Authority is to issue debt and loan the proceeds to the City and
Agency. The Financing Authority's capital related transactions are reported in the governmental
fund financial statements in the capital projects funds, and the collection of assessments and
payments of debt service is recorded in the fiduciary funds.
The City Council of Palm Desert is the governing body for the Housing Authority and
Financing Authority.
Separate financial statements are not issued for the Housing Authority and Financing
Authority.
Discretely Presented Component Unit
The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on
February 25, 1997. The purpose of the Corporation is to lease, operate and manage a restaurant
and bar in the Desert Willow Golf Course in Palm Desert, California. The Board of Directors of
the Corporation appoints an executive director to administer operations.
The Corporation is in a separate column to emphasize that it is legally separate from the City
and is financially accountable to the City. The two -member board governing the Corporation is
appointed by the City Council, the City has authority to approve the Corporation's budget, and
the City must approve any debt issued.
Complete financial statements of the Component Unit can be obtained from the City's
administrative offices.
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CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL, STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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.
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.
-37-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
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.
-38-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
The funds of the financial reporting entity are described below (Continued):
Proprietary Fund Types
Enterprise Funds - The Enterprise Funds account for operations that are financed and operated
in a manner similar to private business enterprises, where the intent of the City Council is that
the costs (expenses including depreciation) of providing goods and services to the general
public on a continuing basis be financed or recovered primarily through user charges.
The Primary Government's Enterprise funds consist of the Parkview Office Complex and the
Desert Willow Golf Course. Desert Willow Golf Course is operated by a management
company. The Component Unit's 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.
Agrencv 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.
-39-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
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.
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 Low Moderate Housing Asset Special Revenue 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 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 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.
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.
-40-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL, STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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.
Measurement Focus
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:
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.
-41-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting
In the government -wide Statement of Net Position and Statement of Activities, both
governmental and business -like activities are presented using the accrual basis of accounting.
Under the accrual basis of accounting, revenues are recognized when earned and expenses are
recorded when the liability is incurred or economic asset used. Revenues, expenses, gains,
losses, assets and liabilities resulting from exchange and exchange -like transactions are
recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual
basis of accounting. Under this modified accrual basis of accounting, revenues are recognized
when "measurable and available". Measurable means knowing or being able to reasonably
estimate the amount. Available means collectible within .the current period or soon enough
thereafter to pay current liabilities.
Revenues that are susceptible to accrual include property taxes and special assessments that are
levied for and due for the fiscal year and collected within 60 days after year-end. Licenses,
permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as
governmental fund type revenues when received in cash because they are not generally
measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes,
are recognized in the accounting period in which they became both measurable and available to
pay liabilities of the current period. Grants and similar items are recognized as soon as all
eligibility requirements imposed by the provider have been met. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However debt service
expenditures as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Interfund activity has been eliminated from the general government function for the
government -wide financial statements except for charges between the government's Desert
Willow Golf Course and Parkview Office Complex funds and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues
for the various functions considered.
The accrual basis of accounting is followed by the proprietary fund and private purpose trust
fund. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recorded when the liability is incurred or economic assets are used.
-42-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting (Continued)
Proprietary funds distinguish operating revenues and expenses from nonoperating 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 nonoperating
revenues and expenses.
d. New Accounting Pronouncements:
Current Year Standards
In fiscal year 2014-2015, the City implemented Governmental Accounting Standards Board
(GASB) Statement No. 68, "Accounting and Financial Reporting for Pensions, an Amendment
of* GASB Statement No. 27" and GASB Statement No. 71, "Pension Transition for
Contributions Made Subsequent to the Measurement Date, an Amendment of GASB .Statement
No. 68 ". These Statements establish standards for measuring and recognizing liabilities,
deferred outflows of resources, deferred inflows of resources, and expenses. For defined
benefit pension plans, these Statements identify the methods and assumptions that should be
used to project benefit payments, discount projected benefit payments to their actuarial present
value, and attribute that present value to periods of employee service. Accounting changes
adopted to conform to the provisions of these statements should be applied retroactively. The
result of the implementation of these standards decreased the governmental activities net
position at July 1, 2014 by $39,728,900.
GASB Statement No. 69 - "Government Combinations and Disposals of Government
Operations" was required to be implemented in the current fiscal year and did not impact the
City.
-43-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. New Accounting Pronouncements (Continued):
Pending Accounting Standards
GASB has issued the following statements which may impact the City's financial reporting
requirements in the future:
• GASB 72 - "Fair Value Measurement and Application", effective for periods beginning
after June 15, 2015.
• GASB 73 - "Accounting and Financial Reportingfor Pensions and Related Assets That Are
Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of
GASB Statements 67 and 68 ", effective for periods beginning after June 15, 2015 - except
for those provisions that address employers and governmental nonemployer contributing
entities for pensions that are not within the scope of Statement 68, which are effective for
periods beginning after June 15, 2016.
GASB 74 - "Financial Reporting for Postemployment Benefit Plans Other Than Pension
Plans", effective for periods beginning after June 15, 2016.
• GASB 75 - "Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions ", effective for periods beginning after June 15, 2017.
GASB 76 - "The Hierarchy of Generally Accepted Accounting Principles for State and
Local Governments ", effective for periods beginning after June 15, 2015.
e. 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 two items that qualify for reporting in this
category: (1) the deferred amount on refunding and (2) the deferred outflow related to
pensions. This amount is equal to employer contributions made after the measurement date of
the net pension liability.
-44-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL. STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
e. Deferred Outflows/Inflows of Resources (Continued):
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 oJ' 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 two items that qualify for reporting in this category.
The first item, which arises under a modified accrual basis of accounting is, unavailable
revenue, which is reported only in the governmental fund balance sheet. The governmental
funds report unavailable revenues from four sources: investment income, grants, notes
receivables collections and capital reimbursements from developers. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become
available. The second item is a deferred inflow related to pensions resulting from the
difference in projected and actual earnings on investments of the pension plan fiduciary net
position. This amount is amortized over five years.
f. 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.
g. 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 estimated fair market value at
the date of donation.
-45-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
g. Capital Assets and Depreciation (Continued):
The City has reported general infrastructure assets acquired in prior and current years.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Property, plant and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Buildings 40 years
Improvements other than buildings 20 years
Machinery and equipment 5 to 8 years
Infrastructure 20 to 75 years
h. Appropriations Limit:
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative),
the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and
if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the
State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or
other refund arrangements. For the fiscal year ended June 30, 2015, proceeds of taxes did not
exceed appropriations.
i. Investments:
Investments are stated at fair value (quoted market price or the best available estimate thereof).
j. 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.
-46-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
k. 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 $2,673,142, are
reported in the Compensation Benefits Internal Service Fund.
1. Property Held for Resale:
The land held for resale is recorded in the Low Moderate Housing Asset Special Revenue Fund
as property held for resale at the lower of acquisition cost or net realizable value. At
June 30, 2015, the cost of the property held for resale for various housing properties in Palm
Desert totaled $287,181.
m. Inventories, Prepaid Costs and Deposits:
Inventory in the amount of $250,566 and $45,860 for the Desert Willow Golf Course
Enterprise Fund (Primary Government) 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 $31,469 in the General
Fund and Other Governmental Funds are stated at cost. Inventory is 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 $15,007,273 with another
governmental agency to pay for future construction of a City project.
n. Property Tax Calendar:
Property taxes are assessed and collected each fiscal year according to the following property
tax calendar:
Lien date: January 1
Levy date: July 1 to June 30
Due date: November 1 - 1 st Installment
March I - 2nd Installment
Delinquent date: December 10 - 1 st Installment
April 10 - 2nd Installment
-47-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
n. Property Tax Calendar (Continued):
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.
o. 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.
p. Pensions:
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
District's California Public Employees' Retirement System (CaIPERS) plans (Plans) and
additions to/deductions from the Plans' fiduciary net position have been determined on the
same basis as they are reported by CaIPERS. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value.
q. Use of Estimates:
The financial statements are prepared in accordance with accounting principles generally
accepted in the United States of America and, accordingly, include amounts that are based on
management's best estimates and judgments. The financial statements include estimates for
the value of the capital assets (infrastructure), depreciation expense, the fair value of
investments, the amounts reported for the 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.
-48-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
2. CASH AND INVESTMENTS:
Cash and Investments
As of June 30, 2015, cash and investments were reported in the accompanying financial statements
as follows:
Governmental activities $ 187,057,131
Business -type activities 4,164,814
Component unit 72,236
Fiduciary funds 146,152,472
Total Cash and Investments $ 337.446.653
Cash and investments at June 30, 2015 consisted of the following:
Primary Government
Demand accounts
$ 3,584,231
Petty cash
21,850
Escrow deposit
342,603
Investments
187,273,261
Total Cash and Investments - Primary Government
$ 191.221.945
Component Unit
Demand accounts $ 72.236
Fiduciary Funds
Demand accounts $ 1,443,245
Pooled with primary government 13,396,211
Investments 131,313,016
Total Cash and Investments - Fiduciary Funds $ 146.152.472
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, 2015, the carrying amount of the deposits was $18,495,925, and the bank balance was
$18,514,100. The $18,175 difference represents outstanding checks, deposits in transit and other
reconciling items.
-49-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
2. CASH AND INVESTMENTS (CONTINUED):
Deposits (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 savings
association, a federal association or by a state -licensed branch of a foreign bank
• Time Certificates of Deposit issued by qualified public depositories.
• Repurchase Agreements sold by authorized brokers
• Medium -term Notes issued by corporations organized and operating in the United States, or by
depository institutions operating in the United States and licensed by the United States or by
any state
• Money Market Mutual Funds that are registered with the SEC under the Investment Act
of 1940
• State of California Local Agency Investment Fund (LAIF) that is managed by the State
Treasurer's Office
• Structured Notes in the form of callable securities or "STRIPS" issued by the United States
Treasury, Federal Agencies or government -sponsored enterprises
• Local Government Investment Pools
-50-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
2. CASH AND INVESTMENTS (CONTINUED):
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.
Credit Risk
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
Investment Type
California Local Agency
Investment Fund
California Asset
Management Program
Riverside County Treasurer's
Pooled Investment Fund
Commercial Paper
Ileld by Fiscal Agent.
Money market mutual funds
California Local Agency
Investment Fund
Total
Minimum
Total as of Legal
June 30, 2015 Rating AAA
$ 76,555,724 N/A $ - $
4,842,327 N/A 4,842327
77.882.380 N/A
6,479,990 Al/PI -
60Q621 AAA/Aaa 600,621
AI/PI Aaa Unrated
- $ - $ 76,555,724
- 77,882,380
6,479,980 -
20,912,229 N/A - - - 20,912,229
$ 187,273,261 $ 5,442,948 $ 6,479,980 $ 77,882,380 $ 97,467,953
-51-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
2. CASH AND INVESTMENTS (CONTINUED):
Credit Risk (Continued)
Fiduciary Funds
Minimum
Total as of
Legal
Investment Type
June 30, 2015
Rating
AAA
Aaa Unrated
California local Agency
Investment Fund
$ 529,401
N/A
$ - $
$ 529,401
California Asset
Management Program
766,772
N/A
766,772
-
Riverside County Treasurer's
Pooled Investment Fund
21,133,757
N/A
-
21,133,757 -
Investment to City Bonds -
Successor Agency RDA
1,813,000
N/A
- 1,813,000
Held by Fiscal Agent:
Money market mutual funds -
Successor Agency RDA
25,520,641
AAA/Aaa
25,520,64 t
-
Cal ifomia Local Agency
Investment Fund -
Successor Agency RDA
74,186,155
N/A
-
74,186,155
Money market mutual funds -
Assessment District
3,204,825
AAA/Aaa
3,204,825
-
California Local Agency
Investment Fund -
Assessment District
4,158,465
N/A
-
- 4,158,465
Total
$ 131,313,016
$ 29,492,238 $
21,133,757 $ 80,687,021
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for the
investments is the risk that, in the event of the failure of the counterparty to a transaction, a
government will not be able to recover the value of investment or collateral securities that are in
the possession of an outside party.
As of June 30, 2015, none of the City's deposits or investments were exposed to custodial credit
risk.
-52-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
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, 2015, in accordance with
GASB Statement no. 40, if the City has invested more than 5% 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 5% 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%
Banker's Acceptances
40%
30%
Commercial Paper
25%
10%
Negotiable Certificates of Deposit
30%
N/A
Time Certificates of Deposit
15%
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
50%
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.
-53-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
2. CASH AND INVESTMENTS (CONTINUED):
Interest Rate Risk (Continued)
As of June 30, 2015, the City had the following investments and maturities:
Primary Government
Less Than 6 months - I year - Over
Fair
Investment Type 6 months 1 year 3 years 3 years
Value
California Local Agency
Investment Fund $ 76,555,724 $ - $ - $ -
$ 76,555,724
California Asset
Management Program 4,842,327 -
4,842,327
Riverside County Treasurer's
Pooled Investment Fund 77,882,380 -
- 77,882,380
Commercial Paper - 6,479,980 -
6,479,980
Ile Id by Fiscal Agent:
Money market mutual funds 600,621 - -
600,621
California Local Agency
Investment Fund 20,912,229 -
- 20,912,229
Total $ 180,793,281 $ 6,479,980 $ - $
- $ 187,273,261
Fiduciary Funds
Less Than 6 months -
Investment Type
6 months 1 year
Calit'ornia Local Agency
Investment Fund
$ 529.401 $
California Asset
Management Program
766.772
Riverside County Treasurer's
Pooled Investment Fund
21,133,757
Investment in City Bonds
116,000
Held by Fiscal Agent:
Money market mutual funds -
Successor Agency RDA
25,520,641
LAIF - Successor Agency RDA
74,186,155
Money market mutual funds -
Assessment District
3,204,825
LAIF - Assessment District
4,158,465
Total
$ 129,616,016 $
1 year - Over Fair
3 years 3 years Value
$ $ $ 529,401
766,772
21,133,757
241,000 1,456,000 1,813,000
25,520,641
74,186,155
3,204,825
- - 4,158,465
$ 241,000 $ 1,456,000 $ 131,313,016
-54-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
2. CASH AND INVESTMENTS (CONTINUED):
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated
by California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The fair value of the City's investment in this pool is reported in the accompanying
financial statements at amounts based upon the City's pro-rata share of the fair value provided by
LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance
available for withdrawal is based on the accounting records maintained by LAIF, which are
recorded on an amortized cost basis.
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.
-55-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
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 was used to finance the construction of the utility undergrounding and pay
the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. Bond maturities began
September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from
3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and
reports a receivable in the general fund that corresponds to the outstanding principal on the bonds.
As of June 30, 2015, the receivable balance was $1,489,000.
The Low Moderate Housing Asset Special Revenue Fund has $11,042 in home improvement loans
and an additional notes receivable of $1,250. Payments of interest and principal are due monthly on
these loans.
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. At June 30, 2015 the total receivable from the Highlands
Deferral Loan Program is $39,806.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been
transferred to the Low Moderate Housing Asset Special Revenue Fund as the successor housing
entity. The Low Moderate Housing Asset Special Revenue Fund has a loan receivable for the
construction of a multi -family affordable housing development dated June 14, 2001, with a balance
of $6,787,629 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 % 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 Community Development Block Grant Special Revenue Fund has $13,663 in a home
improvement loan.
-56-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
On August 28, 2008 the City Council approved through resolution the Energy Independence
Program (EIP), which is supported by Assembly Bill A1381 1. 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 AB81 1 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, 2015, 60 loans have been repaid. The loans are payable in two annual
installments for a period of 5 years to 20 years at an interest rate of 7% annually. On June 30, 2015
the outstanding loans receivable through the EIP Program was $4,681,166.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been
transferred to the Palm Desert Housing Authority as the successor housing entity. The Housing
Authority has loans for several other projects, all of which are secured by a deed of trust. A
valuation allowance equal to the loan balance has been recognized since there is a significant
possibility that these loans will either become uncollectible or forgiven by the Housing Authority
at a future date if all the terms of the loans have been met.
Detailed information for these loans is as follows:
Loan
Balance Interest
Maturity
Special Provisions
Project Name
Outstanding Rate
Date Secured By
of Loan
Self -Help
$ 429.000 7.25%
30 years Deed of Trust
Loan balance and interest due
Housing Program
or 2024
upon maturity, unpaid balance
of loan or interest will bear an
interest rate of 12%.
I lome Improvement 380,076 N/A N/A Deed of Trust Loan is payable upon change
Loans or 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.
-57-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
Detailed information for these loans (Continued):
Loan
Balance
Interest
Maturity
Special Provisions
Project Name
Outstanding
Rate
Date
Secured By
of Loan
Portola Palms
$ 110,715
3.00%
30 years
Deed of Trust
loan balance and interest will
Mobilehome Park
from date
be forgiven at maturity if
of loan
debtor does not breach the
terms and conditions of either
the unit regulatory agreement
or note.
Desert Rose
2.463,807
3.00%
30 - 45 years*
Deed of Trust
Loan will be forgiven at
from date
maturity unless the debtor is in
of loan
violation of the unit regulatory
agreement or the deed of trust.
Falcon Crest
5,795,172
3.00%
30-45
Deed of Trust
Loan is payable upon change
or transfer of title, refinancing
years
or upon the death of the
from date
borrower.
of loan
Acquisition,
190,510
3.00%
30 -45
Deed of Trust
Loan is payable upon change
Rehabilitation,
years
Assignment
or transfer of title, refinancing
Resale
from date
of Rent
or upon the death of the
of loan
borrower. Restrictive
covenants are placed against
property to maintain
affordability for up to 45 years
in exchange for favorable loan
terms.
* All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive
covenant.
-58-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
Due To/From Other Funds
The composition of interfund balances as of June 30, 2015, was as follows:
Due To
General Fund
Low Moderate Housing Asset
Special Revenue Fund
Other Governmental Funds
Due From Amount
Other Governmental Funds $ 2,500,000
General Fund 1,847,200
Other Governmental Funds 2,683,800
Desert Willow Golf Course 500,000
$ 7.531.000
The General Fund advanced $2,500,000 to the Energy Independence Special Revenue Fund to
payoff the bonds used to fund energy efficiency.
The Low Moderate Housing Asset Special Revenue 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
Major Funds:
General Fund
Desert Willow Golf Course
Due From
Component
Unit
$ 285,000
1,185,970
11.470.970
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.
-59-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Interfund Transfers
The composition of interfund transfers as of June 30, 2015, was as follows:
Transfers In
Prop A
Fire Tax
Special
Other
Internal
General
Revenue
Governmental
Service
Transfers Out:
Fund
Fund
Funds
Total
Fund
Totals
General Fund
$ -
$ 2,000,000
$ 1,220,373
$ 3,220,373
$ 1,276,000
$ 4,496,373
Housing Authority
Special Revenue
Fund
-
-
733,014
733,014
-
733,014
Other
Governmental
Funds
1,741,972
-
-
1,741,972
-
1,741,972
Office Complex
Parkview
Enterprise Fund
437,500
-
-
437,500
-
437,500
Totals
$ 2,179,472
$ 2,000,000
$ 1,953,387
$ 6,132,859
$ 1,276,000
$ 7,408,859
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
5. CAPITAL ASSETS:
A summary of changes in capital
assets at June 30, 2015, was as follows:
Primary Government - Governmental
Activities
Balance at
Balance at
July 1, 2014 Transfers
Additions
Deletions
June 30, 2015
Capital assets, not
being depreciated:
Land
$ 78,442,529 $ -
$ 808.478
$
$ 79,251,006
Right-of-way
120.795,676 252,442
-
121,048,118
Construction -in -progress
7,899.676 223.541
17,605,680
-
25,728.897
Internal service fund -
Construction -in -progress
342.604 -
78.668
421,272
Total capital assets, not
being depreciated
207.480,484 475,983
18,492,826
-
226,449.293
Capital assets, being
depreciated:
Buildings
128,550.481 -
10.420
(1,253.835)
127.307,066
Improvements other
than buildings
54,283,467 -
315,350
-
54,598,817
Machinery and equipment
9,586.158 -
473.968
(2.979)
10,057,147
Infrastructure
238,159,886 -
296.140
238,456,026
Equipment - Internal
service fund
5.067,896 -
358,827
(283,963)
5,142,750
Total capital assets,
being depreciated
435.647,878 -
1,454,705
(1,540,777)
435,561,806
Less accumulated
depreciation for:
Buildings
(51.188,094) -
(3,083.759)
182,849
(54,089.004)
Improvements other
than buildings
(25,612,436) -
(2,653,015)
-
(29,265.451)
Machinery and equipment
(8,502,289) -
(407,080)
1,967
(8.907.402)
Infrastructure
(87.449,480) -
(5,471,401)
-
(92.920.881)
Equipment - Internal
service fund
(4,129.331) -
(247,720)
271,384
(4.105,667)
Total accumulated
depreciation
(176.881,630) -
(11,862.975)
456,200
(188.288,405)
Capital assets, being
depreciated, net
258,766.248 -
(10.408,270)
(1.084,577)
247,273,401
Capital assets, net -
Governmental Activities
$ 466,246,732 $ 475,983
$ 8,084.556
$ (1,084,577)
$ 473,722,694
M
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL, STATEMENTS
(CONTINUED)
June 30, 2015
5. CAPITAL ASSETS (CONTINUED):
A summary of changes in capital assets at June 30, 2015, was as follows
Primary Government - Business -type Activities
Balance at
July 1, 2014 Additions Deletions
Capital assets, not
being depreciated:
Land $ 52,736,087 $ - $
Total capital assets,
not being depreciated 52,736,087
Balance at
Reclassification June 30, 2015
$ - $ 52,736,087
52,736,087
Capital assets, being
being depreciated:
Buildings and
improvements
27,018,200
163,637
27,181,837
Machinery and equipment
6,310,275
927,402
(740,979)
- 6,496,698
Total capital assets,
being depreciated
33,328,475
1,091,039
(740,979)
- 33,678,535
Less accumulated
depreciation for:
Buildings and
improvements
(8,125,296)
(947,326)
-
(9,072,622)
Machinery and equipment
(4,707,167)
(762,524)
692,480
- (4,777,211)
Total accumulated
depreciation
(12,832,463)
(1,709,850)
692,480
- (13,849,833)
Capital assets, being
depreciated, net
20,496,012
(618,811)
(48,499)
- 19,828,702
Capital assets, net -
Business -type Activities
$ 73,232,099 $
(618,811) $
(48,499) $
- $ 72,564,789
-62-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
5. CAPITAL ASSETS (CONTINUED):
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 1,904,951
Housing and redevelopment 1,237,673
Public safety 117,413
Public works 5,997,039
Parks, recreation and culture 2,358,179
Depreciation expenses for internal service funds is charged
to various functions based on usage of capital assets 247,720
Total depreciation expense - governmental activities $ 1 j862.97.5
Business -type Activities:
Desert Willow Golf Course
Parkview Office complex
$ 1,286,337
423,513
Total depreciation expense - business -type activities $ 1.709.850
-63-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
6. LONG-TERM LIABILITIES:
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2015:
Primary Government - Governmental Activities
Balance
Balance Due Within
July 1, 2014 Additions Reductions
June 30, 2015 One Year
Special assessment debt
with government
commitment $ 1,526,000 $ $ (37,000)
$ 1,489,000 $ 38,000
Limited obligation
improvement bonds 2,065,000 (252,000)
1,813,000 116,000
Lease revenue bonds 4,655,000 (4,655,000)
- -
Claims and judgments
payable 1,021,332 (721,869)
299,463 -
Compensated absences
payable 2,691,840 1,525,542 (1,544,240)
2,673,142 600,000
Total $ 11,959,172 $ 1,525,542 $ (7,210,109)
$ 6,274,605 $ 754,000
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.
Primary Government -Business-type Activities:
Balance
Balance Due Within
July I, 2014 Additions Reductions
June 30, 2015 One Year
Capital leases $ 1,222,915 $ 976,366 $ (764,235)
$ 1,435,046 $ 537,242
-64-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
6. LONG-TERM LIABILITIES (CONTINUED):
Special Assessment Debt with Government Commitment
Highlands Undereroundin*p- Assessment District No. 04-01, Limited Obligation Improvement
Bonds, Series 2006
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay
the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential obligation to
provide additional funds to pay the debt service, therefore these bonds are reported as special
assessment debt with government commitment. Bond maturities begin September 2, 2007, and
continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The
City of Palm Desert is the only bondholder on record of the bonds and the City does not own the
constructed assets.
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
2016
$ 38,000
$ 74,871
$ 112,871
2017
41,000
72,994
113,994
2018
42,000
70,991
112,991
2019
44,000
68,895
112,895
2020
47,000
66,653
113,653
2021 - 2025
272,000
294,459
566,459
2026 - 2030
347,000
215,746
562,746
2031 - 2035
446,000
114,176
560,176
2036 - 2037
212,000
11,073
223,073
$ 1,489,000 $ 989,858 $ 2,478,858
-65-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
6. LONG-TERM LIABILITIES (CONTINUED):
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,
Princippal
Interest
Total
2016
$ 71,000
$ 31,515
$ 102,515
2017
75,000
29,325
104,325
2018
71,000
27,135
98,135
2019
71,000
25,005
96,005
2020
74,000
22,830
96,830
2021 - 2025
353,000
82,755
435,755
2026 - 2030
371,000
28,395
399,395
$ 1,086,000
$ 246,960
$ 1,332,960
IT6
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
6. LONG-TERM LIABILITIES (CONTINUED):
Limited Obligation Bonds (Continued)
Limited Obligation Improvement Bonds Series 2009B (Taxable)
On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds
Series 2009B (Taxable). The proceeds of the Bonds were used to fund the City's Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond
purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to
par value.
The Series 2009B (Taxable) bonds consist of $1,136,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B
(Taxable) are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 45,000
$ 21,135
$ 66,135
2017
47,000
19,755
66,755
2018
48,000
18,330
66,330
2019
48,000
16,890
64,890
2020
49,000
15,435
64,435
2021 - 2025
253,000
55,035
308,035
2026 - 2030
237,000
18,195
255,195
$ 727,000 $
164,775 $ 891,775
-67-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
6. LONG-TERM LIABILITIES (CONTINUED):
Lease Revenue Bonds
EIP Series 2009
On August 31, 2009, the Palm Desert Financing Authority issued $5,225,000 Energy Independence
Program Variable Rate Demand lease Revenue Bonds, Series 2009 (Federally Taxable). The
proceeds of the bonds were used to partially pay off the General Fund EIP loan of $1,196,000
originally loaned to start up the Energy Loan Program, and the remaining bond funds were used to
fund the City's Energy Independence Program.
The Lease Revenue Bonds Series 2009 were called in September 2014.
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, 2015, total estimated workers' compensation and
general liability claims payable, including a provision for incurred but not reported claims, were
$140,749 and $158,714, respectively, for a total claims and judgments payable of $299,463.
Changes in claims liabilities during the past two years are as follows:
Claims payable - Beginning of Year
Incurred claims (including IBNR)
and changes in estimates
Claims payments
Claims payable - End of Year
June 30, 2014 June 30, 2015
$ 746,792 $ 1,021,332
669,366 (341,659)
(394,826) (380,210)
$ 1,021,332 $ 299,463
-68-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
6. LONG-TERM LIABILITIES (CONTINUED):
Business -type Activities - Capital Leases
Obligations under capital leases are as follows:
De Lane Lande 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.
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.
Wells Fargo Financial Leasing_, Inc. - The present value of the
minimum lease payment on the Toro golf course maintenance
equipment was capitalized at $1,547,296 using an interest rate of
2.63%. Lease is payable in 60 monthly installments of $27,489
beginning February, 28, 2012.
Wells Fargo Financial Leasing, Inc. - The present value of the
minimum lease payment on the TruTurf roller and Lely spreader were
capitalized at $41,440 using an interest rate of 2.63%. Lease is
payable in 60 monthly installments of $736 beginning
March 28, 2012.
Wells Fargo Financial Leasing Inc. - The present value of the
minimum lease payment on the JC13 grapple bucket was capitalized at
$10,481 using an interest rate of 2.63%. Lease is payable in
60 monthly installments of $186 beginning April 28, 2012.
Present value of net minimum lease payments
Less: current portion
$ 795,193
110,628
511,017
14,390
3,818
1,435,046
(537,242)
$ 897.804
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
6. LONG-TERM LIABILITIES (CONTINUED):
Business -type Activities - Capital Leases (Continued)
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, 2015:
Minimum
Year Ending
Lease
June 30,
Payments
2016
$ 627,489
2017
486,541
2018
244,289
2019
243,600
1,601,919
Less: amounts representing interest
(166,873)
Present value of net minimum lease
payments
$ 1,435,046
The assets acquired through capital lease are as follows:
Machinery and equipment $ 3,026,023
Less: accumulated depreciation (1.783,058)
$ 1,242,965
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 IRC Section 457, in January 1997, the City established a trust in which all assets held by
Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement Corporation (ICMA) were
placed. The City does not have fiduciary responsibility for the plan assets held by NRS and ICMA.
The assets, all property and rights purchased with such amounts and all income attributable to such
amounts are held in trust for the exclusive benefit of the participants and the beneficiaries. The
assets are no longer the property of the City, and as such, are no longer subject to the claims of the
City's general creditors. As a result, the assets in the amount of $12,387,234 held by NRS and
ICMA of the 457 Plan are not reflected in the City's financial statements.
-70-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
8. PENSION PLAN:
a. General Information about the Pension Plans:
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City's
Miscellaneous Plans, agent multiple -employer defined benefit pension plans administered by
the California Public Employees' Retirement System (CalPERS), which acts as a common
investment and administrative agent for its participating member employers. Benefit provisions
under the Plans are established by State statute and City resolution. CalPERS issues publicly
available reports that include a full description of the pension plans regarding benefit
provisions, assumptions and membership information that can be found on the CalPERS
website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments
and death benefits to plan members, who must be public employees and beneficiaries. Benefits
are based on years of credited service, equal to one year of full time employment. Members
with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.
All members are eligible for non -duty disability benefits after 10 years of service. The death
benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the
Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied
as specified by the Public Employees' Retirement Law.
-71 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
8. PENSION PLAN (CONTINUED):
a. General Information about the Pension Plans (Continued):
Benefits Provided (Continued)
The Plans' provisions and benefits in effect at June 30, 2015, are summarized as follows:
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Employees Covered
Miscellaneous
Prior to
On or After
January 1, 2013
January 1, 2013
2.7%@55
2%@62
5 years of service
5 years of service
monthly for life
monthly for life
50-67
52-67
2.0% to 2.7%
1.0% to 2.5%
8%
7%
26.548%
26.548%
At June 30, 2015, the following employees were covered by the benefit terms for all Plans:
Inactive employees or beneficiaries
currently receiving benefits 136
Inactive employees entitled to but
not yet receiving benefits 84
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
CalPERS. The actuarially determined rate is the estimated amount necessary to finance the
costs of benefits earned by employees during the year, with an additional amount to finance
any unfunded accrued liability. The City is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees.
-72-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
8. PENSION PLAN (CONTINUED):
b. Net Pension Liability:
The City's net pension liability for each Plan is measured as the total pension liability, less the
pension plan's fiduciary net position. The net pension liability of each of the Plans is measured
as of June 30, 2014, using an annual actuarial valuation as of June 30, 2013 rolled forward to
June 30, 2014 using standard update procedures. A summary of principal assumptions and
methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the
following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
June 30, 2013
June 30, 2014
Entry -Age Normal
Cost Method
Discount Rate 7.50%
Inflation 2.75%
Payroll Growth 3.00%
Projected Salary Increase 3.3% - 14.2% (1)
Investment Rate of Return 7.5% (2)
Mortality (3)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation
(3) The probabilities 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.
The underlying mortality assumptions and all other actuarial assumptions used in the
June 30, 2013 valuation were based on the results of a January 2014 actuarial experience study
for the period 1997 to 2011. Further details of the Experience Study can found on the CalPERS
website.
-73-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
8. PENSION PLAN (CONTINUED):
b. Net Pension Liability (Continued):
Discount Rate
The discount rate used to measure the total pension liability was 7.50% for each Plan. To
determine whether the municipal bond rate should be used in the calculation of a discount rate
for each plan, CalPERS 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, none of the
tested plans run out of assets. Therefore, the current 7.50% discount rate is adequate and the
use of the municipal bond rate calculation is not necessary. The long term expected discount
rate of 7.50% will be applied to all plans in the Public Employees Retirement Fund (PERF).
The stress test results are presented in a detailed report that can be obtained from the CalPERS
website.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined
without reduction for pension plan administrative expense. The 7.50% investment return
assumption used in this accounting valuation is net of administrative expenses. Administrative
expenses are assumed to be 15 basis points. An investment return excluding administrative
expenses would have been 7.65%. Using this lower discount rate has resulted in a slightly
higher Total Pension Liability and Net Pension Liability. CalPERS checked the materiality
threshold for the difference in calculation and did not find it to be a material difference.
CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability
Management (ALM) review cycle that is scheduled to be completed in February 2018. Any
changes to the discount rate will require Board action and proper stakeholder outreach. For
these reasons, CalPERS expects to continue using a discount rate net of administrative
expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal year. CalPERS
will continue to check the materiality of the difference in calculation until such time a change
in methodology occurs.
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.
-74-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
8. PENSION PLAN (CONTINUED):
b. Net Pension Liability (Continued):
Discount Rate (Continued)
In determining the long-term expected rate of return, Ca1PERS took into account both
short-term and long-term market return expectations as well as the expected pension fund cash
flows. 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 (1 1-60 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. These rates of return are net of administrative expenses.
New
Real Return
Strategic
Years
Asset Class
Allocation
I - 10 (a)
Global Equity
47.00%
5.25%
Global Fixed Income
19.00%
0.99%
Inflation Sensitive
6.00%
0.45%
Private Equity
12.00%
6.83%
Real Estate
1 1.00%
4.50%
Infrastructure and Forestland
3.00%
4.50%
Liquidity
2.00%
-0.55%
Total
100.00%
(a) An expected inflation of 2.5% used for this period
(b) An expected inflation of 3.0% used for this period
Real Return
Years
I I + (b)
5.71 %
2.43%
3.36%
6.95%
5.13%
5.09%
-1.05%
-75-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
8. PENSION PLAN (CONTINUED):
c. Changes in the Net Pension Liability:
The changes in the net pension liability for the year ended June 30, 2015, with a measurement
date of June 30 2014 for the Miscellaneous Plan are as follows:
Increase (Decrease)
Total
Plan
Net Pension
Pension
Fiduciary
Liability
Liability
Net Position
(Asset)
Balance at June 30, 2014 $ 107,900,900
$ 64,851,550
$ 43,049,350
Changes in the Year:
Service cost
2,156,598
-
2,156,598
Interest on the total pension liability
7,991,591
-
7,991,591
Differences between actual and
expected experience
-
-
-
Changes in assumptions
-
-
-
Changes in benefit terms
-
-
-
Contribution - employer
-
3,320,450
(3,320,450)
Contribution - employee
-
995,504
(995,504)
Net investment income
-
11,290,314
(11,290,314)
Benefit payments, including refunds
of employee contributions
(4,849,320)
(4,849,320)
Net Changes
5,298,869
10,756,948
(5,458,079)
Balance at June 30, 2015
$ 113,199,769
$ 75,608,498
$ 37,591,271
-76-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
8. PENSION PLAN (CONTINUED):
c. Changes in the Net Pension Liability (Continued):
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for each Plan, calculated using the
discount rate for each 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 6.50%
Net Pension Liability $ 53,054,419
Current Discount Rate I'�WAV 4ok 7.50%
Net Pension Liability $ 37,591,271
1 % Increase 8.50%
Net Pension Liability $ 24,799,827
Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the
separately issued CalPERS financial reports.
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions:
For the year ended June 30, 2015, the City recognized pension expense of $3,022,51 1. At
June 30, 2015, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Pension contributions subsequent to measurement date
Differences between actual and expected experience
Change in assumptions
Net differences between projected and actual
earnings on plan investments
Total
Deferred
Outflows
of Resources
$ 3,393,041
3,393,041
Deferred
Inflows
of Resources
(5,160,141)
$ (5,160,141)
-77-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
8. PENSION PLAN (CONTINUED):
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued):
$3,393,041 reported as deferred outflows of resources related to contributions subsequent to the
measurement datee*ill be recognized as a reduction of the net pension liability in the year
ending June 30, 2016. Other amounts reported as deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Year
Ending
June 30,
2016
2017
2018
2019
2020
Thereafter
e. Payable to the Pension Plan:
Amount
$ (1,290,035)
(1,290,035)
(1,290,035)
(1,290,036)
At June 30, 2015, the City had no outstanding amount of contributions to the pension plan
required for the year ended June 30, 2015.
9. FUND BALANCES:
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, 2015, were as follows:
-78-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL. STATEMENTS
(CONTINUED)
June 30, 2015
9. FUND BALANCES (CONTINUED):
I
n„
\1,xlnata•
r Nler
(3-1
1'rupA
Homuy;
Hammµ
Go moral
`1luals
I wid
i ua• I.,
A—,
SA. —A
nwMnn
Iola)
No F—,lahk:
A,hanca-+
S 7Xil WR) S
S -
S -
S
S
S%it Wxl
Imrnton
26.169
2c,.36x
1 norm nrrJ rx�m+
nadn
1,529 WY,
-
1.528.W,
Rcryrd .a„1,
923.287
149
921615
3...I Non,pend.bk
10,312.261
-
-
-
-
Vw
10,312,609
Rnlricted for
Capnal Ix", —
A >,mrnl ,11+1rwt,
impm,enera+
-
2152Y x,99
21.52X,N`Y)
IkM xnlce
IfM),I I I
11W I I
..o omc hommµ
I'ngJ,— wxl prog ram+
-
-
41,714,71r/
2.251,7e9
11971.5(s
Apan ,
-
9%390,
-
N Nix 055
I alel L„ur;anw• h,mmµ
-
41714,799
8,918055
2.256,769
52.8119621
I'uMx: Ixdnw•,
Parka focdnnx
-
11(l1%92
1.101%92
1,281"y"',,
I.2x6 H,6
C'hklcarc f—claw,
-
I t121 A65
11121 1815
I alal lwl,hc lard-,
-
-
1.111,623
1.411,621
WMrc calcla
hur l,wiln K.
9'9R51.
919,x56
Iur upnata,m
I,Rrx+91x
-
-
I%01,919
Pnhu pragrom, a cgwgncra
-
-
7p26
7 (126
1a1a1 puhk al",
-
I MOIR
-
-
-
9x5,N82
2.742
Rpacul pn,µr r"
Cannnuiul, pn,),xl,
-
19,9"
19.1m
krr„Iay1 111L2)Mls
-
3.1171 W,
1,171,593
smr.1 dr—, d,-".v
-
-
49.476
4N;l76
Au gw,lu, pro)ects
76,291
76.291
1 arad,ra" am Wl aw
2 459,a)2
2.451/ 092
Anc—inw—
-
-
-
1,121,MM1
1,1219fa1
1olal>p-1 pn,)uam,
-
-
`,S9N.716
7,57N, 1X
Sir- raklui pxr—
('arn,—,—A
I lN, 61
15 %lN,i(A.
Dr.,.-W pn,j-,
-
-
-
I, Q-1!
1 924 I L
l rail's: 5lgrel, prapcl+
-
-
2.17.111)
'247,110
I nlal +Iraq rcktN pu0a,—
-
-
11779,948
1,219.R02
INpl9.&}]
Total R,,lricted
-
1.806.938
41,714,799
I4.779,998
8,838,055
39,121.422
106.261.212
Commuted In'
Aylulw crnlax
-
2.11.1.121
2,114, 121
C'apxal a—t rcpkcaxna•M
11,875.4M
11,815.499
I raxµ, I„nri pi..piom
, 941.21x
,.1 27R
Total Committed
-
-
-
-
11,875,JBN
5,077„399
It, q,997
.,
A„igned to:
C'apnal
('n, cnl Ma6, IxoRtity
npnop".1
-
,+.91i(].f i
') 910,7l1
proprn, anl,w,nx,n
-
-
420,391
a2r1,1x,
Commiwn commgcrw-,
455p1N1
455 ax)
rwa. Ia: J,lw•,
Cx, Ix1Ltc+
W455,
411/7,5R5
4.62. L11
Parka fttl
1.1x.x, 157
1 �xJt,15'
(ialfla--lh—
-
2.02n12
2,9921112
I Mal p4hhc-dnwa
llr SW
-
10.947,751
11,112,11,
Spcc,al pn,µram,
I than
-
(s,7,255
•,(,],: ii
(,crwxal pLn
37,1[xl
t7 "Y.)Pro(
«ni.-11 un cc,
13 N76
11%76
Iolnl spacml pr�8uan1,
71.1'.6
667,255
7,S1 it
Rlrrn rdatal pwproa>
Rl— ra>4,f a'mµ
990,511
XV),S41
Ihawge pm 1,
-
2, 125,2('l
2,125,26.1
!,all.'.8.6 pro)—
101.129
101.12N
lolal+tre'rl rrlawd p,upoxa
%7a7 S41
-
-
-
-
2,226,392
7.Irr,935
Total A-gned
1.771.278
-
-
-
-
24,172.531
25.943,809
Lna„igned
67.727.130
-
-
-
-
-
67.727.130
I alals
S 79,910.U,9 S
I%1)(039
S 4I7147T)
S 14,779.999
S 20313.543
S W371,1ra1
5227.197,(A7
-79-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
9. FUND BALANCES (CONTINUED):
Fund Balances (Continued)
The fund balances reported on the fund statements now consist of the following categories:
Nonsvendable - 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.
-80-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
10. RISK MANAGEMENT:
a. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement:
The City of Palm Desert is a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 118 California public entities and is organized
under a joint powers agreement pursuant to California Government Code §6500 et seq. The
purpose of the Authority is to arrange and administer programs for the pooling of self -insured
losses, to purchase excess insurance or reinsurance, and to arrange for group purchased
insurance for property and other lines of coverage. The Authority began covering claims of its
members in 1978. Each member government has an elected official as its representative on the
Board of Directors which operates through a nine -member Executive Committee.
b. Self -Insurance Programs of the Authority:
Each member pays an annual contribution to cover estimated losses for the coverage period. A
retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and
prior. Retrospective adjustments are scheduled to continue indefinitely on coverage years
20.12-13 and prior, until all claims incurred during those coverage years are closed, on a pool -
wide basis. This subsequent cost re -allocation among members, based on actual claim
development, can result in adjustments of either refunds or additional deposits required.
Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment.
The total funding requirement for self-insurance programs is estimated using actuarial models
and pre -funded through the annual contribution. Costs are allocated to individual agencies
based on exposure (payroll) and experience (claims) relative to other members of the
risk -sharing pool. Additional information regarding the cost allocation methodology is
provided below.
Liability
In the liability program, claims are pooled separately between police and general government
exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A
variable credibility factor is determined for each member, which establishes the weight applied to
payroll and the weight applied to losses within the formula. (2) The first layer of losses includes
incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool's
total incurred costs within the first layer. (3) The second layer of losses includes incurred costs
from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool's total
incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are
distributed based on the outcome of cost allocation within the first and second loss layers.
-81-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
10. RISK MANAGEMENT (CONTINUED):
b. Self -Insurance Programs of the Authority (Continued):
Liability (Continued)
For 2014-15, 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) 50% of the $2.5 million annual
aggregate deductible in the $3 million x/s $2 million layer, (b) 50% quota share of the $3
million x/s $2 million layer, and (c) $3 million annual aggregate deductible in the $5 million
x/s $10 million layer.
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.
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 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 2014-15 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.
-82-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL, STATEMENTS
(CONTINUED)
June 30, 2015
10. RISK MANAGEMENT (CONTINUED):
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 $223,995,097. There is a
$5,000 deductible per occurrence except for non -emergency vehicle insurance, which has a
$1,000 deductible. Premiums for the coverage are paid annually and are not subject to
retrospective adjustments.
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. Premiums
are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance
The City of 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
City 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 arranged by the Authority.
d. Adequacy of Protection:
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were no significant
reductions in pooled or insured liability coverage in the fiscal year 2014-15.
-83-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
11. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES:
Unearned Revenues
Major Governmental Funds
General Fund has received $16,976 in unearned revenues from the Successor Agency that are
deemed unearned until expenditures are incurred related to park improvements and $2,503 in
advance rent payments.
Measure A Special Revenue Fund has $15,007,273 in funds received from the Successor Agency
that are deemed unearned until expenditures are incurred related to construction of interchange.
Housing Authoritv Special Revenue Fund has other amounts reported as unearned revenues
include $16,047 for prepaid rents.
Other Governmental Funds
Special Revenue Funds
$4,963 of grant funds are deemed unearned until expenditures are incurred in the Recycling Fund.
$38,057 of grant funds are deemed unearned until expenditures are incurred in the Public Safety
Police Grants Fund.
$14,533 represents the unused portions of prepaid aquatic fees in the Aquatic Center Fund.
Capital Proiects Fund
Capital Projects Reserve fund has $71,596 of unearned revenue represents deposits for street
improvements and public facilities, as the funds have not been spent as of June 30, 2015.
Business -type Activities
The balance of $143,665 represents the unused portions of prepaid golf fees, value of unredeemed
gift certificates and unearned rent.
Component Unit
The balance of $91,430 represents the unused portions of prepaid banquets.
-84-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
11. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES (CONTINUED):
Deferred Inflows of Resources
Major Governmental Funds
General Fund
On March 13, 1997, the former Redevelopment Agency (Agency) purchased land from the City for
the purpose of developing a second golf course financed by a note in the amount of $2,055,000.
The note has no specific due date. Recognition of the revenue from the sale has been reported as
deferred inflows of resources until it becomes available.
On March 13, 1997, the City entered into an agreement with subsequent amendments on
June 4, 1997, May 18, 2004, and May 12, 2009, with the Palm Desert Recreational Facilities
Corporation (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, 2015, 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 $291,996 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, 2015, $25,535 in interest has been accrued.
Recognition of the interest revenue has been reported as unavailable until it becomes due.
Interest in the amount of $57,065 on the advance from the General Fund to the Energy
Independence Special Revenue Fund is reported as unavailable revenue.
Interest in the amount of $3,322 on investment purchased is reported as unavailable revenue.
Low and Moderate Housine Asset Special Revenue Fund
Uncollected interest of $33,938 due from the Palm Desert Development Company has been
reported as unavailable.
Measure A Special Revenue Fund
Unavailable revenue of $4,576,270 is related to expenditures incurred through June 30, 2015 which
are to be reimbursed from other governments, but have not been received within the availability
period.
-85-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
11. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES (CONTINUED):
Deferred Inflows of Resources (Continued)
Other Governmental Funds
Special Revenue Funds
Interest accrued on loans of $184,262 on loans receivable through the City's EIP Program is
reported as unavailable (see Note 3).
The Community Development Block Grant Special Revenue Fund has $13,663 in a home
improvement loan as unavailable.
Debt Service Fund
Assessment receivables in the amount of $1,347,184 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.
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 CalPERS 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 CalPERS website at www.calpers.ca.gov.
Emplovees Hired Prior to January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or
after age 50 with at least 10 consecutive years of service with the City. Eligible employees
must be covered under the CalPERS Health Plan at the time of retirement and elect to
participate in the stipend program within 30 days of retirement.
-86-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
12. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (Continued):
Emplovees Ilired Prior to January I, 2008 (Continued)
"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
Percentap-e
10 years of service
50%
11 years of service
55%
12 years of service
60%
13 years of service
65%
14 years of service
70%
15 or more years of service
75%
Emplovees Hired On or After January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or
after age 50 with at least 15 consecutive years of service with the City. Eligible employees
must be covered under the CalPERS Health Plan at the time of retirement and elect to
participate in the stipend program within 30 days of retirement. The 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:
Age
15
16
17
50
0%
5%
10%
51
10%
15%
20%
52
20%
25%
30%
53
30%
35%
40%
54
40%
45%
50%
55+
50%
50%
50%
Consecutive Years of Service at Retirement
18
19
20
21
22 -
15%
20%
25%
30%
35%
25%
30%
35%
40%
45%
35%
40%
45%
50%
50%
45%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
23
24
25+
40%
45%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
Employees with at least 5 years of service, not meeting the eligibility requirements for the
stipend program, who retire simultaneously from the City and CalPERS are eligible to continue
medical coverage through the CalPERS Health Plan. The City is required to pay the CalPERS
minimum employer contribution ($1 19 in 2014 and $122 in 2015) for these employees.
-87-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
12. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (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 I %
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, 2015, the City
contributed $358,776 to the plan. The purpose of these contributions is to cover the required
City contribution rate of 2.96% of annual covered payroll (annual payroll of active employees
covered by the plan) and to prefund benefits. 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)
$ 342,882
Interest on Net OPEB obligation (asset)
(596,472)
Adjustment to ARC
567,342
Annual OPEB cost
313,752
Contribution made
(358,776)
Increase in Net OPEB obligation (asset)
(45,024)
Net OPEB obligation (asset) at June 30, 2014
(8,448,611)
Net OPEB obligation (asset) at June 30, 2015
$ (8,493,635)
The contribution rate of 2.96% is based on the ARC of $342,882, 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 thirty year period.
-88-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
12. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED):
c. Annual OPEB Cost and Net OPEB Obligation (Asset):
For fiscal year 2015, the City's annual OPEB cost (expense) was $313,752. Information on the
annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation
(Asset) is available for June 30, 2015 and the two previous fiscal years, are presented below:
Actual Percentage of
Fiscal Annual Contribution Annual Net OPEB
Year
OPEB
(Net of
OPEB Cost
Obligation
Ended
Cost
Adiustments)
Contributed
(Asset)
6/30/2013
$ 380,816 $
85,221
22%
$ (7,968,971)
6/30/2014
296,678
776,318
262%
(8,448,611)
6/30/2015
313,752
358,776
114%
(8,493,635)
d. Funded Status and Funding Progress:
As of June 30, 2013, the most recent actuarial valuation date, the plan was 86% funded. The
actuarial accrued liability for benefits was $1 1.23 million, and the actuarial value of assets was
$9.71 million, resulting in an unfunded actuarial accrued liability (UAAL) of $1.52 million.
The covered payroll (annual payroll of active employees covered by the plan) was
$9.67 million, and the ratio of the UAAL to the covered payroll was 16%.
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.
-89-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
12. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED):
e. Actuarial Methods and Assumptions (Continued):
In the June 30, 2013 actuarial valuation, the entry age normal actuarial cost method was used.
The actuarial assumptions included a 7.06% investment rate of return (net of administrative
expenses) and an annual healthcare cost trend rate of 7.5% in 2015, reduced by decrements to
an ultimate rate of 5% in 2020. A 3.0% 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 amortization period at
June 30, 2015, was 24 years.
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, 2014 Additions
Reductions
June 30, 2015
One Year
2003 Assessment
Revenue Bonds
$ 2,245,000 $
$ (230,000)
$ 2,015,000
$ 155,000
AD 98-1 Limited Obligation
Refunding Bonds
375,000 -
(85,000)
290,000
65,000
CFD 2005-1 Special Tax
Bonds Series 2006A
54,645,000 -
(1,285,000)
53,360,000
1,345,000
AD 2004-2 Limited Obligation
Improvement Bonds
24,390,000
(615,000)
23,775,000
590,000
2008 Special Tax
Refunding Bonds
4,730,000
(1,000,000)
3,730,000
1,030,000
$ 86,385,000 $ -
$ (3,215,000)
$ 83,170,000
$ 3,185,000
The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special
Improvement Acts and the 1982 Mello -Roos Community Facilities Act (1982 Bonds). The City has
no liability to 1911 Act bondholders until assessments have been collected from the property
owner. Such liability is then recorded in the Agency Funds. Therefore, the 1911 Bonds are not
recorded as liabilities in the accompanying financial statements.
The City also has no liability to the 1915 Act bondholders or the bondholders of bonds issued
under the 1982 Mello -Roos Community Facilities Act until assessments are collected on the tax
rolls. However, the City may take certain actions to assume secondary liability for all or part of
1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are consummated.
Special assessment bonds payable, as described below, and are not recorded as long-term
liabilities, as these obligations do not constitute a debt or obligation of the City.
.M
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
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
2016
$ 155,000
$ 101,286
$ 256,286
2017
160,000
93,489
253,489
2018
170,000
85,154
255,154
2019
175,000
76,356
251,356
2020
175,000
67,344
242,344
2021 - 2025
625,000
226,350
851,350
2026 - 2029
555,000
61,947
616,947
$ 2,015,000
$ 711,926
$ 2,726,926
As of June 30, 2015, 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 $ 510,000
Assessment District 0 1 - 1 1,515,000
$ 2,025,000
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
13. SPECIAL ASSESSMENT DEBT (CONTINUED):
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.
Debt service requirements to maturity are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 65,000
$ 12,786
$ 77,786
2017
70,000
9,536
79,536
2018
75,000
5,955
80,955
2019
80,000
2,040
82,040
$ 290,000
$ 30,317
$ 320,317
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.
-92-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
13. SPECIAL ASSESSMENT DEBT (CONTINUED):
Community Facilities District No. 2005-1 (Continued)
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. Interest
rates vary from 3.875% to 5.20% with interest payable semi-annually on March l and September
1, with principal maturing annually on September 1.
Debt service requirements to maturity are as follows:
Year Ending
June 30,
Principal
2016
$ 1,345,000
2017
1,410,000
2018
1,480,000
2019
1,550,000
2020
1,625,000
2021 - 2025
9,425,000
2026 - 2030
12,175,000
2031 - 2035
15,780,000
2036 - 2038
8,570,000
$ 53,360,000
Interest
Total
$ 2,762,784
$ 4,107,784
2,697,633
4,107,633
2,627,662
4,107,662
2,553,186
4,103,186
2,474,935
4,099,935
11,034,108
20,459,108
8,235,476
20,410,476
4,526,414
20,306,414
547,575
9,1 17,575
$ 37,459,773
$ 90,819,773
- 93 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
13. SPECIAL ASSESSMENT DEBT (CONTINUED):
Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds,
Series 2007
In March 2007, the City of Palm Desert issued $29,430,000 Limited Obligation Improvement
Bonds. The proceeds of the Bonds will be used to finance certain infrastructure improvements
within the City's Section 29 Assessment District (No. 2004-02). The debt service on the bonds is
to be paid by assessments secured on the property tax rolls of those properties benefiting from the
improvements. The bonds consist of Serial Bonds in the amount of $6,870,000 with interest
ranging from 4.00% to 4.70% payable semiannually on March 2 and September 2. Bond maturities
begin September 2, 2009, and continue annually through 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
2016
$ 590,000
$ 1,172,360
$ 1,762,360
2017
610,000
1,145,655
1,755,655
2018
640,000
1,1 17,210
1,757,210
2019
670,000
1,086,913
1,756,913
2020
700,000
1,054,885
1,754,885
2021 - 2025
4,030,000
4,726,533
8,756,533
2026 - 2030
5,135,000
3,584,968
8,719,968
2031 - 2035
6,585,000
2,100,563
8,685,563
2036 - 2038
4,815,000
376,508
5,191,508
$ 23,775,000
$ 16,365,595
$ 40,140,595
-94-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
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,
2016
2017
2018
2019
2020
2021
Bond Reserve Requirements
Principal
Interest
Total
$ 1,030,000
$ 118,983
$ 1,148,983
1,070,000
81,698
1,151,698
1,105,000
41,719
1,146,719
170,000
17,600
187,600
175,000
10,700
185,700
180,000
3,600
183,600
$ 3,730,000
$ 274,300
$ 4,004,300
At June 30, 2015, the fund balance reserve requirements and actual reserve balances were as
follows:
Assessment District 98-1
2003 Financing Authority Revenue Bonds
CFD 2005-1 Special Tax Bonds
Assessment District 29
2008 Special Tax Refunding Bonds
Requirement
$ 29,000
243,476
4,107,784
1,762,360
1,093,500
Actual
$ 84,080
353,338
4,15 8,178
1,826,930
1,726,046
-95-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
14. CONDUIT DEBT OBLIGATIONS:
2003 Series A - $22,310,000 Lease Revenue Bonds
In December 2003, the Palm Desert Financing Authority (Authority) issued $22,310,000 in Lease
Revenue Bonds. The proceeds of the Bonds were used to: a) finance the construction of a County
animal shelter and related facilities located in the unincorporated area of Thousand Palms,
California; b) finance construction of certain County medical clinic facilities located in Mecca,
California; c) refund the Palm Desert Financing Authority Lease Revenue Bonds Series 1996;
d) acquire a debt service reserve insurance policy; e) fund capitalized interest on the bonds; and
f) pay costs of issuance of the bonds. The Authority will lease sites relating to each project from
the County of Riverside (County) pursuant to a Site Lease dated as of December 1, 2003, and will
lease back to the County the Sites and the Facilities pursuant to a Facilities Lease dated
December 1, 2003. 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. As of June 30, 2015, the outstanding amount was
$15,885,000.
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. As of June 30, 2015,
the outstanding amount was $46,260,000.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
15 OTHER DISCLOSURES:
The Palm Desert Recreational Facilities Corporation has a deficit of $1,495,986, 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 $182,804,994, 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.
16. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS:
Construction Commitments
Primary Government
Current
Prior
Year
Year
Remaining
Project
Spent
Spent
Commitment
Parks and recreation
$ 180,711
$ 166,466
$ 259,931
Low income housing
121,683
-
8,644,118
Street resurfacing
-
-
459,192
Street improvements
-
65,022
119,117
Freeway on -ramp improvements
6,858,911
1,180,200
515,889
Desert Willow capital improvements
21,534
-
54,497
Public safety building improvements
980
3,920
2,100
Recycle projects
12,300
-
72,700
Community development planning
416,797
-
461,659
Governmental Software Implementation
-
-
27,500
Alessandro West improvement project
33,721
-
129,259
Portola @ Fred Waring Free Right "Turn
181,091
38,384
602,896
111 Right Turn to Fred Waring Drive
1,362
-
454,927
City Hall building improvements
-
-
117,800
Property sales / transfers
54,446
-
252,906
7,883,536
1,453,992
12,174,491
Miscellaneous non construction
126,815
-
248,586
$ 8,010,351
$ 1,453,992
$ 12,423,077
-97-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
16. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS (CONTINUED):
Construction Commitments (Continued)
Fiduciary Funds
Project
Parks and recreation $
Low income housing
Desert Willow capital improvements
Property sales / transfers
Miscellaneous non construction
Current Prior
Year Year Remaining
Spent Spent Commitment
444
29,090
- 667,246
- - 2,497
- 699,277
450 4,050 312,745
450 $ 4,050 $ 1,012,022
17. DISSOLUTION OF CALIFORNIA REDEVELOPMENTAGENCIES:AND WIND -DOWN BY
SUCCESSOR AGENCIES:
The California Legislature adopted AB Xl 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 XI 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, after the audited period of these financial statements. Parts 1.8 and 1.85, as
amended and supplemented after AB X 1 26, is referred to below as the "Dissolution Act."
Pursuant to the Dissolution Act, the city which formed a redevelopment agency will serve as the
successor agency 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 Successor Agency to the
Palm Desert Redevelopment Agency.
-98-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
17. DISSOLUTION OF CALIFORNIA REDEVELOPMENT AGENCIES AND WIND -DOWN BY
SUCCESSOR AGENCIES (CONTINUED):
On February 9, 2012, the City Council of the City, acting as the governing body of the Successor
Agency, established rules and regulations for the operations of the Successor Agency to assume
these successor functions pursuant to Resolution No. SA-RDA001. Although the Board of
Directors of the Successor Agency 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 Successor
Agency is a separate public entity from the City, that the two entities shall not merge, and that the
liabilities of the former redevelopment agency will not be transferred to the City nor will the assets
of the former redevelopment agency become assets of the City.
The Dissolution Act requires the establishment of an oversight board for each successor agency.
Under the Dissolution Act, certain successor agency actions must first be approved by the
oversight board, and the oversight board is also required to direct the successor agency to take
certain actions in connection with the wind down of the affairs of the Dissolved RDA. The role of
each successor agency is to administer the wind down of each 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 Successor Housing Agency 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 Agency to the
Palm Desert Housing Authority. As required by the Dissolution Act, the Housing Authority, as the
Housing Successor Agency, submitted to the State Department of Finance ("DOF") of a list of
housing assets to be transferred by the Successor Agency to the Housing Successor Agency. On
August 31, 2012, the DOF issued a letter indicating that the DOF did not have any object to such
housing asset list.
After the date of dissolution, the housing assets, obligations, and activities of the Dissolved RDA
were transferred and are reported in the Housing Authority Special Revenue Fund beginning in
fiscal year 201 1-2012. 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
17. DISSOLUTION OF CALIFORNIA REDEVELOPMENTAGENCIES:AND WIND -DOWN BY
SUCCESSOR AGENCIES (CONTINUED):
The CAC is charged with establishing a Redevelopment Property Tax Trust Fund (the "RPTTF")
for each successor agency and depositing into the RPTTF for each six-month period the amount of
property taxes that would have been redevelopment property tax increment had the Dissolved RDA
not been dissolved.
The Successor Agency 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 Successor Agency from the RPTTF fund
based on the ROPS amount approved by the DOF.
As part of the dissolution process, AB1484 required the Successor Agency 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 to compute the funds (cash) which were not needed by the
Successor Agency to be retained to pay for existing enforceable obligations. These funds were to
be remitted to the CAC after the DOF completed its review of the due diligence reviews. The
Successor Agency 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
Successor Agency 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 former redevelopment agency 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 re-establish the City loans as enforceable obligations of the
Successor Agency. DOF subsequently approved this action on April 10, 2015. When the
repayments begin, 20% of each repayment of the loan agreement amounts will be allocated to the
Low Moderate Housing Asset Special Revenue Fund. At June 30, 2015, the long-term advances
totaled $22,655,000. 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% has been reported as due
to other funds in the respective funds totaling $4,531,000. See further discussion under Note 18.
The State Controller of the State of California has been 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 successor agency.
The State Controller's completed its review on March 14, 2013 and did not identify any
unallowable transfers of assets that occurred during the audit between the former RDA, the City
and or other public agencies.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
17. DISSOLUTION OF CALIFORNIA REDEVELOPMENTAGENCIES:AND WIND -DOWN BY
SUCCESSOR AGENCIES (CONTINUED):
The Successor Agency's use and disposition of all properties held (Long Range Property
Management Plan(LRPMP)), was approved by the California Department of Finance on
June 2, 2014. The LRPMP allowed the Successor Agency to transfer property used for
government purposes with a cost basis of $6,390,263 to the City.
18. SUCCESSOR AGENCY DISCLOSURES:
The assets and liabilities of the dissolved Redevelopment Agency were transferred to the Successor
Agency to the Palm Desert Redevelopment Agency on February 1, 2012 as a result of the
dissolution of the former Redevelopment Agency. The Successor Agency 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, 2015, was as follows:
Advances From Advances To
General Fund Successor Agency
Other Governmental Funds
Successor Agency
Amount
$ 9,236,000
13.419,000
Subtotal 22,655,000
Low Moderate Housing Asset
Special Revenue Fund Successor Agency 17,821,288
Total S 40.476.288
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Advances To/From the City of Palm Desert (Continued)
The advances from the General Fund, Capital Projects Reserve Fund and Other Governmental
Funds were made to the Successor Agency (former Redevelopment Agency) for capital
improvements. The advances from the Housing Authority Special Revenue Fund to the Successor
Agency (former Redevelopment Agency) were made to cover the SERAF payment.
The Dissolution Act specifies the actions to be taken and the method of repayment by the
Successor Agency (former Redevelopment Agency) to the various funds of the City for such loans.
Upon application and approval by the successor agency and approval by the oversight board, loan
agreements entered into by former redevelopment agency 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 Low and Moderate Income Housing Asset Fund (Housing
Authority). Both SERAF and City Loans were approved by both the Oversight Board and DOF as
enforceable obligations of the Successor Agency. The initial repayments of the SERAF loan has
been included and approved with the 15-16A ROPS period.
- 102 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Capital Assets
Balance at
Balance at
July 1, 2014
transfers
Additions
Deletions
June 30, 2015
Capital assets, not
being depreciated:
Land
$ 51.390,191
$ -
$
$ (9,621,894) $
41,768.297
Construction -in -progress
492,343
(968.326)
475,983
-
-
Total capital assets, not
being depreciated
51.882.534
(968,326)
475,983
(9,621,894)
41.768,297
Capital assets, being
depreciated:
Buildings
949,776
-
-
949,776
Improvements other
than buildings
5,048,117
-
-
-
5,048,117
Total capital assets,
being depreciated
5,997,893
-
-
5.997,893
Less accumulated
depreciation for:
Buildings
(189.595)
-
(23,744)
-
(213,339)
Improvements other
than buildings
(3,820,419)
-
(252,406)
-
(4.072.825)
Total accumulated
depreciation
(4,010,014)
-
(276,150)
-
(4.286,164)
Capital assets, being
depreciated, net
1,987,879
-
(276,150)
-
1,711,729
Capital assets, net -
Governmental Activities
$ 53,870,413
$ (968,326)
$ 199,833
$ (9,621,894) $
43,480,026
- 103 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2015, was as follows:
Project Area No. 1
2002A TARRBs, $22,070,000
2003 TARBs, $19,000,000
2004A TARRBs, $24,945,000
2006 A & B TARBs, $62,320,000
2007A TARRBs, $32,600,000
Project Area No. 2
2002A TARRBs, $17,310,000
2003 TARBs, $15,745,000
2006 A-D TARBs, $67,618,213
Project Area No. 3
2003 TARBs, $4,745,000
2006 A-C TABs, $15,059,526
Project Area No. 4
1998 TARBs, $11,020,000
2001 TARBs, $15,695,000
2006A TARBs, $19,243,089
Combined Low and
Moderate Housing
2002 TARBs, $12,100,000
2007 TARBs, $86,155,000
Subtotal
Add: Unamortized
bond premium
Total
Balance
Additions/
Repayments/
Balance
Due Within
July 1, 2014
Accretion
Reductions
June 30, 2015
One Year
$ 22,070,000
$ -
$ -
$ 22,070,000
$ -
12,660,000
-
-
12,660,000
-
15,285,000
-
(1,235,000)
14,050,000
1,280,000
43,760,000
-
(2,905,000)
40,855,000
3,075,000
13,870,000
-
(3,230,000)
10,640,000
3,390,000
9,550,000
-
(870,000)
8,680,000
910,000
15,745,000
-
-
15,745,000
-
56,068,864
950,656
(2,275,000)
54,744,520
1,320,000
3,570,000
-
(120,000)
3,450,000
125,000
15,718,800
271,798
(330,000)
15,660,598
370,000
7,805,000
-
(360,000)
7,445,000
375,000
12,540,000
-
(375,000)
12,165,000
390,000
18,499,653
359,570
(760,000)
18,099,223
690,000
9,130,000
-
(330,000)
8,800,000
345,000
61,445,000
-
ff 5505000
55,940,000
5,785,000
317,717,317
1,582,024
(18:295:000�
301,004,341
18,055,000
4,996,725
-
(475,703)
4,521,022
-
$322,714,042 $ 1,582,024 $(18,770,703) $305,525,363 $18,055,000
Tax Allocation bonds used for capital improvements are special obligations of the Agency and the
Financing Authority (a component unit of the Agency) and are secured by an irrevocable pledge of tax
revenues and other funds as provided under the Bond Resolution. The bonds and any interest thereon
are not a debt of the City, the State of California or any of its political subdivisions, and neither the
City, the State of California nor any of its political subdivisions 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 Bond Resolution. The Agency purchased insurance from Ambac Assurance Corporation
(Ambac) and MBIA Insurance Corporation (MBIA) for the purpose of enhancing the creditworthiness
of the bonds.
- 104 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL, STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
In light of the uncertainties regarding the TI Cap, the Successor Agency requested to retain moneys
on hand to enable it to pay or redeem Project Area No. 1 bonds, as part of the Other Funds and
Account Due Diligence Review (the "DDR"). The DDR was mandated by AB 1484 to determine
the amount of unencumbered funds that the Successor Agency had on hand to remit to the County
Auditor -Controller for distribution to taxing entities. In the DOF's May 5, 2013 determination
letter regarding the DDR, the DOF denied the Successor Agency's request to retain funds in light
of the TI Cap, stating that it is the DOF's "expectation that ABxI 26/AB 1484 allow enforceable
obligations to be listed on the ROPS and payable out of available RPTTF until such obligation has
been satisfied". Pursuant to SB 107 (adopted in September 2015), Section 34189(a) of the
Dissolution Act has been amended, clarifying that the Successor Agency 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 Palm Desert Redevelopment Agency. 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. The bonds consist of $10,905,000 term bonds at 5.00% due April 1, 2025,
and $11,165,000 term bonds at 5.10% due April 1, 2030. Interest is payable semi-annually on
April 1 and October 1. Mandatory sinking fund redemptions begin April 1, 2024.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30,
2016
2017
2018
2019
2020
2021 - 2025
2026 - 2030
Principal Interest
$ - $ 1,1 14,665
- 1,114,665
- 1,114,665
- 1,1 14,665
- 1,1 14,665
10,905,000
11,165,000
$ 22,070,000
5,334,325
1,764,855
Total
$ 1,114,665
1,1 14,665
1,114,665
1,114,665
1,114,665
16,239,325
12,929,855
$ 12,672,505 $ 34,742,505
- 107 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Proiect 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 Redevelopment Agency. The Agency used the proceeds of the loan to fund various
redevelopment capital projects of the Agency and to finance costs of issuance of the bonds. The
bonds bear interest at 5.0%. They consist of $7,050,000 serial bonds with principal payments due
in 2026 and 2027, and $11,950,000 term bonds due in 2030. Interest will be payable on April 1 and
October I of each year beginning April 1, 2004. Principal payments will be on April 1 of the years
stated above.
The future debt service requirements on the 2003 Series "Tax Allocation Revenue Bonds (Project
Area No. 1) are as follows:
Year Ending
June 30,
Principal Interest
Total
2016
$ - $ 633,000
$ 633,000
2017
- 633,000
633,000
2018
- 633,000
633,000
2019
- 633,000
633,000
2020
- 633,000
633,000
2021 - 2025
- 3,165,000
3,165,000
2026 - 2030
12,660,000 1,960,250
14,620,250
$ 12,660,000 $ 8,290,250 $ 20,950,250
- 108 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
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 Palm Desert Redevelopment Agency 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. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable
semi-annually on April 1 and October 1. Principal payments will be made annually beginning
April 1, 2005.
The future debt service requirements on the 2004 Series A Tax Allocation Revenue Bonds (Project
Area No. 1, as amended) are as follows:
Year Ending
June 30,
Principal
Interest
2016
$ 1,280,000
$ 676,100
2017
1,335,000
618,500
2018
1,460,000
558,425
2019
1,420,000
490,900
2020
1,520,000
419,900
2021 - 2025
7,035,000
1,043,200
$ 14,050,000 $ 3,807,025
Total
$ 1,956,100
1,953,500
2,018,425
1,910,900
1,939,900
8,078,200
$ 17,857,025
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation Revenue Bonds (Project 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 Palm Desert Redevelopment
Agency. The proceeds of the Series A loan will be used 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 loan
will be used 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 Series A
bonds consist of $26,415,000 Serial Bonds with interest rates ranging from 4.70% to 5.25%
payable semiannually on October 1 and April 1. Bond maturities begin April 1, 2017, and continue
annually through 2030. Term bonds in the amount of $11,365,000 carry an interest rate of 5.00%
and mature April 1, 2022. The Series B bonds consist of $13,220,000 Serial Bonds with interest
rates ranging from 5.56% to 5.77% payable semiannually on October 1 and April 1. Bond
maturities began April 1, 2007, and continue annually through 2012. Term bonds in the amount of
$1 1,320,000 carry an interest rate of 5.82% and mature April 1, 2016.
The future debt service requirements on the 2006 Series A and Series B Tax Allocation Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 3,075,000
$ 2,093,410
$ 5,168,410
2017
1,000,000
1,914,445
2,914,445
2018
1,005,000
1,864,445
2,869,445
2019
5,065,000
1,811,683
6,876,683
2020
5,285,000
1,545,770
6,830,770
2021 - 2025
21,015,000
3,542,788
24,557,788
2026 - 2030
4,410,000
348,035
4,758,035
$ 40,855,000
$ 13,120,576
$ 53,975,576
SIM
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation Refundinva 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 Palm Desert Redevelopment Agency. The
proceeds of the 2007 Loan will be used to refinance a portion of the outstanding obligations of the
Redevelopment Agency, fund various redevelopment capital projects within the Palm Desert
Redevelopment Agency Project Area No. 1, as amended, and pay the costs associated with the
issuance of the bonds. The Series A bonds consist of $32,600,000 Serial Bonds with interest rates
ranging from 3.50% to 5.00% payable semiannually on October 1 and April 1. Bond maturities
began April I, 2008, and continue annually through 2018.
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
2016 $ 3,390,000 $ 532,000 $ 3,922,000
2017 3,570,000 362,500 3,932,500
2018 3,680,000 184,000 3,864,000
$ 10,640,000 $ 1,078,500 $ 11,718,500
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
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 Palm Desert Redevelopment Agency 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.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 2) are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 910,000
$ 397,388
$ 1,307,388
2017
955,000
355,403
1,310,403
2018
995,000
309,806
1,304,806
2019
1,050,000
261,238
1,311,238
2020
1,100,000
209,900
1,309,900
2021 - 2023
3,670,000
281,250
3,951,250
$ 8,680,000
$ 1,814,985
$ 10,494,985
- 112-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 2)
On March 26, 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation
Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to fund various redevelopment capital
projects of the Agency 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
2016
$ - $
2017
-
2018
-
2019
-
2020
-
2021 - 2025
1,785,000
2026 - 2030
6,915,000
2021 - 2034
7,045,000
$ 15,745,000 $
Interest
"Total
769,006
$ 769,006
769,006
769,006
769,006
769,006
769,006
769,006
769,006
769,006
3,765,494
5,550,494
2,663,191
9,578,191
726,625
7,771,625
11,000,340
$ 26,745,340
- 113 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Proiect Area No. 2 Tax Allocation Refundinp- 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 Palm Desert
Redevelopment Agency. The proceeds of the Series A, B and C Bonds will be used to make three
loans 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 Agency will use the proceeds of the
Series D Bonds to fund various redevelopment capital projects within or of benefit to the Project
Area, fund a debt service reserve fund and pay cost of issuance of the bonds.
The Series A bonds consist of $16,250,000 Serial Bonds with interest rates ranging from 4.00% to
5.00% payable semiannually on August 1 and February 1. Bond maturities begin August 1, 2007,
and continue annually through 2026. Term bonds in the amount of $8,225,000 carry an interest
rate of 4.90% and mature August 1, 2031. Term bonds in the amount of $16,865,000 carry an
interest rate of 5.125% and mature August 1, 2036. The Series B bonds consist of $1,567,118
Capital Appreciation Bonds with a reoffering yield ranging from 3.85% to 4.08%. Bond maturities
begin April 1, 2007, and continue annually through 2010. The Series C bonds were paid off during
the fiscal year. The Series D bonds consist of $16,936,095 Capital Appreciation Bonds with a
reoffering yield ranging from 4.65% to 6.10%. Bond maturities began August 1, 2007, and
continue annually through 2035. Each year the outstanding balance is increased for the accretion
of interest associated with the bonds. The accreted interest at June 30, 2015 is $6,771,096.
- 114-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Proiect 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 (Continued)
The debt service requirements schedules on the 2006 Series A Tax Allocation Refunding Revenue
Bonds, Series B Tax Allocation Revenue Capital Appreciation Bonds, Series C Revenue Bonds
and Series D Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area
No. 2) do not agree to the liability for those bonds shown in the schedule of changes. These bond
issues include capital appreciation bonds, which are issued at a discount. The carrying amount of
these bonds accretes, or increases each year. The amount shown in the schedule of changes
include the accreted value to date. The future debt service requirements are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 1,108,312
$ 2,059,088
$ 3,167,400
2017
1,208,650
2,104,238
3,312,888
2018
1,299,414
2,172,011
3,471,425
2019
1,362,179
2,238,134
3,600,313
2020
1,436,998
2,309,614
3,746,612
2021 - 2025
9,094,379
12,740,118
21,834,497
2026 - 2030
10,064,082
12,151,667
22,215,749
2031 - 2035
13,176,513
10,172,807
23,349,320
2036 - 2037
9,222,897
2,172,072
11,394,969
$ 47,973,424
$ 48,1 19,749
$ 96,093,173
2003 Series Tax Allocation Revenue Bonds (Proiect 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
Redevelopment Agency. The Agency will use the proceeds of the loan to fund various
redevelopment capital projects within or of benefit to the project area and to finance costs of
issuance of the bonds. The bonds bear interest at rates ranging from 3.000% to 5.125%. Principal
maturities for the serial bonds of $2,475,000 began April 1, 2004, and continue through
October 1, 2031. The term bonds in the amount of $2,270,000 are due in 2033.
- 115 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3) (Continued)
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 3) are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 125,000
$ 168,473
$ 293,473
2017
130,000
163,348
293,348
2018
140,000
157,888
297,888
2019
145,000
151,868
296,868
2020
150,000
145,560
295,560
2021 - 2025
860,000
618,410
1,478,410
2026 - 2030
1,100,000
379,250
1,479,250
2031 - 2033
800,000
83,281
883,281
$ 3,450,000
$ 1,868,078
$ 5,318,078
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 Palm Desert Redevelopment Agency. The proceeds of the Series A and B Bonds
will be used to make two loans to fund various redevelopment capital projects within or of benefit
to its Project Area No. 3, purchase a Reserve Fund surety policy and pay the costs of issuance of
the bonds. The Agency will loan the proceeds of the Series C Bonds 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Proiect 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 (Continued)
The Series A bonds consist of $2,980,000 Serial Bonds with interest rates ranging from 4.00% to
4.75% payable semiannually on April 1 and October 1. Bond maturities begin April 1, 2007, and
continue annually through 2025. Term bonds in the amount of $4,465,000 carry an interest rate of
4.75% and mature April 1, 2036. Term bonds in the amount of $4,470,000 carry an interest rate of
5.00% and mature April 1, 2041. The Series B bonds consist of $383,660 Capital Appreciation
Bonds with a yield ranging from 5.31 % to 5.54%. Bond maturities are April 1, 2020, 2021, 2027
and 2028. The Series C bonds consist of $2,760,866 Capital Appreciation Bonds with a yield
ranging from 4.80% to 6.10%. Bond maturities began April 1, 2009, and continue annually
through 2034. Each year the outstanding balance is increased for the accretion of interest
associated with the bonds. The accreted interest at June 30, 2015 is $1,917,603.
The future debt service requirements on the 2006 Series A Tax Allocation Revenue Bonds,
Series B Tax Allocation Revenue Capital Appreciation Bonds and Series C Subordinate Tax
Allocation Revenue Capital Appreciation Bonds (Project Area No. 3) are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 309,731
$ 585,687
$ 895,418
2017
329,787
601,495
931,282
2018
344,954
616,977
961,931
2019
369,116
632,690
1,001,806
2020
260,602
780,405
1,041,007
2021 - 2025
1,916,677
3,721,092
5,637,769
2026 - 2030
1,941,143
4,153,207
6,094,350
2031 - 2035
3,030,985
3,515,965
6,546,950
2036 - 2040
4,255,000
903,075
5,158,075
2041
985,000
49,250
1,034,250
$ 13,742,995
$ 15,559,843
$ 29,302,838
- 117-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
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
Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency
in Project Area No. 4. Interest rates on the bonds vary from 4.0% to 5.2% per annum payable semi-
annually on April I and October 1, with principal maturing annually on October 1. 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.
The future debt service requirements on the 1998 Series Tax Allocation Revenue Bonds (Project
Area No. 4) (after defeasance) are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 375,000
$ 376,375
$ 751,375
2017
400,000
356,678
756,678
2018
410,000
336,005
746,005
2019
430,000
314,340
744,340
2020
455,000
291,330
746,330
2021 - 2025
2,680,000
1,063,140
3,743,140
2026 - 2029
2,695,000
288,990
2,983,990
$ 7,445,000
$ 3,026,858
$ 10,471,858
-118-
CITY OF PALM DESF,RT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
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 Palm Desert Redevelopment Agency to fund various redevelopment capital projects
of the Agency in Project Area No. 4. Interest rates on the bonds vary from 3.5% to 4.8% per annum
payable semi-annually on April 1 and October 1, with principal maturing annually on October 1.
The future debt service requirements on the 2001 Series Tax Allocation Revenue Bonds (Project
Area No. 4) are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 390,000
$ 567,322
$ 957,322
2017
400,000
549,825
949,825
2018
435,000
531,073
966,073
2019
450,000
510,940
960,940
2020
475,000
489,691
964,691
2021 - 2025
2,670,000
2,091,529
4,761,529
2026 - 2030
4,125,000
1,357,320
5,482,320
2031 - 2032
3,220,000
156,480
3,376,480
$ 12,165,000
$ 6,254,180
$ 18,419,180
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation Refundine Revenue Bonds (Proiect Area No. 4) 2006 Series A and Tax Allocation
Revenue Capital Appreciation Bonds (Proiect 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 Palm Desert Redevelopment Agency. The
proceeds of the Series A and B Bonds will be used to make two loans to refinance a portion of the
outstanding obligations of the Redevelopment Agency under a loan agreement dated March 1, 1998,
fund various redevelopment capital projects within or of benefit to its Project Area No. 4, purchase
a Reserve Fund surety policy and pay the costs of issuance of the bonds. The Series A bonds
consist of $8,155,000 Serial Bonds with interest rates ranging from 4.40% to 5.00% payable
semiannually on October 1 and April 1. Bond maturities began October 1, 2008, and continue
annually through 2026. Term bonds in the amount of $2,200,000 carry an interest rate of 5.00%
and mature October 1, 2029. Term bonds in the amount of $4,255,000 carry an interest rate of
5.00% and mature October 1, 2034. The Series B bonds consist of $4,663,089 Capital Appreciation
Bonds with a yield ranging from 4.14% to 5.56%. Bond maturities begin October 1, 2009, and
continue annually through 2034. Each year the outstanding balance is increased for the accretion of
interest associated with the bonds. The accreted interest at June 30, 2015 is $2,608,954.
The future debt service requirements on the 2006 Series A Tax Allocation Refunding Bonds and
Series B Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 672,930
$ 543,641
$ 1,216,571
2017
65,619
549,951
615,570
2018
106,490
589,080
695,570
2019
270,000
504,630
774,630
2020
338,168
528,923
867,091
2021 - 2025
2,778,324
2,947,368
5,725,692
2026 - 2030
4,495,323
3,545,510
8,040,833
2031 - 2035
6,763,415
8,823,460
15,586,875
$ 15,490,269
$ 18,032,563
$ 33,522,832
- 120 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAI. STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (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 2002 Series. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to fund various low and moderate
housing capital projects of the Agency and to finance costs of issuance of the bonds. Interest rates
on the $6,555,000 serial bonds vary from 2.0% to 4.9% per annum payable semi-annually on
March I and October 1. Annual principal payments began October 1, 2003. The $5,545,000 term
bonds bear an interest rate of 5.0% per annum and mature October 1, 2031.
The future debt service requirements on the 2002 Series Tax Allocation (Housing Set -Aside)
Revenue Bonds are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 345,000
$ 419,004
$ 764,004
2017
360,000
404,019
764,019
2018
375,000
388,029
763,029
2019
395,000
370,891
765,891
2020
415,000
352,407
767,407
2021 - 2025
2,390,000
1,436,795
3,826,795
2026 - 2030
3,065,000
762,125
3,827,125
2031 - 2032
1,455,000
73,625
1,528,625
$ 8,800,000
$ 4,206,895
$ 13,006,895
- 121 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation (Housinp- 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 Palm Desert Financing
Authority loaned the proceeds to the Palm Desert Redevelopment Agency. The proceeds of the
2007 Loan will be used to finance the development of low and moderate income housing by the
Redevelopment Agency, refinance a portion of the outstanding obligations of the Redevelopment
Agency, purchase a debt service surety bond for deposit in the Reserve Fund, and pay certain costs
associated with the issuance of the bonds. The Series 2007 bonds consist of $86,155,000 Serial
Bonds with interest ranging from 4.00% to 5.00% payable semiannually on October 1 and April 1.
Bond maturities began October 1, 2007, and continue annually through 2027.
The future debt service requirements on the Tax Allocation (Housing Set -Aside) Refunding
Revenue Bonds Series 2007 are as follows:
Year Ending
June 30,
Principal
Interest
Total
2016
$ 5,785,000
$ 2,531,313
$ 8,316,313
2017
6,085,000
2,234,563
8,319,563
2018
6,395,000
1,922,563
8,317,563
2019
6,720,000
1,594,688
8,314,688
2020
7,065,000
1,250,063
8,315,063
2021 - 2025
13,895,000
3,788,675
17,683,675
2026 - 2028
9,995,000
649,294
10,644,294
$ 55,940,000
$ 13,971,159
$ 69,911,159
- 122 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
19. RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS:
Restatement of the Government -Wide Financial Statements' net position as of July 1, 2014 are as
follows:
Net position at July 1, 2014, as originally reported
To report pension liability for the implementation
of GASB Statements No. 68 and 71
To transfer liability for compensated absences
to the internal service fund
Net position at July 1, 2014, as restated
20. SUBSEQUENT EVENTS:
Governmental
Activities
$ 712,245,092
(39,728,900)
2,691,840
Events occurring after June 30, 2015 have been evaluated for possible adjustments to the financial
statements or disclosure as of December 9, 2015, which is the date these financial statements were
available to be issued.
- 123 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 124 -
REQUIRED SUPPLEMENTARY INFORMATION
-125-
Schedule 1
CITY OF PALM DESERT
SCI IEDULE OF CI IANGES IN TI IE NET PENSION LIABILITY AND RELATED RATIOS
LastTen en Fiscal Years*
2015
Total Pension Liability:
Service cost $ 2,156,598
Interest on total pension liability 7,991,591
Differences between expected and actual experience -
Changes in assumptions -
Changes in benefits -
Benefit payments, including refunds of employee contributions (4,849,320)
Net Change in Total Pension Liability 5,298,869
Total Pension Liability - Beginning of Year 107,900,900
Total Pension Liability - End of Year (a) $ 113,199,769
Plan Fiduciary Net Position:
Contributions - employer $ 37320,450
Contributions - employee 995,504
Net investment income 11,290,314
Benefit payments (4,849,320)
Net Change in Plan Fiduciary Net Position 10,756,948
Plan Fiduciary Net Position - Beginning of Year 64,851,550
Plan Fiduciary Net Position - End of Year (b) $ 75,608,498
Net Pension Liability - Ending (a)-(b) $ 37,591,271
Plan fiduciary net position as a percentage of the
total pension liability 66.79%
Covered - employee payroll $ 11,110,759
Net pension liability as percentage of
covered- employee payroll 338.33%
Notes to Schedule:
Benefit Changes:
There were not changes in benefits.
Changes in Assumptions:
There were not changes in assumptions
Measurement date is 12 months prior to the end of the fiscal year.
* - Fiscal year 2015 was the 1 st year of implementation, therefore only one year is shown.
- 126 -
CITY OF PALM DESERT
SCHEDULE OF CONTRIBUTIONS - DEFINED BENEFIT PENSION PLAN
Last Ten Fiscal Years*
Schedule 2
2015
Actuarially determined contribution $ 31393,041
Contributions in relation to the actuarially determined contributions (3,393,041)
Contribution deficiency (excess)
Covered - employee payroll $ 11,021,835
Contributions as a percentage of covered - employee payroll 30.78%
Notes to Schedule:
Valuation Date
6/30/2012
Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age
Amortization method Level percentage of payroll, closed
Remaining amortization period 22 years as of the valuation date
Asset valuation method 15 year smoothed market
Inflation 2.75%
Salary increases 3.30% to 14.20% depending on age, service and type of employment
Investment rate of return 7.50%, net of pension plan investment expense, including inflation
Retirement age 50 years 2.71/oc 55 and 52 years 2%`r 62
Mortality Morality assumptions are based on mortality rates resulting from the
most recent CaIPERS Experience Study adopted by the CaIPERS
Board, first used in the June 30, 2009 valuation. For purposes of the
post -retirement mortality rates, those revised rates include 5 years of'
projected on -going mortality improvement using Scale AA published
by the Society of Actuaries until June 30, 2010. There is no margin
for future mortality improvement beyond the valuation date.
* - Fiscal year 2015 was the 1 st year of implementation, therefore only one year is shown.
- 127 -
Schedule 3
CITY OF PAI.M DESERT
SCHF.DULE OF FUNDING PROGRESS
For the year ended June 30, 2015
OTHER POST -EMPLOYMENT BENEFIT PLAN
Actuarial
Accrued
Actuarial 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)
(c)
[(a)-(b)]/(c)
07/01/07
$ 6,481,631
$ -
$ 6,481,631
0.00%
$ 13,800,864
46.97%
07/01/09
8,230,029
6,916,360
1,313,669
84.04%
12,449,000
10.55%
06/30/11
9,854,151
8,986,749
867,402
91.20%
11,416,000
7.60%
06/30/13
11,234,217
9,709,457
1,524,760
86.43%
9,667,000
15.77%
- 128 -
Fund balance, July 1
Resources (inflows):
"faxes
Licenses and permits
Intergovernmental revenues
Rental income
Charges of services
Fines and forfeitures
Investment earnings
Miscellaneous
Transfers 1rom other funds
Total resources
Charges to appropriations (outflows):
Current:
General government
Public safety
Public works
Parks, recreation and culture
Capital outlay
Transfers to other funds
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30
Schedule 4
CITY OF PALM D1=.SF.R7'
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the year ended June 30, 2015
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 78,373,946
$ 78,373,946
$ 78,373,946
$ -
42,304,000
44,004,000
44,442,260
438,260
1,402,000
1,402,000
1,467,668
65,668
855,000
985,000
1,802,929
817,929
166,000
166,000
150,550
(15,450)
971,000
1,111,000
11051,639
(59,361)
105,000
105,000
88,053
(16,947)
180,000
180,000
416,656
236,656
452,000
452,000
636,056
184,056
2,237,500
21237,500
2,179,472
(58,028)
48,672,500
50,642,500
52.235,283
1,592,783
12,973,545
14,538,619
14,056,713
481,906
20,964,540
20,804,520
20,631,915
172,605
71334,732
8,592,040
7,343,333
1,248,707
3,872.729
4,256,979
3,912.300
344,679
-
357,936
357,926
10
3,105,000
4,625,000
4,496,373
128,627
48.250,546
53,175,094
50,798,560
2,376.534
421,954
(2,532,594)
1,436,723
3,969,317
$ 78,795,900
$ 75,841,352
$ 79,810,669
$ 3,969,317
Sec accompanying note to required supplementary information.
- 129 -
Fund balance, July I
Resources (inflows):
Taxes
Special assessments collected
Intergovernmental revenues
Investment earnings
Miscellaneous
Transfers in
Total resources
Charges to appropriations (outflows):
Current:
Public safety
Capital outlay
"Transfers to other funds
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE,
PROP A FIRE; TAX SPECIAL RI;VE•'NUE FUND
For the year ended June 30, 2015
Budgeted Amounts Actual
Original Final Amounts
$ 2,458,670 $ 2,458,670 $ 2,458,670
Schedule 5
Variance with
Final Budget
Positive
(Negative)
$ -
5,134,000
5,134,000
5,136,552
2,552
2,200,000
2,200,000
2,097,968
(102,032)
834,500
834,500
982,099
147,599
2,000
2,000
5,966
3,966
10,000
10,000
14,689
4,689
2,000,000
2,000,000
2,000,000
-
10,180,500
10,180,500
10,237,274
56,774
10,506,360
10,865,360
10,856,288
9,072
24,000
24,000
32,718
(8,718)
230,000
230,000
-
230,000
10,760,360
11,119,360
10,889,006
230,354
(579,860)
(938,860)
(651,732)
287,128
$ 1,878,810
$ 1,519,810
$ 1,806,938 $
287,128
See accompanying note to required supplementary information.
- 130 -
CITY OF PALM DESERT
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2015
BUDGETS AND BUDGETARY ACCOUNTING:
The City used the following procedures in establishing the budgetary data reported in the financial
statements:
1. Before the beginning of the fiscal year, the City Manager submits to the City Council a
proposed budget for the year commencing the following July 1.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is subsequently adopted through passage of a resolution.
4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level,
which is the legal level of control.
For other funds, expenditures cannot exceed the total amount budgeted for each fund, which is
the legal level of control. The City Manager is authorized to transfer appropriations (without
council approval) between an object of a General Fund Department. The City Council
approves all other changes. Annual appropriation amounts lapse at year-end.
5. Encumbrances and continuing appropriations are rebudgeted as of July 1, by Council action.
6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted
in the United States of America for all governmental funds except for certain special revenue
funds and capital projects funds, which adopt project length budgets and debt service funds that
are not budgeted as effectively budgetary control is achieved through debt indenture provisions.
The following special revenue funds had legally adopted budgets during the current fiscal year:
Major Fund
Prop A Fire Tax
Other Governmental Funds
Traffic Safety
Gas Tax
Housing Mitigation Fees
Community Development Block Grant
Public Safety Police Grants
El Paseo Assessment District
Landscape and Lighting District No. 1-17
- 131 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 132 -
GENERAL FUND
The General Fund is used to account for all financial resources traditionally associated with
government, except those required to be accounted for in another fund. It is the primary operating fund
that includes the operating budgets for all the departments and the majority of the City's tax revenues.
- 133 -
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
Fund balance, July 1
Resources (inflows):
Taxes:
Property taxes
Property transfer tax
Property tax in lieu
Timeshare mitigation fee
Sales tax
Business license tax
State ADA license
Job valuation fees
Transient occupancy tax
Franchises
Penalties and interest on taxes
Total Taxes
Licenses and Permits:
Building permits
Grading permits
Encroachment permits
Miscellaneous permits
Business regulatory permits
Valet parking permits
Total Licenses and Permits
Intergovernmental Revenues:
Grants
State mandate cost
Motor vehicle in -lieu fees
Monthly parking ball
Reimbursement RDA costs
Other reimbursements
Total Intergovernmental Revenues
For the year ended June 30, 2015
Budgeted Amounts
Original Final
$ 78,373,946 $ 78,373,946
Actual
Amounts
$ 78,373,946
Schedule 6
Variance with
Final Budget
Positive
(Negative)
5,743,000
6,343,000
6,040,107
(302,893)
520,000
520,000
558,965
38,965
3,550,000
3,550,000
3,670,883
120,883
1,200,000
1,200,000
1,483,158
283,158
17,850,000
17,750,000
17,565,134
(184,866)
1,250,000
1,250,000
1,160,207
(89,793)
1,000
1,000
-
(1,000)
20,000
20,000
26,639
6,639
9,200,000
10,400,000
10,799,680
399,680
2,950,000
2,950,000
3,102,431
152,431
20,000
20,000
35,056
15,056
42,304,000
44,004,000
44,442,260
438,260
1,250,000
1,250,000
1,267,151
17,151
5,000
5,000
12,555
7,555
95,000
95,000
151,162
56,162
1,500
1,500
1,915
415
50,000
50,000
34,210
(15,790)
500
500
675
175
1,402,000
1,402,000
1,467,668
65,668
-
-
30,758
30,758
-
130,000
133,711
3,711
30,000
30,000
21,338
(8,662)
15,000
15,000
12,415
(2,585)
200,000
200,000
746,122
546,122
610,000
610,000
858,585
248,585
855,000
985,000
1,802,929
817,929
(Continued)
- 134 -
CITY OF PALM DESERT
BUDGETARY COMPARISON SCIIEDULF, BY DEPARTMENT
GENERAL FUND
(CONTINUED)
Resources (inflows) (Continued):
Rental income
Charges for Services:
Subdivision fees
Zoning fees
Plan check fees
Sale of maps and publications
Microfilm ices
Other fees
Total Charges for Services
Fines and Forfeitures:
Vehicle code fines
Municipal court fines
VICR Ices
Total Fines and Forfeitures
Investment Earnings:
Interest income
Interest on notes receivable
Total Investment F,arnings
Miscellaneous Revenues:
Code compliance
Strong motion instrument fee
Special investigation fee
Certificate of compliance fce
Nuisance abatement tax
Abandoned vehicle abatement
Fire inspection service
Other revenue
Total Miscellaneous Revenues
Transfers from other funds
Amounts Available for Appropriation
For the year ended June 30, 2015
Budgeted Amounts Actual
Original Final Amounts
$ 166,000 $ 166,000 $ 150,550
Schedule 6
Variance with
Final Budget
Positive
(Negative)
$ (15,450)
220,000
360,000
361,074
1,074
150,000
150,000
116,208
(33,792)
500,000
500,000
505,370
5,370
15,000
15,000
8,982
(6,018)
15,000
15,000
9,558
(5,442)
71,000
71,000
50,447
(20,553)
971,000
1,111,000
1,051,639
(59,361)
15,000
15,000
17,244
2,244
15,000
15,000
11,974
(3,026)
75,000
75,000
58,835
(16,165)
105,000
105,000
88,053
(16,947)
100,000
100,000
242,194
142,194
80,000
80,000
174,462
94,462
180,000
180,000
416,656
236,656
3,000
3,000
8,853
5,853
5.000
5,000
11,218
6,218
4,000
4.000
7,095
3,095
1,000
1.000
2,000
1,000
75,000
75,000
53,159
(21,841)
40,000
40,000
541576
14,576
200,000
200,000
232,246
32,246
124,000
124,000
266,909
142,909
452,000
452,000
636,056
184,056
2,237,500
2,237,500
2,179,472
(58,028)
48,672,500
50,642,500
52,235,283
1,592,783
(Continued)
- 135 -
CITY OF PALM DESERT
BUDGETARY COMPARISON SCI IEDULE BY DEPARTMENT
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2015
Charges to appropriations (outflows):
General Government - Departmental:
City council
City clerk
Legislative advocacy
General elections
City attorney
Legal special services
City manager
Community services
Finance
Auditing
Human resources
General services
Information technology
Unemployment insurance
Insurance
Community promotion
Community development
Economic development center
Marketing
Total General Government - Departmental
General Government - Nondepartmental:
Retiree funding
Contributions to other agencies
Total General Government - Non departmental
Total General Government
Public Safety:
Police services
Animal regulation
Traffic safety
Building and safety
Total Public Safety
Schedule 6
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 243,300
$ 259,907
$ 245,811
$ 14,096
893,400
919,100
917,636
1,464
36,500
36,500
36,180
320
61,900
65,200
65,159
41
240,000
240,000
239,328
672
300,000
162,000
161,534
466
1,001,420
1,115,557
1,075,654
39,903
420,588
470,788
470,612
176
2,019,670
2,019,670
2,012,250
7,420
63,000
63,000
55,027
7,973
517,192
537,192
486,859
50,333
543,000
543,000
529,279
13,721
870,435
895,435
829,034
66,401
-
526
263
263
492,700
492,700
436,629
56,071
659,500
769,000
749,631
19,369
1,971,110
2,053,884
2,039,133
14,751
995,600
1,086, 750
1,069,940
16,810
984,230
1,089,355
993,163
96,192
12,313,545
12,819,564
12,413,122
406,442
-
1,000,000
1,000,000
-
660,000
719,055
643,591
75,464
660,000
1,719,055
1,643,591
75,464
12,973,545
14,538,619
14,056,713
481,906
18,654,959
18,344,959
18,313,566
31,393
243,006
243,006
213,569
29,437
244,000
288,380
256,982
31,398
1,822,575
1,928,175
1,847,798
80,377
20,964,540
20,804,520
20,631,915
172,605
(Continued)
- 136 -
CITY OF PALM DESERT
BUDGETARY COMPARISON SCI IEDULE BY DEPARTMIiNT
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2015
Schedule 6
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Charges to appropriations (outflows) (Continued):
Public Works:
Administration
$ 2,725,000
$ 2,754,250
$ 2,645.443
$ 108,807
Street maintenance
2.644,477
2,672,098
21631,590
40,508
Street resurfacing
825,000
1,875,791
998,463
877,328
Parking lot
-
38,945
38,945
-
Corporate yard
65,500
65,500
52,949
12,551
Building maintenance
498,000
608,701
502,979
105,722
Portola community center
65,755
65,755
61,985
3,770
Auto equipment
435,000
435,000
362,012
72,988
Storm eater permit
76,000
76,000
48,967
27,033
Total Public Works
7,334,732
8,592,040
7,343,333
11248,707
Parks, Recreation and Culture:
Park maintenance
747.150
784,336
704,007
80,329
Civic center park
1,017,850
1,060.590
1,038,440
22,150
Landscape service
1,746,432
2,050,756
1,866,513
184,243
Visitors center
361,297
361,297
303,340
57,957
Total Parks, Recreation and Culture
3,872,729
4,256,979
3,912,300
344,679
Capital Outlay - Departmental
-
357,936
357,926
10
Transfers to other funds
3,105,000
4,625,000
4,496,373
128,627
Amounts Charged to Appropriation
48,250,546
53,175,094
50,798,560
2,376,534
Excess of resources over (under)
charges to appropriations
421,954
(2,532,594)
1,436,723
3,969,317
Fund balance, June 30
$ 78,795,900
$ 75,841,352
$ 79,810,669
$ 3,969,317
- 137 -
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- 138 -
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
- 139 -
Schedule 7
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTT IER GOVERNMENTAL FUNDS
June 30, 2015
Total
Special
Debt
Capital
Other
Revenue
Service
Projects
Governmental
ASSETS
Funds
Fund
Funds
Funds
Pooled cash and investments
S 18,288,803
S
99,021
S
15,057,758
S
33,445,582
Receivables:
Accounts
425,089
-
-
425,089
Assessments
-
1,347,184
-
1,347,184
Interest
184,262
-
29,760
214,022
Loans
4,694,829
-
4,694,829
Prepaid costs
348
348
Inventories
5,101
-
-
5,101
Due from other governments
380,106
1,203
78,348
459,657
Due from other funds
-
-
500,000
500,000
Advances to Successor Agency
654,000
12,765,000
13,419,000
Restricted assets.
Cash and investments with fiscal agent
-
-
21,512,850
21,512,850
TOTAL ASSETS
$ 24,632,538
$
1,447,408
$
49,943,716
$
76,023,662
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
$ 493,769
$
113
$
214,248
$
708,130
Accrued liabilities
6,232
-
1,959
8,191
Due to other funds
2,630,800
2,553,000
5,183,800
Unearned revenues
57,553
71,596
129,149
Deposits payable
-
-
77,583
77,583
TOTAL LIABILITIES
3,188,354
113
2,918,386
6,106,853
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
197,925
1,347,184
-
1,545,109
FUND BALANCES:
Nonspendable:
Prepaid costs
348
-
-
348
Restricted for:
Capital projects
-
-
21,528,899
21,528,899
Debt service
-
100,111
-
100,111
Low income housing
2,256,769
-
2,256,769
Public facilities
3,411,623
3,411,623
Public safety
985,882
-
985,882
Special programs
6,274,436
1,323,900
7,598,336
Street related purposes
3,239,802
3,239,802
Committed to:
Aquatic center
2,134,121
-
2,134,121
Energy loan program
2,943,278
-
2,943,278
Assigned to
Capital projects
-
9,910,743
9,910,743
Property acquisition
420,387
420,387
Public facilities
10,947,754
10,947,754
Special programs
667,255
667,255
Street related purposes
-
-
2,226,392
2,226,392
TOTAL FUND BALANCES
21,246,259
100,111
47,025,330
68,371,700
TOTAL LIABILITIES, DEFERREE
INFLOWS OF RESOURCES
AND FUND BALANCES
$ 24,632,538
S
1,447,408
S
49,943,716
$
76,023,662
- 140 -
Schedule 8
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CI IANGIiS IN FUND BALANCES
OTHER GOVERNMENTAL, FUNDS
For the year ended June 30, 2015
Total
Special
Debt
Capital
Other
Revenue
Service
Projects
Governmental
Funds
Fund
Funds
Funds
REVENUES:
Taxes
$ 413,111
$ -
$ -
$ 413,111
Special assessments collected
837,699
123,109
-
960.798
Licenses and permits
-
-
289,582
289,582
Intergovernmental revenues
2,287,720
-
613,805
2,901,525
Charges for services
767,825
-
-
767.825
Investment earnings
469,864
237
124,114
594.215
Fines and forfeitures
136,559
-
-
136.559
Contribution from property owners
-
-
9,168
9,168
Miscellaneous
133,529
-
1,464,676
1,598,205
TOTAL RI;VI:NUF,S
5,046,297
123,346
2,501,345
7,670,988
EXPENDITURES:
Current:
General government
893,655
15,563
501,815
1,411,033
Housing and redevelopment
1,093,014
-
-
11093,014
Public safety
331,011
-
-
331,011
Parks, recreation and culture
1,455,898
-
868,519
2,324.417
Public works
2,377,231
-
926,435
3.303,666
Contribution to property owners
-
-
49
49
Capital outlay
834.735
-
873,815
1,708,550
Debt service:
Principal retirement
4,907,000
37,000
-
4,944.000
Interest and fiscal charges
163,595
76,624
-
240,219
TOTAL EXPENDITURES
12,056,139
129,187
3,170,633
15,355,959
EXCESS OF REVENUES OVER
(UNDER) FXPFNDITURES
(7,009,842)
(5,841)
(669,288)
(7,684,971)
OTI IER FINANCING SOURCES (USES):
Transfers in
1,323,387
-
630,000
1,953.387
Transfers out
(965,972)
-
(776,000)
(1,741,972)
TOTAL OTHER FINANCING
SOURCES (USES)
357,415
-
(146.000)
211.415
NET CI IANGF, IN FUND BALANCES
(6,652,427)
(5,841)
(815,288)
(7,473,556)
FUND BALANCES - BEGINNING OF YEAR
27,898,686
105,952
47,840,618
75,845,256
FUND BALANCES - END OF YEAR
$ 21,246,259
$ 100,1 l 1
$ 47,025,330
$ 68,371,700
-141-
THIS PAGE INTENTIONALLY LEFT BLANK
- 142 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than
expendable trust that are legally restricted to expenditures for specific purposes.
Traffic Safetv Fund - Traffic and court fines are collected in these funds. A transfer from this Fund to
the General Fund is made at the end of the fiscal year by council action to be applied toward the
eligible expenditures permitted by law.
Gas Tax Fund - Portions of the tax rate per gallon levied by the State of California on all gasoline
purchases are allocated to cities throughout the State. These funds are restricted to expenditure for
transit and street -related purposes.
Housing Mitigation Fee Fund - This fund is used to account for fees collected from construction of
commercial and office buildings for low and moderate income mitigation purposes to be used strictly
for projects and programs that benefit the low and moderate income households.
Communitv Development Block Grant Fund - This fund is used to account for the receipts and
expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development.
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.
Recvclinp, 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.
- 143 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 144 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Public Safetv Police Grants Fund - This fund is used to account for grants received from the U.S.
Department of Justice under the Local Law Enforcement Block Grants Program for the purpose of
purchasing equipment related to public safety.
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.
Air Quality Management Fund - This fund accounts for receipts from South Coast Air Quality
Management District, one hundred percent of which is disbursed to the Coachella Valley Association
of Governments.
Various Landscape and LiRhtin2 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.
Child Care Program Fund - This fund is used to collect funds from developers for the purpose of
providing child care programs.
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.
Enerp,v Independence Loan Fund - This fund is used to provide funding for the AB811 Energy Loans
and collect assessments from those AB81 I loans through property tax collections. The assessments
collected will be used to service debt issued and to provide additional funding for the A13811 loans.
Aquatic Center Fund - This fund is used to account for revenues and expenditures of the City's aquatic
facility.
RDA Low Income Housing Fund - This fund is used to account for the management and operation of
the City's housing assets.
- 145 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
June 30, 2015
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Interest
Loans
Prepaid costs
Inventories
Due from other governments
Advances to Successor Agency
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Low income housing
Public facilities
Public safety
Special programs
Street related purposes
Committed to:
Aquatic center
Energy loan program
TOTAL, FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Housing
Traliic
Mitigation
Safety
Gas "Tax
Fee
$ -
$ 922,364
$ 2,219,558
-
-
37,211
11,069
134,935
-
$ 11,069
$ 1,057,299
$ 2,256,769
2,256,769
11,069 1,057,299 -
11,069 1,057,299 2,256,769
$ 11,069 $ 1,057,299 $ 2,256,769
- 146 -
Schedule 9
Community
New
Park and
Public
El Pasco
Development
Construction
Planned
Recreation
'Traffic
Safety Police
Assessment
Block Grant
Tax
Drainage
Facilities
Signals
Recycling
Grants
District
$ 18,984
$ 768,423
$ 1,924,124
$ 1,107.940
$ 301,989
$ 3.701,680
$ 63,634
$ 53.839
13,663
-
-
-
-
-
-
-
-
-
-
-
-
33
128,887
-
-
-
-
9,903
56,862
-
-
654,000
-
-
-
-
-
-
$ 161,534
$ 1,422,423
$ 1,924,124
$ 1,107,940
$ 301,989
$ 3,711,583
$ 120,496
$ 53,872
$ 128,887 $ 4,957 $ - $ 4,048 $ 54,679 $ 33,942 $ 75,413 $ 5,363
- - - - - 1,085 - -
130.800 - - - - -
- - - - - 4,963 38,057 -
128,887 135,757 - 4,048 54,679 39,990 113,470 5,363
13,663 - - - - - - -
33
1,286.666 - 1,103,892 - - -
- - 7,026 -
18,984 - - - - 3,671,593 - 48,476
- - 1,924,124 - 247,310 - - -
18,984 1,286,666 1,924,124 1,103,892 247,310 3,671,593 7,026 48,509
$ 161,534 $ 1,422,423 $ 1,924,124 $ 1,107,940 $ 301,989 $ 3,711,583 $ 120,496 $ 53,872
(Continued)
- 147 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
June 30, 2015
ASSETS:
Pooled cash and investments $
Receivables:
Accounts
Interest
Loans
Prepaid costs
Inventories
Due from other governments
Advances to Successor Agency
TOTAL ASSETS $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES:
Accounts payable $
Accrued liabilities
Due to other funds
Unearned revenues
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Low income housing
Public facilities
Public safety
Special programs
Street related purposes
Committed to:
Aquatic center
Energy loan program
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $
Landscape
Air
and bighting
Fire
Quality
Districts
Child Care
Facilities
Management
Nos. 1 - 17
Program
Restoration
69,726
$ 2,494,408
$ 1,021,065
$ 978,856
16,413
7,751
-
-
86,139
$ 2,502,159
$ 1,021,065
$ 978,856
9,848 $ 43,067
9,848 43,067 - -
1,021,065 -
- - - 978,856
76,291 2,459,092 - -
76,291
2,459,092
1,021,065
978,856
86,139
$ 2,502,159
$ 1,021,065
$ 978,856
- 148 -
Energy
Independence
Aquatic
Loan
Centcr
$ 743,590
$ 1,893,476 $
4,447
383,431
184,262
-
4,681,166
-
-
315
-
5,101
14,286
-
$ 5,627,751
$ 2,282,323 $
$ 211 $ 133,354 $
2,500,000 -
- 14,533
2,500,211 147,887
184,262 -
- 315
- 2,134,121
2,943,278 -
2,943,278 2,134,436
Schedule 9
"Dotal
RIBA
Other
Low Income
Special Revenue
Ilousing
Funds
5,147
$ 18,288,803
-
425,089
-
184,262
-
4,694,829
-
348
-
5,101
-
380,106
-
654,000
5,147 $ 24,632,538
- $ 493,769
5,147 6,232
- 2,630,800
- 57,553
5,147 3,188,354
197,925
348
- 2,256,769
- 3,411.623
- 985,882
- 6,274,436
- 3,239,802
- 2,134,121
- 2,943,278
- 21,246,259
$ 5,627,751 $ 2,282,323 $ 5,147 $ 24,632,538
- 149 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
For the year ended June 30, 2015
REVENUES:
Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
I lousing and redevelopment
Public safety
Parks, recreation and culture
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
"TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(FINDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES -
BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Housing
Traffic
Mitigation
Safety
Gas Tax
Fee
50,210
-
1,446,068
-
155
2,580
22,947
136,559
-
-
-
-
120,000
136,714
1,448,648
193,157
-
-
360,000
-
1,225,868
-
-
1,225,868
360,000
136,714
222,780
(166,843)
(135,972)
(830,000)
-
(135,972)
(830,000)
-
742
(607,220)
(166,843)
10,327
1,664,519
2,423,612
$ 11,069
$ 1,057,299
$ 2,256,769
- 150 -
Schedule 10
Community
New
Park and
Public
FI Pasco
Development
Construction
Planned
Recreation
Trallic
Safety Police
Assessment
Block Grant
"rax
Drainage
Facilities
Signals
Recycling
Grants
District
$ -
$ 206,206
$ 7,020
$ 67,481
$ 16,688-
-
-
-
-
-
-
-
239,591
269,092
-
-
-
42,858
331,010
-
-
2,517
6,352
3,895
1,034
13,059
128
160
-
-
13,198
-
171
-
-
269,252
208,723
137372
84,574
17,722
56,088
331 J 38
239,581
269,093
-
-
-
340,674
-
225.361
-
-
-
-
-
-
331,011
-
-
-
-
88,173
-
10,642
-
-
-
92,962
-
-
53,460
306.371
-
-
-
-
-
97.639
24,380
14.808
-
-
269,093
92,962
-
185,812
77,840
672,495
331,011
225,361
159
115,761
13,372
(101,238)
(60,118)
(616,407)
127
14.220
159
115,761
13,372
(101,238)
(60,118)
(616,407)
127
14,220
18,825
1,170,905
1,910,752
,1,2057130
307,428
4,288,000
6,899
34,289
$ 18,984
$ 1,286,666
$ 1,924,124
$ 1,103,892
$ 247,310
$ 3,671,593
$ 7,026
$ 48,509
(Continued)
- 151 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER SPECIAL. REVENUE FUNDS
(CONTINUED)
For the year ended June 30, 2015
Landscape
Air
and Lighting
Fire
Quality
Districts
Child Care
Facilities
Management
Nos. 1 - 17
Program
Restoration
REVENUES:
Taxes
$ -
$ -
$ 25,483
$ 40,023
Special assessments collected
-
598,108
-
-
Intergovernmental revenues
198,692
-
-
-
Charges for services
-
-
-
-
Investment earnings
337
4,336
4,037
3,170
Fines and forfeitures
-
-
-
-
Miscellaneous
-
-
-
-
TOTAL REVENUES
199,029
602,444
29,520
43,193
EXPENDITURES:
Current:
General government
Housing and redevelopment
Public safety
Parks, recreation and culture
Public works
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL. EXPENDITURES
EXCESS OFREVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL. OTHER FINANCING
SOURCES (USES)
NET Cl [ANGE IN FUND BALANCES
FUND BALANCES -
BEGINN[NG OF YEAR
FUND BALANCES - END OF YEAR
38,765
-
-
-
84,400
-
-
-
152,337
546,233
-
-
192,966
-
500,000
-
468,468
546,233
500,000
-
(269,439)
56,211
(470,480)
43,193
-
86,732
-
-
-
86,732
-
-
(269,439)
142,943
(470,480)
43,193
345,730 t
2,316,149
1,491,545
935,663
$ 76,291 $
2,459,092
$ 1,021,065
$ 978,856
- 152 -
Schedule 10
"Dotal
En
Independence
Energy
1,
Aquatic
Center
19,762 - - 893,655
- - 733,014 1,093,014
- - - 331,011
- 1,272,683 - 1,455,898
- - - 2,377,231
- 4,942 - 834,735
4,907,000 - - 4,907,000
163,595 - - 163,595
5,090,357 1,277,625 733,014 12,056,139
(4,689,943) (504,897) (733,014) (7,009,842)
- 503,641 733,014 1.323,387
- - - (965,972)
- 503,641 733,014 357,415
(4,689,943) (11256) - (6,652,427)
7,633,221 2,135,692 - 27,898,686
$ 2,943,278 $ 2,134,436 $ - $ 21,246,259
- 153 -
- 153 -
Schedule l l-A
CITY OF PALM DESERT
SCI IEDULE OF REVENUES, EXPENDITURES AND
Cl IANGES IN FUND BALANCE - BUDGET AND ACTUAL
"TRAFFIC SAFETY
For the year ended June 30, 2015
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Fund balance, July 1
$ 10,327
$ 10,327
$ 10,327
$ -
Resources (inflows):
Investment earnings
1,000
1,000
155
(845)
Fincs and forfeitures
174,000
174,000
136,559
(37,441)
Total resources
175,000
175,000
136,714
(38,286)
Charges to appropriations (outflows):
Transfers out
175,000
175,000
135,972
39,028
Total charges to appropriations
175,000
175,000
135,972
39,028
Excess of resources over (under)
charges to appropriations
-
-
742
742
Fund balance, June 30
$ 10,327
$ 10,327
$ 11,069
$ 742
- 154 -
CITY OF PALM DESERT
SCI IEDULE OF REVENUES, EXPF,NDITURIS AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL,
GAS TAX
For the year ended June 30, 2015
Fund balance, July I
Resources (inflows):
Intergovernmental revenues
Investment earnings
'Dotal resources
Charges to appropriations (outflows):
Current:
Public works
Transfers out
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30
Budgeted Amounts
Original Final
$ 1,664,519 $ 1,664.519
1,3 87,500
5,000
1,392,500
565,000
830,000
1,395,000
(2,500)
$ 1,662,019
1,387,500
5.000
1,392,500
1,225,869
830,000
2,055,869
(663,369)
$ 1,001,150
Actual
Amounts
$ 1,664,519
1,446,068
2,580
1,448,648
1,225,868
830,000
2,055,868
(607,220)
$ 1,057,299
Schedule 1 L-B
Variance with
Final Budget
Positive
(Negative)
58.568
(2.420)
56.148
1
1
56.149
$ 56.149
- 155 -
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
Cl IANGES IN FUND BALANCE - BUDGET AND ACTUAL
HOUSING MITIGATION FEES
For the year ended June 30, 2015
Budgeted Amounts
Original
Final
Fund balance, July 1
$ 2,423,612
$ 2,423,612
Resources (inflows):
Taxes
362,000
362,000
Investment earnings
9,500
9,500
Miscellaneous
120,000
120,000
Total resources
491,500
491.500
Charges to appropriations (outflows):
Current:
I lousing and redevelopment
450,000
450,000
Total charges to appropriations
450,000
450,000
Excess of resources over (under)
charges to appropriations
41,500
41,500
Fund balance, June 30
$ 2,465,112
$ 2,465,112
Actual
Amounts
$ 2,423,612
50,210
22,947
120,000
193,157
360,000
360,000
Schedule 1I-C
Variance with
Final Budget
Positive
(Negative)
(311, 790)
13,447
(298,343)
90,000
90,000
(166,843) (208,343)
$ 2,256,769 $ (208,343)
- 156 -
Schedule I1-D
CITY OF PALM DESI.;R'I'
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGI T AND ACTUAL.
COMMUNITY DEVFLOPMF.NT BLOCK GRAND
For the year ended June 30, 2015
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Fund balance, July 1
$ 18,825
$ 18,825
$ 18,825
$ -
Resources (inflows):
Intergovernmental revenues
281,000
281,000
269,092
(11.908)
Miscellaneous
-
-
160
160
Total resources
281,000
281,000
269,252
(11.748)
Charges to appropriations (outflows):
Current:
General government
281,000
415,823
269,093
146.730
Total charges to appropriations
281,000
415,823
269,093
146.730
Excess of resources over (under)
charges to appropriations
-
(134,823)
159
134,982
Fund balance, June 30
$ 18,825
$ (115,998)
$ 18,984
$ 134.982
- 157 -
Schedule 11-E
CITY OI' PALM DI,SIiRT
SCHEDULE. OF REVENUES, EXPENDITURES AND
Cl IANGES IN FUND BALANCE- BUDGET AND ACTUAL.
PUBLIC SAFETY POLICE GRANTS
For the year ended June 30, 2015
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Fund balance, July 1
$ 6,899
$ 6,899
$ 6,899
$ -
Resources (inflows):
Intergovernmental revenues
100,000
300,000
331,010
31,010
Investment earnings
-
-
128
128
Total resources
100,000
300,000
331,138
31,138
Charges to appropriations (outflows):
Current:
Public safety
100,000
331,161
331,011
150
Total charges to appropriations
100,000
331,161
331,011
150
Excess of resources over (under)
charges to appropriations
-
(31,161)
127
31,288
Fund balance, June 30
$ 6,899
$ (24,262)
$ 7,026
$ 31,288
- 158 -
CITY OF PALM 1)IiSIiR'I'
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL,
EL PASFO ASSESSMENT DISTRICT
For the year ended June 30, 2015
Fund balance, July I
Resources (inflows):
Special assessments collected
Total resources
Charges to appropriations (outflows):
Current:
General government
Total charges to appropriations
Excess of'resources over (under)
charges to appropriations
Fund balance, June 30
Schedule I l-F
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
$ 34,289 $ 34,289
$ 34,289
$ -
250,000 250,000
239,581
(10,419)
250,000 250,000
239,581
(10,419)
250,000 255,000 225,361 29,639
250,000 255,000 225,361 29,639
- (5,000) 14,220 19,220
$ 34,289 $ 29,289 $ 487509 $ 19,220
- 159 -
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE AND LIGI ITING DISTRICTS NOS. 1 - 17
For the year ended June 30, 2015
Fund balance, July I
Resources (inflows):
Special assessments collected
Investment earnings
Transfers in
Total resources
Charges to appropriations (outflows):
Current:
Public works
Total charges to appropriations
Excess of'resources over (under)
charges to appropriations
Fund balance, June 30
Budgeted Amounts
Original Final
$ 2,316,149 $ 2,316,149
Schedule 1I-G
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 2,316,149 $
607,375
607,375
598,108
(9,267)
-
-
4,336
4,336
75,000
75,000
86,732
11,732
682,375
682,375
689,176
6,801
698,654
772,515
546,233
226,282
698,654
772,515
546,233
226,282
(16,279)
(90,140)
142,943
233,083
$ 2,299,870
$ 2,226,009
$ 2,459,092 $
233,083
- I60 -
OTHER GOVERNMENTAL FUNDS - DEBT SERVICE FUND
Citv Highlands Underp-roundinp- Fund - This fund is used to account for the resources and payment for
debt related to Highlands Undergrounding.
- 161 -
ASSETS:
Pooled cash and investments
Receivables:
Assessments
Due from other governments
TOTAL, ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCF,SAND FUND BALANCES
LIABILITIES:
Accounts payable
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
TOTAL DEFERRED INFLOWS
OF RESOURCES
FUND BALANCE:
Restricted for:
Debt service
TOTAL, FUND BALANCE
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES AND
FUND BALANCE
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
June 30, 2015
Schedule 12
Total
City
Other
Highlands
Debt Service
Undergrounding
Fund
$ 99,021
$ 99,021
1,347,184
1,347,184
1,203
1,203
$ 1,447,408 $ 1,447,408
$ 113 $
113
1,347,184
1,347,184
100,111
100,111
1,347,184
1,347,184
100,111
100,111
$ 1,447,408 $ 1,447,408
- 162 -
CITY OF PALM DESFR I
STATEMENT OF RE.VENUFS, I:XPENDITURE,S
AND CI IANGF.S IN FUND BALANCE
OTI IER DEBT SERVICF. FUND
For the year ended June 30, 2015
REVENUES:
Special assessments collected
Investment earnings
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL, E.XPFNDI"ITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE. - END OF YEAR
City
Highlands
Undergrounding
$ 123,109
237
123,346
15,563
37,000
76,624
129,187
Schedule 13
Total
Other
Debt Service
Fund
$ 123.109
237
123,346
15.563
37,000
76.624
129.187
(5,841)
105,952
100,111 $
(5,841)
105,952
100.1 t 1
- 163 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 164 -
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.
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.
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.
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.
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.
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
Assessment 29
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.
Capital Properties - This fund is used to account for the cost of city owned properties that will either be
sold or for the construction of public facilities.
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.
Economic Development - This fund is used to account for facade enhancement projects for Palm
Desert businesses utilizing funds from the sales of certain City -owned properties.
- 165 -
CITY OF PALM DESERT
COMBINING BALANCE SI IEET
OTHER CAPITAL PROJECTS FUNDS
June 30, 2015
ASSETS:
Pooled cash and investments
Receivables:
Interest
Due from other governments
Due from other funds
Advances to Successor Agency
Restricted assets:
Cash and investments with fiscal agent
TOTAL, ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
Deposits payable
TOTAL. LIABILITIES
FUND BALANCES:
Restricted for:
Capital projects
Special programs
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
TOTAL, FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
Arts in Drainage
Public Places Facilities
$ 1,408,724 $ 2,125,264
$ 1,408,724 $ 2,125,264
$ 5,282 $ -
1,959 -
77,583 -
84,824 -
1,323,900 -
- 2,125,264
1,323,900 2,125,264
$ 1,408,724 $ 2,125,264
- 166 -
Schedule 14
Parks and Assessment
Recreation District No. 94-3 Silver Spur
Facilities Signali7ation Buildings Library Merano Ranch
$ 165,780 $ 102,557 $ 3,308,293 $ 667,255 $ - $ 589
6 -
4,765,000 - - -
- - - - 178,936 -
$ 4,930,780 $ 102,557 $ 3,308.293 $ 667,255 $ 178,942 $ 589
$ 9,623 $ 1,429
953,000 - -
962,623 1,429 - - - -
- - - - 178,942 589
3,968,157 - 3,308,293 - - -
- - - 667,255 - -
- 101,128 - - - -
3,968,157 101,128 3,308,293 667,255 178,942 589
$ 4,930,780 $ 102,557 $ 3,308,293 $ 667,255 $ 178,942 $ 589
(Continued)
- 167 -
CITY OF PALM DESERT
COMBINING BALANCE SI IEET
OTHER CAPITAL PROJECTS FUNDS
(CONTINUED)
June 30, 2015
Highlands
CFD
Undergrounding
University
ASSETS:
Pooled cash and investments
$ 20
$ -
Receivables:
Interest
-
14,795
Due from other governments
-
-
Due from other funds
-
-
Advances to Successor Agency
-
-
Restricted assets:
Cash and investments with fiscal agent
-
21,333,914
TOTAL ASSETS
$ 20
$ 21,348,709
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
$ -
$ -
Accrued liabilities
-
-
Due to other funds
-
-
Unearned revenues
-
-
Deposits payable
-
-
TOTAL LIABILITIES
-
-
FUND BALANCES:
Restricted for:
Capital projects 20 21,348,709
Special programs - -
Assigned to:
Capital projects - -
Property acquisition - -
Public facilities - -
Special programs - -
Street related purposes - -
TOTAL FUND BALANCES 20 21,348,709
TOTAL LIABILITIES AND FUND BALANCES $ 20 $ 21,348,709
- 168 -
Schedule 14
"Dotal
Capital Other
Assessment Capital Capital Projects Economic Capital Projects
29 Golf Properties Reserve Development Funds
$ 639 $ 2.391,234 $ 14,450 $ 4,098,111 $ 774,842 $ 15,057,758
- 14,959 - - - 29,760
- 78,348 - 78,348
500,000 - - - 500,000
- - 8.000,000 - 12,765.000
- - - - - 21,512,850
$ 639 $ 2,906,193 $ 14,450 $ 12,176,459 $ 774,842 $ 49,943,716
$ $ 24,181 $ - $ 173,733 $ - $ 214,248
- - - - 1,959
1,600,000 - 2,553,000
71,596 - 71,596
- - - - 77.583
- 24,181 - 1,845,329 - 2,918,386
639 - - - 21,528,899
- - - - 1,323.900
9,910,743 - 9,910,743
- - 420,387 - 420,387
2,882,012 14,450 - 774,842 10,947,754
- - - - 667.255
- - - - - 2,226,392
639 2,882,012 14,450 10,331,130 774,842 47,025,330
$ 639 , $ 2,906,193 $ 14,450 $ 12,176,459 $ 774,842 $ 49,943,716
- 169 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND Cl IANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
For the year ended June 30, 2015
Arts in
Public Places
REVENUES:
Licenses and permits
$ 289,582
Intergovernmental revenues
-
Investment earnings
4,887
Contribution from property owners
-
Miscellaneous
20
TOTAL REVENUES
294,489
EXPENDITURES:
Current:
General government
-
Parks, recreation and culture
456,853
Public works
-
Contribution to property owners
-
Capital outlay
28,969
TOTAL EXPENDITURES
485,822
EXCESS OF REVENUES OV1=.R
(UNDER) EXPENDITURES
(191,333)
OTI IFR FINANCING SOURCES (USES):
Transfers in
80,000
Transfers out
-
TOTAL OTHER FINANCING
SOURCES (USES)
80,000
NET CHANGE IN FUND BALANCES
(111,333)
FUND BALANCES - BEGINNING OF YEAR
1,435,233
FUND BALANCES - END OF YEAR
$ 1,323,900
Drainage
Facilities
7,025
7,025
231
231
6,794
6,794
2,118,470
$ 2,125,264
- l 70 -
Parks and
Recreation
Facilities Signalization Buildings Library
692 405 9,125
692 405 9,125
90,784
Schedule 15
Assessment
District No. 94-3 Silver Spur
Merano Ranch
20 1
20 1
2.828 - - -
- 28,579 - - - -
90,784 28,579 2,828 - - -
(90,092) (28,174) 6,297 - 20 l
550.000 - - -
550,000 - - -
(90,092) (28,174) 556,297 - 20 1
4,058,249 129,302 2,751,996 667,255 178,922 588
$ 3,968,157 $ 101,128 $ 3,308,293 $ 667,255 $ 178,942 $ 589
(Continued)
- 171 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDTTURES
AND Cl IANGES IN FUND BALANCES
OTHER CAPITAL, PROJECTS FUNDS
(CONTINUED)
For the year ended June 30, 2015
REVENUES:
Licenses and permits
Intergovernmental revenues
Investment earnings
Contribution from property owners
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Parks, recreation and culture
Public works
Contribution to property owners
Capital outlay
TOTAL. EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
"Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NI:.T CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Highlands
Undergrounding
CFD
University
55,956
9,168
65,124
7,342
7,342
57,782
- 57,782
20 21,290,927
$ 20 $ 21,348,709
- 172 -
$
Schedule 15
Total
Capital
Other
Assessment Capital
Capital Projects
Economic
Capital Projects
29 Golf
Properties Reserve
Development
Funds
-
$ -
$ 289,582
- -
- 598,079
15,726
613,805
22 28,010
48 15,227
2,696
124,114
- -
- -
-
9.168
- 1,454,656
- 10,000
-
1,464,676
22 1,482,666
48 623,306
18,422
2,501,345
-
-
-
426,815
75,000
501,815
-
301,959
-
18,923
-
868,519
502,045
-
-
413,989
-
926,435
49
-
-
-
-
49
-
-
-
816,267
-
873,815
502,094
301,959
-
1,675,994
75,000
3,170,633
(502,072)
1,180,707
48
(1,052,688)
(56,578)
(669,288)
-
-
-
-
-
630,000
-
(776,000)
-
-
-
(776,000)
-
(776,000)
-
-
-
(146,000)
(502,072)
404,707
48
(1,05208)
(56,578)
(815,288)
502,711
2,477,305
14,402
11,383,818
831,420
47,840,618
639
$ 2,882,012 $
14,450
$ 10,331,130 $
774,842
$ 47,025,330
- 173 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 174 -
INTERNAL SERVICE, FUNDS
Internal Service Funds are used to account for services are 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.
- 175 -
Schedule 16
CITY OF PALM DESERT
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
June 30, 2015
Equipment
Compensation
Replacement
Benefits
Total
ASSETS:
CURRENT ASSETS:
Cash and investments
$ 7,324,778
$ 2,673,598
$ 9,998,376
TOTAL, CURRENT ASSETS
7,324,778
2,673,598
9,998,376
CAPITAL, ASSETS:
Nondepreciable
421,272
-
421,272
Depreciable, net
1,037,083
-
1,037,083
CAPITAL, ASSETS, NET
1,458,355
-
1,458,355
TOTAL ASSETS
8,783,133
2,673,598
11,456,731
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable
52,250
-
52,250
Compensated absences
-
600,000
600,000
TOTAL. CURRENT LIABILITIES
52,250
600,000
652,250
NONCURRENT LIABILITIES:
Compensated absences
-
2,073,142
2,073,142
TOTAL NONCURRENT LIABILITIES
-
2,073,142
2,073,142
TOTAL. LIABILITIES
52,250
2,673,142
2,725,392
NET POSITION:
Net investment in capital assets
1,458,355
-
1,458,355
Unrestricted
7,272,528
456
7,272,984
TOTAL NET POSITION
$ 8,730,883
$ 456
$ 8,731,339
- 176 -
Schedule 17
CITY OF PALM DESERT
COM13INING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the year ended June 30, 2015
OPERATING REVENUES:
Miscellaneous
TOTAL. OPERATING REVENUES
OPERATING EXPENSES:
Maintenance and operations
General and administrative
Depreciation and amortisation
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING RIiV1;NUF.S:
Interest revenue
Gain on disposal of capital assets
TOTAL, NONOPERATING REVENUES
LOSS BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
CHANGE IN NFT POSITION
NET POSITION - BEGINNING OF YEAR
NE; I' POSITION - END OF YEAR
Equipment
Compensation
Replacement
Benefits
Total
$ 2,800
$ -
$ 2,800
2,800
-
2,800
9,065
-
9,065
-
63,704
63,704
247,720
-
247,720
256,785
63,704
320,489
(253,985)
(63,704)
(317,689)
21,108
-
21,108
11,720
-
11,720
32,828
-
32.828
(221,157)
(63,704)
(284,861)
-
8,160
8,160
1,220,000
56,000
1,276,000
998,843
456
999,299
7,732,040
-
7,732,040
$ 8,730,883
$ 456
$ 8,731,339
- 177 -
Schedule 18
CITY OF PALM DESERT
COMBINING STATEMENT OF CASI I FLOWS
INTERNAL SERVICE, FUNDS
For the year ended June 30, 2015
Equipment Compensation
Replacement Benefits Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers $ 2,800 $ - $ 2,800
Payments to employees - (82,402) (82,402)
Payments to suppliers (9,065) - (9,065)
NETCASH USED BY
OPERATING ACTIVITIES (6,265) (82,402) (88,667)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash received from other funds
NET CASH PROVIDED BY NONCAPITAI,
AND RELATED ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets
Proceeds on sale of assets
NET CASH PROVIDED (USED) BY CAPITAL
AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
NET INCREASE IN CASH
AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR
CASFI AND CASH EQUIVALENTS -
END OF YEAR
1,220,000 2,756,000 3,976,000
1,220,000 2,756,000 3,976,000
(469,318) -
(469,318)
24,300 -
24,300
(445,018) -
(445,018)
21,108 -
21,108
789,825 2,673,598
3,463,423
6,534,953 -
6,534,953
$ 7,324,778 $ 2,673,598
$ 9,998,376
(Continued)
- 178 -
CITY OF PALM DESERT
COMBINING STATEMENTOF CASH PLOWS
INTERNAL SERVICE FUNDS
(CONTINUED)
For the year ended June 30, 2015
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss
Adjustments to reconcile operating loss to
net cash used by operating activities:
Depreciation and amortization
Changes in assets and liabilities:
Increase (decrease) in compensated absences
NET CASH USED BY
OPERATING ACTIVITIES
Equipment Compensation
Replacement Benefits
Schedule 18
Total
$ (253.985) $ (63,704) $ (317,689)
247,720 - 247,720
- (18,698) (18,698)
$ (6,265) $ (82,402) $ (88,667)
- 179 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 180 -
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.
Av-encv 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.
- 181 -
ASSETS
Cash and investments
Receivables (net of allowance
for uncollectibles):
Assessments
Interest
Due from other governments
Prepaid costs
Restricted assets:
Cash with fiscal agent
TOTAL. ASSETS
LIABILITIES
Deposits
TOTAL LIABILITIES
Schedule 19
CITY OF PALM 13ESEIZT
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
June 30, 2015
Special
Treasurers Retiree Service Assessment
Agency 1991 Bond Act Stipend Fund Funds Totals
$ 1,772,907 $ 270,664 $ 2,344,796 $ 9,007,844 $ 13,396,211
84,632,764 84,632,764
- 3.053 3,053
420,471 143,995 50.4,466
- 4,208 4,208
- - - 7,363,290 7,363,290
$ 1,772,907 $ 270,664 $ 2,765,267 $ 101,155,154 $ 105,963,992
$ 1,772,907 $ 270,664 $ 2,765,267 $ 101,155,154 $ 105,963,992
$ 1,772,907 $ 270,664 $ 2,765,267 $ 101,155,154 $ 105,963,992
- 182 -
Schedule 20
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL, AGENCY FUNDS
For the year ended June 30, 2015
Balance Balance
July 1, June 30,
2014 Additions Deletions 2015
AGENCY
ASSETS:
Cash and investments
$
1.784,444
$
880,583
$
892,120
$
1,772,907
TOTAL ASSETS
$
1,784,444
$
880,583
$
892,120
$
1,772,907
LIABILI IE.S:
Deposits
$
1,784,444
$
880,583
$
892.120
$
1,772,907
TOTAL LIABILITIES
$
1,784,444
$
880,583
$
892,120
$
1,772,907
TREASURERS 1911 BOND ACT
ASSETS:
Cash and investments
$
270,664
$
-
$
-
$
270,664
TOTAL, ASSETS
$
270,664
$
-
$
-
$
270,664
LIABILITIES:
Deposits
$
270,664
$
-
$
-
$
270,664
TOTAL LIABILITIES
$
270,664
$
-
$
-
$
270,664
RETIREE SERVICES STIPEND FUND
S:
ASSETS:
Cash and investments
$
4,385,268
$
1,554,551
$
3,595,023
$
2,344,796
Due from other governments
456,102
420,471
456,102
420,471
TOTAL, ASSETS
$
4,841,370
$
1,975,022
$
4,051,125
$
2,765,267
LIABILITIES:
Deposits
$
4,841,370
$
1,975,022
$
4,051,125
$
2,765,267
TOTAL LIABILITIES
$
4,841,370
$
1,975,022
$
4,051,125
$
21765,267
(Continued)
- 183 -
Schedule 20
CITY OF PALM DE.SE..RT
COMBINING STATEMENT OF Cl IANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
(CONTINUED)
For the year ended June 30, 2015
Balance
Balance
July I,
June 30,
2014
Additions
Deletions
2015
SPECIAL, ASSESSMENT FUNDS
ASSETS:
Cash and investments
$ 9,025,537
$
7,493,764
$
7,511,457
$ 9,007,844
Receivables (net of allowance for uncollectibles):
Assessements
87,805,509
5,688
3,178,433
84,632,764
Interest
2,293
3,053
2,293
3,053
Due from other governments
192,427
143,995
192,427
143,995
Prepaid costs
4,208
4,208
4,208
4,208
Restricted assets:
Cash with fiscal agent
7,518,124
12,560
167,394
7,363,290
TOTAL ASSETS
$ 104,548,098
$
7,663,268
$
11,056,212
$ 101,155,154
LIABILITIES:
Deposits
$ 104,548,098
$
7,663,268
$
11,056,212
$ 101,155,154
TOTAL, LIABILTIES
$ 104,548,098
$
7,663,268
$
11,056,212
$ 101,155,154
TOTAL - ALL AGENCY FUNDS
ASSETS:
Cash and investments
$ 15,465,913
$
9,928,898
$
11,998,600
$ 13,396,211
Receivables (net of allowance for uncol)ectibles):
Accounts
87,805,509
5,688
3,178,433
84,632,764
Interest
2,293
3.053
2,293
3,053
Due from other governmets
648,529
564,466
648,529
564,466
Prepaid costs
4,208
4,208
4,208
4,208
Restricted assets:
Cash with fiscal agent
7,518,124
12,560
167,394
7,363,290
TOTAL ASSETS
$ 111,444,576
$
10,518,873
$
15,999,457
$ 105,963,992
LIABILITIES:
Deposits
$ 111,444,576
$
10,518,873
$
15,999,457
$ 105,963,992
TOTAL LIABILITIES
$ 111,444,576
$
10,518,873
$
15,999,457
$ 105,963,992
- 184 -
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2015
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
Theses 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, the property tax.
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 performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year. The City implemented
GASB Statement 34 in 2001; schedules presenting government -wide information include information
beginning in that year.
- 185 -
Governmental Activities
Net Investment in capital assets
Restricted
Unrestricted
Total Governmental Activities Net Position
Business -Type Activities
Net investment in capital assets
Restricted
Unrestricted
Total Business -type Activities Net Position
Primary Government
Net Investment in capital assets
Restricted
Unrestricted
Government Net Position
Governmental Activities
Net Investment in capital assets
Restricted
Unrestricted
Total Governmental Activities Net Position
Business -Type Activities
Net Investment in capital assets
Restricted
Unrestricted
Total Business -type Activities Net Position
Primary Government
Net Investment in capital assets
Restricted
Unrestricted
Total Primary Government Net Position
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
AU
2014
2013
473,722,694
466.246,732
465,756,172
475,457.375
302,757,128
135,900.520
140.460,575
132,741,798
119,736.419
147.648,424
71, 530,456
105, 537, 785
103,603,715
107,622.257
107, 314,002
681,153,670
(5) 712,245,092
702,101,685
702,816,051
0) 557,719,554
x.
....g,. �..... ;
71,129,743
72.009.184
72,892,200
73,375,634
74,043,419
4302 958
3,920.382
3,682,061
3901,816
4.068 623
751432,S1
75,929,566
76.574,261
77�i7,450
78,112b42
�.�
544,852,437
538,255,916
538,648,372
548,833,009
376,800,547
135,900,520
140.460,575
132,741,798
119,736,09
147,648,424
75,833.414
109.458,167
107.285.776
111,524.073
111,382,625
756,586,371
788,174,658
778,675.946
780,093,501
635,831,596
2010
20,09
2008
2007
m 2006
304,702,444
302,507,877
287.536,477
213,685.411
166,229,783
143, 394, 78 0
159.157, 317
161.360,654
173,335,615
153,342,045
110,918,145
113'�88�3�,303
120,089 �399
111,386,996
108.077,101
427,M,929
559.015,339
575,548,497
568,986,5$0
(3) 498,408,082
(2) Itii
67,902,786
68,263,719
62,814,656
62,956,911
63.233,079
4391.160
4,686 �8899
5,2l l,985
5,294,980
4,459,840
72�93,946
72,950,618
68,026,641
68,251,891
67,692,b19
3I2.605,200
370,771,596
350,351,133
276,642.382
229,462,862
143,394,780
159,157,317
161,360,654
173,335,615
153,342,045
115 309,305
118,570,202
125,301,384
116,681,976
112536 `941
63.309,285
648,499,115
637,013,171
avo,o ,its
495:341,648
(])The increase fur FY 2006 is due to issuance ofDistrict Bond, see Note 13.
(2)The increase for FY2007 is due to issuance of Dhoricr Bond, see Sole 13,
(3) The increase for FY2008 is due to Capital Contribution of Hwy 111 & Hwy 74 infastruciure totalling $30.19 million from the State of California.
(4) On February 1, 2012 the Slate 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,
(5) The implementation of GASB Statement No. 68 and Statement No. 71 resulted in a prior year restatement decrease of $37.73 million in the
governmental activities net positons, see Note Id and 8
City of Palm Desert
Changes in Net Position
Last Teti Fiscal Years
(Accrual Basis of Accounting)
Expenses
2015
2014
2013
2012 Eat
2011 (3)
Governmental Activities:
�..
General governmorA
16.5Q7,393
19.194 3,13
16,375,295
17.387,080
17,182,987
Puhik safety
32.077.635
29.339,106
28,614,153
28.037.453
26,601,668
Housing & Redevelopment (2)
11.666.724
7,852,611
6.944.033
10.519,663
15,976.383
Parks, recrealion and culture
8.598.242
8,327,402
8,752.623
6.033,019
7.337,403
Publicwarks
19,144.213
21.123.197
16,316,237
17,407.751
16.984,334
Payments to other agencies
-
-
16.994.265
39.418.936
lnterzst on long term debt
294,258
237.053
253.381
10.971.707
18,989,167
Total Governmental Activites Expenses
88.118,465
86.073,712
77,255,722
107,350,938
142,490,978
Business -Type Aclivili05:
Desert Willow Golf Course
8,433.267
8.452,001
8.655.754
8,471,567
7,946,063
Office Complex - Parkvlew
934,296
922 341
984,811
1,031 `1178
861.786
Total Business -Type Activities
9367.563
9,37Z,342
9640.565
9,502,745
8,807.849
Total primary government expenses
97,486,028
95,448.054
86,896,287
116,953.683
151,298,727
Program Revenues
Governmental Activities
Charges for services
General government
2,088,393
2,152,280
1,831823
1.805,442
1.921.573
Housing & Redevelopment
7,971,265
6,851,603
6,308,858
5,034.002
4,935,422
Public safety
9.987.891
10,239,886
11.147.297
9,041,801
9,825.352
Parks, recrealion and culture
772,728
729,076
898,222
728.721
768,786
Public works
1.832,241
2,180.877
768,775
826,251
762,015
Operating grants & contributions
7,512,894
9.745.609
5,676.028
7.411,902
5,675,777
Capital grants & contributions
19,297,015
21.086.051
7.733,439
2,309.678
2.255,393
Total Governmental Activites Program Revenues
49.462,427
52,985,382
33.566,442
27,157.797
26,144,318
Business -Type Activities
Charges for Service:
Desert Willow Golf Course
7.894,676
7,804.904
7,494.819
7.635.352
7.338.640
Office Complex- Parkview
1,306.042
1.254,521
1,215,660
1.222.971
1,217,985
Capital grants & contribulions
47.768
94,076
660 685
236,419
-
Total Business -type activites program revenue
9,248,486
9�153 501
9,371,364
9,094 742
8,556,625
Totai Primary Government program revenue
58,710.913
62,138,883
42,937.806
36,252,539
34,700,943
Net (Expense) I Revenue
Governmental Activites
(38,656,038)
(33.088.330)
(43,689,280)
(80.393.141)
(116,346,560)
Business -type activites
119.077
((2 0,841
��269:201
{{408,003
251,224
Total Primary Government Net Expense
(3$�3,115�
(3 ,3�9.171�
[g3,958,481
[80,601,14�
[716, 7.784
General Revenues & Other Changes in Net Pas it ion
Governmental Activities:
Taxes: (Combinew'Net Pass-lhrough)
41,931,997
39.952,738
38,742,060
73,105.614
114,880,586
Inveshnent Eamings
494.452
358,674
318.996
1,102,309
2.156.556
Conlributiona not restricted for specific purposs
-
-
791,256
762.588
Gain(loss) on sales of capital assets
11,720
488.319
-
-
-
Miscellaneous
1,726,007
1,994.506
3,8134,203
5.838.881
3,169.977
Refunding of special assessment debt
-
-
-
-
Transfers In I (Out)
437,500
437.500
437,500
440.000
(6,046,761)
Gain on Transfer to Successor Agency
-
-
-
144.011.578
-
Total Governmental Activites Net Revenues
44.501.676
43,231,737
43,392.759
225,289,638
114,924.90
Bustness•Type Activities:
Inve8lment Etimings
11,774
13.646
3.512
13,411
22,559
Gain(loss) oa sales of capital assets
47.938
-
-
-
Transfers Out
7,500�
(437,500)
{440r ]
6,00.6,?fit
TotalBuslness-typeaetivdtes
77,788
�.3437,5U0]
423,854
433,98 j
426, 9
6069,320
Total primary government223,968
42, 0,883
42,958,771
214, §,
120.994,266
Change in Nat Position .
Governmental Activities:
5.945.638
10,143,407
(296,521)
145,�6,497
(1,421,614}
Business -Type Activtee
(496.865)
(644,695)
(703.1891
1834,5921
5.818,096
Total ri gmmo
5A0,773
9.498.712
(999,710)
144,261,905
4,396.482
(i) Ilve Increase far FY2006 es dui u, U-1 d Funds received for capital improvement or the District known as Universlry Park anndAssessment 29. See Note 13,
(2)Ciry has changed the manner in "Ich if %wrls RDA expendunres. RDA and Hwoa, ing expenditures are being repvrted under
"Horning & Redevelapmenl".
(3) Required paymenr made to the State of Cal forma. For FY2010
nos f15,526,213 and FY 2011 xrrs $5.255.397.
(4) On Fehrvory 1, 2012 the Slate of California dissvhedMe City
ofPalm Desert Redevelapment Agency as
pert of the Statewide dissolution of all
City Redevelopment Agencies, xfpich in turn created she Successor Agency to the Red~1opinew Agency
of the Cay of Palm Desert.
For snore information on the dissolution of the RDA please see
Note 17 and 18.
187
City of Palm L7esert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Rasis of .Accounting)
Expenses
2010 t81
2009
2008
2067
2006f11
Governmental Activities:
jF
General government
16,701,292
17.328.291
21.953.229
11.659.965
13,276,549
Public safety
27,027,643
27,670,237
26.855.060
24,574,424
21.856,311
Housing & Redevelopment (2)
16,220,086
16.760.877
24,095,414
28.296.802
21.086.301
Parks, recreation and culture
7.312.679
7.210,706
8.013.211
4,996.692
4.243,119
Publicworks
19,900.937
22.036.017
27,245.937
37,091,612
13.894.980
Payments to other agencies
63.320,650
39,085,940
38,993,445
35.719.075
36,844,061
Interest on long terra debt
20.069,813
20,128,441
20,706,514
20,097.198
12,626,964
Total Governmental Act ivites Expenses
170,553,080
150,220.509
167,862,810
162.535,658
123,728.285
Business -Type Activities-
Dosart Willow Golf Course
7.',32,690
7,804.265
8.167,682
7.989.321
6,913,517
Office Complex - ParkView
875,394
852.746
649.548
716`592
646,769
Total Business -Type Activities
8.708084
8.657,011
8.817.230
8,705,913
7,560,286
Total primary government expenses
VU251,164
158,877,520
176.680,040
171,241,581
131 88,571
Program Revenues
Governmental Activities
Charges for services
General government
2,127,138
7,574,059
8.454.683
8,225,112
8.318.175
Housing & Redevelopment
4,986.066
-
-
-
Public safety
9,431,478
9,396.435
8.808,300
9.078.214
8.376,981
Parks, recreation and Culture
618,440
803.218
1,190,725
1.822.685
1,994.163
Public works
706,374
701,125
762,440
514.838
491,179
Operating grants & contributions
6.558,892
5.582.470
5,843,010
7.951,660
4,930.120
Capital grants & contributions
2.722.312
5,048.666
42.546.033
57i`132``742
51.780.221
Total Governmental Activites Program Revenues
27,150.700
29.105.973
67,604,191
3
84,7�5,241
75.890.939
Business -Type ActiyiLes
Charges for Service:
Aft
Desert Willow Golf Course
7.054,263
6,872,935
6,182,T41
T,830,863
7.442.330
Office Complex - Parkview
988.056
958,942
934.833
915,975
864.447
Capital grants & contributions
-
206,609
278,757
295,304
Total Business -type activites program revenue
8.042,319
7.831 ``877
9,324,163
9 025 595
8,602,081
Total Primary Government program revenue
35,193,019
38,937.E
76,928,374
93,)&,836
84,492,920
Net (Expense)!Revenue
Governmental Activites
(143,402.380)
(121,114,536)
(100,258,619)
(77,810,427)
(47,337.446)
Business -type activites
�665,765�
(JJZ,134
506,953
319,682
1.041,795
Total Primary Government Net Expense
(14 b �,145j
(127, ,670�
(99,751,666)
(77,490,745)
(46,795,631)
General Revenues & Other Granges in Net Position
;, i
Gavemntental Activities:
a 'f1
Taxes: (CombinedlNet Pass -through)
120,872,421
123.650.887
129.521,410
122,485,939
114,826,387
Investment Earnings
2.916,753
6.161.309
15,309,271
17.621,600
6,197.595
Contributions not restricted for specific purpose
644,603
613,648
7,240,770
-
-
Gain(loss) on sales of assets
-
-
Miscellaneous
2.382.208
2,912,180
6.369.028
10,790,417
7,025,216
Refunding of special assessment debt
-
-
_
_
Transfers In l (Out)
53.237
(5,661,521)
1.000,000
Gain on Transfer to Successor Agency
-
-
Total Governmental Activites Net Revenues
126.869,222
127,676,503
159.440,479
150,797,956
128,049,196
Business -Type Activities:
_
_87590
Investment Earnings
62.333
267,797
239.290
113598
Transfers Out
Total Bus insss-type
(53,237
56-61,621
000000(10)
5.2``203i
-
-
activites
Total primary govemment
9,093+�
126.81 .14
5�'ld9``111
133.425,614
1
158,±d8,276
239``290
151,037,24E
113,598
128.162,796
change in Net Position
Governmental Activi lies
i 16,533,' 58;
6.561.967
59181AW
72.987,629
80,211.752
Business -Type Activities:
Total
C`65fi,672J
89.830
4923977
1
2501
555,972
1,155\\393
primary government
117.
4f�5,944
58,9 610
13,548.501
81,367,145
(1) The lnerease for FY 2006 a due to Rund Funds recehrdfor copilal improvemeni at the Dierriel k"aww as Universiry Par* and Assessment 29. See Note 13.
(2)0ty has changed the manner in which it reports RDA expenditures, RUA and Housing expenditures are being reported under "Horaft & Redevelupmenr".
(3) Required pay meta made so the Stale of Ca4(�nia. For FY 2010 uv s 125,526.215 and F72011 xws $3, 253.397,
(4) On February I, 2012 she Swee a(California dEmolved she City of Palm Desert Redewinpinent Agency a part of the Statewide dissohdion of all
City RedevelopmelrrAgencies, ninth in turn neared the Successor Agency to the Redevelopment Agenrl, offhe City of Palm Desert.
For mwe information on she dWohnion of the RDA please see Nose 17 and 18.
188
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:
2015
2014
2013
2012
0
Nonspendable
10,312,261
7,745,320
7,678.250
2,926.739
2,939,850 (1)
Restricted
-
-
-
-
-
Committed
-
-
-
-
Assigned
1,771,278
4,425,423
3,224,761
3.297.152
4,501,159
Unassigned
67,727,130
66,203,203
65,311,919
69,438,971
66,776,414
Total General Fund
79,810,669
78,373,946
76.214,930
75,662,862
74,217,423
All other Governmental Funds-
Nonspendable
348
6,713
(5) 49,319,200
39,525,247
40,925,918
Restricted
106,261.212
114,194,435
is) 76,726,388
69,065,451
230,623,054
Committed
16,952,887
21,644,068
15,649,703
20,289.309
17,285,733 (3)
Assigned
24,172,531
24,429,824
14,144,969
17,552.726
19, 375,999
Unassigned
-
-
-
-
-
Total all other Governmental Funds
147,386,978
160,275,040
155,939,260
146,432.733 (4)
308,210,704 (4)
General Fund:
20D9
�-06�
Nonspendattle
9.676,961
11,629,364
11.897,843
22,199,914
21,231.046
Restricted
-
-
-
-
-
Committed
-
-
-
-
-
Assigned
4,044,421
3,654,300
4,406,391
2,998.204
6.114,813
Unassigned
63,847,586
59,066,988
63,515,054
50,916.281
48,004,509
Total General Fund
77,568,968
74,350,672
79,8192288
76,114,399
74,3502368
All other Governmental Funds:
Nonspendable
41,050,481
23,361,744
23,141,729
35,511,735
29,781,061
Restricted
260,163,043
296.323,735
299,960,611
318,529,973
147,669,565
Committed
8,871,910
4,559,739 (2)
18,487
9,000
Assigned
16,432.292
23,812,325
26,512,084
27,344,381
24,509,173
Unassigned
-
(2,392)
-
(55,684)
-
Total all other Governmental Funds
326,517,726
348.055,151
349.632,911
381,339,405
201.959,799
(1) RDA made payment on advances from the city.
(2) Start of new Energy program Mar loans residents funds for energy efficiency.
(3) RDA Low Income Housing fund rronsfer for Capital Asset replacement to the Housing Authority.
(4) On February 1, 2012 the State of California dissolved the Qv 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 ,tee Note 17 and 18.
(5) Advances to the Successor Agency reclassified from Non.spendahle to Restricted for Special Revenue Funds. For more informations please
note 9 and 18.
iBD]
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Reventre6:
2015
2014
2013
2012 fs1
2011
Taxes
52,571,369
50,464,511
50,768,200
82,901,921
124.672,062
Special assessments collected
3.058.766
3.486.220
3.654,337
3,232.923
3.262.163
License.%&perrlels
1,757.250
2.262,907
1,586,796
1,041.834
1.089.543
Intergovsrnmontalrevenues
18,981,304
7,380,744
5.097.892
6.637,426
7,605,282
Rental incorne
5,660.762
5,626,850
5,367.630
5.146,499
5,01 11 205
Charges for services
1.819.464
2,165,020
898,222
728.721
701.481
Investment Earrings
1,242,662
864,853
3T3,012
1,469,142
3,102.649
Fines & forfeitures
224.612
231.768
242,568
276,452
310.840
Miscellaneous
2,377,923
3,539,552
9,028,698
6,814,924
3,095.689
Contributions from other governnienl (4)
9.168
10,749,218
-
-
-
Contributions from property owners
-
420,590
-
-
-
Totat Revenues
87,703.280
87.192.233
77.017,355
108,249.842
148.850,914
Expenditures:
Genera; government 15,467i 74i 17,070,816 �:�20,252 15.II51.&53 15,273,085
Housing & redevelopment 9.349,021 6,650,178 5.650.666 8.942.097 18.033.576
Pass-through-agrearneint - - - 16,994,265 39.418.936
seeety
31,236,717
25,802.941
26,162,449
23,685.334
23,845.434
& culture
6,236,71T
5,802.9ai
6,162,aa9
3,885,334
901recreation
3,845,901
works
k
13,082,388
12.741.764
9.819,591
11.306,021
11,256A99
Mutions to property owners
49
2,350,187
-
-
aI outlay
19•:13U 9F7
Fi,273,822
2.788.676
9.575.227
14.205.889
ipal retirement
and fiscal charges
( Expenditures
(deli ci envy of Revenues
under) expenditures
ther financing sources (uses)
Transfers in
Transfers out
Extraordinary Gain I (Loss)
Sale of property
otal Doter fin aneing sources (uses)
�ttMtt```e'''t Change In Fund Balance
service as a percentage of nonce pitaI
V
».5�:•+. .^.:
67-1 XL,
318.000
9,032.707
22.914.707.
240.219
242.495
255.239
10.187.765
18.176.454
100,479,341
80,945,938
67,322,749
113,126,412
169,949,481
2.776.061) 6.246,295 9,694,606 (4,876,570) (21,098,567)
6.132,859 4.861,551 11.274.539 24,453.724 69.995.597
(6,971,359) (5,424,061) (11,010,550) (24.013,724) (70.555.597)
- (155,895,962)
2.163.222 911.001 - -
01AS1,3391 6594,796 9,95a595 (189.,332,5321 (21
130,655,949 134,060,581 140,331.466 130,272,454 131.303.483
assessmentscolleclq. _ , -_.- �- 3,182,549 2,759,444 2,060,791 929,348 289,036
s & Perrtail '` 782.271 1.383.778 1.453.177 2.691.486 2.685.415
ernrnenta3 raven 8,700,234 9.543.551 16.996.692 23.499.937 11,095,613
income
5,023.770
5.050.479
4,789.421
4,513,146
4,737,861
es for services
618,440
$03.218
1.190.725
1.822.685
1.094.163
ment Eamings
4.681.243
8,322,608
22,592,392
23.985,001
9,351,716
&forfeitures
FH
343,054
315.284
254.857
274.365
310,868
aneous
3,374.309
3,479.370
20,164.099
2.947,802
2,470,623
butians from pfoperty owners
0 y -
-
-
46 0•Ii16 92
42,979,973
Total Revenues
157,361.819
165.719,613
211,833.620
24�8d� 6
207,198.751
Expenditures:
General government
19,294,744
18,950,675
24.776,785
18,231,351
15,111,294
Housing & redevelopment
13,612,720
14.359,340
38,018,819
26,356,634
19,395,693
Pass -through -agreement
63,320.650
39,085.941
38.993,445
35.719.075
36.844.061
Public safety
26,882,787
26,906,123
26.677.743
24.550.431
21,715,373
Parks. recreation & culture
4,5M.505
5,122,900
4,572,695
3,921,063
3.304,867
Public works
13,971,797
16,241,963
22,936,721
33,925,623
11.103,943
Capital outlay
6:333:521
22:348:953
52:256:552
85:604:515
35.359:139
Debt service,
Principal retirement
Interest and fiscal charges
Total Expenditures
rs
Excess(deficiency of Revenue
over(under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Bond Proriurns
Bonds issued/Capital Accreation on bonds (2)
Payment rehEnded bond escrow agent
Sale of property
Total Other financing sources (uses)
Net Change In Fund Balance
QEbt service as a percentage of nencaMW
15.250.707 12.778.707 10.767,707 8,209,707 5,607,707
19.280 517 19,424,623 23,376,564 25,814,526 14,072,572
182,48r.M 175.2191,225 242,377.031 262,332,925 162,514,649
120.1
44.684.102
59.960402
68088,670
59,723,636
249249847
50,225,747
(59,520:402)
(67:649,434)
(58,723,636)
(249:249:847)
(50,225,747)
-
7,785,375
6,361,000
287.534.894
2,015,000
1,48006
(101,666,501)
-
-
47•000
5.230,000
3.360.030
6,801,000
2,454,1W•
2,531,84E
i9t3.89C3.768
%3604
(18.319.129)
17,046.3761
128,011.6051
181.403,359
48,044,132
1916%
21.1%
18.0%
19,3%
15.5I
(1)Bond — rx .1 ur FY 1006 and F!' 2007. See Nore H jar furrher implanorio,r•
(2) See Nate t8 ofrke Firn rrcial SYnrer or, included Cupirol Accnralion of Bonds.
(3J On Fehnuiry 1, 2012 the Swie of Colifmrrta Jagdvel rke Ciry• jPolm 4k,,eri Redervlopmenr Agency as prim of the Score-ide dissolution of all
Ciy Redevelopmenz Agencies. rhkb M ram crewed the Successor Agency to the Rederrlopmens Agency ofthe Car IPolm D—H.
For mare PrYmmalion on Ike dissolution of the RDA plc see- Note 17 and 18.
(4j In prior) ra .. City recanted contrilwtians from other got wnr, as mtmllencaras re roue.
190
Clty of Palm Desert
Graphs - Changes in Fund Balances of Govern menials Funds
LastTen Fiscal Years
(Modified Accrual Basis of Amounting)
Total Revenues
51WA00.000
ou'omb"el►min
S250,000'"
5200,0uD,0oo
■42)
$150.aDa,DOa
4 fnm�x..emnrMel m.rme.
510D,000,000
SSD,D00.D0D ■Lw�ema c r«mim
R � A A � � E � ■T�us aspecia nwam><nn
Total V%penditllr[•1
sloo,aw,000
S250.W,000
r Paka. mracm R.vMx
■PauIhr�u�AayemwM
5200,000,000
_.
o o.b PsJ,eodinue. [sf
5 ] 50,000,a00
■ cyrw wlay
S l oo,000.anu
oRb4c xun [al
SSD,P00.000
..,_�
� a
oPubae uJeq
SD
______-.
�Flowi�dc RNe•ebpmeM
gg
(1J Combawd Other is a combinwu of rental imow, tnvesr l l earaiW. and charges forserrires-
(2J Ahwrllraneaus Other is a combination of frets aml forefellures, mtsreilarawtrs, evntrrbnr ons firm orhrr ).vvcrnments, uin cvatriburinns rrun pr rrt� nn�nli-
(3) Debt Expewfilures is u _.binminn gklerestlfseal ehmges and grin jwl reriremenr -
(aJ Public wwL is a e biuotion of pubbe works and cuntrfbmivar to prryreny unne--
!vote Vrgp excluder Other flaoneing sources and uses.
191
City of Palm Desert
Supplemental - Historical General Fund Revenues
(Including Transfers In)
Last -1-cii Fiscal Years
FYI2015 20I47771'i0I3 2012 � 2011
Revenue Type:
Sales Tax
S 17,565,134 $
17,258,958 $
16,764,808 $
15,836,953 $
14,680,578
Transient Occupancy Tax
10,799,680
9,855,509
9,188,981
8,085,225
7,421,769
Property Tax (3)
9,710,990
9,041,428
9,529,018
7,976,494
8,341,728
111vestmcnt Earnings
416,656
405,456
126,206
408,661
793,461
Transfer In
2,179,472
1,373,786
2,127,655
2,240,703
2,691,634
Franchises
3,102,431
3,007,215
2,892,805
2,856,679
2,771,594
State SAventions (1) (3)
155,049
22,089
26,691
25,759
236,211
Building & Grading PCTnlitS
1,279,706
1,695,303
1,206,935
750,442
783,031
Rcirabursments (4)
1,604,707
1,809,323
1,868,804
2,535,977
1,971,505
Business License Tax
1,160,207
1,169,316
1,149,551
1,076,541
1,085,411
Timeshare Mitigation Fee
1,483,158
1,333,586
1,292,859
1,110,227
1,192,490
Plan Check Fees
505,370
662,893
500,698
275,728
317,332
Properry Transfer Tax...
S58,965
530,556
520,393
485,040
399,280
Othcr Revcnncs (21
1,713,758
1,932,009
1,961,314
1,398,669
1,475,154
Total General Re u
$ 52,235,283 $
50,097,427 $
49,156,718 $
45,063,098 S
44,161,179
2U� 1 M009j, { �&, 2008 1M_ a007 1 2006 (3}
Revenue Type
Sales Tax
$ 13,273,793 $
6,848,132
8,707,567
1,766,868
4,747,672
2,705,902
151,489
575,852
2,488,378
1,071,997
1,483,220
224,325
455,580
1,567,651
14,474,933 $
7,030,048
8,776,917
2,142,915
2,694,568
2,818,729
173,449
950,905
3,263,247
1,258,688
949,871
389,770
324,817
1,601,947
17,195,743 $
8,605,714
9,333,842
4,571,147
1,101,610
2,887,727
220,785
975,296
4,933,807
1,311,090
881,350
562,930
604,236
1,900,529
17,918,375 $
8,627,221
8,714,568
4,890,891
1,122,224
2,907,062
267,595
1,476,290
2,465,685
1,231,587
782,739
617,999
671,806
2,436,664
17,776,928
8,026,101
8,261,944
2,636,050
1,083,589
2,580,917
358,954
1,963,733
1,982,846
1,242,721
661,187
702,857
1,030,412
2,606,760
Transient Occupancy Tax
Property Tax (3)
Investment Earnings
ITran for In
l ranchiscs
State Subventions (1) {3)
F;uiiding & Grading Permits
Reitrmbursments (4)
Eat€sines: License Tax
Vimeshare Mitigation Fee
Plan Check Fees
Property Transfer Tax
Oilier Revenues (2)
Total General Revenue qM6J$ 46,068,426 13 46,840,703 I S 55,085,806 I $ 54,130,706 1 $ 50,914,999
(1) State Subventions is any combination of motor vehicle and o -highway in-lieus, 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
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
�n
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
■ Combined viner (1)
■Inl r t
■ Properly Tax
0Twisient Occupancy Tax
■ $ales Tax
P
0 0 0 0 N 0 o G o v
N N N N N N N f}V N N
LL- LL LL- LL- LL. U_ il. iL LL LL
(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property
transfer taxes. It also may include any combination of miscellaneous baits, 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 Ton Fiscal Years
1�1' 1 2015 1 2014 1 2013 1 2012 11. 1 2011 1
ublic Safety( l) $
18,784,1 17
$ 17,306,342
$ 17,002,291
$ 16,532,894 $
16,047,991
ity Administration (
7,561,255
7,413,578
7,180,519
7,670,377
8,023,314
ublic Works Administration
2,645,443
2,556,967
2,529,131
2,527,817
2,380,255
M-Millinity Promotions
749,631
618,138
575,119
526,804
497,366
tree[ Maitttenancc
2,631,590
2,806,168
2,353,655
2,446,854
2,522,117
wilding Safety
1,847,798
1,783,918
1,517,937
1,538,506
1,523,748
treet Resurfacing
998,463
4,466
1,179,743
2,332,968
2,268,901
«hlic Works (4)
1,067,837
1,018,435
1,505,018
1,056,998
1,354,255
ther Expenditures (3)
14,512,426
14,430,399
14,762,237
9,984,441
12,894,776
otal Expenditures
S
50,798,560
$ 47,938,411
S 48,604,650
S 43,617,659 $
47,512,773
IM 2010 1 2009 1 2008 1 2007 1 2006 I
Public Safety(]) $ 15,671,095 $ 16,266,052 $ 14,413,196 $ 13,404,056 $
12,323,448
City Administration (2) 8,556,627 10,076,543 9,861,106 8,588,341
8,410,706
F'uhlic Works .Adriiinistratiort 3,021,319 3,720,106 3,329,792 3,014,583
2,823,359
Community Promotions 990,505 1,748,860 2,532,637 2,402,435
1,687,148
Street Maintenancc 2,565,567 2,183,445 2,133,448 1,968,849
1,681,583
Building Safety `- 1,756,589 2,082,996 3,260,855 3,084,015
2,695,889
Street Resurfacing 708,006 1,115,721 3,342,542 1,192,629
1,277,554
Public Works (4) 1,278,983 1,552,242 1,348,012 1,204,079
1,117,417
Other Expenditures, (3) I 8,301,439 13,513,354 11,159,329 17,989,005
7,846,311
Total ExpenS 42,850,130 IS 52,309,319 I $ 51,380,917 $ 52,847,992 $
39,863,415
(I) Public Safety is any combination of animal regulation, police services, and traf c safety expenditures.
(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,
legistlative advocacy, retiree health and unemployment insurance expenditures.
(3) Other Expenditures is any combination of aquisitions, committees, contributions, community
development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center.
(4) Public Works is a combination of curb & gutter parking lot, storm drain, stripping, 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
SS0,000,000
$50,000,000
S40,000,000
$30,000,000
S20,000,000
s10,000,000
MC..bi.d (Ile ( 1)
MQty Aftin t—(Z)
6Puh1i S.f0y[3!
O C e O
(1) "Combined Other' is any combination ofstreet 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, retiree health and unemployment insurance expenditures.
(3} Other Expenditures is any combination of aquisitions, committees, contributions, community
development, marketing, unerfund transfers, parks, recreation and culture, extraordinary lass and visitor center
-
(4) Public Works is a combination of curb & guner,parking lot, storm drain, stripping, corporate yard
equipment, building maintenance, Par Iola Community center, storm %weer permit.
195
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2015 M014 2013
l
Total General Revenue (2) $ 50,055,811 5 48,723,641 S 47,029,063 5 42,822,395 $ 41,4692544
Population (1) 51,053 50,417 49,949 49,471 49,111
Generai Revenue Per Capita S 980 S 9" S 942 $ 866 $ 844
AULI-20'', 3U119 ,2008 J, 2007 2006
Toti l (_,eneral Revenue (2) $ 41,320,754 5 44,156,135 $ 53,984,196 $ 53,008,482 S 49,831,410
I'OPLII:nion (1) 52,067 51,509 50,907 49,752 49,539
General Revenue Per Capita S 794 S 857 S 1,060 $ I,065 $ 1,006
FYI 2015 1 2014 1 21
Total General Expettditu $ 46,302,187 $ 44,183,659 $ 42,155,428 $ 42,099,903 $ 4I,833,291
Population (1) 51,053 50,417 49,949 49,471 49,111
General Expenditures Per $ 907 S 876 S 844 S 951 $ 852
FY 2010 2009 2008 20[I7 2006
Total General Expenditures (2) $ 42,499,912 S 48,696.321 5 49,238,257 S 43,565,108 $ 38,488,367
Population (1) 52,067 51,504 50,907 49,752 49,539
General Expcntlitures 1'cr $ 816 S 945 $ 967 $ 876 S 777
(1) Population figures are as of Janurvy start offiscal year.
(2) Interfund Transfers WOW and extraordinary lass are not included in total.
Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department
d
THIS PAGE INTENTIONALLY LEFT BLANK
197
City of Pahn Ilcscrt
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Vears
Fiscal Year
Ended Junk 3Q• "
Residential
Commercial
Industrial
PeO a
Institutional
Property
Vacant Land
Less: Tax
Exempt
Total Taxable
ue
Total Direct
Tax Rafe
Estimated Actual
Taxable Value (1)
2015
9.636.181,445
2,290,456,630
54,211.991
420.142.932
(298.165,952)
13,552.997,813
1-00000
13.086.062.905
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
12,064,645.537
2012
8,694,403.021
2,198,729,088
50.256.665
452.309.984
(288,975.823)
12,564,166,215
1.00000
12,123,771.853
2011
8,902,403.643
2,179,940,065
52,528,676
564,683,270
(288,907.720)
13,132,169.069
1.00000
12,707,884.566
20i0
9.210.638.643
2,419,511,046
54.989.887
426.163.878
(274.944,437)
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
2007
8,931.447,910
7,684,439.737
143.634.396
639,825.947
(246,095,775)
13,057,672,383
1.00000
11,853,797.089
2006
7,911.643,803
1,368,116,067
165.117,456
483,558.265
(247,676.185)
11.794.104.029
1.00000
10,503.193,237
(U 8szi—red.4emul T able Value : Net Taxable Value
+Votes: Pre perry• T es in Rirerside CLunry — subject ru the Score of California's Propvsrawm 13. Jan•is-Gunn lmrimire xhie-h .Nuns ntyrpn+wls of real pnvpenty only
�V+en there is a chwge in aH-ersh+'p ar -e+e crmstnrcriun rakes plots. Further, the proposition limits prnpeny assessment increase ru mr murc than NO2'/.) percent
annually. Properly is as —d err rule lnmdJ glwcern (100%) of its fair m -ket value at the rime of rn— o-n—ri-- ur rh.nw in o+mership.
The lax we is one (1 %J perrem of the assessed whre-
Snares- Riwmide County Assessor rhm WDL Cure- & Cane
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 2006 to FY 2015
$20,000 -
$15, 000
$10, 000
$5,000
20.00%
15,00%
10.00%
5,00%
0.00%
-5.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Percent Increase in Assessed Valuation
FY 2006 to FY 2015
---w._. -------------------- ---------------------------- ------- ----------------------------- ----
° 10.63%
------------------------ ------------- ------------------------ -------- ----------------------------------
,29% 5.08%
3.22°%
-0.49%Q
2006 2007 2008 2009 10 2011 2012 013 2014 2015
-5.43 Io
4.70% -4.60%
Historical Major Additions
Annexations
FY
Retail Centers
FY
Cook Street Area
88189
Town Center Mall
83184
Country Club #28
93194
Desert Springs Marriott
86187
Price ClublCostco
93194
One Eleven Town Ctr
88189
Palm Desert CC #29
94195
Mervyn's Center
92193
Palm Desert Greens
04105
Desert Crossing
95196
Suncrest
04105
Lucky's/Albertson Deep Canyon
96197
Remodel 111 Town Ctr (Best Buy)
97198
Gardens on El Paseo
98199
Remodel Westfield Mall (Sears, Barnes & Noble)
04I05
Sears Automotive
04I05
Lowes Home Improvement
05106
Walmart I Sams Supercenters
05106
Kohls
07108
Golfsmith Extreme
08109
El Paseo Village
09110
Best Buy & Ulta
11112
Remodel Westfield Mail (pick's/H&MlRestaurants)
12113
PGA Tour Superstore
12113
Source: Riverside County Assessor thru HDL Coren & Cone
199
City of Palm Desert
Supplemental FY 2015 and 2014 Breakdown of Basic 1 % Property Tax Rate
Not In Redevelopment Project Area
acing Agency
aunty General
aunty Free: Library
ounty Structure Fire Protcction
ity of Palm Desert (1)
es, cut Sands Unified School District
esert Community College
iverside County Reg. Park & Open Space
iverside County Office of Education
esert Hospital
oacheila Valley Public Cemetary
oacltella Valley Recreation & Park
onchella Valley Mosquito & Vector Control
oaeheIIa Valley County Water
cache I[a Valley County Water Imp. District 80
oachelIa Val Ier County Water Storm Water Unit
,eneral Purpose Basic 1%
M' 2015 Rate
28,177327%
2.728242%
5.873086%
0.000000%
36,221587%
7.526714%
0A26231%
4.094919%
1.996809%
0.339927%
2.071624%
1.369698%
2.736607%
2.972906%
3.4643 24%
100.000000%
FY 2014 Rate
28.177327%
2.728242%
5.873086%
0.000000%
36.221587%
7.526714%
0.426231 %
4.094919%
1.996808%
0.339927%
2.071624%
1.369698%
2.736607%
2.972906%
3.464324%
100.000000%
(1) City ojPalm Desert is a No -Low Properly Tax City and the 7°%o represents what the state allocates to No -Low Property
Tax Cities.
Source: County of Riverside, Property Tax Allocation Percenlages, 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 I.D. 58
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
0.80000
0.00000
2012
1,00000
1.00000
0.11467
0.01995
0.08000
0.0M000
2011
1.00000
1.00000
0,10036
0.01995
0M000
0.00000
2010
1.00000
1.00000
0.08112
0.01995
0.06000
0.00000
2009
1.00000
1.00000
0.07990
0,01995
0.04000
0.00000
2008
1.00000
1.00000
0.07561
0.01995
0.04000
0.00230
2007
1.00000
1.00000
0.07613
0.01995
0.02080
0.01560
2006
1.00000
1.00000
0.07674
0.01995
0.02080
0.02520
Notes: Proposition 13 limits the ability of the city to raise the property tax rate.
Source: Cal Muni Statistics Inc
201
City of Palm Desert
Principal Property Taxpayers
Current Year and Ten Years Ago
2015 1 1 2006
Percentage of Total
Percentage of
Taxpayer
Taxable
City Tax Assessed
Taxpayer
Taxable
City Tax Assi
Assessed Value
Value
Assessed Value
Value
$ 144,751,735
142,417,301
101,110,901
94,636,672
85,231,391
1.10%
1.09%
0.77%
0.72%
0.65%
WEA Palm Desert
Marriott Desert Springs
$213,636,278
113,943,675
81,568,478
77,723,728
72,748,261
2.02%
1.08%
0.77%
0.74%
0.69%
Marriott Desert Springs
WEA Palm Desert
Gardens on El Paseo LLC
Desert Crossing Il
WVC Rancho Mirage
Elisabeth E. Stewart
Pru Desert Crossing 11
Gardens SPE If
LLC
57 712,366
0.44%
44,313,608
0.42°%
Walmart Real Estate
Marriott Ownership
Business Trust
Resorts -Timeshares
Marriott Ownership
Resorts -Timeshares
584 56,,.°/0
242
47,927,486
0 43
0.37%
J H Palm Desert
40,910,898
38,560,719
°
0.391°
0,37%
Segovia Operations
Big Horn Development
Monarch Sevilla Venture
47,585,410
0.36%
NGP Realty Sub
31,644,131
0.30%
Sunrise Spectrum
47,054,777
0.36%
PR XIV
31.029,800
0.29%
Total
$ 825,012.281
6.29%
Total
$ 746,079,476
7.07%
Nate. The estlmaled property tax revenue slated above is bused upon net taxable values, sox ratios and base year values that anpacr the revenue
calculation. As a resuh, parcels with the same assessed value that are assigned to dii erew tax rote areas may contribure dissimilar amounts
of total revenue to the City and Redevelopment Agency -
Source - 1k1L Caren & Cone rhru Riverside County Assessor- 14113 aml iIdL Caren & Cone thru Riverside County Assessor 05106
202
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Fiscal Year of the Levy (') i2' �s)
Year Taxes Levied Collections Total Collections to Date
Ended for the Percentage in Subsequent
Percentage
June 30, Fiscal Year P ou__nt_ of Levy Years Amount MM
of Levy
2006 4,318,880 4,243595 98.26% 75,285 $ 4.318.880
100.00%
2007 4,820,583 4.575.158 94.91% 245,425 $ 4,820,583
100.00%
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°% 282,856 $ 4,969,407
92.50%
2011 5,312,856 4.560.417 87.24% 216.378 $ 4,776,795
89.91°%
2012 5,478,345 4.366.461 79.70°% 188.685 $ 4,555,136
83.15%
2013 5,398524 4,913,780 91.02% 1.228,718 $ 6,142,498
113,78%
2014 5,623,740 6,048,787 89.78°% 497,554 $ 5,546,341
98.62°%
2015 5,911,501 5,523,658 93.44% 516,469 $ 6,040,127
102,18%
(l) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was
received in the fiscal year 1993194.
(2) City of Palm Desert is a No -Low Properly Tau City". Proposition 13 rolled the tax rates back to 1973
which is when the City of Palm Desert incorporated and lire Property Tax rates were zero.
Based on current state law the County allocates 7% of the 1 assessed values within the City less the
Redevelopment Agency tar increment. Fiscal Year 1992193 was the f rsi year to receive the NolLow taxes.
(31 Fiscal Year 199"7frnal total collected includes adjustments for No -Low property
tax collections from prior years madifeed by the County of Riverside. The County adjusted the payment to
the City of Palm Desert (FY 1995196) for the annexation of Palm Desert Country Club.
(4) Includes tax collections accrued as of June 30, 2013.
(5) Includes amounts receivable for tax year 2014-2015 along with prior receivables due far prior tax years.
Source: Riverside County Auditor Controller Office and City of Palm Desert
K*0193
Millions
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June X 2015
Top 25 Sales Tax Generators (1)
Primary Economic Category
ALBERTSON'S FOOD CENTERS
SUPERMARKETS
APPLE STORES
SPECIALTY STORES
ARCO AMIPM MINI MARTS
SERVICE STATIONS
BEST BUY STORES LP
APPLIANCE I EiECTRONICS
CIRCLE K FOOD STORES
SERVICE STATIONS
COSTCO WHOLESALE COMPANY
GENERAL STORES
J.C.PENNY COMPANY INC
DEPARTMENT STORES
JW MARRIOTT DESERT SPRINGS
HOTEL FOOD & BEVERAGE
KOHLS DEPARTMENT STORES
DEPARTMENT STORES
LOWE'S HOME CENTERS
BLDG. MATLS-W HSLE
MACY'S DEPARTMENT STORES
DEPARTMENT STORES
MARSHALUS STORES
APPAREL STORES
NORDSTROM RACK
DEPARTMENT STORES
PETE CARLSONS GOLF & TENNIS
SPORTING GOODS
PGA TOUR SUPERSTORE
SPORTING GOODS
SAKS FIFTH AVENUE
DEPARTMENT STORES
SAM'S CLUB
DEPARTMENT STORES
SEARS -ROEBUCK AND CO
DEPARTMENT STORES
SIMPLOT PARTNERS
SPECIALTY WHOLESALE STORES
STONELEDGE FURNITURE
HOME FURNISHINGS
SUPERIOR POOL PRODUCTS
SPECIALTY WHOLESALE STORES
TARGET STORES
DEPARTMENT STORES
TOMMY BAHAMA
APPAREL STORESIRESTAURANT
TOTAL WINE & MORE
SUPERMARKETS
WAL-MARTSUPERCENTER
DEPARTMENT STORES
(1) Lisxd m AIph.6eid Orde
Safes and Use Tax Trends FY 2006 - 2015
% = V. Charm from Pri°r Year
s sx
$17.0
-r59% t0 e�
—
asx -Ia Lieu
$13.0 —
$11.0
$9.0
$7.0
rD F+ 4 N r7 V Y1
O O p
N 1�V N car n N N N N N
I-1. 17.776 17.916 17.195 14.474 13.273 14.680 15.8 36 16.764 17.250 17-565
Note: Curren! California lawjnmhdhifs Pro4nomr of indibidrtal tut dntfimorion - on n nor ru dnfrvw on Prurrricrrrn
lmfarmartion. fhemfnre cnnfrdenflai d f rdon xltlrh is pruleried by 1ax•is not disclosed
The State of col ifomda exchanged Soler T R—.8 xirh P p YV cures, rhir omoanr tvj"ients the portion of sales far tone xrm exchawd.
sa.rre: ssnFtx,4 hramisertiMer 1cc. rr, ��8irrrr wain �,M sak £.R�1•Itop. ry• r �,, ctt Irn� ne,�rr
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector
2014
2013.
2005
2006
Apparel Stores
S 2,080,342
$ 1,956,390
$ 1.884.720
$ 1,738,84D
$ 1,682,35D
$ 1,341,860
$ 1,424,880
$ 1,592,070
$ 1,558,59D
$ 1,415100
General Merchandise
3,786,704
3,809,305
3,783,700
3,667.800
3,210,230
3,043.960
3,266.730
3.885,830
3,927,380
3,625,120
Food Markets
799,835
807.438
767.770
507,340
468,900
405,730
448,800
493,980
538,700
505,560
Reslaurants
2.725.634
2,561,784
2,377,780
2276,530
1,520,430
1.374,750
1,459,070
1.817.310
1.849,640
1.782,480
FurnitUrelAppliance
1.048.971
988,716
996.960
973,270
971710
974.150
11061,660
1.357,750
1,619,970
1,661.090
Bldg.MaN,,Who1e5;ale
1,128,350
1,113,345
984,810
882,170
730,230
582,410
865.640
956,330
697,730
732.280
Automotive
221.758
201,898
198,570
182,640
150.940
113.140
103,010
85,960
61,210
62,450
Servlce Stations:,
597.432
624,849
638,490
866.370
607,640
664,160
649,120
639,690
594.010
485,640
ether Retail
1.869.242
1.769,914
1,586,330
1.489,210
1,414,08D
1,857,220
2,180,050
2,829,730
2.958.300
2,813,880
Non -Retail (1)
1,681,430
1,498,793
1,455,190
1,262,170
1,822.270
1,856550
1,822,230
2,194,110
2,221,770
2,185,910
Totals $15.939,699 $15,332,432 $14.674.320 $13,846,340 $12,578,780 $12,213,930 $13,281190 $15.852.760 $16,027,200 $16,269,510
City direct sales tax rate 1.00 % 1.00% 1.00% 1,00% 1.DO% 1.00% 1.00% 1.0D% 1.DD% 1.00%
e1J Nun -retail are a mix ofmmrufacturers, distributors, builders andprofessionals selling direct to consumers.
Note: The combined safes tax rare far the City of Palm Desert is 7. 75% w*lch represents the Stare of California mandated tar rate
of 7.25%and 0. 5% additional salFv tax unposed by the County of Riverside.
The City of Palm Desert receives 1 %ofall sales tax generated within the City limits.
Source.' Munieervives LLC via California State Board of Equalizaiioa
IR
R
City of Palm Desert
Supplemental Prinicipal
Sales Tax Remitters
Current
and Ten Calendar
Years Ago
2005
2014
I
Industry
Tax Amount
Percentage
Tax Amount Percentage
General Merchandise
3,809,305
24.84%
$
3,625,120
23.74%
Other Retail
1,769,914
11.54%
$
2,813,880
18.43%
Non -Retail (1)
1,498,793
9.7B%
$
2,185,910
14.32%
Restaurants
2,561.794
16.71 %
$
1.782,480
11.67%
Apparel Stores
1.956,390
12,76%
$
1,415,100
9.27%
Furniture/Appliance
988,716
6.45%
$
1,661,090
10.88%
Service Stations
624,849
4.08%
$
485,640
3.18%
Bldg.Matls-Wholesale
1,113,345
7.26%
$
732,280
4.80%
Food Markets
807,438
5.27%
$
505,560
3.31%
Automotive
201,898
1.32%
$
62,450
0.41%
Totals $ 15,332,432 $ 15,269,510
(1) Non -retail are a mix of manufacturers, distributors, builders and professionals selling direct to consumers
Note. Current California law prohibits production of individual tar information as an effort not to infringe on proprietary
information, therefore confdential information which is protected by law is not disclosed
Source: Muniservlces LLC via California State Board of Equalization
q
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Primary Government
Governmental Activities
Business Type Activities
Special Assessmeml
Compensated Absences
Total
Fiscal
Local Obligation
Claims and Judgmen
Note
Capital
Primary
Year
ds
Payairle tr-.�le
�_ teases
Government
2006
2,919,327
736.242
170,493
3.826,062
2007
2,783,000 `
3,069.054
613.535
2,181,546
8,647,135
2008
2,748,000
3.324.537
490,828
1,582,782
8,146,147
2009
4.717,000 d
3,538,422
368,121
955,141
9.578,684
2010
10,095,000 °'�
3,062,201
245,414
328,273
13,730,888
2011
9,543,000
2.798.466
122,707
1.035.721
13.499,894
2012
9,238,000
3,268,224
-
2,291,358
14.797,582
2013
8,920,000
3,334,322
-
1,751,083
14.005.405
2014
8,246,000
3,713,172
-
1.222,915
13,182,087
2015
3,302,000 T
2,972,605
-
1,435,046
7,709,661
Fiduciary Activities
Special
Percentage
Fiscal
Redevelopment
Assessment
of Personal
Per
Year
Bands
Bonds s
income "Sp
Capita n.e
2006
245,000,000
73,855,000
15.38%
7,621
2007
421.819.894
119,610,000 '
25,79%
12,832 '
2008
412,694,700
112,615,000
21.87 %
11,132
2009
401.601,475
109,880,000
21.04%
10.840
2010
388,972,156
107,070,000
20,28%
10,561
2011
368,261,367
104,170,000
19.05%
9,356
2012
354527,796
101,155,000
18.17%
8,990
2013
339,786,269
98.035.000
17.19%
8,588
2014
317,717,317
86,385,000
15.64%
7,887
2015
301,004,341
83.170.000
14,47%
7,390
" - The city issued S50.31 million ofspecial assessment bonds in fiscal year end 2007 allocated to three separate assessment disiricm 1n addition the City's
Redevelopment Agency issued $284.37 in bnnds of which S183.15 was new debt.
° -Personal income, population and per capita information provided by California Department of Finance,
and U.S Census Bureau andlor estimated by City Finance using 1,5%growth rate.
Special Assessment Government Activities includes Highlands Undergrounding AD No# 04.01.
° - Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (larable) $2.5 million to fund the
Energy independence Loan Program. The actual Bond Issuance was far 52.015M
e 77re City issued S1.136 million "tars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Parable)
The special assessment collection will commence during the ftscaiyear 2010.2011.
f- In addition the Palm Desert Financing Authority issued S5.225 million dollars of the Energy lndependence Program Variable Rate Demand Lease
Revenue Bon&, Series 2009(Federally Taxable). On September 2, 2014 the bands were called in full.
g - Personal income and Per Capita statistic includes government, business, and fiduciary activities combined
Notes. Details regarding the city`s outstanding debt can be found in the notes to thefinancial statements.
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
Year Bonds Bonds Property Capita
Note: There is no General Obligation Bonds from FY 2006 to FY 2015
441:1
City of Palm Desert
Supplemental Special Assesment lnformatinn
June 30, 2015
IMArkt a tamu%Deseription
2 Q03 O]-O] Revenue
Bonds 94.3 Merano
2000
licvrnua Bo anode
Sih er Spur Ranch
gyitily
1:mirrterovnainr;'
20[14 R-Bonds
98-1
Canyons Oa; Bighorn
[:nmmunrry Pari[pies llisrrks
No. Z005.1 (Unirmha Park)
Sperial I'm Lands Scrirs 2006.E
2004-2 Sectiao 29
nsssssmrm DixMr!
1.I171ted Ot4lpl[on
Impr-cnwnt Bonds
13ond Issue Date
06r25413
0612103
02/19/04
05.-09.1%
312W2007
Final Maturity Date
09r02120
Q910228
09WM:
09/01/37
9111•24i7
H• nest [merest Rate
5.25%
5.375%
5. 100%
5,424%
5. Eoh7e
Bond Issue Anxwnt
S 1,153,000
S
2,340,000
S 2.955,000
$
67,915,000
S 29,4M.0Mt
Matured Principat
S 638,000
S
663,W
$ 1,360,000
S
8,42%0n
S 3,350,000
Called Prirx l
S 51"
5
160.000
S 1,305,000
S
6,110,000
S 2,305,000
Outstanding Bonds (4)
5 510,000
$
1.51%(m
S 290,t10t1
S
53,361o.(M
S 23,775.000
Redemption Premium
1.00°5
3.00%
3.001/.
3.0[t"o
3 WY
Original Parmis
121
201
97
37
707
Active Parcels
119
193
I0
67
666
Re yr Rsequircment
$ 61 J32
S
182,144
S Maw
5
4.107,784
5 1,762,360
Reserve Dalancp 14115
$ 149,260
S
204,078
S 94,M
S
4.158.178
5 1,926,930
Principal pue 15116"'
S 75.0m
S
80,000
5 65•4)l91
S
1,345,00o
S 590,000
Principal Levied I5116 pt
S 73,982
S
79,857
S 68,642
S
1.345,000
S 644,466
Interest Due [Site rr
$ 24,168
S
77,641
$ 12,786
S
2,762.784
S t, 172,360
Interest Levied 15116 t"
S 25,909
5
80,955
s 14,659
5
2.794,290
S 1,299,I8R
14115 Delinquency Rate
1-66%
i.53%
O-W4
4.07 %
5.11%
Arbitrage Installment Compmalian Mic-
90% Rebate Due
(1910Y19
12r :': IR
11161] R
O5r(Igll6
047! 1117
Arbitrage Yield Rate
6.672%
5.15ma
5,83861/.
5.3$99%
5.0134%
Arbitrage -Amount Owed
Continuing DmIosurc Last Report
Issued:
12+1Y2014
12+15,2OE4
12.f1512014
1215:014
12!1511014
Distriel NAmelDescription
Series 2008
Community Facilities
Distrki No. 91-1 Speela3
Tax Refunding Bands
Bond Issue Dale i2119l20Q7
Fiat Maturity Date
l evi no2o
highest Interest Rare
4-0-M
Bond issue Amount
S IQ,935,fg0
Matured Principal
5 7,203,000
Called Principal
Outstarnding Bonds'{r
S 3,73O,000
Redemption Premium
3.OQ34
Original Parcels (Parcels in District)
1.153
Active I'mco3B
1.059
Reserve Requirement
5 1,093.500
Reserve Balance 14115 r't
$ 1,726,Q46
Principal Due I51i6'''
$ I,o30,Ono
Principal Levied 15116 t"
S 110301000
Interesl Due 15i16r2r
5 118,483
Interest Levied 15116 t°
S 137,007
14,,15 Delinquency Rale
rL77%
Arbitrage Instalbnenr Cnnipuralpn Date:
90% Rebate Due
081091{6
Arbitrage Yield RAtc
3-8681%
Arhir-ge-Anxrunt Owed
-
Fontimiilig Diccklsurr East Report
Issued:
111512014
(1) Reserve Isalo res sire us of l3OV15.
(2) A--, repms us Psi i;smf d im—si mile•.-ird svring the FT14115 w roll jar Debr Smirc Paj-o doe is FT I-m-
(3)Leviedanmvntr rnRi",rv¢iaimewrsJommnrrracrimrJmtd.rewe fumkAvkmplionj.ultcsdashened)v:w-a.
(a) Ovisiawlmg bend bulrmn• of Jaon 30, MIS
($) Ae,crhrrb kPresents the 1rf rarofimi for —h i,vtiv+d 11-a ahligoffnn b—fed dirrrirr. Asseas-1 Lliso—t9
91.3 Alernnn mnl W-01 Silrsr Sjwr -e W .A•d and oblig med m pay Lh$f Servife to Series 2003 A.ursa l Res - &-ah
see rrnie 13Jor �Unlmwl in/om,dinn.
Sasrce: Wild— Fi—W1 Arcnuai Iteporl
M
2014/15 Assessed Valuation:
City of Palm Desert
Direct and Overlapping Government Activities Debt
]une 30, 2015
S 13,091,609,236
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT:
Total Debt 6/30115
Desert Community College District
S 308,619,492
Desert Sands Unified School District
267,444.474
Palm Springs Unified School District
354,019,218
City of Palm Desert 1915 Act Bonds
26,090,000
City of Palm Desert Community Facilities District No. 91-1
3,730,000
City of Palm Desert Community Facilities District No. 2005-1
53,360,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Riverside County General Fund Obligations
Riverside County Pensions Obligations
Riverside County Board of Education Certificate of Participation
Desert Sands Unified School District Certificates of Participation
City of Palm Desert Lang -Term Liabilities (3)
Coachella Valley Recreation and Park District Certificates of Participation
Coachella Valley County Water District, lD No. 71 Certificate of Participation
TOTAL GROSS OVERLAPPING GENERAL IFUN❑ OBLIGATION DEBT
Less: Riverside County Supported Obligations
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIESI
TOTAL CITY DIRECT DEBT (3)
TOTAL GROSS OVERLAPPING DEBT
TOTAL NET OVERLAPPING DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
City's Share of
% Applicable ((1)
Debt 6130115
19.235°%
S 59362,959
34.638%
92,637,417
4.296%
15,208,666
100.000a/a
26,080,000
100.00098
3,730,000
100.000°/
53 }60XG
$ 250379,042
$ 947,052,082
5.799%
$ 54,919,550
320,470,000
5.799%
18,584,055
1,935,000
5.799%
106,412
61,360,000
34.638%
21,253,877
7,709,651
100.000%
7,709,651
1,652,264
27.298%
450,870
0
0,000%
-
S 103,024,415
438,694
S 102,585,721
$ 590,976,112 0.273-100% 5 290,950,687
S 7,709,651
S 638,144,493
$ 637,705,799
S 645,854,144 (2)
S 645,415,450
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided
by the district's total taxable assessed value.
(2) Excludes tax revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bands and non -bonded
capital lease obligations that are not related to the City of Palm Desert.
(3) Includes special assessment debt with government commitment, limited obligation improvement bonds, lease revenue bonds, claims and judgements payable,
compensated absences payable and capital lease obligations.
Ratios to 2014-15 Adiusted Assessed Valuation:
Total Overlapping Tax and Assessmom Debt
Total Direct Debt (57,709,651)
Gross Combined Total Debt
Net Combined Total Debt
Ratios to Successor Aecncies Redevelooment Incremental Valuation
Total Overlapping Tax Increment Debt
Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department
1.91%
0.06"G
4.93 %
4.93%
S (8,323,244.851)
3.50%
City of Palm fh u n
Legal Debt Margin Inforluation
Last Ten Fiscal Years
Legal Debt Margin Calcuieti on for FIs"I Year 2015
Amssad Value
Dub(Llmil(15%of As k5e}li) 1,963,741,235
Dei]l Appkcable W Limit:
General OWigaticn Bgnd9 1,469,000
!- s , Am,bum Set aside for
fepayment pl general uhll"lw+
dohl
Tnial Debt AWimVa l0 Llm=-I -
Legal deW margin 5 1.962.252.235
FISCAL YEAR
2006 2001 200B 2009 2010
2011
2012
2013
2014
2015
hem Limit
1.582,592,579 1,783,572,979 1.971,408,152 2,076.172,690 1,999,731,410
1,969,825,360
1,884,624932
1.811.620.824
1,86sl.09.132
1,963,741,235
7 aLal Not.iebl applicable to limit
2,783,000 2,748.000 2,702.000 1,719.000
1.559,000
t,62a,000
1,589,000
1,526.000
1,469.000
I. ngal debt margin
1,582.592,579 1,780,789,979 1•%6,660,152 2,073.470,690 1,998,012,410
11988,167,360
1.883,000,932
1,810,031.824
1, 866. M. 1'J2
1.962.252.235
Total r4i WA applimele to the li mrt
as a pprcenlagn of detN Ii m•I
0.00% 0.16% 0.14% 0.13% ❑-M
0.05%
0.09%
0.09k
0.38%
0.08%
(!1 .>�'liorr 13005 gJlhr Cul�ralu Gnrrr,worv.r I nr1
Sorer: L:g inrnw AMnicl-1 9nllfN" 1-. $on F--i-
211
City of Palm DesW
Pledged -Revenue Coverage
Last Ten Fiscal Years
Special Assessment Bonds Tax Increment b
1.
Debt Service Debt Service
� Fiscal
Collections Principal interest Coverage CoUggops Principal
Interest Coverage
2006 a 2.788.698 1,645,000 1,378,548 0.9223 24.065,285 5,485.000
12,409,968 1.345
2007 4,444.967 1,972,000 3A64,355 0.8176 28,675.094 7,704,000
16.434.841 1.188
2008 6,245,888 1,635,OD0 5,414,793 0,8860 41,978,187 10.610,000
21.402.246 1,311
2009 ° 8,486.467 2.816.000 5,666,827 1A004 33,095,785 12,610,000
20,043,623 1.013
2010 a 6,304,563 3,793.000 5.615,677 U773 33,292,785 14,145,000
19,516,455 0.989
2011 9,695,868 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 ° 16,315.000
17,158,418 1.000
2014 t 14.895.214 12,324,000 4,954,432 0.8621 38,444,447 ° 23,650,000
14,794.447 1.000
2015 13,003.129 " 8,159,D00 " 4,543.692 1,0237 32.294,255 s 18,295,000
13,999,255 1.000
- The city issued 550.51 million of special assessment bonds in fiscal year end 2007, and an additional $17.915 in fiscal year end 2008 from the same district.
The RDA issued 3284.37 miflian vfdebt of x*ich $183-15 -w neu &bi.
s - Tar increment bands are backed by property tax increment based on calculation provided by the Riverside County tax assessor once.
Additional information on tax increment can be found in the notes to the financial statements.
` The 1997 91-1 Bands was refunded in full an April 1, 2008, with Communities Facilities District no. 91-I Impmvemem Special Tax Refunding Bonds
AMlional principal on note 13 reflects the total principal paid along work the refunded portion.
d The City issued $2.015 million dollars of the Energy lrr*pendence Program (AB811 Assessments) Limited Obligation Improvement Bonds (7axable)
The special assessment collection will commence during the fiscal year 2009-2010 xith the first interest payment paid on March 2, 20)0,
e The City issued S1.136 million dollars of the Energy . i:r ; ..., .. Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011
In addition the Palm Desert Financing Authority issued $5.225 million dollars of she Energy Independence Program Variable Rate Demand Lease
Revenue Bonds, Series 2009(7;-ederally Taxable}. Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment was paid on September 2, 2010.
f - A portion of the $50.51 (2007) and $17.915 (2008) million CFA 2005.1 (University Park) was prepaid in the amount of 56.269 Million. The prepaid
$6.269Mand $1.280 (2004-1) were called during on September 2, 2014.
8" The total amount payable for the bonded obligations is disbursed by the State of California Department of Finance to the City of Palm Desert Successor Agency.
The annual collection equal the annual obligations.
The City tailed the 15.225 Million Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable) in
full on September 2, 2014 in Ike amount of $4.485 Million. The Energy Fund used the rend ming $3.225 Bond Funds in Ike amount of $2.155 Million
in addition to the $2.5 Million loan from the City General Fund as proceeds to call the bands. The $2,155 million is included as collections.
I. The City of Palm Desert loaned the Energy Fund $2.5 Million to call the 35.223 Million Energy Independence Program Lease Revenue Bonds,
Series 2009 (Federally Taxable). The $2.5 Million is included as Special Assessment Collection.
Notes. Details regarding the outstanding debt can be found in the notes to the financial statements.
212
City of Palm Desert
Demographic & 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: Income CY Rate h Population (Decrease) Rate n
2015
51,053
1.3%
$
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
01%
$
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
166%
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%
2007
49,752
0.4%
$
2,132,710,348
$ 42,867
3.6%
2.031,625
4.01%
6.0%
2006
49,539
0,6°In
$
2.097,434,084
$ 42,339
2.9%
1,953,330
4,07%
5.0%
a - Personal Income estimated based on average growth rate of previous four years. The growth rare factor used was 1.5%. Income data will be
updated once the actual data is available.
b - Unemployment rale for fiscal year 14115 is based on annual information from State of California Employment development Department
Labor Market Information Division (not seasonally adjusted)
Sources: Stale Department of Finance, U.S. Dept of Labor, State Employment Development Department
213
City of Palm Desert
Principal Employers
Current and Ten Years Aga
20132
2004 '
Percentage of
Percentage of
Employer
Employees
Rank
Total City Employer
Employees
Rank
Total City
Entplo ment a
Employment
JW Mamot-Desert Springs
Resort e, DS Villas
2,304
1
BA5%
Universal Protection Services
1,500
2
5.31 %
Securitas-Security Service
USA
700
3
2.48%
Avida Caregivers-P.Desert
550
4
$.15°Io
Sunshine Landscape
500
5
1.77°/°
Bighorn Golf Club
250
6
0.88°/°
GostCo
250
7
0.88%
Westin Desert Willow
248
8
0.88%
Timer Warner Cable
236
9
0.83°/°
Marriott Shadow Ridge
208
10
0.74%
Totals 6,746 Totals - 0%
(1) The injormarion jor 2004 is not available, tracking jar this data began in 2006.
f2) As ofJune 30, 2015, infornialron was not available before going to press.
(3) Percentage of Total City Employment data used was Calendar Year end 2012, information for current year was not available before going to press.
Sources: Info USA com - Federal and Stale Government not included,
214
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2015
Citvl Municioai Government
Form of Government:
Council - City Manager/Charter City
Date of Incorporation:
November 26, 1973
Number of Employees:
113 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:
8,855 active business licenses
Number of Hotels & Rooms: 15 hotels, 2,298 rooms
CONTRACT SERVICES:
Police Department
Contract with Riverside County Sheriff - 74 positions plus 31 support staff
Fire Department
Contract with Riverside County/State Fire 58 positions plus 6 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 Coverecre
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 PIERS; choice of PPO, HMO, Kaiser, Blue Shield
Dental
Delta Dental
Vision
Vision Service Plan
Disability Insurance
❑isability - Standard Insurance Company
Life
Standard Insurance Company
Retirement
California PERS - Public Employees' Retirement System
Source: City of Palm Desert
215
City of Palm Desert
Full-time Equivalent City Government Employees by Function 1 Program
Last Ten Fiscal Years
Function 1Program 205.. .. 2014 2p13' 2012'` 2011' 2010 2009
2008
2007
2006
General Government
city 34 34 33 26 31 31 49
49
51
53
Economic pev & Housing13 13 12 17 24 25 19
19
19
19
Public Safety 26 25 24 24 25 26 35
35
35
28
Police & Fire 1) 169 173 157 162 155 151 148
146
143
129
Public Works 40 40 38 40 47 49 53
52
44
49
Totals 282 285 264 271 284 284 318
315
310
289
(1) The Cr{v Operates as a conowt city"uhlLing, primarily, agreement with other gowrnmearal en hies, private firms and imhviduals
To provide services -
Contracted services include: Police and Fire protection through the County Of Riverside, Ca! -Fire, animal conovl, health
sen•ices,
legal services and landscape maintenance -
As of June 2011 realignments were made due to budget cuts, retirements and layoffs, These continued to FY201J.
On February 1, 2012 the Stare ofCulifornia dissolved the Ckv of Palm Desert Redevelopment Agency as purr of the Statewide dissolution of all
City Redevelopment Agencies. which in uirn created the Successor Agenev to the Redevelopmene Agency of the City of Palm
Desert.
Source: City of Palm Desert Financial Plan, California Departrent of Forests)• and Fire Protection, Riverside County Sheriff's Department
MR
City of Palm Desert
Operating Indicators by Function 1 Program
Last Ten Fiscal Years
Function I Program 2015
1 2014
2013
1 2012
2011
2010
1 2009
1 2008
2007 1
2006
General Government
Business License. Inspo[:tions �14
3.3
196
177
515
473
is i7
49!:
4,l7
420
Contracted Services - Burrtec Waste (1)
Refuse 0011iected (iunr) 54,865
57,935
52,131
49,205
53,108
51,483
58.198
67,940
73,467
71.820
Recyclahies Collected 24,611
26.424
24,862
23,588
22,867
20,591
22,155
23,798
24,089
24,359
Public Safety
Physicaltrrasts
1,946
1,348
986
1,1172
1,134
1,342
1,446
1,550
1,430
543
Parking lloiations
794
j.
386
198
569
332
933
1,278
770
594
1,374
TraificViolatlons
5,525
5,284
5,080
6,216
8,360
10,200
9,162
5,929
6,875
4,527
Emergency Responses -Fire Department
8,628
8,235
7,907
7,151
7,720
7,772
7,149
6,908
6,785
6.600
Fires Extinguished
88
106
104
101
107
104
119
154
241
928
Fire Inspections
2,989
2,552
3,048
5,235
4,651
4,825
8,248
4,267
5,934
1,845
Bu+Ming Permits Issued
4,909
5,552
4,548
3.448
3,711
3,230
3,637
4,012
5,813
5,683
6wlding Inspections Conducted
24,057
24.83C
19.107
14,749
14,069
14,080
18,040
26,401
33,215
29,925
Public Works
Sireel Res;wfacing (miles)
(3) 8
34
23
60
5
8
13
17
rks, recreation & culture
Ath€alit Field Pe nIs Issued
4,430
6,548
2,fi35
3,682
8,050
6,281
6,149
5,949
t02,967
Amplrltheater! Pavilions Per[r0s. Issued
283
247
128
266
286
226
933
133Commumly
Canter Admissions
53,426
50,204
53,062
69,240
30,298
59,986
55,954
112,540
Aqualic Center Admissions
(21.64,103
43,545
48,663
45,909
4,329
}�
{1) The City operates as a "contract city" utilizing, primarily, agreement with other governmemal entities. Private firms and individrralc
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, animal caniral, health services,
legal services and landscape maituenauce.
(2) Aquatic Center operations began is June 2011. managed by the YMCA-
(3) New medrads of sneer resurfacing have Improved ericiency, tkemfore equaling more miles resurfaced.
Note: The City of Palm Desert chase to implement this schedule retroactively.
Coverxmems are eucuuraged, but not required, to implement retroactively. Ulumorely, this schedule will include tea years.
Sources: Riverside Cour#y Sheriffs Lkpf, Caltforaia State Department of Farestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burnet Warfe and The YWCA.
217
Wntracted Services (7)
COIlecwn IWCNS
ublic Safety - Police 8. Fire
Poly Sub 5lal*ns
Pa€�I L'nlgCars
Pa€icl Unis•Motorcr:les
fire strum
Fhv tacks
An-6yrarra
Frg P!a�e-I vR Pick-F pt
ubllc Works
54reefs fin
Traffic Synars
sties, recreation 8 culture
Pa e
Tplal Parks
'8asebBFl+4oft➢all damo•,ds
HccarYoOmall f ys
8ask9aSall iAads
.Tennis Courts
. IeyDe+f Ca,<ta
• CaeFmunRf Censers
SkaLeboa ] Park.
Aquatic Center (z)
"-lei 011fiee Space
1parnaa>w off" Com plax]
Eeaseable Spaco Fsgraey feat)
illpaocy Rare
#eambet o1'raraen6 nq type
Gow!nmem (Staig, ux al regional]
NOnh ford
Prlrale
are Pocuge?ease ty Ienam
Gouarnment tStala. local rapmnaFl
Npn-PrOf1
Prk'ale
vauw
Munlci pal Golf Course
(Deserl WiMcm Gv l Resa1)
courses - Fre Cldf and Mu tm, Vew
Hoes
Gdf Gaels
C:uhnwca spuafe loolage
Rounds pat Cuu
five Cliff
%%untain view
745ea1Anrwal PWrwa, .s
City of Palm Descrl
Capital Asset Statistics by Function 1 Program
Last Ten Fiscal Years
2013
2072
2011
2010
2009
2008
t 2M
2006
1 1 1 0 0 2 2 2 2 2
29 26 26 31 31 26 30 29 29 28
70 10 10 10 10 10 7 5 4
3 3 3 3 3 3 3 3 3 3
4 plus T Rsrvd 4 plus 1 %Fvd 4 plus 2 Rsrvd 4 plus 2 Rsmd 4 plus 2 Rsrvd 4 plus 2 Rsmd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd
r. plus 3 Rsrod 4 plus 3 Rsrvd 4 plus 1 Rsrvd 4 plus 1 RsFvd 3 plus 7 Spprt 3 plus 1 Spprt 3 plus 1 Spprt 3 plus 1 Spprt 3 plus 1 Spprt 3 plus 1 Sppn
3 3 3 3 3 3 3 3 3
170 170 170 774 759 150 T58 159 154.11 754-11
96 9B B8 98 97 99 99 99 87 85
Al, 20 2ol 201 201 201 212 200 200 200
t3
13
13
13
13
13
14
13
13
11
16
16
18
16
16
16
16
9
8
7
9
8
a
8
8
a
9
11
11
a
9
9
9
9
9
9
9
7
7
5
11
11
11
11
11
11
11
9
9
6
10
10
10
10
10
10
10
10
10
a
8
8
8
8
8
8
a
10
10
6
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
1
1
1
32.2
MA"
50-322
Win
60.322
50.322
50,322
60,322
50,322
W.322
50,322
991.:.
P.3%
9�',
97%
98%
100%
f00%
700%
8
10�
10
10
11
11
10
9
..
4
5
7
7
5
7
6
6
•
4
5
3
4
f+
7
6
8
8
30,907
31.921
91.321
32.021
32.696
34.6' 7
34,617
34 402
33.298
32.457
6,269
3.294
4,467
5,216
5.663
4.735
4,735
6,168
5.708
5.708
8.025
8.025
8.513
4,310
7.350
10.212
10,212
9,732
11,316
10.836
7.082
6.021
8,776
4,613
758
758
0
0
1.321
2
2
2
2
2
2
2
2
2
36
36
36
36
36
36
36
36
36
36
172
172
172
172
172
160
160
160
160
160
39-000
39,000
39,000
39,000
39,000
33.000
33.000
33,000
33,000
33,000
44.845
-0S.a4'
45.645
45,905
44.1•i5
.5.968
46-.041
46,686
47.263
4UO2
42.407
43,160
38.669
41.666
39,178
37.146
34,899
43,896
41.182
43,725
67,252
89.001
84.314
86,671
i
83 923
$3.134
80.940
90.586
88-445
90.327
(1)TheCW aperares usa avnrrurr ciry-Wd-mg,pi-MN, 09reenlenr-1h ocher gorrrnarnmi emiries, r-"efA wdmdliehro[s
ro pmvlde services.
Cenerocredmrvtrnr Aerlud" Poryce aM F'reprorea- rhrnrrgh the Coon&afRix kk. 1 Aedrh services.
legul aery md1.nbcpe-J.Mtwnee.
0)Aq"wCemcroperwionsbg-in-1- 2011
Non: The City pf Pdm DG n ckwe w implrmenr fhis schedule rern fiwly.
Gnuernmema urr vrrcorrrrrged 6w not required, [n WyNrnr¢wrrnrooctivaly. lAriraaeely, this schedule hill ierclnde yen
Sauces: Rivrrstde Cowrq•Siher s ❑epr., Cull ru Swm Dp_oa i ofForearrrd Fve Prorercrion.
Ci(v of Pdm D-M. Co 4*4 Kdf y Rrcrsn .- d P.* DtytricY, B1M Www
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 18 and note 19.
219
THIS PAGE INTENTIONALLY LEFT BLANK
220
1 y�
DIHAFI-Si10RE<R • T�
yGERAL•DFORD
Project Area No` 1.
original 16
1975
r
1
t
t
t
r
r M
V.
W
Project Area No, 1
Added Territory
1982
•
�
t
City of Palm Desert
Redevelopment
Agency
Project Areas
Project Area No. 2
1987 [
NTRY'CtUB-OR
_YINET_17___�
Project Area No. 3
'1991
----^^¢^-FREO riAfi IN G-GAS
v [
w jI
7E• _WY' I
R
h
x
FiOVL•EY-L-N•E
}}j Project Area No. 4 2
1993 =
a
3
w
w
x
}
P
ax
C
CAriroRWI
7+
-FRED•WARINGIOR
Project Area No. 1 - Original (1975)
0 Project Area No. 1 - Aided Territory (1982)
Project Area No. 2 (1987)
0 Project Area No. 3 (1991)
0 Project Area No. 4 (1993)
City Limits
N
W E
8
M�s
January 2015
221
IONALLY LEFT BLANK
222
City of Palm Desert
Project Area Statistics
June 30, 2015
Date Project Area was Established July 16, 1975 November 25, 1991 July 15, 1987 July 17, 1991 July 19, 1993
Most Recent Amendment Date December 9, 2004 December 9, 2004 December 9, 2004 December 9, 2004 December 9, 2004
Redevelopment Plan Limitations.
Effectiveness of Plan July 16, 2016 November 25, 2022 July 15, 2028 July 17, 2032 July 19, 2034
(Project Duration)
Repayment of Indebtedness
July 16, 2026
November 25, 2032
July I5, 2038
July 17, 2042
July 19, 2044
Last Date to incur indebtedness
Eliminated
Eliminated
Eliminated
Eliminated
Eliminated
Eminent Domain
July 16, 1987
November 25, 1993
July 15, 1999
July 17, 2003
July 19, 2005
Tax Increment Limit (1,2)
$ 758,000,000
S 500,000,000
$ 800,000,000
$ 360,000,000
S 600,000,000
$ 1,667,866,324
Bonded Debt Limits (1)
none
$ 200,000,000
$ 15010001000
$ 100,000,000
$ 135,000,000
$ 312, 724, 936
Types of Area in Project
R, C, P
R, C, P
R, C, P, ❑
R, 1, C, P
R, I, C, P
Acreage Size of Project Area
580
5,240
2,927
764
2,260
R = Residential, C- Commercial, P= Public Facilities, I= Industrial, O== Other
(1) Top figures are unadjusted limits and bottom figures are adjusted limits per Consumers Price Index set by the Bureau of Labor Statistics for RDA 2.
(2) 'Solely for the purposes of the payment of enforceable obligations defined by (Section 34 17 1 (d)( 1)(A) to (0) and Section 34191.4(b) of the Dissolution Act].
and For no other purpose whatsoever, a successor agency is not subject to the limitations relating to time, number of tax dollars, or any other matters set forth in
[Health and Safety Code] Sections 33333.2, 33333A, and 33333.6. Notwithstanding any other provision in this section, this subdivision shall not result in the
restoration or continuation of funding for projects whose contractual terms specified that project funding would cease once the limitations specified in any of
Section 33333.2, 33333.4, or 33333.6 were realized."
Source: Successor Agency to the Palm Desert ]redevelopment Agency
223
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2015
i:RIPTIOV
EW
Pk[]Jk{C'T IR1 :5 it
S22,070,000
Tax AIlae4nlion Bands
SI9,000,()(M
Tax Allocation Bonds
524,945,000
Tax Allocation Bands
56?,320,000
Toe Allocation
Revenue -
$-2,60D,DBn
Tax Allocation
Rkivenue
Bond
rs
28
03/13/02
04/01/30
5.100%
S 22,070,000
S 22,070,000
0-2.006/9
MBIA
2,804,344
(1)
-
-
1,114,665
5.2939%
-
04/13/17
27
08/05/03
04/01/30
5.000%
$ 19,000,000
5 12,660,000
0.000/0
MBIA
950,000
(1)
S
633,000
4,9571%
-
08/05/18
21
06/24/04
04/01/25
5,000%
$ 24,945,110D
S 14,050,000
0.00%
AMBAC
2,430,750
(1)
$ -
1,280,000
676,1D0
4,7961%
_
06/24/19
24
07106M6
04/01/30
5,820%
$ 62,320,000 S
$ 40,955,000 5
0.0(1%
MBIA
13,117,662
(1)
S - S
3,075,D00
2,093,410
4.7182%
_
07/06/16
1 1
01/09/07
04/01/18
5.000%
32,600,0(10
10,640,000
0.000/
MBIA
13,116,979
(1)
-
3,390,000
532,000
3,8374%
-
01/09/17
d Issue Date
1 Mdurity Date
St Interest Rate
Issue Amount
ceding Bond Antnumi
Pre:etium
d lnsurer
rvr RNuir,�n:ent i 1 }
veBalance (l1
d Boetds
i Ie due 15116
stDue 15i16
tage Field Rate
rlla a .amount C7wcd
ilage Five Year Due Date:
!' PROJECT AREA # „' PROJECT AREA 43
517,310,000 SI5,745010 S67,618,213 $15,059,526
DESCRIPTION Tax :1llocation Revenue Tax Allocation Rerenuc I Tax Allocation RB54,745,000
venuc Tax Allocal
Bids Bonds Bends '
Tax Allocafi m Bonds
,......
Band lssric Date
Final Malurity pate
Higllest Interest Rate
Bond Issue Amount S
Dulslandin Bond Amount S
Call Premium
Bond insurer
Reserve Requirement (1)
Reserve Balance (1)
Called Bonds
Princi le due 1 5.' 16
Interest Due 15,16
AThnl,,is:e Yield Rate
IArbuiWac five Year Due Dat,': I
20
30
30
30
35
07/17/02
03/26/03
07/25/06
08/05/03
07/25/06
08/01/22
08/01/33
08MI136
04/01/33
04/01/41
5.000%
5.00%
6.10%
5.13%
6.10%
17,310,000 S
15,745,000 $
67,618,213 $
4.745,000 S
15,059,526
8,690,000 S
15,745,OD0 $
54.744,520 $
3,450,000 $
15,660,598
0 - 2.00%
1 - 2.00%
0.00%
2.00%
0.00°%
MBIA
MBIA
AMBAC
MBIA
MBIA
1,324,750
769,006
5,3D9,825
297,953
1,034,250
(1]
(lJ
(1J
{1}
(1J
$
-
910,000
-
1,108,312
125,000
309,731
397,388
769,006
2,059,089
168,473
585,687
4,7043%
4.9502%
5,2580°%
4.9358%
5.3626%
07/17/17
03/26/18
07/25/16
08/05/18
07/25/16
S 1 1,020,000
$1.5,050)0 :n
DESCRIPTION
Tax Allocation Revenue
Tar Alltxation
J
B
Reymow.Bonds,
Years
30
30
Bond Issue Date
03/01/98
1112810I
Final Mantrity Date
10/01/28
10/0I/31
Tlighest latere:st Rate
5M09%
4.80%
Bond Issue Amount
S 11,Q�9\(100 $
15``695000 $
OutstandingBond Amount
S 7t 300 S
1265& $
Call Premium
0-2.00%
0-2.00%
Bond Insurer
MBIA
MBIA
Reserve Rc uirenicnt (1)
768,020
482,890
Rescn-e Balance t 11
(1)
(0
Called Bond;
S - $
$
Principle due 15,16
375 000
390.000
Interesl Due 15116
37375
567,323
Alblita�t 7'irld Rate
5. 271%
43464%
Arbrita=-Amount £1 w(A
I -
-
Arbritage Five Year Due Bate: 1 10/01/17 1,1129116
n 19,243,089
Tax Allocation
S 12.100,(100
Tax Allocation Revenue
$86,135,000
Tax Allocarim
28
30
20
07/25/06
09/05/02
02/07/07
10/01/34
10101131
IM I /27
5.56%
4.9096
5.D0%
i 3089
$ 12,100,M
$ 86,155`ODO
19.99323
$ 811S�C1,000
S 55t940.000
0.00%
1 -2.00%
0.0D%
MBIA
MBIA
MBIA
3,740,843
767,625
7,987.224
fl]
672,930
345,000
5,785,000
543,641
419,OD4
2,531 13
5.11ll°/q
4.9290%
4.1��0%
07/25/16
09/05/17
02/07/17
(1 ) A surety bond was issued by M13IA Insurance, future reserve balanceY will be u .
Source: City or Palm Desert and Successor Agency to the Palm Dtscrt Rede,clopmcnt Agency 224
City of Palm Desert
FY 2014/2015
Breakdown of Basic 1 % Property Tax Levy Rates
Redevelopment Project Areas
Rate
Ta►ing Agency
PA 1 Original
PA i Annex
PA 2
10:13.?
s ,
Cull try General
28.40332151%
28.32683755%
26.04201 100%
25.1871779°/°
21,91005870%
County LihrarV
2,75012086%
2.891313200/6
2.95876897%
M161. 111°%
2.828314060/o
County Firc
5.92018507 /0 °
6.22413338%
6.36934240°/0
6.0622453°/°
fi.08851192%_
C it orindian Wells Aims
y
0.00000000%
0.000006I4°/°
0.00000000%
0.00000000°/o
0.00000000°r°
Supervisor Road Distrier 4
0.00000000%
-0.00027184%
0.00000000°%
0.00000000%
0,00000000%
City of Palm Desen
0.00000000%
2.20753125%
5.58790590%
4.71489413/a
°
8.708061 fi5 /°
Rancho Mira
0.00DDD0DD%
0.01349827%
0.000000000/0
0.00000000%
0100000000%
re Asiitt.
Rancho Mira7Umified
0 000000�/0
°
0.02905772 /0
a
0.0DD00000/0
o
0.00000000/0
0.006D000D°k
i7cscr[ Shad. School District
36.51206707%
37.00881119°%
21.77605687%
37,38821897°%
37.55020485%
Paltn Springs Unified Schwl District
0.00000000°%
0.000000000/6
12.74456802°%
0,000DOOMo
0.00000000°%
1)cscrt commutaity C011ege
7.58707449%
9.04518231°%
8,16269710%
7,76913345°%
T80279603%
Coutny Superinteadettt of schools
4.12775781%
4.37699205%
4.44092575%
412680772°/a
4.24512296%
Riverside C:ounly Reg Nrk & Open
Spa"
A
0.42962931%
0.42824932%
0.39392943%
0.38099333°%
0.44186405%
Coachella Valley Public Cemetary
0.34265269%
0.30441522%
0.20436005%
0.35087138%
0.35239443°%
Palm Springs Pu61iC Cemelary I
0,00000000°/a
0,000271068
0.07557453°%
0.00DD0000%
0.00000000°/°_
Desert l lo+ itsl
P
°
2,01282095 /°
°
1.24640173 /°
1.75005305°/°
1.04484703°/0
0.00000000°/o
Coanhclla Valley ?Mosquito ti 1'c::a01
Control
1.38068159°/a
1,46404681%
1.49543170%
1.41381024%
1.41993740%
C oAdN6Ia 1 alley Recreation & Park
2.08823701°%
1,85520873%
1.24543927%
2.13834515%
2.14761069%
Coach el la Valley Water District
2.75855294%
2.92571752%
2.96784048%
2.82474586%
2.97407353%
Coachella Valley Rcsowre Cons.
0 00000000%
0.02168333%
0.03804847%
0,03070629%
0.03636989%
C:tx0ldla Valley Imp District 80
2.19479287°%
0.99411680%
0.0000DD00%
0.07519114%
0.00328433°%
Coachella Valley Wuter ' ' 1$tornt
Water Unit I
3.49210593%
1.60996250%
3.75704702%
3.57590101%
3.59239552%
L=RAF Et1] ' LkMMMj
0,00000000%
0.00000000%
0.00000000%
0.00000000°%
0.00000000%
Genera] 1'arppse Basic .I !RaNtoIODA0000000%
100.000000000/0
100.00000000%
100.000D0000%
100.00000000%1
Source: Successor Agency to the Paim Desert Redevelopment Agency, Tax Increment Calculations &. County of Riverside
RM
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Original
Last Ten Fiscal Years
>t'Y
2015
24I4
2013
2012
2011
ured: (1)
l -ittd
$ 252,708,144
629,461,646
3,118,529
(3,686,754)
(49,000)
881,552,565
S 248,856,920
616,377,929
4,011,017
0
(2,880,165)
(42,000)
866,323,601
$ 249,394,404
627,764,488
3,908,602
0
(1,999,569)
(42,000)
879,025,925
S 244,450,814
626,574,093
2,933,226
0
(1,960,491)
(56,000)
0
871,941,642
S 246,861,736
610,067,877
3,127,559
0
(895,957)
(61,600)
0
859,099,615
Irn rownients
- Personal Property
Penalty0
Less Other Exempt
Less Honzc 0%�mt:r Value
Less B Inv. Value
tal Net Assessed Taxable Secured Value
Land
1.386
1,386
99
99
99
lmpro�cmcttts
62,710,661
65,066,306
63,729,112
60,147,367
57,617,429
Personal Prnecrty
47,247,286
56,574,308
43,573,580
48,331,227
48,607,315
Penalt •
0
0
0
0
0
toss 011ie Exci np t
(350,545)
(210,855)
(223,222)
(64,730)
(63,954)
l Net Asscsscd'l'axahlc Unsecured Value
109,608,798
121,431,345
107,079,569
108,413,963
106,160,889
l tie€ Assessed J a x a h I e Value
5
991,16053 S
987,754,946 S
W16,105,494 S
980,355,605 $
965,260,504
x
FYI
2014
2009
2008
2007
Secured. (1)
Land
$ 249,715,896 S
241,759,729
$ 233,208,647
S 216,759,947
$ 209,051,600
In> provctncnts
6132769,221
610,061,698
584,395,005
552,604,613
515,092,610
Personal Property
3,399,575
5,000.717
4,856,393
62825.265
7,420,696
Penalty
0
0
0
0
0
Less 01hcr facmn
(898,089)
(455,200)
(1,570,949)
(760,295)
(610,338)
Less Hanm OwnCr Vahtc
(49,000)
(70,000)
(63,000)
(70,000)
(70,000)
Lass B Inv, Value
0
0
0
0
a
'Dotal Net Assessed Taxahte Secured Value
865,937,603
856,296,944
820,826,0%
775,359,430
730,884,563
Unsecured;
Land
99
1,267
1,245
1,220
396
hn rove,nc:tN
63,627,182
69,008,584
60,185,535
56,536,963
49,736,306
Porsonal propevy
53,892,307
60,792,341
57,684,012
57,404,440
47,480,402
Penalty
0
0
0
0
0
Less Other Exempt
J (68.471)
(66,749)
(56,785)
(32,652)
(32,573)
I'm aI Diet Assessed Taxable Un-wcured Value
117,451,117
129,735,443
1I7,814,007
113,909,971
96,I84,531
,Net Ass"%tA I asahle Valu
S 993,388,720 S
986,032,387
S 938,640,103
S 889,269,401
$ ' 827,069,099
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
226
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # I - Original
2015 versus 2014
red; (1)
[..and
lmproyeIttc3It5
Personal Property
Penalty
Less OtherExempt
Less Home Owner Value
Total Net Assessed Taxable Secured Value
Unsecured:
Land
Improvements
Personal Pr«Derty
Less Other FAMpt
Total Net Assessed Taxable Unsecured Value
Total Net Assessed Taxable Value
(1) Secured values include State assessed data.
2014
% Change
$ 252,708,144
$
248,856,920
1.5%
$ 629,461,646
$
616,377,829
2.1%
$ 3,118,529
$
4,011,017
-22.3%
S 0
$
0
0.0%
S (3,686,754)
$
(2,880,165)
28.0°%
S (49,000)
$
(42,000)
16.7%
$ 881,552,565 $ 866,323,601 1.8%
$ 1,386
$
1,386
0.0%
S 62,710,661
$
65,066,506
-3.6%
S 47,247,286
$
56,574,308
-16.5%
S 0
$
0
0.0%
5 (350,545)
$
(210,855)
66.2%
$ 109,608,788
$
121,431,345
-9.7%
$ 991,161,353
1$
987,754,946
0.3%
Source: County of Riverside, County Auditor Controller, Assessed Valuations
227
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Yeats
ured. (1)
Ladd
Im ruvc'tinettts
Personal Pro rt
Penalt
Less Other Exempt
Less Home Owner Value
Lass R Inv. Value
1 Net Assessed'I'a,xal)Ie Secured Vaht6
secured:
Land
Jul rovements
Personal Propertv
Yemah
=. Less Ocher L-aem t - ....
1 Net Assessed Taxable unsecured Value
I Net Assessed Taxahle Value
nred:(1)
Land
Im rovemenls
Persona! Property
Penalty
Less Other ExCm t
Less Home Owner Value
Less B Inv- Value
Total Net Assessed Taxahle SeeurM VaIuc
klasceured:
Land
Im rocements
Personal Prop",
Penalty
Less Other Exem t
Total :Set Assessed Taxable ()nsecurcd Value
Total Net:!! Wed Taxable Value
( I ) Secured values include State assessed data.
S 1,604,i25,337 S
1,54I,217,133 S
)A98,607,642 S
1,485,119.173 S
1,520,035,294
3,323,472,649
3,162,274,409
2,993,556,770
2,972,294.294
3,064,294"6
7.076,746
2,716,205
2,686.088
2,902,053
3,304.016
0
a
0
0
a
(102,129,288)
(103,135,553)
(93.807.367)
(92,647,477)
(89,778,462)
(26,242.138)
(26.742.256)
(27,231,0t5)
(28,318,713)
(29.088,641)
4,809,301306
4,576329,938
4.373,812,118
4,339,349.330
4A68,766,203
171,444
0
266.702
547
262,619
29,097,463
32,637.340
20,144.944
30,038,023
31.662,152
46,347,614
53,241,720
50.154,674
56,942.231
64.035,933
0
0
0
0
0
(5,274,099)
(8,199,594)
(8,262,749)
(4,756.840)
(3,119,713)
70,342,422
77,679,466
62,303,571
82.N3,961
92,840,"1
S 4,V3,645,728 S
4.654,009,404 S
4,436,115,689 S
4,421,573,291 $
4,%1,607,194
S 1,556,322,273 S
1,646.837,956 S
1,548,363,317 S
1.404,883,142 $
1,221,817,919
3,138,650,280
3,216,329.372
3,098,549,660
2,849,708.294
2,548,978,946
2,462,676
4295,752
4.850,231
5,159,912
5.081.062
a
0
0
0
0
(86.825,212)
(86,439,303)
(94.042.297)
(71,117,424)
(75,212.626)
(29,699,188)
(30.414,978)
(30,606,235)
(30,941,142)
(30,902,546)
0
0
0
0
4,580,910,829
4,750.608,897
4,537,114,676
4,156,692,782
3,669,762.655
623
56,456
714
781
0
33,207,261
37,501,662
36.438,940
38.277,529
33,710,942
59,544,019
67,485,677
62,971,014
57,326,123
51.779,049
0
0
0
0
0
(7,874,926)
(1066,822)
(7,990.591)
(3,164,410)
(6,306.859)
84,976,977 93,676,973 91,419,977 92,440,023 79,193,032
S 4.645,787,806 S 4,844,285,870 S 4,628,534,653 S 4,249,13I,805 S 3,748,945,697
Source: County of Riverside, County Auditor Controller, Assessed Valuations
228
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 1 - Amended
2015 versus 2014
FYI 2015
red: (t)
Land.
Personal Property.
Penal ty
Less Other Exempt
Less IIonic ❑wner Value
Total Net Assessed Taxable Secured Value
Unsecured -
Land
Personal Property
Penalty
Lcss Other Exempt
otal Net Assessed Taxable Unsecured Value
otal Net Assessed Taxable Value
(1) Secured values include State assessed data.
2014 . % Cha
S 1,604,125,337
$ 1,541,217,133
4.1%
S 3,325,472,649
$ 3,162,274,409
5.2%
S 7,076,746
$ 2,716,205
160.5%
$ 0
$ 0
0.00/0
$ (102,129,288)
$ (103,135,553)
-1.0%
$ (26,242,138)
$ (26,742,256)
-1.9%
$ 4,808,303,306 $ 4,576,329,938 5.1 %
S 171,444
$
0
100.0%
S 29,097,463
$
32,637,340
-10.8%
S 46,347,614
$
53,241,720
-12.9%
$ 0
$
0
0.0%
$ (5,274,099)
$
(8,199,594)
-35.7%
S 70,342,422 $ 77,679,466 -9.4%
S 4,878,645,728 1 $ 4,654,009,404 I 4.8%
Source: County of Riverside, County Auditor Controller, Assessed Valuations
W111
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area #1 2
Last Ten Fiscal Yeats
red: (1)
Land
im rovetuents
Personal Property
Penalty_�2)
Less Other Exempt
Less Home Owner VaItie
Less B Im. Value An
I Net Assessed Taxable Secured Value
Land
'j
Im rocement. �J
Personal Property
Other Exemptions Iq
Total Net Assessed Taxable t: nsecured Valuc
Total Net Assessed Taxable Value
FY
r-aLL.'nd
(1)
n xvvenlents
Personal Property
Penal (2)
Less Other Krem t
Less Home Owner Valtse
Less B Inv, Value
Total Net Assessed Taxable Secured Value
Unsecured:
I.,arid
ltn rovements
Personal Pro cr v x
Penalty
Total Net Assessed Taxable LnsecLedVE
Total Net Assessed T:trable Value
(I) Secured values include State assessed data.
2015 1
2014 1
2013
I
I'll
2D11M
�I
S 438,787,533 S
395,513,442 5
403,779,647 S
404,539,856 S
516,275,626
1.101,270,082
999.188,490
1,012,458.943
1,031,878,423
1,075,692,279
1,904,453
1.753,772
2,127,081
580,087
2,702,362
a
❑
0
0
a
(10,337.993)
(4,985,394)
(11,014,472)
(11,276,866)
(10,401,200)
(3,946.600)
(3,733,8❑0)
(3,662,400)
(3,697,400)
(3,750,600)
1,527,577,475
1,387,736,510
1,403,688,799
1,42I,024,100
1,580,918,466
0
7,777
4.719
0
14.688,768
15,098.894
11,308,677
18.513.172
9,474,802
27,758,561
28,706.626
26,904,564
38.744,589
28,314,673
(20,400)
(20,639)
(20,089)
0
0
42,426,929
43,784,881
38,2W929
57,262,479
37,70,475
5 1,570,004,404 S
I,431,521,401 S
1,441,889,728 S
1,479,286,579 S
1,618,307,941
5 566,073.734 S
633,335,921 S
597,058,715 S
521,34a,003 S
414,088,670
1,268,066,132
1,367,855,491
1,276,315,674
1,137,488,315
1,043,768,419
670,711
866,004
590,836
6,592.802
6,930.907
0
0
0
0
0
(8,919,361)
(7,964,045)
(9,550,463)
(7,655,394)
(3292,024)
(3,673,600)
(3,724,000)
(3,735,200)
(3,752,000)
(3,752,000)
a
❑
0
a
1,822,217,616
1,990,369,37I
1,850,679,562
1,654,013,736
1,457,743,972
0
2,542
0
0
0
14,071,375
18,201,638
5,343,621
6,215,099
4,187,472
34,842,003
29,865,376
20,391,298
19,806,419
12,129,847
0
0
0
0
0
48,913,378
49,069,556
25,734,919
26,021,517
16,317,319
5 1,871,130,994 S 2,03SA38,927 S 1,876,414,481 S 1,680,035,253 $ 1,474,061,291
Source: County of Riverside, County Auditor Controller, Assessed Valuations
2,30
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 2
2015 versus 2014
red, (1)
Land
Personal
Less Other Exempt
Less Home Owner- Value
I..ess R Inv. Value
Total Nel Assessed Taxable Secured Value
Unsecured:
Land
Personal Property
Other Exemptions
Total Net Assessed Taxable Unsecured Value.
Net Assessed Taxable Value
(1) Secured values include State assessed data.
l'N'[ 2015 1 2014 j % Change
$ 438,787,533 $
S 1,101,270,082 $
$ 1,804,453 $
$ 0 $
$ (10,337,993) $
$ (3,946,600) $
$ 0 $
1,527,577,475
395,513,442
999,188,490
1,753,772
0
(4,985,384)
(3,733,800)
0
I,387,736,520
$ 0 $ 0
S 14,688,768 $ 15,098,894
$ 27,758,561 $ 28,706,626
$ (20,400) $ (20,639)
42,426,929 43,784,881
$ 1,570,004,404 1,431,521,401
Source: County of Riverside, County Auditor Controller, Assessed Valuations
10.9%
10.2%
2.9%
0.0%
107.4%
5.7%
0.0%
10.1 %
0.0%
-2.7%
-3.3%
-1.2%
-3.1 %
9.7%
231
5ec;tred: (1)
Laud
Im roveuients
__Persona] Pr nen�
_ Penalty
Less Other Exempt
mess Home Owner Value
Total Net Assessed "taxable Secured Value .
Unsecured:
[wand
Ina . mvctnem.;
Personal Property
Pcnalh°
Less Other 1,xmpt
Total Net Assessed Tasahle unsecured Value
Total Net Assessed Taxable Value
Secured. (1)
Land d
Irn rovements
Personal Pro env
Pen aLty
Liss Other l xem t
Less Horne Owner Value
Total Net Assessed Taxable Secured Value
Unsecured:
a('
m Ind
Ir i lll�lll�� III I
nr ro�cmcnts M.
Personal Pro.en
Penalt
i.ess Other 1-xern t
Total Net Assessed Taxable Unsecured Value
Total Net Assessed Taxable V, lip
(I) Secured values include State assessed data.
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 3
Last Ten Fiscal Years
S 123,946,318 S
121,112,327 S
It7,624,411 $
119,303.599 S
123,098,378
388,823,244
376,571,063
367,800,719
379,322.839
392,121,646
3.670,712
3,866,036
3,626,212
3,461,707
3,523,812
0
0
0
0
0
(23,209,129)
(22,949,942)
(22,250,710)
(19,890,920)
(20,749,611)
(1,941,800)
(2,009,000)
(2,041,200)
(2,170,000)
(2,303,009)
491,189,346
47fi,590,484
464,759,432
480,027,225
495,781,225
0
0
0
0
0
7,676,397
15,830,833
7,241,041
7,844,983
8,768,007
23,241,633
27,963,384
31,467,777
45,527,343
70,315,349
0
0
0
0
0
(423,511)
(683,569)
(721,058)
(753,726)
(419,433)
30,494,719
43,110,648
37,987,760
52,618,"0
78,663,923
S 521,684,065 S
519,701,132 S
502,747,192 S
532,645,825 $
574,445,148
Fy1 2010
2008
S 125,790,120 S
134,147,217 S
119,422,958 $
114,253,170 S
103,496,559
424,745.043
419,977,238
375.240,496
333,347,161
299,197,384
5,011,721
3,309,454
3,629,771
3,993,071
3,890,560
0
0
0
0
0
(20,847,823)
(20,782,445)
(19,251,214)
(19,311,510)
(20,251,190)
(2,371,600)
(2,331,000)
(2,203,600)
(2,206,400)
(2,046,800)
532,327,461
533,319,464
47"39,411
429,975,492
383,296,513
0
0
0
0
370
14.220,568
18,796,505
17,795,034
13,109,332
12,424,095
54,874,036
45,622,109
45,542,975
44,899,884
33,091,911
0
0
0
0
0
(534,431)
(549,632)
(402,531)
(437,726)
(434,582)
68,560,173 63,868,982 62,935,478 57,571,490 $0,081,784
S 600,887,634 S 597,188,446 S 539,773,989 S 487,546,982 $ 433,368,297
Source: County of Riverside, County Auditor Controller, Assessed Valuations
0AN
h
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
233
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 4
Last Ten Fiscal Years
tired[1j
Land
lm ravements
Personal [wineltv €
Penalty (2)
Less Other axe m t �
Less Haim; Owner Value
Lela B Ins. Val tic
Total Net assessed Taxahle Secured Value
t secured:
Land
[m rovelnertl5
Penonat Pra elm
Penalt r2
01 Net :assessed Twiablc Unsecured Value
let Ai Nv)ged I axalile k alue
S6t1,713,113 S
527,295,299 5
505,988,799 S
506.713,567 5
535,851.149
1,296,687,161
1,223,955.322
1.179.416,036
1,199,159.939
1,239,148,331
3,4%686
3,546.358
3,507,597
3,132,280
3,145,190
0
a
0
0
0
(4,172,455)
(3,893,679)
(3,542,996)
(3,098,791)
(3,156,884)
(13,126,400)
(I3,491,900)
(13,911,800)
(14.345.800)
(14,940,000)
1,843,570,105
1,737,411,500
1,671,458,526
1969 3,561,195
1,760,147.796
0
0
26,524
34,446
0
948,724
U37,216
803,594
948.280
97L923
4,024,300
4.670,967
2,594,779
2,347,964
3,219,710
0
0
0
0
0
4,973,024
5,768,183
3,424,897
3,330,690
4,101.633
5 1,848,543,129 5
1,743,119,693 S
1,674,883,423 S
1,694.841,885 5
1,764,3394419
F
M2010
2009
2008
2007
20"
5e¢nred:(1)
Land
I1n
S 571,851.472 S
612.342.380 S
589,549,492
5 53&079P2
5 480,264,736
rovc]nents
1.2999/807.730
1,33 ,?0 248
1,340,102,309
1,253,230,590
1,145,343,698
PersonalPro e
I 3272,357
,22 M1
4,306,781
995,558
1,037,306
Penak (2)
0
0
0
0
0
I,css Other Exempt
(3,073.279)
(3,034,308)
(3,046,149)
(2,814,993)
(2,989,924)
Lc» Horne Clymer Value
(14,991,200)
(15,250,200)
(15,577,800)
(I5,797,b00
(15,874.G00)
Less B Inv. Value
rota[ Net Assessed Taxable Secured:Yalue
1,856,867,080
1,935,481.811
1,915,334,633
1,773,592,947
1,607,782,216
Unsecured-,
U111d
0
0
0
0
0
Lrr rowments
1,383,594
1,04,311
1,372,786
1,581,231
1,606,970
1'ersona[ Pro env
6,284,727
6,296,641
6.7I2.170
7,973,923
10,276,914
Pcnn)E 2)
0
0
0
0
0
Total Net Unsecured L'alu0
7,669,321
7,70%952
8,084,956
9,555,154
11,983,784
1'olaI Ntt AssessW -1 aaahit Value
S 1,8649535A81 5
1,943,182.763 S
1,923,419,589
S 1,783,148,101
S 1.619,666,000
[[} Secured valuesinclude State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
234
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 4
2015 versus 2014
FY
Y
$
$
$
$
$
$
5
$
$
5
5
ti
2015
560,713,113
1,296,687,161
3,468,686
0
(4,172,455)
(13,126,400)
0
1,843,570,105
0
948,724
4,024,300
0
4,973,024
1,848,543,129
$
$
$
$
$
$
$
$
$
$
$
$
2014
527,295,299
1,223,955,322
3,546,358
0
(3,893,679)
(13,491,800)
0
1,737,411,500
0
1,037,216
4,670,967
0
5,708,183
1,743,119,683
% Change
6.3°%
5.9%
-2.2%
0.0%
7.2%
-2.7%
0.0%
6.1%
0.0%
-8.5%
-13.8%
0.0%
-12.9%
6.0%
Secured:(].)
Land
Im . ro ements
Personal Pro erty
Pcnalt}
Less Other Exempt
Less Home Owner Value
Less 13 Inv, Value
Total Net Assessed Taxable Secured Value
Unsecured:
L itnd
linprovernents
Personal Property
Penalty
Total Net Assessed Taxable tnsecured Value
Total Net Assessed Taxahle Value
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
235
f
Ar
Gross 'l'ax increment
Less:
Housing Set -Aside*
SB 2557
(.Gross Pass-Throuchs
Vet Tax Increment
City of Palm Desert
Historical Tax Increment -
Redevelopment Property Tax Trust Fund Summary
All Project Areas
50,024,389
48,562,361
48,767,884
49,849,977
53,437,088
10,004,878
9,712,472
9,753,577
9,969,995
10,687,418
517,900
610,071
714,717
673,261
686,944
19,677,610
18,843,301
18,642,892
20,111,377
21,241,903
19,824,001
19,396,517
19,656,698
19,095,344
20,820,824
n/a 1
29,927,559 j
26,848,203
25,090,381 j
26,530,801
PMRt Area No. 2
FY 2010/11
FY 2011/12
FY 2012113
FY 2013114
Gross Tax Increment
15,435,043
14,335,941
13,700,701
13,330,978
15,232,096
Less:
Housing Set -Aside*
3,087,009
2,867,188
2,740,140
2,666,196
3,046,419
SB 2557
160,467
176,347
200,429
179,214
192,900
Gross Pass -Throe hs
5,806,404
5,381,108
4,983,714
4,967,602
5,665,961
Net Tar Increment
6,381,163
5,911,298
5,776,418
5,517,967
6,326,816
[PTTFAmount Deposited j
n1a
7,503,009
7,568,241
7,017,531
5,441,721
Project Area No. 3
FY' 2010/11
)FY 2011112
. ...............
FY 2012/13 .......x
2013114 1
IF ,15
Gross Tax Increment
4,294,063
3,847,543
3,575,242
3,721,868
3,754,999
Less:
Housing Set -Aside*
858,813
769,509
715,048
744,374
751,000
SB 2557
44,962
49,034
52,858
49,871
48,901
Gross Pats-]'hrou
1,983,494
1,671,676
1,277,864
1,377,700
1,371,796
Net Tax Insre '
1,406,795
1,357,325
1,529,472
1,549,923
1,583,312
IRPTTFAmount Depurited jai
n/a
2,088,5871
1,491,532 1
1,357,678
1,237,9301
Project Area No. 4 1 FY 10111 I V Y 2 1112 I FY 2Q12113
Gross Tax Increment 12,073,012 11,342,081 11,153,422 11,694,192 13,057,891
Less:
Housing Set -Aside*
2,414,608
2,268,416
2,230,684
2,338,838
SS 2557
125,648
143,002
164,046
156,818
Gross Pass -Throe hs
6,744,173
6,730,420
7,530,089
7,901,830
Net Tax Increment
2,788,612
2,200,243
1,228,603
1,296,706
RPTTF Amount Deposited
n/a
3,910,755
4,064,1051
3,675,4401
*For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution
2,611,578
166,634
8,381,422
1,898,257
3,071,966 J
236
To the Honorable City Council
of the City of Palm Desert
Palm Desert, California
We have audited the financial statements of the governmental activities, the business -type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Palm Desert (the City) for the year ended June 30, 2015. Professional
standards require that we provide you with information about our responsibilities under generally
accepted auditing standards, as well as certain information related to the planned scope and timing of
our audit. We have communicated such information in our engagement letter to you dated
March 21, 2014 and our meeting on planning matters on September 22, 2015. 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 Note 1 to the financial statements. As discussed
in Notes 1 d and 19 to the financial statements, the City has recorded the net pension liability, deferred
outflows of resources, and deferred inflows of resources related to the defined benefit pension plans
due to the adoption of Governmental Accounting Standards Board's (GASB) Statement No. 68,
"Accounting and Financial Reporting for Pensions" and Statement No. 71, "Pension Transition for
Contributions Made Subsequent to the Measurement Date, an Amendment of GASB Statement No. 68 ".
The adoption of these standards required retrospective application resulting in a $39,728,900 reduction
of previously reported net position in the governmental activities. No other accounting policies were
adopted and the application of other existing polices was not changed during the year ended
June 30, 2015. 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.
-1-
2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Oftos located in Orange and San Diego Caarnties
Significant Audit Findings (Continued)
Qualitative Aspects of Accounting Practices (Continued)
The most sensitive estimates affecting the City's financial statements were:
a. Management's estimate of the fair market value of investments is based on market
values provided by outside sources.
b. Management's estimate of the value of capital assets (infrastructure) is based on
industry standards.
c. The estimated useful lives of capital assets used for depreciation purposes are based
on industry standards.
d. The annual required contributions, pension expense, net pension liability and
corresponding deferred outflows of resources and deferred inflows of resources for
the City's public defined benefit plans with CaIPERS are based on actuarial
valuations provided by Ca1PERS.
e. 1he estimated net other post -employment benefit asset which is based on all
actuarial valuation provided by an outside consultant.
f. The claims liability for workers' compensation and general liabilities are based on
estimates by the claims administrators.
We evaluated the key factors and assumptions used to develop these estimates in determining that they
were reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. The most sensitive disclosure affecting the financial statements were
reported in Notes G and 10 regarding claims payable and risk management, Note 8 regarding the
defined benefit pension plan, Note 12 regarding other post -employment benefits, Note 17 regarding
recent changes in legislation effecting the dissolution of redevelopment agencies, Note 18 regarding
the Successor Agency disclosures, and Note 19 regarding the restatement of prior year financial
statements.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing
our audit.
-2-
Significant Audit Findings (Continued)
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 their to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were material,
either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management as 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 9, 2015.
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 governmental unit'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 governmental unit'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 the management's discussion and analysis, the schedule of
changes in the net pension liability and related ratios, the schedule of contributions - defined benefit
pension plan, the schedule of funding progress - other post -employment benefit plan, and the
budgetary comparison schedules, which are required supplementary information (RSI) that
supplements the 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 RS1 and do not
express an opinion or provide any assurance on the RSI.
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Other Matters (Continued)
We were engaged to report on the General Fund budgetary comparison by department, and combining
and individual non -major fund financial statements and schedules (supplementary information), 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 basic financial statements or to the basic financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the
financial statements but are not RSI. We did not audit or perform other procedures on this other
information and we do not express an opinion or provide any assurance on them.
Restriction on Use
This information is intended solely for the use of City Council and management of the City of Palm
Desert and is not intended to be, and should not be, used by anyone other than these specified parties.
Irvine, California
December 9, 2015
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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 W I T H GOVERNMENT A UDITING STANDARDS
City Council
City of Palm Desert
Palm Desert, California
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, the discretely presented component unit, each major fund, and
the aggregate remaining fund information of the City of Palm Desert (the City), as of and for the year
ended June 30, 2015, 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 9, 2015.
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 opinion 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 City'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.
-1-
2875 Michelle Drive, State 300, Inrine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offlas located in Orange and San Diego Counties
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.
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.
Z,)� A10-, d,,) &P
Irvine, California
December 9, 2015
WE
CITY OF PALM DESERT
APPROPRIATIONS LIMIT WORKSHEET NO. G
WITH INDEPENDENT ACCOUNTANTS' REPORT
ON AGREED -UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEET
FOR THE YEAR ENDED .TUNE 30, 2015
INDEPENDENT ACCOUNTANTS' REPORT
ON AGREED -UPON PROCEDURES APPLIED
TO APPROPRIATIONS LIMIT WORKSHEET
To the Honorable Mayor
and Members of City Council
City of Palm Desert
Palm Desert, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit
Worksheet No. 6 of the City of Palm Desert, California for the year ended June 30, 2015. These
procedures, which were agreed to by the City of Palm Desert, California and the League of California
Cities (as presented in the League publication entitled "Article XIII-S Appropriations Limit Uniform
Guidelines") were performed solely to assist the City of Palm Desert, California in meeting the
requirements of Section 1.5 of Article XIIIB of the California Constitution. The City of Palm Desert's
management is responsible for the Appropriations Limit Worksheet No. 6.
This agreed -upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of the
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:
I . We obtained the completed Worksheet No. 6 for the year ended June 30, 2015, and compared the
limit and annual adjustment factors included in that worksheet to the limit and annual adjustment
factors that were adopted by resolution of the City Council. We also compared the population and
inflation options included in the aforementioned worksheet to those that were selected by a
recorded vote of the City Council.
No exceptions were noted as a result of this procedure.
2. For the accompanying Appropriations Limit Worksheet No. 6, we added last year's limit to the
total adjustments, and compared the resulting amount to this year's limit. We also recalculated the
adjustment factor and the adjustment for inflation and population, and compared the results to the
amounts on Worksheet No. 6.
No exceptions were noted as a result of this procedure.
-1-
2875 Michelle Drive, Suite 300, Irvine, CA 92606 - Tel: 714.978.1300 - Fax: 714.978.7993
dices located in Orange and San ,Diego Counties
3. 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.
No exceptions were noted as a result of our performing this procedure.
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 appropriation limit for the base year, as defined by the League publication
entitled "Article XIIi-B Appropriations Limit Uniform Guidelines".
This report is intended solely for the information and use of the City Council and management of the
City of Palm Desert, California and is not intended to be, and should not be, used by anyone other than
these specified parties.
Irvine, California
December 9, 2015
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CITY OF PALM DESERT
APPROPRIATIONS LIMIT WORKSHEET NO.6
For the year ended June 30, 2015
Appropriations limit for fiscal year ended June 30, 2014 (see Note 2)
Adjustment factors for the fiscal year ended June 30, 2015 (see Note 2):
Inflation
Factor
(Note 3)
0.9977
Adjustment for inflation and population
Other adjustments (Note 5)
Total adjustments
Population
Factor
(Note 4)
1.0112
Appropriations limit for fiscal year ended June 30, 2015
Combined
Factor
1.00887424
See accompanying notes to appropriations limit worksheet No. 6
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$ 105,168,991
x 0.00887424
933,295
933.295
106.102.286
CITY OF PALM DESERT
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
For the year ended June 30, 2015
1. PURPOSE OF LIMITED PROCEDURES REVIEW:
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative),
California governmental agencies are restricted as to the amount of annual appropriations from
proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of
Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures
review in connection with the annual audit.
2. METHOD OF CALCULATION:
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the
appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87,
adjusted for the inflation and population factors discussed at Notes 3 and 4 below.
3. INFLATION FACTORS:
A California governmental agency may adjust its appropriations limit by either the annual
percentage change in the 4th quarter per capita personal income (which percentages are supplied by
the State Department of Finance), or the percentage change in the local assessment roll from the
preceding year due to the change of local nonresidential construction. The factor adopted by the
City of Palm Desert for the fiscal year 2014-2015 represents the annual percentage change for per
capita personal income.
4. POPULATION FACTORS:
A California governmental agency may adjust its appropriations limit by either the annual
percentage change of the jurisdiction's own population, or the annual percentage change in
population in the County where the jurisdiction is located. The factor adopted by the City of Palm
Desert for fiscal year 2014-2015 represents the annual percentage change in population for the
County in which the City of Palm Desert is located.
5. OTHER ADJUSTMENTS:
A California government agency may be required to adjust its appropriations limit when certain
events occur, such as the transfer of responsibility for municipal services to, or from, another
government agency or private entity. The City of Palm Desert had no such adjustments for the year
ended .tune 30, 2015.
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