HomeMy WebLinkAboutAudited Financl Reports - City - FYE 06/30/2014E7
CITY OF PALM DESERT X '
FINANCE DEPARTMENT
Staff Report
REQUEST: RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED
FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30,
2014
DATE: February 12, 2015
SUBMITTED BY: Paul S. Gibson, Finance Director
CONTENTS: 1. City of Palm Desert Audited Financial Report for Fiscal Year
Ended June 30, 2014
2. Auditor's Letter to City Council
3. Independent Auditors' Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
4. Appropriations Limit Worksheet No. 6
Recommendation
By Minute Motion, that the City Council receive and file the audited
Comprehensive Annual Financial Report (CAFR) for the City of Palm
Desert for the fiscal year ended June 30, 2014.
Committee Recommendation
The Audit, Investment and Finance Committee received the audited financial statements
at their January 27, 2015 meeting, and it was recommended that the statements for the
fiscal year ended June 30, 2014 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, 2014, 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, 2014, 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.
G:\Finance\Niamh Ortega\Staff Reports\Audit staff reports\Audit Staff Reports 2014\SR - Council audit 2014 CAFR.docx
Staff Report
Receive and file CAFR for Fiscal Year ended June 30, 2014
February 12, 2015
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 Reporting and on compliance and other
matters based on an audit of Financial Statements performed in accordance with
Government Auditing Standards.
The CAFR was submitted for the Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program's requirements, as it has for the past seventeen 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, 2014.
Fiscal Impact
There is no fiscal impact as a result of this action.
Submitted by:
Approved:
01
L_
Paul S. Gi so , Finance Director/City Treasurer
PSG:JLE:nmo
i"ohn M. Wohlmuth, City Manager
G:\Finance\Niamh Ortega\Staff Reports\Audit staff reports\Audit Staff Reports 2014\SR - Council audit 2014 CAFR.docx
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, 2014. 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
April 23, 2012 and our meeting on planning matters on September 23, 2014. Professional standards
also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects gf'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. No new
accounting policies were adopted and the application of existing policies was not changed during the
year. We noted no transactions entered into by the City during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their
significance to the financial statements and because of the possibility that future events affecting them
may differ significantly from those expected.
The most sensitive estimates affecting the City's financial statements were:
• Management's estimate of the fair market value of investments is based on market
values provided by outside sources.
• Management's estimate of the value of capital assets (infrastructure) is based on
industry standards.
• The estimated useful lives of capital assets used for depreciation purposes are based on
industry standards.
• The funded status and funding progress of the public defined benefit plan with
CaIPERS which is based on an actuarial valuation.
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Significant Audit Findings (Continued)
Qualitative Aspects gf'Accounting Practices (Continued)
Sensitive Estimates (Continued):
The estimated net other post -employment benefit asset which is based on an
actuarial valuation provided by an outside consultant.
The estimate of the deferred outflows of resources and corresponding liability on the
City's Interest Rate Swap Agreement is provided by an outside consultant.
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 6 and 1 1 regarding claims payable and risk management, Note 7 regarding the
interest rate swap agreement, Note 9 regarding the defined benefit pension plan, Note 13 regarding
other post -employment benefits, Note 18 regarding recent changes in legislation effecting the
dissolution of redevelopment agencies and Note 19 regarding the Successor Agency disclosures.
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.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during
the audit, other than those that are trivial, and communicate them to the appropriate level of
management. 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 November 17, 2014.
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Significant Audit Findings (Continued)
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 to management's discussion and analysis and schedules of
funding progress, 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 RSI and do not express an opinion or provide any assurance
on the RSI.
The General Fund and Prop A Fire Tax Special Revenue Fund budgetary comparison schedules, which
are required supplementary information (RSI) that supplements the financial statements, have 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 of the City or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America.
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.
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Other Matters (Continued)
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.
ZZ-P
Irvine, California
November 17, 2014
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INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTI IER MATTERS
BASED ON AN AUDIT OF FINANCIAL STA'FEMENTS PERFORMED
IN ACCORDANCE WITH GOVLRNMF.NTAUDITING STANDARDS
City Council
City of Palm Desert
Patin 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, 2014, and the related notes to the financial statements, which collectively comprise the
City's basic financial staternents, and have issued our report thereon dated November 17, 2014.
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.
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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.
Irvine, California
November 17, 2014
MR
CITY OF PALM DESERT
APPROPRIATIONS LIMIT WORKSHEET NO. 6
WITH INDEPENDENT ACCOUNTANTS' REPORT
ON AGREED -UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEET
FOR THE YEAR ENDED JUNE 30, 2014
INDEPENDENT ACCOUNTANTS' REPORT
ON AGREED -UPON PROCEDURES APPLIED
TO APPROPRIXYIONS LIMIT WORKSIiEET
To the I Ionorable 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, 2014. 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-B 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:
1. We obtained the completed Worksheet No. 6 for the year ended June 30, 2014, 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.
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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.
�Lir� teJ ` j1�t/ IL;� `euaxJ LLP
Irvine, California
November 17, 2014
-2-
CITY OF PALM DESERT
APPROPRIATIONS LIMIT WORKSHEET NO. 6
For the year ended June 30, 2014
Appropriations limit for fiscal year ended June 30, 2013 (see Note 2)
Adjustment factors for the fiscal year ended June 30, 2014 (see Note 2):
Inflation
Factor
(Note 3)
1.0512
Adjustment for inflation and population
Other adjustments (Note 5)
Total adjustments
Population
Factor
(Note 4)
Appropriations limit for fiscal year ended June 30, 2014
Combined
1.06181712
$ 99,046,238
x .06181712
6,122,753
6,122,753
105,168,991
See accompanying independent accountants' report on agreed -upon procedures applied to
appropriations limit worksheet and accompanying notes.
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CITY OF PALM DESERT
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
For the year ended June 30, 2014
1. PURPOSE OF LIMITED PROCEDURES REVIEW:
Under Article XIIIB of the California Constitution (the Cann 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 2013-2014 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 tiscal year 2013-2014 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 June 30, 2014.
See accompanying independent accountants' report on agreed -upon procedures applied to
appropriations limit worksheet.
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
ACCOUNTING TECHNICIAN II
James Bounds
ACCOUNTING TECHNICIAN II
Horacio Celaya
ACCOUNTING TECHNICIAN II
Sharon Christiansen
ACCOUNTING TECHNICIAN II
Diana Leal
For the Fiscal Year ended
June 30, 2014
Prepared by the Finance Department
City Treasurer/Director of Finance
Paul S. Gibson, CCMT
Assistant Finance Director
Jose Luis Espinoza, CPA
Finance Staff
(in alphabetical order by positions and names)
DEPUTY CITY TREASURER
Thomas Jeffrey
G.I.S. TECHNICIAN
John Urkov
INFORMATION SYSTEMS MANAGER
Clayton von Helf
INFORMATION SYSTEMS TECHNICIAN
Troy Kul as
ADMINISTRATIVE SECRETARY INFORMATION SYSTEMS TECHNICIAN
Niamh Ortega Ray Santos
MANAGEMENT ANALYST II
Jenny Barnes
OFFICE ASSISTANT II
Sylvia Carrasco
SENIOR FINANCIAL ANALYST
Anthony Hernandez
SENIOR OFFICE ASSISTANT
Claudia Jaime
CITY OF PALM DESERT
TABLE OF CONTENTS
JUNE 30, 2014
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
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2014
Page
Number
BASIC FINANCIAL STATEMENTS (CONTINUED):
Exhibit I - Statement of Cash Flows - Proprietary Funds 31
Exhibit J - Statement of Net Position - Fiduciary Funds 33
Exhibit K - Statement of Changes in Net Position - Fiduciary Funds 34
Notes to Basic Financial Statements 35
REQUIRED SUPPLEMENTARY INFORMATION
Schedule 1 - Schedules of Funding Progress:
CalPERS Defined Benefit Plan 121
Other Post -Employment Benefit Plan 121
Schedule 2 - Budgetary Comparison Schedule - General Fund 123
Schedule 3 - Budgetary Comparison Schedule - Prop A Fire Tax
Special Revenue Fund 124
Note to Required Supplementary Information 125
SUPPLEMENTARY SCHEDULES
General Fund: 127
Schedule 4 - Budgetary Comparison Schedule by Department - General Fund 128
Other Governmental Funds - Combininiz Statements: 133
Schedule 5 - Combining Balance Sheet - Other Governmental Funds 134
Schedule 6 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Governmental Funds 135
31
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2014
Page
Number
SUPPLEMENTARY SCHEDULES (CONTINUED)
Other Governmental Funds - Other Special Revenue: 137
Schedule 7 - Combining Balance Sheet - Other Special Revenue Funds 140
Schedule 8 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Special Revenue Funds 144
Schedule 9 - Schedules of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - Special Revenue Funds:
A. Traffic Safety 148
B. Gas Tax 149
C. Housing Mitigation Fees 150
D. Community Development Block Grant 151
E. Public Safety Police Grants 152
F. El Paseo Assessment District 153
G. Landscape and Lighting Districts No. 1-17 154
Other Governmental Funds - Other Debt Service: 155
Schedule 10 - Balance Sheet - Other Debt Service Fund 156
Schedule 1 1 - Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Debt Service Fund 157
Other Governmental Funds - Other Capital Projects: 159
Schedule 12 - Combining Balance Sheet - Other Capital Projects Funds 160
Schedule 13 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Capital Projects Funds 164
Agency Funds: 169
Schedule 14 - Combining Statement of Assets and Liabilities - All Agency Funds 170
Schedule 15 - Combining Statement of Changes in Assets and
Liabilities - All Agency Funds 171
ff
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2014
Page
Number
STATISTICAL SECTION
Description of Statistical Section 173
Financial Trends
Net Position by Component
174
Changes in Net Position
175
Fund Balances of Governmental Funds
177
Changes in Fund Balances of Governmental Funds
178
Graphs - Changes in Fund Balances of Governmental Funds
179
Supplemental Historical General Fund Revenues
180
Supplemental Graph - Historical General Fund Revenues
181
Supplemental Historical General Fund Expenditures
182
Supplemental Graph - Historical General Fund Expenditures
183
Supplemental Historical General Revenue and Expenditures Per Capita
185
Revenue Canaci
Assessed Value and Estimated Actual Value of Taxable Property
186
Historical Net Assessed Taxable Values Citywide and
Graph - Assessed Valuation Growth
187
Supplemental FY 2014 and 2013 Breakdown of Basic 1 % Property
Tax Rate Not in Redevelopment Project Area
188
Property Tax Rates Direct and Overlapping Property Tax Rates
189
Principal Property Taxpayers
190
Property Tax Levies and Collections
191
Supplemental Top 25 Sales Tax Generators and
Graph - Historical Sales Tax Trends
192
Supplemental Taxable Sales by Category
193
Supplemental Principal Sales Tax Remitters
194
Debt Capacity
Ratios of Outstanding Debt by Type 195
Ratios of General Bonded Debt Outstanding 196
Supplemental Special Assessment Information 197
Direct and Overlapping Government Activities Debt 198
Legal Debt Margin Information 199
Pledged -Revenue Coverage 200
iv
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2014
Page
Number
STATISTICAL SECTION
(CONTINUED)
Demographic and Economic Information
Demographic and Economic Statistics 201
Principal Employers 202
Supplemental Miscellaneous Statistics 203
Operating Information
Full-time Equivalent City Government Employees by Function/Program 204
Operating Indicators by Function/Program 205
Capital Asset Statistics by Function/Program 206
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION
Redevelopment Agency Project Areas Map
209
Project Area Statistics
211
Tax Allocation Bond Issue Information
212
FY 2013/2014 Breakdown of Basic 1 % Property Tax Levy Rates
213
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Original
214
Change in Taxable Values:
Redevelopment Project Area No. 1 - Original
215
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Amended
216
Change in Taxable Values:
Redevelopment Project Area No. 1 - Amended
217
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 2
218
Change in Taxable Values:
Redevelopment Project Area No. 2
219
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 3
220
Change in Taxable Values:
Redevelopment Project Area No. 3
221
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 4
222
Change in Taxable Values:
Redevelopment Project Area No. 4
223
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vi
I I I Y 01 P H I M OESERI
73-5 IO FREE) WARING DRIVE
}BALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346—o6 i i
info(a cityofpalmdcsert.org
November 17, 2014
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, 2014, 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 control 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,
2014, 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, 2014, 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, 2014, 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
CitLen, of the City of A Im De;en, Honorable M,iyo►-and Members of the City Council
November 17, 2014
PROFILE OF THE CITY OF PALM DESERT
Located in Riverside County in the geographical center of the Coachella Vallev. Palm Desert was
incorporated on November 26, 1973, as a General Law City. Fourteen years later, 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 November, 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
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.
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 17, 2014
The adopted budget for fiscal year 2013-2014 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 ECONONIY
The City comprises an area of approximately 26 square miles and, as of January 1, 2014, has a population
of 50,417 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 100 works of art on
permanent display throughout the city.
Palm Desert's active, five-star accredited Chamber of Commerce has more than 1,100 members who
work to promote, support, and enhance business prosperity, civic vitality, and the quality of life within
their community. Noted for its extensive array of retail options, including the world-famous upscale
shopping destination of El Paseo, Palm Desert is home to a variety of malls and retail centers including
Westfield Palm Desert, Desert Crossing, The Gardens on El Paseo, and El Paseo Village.
The internationally acclaimed Desert Willow Golf Resort, one of the nation's premier municipal courses,
boasts 36 holes of championship golf and stunning scenery in close proximity to first-class hotel
accommodations and fine dining.
In addition to being the home of the Coachella Valley's only community college, College of the Desert,
Palm Desert is the location of 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 4.9% compared to Riverside County,
which had a rate of 8.4%. The City's balanced foundation of tourism, culture, and education has
siren thened the City's labor force as the County tries to rebound from its current economic crisis.
111Y U PRIM OHI�I
/V
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 17, 2014
LONG-TERM FINANCIAL PLANNING
In June 2014 the City Council approved a total of $30.43 million in funding for various capital
improvement projects for the fiscal year of 2014-2015. Projects include traffic signals, sidewalk repairs
and construction, accessibility improvements, street widening, improving drainage areas, park
improvements, and improvements at Desert Willow Golf Resort.
Certificates of Awards for Outstanding Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Palm Desert for its
comprehensive annual financial report for the fiscal year ended June 30, 2013. This was the 17th
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.
Acknowledgments
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,
7,
;J hn M. Wohlmuth Paul S. Gibson
( /City Manager Director of Finance/City Treasurer
JLE: jle
r 0 k
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Palm Desert
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2013
*4�w 0�A*-.0
Executive Director/CEO
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XI(
CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2014
City Council - Manager Form of Government
CITY COUNCIL
VAN G. TANNER
Mayor
SUSAN MARIE WEBER
Mayor Pro-Tempore
JEAN M. BENSON JAN C. HARNIK
Council Member Council Member
CITY ADMINISTRATION
JOHN M. WOHLMUTH
City Manager
City Attorney - Best, Best & Krieger
Director of Finance/City Treasurer
ROBERT A. SPIEGEL
Council Member
David J. Erwin
Paul S. Gibson
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
JOHN M. WOHLMUTH
Executive Director
x1v
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, 2014, 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.
-1-
2873 Nhchclle Dri'Ve, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
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, 2014, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, the schedules of funding progress and budgetary comparison
schedules, as listed in the 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 management's discussion and
analysis and the schedules of funding progress 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 management's discussion and analysis and the schedules of funding progress
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance. The budgetary comparison schedules have 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 of the City 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 budgetary comparison schedules are fairly stated
in all material respects in relation to the basic financial statements taken as a whole.
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.
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.
-2-
Other Matters (Continued)
Other Information (Continued)
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
November 17, 2014, 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
November 17, 2014
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-4-
CITY OF PALM DESERT
MANAGEMENT'S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Palm Desert's financial performance for the fiscal year ended
June 30, 2014 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 $788.17 million (net position).
• The City's governmental activities net position increased $10.14 million, and the net position of
the business -type activities decreased $0.64 million.
• During the year, the City's revenues were $95.77 million and expenses were $86.07 million in its
governmental activities, excluding transfers, compared to fiscal year 2013, where expenses were
$0.74 million more than revenues.
• In the City's business -type activities, expenses were $0.20 million more than the $9.17 million
generated in green fees, merchandise sales, rental income and other revenues compared to the
prior year, where business -type activities revenues were $0.27 million less than its expenses.
• The City's governmental activities program revenues and general revenues increased by
$19.25 million, or 25.16 percent from prior year, while program expenses increased $8.81 million,
or 11.40 percent from prior year.
• Business -type activities revenues decreased by $0.20 million, from $9.37 million to $9.17 million.
Expenses decreased by $0.27 million from the prior year.
• The revenues available for expenditures were $1 million more than budgeted in the General
Fund. The City kept General Fund expenditures within spending limits by $2.23 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.
See independent auditors' report.
-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:
Govemmental 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.
Govemmental 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.
See independent auditors' report.
KIM
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.
THE CITY AS A WHOLE
The City's combined net assets increased $9.50 million from $778.67 million to $788.17 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.
See independent auditors' report.
-7-
TABLE 1
NET POSITION
(IN MILLIONS)
As of June 30, 2014 and 2013
Governmental
Activities
Business -Type
Total
2014
2013
2014
2013
2014
2013
Current and restricted assets
$ 281.52
$ 258.23
$ 4.82
$ 4.78
$ 286.34
$ 263.01
Capital assets
466.25
465.76
73.23
74.64
539.48
540.40
TOTAL ASSETS
747.77
723.99
78.05
79.42
825.82
803.41
Deferred outflows of resources
$ 0.02
$ 0.10
$ -
$ -
$ 0.02
$ 0.10
Long-term liabilities
outstanding
11.96
12.25
1.22
1.75
13.18
14.00
Other liabilities
23.59
9.74
0.90
1.10
24.49
10.84
TOTAL LIABILITIES
35.55
21.99
2.12
2.85
37.67
24.84
Net position:
Net investment in capital
assets
466.25
465.76
72.01
72.89
538.26
538.65
Restricted
140.46
132.74
-
-
140.46
132.74
Unrestricted
105.53
103.60
3.92
3.68
109.45
107.28
TOTAL NET
POSITION
$ 712.24
$ 702.10
$ 75.93
$ 76.57
$ 788.17
$ 778.67
1,200
1,000
800
.5 600
400
0 200
0
Table 1 - Graph
Total Assets & Liabilities
2014 2013 2014 2013 2014 2013
Governmental Business -Type Total
Activities Activities
■ Total Assets
Total Liabilities
See independent auditors' report.
The City's governmental activities net position increased by 1.44 percent, or $10.14 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 14.82 percent of the
overall total net position. Unrestricted net position increased $1.93 million from $103.60 million in 2013 to
$105.53 million in 2014. This is an indication that the City's Governmental Activities financial position
recognized an increase from prior year. The City has $1.93 million more of unrestricted funds that can be
used to finance its operations. The increase is attributable to a raise in sales sax and transient occupancy
tax.
The increase in restricted net position of $7.72 million was due to the following: restricted capital projects
decreased by $3.69 million due to capital projects expenses; restricted special projects increased by
$11.41 million. The majority of the increase is attributable to Low and Moderate Income Housing Asset
Fund held by the Palm Desert Housing Authority. On May 15, 1991 the County of Riverside Superior
Court entered final judgment on consolidated actions, Indio Case Nos. 51123 and 51143 (the Judgment),
requiring the former Redevelopment Agency to use at least 20% of its tax increment, if necessary, to
develop, rehabilitate or otherwise financially assist a certain number of affordable housing units and to
meet certain affordable housing needs of the City. To implement the Judgment, the former
Redevelopment Agency and the Housing Authority entered into a Housing Cooperation Agreement in
2005, which was amended in 2008. Under the Housing Cooperation Agreement, former Redevelopment
Agency agreed to develop certain affordable housing units and the Housing Authority agreed to renovate,
rehabilitate and repair the designated affordable units, with the entire expense of the renovation,
rehabilitation, and repair of the affordable units to be borne by the former Redevelopment Agency. The
Successor Agency is required to continue to pay all enforceable obligations of the former Redevelopment
Agency that existed prior to dissolution. Accordingly, the Successor Agency has included the Judgment
as an enforceable obligation on all Recognized Obligation Payment Schedules. The current year
requirement for the Judgment and the corresponding amount deposited with the Housing Authority totaled
$9.16 million.
Investment in capital assets increased $0.49 million. The calculation of Investment in capital assets
includes outstanding debt used to purchase or construct the City's capital assets. Major additions
included infrastructure projects that include street widening and traffic signals and a contribution of land
and buildings from the Successor Agency, which was approved by the State of California in the amount of
$6.39 million (see Note 5).
The net position of the business -type activities saw a decrease of $0.64 million, from $76.57 million to
$75.93 million. The main factors for the decrease in net position were the transfer out and depreciation
expense. Total liabilities decreased $0.73 million from $2.85 million in 2013 to $2.12 million in 2014.
The City's governmental activities total assets and deferred outflow of resources increased from $724.09
million in 2013 to $747.79 million in 2014. The increase is attributable to $15 million of bond proceeds
transferred by the Successor Agency pursuant to a Bond Proceeds Funding Agreement Regarding
Portola Avenue/1-10 Interchange Project. The Agreement is by and among the Coachella Valley
Association of Governments, the City and the Successor Agency. Pursuant to the Agreement, $15 million
of bond proceeds was deposited into an account from which the City can make draws to pay the Local
Share of the Portola Avenue and Interstate 10 interchange project.
Total liabilities increased by $13.56 million. There was a $0.29 million reduction due to the retirement of
debt, and an increase of $13.85 million in other liabilities. The increase in other liabilities represents the
$15 million of unearned revenue for the future interchange at Portola and Interstate 10 that will be
recognized as the interchange is being constructed.
See independent auditors' report.
-9-
TABLE 2
CHANGES IN NET POSITION
(IN MILLIONS)
As of June 30, 2014 and 2013
Governmental
Business -Type
Activities
Activities
Total
2014
2013
2014 2013
2014
2013
REVENUES:
Program Revenues:
Charges for services
$ 22.15 $
19.96
$ 9.06 $
8.71
$ 31.21 $
28.67
Operating grants and
contributions
9.74
5.88
-
-
9.74
5.88
Capital grants and
contributions
21.09
7.73
0.10
0.66
21.19
8.39
General Revenues:
Property taxes
9.57
10.05
-
-
9.57
10.05
Transient occupancy tax
10.06
9.35
-
-
10.06
9.35
Sales tax
17.29
16.42
-
-
17.29
16.42
Other taxes
3.03
2.92
-
-
3.03
2.92
Investment earnings
0.36
0.32
0.01
-
0.37
0.32
Gain on sale of capital assets
0.49
-
-
-
0.49
-
Other revenues
1.99
3.89
-
-
1.99
3.89
TOTAL REVENUES
95.77
76.52
9.17
9.37
104.94
85.89
EXPENSES:
General government
19.19
16.38
-
-
19.19
16.38
Housing and redevelopment
7.85
6.95
-
-
7.85
6.95
Public safety
29.34
28.61
-
-
29.34
28.61
Parks, recreation and culture
8.33
8.75
-
-
8.33
8.75
Public works
21.12
16.32
-
-
21.12
16.32
Interest on long-term debt
0.24
0.25
-
-
0.24
0.25
Golf Course -Desert Willow
-
-
8.45
8.66
8.45
8.66
Office Complex-Parkview
-
-
0.92
0.98
0.92
0.98
TOTAL EXPENSES
86.07
77.26
9.37
9.64
95.44
86.90
INCREASE (DECREASE) IN NET
ASSETS BEFORE TRANSFERS
9.70
(0.74)
(0.20)
(0.27)
9.50
(1.01)
Transfers
0.44
0.44
(0.44)
(0.44)
-
Gain on transfer to Successor Agency
-
-
-
-
-
INCREASE (DECREASE) IN NET POSITION
10.14
(0.30)
(0.64)
(0.71)
9.50
(1.01)
BEGINNING NET POSITION, AS RESTATED
702.10
702.40
76.57
77.28
778.67
779.68
ENDING NET POSITION
E 712.24 $
702.10
$ 75.93 $
76.57
$ 788.17 $
778.67
See independent auditors' report.
- 10-
C
0
E
c
L
m
0
0
800
700
600
500
400
300
200
100
Table 2- Graph
Changes in Net Position
90
80
70
60
50
40
30
20
10
2014 2013
2014 2013
Governmental Activities Business -Type Activities
Governmental Activities
Beginning Net
Position
mum Total Revenues
—*--Ending Net Position
o Total Expenses
Total revenue, excluding transfers increased from $76.52 million to $95.77 million, a 25.16 percent
increase. The increase is the result of a 172.83 percent increase in capital grants and contributions of
$13.36 million. Factors that contributed to the changes in revenues are as follows:
• 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.
• Deposit with Housing Authority in connection with the Judgment described on Page 9 increased
by $4.55 million, as compared to the deposit for the prior year (with the prior year amount being
lower because of the disruption to property tax revenue receipt caused by redevelopment agency
dissolution).
Total expenses increased from $77.26 million to $86.07 million, an 11.40 percent increase. General
government increased $2.81 million, Housing and Redevelopment increased $0.90 million, public safety
increased $0.73 million and public works increased $4.80 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.
See independent auditors' report.
-11-
10%
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
2014
Governmental Activities
Net (Expense) Revenue
1%
I-O/
Business -type Activities
Governmental Activities
Net (Expense) Revenue
(In Millions)
-19%
11
2014
(8.59)
9.81
(18.67)
(5.48)
(9.92)
(.24)
($33.09)
2013
Governmental Activities
Net(Expense)Revenue
')1o/ 1%
2013
($12.18)
4.11
(16.34)
(7.85)
(11.18)
(0.25)
($43.69)
General government
6 ■ Housing and
redevelopment
■ Public safety
-8 ■ Parks, recreation &
culture
■ Public works
31%
■ Interest on long term
debt
Business -type activities revenues saw a decrease of $0.20 million from $9.37 million to $9.17 million, a
2.13 percent decrease from the prior year. The overall decrease was directly related to the capital
contributions received during the prior fiscal year. Both the Desert Willow Golf Resort and the Parkview
Office Complex diligently focused on retaining the market share in their respective industries. The Desert
Willow Golf Resort utilized a strategic pricing structure which allowed the golf resort to retain the course
utilization with minimal impact to the overall average green fee. As a result, in a declining market, Desert
Willow recognized an increase in revenue from $7.49 million to $7.80 million, a 4.13 percent increase
from prior year. The golf resort management diligently marketed the platinum card program and offered a
discount during an introductory period, which motivated sales. The Parkview Office Complex revenues
increased slightly resulting from annual rental rate adjustments stipulated in the lease agreement with the
tenants.
Operating expenses for business -type activities decreased from $9.64 million to $9.37 million, a decrease
of 2.80 percent. Both the Desert Willow Golf Resort and the Parkview Office Complex staff worked on
controlling expenses.
See independent auditors' report.
-12-
THE CITY'S FUNDS
On Page 22, the governmental funds balance sheet is shown. The combined fund balance of
$238.65 million increased from $232.05 million, or 2.84 percent. This total includes the General Fund
balance of $78.37 million, which increased by $2.16 million from prior year. The City's General Fund
balance has a nonspendable balance of $7.74 million, which includes advances, loans and notes, and
prepaid cost, $4.43 million in assigned fund balance, and $66.20 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 building permits and charges for services. Other major funds balance changes are noted
below:
The Prop A Fire Tax Special Revenue Fund: the fund balance decreased from $2.58 million to
$2.46 million, a $0.12 million decrease. The City transferred $1.55 million to cover part of the
shortage.
The Low Moderate Housing Asset Fund: Deposit in connection with the Judgment described on
Page 9 increased by $4.55 million, as compared to the deposit for the prior year (with the prior
year amount being lower because of the disruption to property tax revenue receipt caused by
redevelopment agency dissolution).
Measure A Special Revenue Fund: the fund balance decreased from $22.99 million to
$18.54 million, a 19.36 percent decrease. The decrease in the fund balance is due to construction
and maintenance increase of $6.82 million from the prior year.
More detailed information about the combined fund balance reserves is presented in Note 10 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 $50.09 million were $1 million more than the
final budgeted revenues of $49.09 million. Sales and transient occupancy taxes continue to be the top
two revenue generators for the City totaling $27.11 million, or 54.12 percent of the General Fund budget.
The General Fund actual ending expenditures of $47.94 million were $2.23 million less than the final
budget of $50.17 million. There were changes in the original budget compared to the final budget during
the year. The original expenditure budget was $46.51 million compared to the final budget of
$50.17 million, a $3.66 million increase. The major change was due to the appropriations of an additional
$1.30 million in transfers to other funds and $2.70 million in retiree funding.
See independent auditors' report.
- 13 -
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2014, the City had $539.48 million invested in a broad range of capital assets, including
land, streets, bridges, drainage systems, traffic lights, parks, buildings, art work, vehicles, golf courses
and equipment (See Table 3). This amount represents a net decrease (including additions and
deductions) of $0.92 million over the prior year.
TABLE 3
CAPITAL ASSETS AT YEAR-END
(NET OF DEPRECIATION, IN MILLIONS)
For the years ended June 30, 2014 and 2013
Governmental
Business -Type
Activities
Activities
Total
2014
2013
2014 2013
2014
2013
Land
$ 78.44 $
73.78
$ 52.74 $ 53.15
$ 131.18 $
126.93
Construction -in -progress
8.24
6.83
- -
8.24
6.83
Buildings and improvements
other than buildings
106.03
110.44
18.89 19.35
124.92
129.79
Machinery and equipment
2.03
2.15
1.60 2.14
3.63
4.29
Infrastructure & right-of-way
271.51
272.56
- -
271.51
272.56
TOTALS
$ 466.25 $
465.76
$ 73.23 $ 74.64
$ 539.48 $
540.40
600
f/f
C
500
E 400
c
300
M
c 200
c
100
Table 3 - Graph
Capital Assets at Year -End
(Net of Depreciation in Millions)
2014 2013 2014 2013 2014 2013
Governmental Activities Business -Type Activities Total
■ Land
■ Construction in Progress
■ Buildings and Improvements
■ Equipment
■ Infrastructure
• Totals
See independent auditors' report.
-14-
This year's major additions included (in millions):
Street improvements $ 5.05
Traffic signals 0.38
Equipment purchases 0.80
Building improvements 0.21
Park improvements 0.16
Transfer of assets from Successor Agency 6.39
$ 12.99
The City's fiscal year 2015 capital budget calls for it to spend an additional $30.43 million plus continuing
capital projects spending of $37.68 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 1 g and Note 5 to the financial
statements.
Debt
At year-end, the City's governmental activities had $11.96 million in bonds, claims, and compensated
absences versus $12.25 million last year, a decrease of $0.29 million as shown in Table 4. The major
cause for the decrease was the required payment of annual debt.
TABLE 4
OUTSTANDING DEBT, AT YEAR-END
(IN MILLIONS)
For the years ended June 30, 2014 and 2013
Governmental
Business -Type
Activities
Activities
Total
2014
2013
2014 2013
2014
2013
Compensated absences payable
$ 2.69 $
2.59
$ - $ -
$ 2.69 $
2.59
Capital leases
-
-
1.22 1.75
1.22
1.75
Claims and judgements payable
1.02
0.74
- -
1.02
0.74
Special assessments debt with
government commitment
1.53
1.59
- -
1.53
1.59
Limited Obligation Improvement
bonds
2.06
2.52
- -
2.06
2.52
Lease revenue bond
4.66
4.81
- -
4.66
4.81
TOTALS
$ 11.96 $
12.25
$ 1.22 $ 1.75
$ 13.18 $
14.00
See independent auditors' report.
-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 decreased $0.53 million from $1.75 million to $1.22 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 maintenance equipment to maintain a cash flow to operate the day-to-day
activities. The decrease in the City's business -type activities debt was directly related to the annual debt
payments for the leases of golf course maintenance equipment. 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 2015, management focused on three core principles, in light of the
fact that the State of California dissolved the City's Redevelopment Agency in fiscal year 2012:
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) minimize the impact on the City's employees and avoid position
reductions if possible. The following economic factors were considered by management:
• In prior years, the City had unallocated reserves in its capital projects and special revenue funds.
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.
• The increase in healthcare and retirement costs.
The 2015 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 2014-2015 financial plan can be obtained by contacting the City's
Finance Department or visit the City's website at www.cityofi)almdesert.org.
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.
See independent auditors' report.
-16-
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, net of depreciation
TOTAL ASSETS
Exhibit A
CITY OF PALM DESERT
STATEMENT OF NET POSITION
June 30. 2014
Component
Primary Government
Unit
Palm Desert
Recreational
Governmental
Business -type
Facilities
Activities
Activities
Total
Corporation
$ 160,650,334
S 3,746,776 S
164,397,1 10
$ 76.434
1.612,347
86,159
1,698.506
14.193
1,526,000
-
1,526,000
-
415,648
-
415,648
-
11,933,906
-
11,931906
-
500,000
(500,000)
-
-
836,116
30,770
866,886
8,528
34,356
220,804
255,160
44,639
15,000,000
-
15.000.000
6,774,546
-
6,774,546
-
2,463,056
-
2,461056
-
285,000
1,232,275
1,517,275
-
40,476,288
-
40,476.288
-
30,571,097
-
30,571,097
-
8,448,611
-
8,448.611
-
207,480,484
52,736,087
260.216,571
-
258,766,248
20,496,012
279,262,260
-
747,774,037
78.048,883
825.822,920
143,794
DEFERRED OUTFLOWS OF RESOURCES:
Deferred asset from derivative instruments 21,144
LIABILITIES:
Accounts payable
Accrued liabilities
Interest payable
Unearned revenues
Deposits payable
Due to primary government
Liability from derivative instruments
Long-term liabilities:
Due within one year
Due in more than one year
TOTAL LIABILITIES
NET POSITION:
Net investment in capital assets
Restricted for:
Special projects
Capital projects
Unrestricted (deficit)
TOTAL NET POSITION
21,144
7,210,317
696,196
7,906,513
43,831
411,385
15,105
426.490
1.639
45,468
-
45,468
-
15,247,528
157,697
15,405.225
97.000
655,075
27,404
682,479
-
-
-
-
1,517.275
21.144
-
21.144
-
1.255.000
639,853
1,894,853
-
1 M04,172
583,062
11,287.234
-
35,550,089
2,119,317
37.669,406
1.659.745
466,246,732 72,009,184 538,255,916 -
83,261,449 - 83.261.449 -
57,199,126 - 57,199.126 -
105,537,785 3,920,382 109,458,167 (1,515,951)
$ 712,245,092 $ 75,929,566 $ 788,174,658 $ (1,515,95 I )
See independent auditory report and notes to basic financial statements.
-17-
CITY OF PALM DESERT
STATEMENT OF ACTIVITIES
For the year ended June 30, 2014
Functions/Programs
Expenses
Primary Government:
Governmental activities:
General government
$ 19,194,343
Housing and redevelopment
7,852,611
Public safety
29,339,106
Parks, recreation and culture
8,327,402
Public works
21,123,197
Interest on long term debt
237,053
Total governmental activities
86.073,712
Business -type activities
Program Revenue
Charges Operating Capital
for Grants and Grants and
$ 2,152,280 $ 892,899 $ 7,558,849
6,851,603 - 10,812,911
10,239,886 271,774 157,272
729,076 1,498,090 623,411
2,180,877 7,082,846 1.933,608
22,153,722 9,745,609 21.086.051
Desert Willow Golf Course 8,452,001 7,804.904 - 94,076
Office Complex - Parkview 922,341 1,254,521 - -
Total business -type activities 9.374,342 9,059,425 - 94,076
Total primary government $ 95,448,054 $ 31,213.147 $ 9,745,609 $ 21,180.127
Component Unit:
Palm Desert Recreational Facilities Corp. $ 2,418,379 $ 2,450.213
General revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu
Investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues
Change in net position
Net position - beginning of year
Net position - end of year
See independent auditors' report and notes to basic financial statements.
-18-
Exhibit B
Net (Expenses) Revenues and Changes in Net Position
Component
Primary Government
Unit
Palm Desert
Recreational
Governmental
Business -type
Facilities
Activities
Activities
Total
Corporation
$ (8,590,315)
$ - $
(8,590,315)
$ -
9,811,903
-
9,811,903
-
(18,670,174)
-
(18,670,174)
-
(5,476,825)
-
(5,476,825)
-
(9,925,866)
-
(9.925,866)
-
(237,053)
-
(237.053)
-
(33,088,330)
-
(33,088,330)
-
-
(553,021)
(553,021)
-
-
332,180
332.180
-
-
(220.841)
(220.841)
-
(33.088,330)
(220.841)
(33,309,171)
-
31,834
9,571,984
-
10,058,756
-
17, 292.694
-
3,007,215
-
22,089
-
358,674
13.646
488,319
-
1,994,506
-
437,500
(437.500)
43.231,737
(423,854)
10,143,407
(644,695)
9,571,984
10.058.756
17,292,694
3,007.215
22.089
372,320
488,319
1,994,506
42.807.883 -
9,498,712 31,834
702,101.685
76,574,261
778,675,946
(1,547,785)
$ 712,245.092
$ 75,929.566
$ 788,174,658
$ (1,515,951)
-19-
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-20-
FUND FINANCIAL STATEMENTS
-21 -
CITY OF PALM DESERT
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2014
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
Special Revenue Funds
Low Moderate
Prop A Ifousing
General Fire Tax Asset
$ 68,056,389 $ 2,995.783 $ 10.898,417
1,085,979 5,640 72,053
1,526,000
169,011
- 31938
56,117
- 6,802,636
829,403
- 1,152
2,921,730
406,525 -
62.561
- 4.531,000
9,236,000
- 17,821,288
30,321
- -
-
- 2,463,056
285,000
- -
2,500,000 - -
$ 86,758,511 $ 3,407,948 $ 42,623,540
$ 3,589,259 $ 949,278 $ 3,227
311,344 - -
1, 847,200 - -
16,997 - 6,796
5.764.800 949.278 1O.023
2,619,765 - 33,938
7,745,320 - 1,152
- 2,458,670 42.578.427
4,425,423 - -
66,203,203 - -
78,373,946 2,458,670 42.579,579
$ 86,758,511 $ 3,407,948 $ 42.623,540
See independent auditors' report and notes to basic financial statements.
-22-
Special
Revenue
Funds
(Continued)
Other
Total
Governmental
Governmental
Measure A
Funds
Funds
$ 19.231,149
$ 52,933.643
$ 154.115,381
-
448,675
1,612,347
-
1,382,905
1,382,905
-
-
1,526,000
-
212.699
415,648
-
5,075.153
11,933,906
-
5,561
836,116
2,584,712
861,579
6,774,546
-
501.512
5,095,073
15,000,000
-
15,000.000
-
13,419.000
40,476,288
-
4,035
34.356
_
-
2,463,056
-
-
285,000
46,950
28,024.147
30,571,097
36,862,811
$ 102,868,909
$ 272,521,719
$ 1.703,642
$ 880,839
$ 7,126,245
-
100,041
411,385
-
2,747,873
4,595,073
15.000,000
223.735
15,247,528
-
655.075
655,075
16.703.642
4,607.563
28.035.306
1,620,925
1,562,799
5,837,427
-
5.561
7,752.033
18.538,244
50,619.094
114,194,435
-
21,644,068
21,644,068
-
24,429,1824
28,855,247
-
-
66,203.203
18,538.244
96,698,547
238,648,986
$ 36,862,811 $ 102,868,909 $ 272,521,719
Exhibit C
-23-
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-24-
Exhibit D
CITY OF PALM DESERT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO TI IE STATEMENT OF NET POSITION
June 30, 2014
Total fund balance for governmental funds $ 238,648,986
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
$ 464,667,676
Current year additions
6,333,739
Current year deletions
(919,707)
Current year depreciation
(11,506,398)
Contributions
6,390,263
Ending Balance, net depreciation
464,965,573
Deferred outflows of resources from derivative instrument
21,144
Long-term debt activities and compensated absences have not been included
in the governmental fund activities:
Long-term debt (9,267,332)
Compensated absences (2,691,840)
(1 1.959,172)
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due. (45,468)
Liability from derivative instruments (21,144)
Because the focus of'govemmental 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
1,620,925
Interest that was not paid at year-end
247,434
Sales Tax
246,163
Successor Agency (former Redevelopment Agency) land purchase from City
2,055,000
4.454,522
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.
8,448,611
Internal service fund are used by management to charge the costs of certain
activities, such as equipment to individual funds. The assets and liabilities
of the internal service fund must be added to the Statement of Net Position. 7,732,040
Net position of governmental activities 712.245.092
See independent auditors' report and notes to basic financial statements.
-25-
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2014
REVENUES:
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Contributions from other governments
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 EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Sale of property
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
Special Revenue Funds
Low Moderate
Prop A
Housing
General
Fire Tax
Asset
$ 42.296,613
$ 5,036,055
$ -
-
2,114,822
-
1,834,215
-
-
1,844,327
883,935
-
148,633
-
3,366
1,439,278
-
-
405,456
3,678
111,828
100,393
-
-
-
-
9.157,393
654,726
17,500
1,063,304
48,723,641
8,055,990
10,335,891
14.874,403 - -
- - 1.249.248
19.090.260 9,728,650 -
3,772,021 -
6,386,036 - -
60,939 4,325 -
4,539,982 (1,676,985) 9,086,643
1,373,786 1,553,000 -
(3,754,752) - -
(2,380,966) 1,553,000 -
2,159,016 (123,985) 9,086,643
FUND BALANCES - BEGINNING OF YEAR 76,214,930 2,582,655 33.492,936
FUND BALANCES - END OF YEAR $ 78,373,946 $ 2,458,670 $ 42,579,579
See independent auditors' report and notes to basic financial statements.
-26-
Special
Revenue
Funds
(Continued)
Other
Total
Governmental
Governmental
Measure A
Funds
Funds
$ 2.542,352
$ 589.491
$ 50,464.511
-
1,371,398
3,486,220
-
428,692
2,262,907
786,328
3,866,154
7,380,744
-
5,474,851
5,626,850
-
725.742
2,165,020
87,345
256.546
864,853
-
131,375
231,768
-
1,591.825
10,749,218
-
420,590
420,590
-
1,804.022
3,539,552
3,416,025
16.660,686
87,192,233
-
2,196.413
17,070,816
-
5,400.930
6,650,178
-
320,825
29,139,735
-
2,030.920
5,802,941
3,143,594
3,212,134
12.741,764
-
2,350.187
2,350,187
4,720,235
1,488,323
6,273,822
-
674,000
674,000
-
242.495
242,495
7.863.829
17,916,227
80,945.938
(4,447,804)
(1,255,541)
6.246,295
-
911,001
911,001
-
1,934.765
4,861,551
-
(1,669.299)
(5,424,051)
-
1,176,467
348,501
(4,447,804)
(79,074)
6,594,796
22.986,048
96,777.621
232,054,190
18,538,244
$ 96,698,547
$ 238,648,986
Exhibit E
-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, 2014
Net change in fund balances - total governmental funds $ 6.594,796
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
depreciation and deletions exceeded capital outlays in the current period:
Current year additions $ 6,333,739
Current year deletions (919,707)
Current year depreciation (11,506,398)
Contributions ofproperty from Successor Agency 6,390.263
297,897
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Position. 674,000
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 compensated absences for the current period (104,310)
Net change in accrued interest for the current period 5.442
Net change in claims and judgments for the current period (274,540)
(373,408)
Collection of unavailable revenues is repelled as revenues in governmental funds
and thus has the effect of increasing fund balances. For the City as a whole,
however, the collection of these receipts reduces the net position in the Statement
of Net Position and does not result in revenues in the Statement of Activities.
Unavailable revenue 1,614,815
Revenues will not be collected within 60 days of the C ity's fiscal year-end and
therefore, are not considered available in the governmental funds:
Interest on note issued by the City (46,782)
Sales tax true -up from the State 33,736
(13,046)
Current year change for other post employment benefit asset. 479,640
Internal service funds are used by management to charge the costs of certain
activities, such as equipment. The net revenues (expenses) of the internal
service funds are reported with governmental activities. 968,713
Change in net position of governmental activities $ 10,143,407
See independent auditors' report and notes to basic financial statements.
-28-
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
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Deposits payable
Unearned revenues
Due to other finds
Current portion - capital leases
TOTAL CURRENT LIABILITIES
Exhibit G
CITY OF PALM DESERT
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2014
Business -type Activities -
Enterprise Funds
Major Other
Fund
Fund
Governmental
Desert
Parkview
Total
Activities -
Willow
Office
Enterprise
Internal
Golf Course
Complex
Funds
Service Fund
$ 566,466
$ 3,180,310
$ 3,746,776
$ 6,534,953
38,202
47,957
86,159
-
29,511
1,259
30,770
-
220.804
-
220,804
-
1,232.275
-
1,232.275
-
2,087.258
3,229.526
5,316,784
6,534,953
52,736,087
-
52,736,087
-
12,529.678
7,966,334
20,496,012
1,281,159
65,265,765
7,966,334
73,232,099
1,281,159
67,353,023
11,195,860
78,548,883
7,816,112
665,547
30,649 696,196
15,105
- 15,105
-
27,404 27.404
157,697
- 157,697
500,000
- 500,000
639.853
- 639,853
1.978.202
58,053 2.036,255
84,072
84.072
NONCURRENT LIABILITIES:
Capital leases
583.062
- 583,062 -
TOTAL NONCURRENT LIABILITIES
583.062
- 583,062 -
TOTAL LIABILITIES
2,561,264
58,053 2,619,317 84.072
NET POSITION:
Net investment in capital assets
64,042,850
7,966,334 72,009,184 1,281,159
Unrestricted
748,909
3,171,473 3,920,382 6,450,881
TOTAL NET POSITION
$ 64,791,759 $ 11,137,807 $ 75,929,566 $ 7,732,040
See independent auditors' report and notes to basic financial statements.
-29-
Exhibit H
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For the year ended June 30, 2014
Business -type Activities -
Enterprise Funds
Major Other
Fund Fund
Governmental
Desert Parkview
Total
Activities -
Willow Office
Enterprise
Internal
Golf Course Complex
Funds
Service Fund
OPERATING REVENUES:
Fees and rentals
$ 6,650,446 $ 1,237,990
$ 7,888,436
$ -
Merchandise sales
1,086,044 -
1,086,044
-
Miscellaneous
68,414 16,531
84,945
44,314
TOTAL OPERATING REVENUES
7,904,904 1,254,521
9,059,425
44,314
OPERATING EXPENSES:
Maintenance and operations
4320,398
283.738
4,604,136
21,546
Cost of merchandise
425.092
-
425,092
-
General and administrative
2,293,493
204,242
2,497,735
-
Depreciation and amortization
1.299,803
434.361
1,734,164
251,522
TOTAL OPERATING EXPENSES
8.338.786
922.341
9,261,127
273,068
OPERATING INCOME (LOSS)
(533,882)
332,180
(201,702)
(228,754)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
697
12,949
13,646
22,159
Interest expense
(1 11215)
-
(113,215)
-
Gain on disposal of capital assets
-
-
-
34,746
TOTAL NONOPF.RATING
REVENUES (EXPENSES)
(112,518)
12.949
(99,569)
56,905
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS
AND TRANSFERS
(646,400)
345,129
(301.271)
(171,849)
CAPITAL CONTRIBUTIONS
94,076
-
94,076
40,562
"TRANSFERS IN
-
-
-
1,000,000
TRANSFERS OUT
-
(437,500)
(437,500)
-
CHANGE IN NET POSITION
(552,324)
(92,371)
(644,695)
868,713
NET POSITION - BEGINNING OF YEAR
65,344.083
11,230,178
76,574,261
6,863,327
NET POSITION - END OF YEAR
$ 64.791,759
$ 11,137,807
$ 75,929,566
$ 7,732,040
See independent auditors' report and notes to basic financial statements.
-30-
CAS14 FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers
Payments to suppliers
NET CASH PROVIDED BY
OPERATING ACTIVITIES
CASII FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES
Interest paid on loan
Cash received from other funds
Cash paid to other funds
NET CASH PROVIDED (USED) BY
NONCAPITAL AND RELAI'ED
ACTIVII'IES
CASII FLOWS FROM CAPITAL AND
RELATED FINANCING ACIIVI LIES:
Purchases of capital assets
Proceeds from sale of assets
Principal paid on leases
Interest paid on leases
NET CASH USED 13Y CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
NET INCREASE (DECREASE)IN
CASH AND CASH EQUIVALENTS
CASH AND CASI I EQUIVALENTS -
BEGINNING OF YEAR
CASH AND CASES EQUIVALENT'S -
END OF YEAR
Exhibit I
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2014
Enterprise Funds
Major Other
Fund
Fund
Governmental
Desert
Parkview
fotal
Activities -
Willow
Office
Enterprise
Internal
Golf Course
Complex
Funds
Seryice Fund
$ 7,833,961
S 1,239,339
S 9,073,300
$ 44,314
(7,066,550)
(540,479)
(7,607,029)
(21,546)
767,411
698,960
1,466,271
22,768
(20,000) (20X0) -
1,000,000
(437,500) (437.500) -
(20.000) (437,500) (457,500) 1,000,000
129,481)
(199,423)
(228,904)
(349,960)
-
48,140
(528,168)
(528,168)
-
(93,215)
(93,215)
(650,864)
(199,423)
(850,287)
(301,820)
697
12,949
13,646
22,159
97,244
74,886
172,130
743,107
469,222
3,105,424
3,574,646
5,791,846
566,466 S 3.180,310 $ 3,746,776 $
6,534,953
See independent auditors' report and notes to basic financial statements.
-31-
(Continued)
Exhibit l
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
(CONTINUED)
For the year ended June 30, 2014
Business -type Activities -
Enterprise Funds
Major
Other
Fund
Fund
Governmental
Desert
Parkview
Total
Activities -
Willow
Office
Enterprise
Internal
Golf Course
Complex
Funds
Service Funds
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES.
Operating income (loss)
$ (533,882)
$ 332,180
$ (201,702)
$ (228,754)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities.
Depreciation and amortization
1,299,803
434,361
1,734,164
251,522
Changes in assets and liabilities
(Increase) decrease in receivables, net
50,000
(10,020)
39,980
-
(Increase) decrease in prepaid costs
17,486
86
17,572
(Increase) decrease in inventories
(29,091)
-
(29,091)
(Increase) decrease in due
from component unit
112,288
-
112,288
-
Increase(decrease)in accounts payable
and accrued liabilities
(15,962)
(52,585)
(68,547)
Increase (decrease) in deposits payable
Increase (decrease) in due to other funds
Increase(decrease)in uneamedrevenues
(133,231)
(5,162)
(138,393)
-
NET CASH PROVIDED BY
OPERATINGACf1VITIES
$ 767,411
$ 698,860
$ 1,466,271
$ 22,768
NONCASH ITEMS:
Noncash items include $94,076 and $40,562 (net value) of capital assets contributed by the City of Palm Desert to Desert
Willow Golf Course and the internal service fund, respectively.
See independent auditors' report and notes to basic financial statements.
-32-
Exhibit J
CITY OF PALM DESERT
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
June 30, 2014
Successor
Agency to the
Palm Desert
Redevelopment
Agency
Private -Purpose
Agency
Trust Fund
Funds
ASSETS:
Cash and investments
$ 22.184,265
$ 15,465,913
Receivables (net of allowance for uncollectibles):
Assessments
-
87,805.509
Interest
80,760
2,293
Due from other governments
-
648.529
Prepaid costs
155,784
4,208
Restricted assets:
Cash with fiscal agent
110,375,562
7,518,124
Capital assets, not being depreciated
51,882.534
-
Capital assets, being depreciated
1.987.879
-
TOTAL ASSETS
186,666,784
$ 111,444,576
DEFERRED OUTFLOWS OF RESOURCES:
Deferred amount on refunding
874,570
I.IABILITIFS:
Accounts payable
282,592 $ -
Interest payable
4,011,238 -
Advances from City of Palm Desert
22.655,000 -
Advances from Housing Authority
17,821,288 -
Deposits
- 111,444,576
Bonds payable - due within one year
18,295,000
Bonds payable - due in more than one year
304,419,042 -
TOTAL LIABILITIES
367,484,160 $ 111,444,576
NET POSITION:
I leld in trust $(179,942,806)
See independent auditors' report and notes to basic financial statements
-33-
CITY OF PALM DESERT
STATEMENTOF CHANGES IN NET POSITION
FIDUCIARY FUNDS
For the year ended June 30, 2014
ADDITIONS:
Taxes
Investment income
Rental income
Other
TOTAL ADDITIONS
DEDUCTIONS:
Housing and development
Interest
Depreciation
TOTAL DEDUCTIONS
CHANGE IN NEC POSITION
NET POSITION - BEGINNING OF YEAR, AS RESTATED
NET POSITION - END OF YF,AR
See independent auditors' report and notes to basic financial statements.
Exhibit K
Successor
Agency to the
Palm Desert
Redevelopment
Agency
Private -Purpose
Trn-t Fund
S 37,141,030
404,156
52,450
519 d99
38,120,135
35,512,415
16,017,898
315,540
51 Rd5 R51
(13,725,718)
(166.217.088)
S (179,942,806)
-34-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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.
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 other special
revenue funds combining financial statements as an other governmental fund.
See independent auditors' report.
-35-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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.
See independent auditors' report.
-36-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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.
See independent auditors' report.
-37-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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.
See independent auditors' report.
-38-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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 Fund accounts for financial transactions related to
replacement of City -owned vehicles and equipment. 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.
A2encv 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.
See independent auditors' report.
-39-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
1. 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 of the County
of Riverside) it is restricted for local street and road expenditures only.
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.
See independent auditors' report.
-40-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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.
See independent auditors' report.
-41 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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.
See independent auditors' report.
-42-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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
GASB 66 - "Technical Corrections, an amendment of GASB Statement No. 10 and Statement
No. 62 ", required to be implemented in the current fiscal year did not impact the City.
GASB 70 - "Accounting and Financial Reporting.for Nonexchange Financial Guarantees",
required to be implemented in the current fiscal year did not impact the City.
Pending Accounting Standards
GASB has issued the following statements which may impact the City's financial reporting
requirements in the future:
GASB 68 - "Accounting and Financial Reporting for Pensions, an amendment of GASB
Statement No. 27 ", effective for the fiscal years beginning after June 15, 2014.
GASB 69 - "Government Combinations and Disposals of Government Operations ", effective
for periods beginning after December 15, 2013.
GASB 71 - "Pension Transition for Contribuutions Made Subsequent to the Measurement Date,
an Amendment of GASB Statement No. 68 ", effective for periods beginning after June 30, 2014.
See independent auditors' report.
- 43 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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 then. The City has two items that qualify for reporting in this
category: deferred asset from derivate instruments and the deferred amount on refunding.
In addition to liabilities, the statement of net position and the governmental funds balance sheet
will sometimes report a separate section for deferred inflows of resources. This separate
financial statement element, deferred inflows of resources, represents an acquisition of net
position that applies to future periods and will not be recognized as an inflow of resources
(revenue) until that time. The City has only one type of this item, which arises under a
modified accrual basis of accounting that qualifies for reporting in this category. Accordingly,
the item, unavailable revenues, 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.
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.
See independent auditors' report.
-44-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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, 2014, 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.
See independent auditors' report.
-45-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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 $2,691,840,
which are not expected to be liquidated with expendable available financial resources, are
reported as long-term liabilities.
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, 2014, the cost of the property held for resale for various housing properties in Palm
Desert totaled $2,463,056.
m. Inventories, Prepaid Costs and Deposits:
Inventory in the amount of $220,804 and $44,639 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 $34,356 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.
n. Property Tax Calendar:
Property taxes are assessed and collected each fiscal year according to the following property
tax calendar:
Lien date:
Levy date:
Due date:
Delinquent date:
January 1
July 1 to June 30
November 1 - 1 st Installment
March 1 - 2nd Installment
December 10 - 1st Installment
April 10 - 2nd Installment
See independent auditors' report.
-46-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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. 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 liability for derivative instruments (Note7), the amounts reported for the
schedule of funding progress for the Defined Benefit Plan (Note 9) and the actuarial accrued
liability for the other post -employment benefits (Note 13). Accordingly, actual results could
differ from the estimates.
2. CASH AND INVESTMENTS:
Cash and Investments
As of June 30, 2014, cash and investments were reported in the accompanying financial statements
as follows:
Governmental activities $ 191,221,431
Business -type activities 3,746,776
Component unit 76,434
Fiduciary funds 155,543,864
Total Cash and Investments
See independent auditors' report.
-47-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
2. CASH AND INVESTMENTS (CONTINUED):
Cash and Investments (Continued)
Cash and investments at June 30, 2014 consisted of the following:
Primary Government
Demand accounts $ (9,153,846)
Petty cash 21,850
Investments 204,100,203
Total Cash and Investments - Primary Government $ 194.968,207
Component Unit
Demand accounts $ 76,434
Fiduciary Funds
Demand accounts $ 1,722,724
Pooled with Primary Government 15,465,913
Investments 138,355,227
Total Cash and Investments - Fiduciary Funds $ 155,5.43,864
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, 2014, the carrying amount of the deposits was $9,973,137, and the bank balance was
$8,111,225. The $1,861,912 difference represents outstanding c hecks and other reconciling items.
The California Government Code requires California banks and savings and loan associations to
secure an Entity's deposits by pledging government securities with a value of 110% of an Entity's
deposits. California law also allows financial institutions to secure deposits by pledging first trust
deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the
collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The
collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized
Agent of Depository recognized by the State of California Department of Banking. The collateral
for deposits with savings and loan associations is generally held in safekeeping by the Federal
Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are
physically held in an undivided pool for all California public agency depositors.
See independent auditors' report.
-48-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
2. CASH AND INVESTMENTS (CONTINUED):
Deposits (Continued)
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
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.
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
2. CASH AND INVESTMENTS (CONTINUED):
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) or by Moody's Investor Services (Moody's). Permissible City
investments include medium -term notes that are rated "A" or higher at time of purchase;
commercial paper that is rated "A-1" or the equivalent; money market mutual funds that are rated
"AAA"; and United States Government and Federal Agency securities (the quality of United States
Treasury securities is not analyzed since they are not deemed to have credit risk).
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating required, when
applicable, by the California Government Code, the City's investment policy, or debt agreements,
and the rating by Standard and Poor's, Fitch and Moody's as of year-end for each investment type.
Primary Government
Minimum
Total as of
Legal
Investment Type
June 30, 2014
Rating
AAA AI/PI Unrated
California Local Agency
Investment Fund S
61,170,870
N/A
$ S $ 61,170,870
California Asset
Management Program
3,739,833
N/A
3,739,833
Riverside County Treasurer's
Pooled Investment Fund
102,518,141
N/A
102,518,141
Medium -Term Corporate Notes
9,973,750
A
- 9,973,750 -
Hcld by Fiscal Agent:
Money market mutual funds
5,833,019
A
5,833,019 - -
California Local Agency
Investment Fund
20,864,590
N/A
- - 20,864,590
Total $
204,100,203
$ 5,833,019 S 9,973,750 $ 188,293,434
See independent auditors' report.
-50-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
2. CASH AND INVESTMENTS (CONTINUED):
Credit Risk (Continued)
Fiduciary Funds
Minimum
Total as of
Legal
Investment Type
June 30, 2014
Rating
AAA
Unrated
California Local Agency Investment Fund
S 15,007,481
N/A
S
$ 15,007,481
California Asset Management Program
766,284
N/A
766,284
Riverside County Treasurers Pooled Investment Fund
2,622,776
N/A
2,622,776
Investment in City Bonds - Successor Agency RDA
2,065,000
N/A
2,065,000
Held by Fiscal Agent:
Money market mutual funds - Successor Agency RDA
35,141,436
AAA
35,141,436
-
California Local Agency Investment Fund -
Successor Agency RDA
75,234,126
N/A
-
75,234,126
Money market mutual funds - Assessment District
3,360,142
AAA
3,360,142
-
California Local Agency Investment Fund - Assessment District
4,157,982
N/A
-
4,157,982
Total
S 138,355,227
S 38,501,578
S 99,853,649
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, 2014, none of the City's deposits or investments were exposed to custodial credit
risk.
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, 2014, 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.
See independent auditors' report.
-51-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
2. CASH AND INVESTMENTS (CONTINUED):
Concentration of Credit Risk (Continued)
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. The federal agency debt that the City purchases have implied credit ratings of
"AA+/Aaa".
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.
See independent auditors' report.
-52-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
2. CASH AND INVESTMENTS (CONTINUED):
Interest Rate Risk (Continued)
As of June 30, 2014, the City had the following investments and maturities:
Primary Government
Investment Type
California Local Agency
Investment Fund
California Asset
Management Program
Riverside County Treasurer's
Pooled Investment Fund
Medium -Term Corporate Notes
Held by Fiscal Agent:
Money market mutual funds
California Local Agency
Investment Fund
Total
Less Than
6 months - I year - Over
Fair
6 months
1 year 3 years 3 years
Value
$ 61,170,870
$ - $ - $ -
S 61,170,870
3,739,833
- - -
3,739,833
102,518,141
- - -
102,518,141
-
9,973,750 - -
9,973,750
5,833,019
- - -
5,833,019
20,864,590
- - -
20,864,590
$ 194,126,453
$ 9,973,750 $ - $ -
S 204,100,203
Less Than 6 months -
I year -
Over
Fair
Investment Type
6 months I year
3 years
3 years
Value
California Local Agency
Investment Fund
$ 15,007,481 $ -
$ -
$ -
$ 15,007,481
California Asset
Management Program
766,284 -
-
-
766,284
Riverside County Treasurer's
Pooled Investment Fund
2,622,776 -
-
-
2,622,776
Investment in City Bonds
128,000 -
379,000
1,558,000
2,065,000
Held by Fiscal Agent:
Money market mutual funds -
SuccessorAgencyRDA
35,141,436
- -
-
35,141,436
LAIF - Successor Agency RDA
75,234,126
- -
-
75,234,126
Money market mutual funds -
Assessment District
3,360,142
- -
-
3,360,142
LAIF - Assessment District
4,157,982
- -
-
4,157,982
Total
$ 136,418,227 $
- $ 379,000
$ 1,558,000
$ 138,355,227
See independent auditors' report.
-53-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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.
See independent auditors' report.
-54-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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 will be 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, 2014, the receivable balance was $1,526,000.
The Low Moderate Housing Asset Special Revenue Fund has $15,007 in home improvement loans.
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, 2014 the total receivable from the Highlands
Deferral Loan Program is $56,117.
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.
See independent auditors' report.
-55-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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 AB811. The EIP program allowed the City to
create the funding mechanism to assist the residents and businesses entering into a loan agreement
with the City and providing the money for the borrowers to acquire and install energy efficient
improvements. Assembly Bill AB811 allows the City to lien the properties through annual property
tax assessments for a period not to exceed 20 years. To date, 168 residents and business owners
entered into loan agreements with the City and have completed their improvements through the
EIP program. 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, 2014 the outstanding loans receivable through the
EIP Program was $5,075,153.
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
Project Name
Outstanding Rate
Date Secured By
Self -Help
$ 429,000 7.25%
30 years Deed of Trust
Housing Program
or 2024
Home Improvement 380,076
Loans
See independent auditors' report.
Special Provisions
of Loan
Loan balance and interest due
upon maturity, unpaid balance
of loan or interest will bear an
interest rate of 12%.
Loan is payable upon change
N/A N/A Deed of Trust 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.
-56-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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
2,289,606
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
5,269,856
3.00%
30-45
Deed of Trust
Loan is payable upon change
years
or transfer of title, refinancing
from date
or upon the death of the
of loan
borrower.
Loan is payable upon change
Acquisition,
190,510
3.00%
30 -45
Deed of Trust
or transfer of title, refinancing
or upon the death of the
Rehabilitation,
years
Assignment
borrower. Restrictive
Resale
from date
of Rent
covenants are placed against
of loan
property to maintain
affordability for up to 45 years
in exchange for favorable loan
teens.
* All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive
covenant.
See independent auditors' report.
-57-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
Due To/From Other Funds
The composition of interfund balances as of June 30, 2014, was as follows:
Due To Due From Amount
General Fund Other Governmental Funds $ 62,561
Low Moderate Housing Asset
Special Revenue Fund General Fund 1,847,200
Other Governmental Funds 2,683,800
Other Governmental Funds Desert Willow Golf Course 500,000
Other Governmental Funds 1,512
5,095,073
The General Fund advanced money to cover the cash shortage in the Community Development
Block Grant Special Revenue Fund until payment from the County is received.
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 Capital 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
1,232,275
$ 1,517,275
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.
See independent auditors' report.
-58-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Interfund Transfers
The composition of interfund transfers as of June 30, 2014, 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
$ -
$ 1,553,000
$ 1,201,752
$ 2,754,752
$ 1,000,000
$ 3,754,752
Other
Governmental
Funds
936,286
-
733,013
1,669,299
-
1,669,299
Office Complex
Parkview
Enterprise Fund
437,500
-
-
437,500
-
437,500
"Totals
$ 1,373,786
$ 1,553,000
$ 1,934,765
$ 4,861,551
$ 1,000,000
$ 5,861,551
Transfers are used to:
1. Move receipts restricted to debt service from the funds collecting the receipts to the debt
service funds as debt service payments become due,
2. Transfer revenues to provide for capital projects,
3. Transfer revenues to provide for additional resources to pay for expenditures, and
4. Transfer to cover future cost of assets.
See independent auditors' report.
-59-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
5. CAPITAL ASSETS:
A summary of changes in capital assets at June 30, 2014, was as follows:
Primary Government - Governmental Activities
Balance at
Balance at
July 1, 2013
Transfers
Additions
Deletions
June 30, 2014
Capital assets, not
being depreciated:
Land
$ 73,776,684
$ 5,049,138
$ -
$ (383,294)
$ 78,442,528
Right-of-way
120,708,066
-
87,610
-
120,795,676
Construction -in -progress
6,618,288
(2,047,209)
3,383,466
(54,869)
7,899,676
Internal service fund -
Construction -in -progress
211,421
-
131,183
342,604
Total capital assets, not
being depreciated
201,314,459
3,001,929
3.602,259
(438,163)
207,480,484
Capital assets, being
depreciated:
Buildings
127,283,761
1,575,588
-
(308,868)
128,550,481
Improvements other
than buildings
54,761,549
37,010
159,192
(674,284)
54,283,467
Machinery and equipment
9,442,224
(73,467)
442,547
(225,146)
9,586,158
Infrastructure
234,055,687
2,010,199
2,260,924
(166,924)
238,159,886
Equipment - Internal
service fund
5,513,795
73,467
285,834
(805,210)
5,067,886
Total capital assets,
being depreciated
431,057,016
3,622,797
3,148,497
(2,180,432)
435,647,878
Less accumulated
depreciation for:
Buildings
(48,115,577)
(234,463)
(3,072,788)
234,734
(51,188,094)
Improvements other
than buildings
(23,490,616)
-
(2,661,248)
539,428
(25,612,436)
Machinery and equipment
(8,167,630)
32,904
(444,664)
77,101
(8,502,289)
Infrastructure
(82,204,760)
-
(5,327,698)
82,978
(87,449,480)
Equipment - Internal
service fund
(4,636,720)
(32,904)
(251,522)
791,815
(4,129,331)
Total accumulated
depreciation
(166,615,303)
(234,463)
(11,757,920)
1,726,056
(176,881,630)
Capital assets, being
depreciated, net
264,441,713
3,388,334
(8,609,423)
(454,376)
258,766,248
Capital assets, net -
Governmental Activities
$ 465,756,172
$ 6,390,263
$ (5,007,164)
$ (892,539)
$ 466,246,732
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
5. CAPITAL ASSETS (CONTINUED):
A summary of changes in capital assets at June 30, 2014, was as follows:
Primary Government - Business -type Activities
Capital assets, not
being depreciated:
Land
Total capital assets,
not being depreciated
Capital assets, being
being depreciated:
Buildings and
improvements
Machinery and equipment
Total capital assets,
being depreciated
Less accumulated
depreciation for:
Buildings and
improvements
Machinery and equipment
Total accumulated
depreciation
Capital assets, being
depreciated, net
Capital assets, net -
Business -type Activities
Balance at
July I, 2013
Balance at
Additions Deletions Reclassification June 30, 2014
$ 53,150,057 $ 48,219 $ - $ (462,189) $ 52,736,087
53,150,057 48,219 - (462,189) 52,736,087
26,695,746 146,418 (181,173) 357,209 27,018,200
6,165,981 128,343 (89,029) 104,980 6.310,275
32,861,727 274,761 (270,202) 462,189 33,328,475
(7,340,882) (965,587)
(4,027,619) (768,577)
181,173
89,029
(11,368,501) (1,734,164) 270,202
21,493,226 (1,459,403)
(8,125,296)
(4,707,167)
(12,832,463)
462,189 20,496,012
$ 74,643,283 $ (1,411,184) $ - $ - $ 73,232,099
See independent auditors' report.
-61 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
5. CAPITAL ASSETS (CONTINUED):
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 2,002,837
Housing and redevelopment 1,182,482
Public safety 138,420
Public works 5,797,069
Parks, recreation and culture 2,385,590
Depreciation expenses for internal service funds is charged
to various functions based on usage of capital assets 251,522
Total depreciation expense - governmental activities $ 11.757.920
Business -type Activities:
Desert Willow Golf Course $ 1,299,803
Parkview Office complex 434,361
Total depreciation expense - business -type activities $ 1,734.164
See independent auditors' report.
-62-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
6. LONG-TERM LIABILITIES:
The following is a summary of long-term liability
transactions of the City for the year ended
June 30, 2014:
Primary Government - Governmental Activities
Balance
Balance Due Within
July I, 2013 Additions
Reductions June 30, 2014 One Year
Special assessment debt
with government
commitment S 1,589,000 $
$ (63,000) S 1,526,000 S 37,000
Limited obligation
improvement bonds 2,521,000
(456,000) 2,065,000 128,000
Lease revenue bonds 4,810,000
(155,000) 4,655,000 170,000
Claims and judgments
payable 746,792 668,906
(394,366) 1,021,332 320,000
Compensated absences
payable 2,587,530 1,622,498
(1,518,188) 2,691,840 600,000
Total $ 12,254,322 $ 2,291,404
$ (2,586,554) S 11,959,172 $ 1,255,000
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 1, 2013 Additions
Reductions June 30, 2014 One Year
Capital leases S 1,751,083 S -
$ (528,168) $ 1,222,915 S 639,853
See independent auditors' report.
-63-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
6. LONG-TERM LIABILITIES (CONTINUED):
Special Assessment Debt with Government Commitment
Highlands Undergrounding_ Assessment District No. 04-01, Limited Obligation Improvement
Bonds, Series 2006
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay
the cost of issuance. The debt service on the bonds is to be paid by -assessments secured on the
property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential obligation to
provide additional funds to pay the debt service, therefore these bonds are reported as special
assessment debt with government commitment. Bond maturities begin September 2, 2007, and
continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The
City of Palm Desert is the only bondholder on record of the bonds.
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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2037
See independent auditors' report.
Principal
$ 37,000
38,000
41,000
42,000
44,000
259,000
331,000
424,000
310,000
$ 1,526,000
Interest
$ 76,624
74,871
72,994
70,991
68,894
307,889
233,125
136,576
24,514
$ 1,066,478
Total
$ 113,624
112,871
113,994
112,991
112,894
566,889
564,125
560,576
334,514
$ 2,592,478
-64-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
Principal
$ 82,000
77,000
82,000
77,000
77,000
385,000
401,000
85,000
1,266,000
Interest
$ 36,750
34,365
31,980
29,595
27,285
101,895
43,185
1,275
Total
$ 118,750
111,365
113,980
106,595
104,285
486,895
444,185
86,275
See independent auditors' report.
-65-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
See independent auditors' report.
Principal
$ 46,000
46,000
48,000
49,000
50,000
258,000
249,000
53,000
$ 799,000
Interest
$ 23,280
21,900
20,490
19,035
17,550
64,950
26,415
795
$ 194,415
Total
$ 69,280
67, 900
68,490
68,035
67,550
322,950
275,415
53,795
$ 993,415
W •
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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 Series 2009 bonds consist of $5,225,000 Serial Variable Rate Bonds with interest payable on a
monthly basis based on a weekly rate period based on the USD-LIBOR-BBA 1-month interest rate.
The City has entered into a swap agreement to effectively fix the interest rate with a floor of 1.93%
and an interest rate cap of 5.25%. Principal payments are due on September 1 of each year. Bond
maturities commenced on September 1, 2010, and will continue annually through
September 1, 2029.
On June 14, 2012 the First Amendment to the Reimbursement Agreement between the City of
Palm Desert and Wells Fargo Bank, National Associations was executed. The first amendment of
the reimbursement agreement extended the letter of credit associated with the bonds for an
additional three (3) years; from August 30, 2012 to August 30, 2015. No other material changes
were executed with this first amendment.
The future debt service requirements computed at a variable rate of 0.15150% at June 30, 2014 on
the Lease Revenue Bonds Series 2009 are as follows:
Year Ending
June 30,
Principal
Interest
Total
2015
$ 170,000
$ 6,839
$ 176,839
2016
180,000
6,568
186,568
2017
190,000
6,283
196,283
2018
205,000
5,976
210,976
2019
220,000
5,647
225,647
2020 - 2024
1,345,000
22,450
1,367,450
2025 - 2029
1,885,000
10,060
1,895,060
2030
460,000
118
460,118
$ 4,655,000
$ 63,941
$ 4,718,941
The Lease Revenue Bonds Series 2009 were called in September 2014.
See independent auditors' report.
-67-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
6. LONG-TERM LIABILITIES (CONTINUED):
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, 2014, total estimated workers' compensation and
general liability claims payable, including a provision for incurred but not reported claims, were
$411,477 and $609,855, respectively, for a total claims and judgments payable of $1,021,332.
Changes in claims liabilities during the past two years are as follows:
June 30, 2013 June 30, 2014
Claims payable - Beginning of Year $ 980,758 $ 746,792
Incurred claims (including IBNR)
and changes in estimates 46,639 669,366
Claims payments (280,605) (394,826)
Claims payable - End of Year $ 746,792 $ 1,021,332
Business -type Activities - Capital Leases
Obligations under capital leases are as follows:
PNCEF, LLC dba PNC Equipment Finance - The present value of the
minimum lease payment on the Toro Greens mowers and equipment
lift was capitalized at $78,329 using an interest rate of 4.60%. Lease is
payable in 48 monthly installments of $1,789 beginning December 15,
2010. There is a $1 bargain purchase option (Termination Amount)
which will be exercised upon the expiration of the lease. $ 8,841
De Lage Lande Public Finance LLC - The present value of the
minimum lease payment on the Club Car Golf Carts was capitalized at
$738,639 using an interest rate of 4.81%. Lease is payable in 48
monthly installments of $13,686 beginning December 15, 2010. A
balloon payment in the amount of $172,210 is due on January 1, 2015. 236,415
See independent auditors' report.
-68-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
6. LONG-TERM LIABILITIES (CONTINUED):
Business -type Activities - Capital Leases (Continued)
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 Leasin , 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 - 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 JCB grapple bucket was capitalized at
$10,48 l 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
$ 126,028
822,982
22,727
5,922
1,222,915
(639,853)
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
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, 2014:
Year Ending
June 30,
2015
2016
2017
2018
Less: amounts representing interest
Present value of net minimum lease
payments
The assets acquired through capital lease are as follows:
Machinery and equipment
Less: accumulated depreciation
7. DERIVATIVE INSTRUMENTS -INTEREST RATE SWAP AGREEMENT:
Objective:
Minimum
Lease
Payments
$ 675,743
425,464
284,516
42,264
1,427,987
(205,072)
$ 1,222,915
$ 2,912,576
(1,917,322)
The Palm Desert Financing Authority executed an interest rate swap agreement on August 31, 2009
with swap provider Wells Fargo Bank, N.A (counterparty) in connection with the issuance of the
$5,225,000 Palm Desert Financing Authority Energy Independence Program Variable Rate
Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). The Swap Agreement is a five
year swap agreement scheduled to terminate on September 1, 2014. The swap establishes an
interest rate floor of 1.93% and an interest rate cap of 5.25% adjusted weekly every Thursday at the
one month USD-LIBOR-BBA rate for that period.
See independent auditors' report.
-70-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
7. DERIVATIVE INSTRUMENTS -INTEREST RATE SWAP AGREEMENT (CONTINUED):
Details on the swap agreement are as follows:
Original
Notional
Amount
$ 5,225,000
Terms:
Interest Rate
Rangy
1.93% - 5.25%
Issue
Wells Fargo
Termination
Date
09/01 /2 014
Initial
Effective
Date
08/31 /2009
Under the swap agreement, the City will make a monthly interest payment at the variable rate
between 1.93% and 5.25%. The City will receive a variable rate interest payment for those variable
interest rates in excess of the 5.25% cap and makes a payment if the variable rate is less than
1.93%. The rate is adjusted weekly every Thursday at the 1-Month USD-LIBOR-BBA rate. The
swap is for a total notional amount of $5,225,000 and will terminate on September 14, 2014.
Summary of Activities in Cash Flow Hedging Derivative Instrument:
Outstand ing
Notional
Amount
$ 4.655,Q2
Fair Value
at
June 30, 2013
$ 9_8J50
Change in
Fair Value
$ (77,006)
Fair Value
at
June 30, 2014
$ 21,144
As of June 30, 2014, the fair value of $21,144 is reported as a deferred asset from derivative
instruments and a liability from derivative instruments in the Statements of Net Position.
Credit Risk:
As of June 30, 2014, the City was exposed to credit risk because the swap had a negative fair
value. However, should interest rates change and the fair value of the swap become positive, the
City would not be exposed to credit risk in the amount of the derivative's fair value.
The swaps counterparty, Wells Fargo Bank N.A., have the following credit ratings:
Standards
& Poor Moody's
Wells Fargo Bank N.A. AA- Aa3
See independent auditors' report.
-71-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
7. DERIVATIVE INSTRUMENTS -INTEREST RATE SWAP AGREEMENT (CONTINUED):
Basis Risk:
The swaps do expose the City to basis risk, which refers to a mismatch between the interest rate
received from the swap contract and the interest paid on the variable rate payments to be made on
the debt. The City pays the counterparty a variable interest rate ranged between 1.93% and 5.25%
and receives a variable rate in excess of the 5.25% cap, based on the one month
UDS-LIBOR-BBA. The City is at risk that the variable interest rate calculated on the debt is less
than the floor of 1.93%.
Termination Risk:
The swaps may be terminated by the City or the counterparty if the other party fails to perform
under the terms of the swap agreements. In addition, the City has the option to terminate the swaps
upon proper notification to the counterparty. If the swaps are terminated, the City would
prospectively pay the variable rates on the portion of the outstanding bonds related to the swap
agreements. The termination of the swap agreements could therefore increase the City's total debt
service. Also, if at the time of the termination, the swaps have a negative fair value, the City would
be liable to the counterparty for a payment equal to such negative fair value. As of June 30, 2014
the swap had a negative fair value of $21,144.
Swap Payments and Associated Debt:
Using a variable rate range between 1.93% and 5.25% the Series 2009 Financing Authority Energy
Independence Program Variable Rate Demand Lease Revenue Bonds, as of June 30, 2014, debt
service requirements of the Certificates and the swap payments through the termination date of
September 1, 2015, assuming a current interest rate of 1.93% are as follows. As rates vary, the
variable rate interest payments and net swap payments will vary.
Year Ending
Variable Rate Debt
Interest Rate
Fixed Debt
June 30,
Principal Interest Total
Swap, Net
Service
2015
$ 170,000 $ 6,839 $ 176,839
$ 15,261
$ 185,261
See independent auditors' report.
-72-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
8. 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 $11,833,005 held by NRS and
ICMA of the 457 Plan are not reflected in the City's financial statements.
9. PENSION PLAN:
a. Plan Description:
The City of Palm Desert contributes to the California Public Employees Retirement System
(Ca1PERS), an agent multiple -employer public employee defined benefit pension plan.
Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments and
death benefits to plan members and beneficiaries. CalPERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit
provisions and all other requirements are established by state statute and city ordinance. Copies
of Ca1PERS' annual financial report may be obtained from their executive office: 400 Q Street,
Sacramento, CA 95814.
b. Funding Policy:
Participants are required to contribute 8% of their annual covered salary. The Participants
contribute 100% of required Ca1PERS participant share. The City is required to contribute at an
actuarially determined rate; the rate for fiscal year 2013-2014, was 26.548% for non -safety
employees of annual covered payroll. The contribution requirements of plan members and the
City are established and may be amended by Ca1PERS.
See independent auditors' report.
-73-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
9. PENSION PLAN (CONTINUED):
c. Annual Pension Cost:
For 2014, the City's annual pension cost of $3,994,594 for Ca1PERS was equal to the City's
required and actual contributions. The required contribution was determined as part of the
June 30, 2013, actuarial valuation using the entry age normal actuarial cost method. The
actuarial assumptions included: a) 7.5% investment rate of return (net of administrative
expenses), b) projected annual salary increases of 3.3% to 14.2% depending on age, service and
type of employment, and c) 3.0% per year cost -of -living adjustments. Both a) and b) included
an inflation component of 2.75%. The actuarial value of Ca1PERS' assets was determined using
techniques that smooth the effects of short-term volatility in the market value of investments
over a three-year period (smoothed market value). Ca1PERS' unfunded actuarial accrued
liability is being amortized as a level percentage of projected payroll on a closed basis that
depends on the plan's entry into Ca1PERS. The remaining amortization period was 20 years.
d. Three -Year Trend Information for Ca1PERS:
Fiscal
Year
6/30/ 12
6/30/ 13
6/30/ 14
Annual Pension
Cost (APC)
$ 3,527,962
3,470,633
3,994, 594
e. Schedule of Funding Progress for Ca1PERS:
Percentage
APC Contributed
100%
100%
100%
Net Pension
Obligation
As of June 30, 2013, the most recent actuarial valuation date, the plan was 62.9% funded. The
actuarial accrued liability for benefits was $103.06 million, and the actuarial value of assets
was $64.82 million, resulting in an unfunded actuarial accrued liability (UAAL) of
$38.24 million. The covered payroll (annual payroll of active employees covered by the plan)
was $10.79 million, and the ratio of the UAAL to the covered payroll was 354.5%.
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.
See independent auditors' report.
-74-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
10. 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, 2014, were as follows:
Nonspendable:
Advances
Loans and notes
receivables
Prepaid costs
Restricted for:
Capital projects
Debt service
Low income housing
Public facilities
Public safety
Special programs
Street related purposes
Committed to:
Aquatic center
Capital asset replacement
Energy loan program
Assigned to:
Capital projects
Property acquistion
Community contingency
Debt service
Public facilities
Special programs
Street related purposes
Unassigned
Totals
Low
Moderate
Prop A
Housing
Fire Tax
Asset Measure A
General Special
Special Special
Fund Revenue
Revenue Revenue
$ 5,333,800 $ -
$ - $
1,582,1 17 - -
829,403 - 1,152
Other
Governmental
Funds Total
- $ - $ 5,333,800
- 1,582,117
5,561 836,116
- - - - 21,973,168
21,973,168
- - - - 105,952
105,952
- - 42,578,427 - 11,401,415
53,979,842
- - - - 3,867,580
3,867,580
- 2,458,670 - - 941,462
3,400,132
_ - - 8,436,491
8,436,491
- - 18,538,244 3,893,026
22,431,270
- - - - 2,135,692 2,135,692
- 11,875,488 11,875,488
- 7,632,888 7,632,888
- -
- - 10,963,431
10,963,431
- -
- - 420,387
420,387
455,000 -
- - -
455,000
2,691,840 -
- -
2,691,840
121,189 -
- - 10,130,979
10,252,167
77,974
- - 667,255
745,229
1,079,421 -
- - 2,247,772
3,327,193
66,203,203 -
- - -
66,203,203
$ 78,373,946 $ 2,458,670 $ 42,579,579 $ 18,538,244 $ 96,698,547 $ 238,648,986
See independent auditors' report.
-75-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
10. FUND BALANCES (CONTINUED):
Fund Balances (Continued)
The fund balances reported on the fund statements now consist of the following categories:
Nonspendable - This classification includes amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted - This classification includes amounts that can be spent only for specific purposes
stipulated by constitution, external resource providers or through enabling legislation.
Committed - This classification includes amounts that can be used only for the specific purposes
determined by a formal action of the City Council. The City considers the adoption of a resolution
to institute a formal action of City Council for the purpose of establishing, modifying or rescinding
committed fund balances.
Assigned - This classification includes amounts to be used by the government for specific purposes
but do not meet the criteria to be classified as restricted or committed. This includes amounts that
are assigned through adoption of a resolution by City Council. The Council may delegate the
ability of an employee or committee to assign uses of specific funds, for specific purposes. Such
delegation of authority has not yet been granted to persons or bodies other than the City Council.
Unassigned - This classification includes the residual balance for the government's general fund
and includes all spendable amounts not contained in other classifications. In other funds, the
unassigned classification is used only to report a deficit balance resulting from overspending for
specific purposes for which amounts had been restricted, committed or assigned.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balances are available, the City's policy is to apply restricted fund balance first.
When an expenditure is incurred for purposes for which committed, assigned or unassigned fund
balances are available, the City's policy is to apply committed fund balance first, then assigned
fund balance, and finally unassigned fund balance.
See independent auditors' report.
-76-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
11. RISK MANAGEMENT:
a. Description of Self -Insurance Pool Pursuant to Joint Powers Agreement:
The City of Palm Desert a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 119 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 9-member Executive Committee.
b. Self -Insurance Programs of the Authority:
Each member pays an annual contribution to cover estimated losses for the coverage period.
This initial funding is paid at the beginning of the coverage period. After the close of the
coverage period, outstanding claims are valued. A retrospective deposit computation is then
conducted annually thereafter until all claims incurred during the coverage period 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.
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 non -police 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 in excess of $750,000 up to the
reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation
within the first and second loss layers.
See independent auditors' report.
-77-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
11. RISK MANAGEMENT (CONTINUED):
b. Self -Insurance Programs of the Authority (Continued):
Liability (Continued)
(5) Costs of covered claims for $5 million to $10 million are paid under a reinsurance contract
subject to a $2.5 million annual aggregate deductible. The $2.5 million annual aggregate
deductible is fully covered under a separate policy; as such no portion of it is retained by the
Authority. Costs of covered claims from $10 million to $15 million are paid under two reinsurance
contracts subject to a combined $3 million annual aggregate deductible. The $3 million annual
aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from
$15 million up to $20 million are paid under reinsurance agreements. (7) Costs of covered claims
from $20 million to $50 million are paid under excess insurance policies.
The overall coverage limit for each member including all layers of coverage is $50 million per
occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a
pooled sub -limit of $30 million per occurrence. This $30 million subsidence sub -limit is composed
of (a) $5 million retained within the pool's SIR, (b) $15 million in reinsurance, subject to the same
annual aggregate deductibles previously stated, and (c) $10 million in excess insurance. The excess
insurance layer has a $10 million annual aggregate.
Workers' Compensation
In the workers' compensation program claims are pooled separately between public safety
(police and fire) and non public -safety exposures. (1) The payroll of each member is evaluated
relative to the payroll of other members. A variable credibility factor is determined for each
member, which establishes the weight applied to payroll and the weight applied to losses
within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the first
layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each
occurrence and is evaluated as a percentage of the pool's total incurred costs within the second
layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of
$2 million are distributed based on the outcome of cost allocation within the first and second
loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a
reinsurance policy. Protection is provided per statutory liability under California Worker's
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.
See independent auditors' report.
-78-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
11. 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 $217,408,986. 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 2013-14.
See independent auditors' report.
-79-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
12. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES:
Unearned Revenues
Major Governmental Funds
General Fund has received $16,997 in unearned revenues from the Successor Agency that are
deemed unearned until expenditures are incurred related to park improvements.
Low and Moderate Housing Asset Special Revenue Fund has other amounts reported as unearned
revenues include $6,796 for damages on purchased home.
Measure A Special Revenue Fund has $15,000,000 in funds received from the Successor Agency
that are deemed unearned until expenditures are incurred related to construction of interchange.
Other Governmental Funds
Special Revenue Funds
$3,607 of grant funds are deemed unearned until expenditures are incurred in the Recycling Fund.
$62,837 of grant funds are deemed unearned until expenditures are incurred in the Public Safety
Police Grants Fund.
$12,182 represents the unused portions of prepaid aquatic fees in the Aquatic Center Fund.
Housing Authority fund has other amounts reported as unearned revenues include $7,396 for
prepaid rents.
Capital Projects Fund
Capital Projects Reserve fund has $137,713 of unearned revenue represents deposits for street
improvements, as the funds have not been spent as of June 30, 2014.
Business -type Activities
The balance of $157,697 represents the unused portions of prepaid golf fees, value of unredeemed
gift certificates and unearned rent.
Component Unit
The balance of $97,000 represents the unused portions of prepaid banquets.
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
12. 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, 2014, 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 $246,163 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, 2014, $33,602 in interest has been accrued.
Recognition of the interest revenue has been reported as unavailable until it becomes due.
Low and Moderate Housing 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 $1,620,925 is related to expenditures incurred through June 30, 2014 which
are to be reimbursed from other governments, but have not been received within the availability
period.
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
12. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES (CONTINUED):
Deferred Inflows of Resources (Continued)
Other Governmental Funds
Special Revenue Funds
Interest accrued on loans of $179,894 on loans receivable through the City's EIP Program is
reported as unavailable (see Note 3).
Debt Service Fund
Assessment receivables in the amount of $1,382,905 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.
13. OTHER POST -EMPLOYMENT BENEFITS:
a. Plan Description:
In addition to the pension benefits described in Note 9, 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 (Ca1PERS).
All full-time or part-time employees who meet the eligibility requirements for this program
may continue their medical coverage through the Ca1PERS 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 CAPERS at Lincoln Plaza North, 400
Q Street, Sacramento, CA 95811, or by visiting the Ca1PERS website at www.calpers.ca.gov.
Employees Hired Prior to January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CAPERS on or
after age 50 with at least 10 consecutive years of service with the City. Eligible employees
must be covered under the Ca1PERS Health Plan at the time of retirement and elect to
participate in the stipend program within 30 days of retirement.
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
13. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (Continued):
Employees Hired Prior to January 1, 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
Percentage
10 years of service
50%'
11 years of service
55%
12 years of service
60%
13 years of service
65%
14 years of service
70%
15 or more years of service
75%
Employees Hired On or After January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and 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:
Consecutive Years of Service at Retirement
Age
15
16
17
18
19
20
21
22
23
24
25+
50
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
51
10%
15%
20%
25%
30%
35%
40%
45%
50%
50%
50%
52
20%
25%
30%
35%
40%
45%
50%
50%
50%
50%
50%
53
30%
35%
40%
45%
50%
50%
50%
50%
50%
50%
50%
54
40%
45%
50%
50%
50%
50%
50%
50%
50%
50%
50%
55+
50%
50%
50%
50%
50%
50%
50%
50%
50%
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 15 in 2013 and $119 in 2014) for these employees.
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
13. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED):
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, 2014, the City
contributed $776,318 to the plan, which included $324,154 of the annual required contribution
and $452,164 pay-as-you-go premiums. 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)
$ 324,154
Interest on Net OPEB obligation (asset)
(562,609)
Adjustment to ARC
535,133
Annual OPEB cost
296,678
Contribution made
(776,318)
Decrease in Net OPEB obligation (asset)
(479,640)
Net OPEB obligation (asset) at June 30, 2013
(7,968,971)
Net OPEB obligation (asset) at June 30, 2014
$ (8,448,611)
The contribution rate of 2.96% is based on the ARC of $324,154, 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.
c. Annual OPEB Cost and Net OPEB Obligation (Asset):
For fiscal year 2014, the City's annual OPEB cost (expense) was $296,679. Information on the
annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation
(Asset) is available for June 30, 2014 and the two previous fiscal years, are presented below:
Fiscal
Year
Ended
6/30/2012
6/30/2013
6/30/2014
Annual
OPEB
Cost
$ 261,307
380,816
296,678
Actual
Contribution
(Net of
Adiustments'
$ 791,256
85,221
776,318
See independent auditors' report.
- 84 -
Percentage of
Annual
OPEB Cost
Contributed
303%
22%
262 %
Net OPEB
Obligation
(Asset)
$ (8,264,566)
(7,968,971)
(8,448,611)
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
13. OTHER POST -EMPLOYMENT BENEFITS (CONTINUED):
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 $11.23 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.
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, 2014, was 24 years.
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
14. 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, 2013 Additions
Reductions
June 30, 2014
One Year
2003 Assessment
Revenue Bonds
$ 2,460,000 S
S (215,000)
$ 2,245,000
S 230,000
AD 98-1 Limited Obligation
Refunding Bonds
475,000
- (100,000)
375,000
70,000
CFD 2005-1 Special Tax
Bonds Series 2006A
62,145,000
(7,500,000)
54,645,000
1,285,000
AD 2004-2 Limited Obligation
Improvement Bonds
27,260,000
- (2,870,000)
24,390,000
615,000
2008 Special Tax
Refunding Bonds
5,695,000
(965,000)
4,730,000
1,000,000
$ 98,035,000 S
- $ (11,650,000)
S 86,385,000
$ 3,200,000
The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special
Improvement Acts and the 1982 Mello -Roos Community Facilities Act (1982 Bonds). The City has
no liability to 1911 Act bondholders until assessments have been collected from the property
owner. Such liability is then recorded in the Agency Funds. Therefore, the 1911 Bonds are not
recorded as liabilities in the accompanying financial statements.
The City also has no liability to the 1915 Act bondholders or the bondholders of bonds issued
under the 1982 Mello -Roos Community Facilities Act until assessments are collected on the tax
rolls. However, the City may take certain actions to assume secondary liability for all or part of
1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are consummated.
Special assessment bonds payable, as described below, and are not recorded as long-term
liabilities, as these obligations do not constitute a debt or obligation of the City.
2003 Assessment Revenue Bonds
In June 2003, the Palm Desert Financing Authority issued $4,423,000 in 2003 Assessment
Revenue Bonds. The proceeds were used to purchase three series of limited obligation
improvement bonds issued by the City in connection with the financing and refinancing of certain
improvements of benefit to property within the City's Assessment District No. 94-2 (Sunterrace),
Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Undergrounding Assessment
District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide
funds for public improvements in the respective assessment districts.
See independent auditors' report.
am
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
14. SPECIAL ASSESSMENT DEBT (CONTINUED):
2003 Assessment Revenue Bonds (Continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
Principal
$ 230,000
155,000
160,000
170,000
175,000
680,000
675,000
$ 2,245,000
Interest
$ 110,604
101,286
93,489
85,154
76,356
260,638
95,003
$ 822,530
Total
$ 340,604
256,286
253,489
255,154
251,356
940,638
770,003
$ 3,067,530
As of June 30, 2014, the principal amounts to be repaid by each assessment district to pay off the
loans from the Financing Authority are as follows:
Assessment District 94-2
Assessment District 94-3
Assessment District 01-1
$ 80,000
585,000
1,590, 000
$ 2,255,000
See independent auditors' report.
9 MR
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
14. 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,
2015
2016
2017
2018
2019
Principal
$ 70,000
70,000
75,000
80,000
80,000
$ 375,000
Community Facilities District No. 2005-1
$ 16,680
13,399
9,908
6,080
2,040
$ 48,107
Interest Total
$ 86,680
83,399
84,908
86,080
82,040
$ 423,107
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.
See independent auditors' report.
::I
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
14. 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 1 and September
1, with principal maturing annually on September 1.
Debt service requirements to maturity are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2038
Principal
$ 1,285,000
1,345,000
1,410,000
1,480,000
1,550,000
8,975,000
11,550,000
14,995,000
12,055,000
$ 54, 645, 000
Interest
$ 2,823,985
2,762,784
2,697,633
2,627,662
2,553,186
11,501,098
8,861,530
5,351,195
1,104,6 82
$ 40,283,755
Total
$ 4,108,985
4,107,784
4,107,633
4,107,662
4,103,186
20,476,098
20,411,530
20,346,195
13,159,682
$ 94,928,755
See independent auditors' report.
:•
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
14. 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 $5,1 10,000 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
2015
$ 615,000
$ 1,198,563
$ 1,813,563
2016
590,000
1,172,360
1,762,360
2017
610,000
1,145,655
1,755,655
2018
640,000
1,117,210
1,757,210
2019
670,000
1,086,913
1,756,913
2020 - 2024
3,845,000
4,917,250
8,762,250
2025 - 2029
4,890,000
3,838,921
8,728,921
2030 - 2034
6,265,000
2,428,236
8,693,236
2035 - 2038
6,265,000
659,047
6,924,047
$ 24,390,000
$ 17,564,155
$ 41,954,155
See independent auditors' report.
.m
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
14. SPECIAL ASSESSMENT DEBT (CONTINUED):
2008 Special Tax Refunding Bonds
In December 2007, the City of Palm Desert Communities Facilities District No. 9 1 -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,
2015
2016
2017
2018
2019
2020 - 2021
Bond Reserve Requirements
Principal
$ 1,000,000
1,030,000
1,070,000
1,105,000
170,000
355,000
$ 4,730,000
Interest
$ 154,008
118,983
81,698
41,719
17,600
14,300
$ 428,308
Total
$ 1,154,008
1,148,983
1,151,698
1,146,719
187,600
369,300
$ 5,158,308
At June 30, 2014, 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
$ 37,500
224,500
4,108,985
1,813,563
921,126
Actual
$ 88,299
313,626
4,157,185
1,944,103
1,001,822
See independent auditors' report.
-91-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
15. 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, 2014, the outstanding amount was
$16,595,000.
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 Sheriff's 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, 2014,
the outstanding amount was $51,585,000.
See independent auditors' report.
-92-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
16 OTHER DISCLOSURES:
The Palm Desert Recreational Facilities Corporation has a deficit of $1,515,951, 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 $179,942, 806, 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.
17. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS:
Construction Commitments
Primary Government
Project
Parks and recreation
Low income housing
Street resurfacing
Street improvements
Freeway on -ramp improvements
Desert Willow capital improvements
Public safety building improvements
Recycle projects
Community development planning
CDBG
CV Link Public Outreach
Governmental Software Implementatio
Tourism/E-Gov Websidte Design
Miscellaneous non construction
Current
Year
Spent
$ 216,013
7,138
1,460,629
85,259
2,411,392
48,219
10,540
11,830
52,128
149,400
133,576
i 96,918
4,683,042
406
$ 4,683,448
Spent
to Date
$ 107,661
52,415
1,656,969
17,010
173,480
2,007,535
$ 2,007,535
Remaining
Commitment
$ 193,439
69,362
2,019,401
172,653
6,192,816
54,281
4,960
68,170
822,564
67,323
157,425
89,127
50,000
9,961,521
38,730
$ 10,000,251
See independent auditors' report.
- 93 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
17. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS (CONTINUED):
Construction Commitments (Continued)
Fiduciary Funds
Current
Year
Project Spent
Low income housing $ 178,220
Street improvements -
Residential street construction -
Spent Remaining
to Date Commitment
$ 275,872
14,829
178,220 290,701
$ 103,709
172,072
667,246
943,027
Miscellaneous non construction 225,059 499,867 105,285
$ 403,279 $ 790,568 $ 1,048,312
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES:
The 2011 Dissolution Act required each California redevelopment agency to suspend nearly all
activities except to implement existing contracts, meet already -incurred obligations, preserve its
assets and prepare for impending dissolution.
In 2012 AB 1484 made technical and substantive amendments to the Dissolution Act based on
experience to -date at the state and local level in implementing the Dissolution Act.
Under the Dissolution Act, each California redevelopment agency (each a "Dissolved RDA") was
dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA,
together with other designated entities, have initiated the process under the Dissolution Act to
unwind the affairs of the Dissolved RDA. A successor agency was created for each Dissolved RDA
which is the sponsoring community of the Dissolved RDA unless it elected not to serve as the
successor agency. On August 25, 2011, the City elected to serve as the Successor Agency to the
Palm Desert Redevelopment Agency (the Successor Agency).
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, added by AB 1484, 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.
See independent auditors' report.
-94-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES (CONTINUED):
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 and oversight boards 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 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. AB 1484 modified and provided some
clarifications on the treatment of housing assets under the Dissolution Act. 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.
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 in fiscal
year 2011-2012. In fiscal year 2012-2013, the assets and obligations of the former low and
moderate income housing fund were transferred to the Low and Moderate Income Housing Asset
Special Revenue Fund. The transfer was reported as an extraordinary loss in the financial
statements of the City. 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 and AB 1484 also establish roles for the County Auditor -Controller (the
"CAC"), the California Department of Finance (the "DOF") and the California State Controller's
office in the dissolution process and the satisfaction of enforceable obligations of the Dissolved
RDAs.
The County Auditor -Controller 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 deposit in the RPTTF fund is to be used
to pay to the Successor Agency the amounts due on the Successor Agency's enforceable
obligations received in January and June.
See independent auditors' report.
-95-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES (CONTINUED):
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 six month period. The ROPS is submitted to the CAC & DOF for
consideration. The CAC will make payments to the Successor Agency from the RPTTF fund based
on the ROPS amount approved by the DOF. The ROPS is prepared in advance for the enforceable
obligations due over the next six months.
As part of the dissolution process AB 1484 required the Successor Agency to have due diligence
reviews of both the low and moderate income housing funds and all other funds to be 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 County of Riverside based on the final
determination by the Department of Finance.
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 on the ROPS, as an enforceable obligation,
provided the oversight board makes a finding that the loan was for legitimate redevelopment
purposes. Loan repayments could begin in the 2014-15 fiscal year as governed by the criteria in the
health and code safety section. When the repayments begin, 20% of the repayments of the loan
agreement amounts are to be allocated to the Low Moderate Housing Asset Special Revenue Fund.
At June 30, 2013, 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.
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.
See independent auditors' report.
.m
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES (CONTINUED):
The Successor Agency's use and disposition of all properties held (Long Range Property
Management Plan), (the 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.
Management believes, in consultation with legal counsel, that the obligations of the Dissolved
RDA due to the City, with respect to loans, are valid enforceable obligations payable by the
Successor Agency under the requirements of the Dissolution Act and AB 1484 upon approval by
the oversight board and Department of Finance. It is reasonably possible that a legal determination
may be made at a later date by an appropriate judicial authority that would resolve this issue
unfavorably to the C ity.
19. 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:
Notes Receivable
On April 21, 2003, the Agency entered into a loan agreement with The Regents of the University
of California, on behalf of its Riverside Campus, to loan various amounts over a period of time, not
to exceed an aggregate amount of $2,000,000. Proceeds of the loan are to be used for capital
improvements at the University's Riverside Campus. The outstanding principal balance and
interest on the note is due in five annual payments beginning on July 15, 2009. This note was paid
off during the fiscal year.
See independent auditors' report.
-97-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Advances To/From the City of Palm Desert
The composition of advances as of June 30, 2014, was as follows:
Advances From Advances To Amount
General Fund Successor Agency $ 9,236,000
Other Governmental Funds Successor Agency 13A19,000
Subtotal 22,655,000
Low Moderate Housing Asset
Special Revenue Fund Successor Agency 17,821,288
Total S 40,476, 288
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.
AB 1484 specifies the actions to be taken and the method of repayment for advances by the
Successor Agency (former Redevelopment Agency) to the various funds of the City. Upon
application and approval by the successor agency and approval by the oversight board, loan
agreements (advances) 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 from origination at the interest rate earned by funds deposited into
the Local Agency Investment Fund.
The advances are to be repaid with a defined schedule over a reasonable term of years at an interest
rate not to exceed the interest rate earned by the funds deposited into the Local Agency Investment
Fund. The annual advances repayments are subject to certain limitations. Advance repayments
shall not be prior to the 2014-2015 fiscal year, are subject to a formula distribution, and have a
lower priority for repayment as described in AB 1484 (Health and Safety Code Section
34191.4(2)(A).
See independent auditors' report.
�•
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Advances To/From the City of Palm Desert (Continued)
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). Management believes, in consultation with legal counsel, that the obligations of the
Dissolved RDA due to the City are valid enforceable obligations payable by the Successor Agency
under the requirements of the Dissolution Act and AB 1484 and has not recorded an allowance for
uncollectible advances. The City's position on this issue is not a position of settled law and there is
considerable legal uncertainty regarding this issue. It is reasonably possible that a legal
determination may be made at a later date by an appropriate judicial authority that would not be in
favor of the City.
Capital Assets
Balance at
Balance at
July I, 2013
Transfers Additions
Deletions June 30, 2014
Capital assets, not
being depreciated:
Land
$ 57,145,122
$ (5,049,138) S
$ (705,793) $ 51,390,191
Construction -in -progress
214,571
277,772
492,343
Total capital assets, not
being depreciated
57,359,693
(5,049,138) 277,772
(705,793) 51,892,534
Capital assets, being
depreciated:
Buildings
2,525,364
(1,575,588) -
949,776
Improvements other
than buildings
5,048,117
5,048,117
Total capital assets,
being depreciated
7,573,481
(1,575,588)
5,997,893
Less accumulated
depreciation for:
Buildings
(360,924)
234,463
(63,134)
(189,595)
Improvements other
than buildings
(3,568,013)
-
(252,406)
(3,820,419)
Total accumulated
depreciation
(3,928,937)
234,463
(315,540)
(4,010,014)
Capital assets, being
depreciated, net
3,644,544
(1,341,125)
(315,540)
1,987,879
Capital assets, net -
Governmental Activities
$ 61,004,237 $
(6,390,263)
$ (37,768) $
(705,793) $ 53,870,413
See independent auditors' report.
-99-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2014, 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, 2013
Accretion
Reductions
June 30, 2014
One Year
$ 22,070,000
$
$ -
$ 22,070,000
$ -
19,000,000
-
(6,340,000)
12,660,000
-
16,495,000
-
(1,210,000)
15,285,000
1,235,000
46,505,000
-
(2,745,000)
43,760,000
2,905,000
16,970,000
(3,100,000)
13,870,000
3,230,000
10,385,000
-
(835,000)
9,550,000
870,000
15,745,000
-
-
15,745,000
-
57,221,308
972,556
(2,125,000)
56,068,864
2,275,000
3,690,000
-
(120,000)
3,570,000
120,000
15,742,288
261,512
(285,000)
15,718,800
330,000
7,950,000
-
(145,000)
7,805,000
360,000
12,905,000
-
(365,000)
12,540,000
375,000
18,977,673
346,980
(825,000)
18,499,653
760,000
9,450,000
-
(320,000)
9,130,000
330,000
66,680,000
-
(5,235,000)
61,445,000
5,505,000
339,786,269
1,581,048
(23,650,000)
317,717,317
18,295,000
5,472,428
-
(475,703)
4,996,725
-
$345,258,697
$ 1,581,048
$ (24,125,703)
$322,714,042
$18,295,000
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.
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
There are unspent bond proceeds remaining with respect to each of the following series of tax
allocation bonds:
• Project Area No. 1 Series 2006 A
• Project Area No. I Series 2007
• Project Area No. 2 Series 2006 A, B & D
• Project Area No. 3 Series 2003
• Project Area No. 3 Series 2006 A B & C
• Project Area No. 4 Series 2001
• Project Area No. 4 Series 2006 A & B
• Housing Set Aside Series 2007
California Health and Safety Code Section 34177(i) requires successor agencies to use bond
proceeds for the purposes for which bonds were sold unless the purposes can no longer be
achieved, in which case the proceeds may be used to defease the bonds. Although the powers of
successor agencies are severely restricted under the Dissolution Act in terms of ability to enter into
new contracts, California Health and Safety Code Section 34191.4, added by AB 1484, appears to
provide additional guidance and authority. Pursuant to Section 34191.4, if the Successor Agency
receives a finding of completion from the California Department of Finance, which is predicated
upon completion of a number of required payments and transfer in furtherance of the wind down
process under the Dissolution Act, notwithstanding any other provision of law, bond proceeds
derived from bonds issued on or before December 31, 2010 that are in excess of the amounts
needed to satisfy approved enforceable obligations must thereafter be expended in a manner
consistent with the original bond covenants and may include the expenditure of funds to complete
the projects that are the subject of the enforceable obligations or the creation of reserves therefore.
Additionally, there is a statement in the Dissolution Act that expenditures made pursuant to this
provision shall constitute the creation of excess bond proceeds obligations to be paid from the
excess proceeds. As this is a new provision of law, there is considerable legal uncertainty
regarding the actual application of this provision. In any event, if remaining bond proceeds cannot
be spent in a manner consistent with the bond covenants, Section 34191.4 additionally provides
that the remaining bond proceeds must be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation. The Successor Agency received a finding
of completion in a letter dated May 15, 2013 from the California Department of Finance which
allowed the Successor Agency to utilize proceeds from bonds issued prior to January 1, 2011 in a
manner consistent with the original bond covenants.
See independent auditors' report.
- 101 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
On November 8, 2010, Ambac Financial Group, Inc. ("Ambac Group"), whose principal operating
subsidiary, Ambac Assurance Corporation, is a guarantor of public finance and structured finance
obligations, announced that it filed for a voluntary petition for relief under Chapter 11 of the United
States Bankruptcy Code ("Bankruptcy Code") in the United States Bankruptcy Court for the Southern
District of New York ("Bankruptcy Court"). Ambac Group will continue to operate in the ordinary
course of business as "debtor -in -possession" under the jurisdiction of the Bankruptcy Court and in
accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy
Court. On May 1, 2013, Ambac Group completed its financial restructuring and emerged from
Chapter 11 bankruptcy.
On February 18, 2009, MBIA announced the restructuring of its financial guaranty insurance
operations into two separately capitalized sister companies, with one entity (MBIA Illinois) assuming
the risk associated with its US municipal exposures, and the other (MBIA Corp) insuring the remainder
of the portfolio. Subsequent to the restructuring of MBIA, Moody's Investor Service (Moody's) assign
ratings to the reinsured municipal securities based on the higher of (a) the insurance financial strength
rating of MBIA Illinois, to `Baal'; or (b) the published underlying rating. Subsequent to the
restructuring of MBIA, S&P assigned its insurance financial strength rating of MBIA Illinois to `AA -
minus'. Effective March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee
Corporation ("NPFGC").
National Public Finance Guarantee Corporation (formerly MBIA Illinois), an insurance subsidiary of
MBIA, which assumes the risk associated with U.S. municipal exposures, financial strength credit
ratings was raised to A3 on May 31, 2014 by Moody's.
The Redevelopment Plans for the Dissolved RDA's project areas set forth certain limitations on the
maximum aggregate amount of tax increment that the Dissolved RDA could have received with
respect to each project area, or if applicable, each component area of the project area (each, a "TI
Cap"). Upon reaching the TI Cap, the Dissolved RDA would not be able to receive any additional
tax increment derived from the project area (or component area, as the case may be) to pay
outstanding debt. Based on projections done before the enactment of the Dissolution Act, the
Dissolved RDA expected that the TI Cap for the Amended Territory of Project Area No. 1 would
be reached around fiscal year 2021-22, before the final maturity date of the bonds issued for
Project Area No. 1. The Dissolved RDA planned and expected to use excess tax increment from
Project Area No. 1 to call bonds before reaching the TI Cap to avoid any bond defaults. After the
enactment of the Dissolution Act, it is uncertain whether the TI Cap is still in effect and, if so, how
to properly calculate whether the TI Cap has been reached. (For example, it is unclear if the
calculation should be based on the total deposit into the Redevelopment Property Tax Trust Fund
("RPTTF") or on the actual dollar received by the Successor Agency for enforceable obligations).
See independent auditors' report.
- 102 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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 satistied".
Standard & Poor's Ratings Services ("Standard & Poor's") has lowered its underlying rating from "A"
to "A" on the following issues of bonds issued by the Authority: (1) the Authority's Tax Allocation
Revenue Bonds (Project Area No. 1, as Amended), 2006 Series A (the "2006A Authority Bonds"),
(ii) the Authority's Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as Amended),
2006 Series B (Taxable) (the "2006B Authority Bonds", and together with the 2006A Authority Bonds,
the "2006 Authority Bonds"), and (iii) the Authority's Tax Allocation Refunding Revenue Bonds
(Project Area No. 1, as Amended), 2007 Series A (the "2007 Authority Bonds").
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 refundin T of a like portion of the
prior bonds. The remainder was used to fund various redevelopment capita 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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
Principal
Interest
1,114,665
- 1,114,665
- 1,114,665
- 1,114,665
- 1,114,665
4,780,000 5,573,325
14,830,000 2,515,060
Total
$ 1,114,665
1,114,665
1,114,665
1,114,665
1,114,665
10,353,325
17,345,060
2,460,000 125,460 2,585,460
$ 22,070,000 $ 13,787,170 $ 35,857,170
See independent auditors' report.
- 103 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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 1 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
2015
$ -
2016
-
2017
-
2018
-
2019
-
2020 - 2024
-
2025 - 2029
9,875,000
2030
2,785,000
$ 12,660,000
See independent auditors' report.
Interest Total
$ 633,000
633,000
633,000
633,000
633,000
3,165,000
2,454,000
139,250
$ 8,923,250
$ 633,000
633,000
633,000
633,000
633,000
3,165, 000
12,329,000
2,924,250
$ 21,583,250
- 104 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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,
2015
2016
2017
2018
2019
2020 - 2024
2025
Principal
$ 1,235,000
1,280,000
1,335,000
1,460,000
1,420,000
7,295,000
1,260,000
$ 15,285,000
$ 728,588
676,100
618,500
558,425
490,900
1,400,100
63,000
$ 4,535,613
Interest Total
$ 1,963,588
1,956,100
1,953,500
2,018,425
1,910, 900
8,695,100
1,323,000
$ 19,820,613
See independent auditors' report.
- 105 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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
$11,320,000 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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
See independent auditors' report.
Principal
$ 2,905,000
3,075,000
1,000,000
1,005,000
5,065,000
25,300,000
5,120,000
290,000
$ 43,760,000
Interest
$ 2,262,482
2,093,410
1,914,445
1,864,445
1,811,683
4,821,000
601,818
13,775
$ 15,383,058
Total
$ 5,167,482
5,168,410
2,914,445
2,869,445
6,876,683
30,121,000
5,721,818
303,775
$ 59,143,058
- 106 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation Refunding Revenue Bonds (Proiect Area No. 1, as amended) 2007 Series A
On January 9, 2007, the Palm Desert Financing Authority issued $32,600,000 Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2007 Series A. The Palm Desert
Financing Authority loaned the bond proceeds to the 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 1, 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,
2015
2016
2017
2018
Principal
$ 3,230,000
3,390,000
3,570,000
3,680,000
$ 13,870,000
$ 686,000
532,000
362,500
184,000
$ 1,764,500
Interest Total
$ 3,916,000
3,922, 000
3,932,500
3,864,000
$ 15,634,500
See independent auditors' report.
- 107 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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
2015
$ 870,000
2016
910,000
2017
955,000
2018
995,000
2019
1,050,000
2020 - 2023
4,770,000
$ 9,550,000
See independent auditors' report.
- 108 -
Interest Total
$ 436,113
397,388
355,403
309,806
261,238
491,150
$ 2,251,098
$ 1,306,113
1,307,388
1,310,403
1,304,806
1,311,238
5,261,150
$ 11,801,098
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2029 - 2034
Principal
875,000
6,275,000
8,595,000
$ 15,745,000
Interest
$ 769,006
769,006
769,006
769,006
769,006
3,825,344
2,981,347
1,117,625
$ 11,769,346
Total
$ 769,006
769,006
769,006
769,006
769,006
4,700, 344
9,256,347
9,712,625
$ 27,514,346
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D
On July 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 2 $41,340,000
Tax Allocation Refunding Revenue Bonds 2006 Series A, $1,567,118 Tax Allocation Revenue
Capital Appreciation Bonds 2006 Series B, $7,775,000 Tax Allocation Revenue Bonds 2006
Series C and $16,936,095 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006
Series D. The Palm Desert Financing Authority loaned the bond proceeds to the 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 $1,567,119
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, 2014 is $6,336, 203.
See independent auditors' report.
- 110-
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2037
Principal
$ 1,759,238
1,108,312
1,208,650
1,299,414
1,362,179
8,275,330
10,334,204
10,745,785
13,639,549
$ 49,732,661
$ 2,394,399
2,059,088
2,104,238
2,172,011
2,238,134
12,352,673
12, 746, 925
10,327,123
4,119,557
$ 50,514,148
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3)
Interest Total
$ 4,153,637
3,167,400
3,312,888
3,471,425
3,600,313
20,628,003
23,081,129
21,072,908
17,759,106
$ 100,246,809
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.
See independent auditors' report.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Proiect 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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2033
Principal
$ 120,000
125,000
130,000
140,000
145,000
820,000
1,050,000
1,040, 000
$ 3,570,000
$ 173,272
168,473
163,348
157,888
151,868
656,858
433,063
136,581
$ 2,041,351
Interest Total
$ 293,272
293,473
293,348
297,888
296,868
1,476, 858
1,483,063
1,176,581
$ 5,611,351
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.
See independent auditors' report.
- 112 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 3 Tax Allocation Revenue Bonds 2006 Series A, Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital Appreciation
Bonds 2006 Series C (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, 2014 is $1,690,085.
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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2039
2040 - 2041
Principal
$ 285,721
309,731
329,787
344,954
369,116
1,750,563
1,901,982
2,761,861
4,055,000
1,920,000
$ 14,028,715
$ 578,154
585,687
601,495
616,977
632,690
3,764,087
4,098,668
4,012,927
1,102, 063
145,250
$ 16,137,998
Interest Total
$ 863,875
895,418
931,282
961,931
1,001,806
5,514,650
6,000, 650
6,774,788
5,157,063
2,065,250
$ 30,166,713
See independent auditors' report.
- 113 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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 1 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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
See independent auditors' report.
Principal
$ 360,000
375,000
400,000
410,000
430,000
2,545,000
3,285,000
$ 7,805,000
$ 394,973
376,375
356,678
336,005
314,340
1,198,990
444,470
$ 3,421,831
Interest Total
$ 754,973
751,375
756,678
746,005
744,340
3,743,990
3,729,470
$ 11,226,831
- 114 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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 I 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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2032
Principal
$ 375,000
390,000
400,000
435,000
450,000
2,565,000
3,200,000
4,725,000
$ 12,540,000
$ 584,038
567,322
549,825
531,073
510,940
2,214,740
1,533,120
347,160
$ 6,838,218
Interest Total
$ 959,038
957,322
949,825
966,073
960,940
4,779,740
4,733,120
5,072,160
$ 19,378,218
See independent auditors' report.
- 115 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation Refunding Revenue Bonds (Proiect Area No. 4) 2006 Series A and Tax Allocation
Revenue Capital Appreciation Bonds (Project Area No. 4) Series B
On July 25, 2006, the Palm Desert Financing Authority issued $14,610,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A and $4,633,089 of Tax Allocation
Revenue Capital Appreciation Bonds (Project Area No. 4) 2006 Series B. The Palm Desert
Financing Authority loaned the bond proceeds to the 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 I 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, 2014 is $2,290,665.
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
2015
$ 718,718
$ 599,477
$ 1,318,195
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 - 2024
2,367,037
2,891,481
5,258,518
2025 - 2029
4,290,643
3,288,956
7,579,599
2030 -2034
5,816,888
7,561,987
13,378,875
2035
1,900,663
2,102,837
4,003,500
$ 16,208,988
$ 18,632,040
$ 34,841,028
See independent auditors' report.
- 116 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. 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 1 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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2032
Principal
$ 330,000
345,000
360,000
375,000
395,000
2,280,000
2,915,000
2,130,000
$ 9,130,000
Interest
$ 432,848
419,004
404,019
388,029
370,891
1,550,077
911,625
163,250
$ 4,639,743
Total
$ 762,848
764,004
764,019
763,029
765,891
3,830,077
3,826,625
2,293,250
$ 13,769,743
See independent auditors' report.
- 117 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation (Housing Set -Aside) Refunding Revenue Bonds Series 2007
On February 7, 2007, the Palm Desert Financing Authority issued $86,155,000 Tax Allocation
(Housing Set -Aside) Refunding Revenue Bonds Series 2007. The 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,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2028
See independent auditors' report.
Principal
$ 5,505,000
5,785,000
6,085,000
6,395,000
6,720,000
17,905,000
13,050,000
$ 61,445,000
Interest
$ 2,813,563
2,531,313
2,234,563
1,922,563
1,594,688
4,549,031
1,139,000
$ 16,784,721
Total
$ 8,318,563
8,316,313
8,319, 563
8,317,563
8,314,688
22,454,031
14,189,000
$ 78,229,721
- 118 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2014
20. SUBSEQUENT EVENTS:
On September 2, 2014, the EIP Series 2009 Lease Revenue Bonds outstanding in the amount of
$4,655,000 were called for redemption.
Events occurring after June 30, 2014 have been evaluated for possible adjustments to the financial
statements or disclosure as of November 17, 2014, which is the date these financial statements
were available to be issued.
See independent auditors' report.
- 119 -
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- 120 -
Schedule l
CITY OF PALM DESERT
SCHEDULES OF FUNDING PROGRESS
For the year ended June 30. 2014
CAPERS DEFINED BENEFIT PLAN
Entry Age
Normal
Accrued
Actuarial Value
Unfunded
UAAL as a
Actuarial
liability
of Assets
AAI,
Funded
Covered
% of Covered
Valuation
(AAL)
(AVA)
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(a) - (b)
(b)/(a)
(c)
[(a)-(b)l/(c)
06/30/06
$ 52,739,452
$ 40.523,105
$ 12.216,347
76.84%
$ 1 1.845,746
103.13%
06/30/07
61,535.809
46,180,367
15,355,442
75.05%
13,263,198
115.77%
06/30/08
67,979,926
51,813,257
16,166,669
76.22%
14,608,384
110.67%
06/30/09
79,133,393
57,022,230
22,1 1 1,163
72.06%
15,212,102
145.35%
06/30/10
87,876.959
61,203.162
26,673,797
69.65%
13.489,043
197.74%
06/30/11
92,858.742
65,483,444
27,375,298
70.52%
12,255,086
223.38%
06/30/12
99,232,017
69,236,481
29,995,536
69.77%
10,754,242
278.92%
06/30/13
103,058,158
64.819,620
38,238,538
62.90%
10387,145
354.48%
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%
See independent auditors' report.
IME
THIS PAGE INTENTIONALLY LEFT BLANK
- 122 -
Fund balance, July I
Resources (inflows):
Taxes
Licenses and permits
Intergovernmental revenues
Rental income
Charges of services
Fines and forfeitures
Investment earnings
Miscellaneous
Transfers from 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
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE:
GENERAL FUND
For the year ended June 30, 2014
Budgeted Amounts
Original Final
Schedule 2
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 76,214,930 $ -
40,938,000
42,213,000
42,296,613
83,613
1,185,000
1,785,000
1,834.215
49.215
660,000
660,000
1,844.327
1,184.327
165,000
165,000
148,633
(16,367)
705,000
11405,000
1,439.278
34,278
110,000
110,000
100.393
(9,607)
170,000
170,000
405,456
235.456
347,000
347,000
654,726
307,726
2,237,500
2,237,500
1,373.786
(863.714)
46,517,500
49,092,500
50,097,427
1,004,927
12,760,222
15,446,849
14,874,403
572,446
19,532,418
19,172,422
19.090.260
82,162
7,761,327
7,567,229
6,386,036
1,181,193
3,708,493
3,849,242
3,772,021
77.221
-
90,000
60.939
29.061
2,746,234
4,046,234
3,754.752
291.482
46,508,694
50,171,976
47,938,411
2,233,565
8,806
(1,079,476)
2,159,016
3,238,492
$ 76,223,736
$ 75,135,454
$ 78,373.946
$ 3,238.492
See independent auditors' report and note to required supplementary information.
-123-
Fund balance, July 1
Resources (inflows):
Taxes
Special assessments collected
Intergovernmental revenues
Investment earnings
Miscellaneous
Transfers in
Total resources
Charges to appropriations (outflows):
C urrent:
Public safety
Capital outlay
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance. June 30
Schedule 3
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX SPECIAL REVENUE FUND
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 2,582,655 $ 2,582.655 $ 2,582,655 $ -
4,800,000
4,800,000
2.200,000
2,200,000
820,000
820,000
2,000
2,000
10,000
10,000
1,553,000
1,553,000
9,385,000
9,385.000
5,036,055
236,055
2,114.822
(85,178)
883,935
63,935
3,678
1,678
17,500
7.500
9,608,990 223,990
9,858,359
9,866,845
9,728,650
138,195
14,450
14,450
4,325
10,125
(487,809) (496,295) (123,985)
$ 2,094,846 $ 2,086,360 $ 2,458,670 $
See independent auditors' report and note to required supplementary information.
- 124 -
372,310
CITY OF PALM DESERT
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2014
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
See independent auditors' report.
- 125 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 126 -
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.
- 127 -
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
Fund balance, July 1
Resources (inflows):
Tares:
Property taxes
Property transfer tax
Property tax in lieu
Timeshare mitigation fee
Sales tax
Business license tax
Job valuation fees
Transient occupancy tax
Franchises
Penalties and interest on taxes
Total Taxes
Licenses and Permits:
Building permits
Grading permits
Encroachment permits
Miscellaneous permits
Business regulatory permits
Valet parking permits
Total Licenses and Permits
Intergovernmental Revenues:
Grants
Motor vehicle in -lieu fees
Monthly parking ball
Reimbursement RDA costs
Other reimbursements
Total Intergovernmental Revenues
See independent auditors' report.
For the year ended June 30, 2014
Budgeted Amounts Actual
Original Final Amounts
Schedule 4
Variance with
Final Budget
Positive
(Negative)
5,573,000
5,773,000
5,546,341
(226,659)
500,000
500,000
530,556
30,556
3,490,000
3,490,000
3,495,087
5,087
1,265,000
1,265,000
1,333,586
68.586
17,500,000
17,200,000
17,258.958
58,958
1,250,000
1,250,000
1,169,316
(80,684)
20,000
20,000
37.141
17.141
8,425,000
9,800,000
9,855,509
55.509
2,900,000
2,900,000
3.007,215
107,215
15,000
15,000
62,904
47.904
40,938,000
42,213,000
42,296,613
83.613
1,030,000
1,630,000
1,676.654
46,654
4,500
4,500
18,649
14,149
100,000
100,000
98,728
(1.272)
-
-
2,215
2.215
50,000
50,000
37,444
(12,556)
500
500
525
25
1,185,000
1,785,000
1,834,215
49,215
-
-
133
133
30,000
30,000
22,089
(7,911)
20,000
20,000
12.782
(7,218)
-
-
1,056,116
1,056,116
610,000
610,000
753,207
143.207
660,000
660,000
1,844,327
1,184.327
(Continued)
- 128 -
Schedule 4
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
(CONTINUED)
Resources (inflows) (Continued):
Rental income
Charges for Services:
Subdivision tees
Zoning tees
Plan check tees
Sale of maps and publications
Microfilm fees
Other tees
Total Charges for Services
Fines and Forfeitures:
Vehicle code fines
Municipal court tines
VICR fees
Total Fines and Forfeitures
Investment Earnings:
Interest income
Interest on notes receivable
Total Investment Earnings
Miscellaneous Revenues:
Code compliance
Strong motion instrument ice
Special investigation fee
Certificate of compliance fee
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, 2014
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 165,000
$ 165,000
$ 148,633
$ (16,367)
200,000
400,000
421,237
21,237
120,000
270,000
237,876
(32,124)
300.1000
650,000
662,893
12.893
15,000
15,000
12.677
(2,323)
15,000
15,000
8,940
(6,060)
55,000
55,000
95,655
40,655
705,000
1,405,000
1,439.278
34,278
15,000
15,000
21.790
6.790
25,000
25,000
10,283
(14,717)
70,000
70,000
68,320
(1,680)
110,000
110,000
100.393
(9,607)
90,000
90,0()0
301,487
211,487
80,000
80,000
103,969
23.969
170,000
170,000
405.456
235,456
1,000
1,000
10,985
9,985
5,000
5,000
11,422
6,422
5,000
5,000
7.719
2,719
1,000
1,000
1.175
175
60,000
60,000
28,097
(31.903)
40,000
40,000
73,686
33.686
115,000
115,000
293,349
178.349
120,000
120,000
228,293
108,293
347,000
347.000
654.726
307,726
2.237,500
2,237,500
1,373,786
(863,714)
46,517,500
49,092,500
50,097.427
1,004,927
See independent auditors' report.
- 129 -
(Continued)
Schedule 4
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2014
Charges to appropriations (outtlows):
General Government - Departmental:
City council
City clerk
Legislative advocacy
City attorney
Legal special services
City manager
Community services
Finance
Auditing
Human resources
General services
Information technology
Unemployment insurance
Insurance
Community promotions
Community development
Economic development center
Marketing
Total General Government - Departmental
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 238,653
$ 258,653
$ 230.464
$ 28,189
940,496
952,496
936,942
15,554
36,500
36.500
36.180
320
244,000
244,000
237.984
6,016
335,000
335,000
264,358
70,642
1,058,555
1,139,799
1,014,562
125,237
417,517
439,117
438.902
215
1,952,219
1,981,219
1,980.230
989
63,000
69A00
69,311
89
502,011
502,011
476,529
25.482
587,000
484,000
472,167
11,833
818,917
843,917
773,899
70,018
50,000
25,000
21,215
3.785
539,000
461,000
460,835
165
655,125
685,125
618,138
66.987
1,979,935
1,903,668
1,876,415
27,253
755,417
780,417
779.996
421
956,877
906,877
873,033
33,844
12,130,222
12,048,199
11,561,160
487,039
General Government - Nondepartmental:
Retiree funding - 2,700,000 2,700,000 -
Contributions to other agencies 630,000 698,650 611243 85,407
Total General Government - Non departmental 630,000 3,398,650 3,313,243 85,407
Total General Government 12,760,222 15,446,849 14,874,403 572,446
Public Safety:
Police services
17,392,606
16,873,909
16,830,999
42,910
Animal regulation
250,606
250.606
220.640
29,966
Traffic safety
263.380
263,380
254,703
8,677
Building and safety
1,625,826
1,784,527
1,783,918
609
Total Public Safety
19,532,418
19,172,422
19,090,260
82.162
See independent auditors' report. (Continued)
- 130 -
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2014
Budgeted Amounts
Original
Final
Charges to appropriations (outflows) (Continued):
Public Works:
Administration
$ 2,665,593
$ 2,605,593
Street maintenance
2,624,295
2,807,878
Street resurfacing
1,000,000
1,055,257
Curb and gutter
25,000
25,000
Parking lot
-
47,062
Stripping
250,000
5,000
Corporate yard
67,755
65,500
Building maintenance
593,184
473,184
Portola community center
65,500
67,755
Auto equipment
410,000
350,000
Storm water permit
60,000
65,000
Total Public Works
7,761,327
7.567,229
Parks, Recreation and Culture:
Park maintenance
Civic center park
Landscape service
Visitors center
Total Parks, Recreation and Culture
Capital Outlay - Departmental
Transfers to other funds
Amounts Charged to Appropriation
Excess of resources over (under)
charges to appropriations
Fund balance, June 30
743,000
926,710
1,671,624
762.115
943,451
1,840,517
Actual
$ 2,556,967
2,806,168
4.466
25,000
8,117
1.605
53.316
469,728
55,909
340.708
748,878
933.373
1, 796,672
Schedule 4
Variance with
Final Budget
Positive
(Negative)
$ 48.626
1,710
1,050.791
38,945
3,395
12.184
3,456
11,846
9.292
1,181,193
13,237
10,078
43.845
3,708,493
3,849,242
3.772,021
77.221
-
90,000
60,939
29.061
2,746,234
4,046,234
3,754.752
291,482
46,508,694
50,171,976
47,938.411
2,233.565
8,806
(1,079,476)
2,159.016
3,238.492
$ 76,223,736
$ 75,135,454
$ 78,373.946
$ 3,238,492
See independent auditors' report.
- 131 -
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- 132 -
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
- 133 -
Schedule 5
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2014
Total
Special
Debt
Capital
Other
Revenue
Service
Projects
Governmental
ASSETS:
Funds
Fund
Funds
Funds
Pooled cash and investments
S 37,465,378
$ 100,227
$ 15,368,038
S 52,933,643
Receivables
Accounts
431,751
-
16,924
448,675
Assessments
-
1,382,905
-
1,382 905
Interest
186,227
-
26,472
212,699
Loans
5,075,153
-
5,075,153
Prepaid costs
3,168
2,393
5,561
Inventories
4,035
-
-
4,035
Due from other governments
612,841
5,955
242,783
861,579
Due from other funds
1,512
-
500,000
501.512
Advances to Successor Agency
654,000
12,765,000
13,419,000
Restricted assets:
Cash and investments with fiscal agent
6,063,736
-
21 960,411
29,024,147
TOTAL ASSETS
$ 50,497.801
$ 1,489,087
$ 50,882,021
$ 102,868,909
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES.
Accounts payable
$ 698,449
$ 230
$ 182,160
S 880,839
Accrued liabilities
99,094
-
947
100,041
Due to other funds
194,873
2,553,000
2,747,873
Unearned revenues
86,022
137,713
223,735
Deposits payable
487,492
-
167.583
655,075
TOTAL LIABILITIES
1,565,930
230
3,041,403
4,607,563
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
179,894
1,382 905
-
1,562,799
FUND BALANCES:
Nonspendable
Prepaid costs
3,168
-
2,393
5,561
Restricted for
Capital projects
-
-
21,973,168
21973,168
Debt service
-
105,952
-
105,952
Low income housing
11,401,415
-
-
11.401,415
Public facilities
3,867,580
-
3,867,580
Public safety
941,462
-
941,462
Special programs
7,001,258
1,435,233
8,436.491
Street related purposes
3,893,026
3,893,026
Committed to.
Aquatic center
2,135,692
-
2,135,692
Capital asset replacement
11,875,488
11,875,488
Energy loan program
T632,888
-
7,632,888
Assigned to:
Capital projects
10963,431
10,963,431
Property acquisition
-
420,387
420,387
Public facilities
10,130,979
10,130,979
Special programs
-
667.255
667,255
Street related purposes
-
-
2,247,772
2,247,772
TOTAL FUND BALANCES
48,751,977
105,952
47,840,618
96,698,547
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
$ 50,497,801
S 1,489,087
S 50,882,021
$ 102,868,909
See independent auditors' report.
- 134 -
Schedule 6
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2014
Total
Special
Debt
Capital
Other
Revenue
Service
Projects
Governmental
Funds
Fund
Funds
Funds
REVENUES:
Tares
$ 589,491
$ -
$ -
$ 589,491
Special assessments collected
1,254,030
117,368
-
1,371,398
Licenses and permits
-
-
428,692
428,692
Intergovernmental revenues
3,431,271
-
434,883
3,866.154
Rental income
5,474,851
-
-
5,474,851
Charges for services
725,742
-
-
725,742
Investment earnings
121,189
466
134.891
256,546
Fines and forfeitures
131,375
-
-
131.375
Contributions from other governments
1,591,825
-
-
1,591,825
Contribution from property owners
-
-
420.590
420,590
Miscellaneous
219,753
-
1,584,269
1,804,022
TOTAL REVENUES
13,539,527
117,834
3,003,325
16,660,686
EXPENDITURES:
Current:
General government
1,298,967
12.904
884.542
2,196,413
I lousing and redevelopment
5,400,930
-
-
5,400,930
Public safety
320,825
-
-
320,825
Parks, recreation and culture
1,319,926
-
710,994
2,030,920
Public works
2,348,826
-
863,308
3,212,134
Contribution to property owners
-
-
2,3501,187
2,350,187
Capital outlay
870,151
-
618,172
1.488,323
Debt service:
Principal retirement
611,000
63,000
-
674.000
Interest and fiscal charges
162,818
79,677
-
242,495
TOTAL EXPENDITURES
12,333.443
155.581
5,427.203
17.916.227
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Sale of' property
Transfers in
Transfers out
TOTAL OTI IER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
1,206,084 (37,747) (2,423.878) (1,255,541)
1,418, 765
(893.299)
525,466
1,731,550
FUND BALANCES - BEGINNING OF YEAR 47,020,427
FUND BALANCES - END OF YEAR $ 48,751,977 $
See independent auditors' report.
- 911,001
911,001
- 516.000
1,934.765
- (776,000)
(1,669,299)
- 65 L001
1.176,467
(37,747) (1,772,877)
(79.074)
143,699 49,613,495
96,777,621
105,952 $ 47,840,618
$ 96,698,547
-135-
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- 136 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than
expendable trust that are legally restricted to expenditures for specific purposes.
Traffic Safety Fund - Traffic and court fines are collected in these funds. A transfer from this Fund to
the General Fund is made at the end of the fiscal year by council action to be applied toward the
eligible expenditures permitted by law.
Gas Tax Fund - Portions of the tax rate per gallon levied by the State of California on all gasoline
purchases are allocated to cities throughout the State. These funds are restricted to expenditure for
transit and street -related purposes.
Housing Mitigation Fee Fund - This fund is used to account for fees collected from construction of
commercial and office buildings for low and moderate income mitigation purposes to be used strictly
for projects and programs that benefit the low and moderate income households.
Community Development Block Grant Fund - This fund is used to account for the receipts and
expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development.
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.
Recycling - 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.
- 137 -
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- 138 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Public Safety Police Grants Fund - This fund is used to account for grants received from the U.S.
Department of Justice under the Local Law Enforcement Block 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 Lighting District Funds - These funds are used to account for expenditures and
receipts of property taxes and service fees levied to the property owners in the various landscaping and
lighting districts, which were formed to provide landscaping and street lighting maintenance.
Individual landscaping and lighting funds are set up for Districts No. 1 through 17.
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.
Energy Independence Loan Fund - This fund is used to provide funding for the AB811 Energy Loans
and collect assessments from those AB811 loans through property tax collections. The assessments
collected will be used to service debt issued and to provide additional funding for the AB81 1 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.
Housing Authority Fund - This fund is used to account for revenues and expenditures related to rental
units owned by the Housing Authority, established in January, 1998.
- 139 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
June 30, 2014
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Interest
Loans
Prepaid costs
Inventories
Due from other governments
Due from other funds
Advances to Successor Agency
Restricted assets:
Cash and investments with fiscal agent
TO"CAI, 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:
Prepaid costs
Restricted for:
Low income housing
Public facilities
Public safety
Special programs
Street related purposes
Committed to:
Aquatic center
Capital asset replacement
Energy loan program
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
See independent auditors' report.
Housing
Traffic
Mitigation
Safety
Gas Tax
Fee
$ -
$ 1,508,933
$ 2,423,612
10,327
155,586
-
$ 10,327
$ 1,664,519
$ 2,423,612
2,423,612
10,327 1,664,519 -
10,327 1,664,519 2,423,612
$ 10,327 $ 1,664,519 $ 2,423,612
- 140 -
Schedule 7
Community
New
Park and
Public
E1 Pasco
Development
Construction
Planned
Recreation
Traftic
Safety Police
Assessment
Block Grant
"rax
Drainage
facilities
Signals
Recycling
Grants
District
$ -
$ 679,742
$ 1,910,752
$ 1,129,627
$ 307,428
$ 4,195,534
$ 71,150
S 43,721
819
-
-
-
-
5
-
-
-
-
-
-
-
1.735
1,100
-
143,886
-
-
79,375
-
134,012
56,947
-
-
654.000
$ 144,705
$ 1,333.742
$ 1,910,752
$ 1,209,002
$ 307,428
$ 4,331.286
$ 129,197
$ 43,721
63,319 $ 32.037 $ - $ 3,872 $ - $ 38,804 $ 59,461 $ 9,432
- - - - - 875 - -
62.561 130.800 - - - _ _ _
- - - - - 3,607 62,837 -
125,880 162.837 - 3,872 - 43.286 122,298 9,432
1.735 1,100 -
1,170,905 - 1,205,130 - - - -
- - - - - 5,799 -
18,825 - - - - 4,286.265 - 34,289
- - 1,910,752 - 307,428 - - -
18,825 1,170.905 1,910,752 1.205,130 307,428 4,288,000 6,899 34,289
S 144,705 $ 1,333,742 $ 1,910,752 $ 1,209,002 $ 307,428 $ 4,331,286 $ 129,197 $ 43,721
(Continued)
- 141 -
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Interest
Loans
Prepaid costs
Inventories
Due from other governments
Due from other funds
Advances to Successor Agency
Restricted assets:
Cash and investments with fiscal agent
TOTAL, ASSETS
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
June 30, 2014
Landscape
Air
and Lighting
Quality
Districts Child Care
Management
Nos. l - 17 Program
348,835
$ 2,337,604 $ 1,491,545
Fire
Facilities
$ 935,663
16,092 16,616 - -
$ 364,927 $ 2,354,220 $ 1,491,545 $ 935,663
LIABILITIES, DEFERRED INFLOWS OF
RESOURCE'S AND FUND BALANCES
LIABILITIES:
Accounts payable $
19,197
$ 38,071 $ - $ -
Accrued liabilities
-
- - -
Due to other funds
-
- - -
Unearned revenues
-
- - -
Deposits payable
-
- - -
TOTAL LIABILITIES
19,197
38,071 - -
DE.FI:RRED INFLOWS OF RESOURCES:
Unavailable revenue
-
- - -
FUND BALANCES:
Nonspendable:
Prepaid costs
-
- - -
Restricted for:
Low income housing
-
- - -
Public facilities
-
- 1,491,545 -
Public safety
-
- - 935,663
Special programs
345,730
2.316,149 - -
Street related purposes
-
- - -
Committed to:
Aquatic center
-
- - -
Capital asset replacement
-
- - -
Energy loan program
-
- - -
TOTAL FUND BALANCES
345,730
2.316,149 1,491,545 935,663
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $
364,927
$ 2,354,220 $ 1,491,545 $ 935,663
See independent auditors' report.
REPS'
Schedule 7
Total
Energy
RDA
Other
Independence
Aquatic
Low Income
Housing
Special Revenue
Loan
Center
Housing
Authority
Funds
$ 373,447
$ 1,951,460
$ -
$ 17,756,325
$ 37,465,378
18,439
404,322
3.786
4,380
431,751
179.894
-
-
6,333
186.227
5,075,153
-
-
-
5,075,153
333
-
-
-
3,168
-
4.035
-
-
4,035
-
-
-
-
612,841
1,512
1,512
-
-
-
-
654,000
2.190,249
-
-
3,873,487
6,063,736
$ 7,937,515
$ 2,359,817
$ 3,786
$ 21,642,037
$ 50,497,801
24,400 $ 211,943 $ - $ 197,913 $ 698,449
- - 2,274 95,945 99,094
- 1,512 - 194,873
12,182 - 7,396 86,022
- - 487.492 487,492
24A00 224,125 3,786 788,746 1,565,930
179,894 - - - 179,894
333 - - - 3,168
8,977, 803 11,401.415
- - - 3,867,580
- - 941.462
- - 7.001,258
- - - 3,893.026
- 2,135,692 - - 2,135,692
- - - 11,875,488 11,875,488
7,632,888 - - - 7,632.888
7,633,221 2,135,692 - 20,853,291 48.751,977
$ 7,937,515 $ 2,359,817 $ 3,786 $ 21,642,037 $ 50,497,801
- 143 -
CITY OF PALM DESERT
COMBINING STATEMENTOF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
For the year ended June 30, 2014
RE,VE.NUES:
Taxes
Special assessments collected
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Contributions from other governments
Miscellaneous
TOTAL. REVENUES
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 OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES -
BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
See independent auditors' report.
I lousing
Traffic Mitigation
Safety Gas Tax Fee
$ 53,954
2,362,462 -
142 1,667 9,739
131,375 - -
125,849
- 1,304.800 -
131,517 1.059,329 (62.156)
(139,568) - -
(139,568) - -
(8,051) 1,059,329 (62,156)
18,378 605,190 2,485,768
10,327 $ 1,664.519 $ 2.423,612
l:LLE
Schedule 8
Community
New
Park and
Public
LI Paseo
Development
Construction
Planned
Recreation
Traffic
Safety Police
Assessment
Block Grant
Tar
Drainage
Facilities
Signals
Recycling
Grants
District
$ -
$ 275,579
$ 12,740
$ 1 W61 1
$ 18,991
S-
-
-
-
-
-
-
-
246,105
359,345
-
-
-
-
181,908
320,638
-
-
1,807
8.573
4,751
1,761
18,529
88
-
4.998
7,951
-
83,003
112,626
671
-
-
364,343
285,337
21,313
188,365
133,378
201,108
320,726
246,105
359,344 - - - - 542,585 - 248,100
- - - 320,825 -
- - 71.981 - 22,300 - -
44,086 6.627 - 266,967 179,670 - -
- 334,084 99,421 111,755 - - -
359,344 44,086 340,71 1 171,402 378,722 744,555 320,825 248,100
4.999 241,251 (319,398) 16.963 (245.344) (543,447) (99) (1,995)
- - (20,718) - -
- - - - - (20,718) - -
4,999 241,251 (319,398) 16.963 (245,344) (564,165) (99) (1,995)
13,826 929,654 2,230,150 1,188,167 552,772 4,852,165 6,998 36,284
$ 18,825 $ 1,170.905 $ 1,910,752 $ 1,205,130 $ 307,428 $ 4,288,000 $ 6.899 $ 34,289
(Continued)
- 145 -
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, 2014
Landscape
Air and Lighting Fire
Quality Districts Child Care Facilities
Management Nos. 1 - 17 Program Restoration
REVENUES:
Tares $ - $ - $ 23,373 $ 104,243
Special assessments collected - 591,731 - -
Intergovernmental revenues 61,772 - - -
Rental income - - - -
Charges for services - - - -
Investment earnings 1,275 4,220 5,763 3,327
Fines and forfeitures - - - -
Contributions from other governments
Miscellaneous
TOTAL REVENUES
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 OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTI IER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES -
BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
19 - - -
63,066 595,951 29,136 107,570
38,671 - - -
546,676 - -
24,395 49.275 29,136 107,570
75,867 - -
- 75,867 - -
24,395 125,142 29,136 107,570
321,335 2,191,007 1,462,409 828,093
$ 345,730 $ 2,316.149 $ 1,491,545 $ 935,663
See independent auditors' report.
- 146 -
Schedule 8
Total
Energy
RDA
Other
Independence
Aquatic
Low Income
Housing
Special Revenue
Loan
Center
Housing
Authority
Funds
$ -
S -
$ -
$ -
$ 589,491
416,194
-
-
-
1,254,030
-
-
-
145,146
3,431,271
-
-
-
5,474,851
5,474,851
-
725,742
725,742
5,905
3,334
-
50,308
121.189
-
-
-
-
131,375
1.591,825
1.591.825
7.685
-
-
2,800
219,753
429,784
729,076
-
7.264,930
13,539.527
110,267
-
-
-
1,298.967
-
-
733,013
4,542,068
5,400930
-
-
-
-
320.825
-
1.225,645
-
-
1,319.926
-
-
-
-
2,348,826
-
113,316
-
211,575
870,151
611,000
-
-
-
611,000
162,818
-
-
-
162,818
884.085
1,338,961
733,013
4,753,643
12,333.443
(454.301)
(609,885)
(733.013)
2.511,287
1,206.084
-
609,885
733,013
-
1,418,765
-
-
-
(733,013)
(893,299)
-
609,885
733,013
(733,013)
525,466
(454,301)
-
-
1,778,274
1,731.550
8,087,522
2.135.692
-
19,075,017
47,020,427
$ 71633,221
$ 2.135,692
$ -
$ 20,853,291
$ 48,751,977
- 147 -
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC SAFETY
For the year ended June 30, 2014
Fund balance, July 1
Resources (inflows):
Investment earnings
Fines and forfeitures
Total resources
Charges to appropriations (outflows):
Transfers out
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30
See independent auditors' report.
Budgeted Amounts
Original Final
$ 18,378 $ 18,378 $
Actual
18.378
Schedule 9-A
Variance with
Final Budget
Positive
(Negative)
1,000
1,000
142
(858)
174,000
174,000
131.375
(42,625)
175,000
175,000
131,517
(43.483)
175,000
175,000
139,568
35,432
175,000
175,000
139,568
35,432
- - (8,051) (8,051)
$ 18,378 $ 18,378 $ 10,327 $ (8,051)
- 148 -
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GAS TAX
Fund balance, July 1
Resources (inflows):
Intergovernmental revenues
Investment earnings
Total 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
For the year ended June 30, 2014
Budgeted Amounts
Original Final
$ 605,190 $ 605,190
1,383,800 1.383,800
11,200 11,200
1,395,000 1.395,000
Actual
$ 605,190
Schedule 9-B
Variance with
Final Budget
Positive
(Negative)
2,362,462 978,662
1,667 (9,533)
2,364,129 969,129
565,000
1,869,800
1,3049800
565,000
830,000
830,000
-
830,000
1,395,000
2,699,800
1.304.800
1.395,000
-
(1,304,800)
1,059.329
2.364,129
$ 605,190
$ (699,610)
$ 1,664,519
$ 2,364,129
See independent auditors' report.
- 149 -
Schedule 9-C
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HOUSING MITIGATION FEES
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
Fund balance, July 1
$ 2,485,768
$ 2,485,768
$ 2,485,768
$ -
Resources (inflows):
Taxes
56,000
56,000
53,954
(2,046)
Investment earnings
3,000
3,000
9,739
6,739
Miscellaneous
120,000
120,000
-
(120,000)
Total resources
179,000
179,000
63,693
(115,307)
Charges to appropriations (outflows):
Current:
Housing and redevelopment
500,000
500,000
125,849
374,151
Total charges to appropriations
500,000
500.000
125.849
374,151
Excess of resources over ( under)
charges to appropriations
(321,000)
(321,000)
(62.156)
258,844
Fund balance, June 30
$ 2,164,768
$ 2.164,768
$ 2,423,612
$ 258,844
See independent auditors' report.
- 150 -
Schedule 9-1)
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT
Fund balance (deficit), July 1
Resources (inflows):
Intergovernmental revenues
Investment earnings
Miscellaneous
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
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 13,826 $ 13.826 $ 13.826 $ -
321,200 321,200 359.345 38,145
300 300 - (300)
- - 4.998 4,998
332,000 501,187 359,344 141,843
332,000 501,187 359344 141.843
(10,500) (179,687) 4.999 184,686
3.326 $ (165,861) $ 18,825 $ 184,686
See independent auditors' report.
- 151 -
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC SAFETY POLICE GRANTS
For the year ended June 30, 2014
Fund balance, July 1
Resources (inflows):
Intergovernmental revenues
Investment earnings
Total resources
Charges to appropriations (outflows):
Current:
Public safety
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30
See independent auditors' report.
Schedule 9-E
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 6,998 $ 6.998 $ 6,998 $ -
100,000
320,638 20,638
88 88
100,000 300,000 320,726
300,000
101,500
326,500
320,825
5,675
101,500
326,500
320,825
5,675
(1,500)
(26,500)
(99)
26,401
$ 5,498 $
(19,502) $
6,899 $
26,401
- 152 -
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
EL PASF,O ASSESSMENT DISTRICT
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
For the year ended June 30, 2014
Budgeted Amounts
Original Final
$ 36,284 $ 36.284
Actual
Amounts
$ 36,284
Schedule 9-F
Variance with
Final Budget
Positive
(Negative)
250,000 250,000 246,105 (3,895)
250,000 250,000 246,105 (3,L
250,000 250,000 248,100 1,900
250,000 250,000 248,100 1.900
- - (1,995) (1.995)
$ 36,284 $ 36284 $ 34.289 $ (L995)
See independent auditors' report.
milm
Schedule 9-G
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE AND LIGHTING DISTRICTS NOS. 1 - 17
For the year ended June 30, 2014
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 $ 2,191,007 $ 2.191,007 $ 2,191,007 $ -
Resources (inflows)
Special assessments collected
805,696
805,696
591,731
(213,965)
Investment earnings
-
-
4.220
4,220
Transfers in
77,000
77.000
75,867
(1,133)
Total resources
882,696
882.696
671.818
(210,878)
Charges to appropriations (outflows):
Current:
Public works
753,723
770,146
546,676
223,470
Total charges to appropriations
753,723
770,146
546.676
223,470
Excess of resources over ( under)
charges to appropriations
128,973
112.550
125.142
12,592
Fund balance, June 30
$ 2319,980
$ 2.303,557
$ 2,316,149
$ 12,592
See independent auditors' report.
- 154 -
OTHER GOVERNMENTAL FUNDS - DEBT SERVICE FUND
City Highlands Undergroundinp, Fund - This fund is used to account for the resources and payment for
debt related to Highlands Undergrounding.
- 155 -
ASSETS:
Pooled cash and investments
Receivables:
Assessments
Due from other governments
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCESAND 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
See independent auditors' report.
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
June 30, 2014
Schedule 10
Total
City
Other
I lighlands
Debt Service
Undergrounding
Fund
$ 100,227
$ 100,227
1.382,905
1,382,905
5,955
5,955
$ 1.489,087
$ 1.489,087
$
230
$
230
230
230
1,382,905 1,382,905
1,3 82,905 1,382,905
105,952 105,952
105,952 105,952
$ 1.489,087 $ 1,489,087
- 156 -
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
OTHER DEBT SERVICE, FUND
REVENUES:
Special assessments collected
Investment earnings
TOTAL REVI;NUF,S
EXPENDITURES:
Current:
General government
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE. - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
For the year ended June 30, 2014
City
Highlands
Underaroundin
$ 117.368
466
Schedule I I
Total
Other
Debt Service
117,368
117,834 117,834
12.904 12,904
63,000 63,000
79,677 79,677
155,581 155,581
(37,747) (37,747)
143.699 143,699
$ 105.952 $ 105,952
See independent auditors' report.
- 157 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 158 -
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 Recreational Facilities Fund - This fund is used to account for resources and expenditures
for capital improvement projects that are related to park development, maintenance and equipment.
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 fagade enhancement projects for Palm
Desert businesses utilizing funds from the sales of certain City -owned properties.
- 159 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
June 30, 2014
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Interest
Prepaid costs
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:
Nonspendable:
Prepaid costs
Restricted for:
Capital projects
Special programs
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
TOTAL FUND BALANCES
TOTAL, LIABILITIES AND FUND BALANCES
See independent auditors' report.
Arts in Drainage
$ 1,612,655 $ 2,118,470
$ 1,612,655 $ 2,118,470
$ 8,892 $ -
947 -
167,583 -
177,422 -
1,435,233 -
- 2,1 18,470
1,435,233 2,118,470
$ 1,612,655 $ 2,118,470
- 160 -
Schedule 12
Parks and Assessment
Recreation District No. 94-3 Silver Spur
Facilities Signalization Buildings Library Merano Ranch
$ 246,249 $ 129,302 $ 2,751,996 $ 667,255 $ - $ 588
4,765,000
- - - 178,922 -
$ 5,011,249 $ 129,302 $ 2,751,996 $ 667.255 $ 178,922 $ 588
953,000 -
953, 000 -
178,922 588
41058,249 - 2,751,996 - -
- - 667,255 - -
- 129,302 - - _ _
4,058.249 129,302 2,751,996 667.255 178,922 588
$ 5,011,249 $ 129,302 $ 2,751,996 $ 667,255 $ 178,922 $ 588
(Continued)
- 161 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
(CONTINUED)
June 30, 2014
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Interest
Prepaid costs
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:
Nonspendable:
Prepaid costs
Restricted for:
Capital projects
Special programs
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
TOTAL FUND BALANCES
TOTAL. LIABILITIES AND FUND BALANCES
See independent auditors' report.
Highlands CFD
Undergrounding University
$ 20 $ -
- 21,279,414
$ 20 $ 21.290,927
$ - $
20 21,290,927
20 21,290,927
$ 20 $ 21,290,927
- 162 -
Schedule 12
Total
Capital
Other
Assessment
Capital
Capital
Projects
Economic
Capital Projects
29
Golf
Properties
Reserve
Development
I"unds
$ 636
$ 2,001.227
$ 14.402
$ 4,993.818
$ 831,420
$ 15,368,038
-
16,924
-
-
-
16,924
-
141,959
-
-
-
26,472
-
2,393
-
-
-
2,393
-
-
-
242,783
-
242,783
-
500,000
-
-
-
500,000
-
-
-
8,000.000
-
12,765,000
502,075
-
-
-
-
21,960,411
$ 502,711
$ 2,535,503
$ 14,402
$ 13,236,601
$ 831,420
$ 50,882,021
$ - $ 58,198
$ - $ 115.070 $ -
1,600,000 -
137.713 -
1,852,783 -
$ 182,160
947
2,553,000
137,713
167,583
3,041,403
2,393 - - - 2,393
502,711 - - - - 21,973,168
- - - - - 1,435,233
10,963.431 - 10,963,431
- - 420.387 420,387
- 2.474,912 14,402 - 831,420 10,130,979
- - - - 667,255
- - - 2,247,772
502,711 2,477,305 14,402 11,383,818 831,420 47,840,618
$ 502,711 $ 2,535,503 $ 14,402 $ 13,236,601 $ 831,420 $ 50,882,021
-163-
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
For the year ended June 30, 2014
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):
Sale of property
Transfers in
Transfers out
"TOTAL OTI IER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
See independent auditors' report.
Arts in Drainage
Public Places Facilities
$ 428,692 $ -
6,138 8,356
435,046 8,356
361,617 -
- 22,435
361,617 22,435
73,429 (14,079)
73,429 (14,079)
1,361,804 2.132,549
$ 1,435,233 $ 2,118,470
- 164 -
Schedule 13
Parks and Assessment
Recreation District No. 94-3 Silver Spur
Facilities Signalization Buildings Librar), Merano Ranch
$ - $
1,126 745 10,584 - 2 3
- 15,837 - - -
1.126 745 26.421 - 2 3
35,031
-
-
960
-
-
-
41.920
334,447
-
-
-
3,259
-
-
_
38,290
41.920
334,447
960
-
-
(37,164)
(41,175)
(308,026)
(960)
2
3
-
-
391,000
125.000
-
-
-
-
391,000
125,000
-
-
(37.164)
(41,175)
82,974
124,040
2
3
4,095,413
170,477
2,669,022
543,215
178,920
585
$ 4,058,249 $
129,302
$ 2,751,996 S
667,255 $
178,922 $
588
(Continued)
- 165 -
CITY OF PALM DESERT
COMBINING STATEMENTOF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
(CONTINUED)
For the year ended June 30, 2014
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):
Sale of property
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
See independent auditors report.
Highlands CFD
Undergrounding University
49,574
420,590
- 470,164
46,820
46,820
423,344
- 423,344
20 20.867,583
$ 20 $ 21.290,927
- 166 -
Schedule 13
Total
Capital
Other
Assessment
Capital
Capital
Projects
Economic
Capital Projects
29
Golf
Properties
Reserve
Development
Funds
-
$ 428.692
-
-
-
434,883
-
434.883
5,900
27,705
56
23,888
814
134,891
-
-
-
-
-
420.590
-
1,469.259
-
98,957
-
1,584.269
5,900
1,496,964
56
557,728
814
3,003,325
-
-
-
804.147
80,395
884,542
-
313,386
-
-
-
710,994
-
-
-
417,686
-
863,308
2.350,187
-
-
-
-
2,350,187
-
-
-
614.913
-
618,172
2,350,187
313,386
-
1.836.746
80.395
5,427.203
(2344,287)
1,183,578
56
(1.279,018)
(79.581)
(2,423,878)
911,001
911,001
-
-
-
-
-
516.000
-
(776.000)
-
-
-
(776.000)
-
(776,000)
-
-
911,001
651,001
(2,344,287)
407.578
56
(1,279.018)
831,420
(1,772.877)
2,846,998
2,069,727
14,346
12,662,836
-
49,613,495
$ 502.711
$ 2,477305
$ 14,402
$ 11,383,818
$ 831,420
$ 47,840,618
- 167 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 168 -
AGENCY FUNDS
Agency Funds are used to account for assets held by the city as an agent for individuals, private
organizations, other governments and/or funds.
Agency Fund - This fund is used to account for deposits placed with the City by developers,
individuals and groups to obtain future services. Deposits are reduced by disbursements and/or refunds
to the depositors when the cost of services is determined.
Treasurers 1911 Bond Act - This fund is used to account for the assets held on behalf of the assessment
district's property owners until they are remitted to the bondholders.
Retiree Service Stipend Fund - This fund is used to account for assets held to pay for the retiree service
stipend.
Special Assessment Funds - These funds are used to account for the collection of special assessments
and the future payment of debt service related to bonds issued.
- 169 -
Schedule 14
CITY OF PALM DESERT
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
June 30, 2014
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
See independent auditors' report.
Special
Treasurers Retiree Service Assessment
Agency 1991 Bond Act Stipend Fund Funds Totals
$ 1,784,444 $ 270,664 $ 4.385,268 $ 9,025,537 $ 15,465,913
87,805,509 87,805,509
- 2,293 2,293
456,102 192.427 648,529
- - - 4,208 4,208
- - - 7,518,124 7,518,124
$ 1,784,444 $ 270,664 $ 4,841,370 $ 104,548,098 $ 111,444,576
$
1,784,444
$
270,664
$
4,841,370
$
104,548,098
$
111,444,576
$
1,784,444
$
270,664
$
4,841,370
$
104,548,098
$
111,444,576
- 170 -
Schedule 15
CITY OF I'ALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AI.L AGENCY FUNDS
AGENCY
ASSETS:
Cash and investments
"TOTAL ASSETS
LIABILITIES:
Deposits
TOTAL LIABILITIES
TREASURERS 1911 BOND ACT
ASSETS:
Cash and investments
TOTAL ASSETS
LIABILITIES:
Deposits
TOTAL LIABILITIES
RETIREE SERVICES STIPEND FUND
ASSETS:
Cash and investments
Due from other governments
TOTAL ASSETS
LIABILITIES:
Deposits
TOTAL LIABILITIES
For the year ended June 30, 2014
Balance
Balance
July 1,
June 30,
2013
Additions
Deletions
2014
$
1,921,644
$
1,183,813
$
1,321,013
$
1,784,444
$
1,921,644
$
1,183,813
$
1,321,013
$
1,784,444
$
1,921,644
$
1.183,813
$
1,321.013
$
1,784,444
$
1,921,644
$
1,183,813
$
1,321,013
$
1,784,444
$
270,664
$
- $
- $
270.664
$
270,664
$
- $
- $
270,664
$
270,664
$
- $
- $
270,664
S
270,664
S
- $
- $
270,664
$
2,459,072
$
2,704,520
$
778,324
$
4,385,268
-
456,102
-
456.102
$
2,459,072
$
3,160,622
$
778,324
$
4,841.370
$
2,459,072
$
3,160,622
$
778.324
$
4,841.370
$
2,459,072
$
3,160,622
$
778,324
$
4,841,370
See independent auditors' report
-171-
(Continued)
Schedule 15
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
(CONTINUED)
For the year ended June 30, 2014
Balance Balance
July 1, June 30.
SPECIAL ASSESSMENT FUNDS
ASSETS
Cash and investments $
9,333,241
Receivables (net of allowance for uncollectibles):
Assessements
97,216,295
Interest
2,801
Due from other governments
144,654
Prepaid costs
4,467
Restricted assets:
Cash with fiscal agent
8,033,685
$ 14,013,029 $ 14,320,733 $ 9,025,537
-
9,410,786
87,805,509
2,293
2,801
2.293
192,427
144.654
192,427
4,208
4.467
4,208
8,679,604
9,195,165
7,518,124
TOTAL ASSETS
$ 114,735,143
$
22,891,561
$
33,078.606
$
104,548.098
LIABILITIES:
Deposits
$ 114,735,143
$
22,891,561
$
33,078,606
$
104,548,098
TOTAL LIABILTIES
$ 114,735,143
$
22,891,561
$
33,078,606
$
104,548,098
TOTAL - ALL AGENCY FUNDS
ASSETS:
Cash and investments
$ 13,984,621
$
17,901,362
$
16,420,070
$
15,465.913
Receivables (net of allowance for uncollectibles):
Accounts
97,216,295
-
9,410,786
87,805,509
Interest
2,801
2,293
2,801
2.293
Due from other govemmets
144,654
648,529
144,654
648,529
Prepaid costs
4,467
4,208
4,467
4,208
Restricted assets:
Cash with fiscal agent
8,033,685
8,679,604
9,195.165
7,518,124
TOTAL ASSETS
$ 119,386,523
$
27,235,996
$
35,177.943
$
111,444,576
LIABILITIES:
Deposits
S 119,386,523
$
27,235,996
$
35,177,943
$
111,444,576
TOTAL LIABILITIES
$ 119,386,523
$
27,235,996
$
35,177.943
$
111,444.576
See independent auditors' report.
- l72 -
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2014
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.
- 173 -
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities
2014
2013
2012
2011
2010
Net Investment in capital assets
466,246,732
465,756,172
475,457,375
302,757,128
304,702,414
Restricted
140,460,575
132,741,798
119,736,419
147,648,424
143,394,780
Unrestricted
105,537, 785
103,603,715
107,622,257
107,314, 002
110,918,145
Total Governmental Activities Net Position
712,245,092
702,101,685
702,816,051
(4) 557,719,554
559,015,339
Business -Type Activities
Net Investment in capital assets
72,009,184
72,892,200
73,375,634
74,043,419
67,902,786
Restricted
-
-
-
-
-
Unrestricted
3,920,382
3,682,061
3,901,816
4,068,623
4,391,160
Total Business -type Activities Net Position
75,929,566
76,574,261
77,277,450
78,112,042
72,293,946
Primary Government
Net Investment in capital assets
538,255,916
538,648,372
548,833,009
376,800,547
372,605,200
Restricted
140,460,575
132,741,798
119,736,419
147,648,424
143,394, 780
Unrestricted
109,458,167
107, 285,776
111, 524, 073
111,382,625
115,309, 305
Total Primary Government Net Position
788,174,658
778,675,946
780,093,501
635,831,596
631,309,285
Governmental Activities
2009
2008
2007
2006
2005
Net Investment in capital assets
302,507,877
287,536,477
213,685,471
166,229,783
147,410,323
Restricted
159,157, 317
161, 360,654
173,335,615
153,342,045
103,701, 569
Unrestricted
113,883,303
120,089,399
111,386,996
108,077,101
96,445,212
Total Governmental Activities Net Position
575,548,497
568,986,530
(3) 498,408,082
(2) 427,648,929
(1) 347,557,104
Business -Type Activities
Net Investment in capital assets
68,263,719
62,814,656
62,956,911
63,233,079
63,588,616
Restricted
-
-
-
-
-
Unrestricted
4,686,899
5,211,985
5,294,980
4,459,840
2,948,910
Total Business -type Activities Net Position
72,950,618
68,026,641
68,251,891
67,692,919
66,537,526
Primary Government
Net Investment in capital assets
370,771,596
350,351,133
276,642,382
229,462,862
210,998,939
Restricted
159,157, 317
161,360,654
173,335,615
153, 342,045
103,701,569
Unrestricted
118,570,202
125, 301,384
116,681,976
112, 536,941
99,394,122
Total Primary Government Net Position
648,499,115
637,013,171
566,659,973
495,341,848
414,094,630
(I)The increasefor FY2006 is due to issuance of District Bond, see note #14.
(2)The increasefor FY2007 is due to issuance of'District Bond, see note #14.
(3) The increasefor FY 2008 is due to Capital Contribution of Hwy III & Hwy 74 infastructure totalling $30.19 million from the State of California.
(4) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution ofall
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.
174
City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses
2014
2013
2012 (4)
2011 (3)
2010 (3)
Governmental Activities:
General government
19,194,343
16,375,295
17,387,080
17,182,987
16,701,292
Public safety
29,339,106
28,614,153
28,037,453
26,601,668
27,027,643
Housing & Redevelopment (2)
7,852,611
6,944,033
10,519,663
15,976,383
16,220,066
Parks, recreation and culture
8,327,402
8,752,623
6,033,019
7,337,403
7,312,679
Public works
21,123,197
16, 316,237
17, 407,751
16, 984,334
19,900,937
Payments to other agencies
-
-
16,994,265
39,418,936
63,320,650
Interest on long term debt
237,053
253,381
10,971,707
18,989,167
20,069,813
Total Governmental Activites Expenses
86,073,712
77,255,722
107,350,938
142,490,878
170,553,080
Business -Type Activities:
Desert Willow Golf Course
8,452,001
8,655,754
8,471,567
7,946,063
7,832,690
Office Complex - Parkview
922,341
984,811
1,031,178
861,786
875,394
Total Business -Type Activities
9,374,342
9,640,565
9,502,745
8,807,849
8,708,084
Total primary government expenses
95,448,054
86,896,287
116,853,683
151,298,727
179,261,164
Program Revenues
Governmental Activities
Charges for services
General government
2,152,280
1,833,823
1,805,442
1,921,573
2,127,138
Housing & Redevelopment
6,851,603
5,308,858
5,034,002
4,935,422
4,986,066
Public safety
10,239,886
11,147,297
9,041,801
9,825,352
9,431,478
Parks, recreation and culture
729,076
898,222
728,721
768,786
618,440
Public works
2,180,877
768,775
826,251
762,015
706,374
Operating grants & contributions
9,745,609
5,876,028
7,411,902
5,675,777
6,558,892
Capital grants & contributions
21,086,051
7,733,439
2,309,678
2,255,393
2,722,312
Total Governmental Activites Program Revenues
52,985,382
33,566,442
27,157,797
26,144,318
27,150,700
Business -Type Activities
Charges for Service:
Desert Willow Golf Course i
7,804,904
7,494,819
7,635,352
7,338,640
7,054,263
OfficeComplex- Parkview
1,254,521
1,215,860
1,222,971
1,217,985
988,056
Capital grants & contributions
94,076
660,685
236,419
-
-
Total Business -type activites program revenue
9,153,501
9,371,364
9,094,742
8,556,625
8,042,319
Total Primary Government program revenue
62,138,883
42,937,806
36,252,539
34,700,943
35,193,019
Net (Expense)/Revenue
Governmental Activites
(33,088,330)
(43,689,280)
(80,193,141)
(116,346,560)
(143,402,380)
Business -type activites
220,841
269,201
408,003
251,224
665,765
Total Primary Government Net Expense
(33,309,171)
(43,958,481)
(80,601,144)
(116,597,784)
(144,068,145)
General Revenues & Other Changes in Net Assets
Governmental Activities:
Taxes:(Combined/Net Pass -through)
39.952,738
38.742,060
73,105,614
114,880,586
120,872,421
Investment Earnings
358,674
318,996
1,102,309
2,158,556
2,916,753
Contributions not restricted for specific purpose
-
-
791,256
762,588
644,603
Gain(loss) on sales of assets
488,319
-
-
-
-
Miscellaneous
1,994,506
3,894,203
5,838,881
3,169,977
2,382,208
Refunding of special assessment debt
-
-
-
-
-
Transfers In / (Out)
437,500
437,500
440,000
(6,046,761)
53,237
Gain on Transfer to Successor Agency
-
-
144,011,578
-
-
Total Governmental Activites Net Revenues
43,231,737
43,392,759
225,289,638
114,924,946
126,869,222
Business -Type Activities:
Investment Earnings
13,646
3,512
13,411
22,559
62,330
Transfers Out
437,500
437,500
440,000
6,046,761
53,237
Total Business -type activites
423,854
433,988
426,589
6,069,320
9,093
Total primary government
42,807,883
42,958,771
224,863,049
120,994,266
126,878,315
Change in Net Position
Governmental Activities:
10,143,407
(296,521)
145,096,497
(1,421,614)
(16,533,158)
Business -Type Activities:
(644,695)
(703,189)
(834,592)
5,818,096
(656,672)
Total primary government
9498 712
(999,710)
144,261,905
4,396,482
(17,189,830)
(1) The Increase for FY2006 is due to Bond Funds received for capital improvement at the District knoxn as University Park and Assessment 29. See note #14.
(2)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(3) Required payment made to the State of California. For FY 2010 xas $25,526.215 and FY 2011 was $5,255.397.
(4) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statexide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Pabn Desert.
For more information on the dissolution of the RDA please see note 18 and note 19.
175
City of Palm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses
2009
2008
2007
2006i11
2005
Governmental Activities:
General government
17,328,291
21,953,229
11,659,965
13,276,549
13,159,370
Public safety
27,670,237
26,855,060
24,674,424
21,856,311
18,743,083
Housing & Redevelopment (2)
16,760,877
24,095,414
28,296,802
21,086,301
13,984,668
Parks, recreation and culture
7,210,706
8.013,211
4,996,692
4,243,119
4,043,034
Public works
22,036,017
27,245,937
37,091,512
13,894,980
10,428,219
Payments to other agencies
39,085,940
38,993,445
35,719,075
36,844,061
30,183,408
Interest on long tern debt
20,128,441
20,706,514
20,097,198
12,526,964
12,749,188
Total Governmental Activites Expenses
150,220,509
167,862,810
162,535,668
123,728,285
103,290,970
Business -Type Activities:
Desert Willow Golf Course
7,804,265
8,167.682
7,989,321
6,913,517
6,636,889
Office Complex - Parkview
852,746
649,548
716,592
646,769
609,298
Total Business -Type Activities
I 8,657,011
8,817,230
8,705,913
7,560,286
7,246,187
Total primary government expenses
158,877,520
176,680,040
171,241,581
131,288,571
110,537,157
Program Revenues
Governmental Activities
Charges for services
General government
7,574,059
8,454,683
8,225,112
8,318,175
7,059,609
Housing & Redevelopment
-
-
_
Public safety
9,396,435
8,808,300
9,078,214
8.376,981
3,945,395
Parks, recreation and culture
803,218
1,190,725
1,822,685
1,994,163
1,442,098
Public works
701,125
762,440
514,838
491,179
540,028
Operating grants & contributions
1 5,582,470
5,843,010
7,951,650
4,930,120
4,800.413
Capital grants & contributions
5,048,666
42,545,033
57,132,742
51,780,221
5,166,856
Total Governmental Activites Program Revenues
29,105,973
67,604,191
84,725,241
75,890,839
22,954,399
Business -Type Activities
Charges for Service:
Desert Willow Golf Course
6,872,935
8,182,741
7,830,863
7,442,330
6,814,638
Office Complex - Parkview
958,942
934,833
915,975
864,447
898,884
Capital grants & contributions
-
206,609
278,757
295,304
338,478
Total Business -type activites program revenue
7,831,877
9,324,183
9,025,595
8,602,081
8,052,000
Total Primary Government program revenue
36,937,850
76,928,374
93,750,836
84,492,920
31,006,399
Net (Expense)/Revenue
Governmental Activites
j (121,114,536)
(100,258,619)
(77,810,427)
(47,837,446)
(80,336,571)
Business -type activites
1 825,134
506,953
319,682
1,041,795
805,813
Total Primary Government Net Expense
(121,939,670)
(99,751,666)
(77,490,745)
(46,795,651)
(79,530,758)
General Revenues & Other Changes in Net Assets
Govemmental Activities:
Taxes: (Combined/Net Pass -through)
123,650,887
129,521,410
122,485,939
114,826,387
96,926,134
Investment Earnings
6,161,309
15,309,271
17,521,600
6,197,595
4,240,360
Contributions not restricted for specific purpose
613,648
7,240,770
-
Gain(loss) on sales of assets
-
-
-
-
17,459
Miscellaneous
i 2,912,180
6,369,028
10,790,417
7.025,216
6,347,396
Refunding of special assessment debt
-
-
_
Transfers In / (Out)
(5,661.521)
1,000,000
Gain on Transfer to Successor Agency
a -
-
_
Total Governmental Activites Net Revenues
127,676,503
159,440,479
150,797,956
128,049,198
107,531,349
Business -Type Activities:
Investment Earnings
87,590
267,797
239,290
113,598
43,831
Transfers Out
5,661,521
1,000.000
254
Total Business -type activites
5,749,111
732,203
239,290
113,598
44,085
Total primary government
133,425,614
158,708,276
151,037,246
128,162,796
107,575,434
Change in Net Position
Governmental Activities:
6 561,967
59,181,860
72,987,529
80,211,752
27,194,778
Business -Type Activities:
4.923,977
(225,250)
558,972
1,155,393
849,898
Total primary government
1 11,485,944
58,956.610
73746.501
81,367,145
28,044,676
(1) The Increase for FY 2006 is due to Bond Funds received for capital improvement at the District knmtn as University Park and Assessment 29. See note #14.
(2)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(3) Required payment made to the State of California. For FY 2010 vas $25,526,215 and FY 1011 was $5.255.397.
(4) 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.
176
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:
2014
2013
2012
2011
2010
Nonspendable
7,745,320
7,678,250
2,926,739
2,939,850
(1) 9,676,961
Restricted
-
-
-
-
Committed
Assigned
4,425,423
3,224,761
3,297,152
4,501,159
4,044,421
Unassigned
66,203,203
65,311,919
69,438,971
66,776,414
63,847,586
Total General Fund i
78,373,946
76,214,930
75,662,862
74,217,423
77,568,968
All other Governmental Funds:
Nonspendable
6,713
(5) 49,319,200
39,525,247
40,925,918
41,050,481
Restricted
114,194,435
(5) 76,725,388
69,065,451
230,623,054
260,163,043
Committed
21,644,068
15,649,703
20,289,309
17,285,733
(3) 8,871,910
Assigned
24,429,824
14,144,969
17,552,726
19,375,999
16,432,292
Unassigned
-
-
-
Total all other Governmental Funds
160,275,040
155,839,260
146,432,733
(4) 308,210,704
326,517,726
General Fund:
2009
2008
2007
2006
2005
Nonspendable
11,629,384
11,897,843
22,199,914
21,231,046
22,039,893
Restricted
-
-
-
-
Committed
-
-
-
-
Assigned
3,654,300
4,406,391
2,998,204
5,114,813
4,465,521
Unassigned
59,066,988
63,515,054
50,916,281
48,004,509
36,793,370
Total General Fund
74,350,672
79,819,288
76,114,399
74,350,368
63,298,784
All other Governmental Funds:
Nonspendable
23,361,744
23,141,729
35,511,735
29,781,061
25,955,789
Restricted
296,323,735
299,960,611
318,529,973
147,669,565
114,913,358
Committed
4,559,739
(2) 18,487
9,000
-
-
Assigned
23,812,325
26,512,084
27,344,381
24,509,173
24,098,104
Unassigned
t (2,392)
-
(55,684)
Total all other Governmental Funds
348,055,151
349,632,911
381,339,405
201,9599799
164,967,251
(1) RDA made payment on advances from the city.
(2) Start of new Energy program that loans residents.funds for energy efficiency.
(3) RDA Low Income Housingfund transfer for Capital Asset replacement to the Housing Authority.
(4) 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.
(5) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds. For more informations please
note 10 and 19.
177
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues:
2014
2013
2012 (3)
2011
2010
Taxes
50,464,511
50,768,200
82,901,921
124,672,062
130,655,949
Special assessments collected
3.486,220
3,654,337
3,232,923
3,262,163
3,182,549
Licenses & permits
2,262,907
1,586,796
1,041,834
1.089,543
782,271
Intergovernmental revenues
7,380,744
5,097,892
6,637.426
7,605,282
8,700,234
Rental income
5,626,850
5,367,630
5,146,499
5,011,205
5,023,770
Charges for services
2,165,020
898,222
728,721
701,481
618,440
Investment Earnings
864,853
373,012
1,469.142
3,102,649
4,681,243
Fines & forfeitures
231,768
242,568
276,452
310,840
343.054
Miscellaneous
3,539,552
9,028,698
6,814,924
3,095,689
3,374,309
Contribuflons from other government (4)
10,749,218
-
-
_
_
Contributions from property owners
420,590
Total Revenues
87,192,233
77,017,355
108,249,842
148,850,914
157,361,819
Expenditures:
General government
17,070,816
14,028,252
15,851,883
15,273,085
19,294,744
Housing & redevelopment 1
6,650,178
6,650,666
8,942.097
18,033,576
13,612.720
Pass -through -agreement
-
-
16,994,265
39,418,936
63,320,650
Public safety
29,139,735
28,299,876
27,551,113
26,824,434
26,882,787
Parks, recreation & culture
5802,1941
6.162,449
3,685,334
3,845,901
4,534,505
Public works
12,741,764
9,819,591
11,306,021
11,256,499
13,971,797
Contributions to property owners ±x
2,350,187
-
_
_
Capital outlay
6,273,822
2,788,676
9,575,227
14,205.889
6,333,521
Debt service:
Principal retirement
674,000
318,000
9.032,707
22,914,707
15,250,707
Interest and fiscal charges
242,495
255,239
10,187,765
18,176,454
19,280,517
Total Expenditures
80,945,938
67,322,749
113,126,412
169,949,481
182,481,948
Excess(deficiency of Revenues
6,246,295
9,694,606
over(under) expenditures
(4,876,570)
(21.098,567)
(25,120.129)
Other financing sources (uses)
Transfers in
4,861,551
11,274,539
24,453,724
69,995,597
59,960,402
Transfers out i
(5,424,051)
(11,010,550)
(24.013,724)
(70,555,597)
(59,520,402)
Extraordinary Gain / (Loss)
_
_
(155 895,962)
_
Bonds issued/Capital Accreatlon on bonds (2) •.
-
-
-
-
6,361,000
Sale of property -
911,001
Total Other financing sources(uses)
348,501
263,989
(155,455.962)
(560.000)
6,801,000
Net Change In Fund Balance
6.594,796
9.958, 595
160, 332.532
21,658,567
18.319,129
Debt service as a percentage of noncapital
1.2%
0.91-'0
18-6%
26.4 %
19.6 %
expenditures
i axes
134,060,681
140,331,466
138,272,454
131,303,483
102,020,742
Special assessments collected
2,759,444
2,060,791
929.348
269,036
227,848
Licenses & permits
1,383,778
1,453,177
2,691,486
2,685,415
2,056,554.
l ntergovem mental revenues ''.
�)t
9,543,551
18,996,692
23,499,937
11,095,613
11,084,037
Rental income '•'"%ztt.
5,050,479
4,789,421
4,513.146
4,737,861
4,430,9151
Charges for services
803,218
1,190,725
1,822,685
1,994,163
1.463,850
Investment Earnings xfq, a *;,
8,322,808
22,592,392
23,985,001
9,351,716
5,654,986
Fines & forfeitures
315,284
254,857
274,365
310,868
323,775
Miscellaneous
3,479,370
20,164,099
2,847,802
2,470,623
3,232.825
Contributions from property owners (1)
-
46,006,292
42,979,973
Total Revenues
165,718,613
211,833,620
244,842,516
207,198,751
130,475,532
Expenditures:
General government
18,950.675
24,776,785
18,231,351
15,111.294
13,886,346
Housing & redevelopment
14.359,340
38,018,819
26,356,634
19,395,693
12,225,779
Pass -through -agreement _
39,085,941
38,993,445
35,719,075
36,844,061
30,183,408
Public safety _
26,906,123
26,677.743
24,550,431
21,715,373
18,567,736
Parks, recreation & culture
5,122,900
4,572,695
3.921,063
3,304,867
2.889,789
Public works
16,241,963
22,936,721
33,925,623
11.103,943
7,306,791
Capital outlay -
22,348,953
52,256,552
85,604,515
35,359,139
22,409,057
Debt service:
Principal retirement
12,778,707
10,767,707
8,209.707
5.607,707
9,788,423
Interest and fiscal charges
19 424 623
23,376,564
25,814,526
14,072,572
13 537 219
Total Expenditures
175,219,225
242,377.031
262,332,925
162,514,649
130,794,548
Excess(deficiency of Revenues
over(under)expenditures
(g,500,612)
(30,543,411 )
(17,490,409)
44,684,102
(319,016)
Other financing sources (uses)
Transfers in
68,088,670
59,723,636
249,249,847
50,225,747
48,697,604
Transfers out
(67,649,434)
(58,723,636)
(249,249,847)
(50,225,747)
(48,697,604)
Bond Premiums {
7,785,375
-
Bonds issued/Capital Accreation on bonds (2)
-
_
287,534,894
Payment refunded bond escrow agent
2,015,000
1,484,806
(101,656,501)
-
Sale of property
-
47,000
5,230,000
3,360,030
3,356,362
Total Otherfinancing sources (uses)
2,454,236
2,531,806
198,893,768
3,360.030
3,356,369
Net Change In Fund Balance
7,046,376
28,011,605
181,403,359
48.044,132
3,037,353
Debt service as a percentage of noncapital
expenditures
21 1%
18.0%
19.3%
15.5%
21.5%
(1)Bond was issued in FY 2006 and FY 2007. See note #14 forfurther explanation.
(2) See Note #19 of the Financial Statement, included Capital Accreation of Bonds.
(3) On February 1, 2012 the State of California dissohrd the City of Palm Desert Redetrlopmem 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.
(4) In prior years, City recorded contributions from other goirrnmenis as miscellaneous reirnue.
S3(p),1100,ow
5250,(HX),000
5200,000,0(N)
5150,000,0O0
S 1 W,0O0,0W
$50,000,00()
S0
City of Palm Desert
Graphs - Changes in Fund Balances of Governmentals Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Total Revenues
oCombired mhn ll)
ew�iureowo�ne.l'-)
omteBoam�c�m reK�me
■Lixnus & pem�its
_ _ � 1 � � � ■texts & Speuel Assmmmv
(2) Miscellaneous Other it a combination offines and forefeitures, miscellaneous, contributionsirom other governments. ma conrrohnionxirom properw
(3) Debt Expenditures is a combination o%interest/fiscal charges and principal retirement.
(4) Public corks is a combination of public works and contributions to property owners.
179
City of Palm Desert
Supplemental - Historical General Fund Revenues
(Including Transfers In)
T net Tan Va-
FY
2014
2013
2012
2011
2010
Revenue Type:
Sales Tax
S 17,258,958
$ 16,764,808
$ 15,836,953
$ 14,680,578
$ 13,273,793
Transient Occupancy Tax
9,855,509
9,188,981
8,085,225
7,421,769
6,848,132
Property Tax (3)
9,041,428
9,529,018
7,976,494
8,341,728
8,707,567
Investment Earnings
405,456
126,206
408,661
793,461
1,766,868
Transfer In
1,373,786
2,127,655
2,240,703
2,691,634
4,747,672
Franchises
3,007,215
2,892,805
2,856,679
2,771,594
2,705,902
State Subventions (1) (3)
22,089
26,691
25,759
236,211
151,489
Building & Grading Permits
1,695,303
1,206,935
750,442
783,031
575,852
Reimbursments (4)
1,809,323
1,868,804
2,535,977
1,971,505
2,488,378
Business License Tax
1,169,316
1,149,551
1,076,541
1,085,411
1,071,997
Timeshare Mitigation Fee
1,333,586
1,292,859
1,110,227
1,192,490
1,483,220
Plan Check Fees
662,893
500,698
275,728
317,332
224,325
Property Transfer Tax
530,556
520,393
485,040
399,280
455,580
Other Revenues (2)
1,932,009
1,961,314
19398,669
1,475,154
1,5679651
Total General Revenue
$ 50,097,427 1
$ 49,156,718
$ 45,063,098
$ 44,161,178 1
$ 46,068,426
FY
2009
2008
2007
2006 t31
2005
Revenue Type:
Sales Tax
$ 14,474,933
$ 17,195,743
$ 17,918,375
$ 17,776,928
$ 15,453,148
Transient Occupancy Tax
7,030,048
8,605,714
8,627,221
8,026,101
7,715,624
Property Tax (3)
8,776,917
9,333,842
8,714,568
8,261,944
4,003,585
Investment Earnings
2,142,915
4,571,147
4,890,891
2,636,050
1,486,830
Transfer In
2,684,568
1,101,610
1,122,224
1,083,589
1,130,231
Franchises
2,818,729
2,887,727
2,907,062
2,580,917
2,439,134
State Subventions (1) (3)
173,448
220,785
267,595
358,954
3,712,256
Building & Grading Permits
950,805
975,296
1,476,290
1,963,733
1,446,524
Reimbursments (4)
3,263,247
4,933,807
2,465,685
1,982,846
1,830,295
Business License Tax
1,258,688
1,311,090
1,231,587
1,242,721
1,154,143
Timeshare Mitigation Fee
949,871
881,350
782,739
6619187
526,271
Plan Check Fees
389,770
562,930
617,999
702,857
701,215
Property Transfer Tax
324,817
604,236
671,806
1,030,412
1,099,665
Other Revenues (2)
1,601,947
1,900,529
2,436,664
2,606,760
2,019,035
Total General Revenue
$ 46,840,703
$ 55,085,806 1
$ 54,130,706 1
$ 50,914,999
$ 44,717,956
(1) State Subventions is any combination of motor vehicle and off 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
will no longer apply.
Wif,
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
$70,000,000
$60,000,000
.p50,000,000
OCombined Other (1)
■Interest
$40,000,000
`
■eroperty Tax
OT=sient Occupancy Tax
vWales
Tax
$30,000,000
$20,000,000
$10,000,000
$0
7 M
N O Of
O
O O O O
00
O
O
r t0
O O
O O
M)
O
O
O O
N N
LL LL
N N N N
LL LL LL LL
N
LL
N N
LL LL
N
LL
(1) Combined Other is any combination of transfers, franchises, state subventions *, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property
transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants,
incomes, penalties, permits, sales and taxes.
*State Subventions is any combination of trailer coach fees, motor vehicle and off -highway in-lieus, and
subventions from state.
181
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY
2014
2013
2012
2011
2010
Expenditure:
Public Safety (1)
5 17,306,342
$ 17,002,291
$ 16,532,894
$ 16,047,991
S 15,671,095
City Administration (2)
7,413,578
7,180,519
7,670,377
8,023,314
8,556,627
Public Works Administration
2,556,967
2,528,131
2,527,817
2,380,255
3,021,319
Community Promotions
618,138
575,119
526,804
497,366
990,505
Street Maintenance
2,806,168
2,353,655
2,446,854
2,522,117
2,565,567
Building Safety
1,783,918
1,517,937
1,538,506
1,523,748
1,756,589
Street Resurfacing
4,466
1,179,743
2,332,968
2,268,901
708,006
Public Works (4)
1,018,435
1,505,018
1,056,998
1,354,255
1,278,983
Other Expenditures (3)
14,430,399
14,762,237
8,9849441 1
12,894,776 1
8,301,439
Total Expenditures
S 47,938,411
$ 48,6049650 1
$ 43,6179659 1
$ 47,512,723 1
$ 42,850,130
FY
2009
2008
2007
2006
2005
Expenditure:
Public Safety (1)
S 16,266,052
$ 14,413,196
$ 13,404,056
$ 12,323,448
$ 12,135,671
City Administration (2)
10,076,543
9,861,106
8,588,341
8,410,706
7,196,081
Public Works Administration
3,720,106
3,329,792
3,014,583
2,823,359
2,506,688
Community Promotions
1,798,860
2,532,637
2,402,435
1,687,148
1,616,071
Street Maintenance
2,183,445
2,133,448
1,968,849
1,681,583
1,558,970
Building Safety
2,082,996
3,260,855
3,084,015
2,695,889
2,297,814
Street Resurfacing
1,115,721
3,342,542
1,192,629
1,277,554
1,375,409
Public Works (4)
1,552,242
1,348,012
1,204,079
1,117,417
934,821
Other Expenditures (3)
13,513,354
11,159, 229
17,989,005
7,846,311
7,256,066
Total Expenditures
$ 52,309,319
$ 51,380'917
$ 52,847,992
$ 39,863,415
$ 36,877,591
(1) Public Safety is any combination of animal regulation, police services, and traffic 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 & gutterparking lot, storm drain, strippingcorporate yard
equipment, building maintenance, Portola Community center, storm water permit.
182
City of Palm Desert
Supplemental Graph - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
$60,000,000
OCumbined Other(])
$50,000,000
$40,000,000
OCommmity Pr.m"lioms
$30,000,000
OPubtic Works Adman mtiun
$20,000,000
TIM
aCity Adrninic=ti..(z)
$10,000,000
■Public Safety(3)
$0
R M N O
C
O
O O O
(1) "Combined Other" is any combination ofstreet maintenance, bnildingsafety, street resurfacing and ptublic
works. It may also be agldsitions, centers, committees, contributions, community development,
marketing, inter/iond transfers, parks, recreation and culture, visitor center.
(2) City Administration is any combination of community services, auditing, Ciry attorney, City clerk, City council and
City manager, information technology, elections, finance, general services, human resources, instirance, legal special services,
legistlative advocacy, retiree health and nnemployment instnrance expendinures.
(3) Other Expenditures is any combination ofagnisitions, committees, contributions, community
development, marketing, interfnnd transfers, parks, recreation and culture, extraordinary loss and visitor center.
(4) Public Works is a combination of curb & gutterparking lot, storm drain, stripping, corporate yard
equipment, building maintenance, Portola Community center, storm water permit.
183
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184
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY
2014
2013
2012
2011
2010
Total General Revenue (2)
$ 48,723,641
$ 47,029,063
$ 42,822,395
$ 41,469,544
$ 41,320,754
Population (1)
50,417
49,949
49,471
49,111
52,067
General Revenue Per Capita
$ 966
$ 942
$ 866
$ 844
$ 794
FY
2009
2008
2007
2006
2005
Total General Revenue (2)
$ 44,156,135
$ 53,984,196
$ 53,008,482
$ 49,831,410
$ 43,587,725
Population (1)
51,509
50,907
49,752
49,539
49,280
General Revenue Per Capita
$ 857
$ 1,060
$ 1,065
$ 1,006
$ 884
FY
2014
2013
2012
2011 '
2010
Total General Expenditures (2)
$ 44,183,659
$ 42,155,428
$ 42,099,903
$ 41,833,291
$ 42,499,812
Population (1)
50,417
49,949
49,471
49,111
52,067
General Expenditures Per
Capita
$ 876
$ 844
$ 851
$ 852
$ 816
FY
2009
2008
2007
2006
2005
Total General Expenditures (2)
$ 48,696,321
$ 49,238,257
$ 43,565,108
$ 38,488,367
$ 35,426,268
Population (1)
51,509
50,907
49,752
49,539
49,280
General Expenditures Per
Capita
$ 945
$ 967
$ 876
$ 777
$ 719
(1) Population figures are as of January start of f scal year.
(2) Interfund Transfers In/Out and extraordinary loss are not incheded in total.
Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department
185
City of Palm Desert
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Fiscal Year
Ended June 30
Residential
Property
Commercial
Industrial
Property
Institutional
Property
Vacant Land
Less: Tax
Exempt
Total Taxable
Assessed Value
Total Direct
Tax Rate
Estimated Actual
Taxable Value (1)
2014
9,043,372,632
2,247,924,054
64,595,519
426,330,424
(297,139,386)
12,919,103.760
1.00000
12,453,921,285
2013
8,621,493,305
2,239,836,432
62,565,263
462,982,950
(300,313,265)
12,513,052,693
1.00000
12,064,845,537
2012
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
8,982,403,643
2,179,940,065
52,528,676
564,683,270
(288,907,720)
13,132,169,069
1.00000
12,707.884,566
2010
9,210,638,643
2,419,511.046
54,988,887
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
1,684,439,737
143,634,396
639,825,947
(248.095,775)
13,057,672,383
1.00000
11,853,797,089
2006
7,913,843,803
1,368,116,067
165,117,456
483,558,265
(247,676.185)
11,794,104,029
1.00000
10.503,193,237
2005
6,775,427,147
1,084,068,343
135,508,543
385,678,161
(239,745,884)
10,423,734,072
1.00000
9,281,846,679
(1) Estimated Actual Taxable Value = Net Taxable Value
Notes: Property Taxes in Riverside County are subject to the State of California's Proposition 13, Janis -Gann Initiative which allows reappraisals of real property only
when there is a change in ownership or new, construction takes place. Further, the proposition limits property assessment increase to no more than two(2%) percent
annually. Property is assessed atone hundredpercent (1000%) of its fair market value at the time of new construction or change in ownership.
The tax rate is one (1 %) percent of the assessed value.
Source: Riverside County Assessor thru HDL Coren & Cone
186
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 2005 to FY 2014
$20,000
$15,000
$10,000
$5,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%
Percent Increase in Assessed Valuation
FY 2005 to FY 2014
12.86%
------------- 44-&3%-------------------------------------------------------------------------------------------
10.63%
fA*--------------------------- ----------------------------------------------------------------
5.29
3.22--
2005 2006 2007 2008 2009 10 2011 2012 013 2014
-3.43% -4.70% -4.60%
Historical Maior Additions
Annexations
FY
Retail Centers
FY
Cook Street Area
88/89
Town Center Mall
83/84
Country Club #28
93/94
Desert Springs Marriott
86/87
Price Club/Costco
93/94
One Eleven Town Ctr
88/89
Palm Desert CC #29
94/95
Mervyn's Center
92/93
Palm Desert Greens
04/05
Desert Crossing
95/96
Suncrest
04/05
Lucky's/Albertson Deep Canyon
96/97
Remodel 111 Town Ctr (Best Buy)
97/98
Gardens on El Paseo
98/99
Remodel Westfield Mall (Sears, Barnes & Noble)
04/05
Sears Automotive
04/05
Lowes Home Improvement
05/06
Walmart / Sams Supercenters
05/06
Kohls
07/08
Golfsmith Extreme
08/09
El Paseo Village
09/10
Best Buy & Ulta
11/12
Remodel Westfield Mall (Dick's/H&M/Restaurants)
12/13
PGA Tour Superstore
12/13
Source: Riverside County Assessor thru HDL Coren & Cone
187
City of Palm Desert
Supplemental FY 2014 and 2013 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency
FY 2014 Rate
FY 2013 Rate
County General
28.177327%
28.177327%
County Free Library
2.728242%
2.728242%
County Structure Fire Protection
5.873086%
5.873086%
City of Palm Desert (1)
0.000000%
0.000000%
Desert Sands Unified School District
36.221587%
36.221587%
Desert Community College
7.526714%
7.526714%
Riverside County Reg. Park & Open Space
0.426231%
0.426231%
Riverside County Office of Education
4.094919%
4.094919%
Desert Hospital
1.996808%
1.996808%
Coachella Valley Public Cemetary
0.339927%
0.339927%
Coachella Valley Recreation & Park
2.071624%
2.071624%
Coachella Valley Mosquito & Vector Control
1.369698%
1.369698%
Coachella Valley County Water
2.736607%
2.736607%
Coachella Valley County Water Imp. District 80
2.972906%
2.972906%
Coachella Valley County Water Storm Water Unit
3.464324%
3.464324%
General Purpose Basic 1%
100.000000%
100.000000%
(1) City of Palm Desert is a No -Low Property Tax City and the 7% represents what the state allocates to No -Low Property
Tax Cities.
Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041.
188
City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
City Direct
Basic
Total
Fiscal
County -wide
Direct Tax
Year
Levy
Rate
2014
1.00000
1.00000
2013
1.00000
1.00000
2012
1.00000
1.00000
2011
1.00000
1.00000
2010
1.00000
1.00000
2009
1.00000
1.00000
2008
1.00000
1.00000
2007
1.00000
1.00000
2006
1.00000
1.00000
2005
1.00000
1.00000
Overlapping
Rates
Desert Sands
Desert
Coachella
Coachella
Unified School
Community
Valley Water
Valley Water
District
College Dist.
District
District I.D. 58
0.10954
0.01995
0.10000
0.00000
0.11156
0.01995
0.80000
0.00000
0.11467
0.01995
0.08000
0.00000
0.10036
0.01995
0.08000
0.00000
0.08112
0.01995
0.06000
0.00000
0.07990
0.01995
0.04000
0.00000
0.07561
0.01995
0.04000
0.00230
0.07613
0.01995
0.02080
0.01560
0.07674
0.01995
0.02080
0.02520
0.09581
0.01994
0.02080
0.02690
Notes: Proposition 13 limits the ability of the city to raise the property tax rate.
Source: CalMuni Statistics Inc
189
City of Palm Desert
Principal Property Taxpayers
Current Year and Ten Years Ago
2014
Taxpayer
Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
WEA Palm Desert
$ 144,890,985
136,022,554
100,463,843
84,971,489
81,024,967
54,874,399
48,324,981
47,715,576
47,671,183
46,907,800
$ 792,867,777
1.16%
1.09%
0.80%
0.68%
0.65%
0.44%
0.39%
0.38%
0.38%
0.38%
6.35%
Marriott Desert Springs
Gardens on El Paseo LLC
WVC Rancho Mirage
Pru Desert Crossingll
LLC
Sinatra and Cook Project
Walmart Real Estate
Business Trust
Segovia Operations
Monarch Sevilla Venture
Sunrise Spectrum
Total
2005
Taxpayer
Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
Marriott Desert Springs
$213,586,558
72,968,401
66,824,744
53,836,747
41,796,910
40,737,303
40,106,920
30,507,068
29,674,017
26,742,879
$ 616,781,547
2.33%
0.80%
0.73%
0.59%
0.46%
0.44%
0.44%
0.33%
0.32%
0.29%
6.73%
Elisabeth E. Stewart
Desert Crossing II
Gardens SPE II
Marriott Ownership
Resorts -Timeshares
Big Horn Development
J H Palm Desert
PR XIV
CNL Hospitality Partners
L. P
Ashford Park Holdings
Total
Note: The estimated property tar revenue stated above is based upon net taxable values, tax ratios and base year values that impact the revenue
calculation. Asa result, parcels with the same assessed value that are assigned to d yjerent tar rate areas may contribute dissimilar amounts
oj'total revenue to the City and Redevelopment Agency.
Source: HdL Coren & Cone dine Riverside County Assessor 13114 and HdL Coren & Cone thni Riverside County Assessor 04105
190
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal
Fiscal Year of the Levy (1)(2)(3)
Year
Taxes Levied
Collections
Total Collections
to Date
Ended
forthe
Percentage
in Subsequent
Percentage i
June 30,
Fiscal Year
Amount
of Levy
Years (4)
Amount (4)i1)
of Lev
2005
3,768,896
3,501,718
92.91%
267,178
$
3,768,896
100.00%
2006
4,318,880
4,243,595
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%
282,866
$
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
4,366,451
79.70%
188,685
$
4,555,136
83.15%
2013
5,398,524
4,913,780
91.02%
1,228,718
$
6,142,498
113.78%
2014
5,623,740
5,048,787
89.78%
497,554
$
5,546,341
98.62%
(1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. 77ie first payment was
received in the fiscal year 1993194.
(2) City of Palm Desert is a "No -Low Property Tax City". Proposition 13 rolled the tax rates back to 1973
which is when the City of Palm Desert incorporated and the Property Tax rates were zero.
Based on current state law the County allocates 7% 9/'the 1 % assessed values within the City less the
Redevelopment Agency tax increment. Fiscal Year 1992193 was the first year to receive the No/Low taxes.
(3) Fiscal Year 1996197 final total collected includes adjustmentsfor No -Low property
tax collections from prior years modified by the County of Riverside. 771e 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, 2014.
(5) Includes amounts receivable for tax year 2013-2014 along with prior receivables due for prior tax years.
Source: Riverside County Auditor Controller Office and City of Palm Desert
191
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2014
Top 25 Sales Tax Generators (1)
Primary Economic Category
ALBERTSON'S FOOD CENTERS
SUPERMARKETS
APPLE STORES
SPECIALTY STORES
ARCO AM/PM MINI MARTS
SERVICE STATIONS
BEST BUY STORES LP
APPLIANCE / ELECTRONICS
CIRCLE K FOOD STORES
SERVICE STATIONS
CONSOLIDATED ELECTRICAL DISTRIBUTORS
BLDG. MATLS-WHSLE
COSTCO WHOLESALE COMPANY
GENERAL STORES
J.C.PENNY COMPANY INC
DEPARTMENT STORES
JW MARRIOTT DESERT SPRINGS
HOTEL / FOOD & BEVERAGE
KOHLS DEPARTMENT STORES
DEPARTMENT STORES
LOW E'S HOME CENTERS
BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES
DEPARTMENT STORES
MARSHALL'S STORES
APPAREL STORES
PETE CARLSONS GOLF & TENNIS
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 STORES/RESTAURANT
TOTAL WINE & MORE
SUPERMARKETS
USA SERVICE STATIONS
SERVICE STATIONS
WAL-MART SUPERCENTER
DEPARTMENT STORES
(1) Listed in Alphabetical Order
Millions
Sales and Use Tax Trends FY 2005 - 2014
% = % Change from Prior Year
$21.0
$19.0
u.o%
o.8%
-4.0%
- 2.e%
$17.0
219E
t.e%
-us%
tos%
$15.0
$13.0
8.3%
In
Lieu
$11.0
$9.0
H P
$7.0
1r/
10
n
e0 (P O
N
M
'Q
O
O
N
O
O
N
O
O
N
O O
O O O O
N N N N
O
N
O
N
O
N
Amounts
15.453
17.776
17.918
17.195 14.474 13.273 14.680
15.836
16.764
17.258
Note: Current California lawprohibits production ofindividual tax information as an effort not to infn"nge on proprietary
information, therefore confidential information which is protected bylaw is not disclosed.
* The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion ofsales tax that were exchanged.
Source: SBOE Data, MuniSenices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert
192
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector 2013 2012 2011 2010 2009 2008 2007 2006'' 2005 2004
Apparel Stores
$ 1,956,390 $
1,884,720
$ 1,738,840
$ 1,682,350 $
1,341,860
$ 1,424,880 $
1,592,070
$ 1,558,590 $
1,415,100
$ 1,328,310
General Merchandise
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
3,402,770
Food Markets
807,438
767,770
507,340
468,900
405,730
448,800
493,980
538,700
505,560
474,550
Restaurants
2,561,784
2,377,780
2,276,530
1,520,430
1,374,750
1,459,070
1,817,310
1,849,540
1,782,480
1,673,150
Furniture/Appliance
988,716
996,960
973,270
971,710
974,150
1,061,660
1,357,750
1,619,970
1,661,090
1,559,210
BIdg.Matls-Wholesale
1,113,345
984,810
882,170
730,230
582,410
865,640
956,330
697,730
732,280
687,370
Automotive
201,898
198,570
182,640
150,940
113,140
103,010
85,960
61,210
62,450
58,620
Service Stations
624,849
638,490
866,370
607,640
664,160
649,120
639,690
594,010
485,640
455,850
Other Retail
1,769,914
1,586,330
1,489,210
1,414,080
1,857,220
2,180,050
2,829,730
2,958,300
2,813,880
2,641,290
Non-Retail(1)
j 1,498,793
1,455,190
1,262,170
1,822,270
1,856,550
1,822,230
2,194,110
2,221,770
2,185,910
2,051,840
Totals $15,332,432 $14,674,320 $13,846,340 $12,578,780 $12,213,930 $13,281,190 $15,852,760 $16,027,200 $15,269,510 $14,332,960
City Sales Tax Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
(1) Non -retail area mix of manufacturers, distributors, builders and professionals selling direct to consumers.
Note: 77ie combined sales tax rate,fbr the City o/'Palm Desert is 7.75% which represents the State of California mandated tax rate
of 7.25E and 0.5% additional sales tax imposed by the County of Riverside.
The City of Palm Desert receives 1%ofall sales tax generated within the city limits.
Source: Muniservices LLC via California State Board ofEqualkation
193
Industry
General Merchandise
Other Retail
Non -Retail (1)
Restaurants
Apparel Stores
Furniture/Appliance
Service Stations
Bldg. Matls-Wholesale
Food Markets
City of Palm Desert
Supplemental Prinicipal Sales Tax Remitters
Current and Ten Calendar Years Ago
2013
Tax Amount
Percenta
3,809,305
24.84%
1,769,914
11.54%
1,498,793
9.78%
2,561,784
16.71%
1,956,390
12.76%
988,716
6.45%
624,849
4.08%
1,113,345
7.26%
807,438
5.27%
201,898
1.32%
2004
Tax Amount
Percenta
$ 3,402,770
23.74%
$ 2,641,290
18.43%
$ 2,051,840
14.32%
$ 1,673,150
11.67%
$ 1,328,310
9.27%
$ 1,559,210
10.88%
$ 455,850
3.18%
$ 687,370
4.80%
$ 474,550
3.31 %
$ 58,620
0.41 %
Totals $ 15,332,432 $ 14,332,960
(1) Non -retail are a mix of manufacturers, distributors, builders and professionals selling direct to consumers.
Note: Current California law prohibits production of individual tax information as an effort not to infringe on proprietary
information, therefore confidential information which is protected by law is not disclosed.
Source: Muniservices LLC via Calilornia State Board ol'Equalization
194
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business Type Activities
Successor Agency a
Special
Total
Percentage
Fiscal
Redevelopment
Assessment
Note
Capital
Primary
of Personal
Per
Year
Bonds
Bonds `
Payable
Leases
Government
Income b
Capita
2005
250,485,000
26,050,000
858,949
509,755
277,903,704
13.45%
5,6
2006
245,000,000
73,855,000
736,242
170,493
319,025,493
15.21%
6,4
2007
a 421,819,894
122,393,000
613,535
2,181,546
547,007,975
25.65%
10,9
2008
412,694,700
115,398,000
490,828
1,582,782
530,166,310
21.49%
10,4
2009
a 401,601,475
114,597,000
368,121
955,141
517,521,737
29.80%
10,0
2010
of 388,972,156
117,165,000
245,414
328,273
506,710,843
20.46%
9,7
2011
368,261,367
113,713,000
122,707
1,035,721
483,132,795
24.17%
9,8
2012
354,527,796
110,393,000
-
2,291,358
112,684,358
5.86%
2,2
2013
339,786,269
106,955,000
1,751,083
108,706,083
4.14%
2,1
2014
317,717,317
94,631,000
1,222,915
95,853,915
3.59%
1,9
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements
The city issued $50.51 million ofspecial assessment bonds in fiscal year end 2007 allocated to three separate assessment districts. In addition the City's
Redevelopment Agency issued $284.37 in bonds of which $183.15 was new debt.
b - Personal income, population and per capita information provided by John E. Husing, Ph.D. Economics & Politics, Inc., California Department of Finance,
and U.S Census Bureau.
` - Special Assessment includes Highlands Undergrounding AD No# 04-01, as of June 30, 2014 the balance was $1.526M.
a - Fiscal Year End 2009 the City issued the EnergyIndependence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million to fund the
Energy Independence Loan Program. The actual Bond /ssruance was for $2.015M. At June 30,2014 the outstanding balance was $1.266M.
e ' The City issued $1.136 million dollars ofthe Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011. At Jmze 30, 2014 the outstanding balance was $0.799M.
f- In addition the Palm Desert Financing A uthority issued $5.225 million dollars ofthe Energy Independence Program Variiable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing Aragust 2009 and Principal is paid annually on September 2
at June 30, 2014 the outstanding Balance was $4.655M.
g -On February 1, 2011 the State of California dissolved the City of Palm Desert Redevelopment Agency as part ofthe Statewide dissolution of all City Redevelopment Agencies.
which in turn created the Successor Agency to the Redevelopment Agency ofthe City of Palm Desert. For more information on the dissolution ofthe RDA please see note 18
and note 19. This debt is not the City's obligation.
195
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 FY2005 to FY 2014
196
City of Palm Desert
Supplemental Special Assesment Information
June 30, 2014
District Name\Description
2003 01-01 Revenue
Bonds 94-2 Suntertace
2003 01-01
Revenue Bonds 94-
3 Bono
2003 01-01
Revenue Bonds Silver
Spur Ranch
Utility Undergrouni ing
2004 R-Bonds
98 I
Canyons 8- Bighorn
Community Facilities
District No. 2005-1
(University Park) Special
Tax Bonds Series 2006A
Bond Issue Date
06/25/03
06/25/03
06/25/03
02/19/04
05/09/06
Final Maturity Date
09/02/14
09/02/20
09/02/28
09/02/18
09/01/37
Highest Interest Rate
4.80%
5.25%
5.375%
5.100%
5.424%
Bond Issue Amount
$ 930,000
$ 1,153,000
$ 2,340,000
$ 2,955,000
$ 67,915,000
Matured Principal
$ 775,000
$ 708,000
S 665,000
$ 1,360,000
$ 8,425,000
Caled Principal
$ 155,000
S 5,000
S 160,000
$ 1,305,000
$ 6,130,000
Outstanding Bonds (4)
$ -
$ 440,000
$ 1,515,000
$ 290,000
S 53,360,000
Redemption Premium
3.00%
3.00%
3.00"/
3.00%
3.00%
Original Parcels
71
121
201
97
37
Active Parcels
$ -
120
193
12
68
Reserve Requirement (5)
$ -
$ 51,000
$ 151,500
$ 30,500
$ 4,107,784
Reserve Balance 13/14 (1)
$ 83,840
$ 69,181
S 160,858
$ 88,299
$ 4,162,013
Principal Due 15/16 (2)
$ 80,000
$ 75,000
$ 90,000
$ 65,000
$ 1,345,000
Principal Levied 15/16 (3)
$ -
$ 73,982
$ 79,857
$ 68,642
S 1.345,000
Interest Due 15/16 (2)
$ 1,920
$ 24,167
$ 77,642
$ 12,786
S 2,762,784
Interest Levied 15/16 (3)
S -
$ 25,909
$ 90,955
$ 14,659
$ 2,794,290
13/ 14 Delinquency Rate
1.80%
3.06%
1.41 %
0.00%
1.30%
Arbitrage Installment Computation Date:
90% Rebate Due
09/02/19
09/02/19
12/17/I8
12/16/18
05/08/16
Arbitrage Yield Rate
7.9769%
6.672 %
5.1577 %
5.8386%
5.3599
Arbitrage -Amount Owed
-
-
-
-
-
Continuing Disclosure Last Report
d:
Issued:
12/13/2013
12J132013
12/13/2013
12/13/2013
12/13/2013
District Name\Description
2004-2 Section 29
Assessment District
Limited Obligation
Improvement Bonds
2004-1 Palm Desert
Highlands
Undergrounding
Series 2006
Series 2008
Community Facilities
District No. 91-1
Special Tax Refunding
Bonds
Series 2009A (Taxable)
Energy Independence
Program Limited
Obligation Improvement
Bonds
Series 2009E (Taxable)
Energy Independence
Program Limited
Obligation Improvement
Bonds
Bond Issue Date
3/29/2007
8/8/2006
12/192007
5/312009
922009
Final Maturity Date
9/2/2037
9/2/2036
10/12020
9%22029
922029
Highest Interest Rate
5.100%
5.15011.
4.000%
3.000%
3.000%
Bond Issue Amount
29,430,000
3,165,000
10,935,000
2,015,000
1,136,000
Matured Principal
3,350,000
303,000
7,235,000
433,000
204,000
Called Principal
2,305,000
1,373,000
-
398,000
179,000
Outstanding Bonds (4)
23,773,000
1,489,000
3,700,000
1.184,000
753,000
Redemption Premium
3.00%
3.001%
3.0011.
3.00%
3.00%
Original Parcels (Parcels in District)
707
172
1,153
61
49
Active Parcels
626
131
1,060
48
42
Reserve Requirement (5)
$ 1,762,360
N/A
$ 727,286
N/A
N/A
Reserve Balance 12/13 (1)
$ 1,826,785
N/A
$ 1,001,822
N/A
N/A
Principal Due 15/16 (2)
590,000
38,000
1,030,000
77,000
46,000
Principal Levied 15/16 (3)
644,466
35,721
1,030,000
77,000
46,000
Interest Due 15/16 (2)
1,172,360
74,871
118,983
34,365
21,900
Interest Levied 15/16 (3)
1,299,189
70,364
137,007
34,365
21,900
13/14 Delinquency Rate
1.75%
7.28%
0.70%
1.04%
1.04%
Arbitrage Installment Computation Date:
90 % Rebate Due
04/11/17
09/08/16
08/08/16
NA
NA
Arbitrage Yield Rate
5.0134%
5.0691%
3.8681 %
NA
NA
Arbitrage -Amount Owed
-
-
-
-
-
Continuing Disclosure Last Report
Issued:
12/13/2013
NA
12/13/2013
NA
NA
(1) Reserve Balances are as of 9130114.
(2) Amount represents principal and interest to be collected on the FY 14115 tax roll for Debi Senice Payment due in FY 15116.
(3) Levied amounts reflect adjustments for construclion funds. resenr fiords, redemption funds and other adjustments.
(4) Represents Outstanding Bonds after September 2, 2014 principal pgvment.
(5) Reserve Requirement as of 9/2114
Source., )rldan Financial Annual Report
City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30, 2014
2013/14 Assessed Valuation:
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT:
Desert Community College District
Desert Sands Unified School District
Palm Springs Unified School District
City of Palm Desert Community Facilities District No. 91-1
City of Palm Desert Community Facilities District No. 2005-1
City of Palm Desert 1915 Act Bonds
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 General Fund Obligation
Coachella Valley Recreation and Park District Certificates of Participation
Coachella Valley County Water District, ID No. 71 Certificate of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Riverside County Supported Obligations
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)
TOTAL CITY DIRECT DEBT
TOTAL GROSS OVERLAPPING DEBT
S 12,464,660,882
City's Share of
Total Debt 6/30/14
% Applicable (1)
Debt 6/30/14
S 316,283,162
19.366%
$ 61,251,397
282,295,470
34.875%
98,450,545
317,527,895
4.107%
15,258,651
4,730,000
100.000%
4,730,000
54,645,000
100.000%
54,645,000
28,531,000
100.000%
28,531,000
S 262.866,593
$ 692,656,315
5.947%
$ 41,192,271
334,515,000
5.947%
19,893,607
2,700,000
5.947%
160,569
66,445,000
34.875%
23,172,694
4,655,000
100.000%
4,655,000
2.150,000
27.561%
592,562
0
0.000%
-
cc� nQi
S 625,519,706 .288-100% $ 315,105,111
S 4,655,000
S 662,983,407
TOTAL NET OVERLAPPING DEBT S 662,431,326
GROSS COMBINED TOTAL DEBT $ 667,638,407 (2)
NET COMBINED TOTAL DEBT $ 667,086,326
(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 bonds and non -bonded
capital lease obligations.
Ratios to 2013-14 Adiusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt
2.11%
Total Direct Debt ($4,810,000)
0.04%
Gross Combined Total Debt
5.36%
Net Combined Total Debt
5.35%
Ratios to Successor Agencies Redevelopment Incremental Valuation
S (7,852,083.610)
Total Overlapping Tax Increment Debt
4.01%
Source: California Municipal Statistics, Inc., San Francisco
198
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Legal Debt Margin Calculation
for Fiscal Year 2014
.. _
Assessed Value
$ 12,464,660,882
Debt Limit(15% of Assessed Value)(1)
1.869,699,132
Debt Applicable to Limit
General Obligation Bonds
1,526.000
Leas: Amourd set aside for
repayment of general obligation
debt
Total Debt Applicable to Limit
1,526.000
Legal debt margin
FISCAL YEAR
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Debt Lima
1,397,304,489
1,582,592.579
1,783,572,979
1,971,408,152
2,076,172,690
1,999,731.410
1,969,825.360
1,884,624.932
1,811,620,824
1.869,699,132
Total Not debt applicable to limit
2,783,000
2.748,000
21702,000
117194000
1,658.000
1.624,000
11589d000
1.526,000
Legal debt margin
1,397,304,489
1, 582,592,579
1,780,789,979
1,968,660,152
2,073.470,690
1,998,012,410
1,968,167.360
1,883,000.932
1,810,031.824
1,868,173,132
Total net debt applicable to the limit '
as 1. percentage of debt limb,;.,- _,_,
01
01
0.161
0.141
0.13%
0.0.
0.081
0.091
0.09%
0.081
M Samoa 43603 I th, C.I/ rnia Goer —1 Cade.
Se....: C dif ,gym ea„ rerp& Swfhe e, me..5—
City of Palm Desert
Pledged -Revenue Coverage
Last Ten Fiscal Years
Special Assessment Bonds Tax Increment °
Special
Debt Service
Special
Fiscal
Assessment
Assessment
Year
Collections
Principal
Interest
Coverage
Collections
2005
2,878,134
2,073,000
1,483,245
0.8093
23,585,980
2006
a 2,788,698
1,645,000
1,378,548
0.9223
24,065,285
2007
a 4,444,967
1,972,000
3,464,355
0.8176
28,675,094
2008
6,245,888
1,635,000 `
5,414,793
0.8860
41,978,187
2009
° 8,486,467
2,816,000
5,666,827
1.0004
33,095,785
2010
° 6,304,563
3,793,000
5,515,677
0.6773
33,292,785
2011
9,695,868
3,452,000
5,595,543
1.0717
39,400,572
2012
8,822,163
3,332,000
4,897,651
1.0720
32,941,958 9
2013
9,524,786
3,786,896
5,255,558
1.0533
33,473,418 9
2014
t 14,895,214
12,324,000 t
4,954,432
0.8621
38,444,447 9
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements
Debt Service
Principal Interest Coverage
5,260,000
12,366,733
1.338
5,485,000
12,409,968
1.345
7,704,000
16,434,841
1.188
10,610,000
21,402,246
1.311
12,610,000
20,043,623
1.013
14,145,000
19,516,455
0.989
22,240,000
18,767,205
0.961
15,290,000
17,651,958
1.000
16,315,000
17,158,418
1.000
23, 650, 000
14,794,447
1.000
° - The city issued $50.51 million ofspecial assessment bonds in fiscal year end 2007, and an additiottal $17.915 in fiscal year end 2008from the same district.
The RDA issued $284.37 million ofdebt of which $183.15 was new debt.
b - Tax increment bonds are backed by property tax increment based on calculation provided by the Riverside County tar assessor office.
Additional information on tax increment can be found in the notes to the financial statements.
` - The 1997 91-1 Bonds was refimded in fidl on April 1, 2008, with Communities Facilities District no. 91-1 Improvement Special Tax Refunding Bonds
Additional principal on note 14 reflects the total principal paid along with the refutnded portion.
d - The City issued $2.015 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2009-2010 with the first interest payment paid on March 2, 2010.
e - The City issued $1.136 million dollars of the Energy Independence 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 oftbe Energy Independence Program Variable Rate Demand Lease
Revenue Bonds, Series 2009(Federally 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 CFD 2005-1 (University Park) was prepaid in the amotnt of$6.169 Million. The prepaid
$6.269M and $1.280 (2004-1) were caled during on September 2, 2014.
s 77je total amount payable for the bonded obligations is disbursed by the State ofCalifonia Department of Finance to the City of Palm Desert Successor Agency.
The annual collection equal the annual obligations.
all
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 a b Income CY Rate c Population (Decrease) Rate c ,
2014
50,417
0.9%
$ 2,667,367,705 $
52,906
4.90%
2,279,967
1.10%
8.40%
2013
49,949
1.0%
$ 2,627,948,478 $
52,613
6.00%
2,255,059
1.23%
10.20%
2012
49,471
0.7%
$ 2,589,111,801 $
52,336
7.74%
2,227,577
0.44%
11.99%
2011
49,111
-5.7%
2,550,849,065
51,940
8.67%
2,217,778
3.66%
14.44%
2010
52,067
1.1%
2,513,151,788
48,268
8.8%
2,139,535
1.51%
14.65%
2009
51,509
1.2%
2,476,011,613
48,069
6.8%
2,107,653
0.93%
11.46%
2008
50,907
2.3%
2,439,420,309
47,919
4.1%
2,088,322
6.91%
8.6%
2007
49,752
0.4%
2,132,710,348
42,867
3.6%
2,031,625
4.01%
6.0%
2006
49,539
0.5%
2,097,434,084
42,339
2.9%
1,953,330
4.07%
5.0%
2005
49,280
10.0%
2,066,437,521
41,933
3.1%
1,877,000
5.64%
5.4%
a - Personal income, population and per capita information provided by John E. Husing, Ph.D. Economics & Politics Inc.,
Californa Department of Finance., and U.S. Census Bureau.
b - Personal Income estimated based on average growth rate of previous four years. The growth rate factor used was 1.5%. Income data will be
updated once the actual data is available.
c - Unemployment rate for fiscal year 12113 is based on annual information from State of California Employment Development Department
Labor Market Information Division (not seasonally adjusted)
Sources: State Department of Finance, US. Dept of Labor, John E. Husing, PhD, Economics & Politics, Inc. State Employment Development Department
201
City of Palm Desert
Principal Employers
Current and Ten Years Ago
2013 s
2004'
Percentage of
Percentage of
Employer
Employees
Rank
Total City Employer
Employees
Rank
Total City
Employment 3
Employment
JW Marriot-Desert Springs
Resort & DS Villas
1 2,304
1
8.15%
Universal Protection Services
1
1,500
2
5.31%
Securitas-Security Service
USA
700
3
2.48%
Avida Caregivers-P. Desert
j 550
4
8.15%
Sunshine Landscape
500
5
1.77%
Bighorn Golf Club
250
6
0.88%
Costco
1
250
7
0.88%
Westin -Desert Willow
248
8
0.88%
Time Warner Cable
236
9
0.83%
Marriott Shadow Ridge
208
10
0.74%
Totals 6,746 30% Totals
(I) The information for 2004 is not available, tracking for this data began in 2006
(2) As of June 30, 2013
(3) Percentage of Total City Employment data used was Calendar Year end 2013
Sources: InfoUSA.com - Federal and State Government not included, John E. Husing. PhD, Economics & Politics, Inc.
0%
202
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2014
City/ Municipal Government
Form of Government: Council - City Manager/Charter City
Date of Incorporation:
Number of Employees:
Size of City:
Geographic Location:
Streets:
Number of Business Licenses:
Number of Hotels & Rooms:
CONTRACT SERVICES:
Police Department
Fire Department
Animal Control
Water & Sewer
Trash Collection
Electric
Gas
Telephone
Airport
November 26, 1973
112 Full-time Employees
25.5 Square Miles
Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
170 paved street miles
8,582 active business licenses
15 hotels, 2,202 rooms
Contract with Riverside County Sheriff - 74 positions plus 31 support staff
Contract with Riverside County/State Fire 62 positions plus 6 Fire Prevention staff
Riverside County Animal Services
Coachella Valley Water District
Burrtec - Waste Management
Southern California Edison
Southern California Gas
Verizon
Palm Springs International Airport
Public Education
Elementary School (grades K - 5)
4
Middle School (grades 6 - 8)
1
High School (grades 9 - 12)
1
Community College - College of the Desert
1
CSUSB - Palm Desert Campus
1
UCR - Palm Desert Graduate Center
1
Insurance Coverage
General Liability Coverage
(Excludes Earthquake & Flood)
Special Events
Worker's Compensation
Property Insurance
Health Insurance
Medical
Dental
Vision
Disability Insurance
Life
Retirement
Source: City of Palm Desert
Calif. Joint Powers Insurance Authority $50 Million/Event
Excess Coverage: American Guarantee & Liab. Insurance
Joint Powers Insurance Authority $1 Million
Calif. Joint Powers Insurance
Robert Driver
$5 Million
Based on Prop. Value
PERS; choice of PPO, HMO, Kaiser
Delta Dental
Vision Service Plan
Disability - Standard Insurance Company
Standard Insurance Company
California PERS - Public Employees' Retirement System
City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program
Last Ten Fiscal Years
Function lProgram 2014* 2013' 2012* ' 201 V 2010 2009 2008 2007 2006
2005
General Government
City 34 33 26 31 31 49 49 51 53
52
Economic Dev & Housing # 13 12 17 24 25 19 19 19 19
19
Public Safety 25 24 24 25 26 35 35 35 28
28
Police & Fire (1) 173 157 162 155 151 148 146 143 129
123
Public Works 40 38 40 47 49 53 52 44 49
39
277
Totals 285 264 271 284 284 318 315 310 289
(1) The City operates as a "contract city" utili=ing, primarily, agreement isith other governmental entities, privatefirms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, Cal -Fire, animal control, health services,
legal services and landscape maintenance.
* As ofJime 2011 realignments it made due to budget cuts, retirements and layoffs, these continued to FT 2013.
" On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Stater ide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
Cnvrro• /';n, ..f P.. L.. n„�.,.. R: _,..,..:,.r DL._ ram,. tt'_.Y:_ n___"____' _ten___-._ _ -.., r. .. ... .. .. ... .,... _
City of Palm Desert
Operating Indicators by Function / Program
Last Nine Fiscal Years
Function lProgram 2014 1
2013
2012 1
2011 1
2010 1
2009 1
2008
2007
2006
General Government
Business License Inspections 33
196
477
515
473
617
489
447
420
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons) 57,935
52,131
49,205
53,108
51,483
58,198
67,940
73,467
71,820
Recyclables Collected 26,424
24,862
23,588
22,867
20,591
22,155
23,798
24,089
24,359
Public Safety
Physical Arrests 1,348
986
1,012
1,134
1,342
1,446
1,550
1,430
543
Parking Violations 386
198
569
332
933
1,278
770
694
1,374
Traffic Violations 5,284
5,080
6,216
8,360
10,200
9,162
5,929
6,875
4,527
Emergency Responses -Fire Department 8,235
7,907
7,151
7,720
7,772
7,149
6,908
6,785
6,600
Fires Exfinguished 106
104
101
107
104
119
154
241
928
Fire Inspections 2,552
3,048
5,235
4,651
4,825
8,248
4,267
5,934
1,845
Building Permits Issued 5,552
4,548
3,448
3,711
3,230
3,637
4,012
5,813
5,683
Building Inspections Conducted 24,830
19,107
14,749
14,069
14,080
18,040
26,401
33,215
29,925
Public Works
Street Resurfacing (miles) (3) 34
23
60
5
8
13
17
9
11
Parks, recreation & culture
Athletic Field Permits Issued 6,548
2,635
3,682
6,050
6,281
6,149
5,949
4,510
2,967
Amphitheater/ Pavilions Permits Issued 247
128
266
286
226
133
133
84
81
Community Center Admissions 50,204
53,062
69,240
30,298
59,986
55,954
112,540
97,339
92,083
Aquatic Center Admissions (2) 43,545
48,663
45,909
4,329
(1) The City operates as a "contract city " utilizing, primarily, agreement with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services,
legal services and landscape maintenance.
(2) Aquatic Center operations began in June 2011, managed by the YMCA.
(3) New methods of'street resurfacing have improved efficiency, therefore equaling more miles resurfaced.
Note: The City of Palm Desert chose to implement this schedule retroactively.
Governments are encouraged, but not required, to implement retroactively. Ultimately, this schedule will include ten years.
Sources: Riverside County Sherill's Dept., California State Department of Forestry & Fire Protection,
City ofPalm Desert, Coachella Valley Recreation & Park District, Burrtec Waste and The YMCA.
205
City of Palm Desert
Capital Asset Statistics by Function / Program
Last Nine Fiscal Years
Function/Program 2014
2013
2012
2011
2010
2009
2008
2007
2006
General Government
Contracted Services (1)
J
Collection trucks 30
S6
..
-
-
._,
...
71
Public Safety - Police & Fire
Police Stations 1
1
1
1
1
1
1 '
Police Sub Stations 1
1
0
_
2
2
2
2
Patrol Units -Cars 26
28
31
_ _
29
29
28
Patrol Units -Motorcycles 10
i_
10
7
-
4
Fire Stations 3
3
3
3
3
3
3
3
3
Fire Trucks 4 plus 1 Reserved
4 plus 2 Reserved
4 plus 2 Reserved
4 plus 2 Reserved
4 plus 2 Reserved
4 plus 2 Reserved
4 plus 2 Reserved
4 plus 2 Reserved
4 plus 2 Reserve
Ambulance i 4 plus 3 Reserved
4 plus 1 Reserved
4 plus 1 Reserved
3 plus 1 Support
3 plus 1 Support
3 plus 1 Support
3 plus 1 Support
3 plus 1 Support
3 plus 1 Suppoi
Fie Prevention Pick-ups 3
3
3
3
3
3
3
3
3
Public Works
-
- I
Streets (miles) 170
170
174
159
159
159
159
154.11
154.11
Traffk: Signals 98
98
98
97
99
99
99
87
85
Parks, recreation & culture
t
Acreage 201
201
201
201
201
212
200
200
200
Total Parks i 13
13
13
13
13
14
13
13
11
Playgrounds 16
16
16
16
16
16
9
8
7
Baseballfsoftball diamonds 8
8
8
8
8
9
11
11
8
Soccer/football fields 9
9
9
9
9
9
7
7
5
Basketball Courts 11
11
11
11
11
11
9
9
6
Tennis Courts 10
10
10
10
10
10
10
10
8
Volleyball Courts 8
8
8
8
8
8
10
10
6
Community Centers 2
2
2
2
2
2
2
2
2
Skateboard Parks 2
2
2
2
2
2
2
2
1
Aquatic Center (2) 1
1
1
1
Commercial Office Space'
(Parkview Office Complex)
Leaseable Space (square feet) 50,322
50.322
50,322
50.322
50.322
50,322
50.322
50,322
50,322
Occupancy Rate 86%
88%
831b
901.i,
97'5
00%
100%
Number of Tenants by Type
-x
Government (State. local regional) 9
8
10
10
10
11
11
10
9
Non -Profit 4
4
5
7
7
5
7
6
6
Private 4
5
3
4
6
7
6
8
8
Square Footage lease by tenant
Govemment(State, local regional) 31,921
31,321
32,021
322696
34.617
34.617
34.4C2
33,298
•71
32,457 ff
Non -Profit 3,294
4,467
5.215
5.663
4,735
4,735
6,188
5,708
5,708
Private - 8,025
8,513
4,310
7,350
10,212
10,212
9,732
11,316
10,836
Vacant 7,082
6,021
8,776
4,613
758
758
0
0
1,321
Mun icipal Golf Cou rse
-
(Desert Willow Golf Resort)
Courses- Fire Cliff and Mountain View 2
2
2
2
2
2
2
2
v.
2
Holes 36
36
36
36
36
36
36
36
36
Golf Carts { 172
172
172
172
160
160
160
160
160
Clubhouse square footage 39,000
39,000
39,000
35.00;0
33,000
33,000
33,000
33,000
33,000
Rounds per Course.
Fire Cliff 45,841
45,645
45,005
44,745
45,988
46,041
46,688
47,263
46,602
Mountain View 43,160
38,669
41,666
39,178
37,146
34,899
43,898
41,182
43,725
Total Annual Rounds 89,001
84,314
86,671
83,923
83.134
80.940
90,586
88,445
90,327
(1) The City operates as a "contract city" utilizing. primari(g agreement with other goirrnmenial entities, private firms and iad'riduads
to provide mnices.
Contracied.sendces include: Police and Fire protection through the County of Riverside, animal control, health services.
legal seniors and landscape maintenance.
(2) Aquatic Center operations began in June 2011
Nam, The City of Palm Desert chase to implement this schedule retroactiiely.
Goiernments are encouraged but not required to implement relmactiiely. Ultimatelv. this schedule %ill include ten years.
Sources: Riverside County SheriJps Dept., California Slate Department of Forestry & Fire Protection,
QV of Palm Desert, Coachella V dlev Recreation & Park District, Burriec Waste
NOR
Supplemental Successor Agency to Redevelopment 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.
207
THIS PAGE INTENTIONALLY LEFT BLANK
' ♦ ��s City of Palm Desert
♦ rqr
' I ♦�h'�Y ` of PALyDp�
DINAH-SHOREfDR ♦ �p Gt�
w
W
Redevelopment
2 Agency
GERAL•D-FORD-DR
I Project Areas
Project Area No. 2
1987 1
NTR
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to
:Y•i N•E w
Project Area No. 3
1991 HOVLEY-LN•E
1}} Project Area No. 4
1993
' 1 410 z,-} P a 9 -
Project Area No' 1. a z z w
Original x N a. o
19 75
STATE•HWY•111
_ EL-PASEO
1 MOUNTAIN•DR
O
1' 1 =Q Q FAIRWAY DR
� a
� GRAPEVINE-ST p
1 a Project Area No. 1 - Original (1975)
1 HAYSTACK-RD Project Area No. 1 - Added Territory (1982)
1 0 Project Area No. 2 (1987)
1 �
1 MESA-VIEWD,,? ,POR-T00y 0 Project Area No. 3 (1991)
0 Project Area No. 1 Project Area No. 4 (1993)
_
1 ^a Added Territory � City Limits
d 1982
1�
1
1
1
1
1
1
%
1
1
I
�
N
WE
S
0 0.5 es iiiiiiiiia
Mil
July, 2004
?nn
City of Palm Desert
Project Area Statistics
June 30, 2014
Description
RDA 1
Original
RDA I
Annex
RDA 2
RDA 3
RDA 4
Date Project Area was Established
July 16, 1975
November 25, 1981
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
Project Duration
July 16, 2016
November 25, 2022
July 15, 2028
July 17, 2032
July 19, 2034
Repayment of Indebtedness
July 16, 2026
November 25, 2032
July 15, 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)
5 758,000,000
$ 500,000,000
$ 800,000,000
$ 360,000,000
$ 600,000,000
$ 1,639,897,172
Bonded Debt Limits (1)
none
$ 200,000,000
$ 150,000,000
$ 100,000,000
$ 135,000,000
$ 307,480,720
Types of Area in Project
R, C, P
R, C, P
R, C, P, O
R, 1, C, P
R, 1, C, P
Acreage Size of Project Area
580
5,140
2,927
764
2,260
R = Residential, C= Commercial, P= Public Facilities, 1= Industrial, 0= 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) Uncertainty exists with regards to TI Limit relative to Dissolution Law.
Source: Successor Agency to the Palm Desert Redevelopment Agency
210
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2014
DESCRIPTION
PROJECT AREA #1
$22,070.000
Tax Allocation Bonds
$19.000,000
Tax Allocation Bonds
$24,945,000
Tax Allocation Bonds
$62,300,000
Tax Allocation
Revenue
Tax Allocation
Revenue
Years
28
27
21
24
11
Bond Issue Date
03/13/02
08/05/03
06/24/04
07/06/06
01/09/07
Final Maturity Date
04/O1/30
04/01/30
04/O1/25
04/01/30
04/01/18
Highest Interest Rate
5.100%
5.000%
5.000%
5.820%
5.000%
Bond Issue Amount
$ 22,070,000
$ 19,000,000
$ 24,945,000
$ 62,320,000
$ 32,600,000
Outstanding Bond Amount
$ 22,070,000
$ 12,660,000
$ 15,285,000
$ 43,760,000
$ 13,870,000
Call Premium
0 - 2.00%
0.00%
0.00%
0.00%
0.00%
Bond Insurer
MBIA
MBIA
AMBAC
MBIA
MBIA
Reserve Requirement (1)
2,804,344
950,000
2,430,750
13,117,662
13,116,979
Reserve Balance (1)
(1)
(1)
(1)
(1)
(1)
Called Bonds
$ -
$ -
$ -
$ -
$ -
Principle due 14/15
-
0
1,235,000
2,905.000
3.230,000
Interest Due 14/15
1,114,665
633,000
728.588
2,262,482
686,000
Arbritage Yield Rate
5.2939%
4.8571°%
4.7961%
4.7182%
3.8374%
Arbritage-Amount Owed
-
-
Arbritage Five Year Due Date:
04/13/17
08/05/18
06/24/19
07/06/16
01/09/17
DESCRIPTION
PROJECT AREA #2
PROJECT AREA #3
$17,310,000
Tax Allocation Revenue
Bonds
$15,745,000
Tax Allocation Revenue
Bonds
$67,600,000
Tax Allocation Revenue
Bonds
$4,745,000
Tax Allocation Bonds
$15,050,000
Tax Allocation
Revenue
Years
20
30
30
30
35
Bond Issue Date
07/17/02
03/26/03
07/25/06
08/05/03
07/25/06
Final Maturity Date
08/01/22
08/01/33
08/01/36
04/O1/33
04/01/41
Highest Interest Rate
5.000%
5.00°%
6.10°%
5.13%
6.10%
Bond Issue Amount
$ 17,310,000
$ 15.745,000
$ 67,618,213
$ 4,745,000
$ 15,059,526
Outstanding Bond Amount
$ 9,550,000
$ 15,745,000
$ 49,732,661
$ 3,570,000
$ 14,028,715
Call Premium
0 - 2.00%
1 - 2.00%
0.00%
2.00%
0.00%
Bond Insurer
MBIA
MBIA
AMBAC
MBIA
MBIA
Reserve Requirement (1)
1,324,750
769,006
5,309,825
297,953
1,034,250
Reserve Balance (1)
(1)
(1)
(1)
(1)
(1)
Called Bonds
$ -
$ -
$ -
$ -
Principle due 14/15
870.000
-
1,759,239
120,000
285,721
Interest Due 14/15
436,113
769,006
2,394,399
173,272
578,154
Arbritage Yield Rate
4.7043%
4.9502%
5.2580%
4.9358%
5.3626%
Arbrita e-Amount Owed
I -
-
Arbritage Five Year Due Date:
07/17/17
03/26/18
07/25/16
08/05/18
07/21/16
DESCRIPTION
PROJECT AREA #4
HOUSING FUND
$11,020,000
Tax Allocation Revenue
Bonds
$15,695,000
Tax Allocation
Revenue Bonds
$19,273,089
Tax Allocation
Revenue
$12,100,000
Tax Allocation Revenue
Bonds
$86,155.000
Tax Allocation
Revenue
Years
30
30
28
30
20
Bond Issue Date
03/01/98
11/28/01
07/25/06
09/05/02
02/07/07
Final Maturity Date
10/01/28
10/01/31
10/01/34
10/01/31
10/01/27
Highest Interest Rate
5.00%
4.80%
5.56%
4.90%
5.00°%
Bond Issue Amount
$ 11,020.000
$ 15,695,000
$ 19,273,089
$ 12,100,000
$ 86,155,000
Outstanding Bond Amount
$ 7,805,000
$ 12,540,000
$ 16,208,988
$ 9,130,000
$ 61,445,000
Call Premium
0 - 2.00%
0 - 2.00%
0.00%
l - 2.00%
0.00%
Bond Insurer
MBIA
MBIA
MBIA
MBIA
MBIA
Reserve Requirement (1)
768,020
482.890
3,740,843
767,625
7,887,224
Reserve Balance i
(1)
(1)
(1)
(1)
(1)
Called Bonds
$ -
$ -
$
$
g
Principle due 14/15
360,000
375M00
718,718
330,000
5,505,000
Interest Due 14/15
394,973
584,038
599.477
432,848
2,813,563
Arbritage Yield Rate
5.2271%
4.9464%
5.1111%
4.8290°%
4.1830%
Arbrita e-Amount Owed
-
_
Arbritage Five Year Due Date:
10/01/17
11/28/16
07/25/16
09/05/17
02/07/17
(1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero.
Source: City of Palm Desert and Successor Agency to the Palm Desert Redevelopment Agency 211
City of Palm Desert
FY 2013/2014
Breakdown of Basic 1% Property Tax Levy Rates
Redevelopment Project Areas
Rate
PA 1 Original
PA 1 Annex
PA 2
PA 3
PA 4
Taxing Agency
County General
28.39555017%
28.30636343%
26.07500477%
25.3381733%
21.91559782%
County Library
2.74936671%
2.89344072%
2.94849765%
2.8164746%
2.82910937%
County Fire
5.91856279%
6.22871398%
6.34723228%
6.0630303%
6.09022556%
City of Indian Wells Annex
0.00000000%
0.00000646%
0.00000000%
0.00000000%
0.00000000%
Supervisor Road District 4
0.00000000%
-0.00028715%
0.00000000%
0.00000000%
0.00000000%
City of Palm Desert
°
0.00000000%
2.26269285%
5.41874681%
4.54131998%
8.68225230%
Rancho Mirage Library
0.00000000%
0.01391895%
0.00000000%
0.00000000%
0.00000000%
Rancho Mirage Fire Asmt.
0.00000000%
0.02996333%
0.00000000%
0.00000000%
0.00000000%
Desert Sands Unified School District
36.50206473%
36.97242097%
22.83126163%
37.39307364%
37.56077766%
Palm Springs Unified School District
0.00000000%
0.00000000%
11.87710358%
0.00000000%
0.00000000%
Desert Community College
7.58499545%
o
8.05201960 /0
o
8.13436162 /0
o
7.77014_04 /0
0
7.80499182 /o
County Superintendent of Schools
4.12662663%
4.38071178%
4.42550982%
4.22735351 %
4.24631734%
Riverside County Reg Park & Open
Space
0.42951122%
0.42814638%
0.39442809%
0.38327628%
0.44198776%
Coachella Valley Public Cemetary
0.34255805%
0.30233281%
0.21426261%
0.35091592%
0.35249265%
Palm Springs Public Cemetary
0.00000000%
0.000282067
0.07043009%
0.00000000%
0.00000000%
Desert Hospital
2.01226892%
1.26036077%
1.73763754%
1.06447601%
0.00000000%
Coachella Valley Mosquito & Vector
Control
1.38030289%
1.46529084%
1.48027487%
1.41399102%
1.42033627%
Coachella Valley Recreation & Park
2.08766459%
1.84251927%
1.30578954%
2.13862054%
2.14821440%
Coachella Valley Water District
2.75779659%
� � °
2.928_5561 /0
°
2.95753818 /o
2.82511143%
2.87534753%
Coachella Valley Resource Cons.
0.00000000%
0.02171665%
0.03791597%
0.03110480%
0.03637874%
Coachella Valley Imp District 80
2.22158244%
0.97420925%
0.00000000%
0.06657408%
0.00356502%
Coachella Valley Water District Storm
Water Unit
3.49114882%
1.60899686%
3.74400496%
3.57636253%
3.59240576%
ERAF RDV
0.00000000%
0.00000000%
0.00000000%1
0.00000000%1
0.00000000%
General Purpose Basic 1% Rate
100.00000000%
100.00000000%
100.00000000%
100.00000000%
100.00000000%
Source: Successor Agency to the Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
THIS PAGE INTENTIONALLY LEFT BLANK
213
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Original
Last Ten Fiscal Years
FV
2014
2013
2012
2011
2010
Secured:(I)
Land
$ 248,856,920
$ 249,394,404
$ 244,450,814
$ 246,861,736
$ 249,715,896
Improvements
616,377,829
627,764,488
626,574,093
610,067,877
613,769,221
Personal Property
4,011,017
3,908,602
2,933,226
3,127,559
3,399,575
Penalty
0
0
0
0
0
Less Other Exempt
(2,880,165)
(1,999,569)
(1,960,491)
(895,957)
(898,089)
Less Home Owner Value
(42,000)
(42,000)
(56,000)
(61,600)
(49,000)
Less B Inv. Value
0
0
0
Total Net Assessed Taxable Secured Value
866,323,601
879,025,925
871,941,642
859,099,615
865,937,603
Unsecured:
Land
1,386
99
99
99
99
Improvements
65,066,506
63,729,112
60,147,367
57,617,429
63,627,182
Personal Property
56,574,308
43,573,580
48,331,227
48,607,315
53,892,307
Penalty
0
0
0
0
0
Less Other Exempt
(210,855)
(223,222)
(64,730)
(63,954)
(68,471)
Total Net Assessed Taxable Unsecured Value
121,431,345
107,079,569
108,413,963
106,160,989
117,451,117
Total Net Assessed Taxable Value
S 987,754,946
S 986,105,494
S 980,355,605
$ 965,260,504
$ 983,388,720
Fl
2009
2008
2007
2006
2005
Secured:(1)
Land
S 241,759,729
$ 233,208,647
$ 216,759,847
$ 209,051,600
$ 193,066,855
Improvements
610,061,698
584,395,005
552,604,613
515,092,610
468,555,559
Personal Property
5,000,717
4,856,393
6,825,265
7,420,696
4,909,559
Penalty
0
0
0
0
0
Less Other Exempt
(455,200)
(1,570,949)
(760,295)
(610,338)
(730,777)
Less Home Owner Value
(70,000)
(63,000)
(70,000)
(70,000)
(70,000)
Less B Inv. Value
0
0
0
0
0
Total Net Assessed Taxable Secured Value
856,296,944
820,826,0%
775,3599430
730.884.568
665,731,196
Unsecured:
Land
1,267
1,245
1,220
396
156,701
Improvements
69,008,584
60,185,535
56,536,963
48,736,306
519133,704
Personal Property
60,792,341
57,684,012
57,404,440
47,480,402
51,093,465
Penalty
0
0
0
0
0
Less Other Exempt
(66,749)
(56,785)
(32,652)
(32,573)
(39,043)
Total Net Assessed Taxable Unsecured Value
129,735,443
117,814,007
113,909,971
96,184,531
102,344,827
Total Net Assessed Taxable Value
$ 9869032,387
S 938,640,103
S 889,269,401
S 827,069,099
S 768,076,023
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
214
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 1 -Original
2014 versus 2013
FY
2014
2013
% Change
Secured:(1)
Land
$
248,856,920
$
249,394,404
-0.2%
Improvements
$
616,377,829
$
627,764,488
-1.8%
Personal Property
$
4,011,017
$
3,908,602
2.6%
Penalty
$
0
$
0
0.0%
Less Other Exempt
$
(2,880,165)
$
(1,999,569)
44.0%
Less Home Owner Value
$
(42,000)
$
(42,000)
0.0%
Total Net Assessed Taxable Secured Value
$
866,323,601
$
879,025,925
-1.4%
Unsecured:
Land
$
1,386
$
99
1300.0%
Improvements
$
65,066,506
$
63,729,112
2.1%
Personal Property
$
56,574,308
$
43,573,580
29.8%
Penalty
$
0
$
0
0.0%
Less Other Exempt
$
(210,855)
$
(223,222)
-5.5%
Total Net Assessed Taxable Unsecured Value
$
121,431,345
$
107,079,569
13.4%
Total Net Assessed Taxable Value
$
987,754,946
$
986,105,494
0.2%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
215
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Years
FY
2014
2013
2012
2011
2010
Secured:(l)
Land
$ 1,541,217,133
$ 1,498,607,642
$ 1,485,119,173
$ 1,520,035,284
S 1,556,322,273
Improvements
3,162,274,409
2,993,556,770
2,972,294,294
3,064,294,006
3,138,650,280
Personal Property
2,716,205
2,686,088
2,902,053
3,304,016
2,462,676
Penalty
0
0
0
0
0
Less Other Exempt
(103,135,553)
(93,807,367)
(92,647,477)
(89,778,462)
(86,825,212)
Less Home Owner Value
(26,742,256)
(27,231,015)
(28,318,713)
(29,088,641)
(29,699,188)
Less B Inv. Value
Total Net Assessed Taxable Secured Value
4,576,329,938
4,373,812,118
4,339,349,330
4,468,766,203
4,580,910,829
Unsecured:
Land
0
266,702
547
262,619
623
Improvements
32,637,340
20,144,944
30,038,023
31,662,152
33,207,261
Personal Property
53,241,720
50,154,674
56,942,231
64,035,933
59,544,019
Penalty
(8,199,594)
(8,269,749)
(4,784,840)
0
0
Less Other Exempt
0
7,000
28,000
(3,119,713)
(7,874,926)
Total Net Assessed Taxable Unsecured Value
77,679.466
62,303,571
82,223,961
92,840,991
84,876,977
Total Net Assessed Taxable Value
S 4,654,009,404
S 4,436,115,689
S 4,421,573,291
$ 495619607,194
1 S 4,665,787,806
2009
2008
2007
2006
2005
Secured:(1)
Land
$ 1,646,837,956
$ 1,548,363,317
$ 1,404,883,142
$ 1,221,817,819
S 1,099,974,404
Improvements
3,216,329,372
3,098,549,660
2,848,708,294
2,548,978,946
2.322,285,503
Personal Property
4,295,752
4,850,231
5,159,912
5,081,062
4,080,748
Penalty
0
0
0
0
0
Less Other Exempt
(86,439,305)
(84,042,297)
(71,117,424)
(75,212,626)
(72,356,678)
Less Home Owner Value
(30,414,878)
(30,606,235)
(30,941,142)
(30,902,546)
(31,114,156)
Less B Inv. Value
0
0
0
0
0
Total Net Assessed Taxable Secured Value
4,750,608,897
4,537,114,676
4,156,692,782
3,669,762,655
3,322,8699821
Unsecured:
Land
56,456
714
781
0
1,449
Improvements
37,501,662
36,438,840
38,277,529
33,710,842
33,165,394
Personal Property
67,485,677
62,971,014
57,326,123
51,779,049
53,234,502
Penalty
0
0
0
0
0
Less Other Exempt
(11,366,822)
(7,990,591)
(3,164,410)
(6,306,859)
(6,430,836)
Total Net Assessed Taxable Unsecured Value
93,676,973
91,419,977
92,440,023
79,183,032
79,970,509
Total Net Assessed Taxable Value
S 4.844,285,870
S 4.628,534,6�z3
S 4.249,132,80;
S 3,748,945,687
S 3A02,840,330
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
216
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 1 -Amended
2014 versus 2013
FY
2014
2013
% Change
Secured:(1)
Land
$
1,541,217,133
$
1,498,607,642
2.8%
Improvements
$
3,162,274,409
$
2,993,556,770
5.6%
Personal Property
$
2,716,205
$
2,686,088
1.1%
Penalty
$
0
$
0
0.0%
Less Other Exempt
$
(103,135,553)
$
(93,807,367)
9.9%
Less Home Owner Value
$
(26,742,256)
$
(27,231,015)
-1.8%
Total Net Assessed Taxable Secured Value
$
4,576,329,938
$
4,373,812,118
4.6%
Unsecured:
Land
$
0
$
266,702
0.0%
Improvements
$
32,637,340
$
20,144,944
62.0%
Personal Property
$
53,241,720
$
50,154,674
6.2%
Penalty
$
(8,199,594)
$
(8,269,749)
-0.8%
Less Other Exempt
$
0
$
7,000
-100.0%
Total Net Assessed Taxable Unsecured Value
$
77,679,466
$
62,303,571
24.7%
Total Net Assessed Taxable Value
$
4,654,009,404
$
4,436,115,689
4.9%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
217
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY
2014
2013
2012
2011
2010
Secured:(1)
Land
$ 395,513,442
S 403,779,647
S 404,539,856
S 516,275,626
$ 566.073.734
Improvements
999,188,490
1,012,458,943
1,031,878,423
1,075,692,278
1,268,066,132
Personal Property
1,753,772
2,127,081
580,087
2,702,362
670,711
Penalty (2)
0
0
0
0
0
Less Other Exempt
(4,985,384)
(11,014,472)
(11,276,866)
(10,401,200)
(8,919,361)
Less Home Owner Value
(3,733,800)
(1662,400)
(3,697,400)
(3,750,600)
(3.673.600)
Less B Inv. Value
Total Net Assessed Taxable Secured Value
1,387,736,520
1,403,688,799
1,422,024,100
1,580,518,466
1,822,217,616
Unsecured:
Land
0
7,777
4,719
0
0
Improvements
15,098,894
11,308,677
18,513,172
9,474,802
14.071,375
Personal Property
28,706,626
26,904,564
38.744,588
28,314,673
34.842,003
Penalty
(20,639)
(20,089)
0
0
0
Total Net Assessed Taxable Unsecured Value
43,784.881
38.200.929
57 262,479
37,789,475
48,913,378
Total Net Assessed Taxable Value
$ 1,431,5219401
$ 1,441,889,728
S 1,479,286,579
$ 1,618,307,941
S 1,871,130,994
FY
2009
2008
2007
2006
2005
Secured:(1)
Land
$ 633,335,921
$ 587,058,715
$ 521,340,003
$ 414,088,670
S 377,500,739
Improvements
1.367,855,491
1-276,315,674
1,137,488,315
1,043,768,419
964,730.831
Personal Property
866,004
590,836
6,592,802
6,930.907
8,309,969
Penalty (2)
0
0
0
0
0
Less Other Exempt
(7,964,045)
(9,550,463)
(7,655,384)
(3,292,024)
(3,133.357)
Less Home Owner Value
(3,724,000)
(3,735,200)
(3,752,000)
(3,752,000)
(3,689,000)
Less B Inv. Value
0
0
0
0
0
Total Net Assessed Taxable Secured Value
1,990,369,371
1,850,679,562
1,654,013,736
1,457,743,972
1,343,719,182
Unsecured:
Land
2,542
0
0
0
0
Improvements
18,201,638
5.343,621
6,215,099
4,187,472
3,853,947
Personal Property
29,865,376
20,391,298
19,806.418
12,129,847
13,891,105
Penal
(1
0
0
0
0
Total Net Assessed Taxable Unsecured Value
48,069,556
25.734,919
26.021.517
16,317,319
17,745,052
Total Net Assessed Taxable Value
$ 2,038,4389927
$ 1,876,414,481
$ 1,680,035,253
S 1,474,061,291
$ 1,361,464,234
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
n4o
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 2
2014 versus 2013
FY
2014
2013
% Change
Secured:(1)
Land
$
395,513,442
$
403,779,647
-2.0%
Improvements
$
999,188,490
$
1,012,458,943
-1.3%
Personal Property
$
1,753,772
$
2,127,081
-17.6%
Penalty
$
0
$
0
0.0%
Less Other Exempt
$
(4,985,384)
$
(11,014,472)
-54.7%
Less Home Owner Value
$
(3,733,800)
$
(3,662,400)
1.9%
Less B Inv. Value
$
0
$
0
0.0%
Total Net Assessed Taxable Secured Value
1,387,736,520
1,403,688,799
-1.1%
Unsecured:
Land
$
0
$
7,777
-100.0%
Improvements
$
15,098,894
$
11,308,677
33.5%
Personal Property
$
28,706,626
$
26,904,564
6.7%
Penalty
$
(20,639)
$
(20,089)
2.7%
Total Net Assessed Taxable Unsecured Value
43,784,881
38,200,929
14.6%
Total Net Assessed Taxable Value
$
1,431,521,401
$
1,441,889,728
-0.7%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
219
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 3
Last Ten Fiscal Years
FY
2014
2013
2012
2011
2010
Secured: (1)
Land
$ 121,112,327
S 117,624,411
S 119,303,599
$ 123,088,378
$ 125,790,120
Improvements
376,571,063
367,800,719
379,322,839
392,221,646
424,745.043
Personal Property
3,866,036
3,626,212
3,461,707
3,523,812
5,011,721
Penalty
0
0
0
0
0
Less Other Exempt
(22,949,942)
(22,250,710)
(19,890,920)
(20,749,611)
(20.847,823)
Less Home Owner Value
(2,009,000)
(2,041.200)
(2,170,000)
(2,303,000)
(2,371,600)
Total Net Assessed Taxable Secured Value
476,590,484
464,759,432
480,027,225
495,781,225
532,327,461
Unsecured:
Land
0
0
0
0
0
Improvements
15,830,833
7.241,041
7,844,983
8,768,007
14,220,568
Personal Property
27,963,394
31,467,777
45,527,343
70,315,349
54,874,036
Penalty
0
0
0
0
0
Less Other Exempt
1 (683,569)
(721,058)
(753,726)
(419,433)
(534,431)
Total Net Assessed Taxable Unsecured Value
43,110,648
37,987,760
52,618,600
78,663,923
68,560,173
Total Net Assessed Taxable Value
S 519,701,132
$ 502,7479192
$ 532,645,825
S 574,445,148
S 600,887,634
FY
2009
2008
2007
2006
2005
Secured:(I)
Land
$ 134,147,217
S 119,422,958
S 114.253,170
$ 103,496.559
$ 91,523,675
Improvements
418,977.238
375,240,496
333,347,161
298,197.384
243,139,587
Personal Property
3,30&41 4
3,629,771
3,893,071
3,890,560
3,152,374
Penalty
0
0
0
0
0
Less Other Exempt
(20,782,445)
(19,251,214)
(19,311,510)
(20,251,190)
(19,430,222)
Less Home Owner Value
(2,331,000)
(2,203,600)
(2.206,400)
(2,046,800)
(1,974,000)
Total Net Assessed Taxable Secured Value
533,319,464
476,938,411
429,975,492
383,286,513
316,411,414
Unsecured:
Land
0
0
0
370
2,138
Improvements
18,796,505
17.795,034
13,109,332
12,424.085
9.635,015
Personal Property
45,622,109
45,542,975
44,899,884
38,091,911
35,730,772
Penalty
0
0
0
0
0
Less Other Exempt
(549,632)
(402,531)
(437,726)
(434,582)
(455,101)
Total Net Assessed Taxable Unsecured Value
63,868,982
62.935,478
57,571,490
50,081,784
44,912,824
Total Net Assessed Taxable Value
5 597.198.446
S 539,773,989
S 48".546.982
S 433,368,297
S 361.324.238
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
220
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 3
2014 versus 2013
FY
2014
2013
% Change
Secured:(1)
Land
$
121,112,327
$
117,624,411
3.0%
Improvements
$
376,571,063
$
367,800,719
2.4%
Personal Property
$
3,866,036
$
3,626,212
6.6%
Penalty
$
0
$
0
0.0%
Less Other Exempt
$
(22,949,942)
$
(22,250,710)
3.1%
Less Home Owner Value
$
(2,009,000)
$
(2,041,200)
-1.6%
Total Net Assessed Taxable Secured Value
476,590,484
464,759,432
2.5%
Unsecured:
Land
$
0
$
0
0.0%
Improvements
$
15,830,833
$
7,241,041
118.6%
Personal Property
$
27,963,384
$
31,467,777
-11.1%
Penalty
$
0
$
0
0.0%
Less Other Exempt
$
(683,569)
$
(721,058)
-5.2%
Total Net Assessed Taxable Unsecured Value
43,110,648
37,987,760
13.5%
Total Net Assessed Taxable Value
$
519,701,132
$
502,747,192
3.4%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
221
City of Palm Desert
Historical Net Assessed Ta xable Values
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY
2014
2013
2012
2011
2010
Secured:(1)
Land
S 527,295,299
5 505,988,799
S 506,713,567
S 535,851,149
$ 571,851,472
Improvements
1,223,955,322
1.179,416,036
1,199,159,939
1,239,148,331
1,299,807,730
Personal Property
3,546,358
3,507,587
3,132,280
3,145,190
3,272,357
Penal 2
0
0
0
0
0
Less Other Exempt
(3,893,679)
(3,542,0%)
(3,098,791)
(3,156,884)
(3,073,279)
Less Home Owner Value
(13,491,800)
(13,911,800)
(14,345,800)
(14,840,000)
(14,991,200)
Less B Inv. Value
Total Net Assessed Taxable Secured Value
1,737,411,500
1,671,458,526
1,691,561,195
1,760,147,786
1,856,867,080
Unsecured:
Land
0
26,524
34,446
0
0
Improvements
1,037,216
803,594
948,280
971,923
1,383,594
Personal Property
4.670,967
2,594,779
2,347,964
3,219,710
6,284,727
Penal (2)
0
0
0
0
0
Total Net Assessed Taxable Unsecured Value
5,708.183
3.424.897
3,330,690
4,19L633
Z668.321
Total Net Assessed Taxable Value
S 1,743,119,693
S 1,674,883.423
S 1,694,891,885
$ 1,764,339,419
S 1,864,535,401
FY
2009
2008
2007
2006
2005
Secured:(1)
Land
5 612,342,380
S 589,549,492
S 538,079,392
S 480,264,736
$ 423,136,913
Improvements
1,338,202,248
1,340,102,309
1,253,230,590
1,145,343,698
1,060,291,261
Personal Property
3,221,691
4,306,781
895,558
1,037,306
1,039,548
Penal (2)
0
0
0
0
0
Less Other Exempt
(3,034,308)
(3,046,149)
(2,814,993)
(2,988,924)
(2,213,136)
Less Home Owner Value
(15,250,200)
(15,577,800)
(15,797,600)
(15,874,600)
(16,083,200)
Less B Inv. Value
Total Net Assessed Taxable Secured Value
1,935,481,811
1,915334,633
1,773,592,947
1,607,782,216
1,466,171,386
Unsecured:
Land
0
0
0
0
0
Improvements
1,404,311
1,372,786
1,581,231
1,606,970
2,043,627
Personal Property
6,296,641
6,712,170
7,973,923
10,276,814
4,639,732
Penalty (2)
0
0
0
0
0
Total Net Assessed Taxable Unsecured Value
7,700,952
8,084,956
9,555,154
11,883,784
6,683,359
Total Net Assessed Taxable Value
S 1,943,182,763
S 1.923,419,589
S 1,783,148.101
1.619.666,000
S 1.471.854.745
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
222
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 4
2014 versus 2013
FY
2014
2013
% Change
Secured:(1)
Land
$
527,295,299
$
505,988,799
4.2%
Improvements
$
1,223,955,322
$
1,179,416,036
3.8%
Personal Property
$
3,546,358
$
3,507,587
1.1%
Penalty
$
0
$
0
0.0%
Less Other Exempt
$
(3,893,679)
$
(3,542,096)
9.9%
Less Home Owner Value
$
(13,491,800)
$
(13,911,800)
-3.0%
Less B Inv. Value
$
0
$
0
0.0%
Total Net Assessed Taxable Secured Value
1,737,411,500
1,671,458,526
3.9%
Unsecured:
Land
$
0
$
26,524
-100.0%
Improvements
$
1,037,216
$
803,594
29.1%
Personal Property
$
4,670,967
$
2,594,779
80.0%
Penalty
$
0
$
0
0.0%
Total Net Assessed Taxable Unsecured Value
5,708,183
3,424,897
66.7%
Total Net Assessed Taxable Value
$
1,743,119,683
$
1,674,883,423
4.1%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
223
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