Loading...
HomeMy WebLinkAbout2023-03-09 Agenda PacketCITY OF PALM DESERT PALM DESERT CITY COUNCIL (CC), SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (SA), AND HOUSING AUTHORITY (HA) MEETING (HYBRID MEETING) 73-510 FRED WARING DRIVE PALM DESERT, CA 92260 REGULAR MEETING AGENDA Thursday, March 9, 2023 3:30 p.m. Closed Session 4:00 p.m. Regular Session Pursuant to Assembly Bill 361, this meeting may be conducted by teleconference. There will be in- person access to the meeting location. WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website www.cityofpalmdesert.org, under the “Council Agenda” link at the top of the homepage, or on the City’s YouTube Channel. OPTIONS FOR PARTICIPATING IN THIS MEETING: Attend the meeting in our Council Chamber at the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, CA 92260. To participate by email, internet, or phone, please see the detailed instructions on the last page of this agenda. AGENDA Thursday, March 9, 2023 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 2 of 7 3:30 P.M. CLOSED SESSION CALL TO ORDER PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY: This time has been set aside for members of the public to address the City Council on items contained only on the Closed Session Agenda within the three-minute time limit. Speakers may attend in person or utilize one of the three options listed on the last page of this agenda. RECESS TO CLOSED SESSION CLOSED SESSION AGENDA A.Closed Session Meeting Minutes: February 16, 2023 B.Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1.Property Description: 73-710 Fred Waring Drive Agency: City of Palm Desert City Negotiator: Todd Hileman/Chris Escobedo/Eric Ceja Negotiating Parties: Coachella Valley Association of Governments Under Negotiation: Price and Terms C.Conference with Legal Counsel regarding Significant Exposure to Litigation pursuant to Government Code Section 54956.9(d)(2): Two (2) matters that, under the existing circumstances, the City Attorney believes create significant exposure to litigation. 4:00 P.M. REGULAR MEETING ROLL CALL PLEDGE OF ALLEGIANCE: Mayor Pro Tem Quintanilla INSPIRATION: Councilmember Harnik REPORT OF CLOSED SESSION: City Attorney Hargreaves AWARDS, PRESENTATIONS, AND APPOINTMENTS A.COLLEGE OF THE DESERT FREE ONLINE LANDSCAPING CERTIFICATION TRAINING AGENDA Thursday, March 9, 2023 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 3 of 7 CITY MANAGER COMMENTS A.PUBLIC WORKS MAINTENANCE UPDATE B.PALM DESERT 50TH ANNIVERSARY UPDATE C.LICENSE PLATE READER UPDATE D.MCCALLUM THEATRE MURAL UPDATE MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION NONAGENDA PUBLIC COMMENTS: This time has been set aside for the public to address the City Council on issues that are not on the agenda for up to three minutes. Speakers may attend in person or utilize one of the three options listed on the last page of the agenda. Because the Brown Act does not allow the City Council to act on items not listed on the agenda, members may briefly respond or refer the matter to staff for a report and recommendation at a future meeting. 1.CONSENT CALENDAR: All matters listed on the Consent Calendar are considered routine and may be approved by one motion. The public may comment on any items on the Consent Agenda within the three-minute time limit. Individual items may be removed by the City Council for a separate discussion. A.APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES RECOMMENDATION: Approve the Minutes of February 16, 2023. B.APPROVAL OF WARRANTS RECOMMENDATION: Approve warrants issued during the period of October 10, 2022, through February 23, 2023. C.APPOINT THREE DIRECTORS TO THE EL PASEO PARKING AND BUSINESS IMPROVEMENT DISTRICT BOARD RECOMMENDATION: Appoint Rebecca Elliot, Michelle Whittaker, and Alec Longmuir to the Board of Directors of the El Paseo Parking and Business Improvement District, each for three-year terms expiring June 30, 2026. D.SECOND READING AND ADOPTION OF ORDINANCE NO. 1390 AMENDING THE PALM DESERT MUNICIPAL CODE TO UPDATE, CLARIFY, AND CODIFY BYLAWS AND GENERAL PROVISIONS FOR THE CITY’S BOARDS, COMMISSIONS, COMMITTEES, AND TASK FORCES RECOMMENDATION: Waive the second reading of the ordinance text in its entirety and read by title only; and adopt Ordinance No. 1390. AGENDA Thursday, March 9, 2023 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 4 of 7 E.SECOND READING AND ADOPTION OF ORDINANCE NO. 1391 REVISING CHAPTER 2.68 OF THE PALM DESERT MUNICIPAL CODE RELATIVE TO THE CULTURAL ARTS COMMITTEE RECOMMENDATION: Waive the second reading of the ordinance text in its entirety and read by title only; and adopt Ordinance No. 1391. F.APPROVE ACCEPTANCE OF THE DONATION OF ASSESSOR PARCEL NUMBERS 628-030-009 (5.18 ACRES) AND 628-030-011 (4 ACRES) FROM DON SLAUGHTER TO THE CITY OF PALM DESERT RECOMMENDATION: 1.Approve acceptance of the donation of Assessor Parcel Numbers (APN) 628-030-009 (5.18 acres) and 628-030-011 (4 acres) to the City of Palm Desert from Don Slaughter. 2.Authorize the City Manager to sign the Donation Letter, subject to the satisfaction of the City Attorney. G.ADOPT A RESOLUTION DECLARING CITY OF PALM DESERT OWNED PROPERTIES WITH ASSESSOR’S PARCEL NUMBERS 627-102-017 AND 627-102- 025 SURPLUS LAND AND AUTHORIZING STAFF TO RELEASE A NOTICE OF AVAILABILITY FOR THE SALE OF THE PROPERTIES RECOMMENDATION: 1.Adopt a Resolution declaring City of Palm Desert properties with Assessor’s Parcel Numbers 627-102-017 and 627-102-025 surplus land for purposes of the Surplus Land Act. 2.Authorize staff to release a Notice of Availability for the sale of the properties. H.ADOPT A RESOLUTION ESTABLISHING THE 2023 CITY COUNCIL GOALS RECOMMENDATION: 1.Adopt a Resolution establishing the City Council Goals for the 2023 calendar year. 2.Appoint an Ad Hoc Council Subcommittee to work with staff regarding development of and opportunities to enhance City-sponsored events; and marketing of existing and new City-sponsored event. I.RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2022 RECOMMENDATION: Receive and file the Audited Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. AGENDA Thursday, March 9, 2023 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 5 of 7 J.RECEIVE AND FILE THE INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED- UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2022 RECOMMENDATION: Receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2022. K.ACCEPT PUBLIC IMPROVEMENTS, RELEASE THE FAITHFUL PERFORMANCE, THE LABOR AND MATERIALS, THE GRADING BONDS, AND ACCEPT A MAINTENANCE BOND FOR EXTRA SPACE STORAGE RECOMMENDATION: 1.Accept public improvements. 2.Release the Faithful Performance Bond in the amount of $8,263.50 and the Labor and Materials Bond in the amount of $16,527.00. 3.Release the Grading Bond in the amount of $6,821.55. 4.Accept the Maintenance Bond in the amount of $1,652.70. L.RESOLUTION OF OPPOSITION TO INITIATIVE NO. 21-0042A1, A NOVEMBER 2024 BALLOT MEASURE THAT JEOPARDIZES CITIES’ ABILITY TO PROVIDE ESSENTIAL SERVICES AND INFRASTRUCTURE RECOMMENDATION: Adopt a Resolution of opposition to Initiative No. 21-0042A1, a November 2024 statewide ballot measure that jeopardizes cities’ ability to provide essential services and infrastructure. M.LETTER OF SUPPORT FOR THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS’ COMMUNITY FUNDING REQUEST FOR THE SOCAL COMPREHENSIVE GOODS MOVEMENT PLAN AND IMPLEMENTATION STRATEGY UPDATE RECOMMENDATION: Authorize the Mayor to sign a letter of support for the Southern California Association of Governments’ (SCAG) Community Funding request for the SoCal Comprehensive Goods Movement Plan and Implementation Strategy update. N.AUTHORIZE THE CITY MANAGER TO ENTER INTO A THREE-YEAR AGREEMENT WITH ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. (ESRI) FOR AN ENTERPRISE AGREEMENT (EA) SOFTWARE LICENSE IN THE AMOUNT OF $178,800 RECOMMENDATION: Authorize the City Manager to enter into a three-year agreement with Environmental Systems Research Institute, Inc. (ESRI) for an Enterprise Agreement (EA) Software License, in the amount of $178,800 plus taxes, to provide unlimited software licenses, maintenance, support, training, and technical assistance for GIS (Geographic Information Systems) initiatives. AGENDA Thursday, March 9, 2023 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 6 of 7 O.REQUEST FOR OUT-OF-STATE TRAVEL FOR MAYOR PRO TEM QUINTANILLA TO ATTEND THE 40TH ANNUAL NALEO CONFERENCE JULY 11-13, 2023, IN NEW YORK, NEW YORK RECOMMENDATION: Authorize out-of-state travel for Mayor Pro Tem Quintanilla to attend the 40th annual National Association of Latino Elected and Appointed Officials (NALEO) Conference to be held on July 11-13, 2023, in New York, New York. P.APPROVE AMENDMENT NO. 2 TO THE CITY MANAGER’S EMPLOYMENT AGREEMENT EFFECTIVE MARCH 1, 2023 RECOMMENDATION: Approve Amendment No. 2 to the City Manager’s Employment Agreement with L. Todd Hileman effective March 1, 2023. CONSENT ITEMS HELD OVER: Items removed from the Consent Calendar for separate discussion are considered at this time. 2.ACTION CALENDAR: A.REQUEST FOR DIRECTION ON APPOINTMENT OF A POET LAUREATE RECOMMENDATION: Provide staff with direction on appointment of a Poet Laureate. 3.PUBLIC HEARINGS: The public may comment on individual Public Hearing Items within the three-minute time limit. The applicant or appellant will be provided up to five minutes to make their presentation. Speakers may utilize one of the three options listed on the last page of this agenda. None. 4.INFORMATION ITEMS None. ADJOURNMENT AGENDA Thursday, March 9, 2023 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Page 7 of 7 THREE OPTIONS FOR PARTICIPATING IN THE MEETING If unable to attend the meeting in person, you may choose from the following options: OPTION 1: VIA E-MAIL Send your comments by email to: CouncilMeetingComments@cityofpalmdesert.org. E-mails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the record and distributed to the City Council. This method is encouraged as it gives Councilmembers the opportunity to reflect upon your input. Emails will not be read aloud at the meeting. OPTION 2: LIVE VIA ZOOM 1.Access via www.cityofpalmdesert.org/zoom and click “Launch Meeting,” or 2.Access www.zoom.us, click “Join Meeting” and enter Webinar ID 833 6744 9572. OPTION 3: LIVE VIA TELEPHONE 1.Dial any of the following: (669) 900-9128 or (213) 338-8477 or (669) 219-2599. 2.Enter the Meeting ID: 833 6744 9572 followed by #. 3.Indicate that you are a participant by pressing # to continue. 4.During the meeting, press *9 to add yourself to the queue and wait for the Mayor or City Clerk to announce your name/phone number. Press *6 to unmute your line and limit your comments to three minutes. ___________________________________________________________________________ PUBLIC NOTICES Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the designated office for inspection of records in connection with this meeting is the Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies are available for public inspection at City Hall and on the City’s website at www.cityofpalmdesert.org by clicking “Council Agenda” at the top of the page. Americans with Disabilities Act: It is the intention of the City of Palm Desert to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the city will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 323-8204, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible. ___________________________________________________________________________ AFFIDAVIT OF POSTING I, Níamh M. Ortega, Assistant City Clerk of the City of Palm Desert, do hereby certify, under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert City Council, Successor Agency for the Palm Desert Redevelopment Agency, and Housing Authority, was posted on the City Hall bulletin board and City website www.palmdesert.org no less than 72 hours prior to the meeting. /S/ Níamh M. Ortega Assistant City Clerk r sOLLEGE -•-,le D SE Presentations Item A-1 Cl[1 c:01 .T .F.( F.t:.!J ,!.f D F. SF.RT MIISSI 10 IN •Provide Worlkfo1rc1e Training f1o rL,andls1ca pe rs in th 1e Co1ac:he lla VaUey •Redluce 1d us t em1s;sio 1ns to im1p1rovea1'ir quaUty Overseed ng C,erti'fi ca ti on T ra n in g Presentations Item A-2 c:01 .l ,F.( E [l],!.'t DFSERT Presentations Item A-3 LA DSCAP NG CERTIFICATION TRAI1NING c:01 .l ,F.( E [l] ,!.'t DFSERT Presentations Item A-4 Cl[1 c:01 .T .F.( F. t:.!J ,!.f D F. SF.RT This is to certify that V,eronica lzurie1a Colll!ege of the !Desert Successfully oom pl,eted the CVAG Overseeding Certification course Awa r,d ed on. 11/28./20117 Presentations Item A-5 I The Landscap ng Certif ca ion Tra·ning is for landscaper rcense applicants tha are applying for a new business license or for applicants renewing the·r license The train·ng certification is good for one year. (:()I .l .F.( F [.[J,;.tOFSERT Presentations Item A-6 PROGiRAM IHl:ST'ORY Cl[1 c:01 .T .F.( F. t:.!J ,!.f D F. SF.RT Trainirng was dev·ellop,ed and l,aunched in responise t 10 the Clean Air Plan an,d th,e n1,eed to me,et state air quaUty stan1,dards. Presentations Item A-7 c:01 .l ,F.( E [l],!.'t DFSERT CVAG's Energy and Environmental Resources Committee Members include an elected official from, each city in the Coachella Valley Mission: to do more for air quality Development of model ordinance recommended to address needs for landscape-related businesses to learn about its Reseeding Alternative Approved by CVAG Executive Committee July 2007 Distributed to all desert cities Adopted by 8 of 9 cities Presentations Item A-8 I I LANDSCAP NG CERTIFICATION TRAINING [l[l C:()1.1.F.( FW,;.tDFSERT Presentations Item A-9 Intro con place I creasing s ppl We ltve ce1v s 3.66 .., o ff·ctiv r in· ar, but req Jire aboc1. 72" pe pp 1rn-atlon ,, atir c ·ve t rf gr ss. water a d is • d ram and co vert I or art of vo lov ,a.er-se plants. ·n irri jn Valle c:c)I .1 .F.c r W,!.'tDFSERT to main• i pe he, te e Y in ·he Co ch II :Tbe 0 GOAL_ o.f tJJ{s· ,a sjs :( > ::te ch yoq ·to ·measu_re.-a1nd :lm1prove ii1rrigati_on . ·:effici en'cy·:racfors, el rm in ate: .u1hhecessary·:1osses:a'nd theh- ::schedulle ·y·our·,controllef to··redu,ce' 'Water:u_se, .but-maintain.1p1a·nt '.hea lt_h . -. -I .aind.:growth.: Presentations Item A-10 ILANDSCAP:IN 1G CERTIFICATION 'TRAINI ·-·• G C'',·· ' ' ' ' ' ' ·.' ' '. ·. -.· Certirliica1 ion Traii ining Cl[1 c:01 .T .F.( F. t:.!J ,!.f D F. SF.RT FREE Landscapers take the training· at no, cost FAST .Ta:kes .approximately 30 to 60 .minutes to complete ea,ch' session BILINIGUAL Is orfered in b,oth English' ,an,d .Spa,nlsh' 1CONVENIENT Can, be accessed· fro:m ,any computer/ home/. office" lap,top" libran½ or PaCE ater CO'mservarHon Oem1 ic tio 1 Tran1iing Presentations Item A-11 c:01 .l ,F.( E [l],!.'t DFSERT Pac Compu er lab and login ass:istance available through Partnership and Comm n·ty Education (PaCE), located in the Palm Dese Mlall 7 7 .7 .7 Presentations Item A-12 c:01 .l ,F.( E [l],!.'t DFSERT Together We Can Make a Difference! Suppo,rt the traini,ng pro,gram and work with, CVAG and College of the Desert Pa,CE to □Sh:are information with , andscaper apprcants □Stress the i'mportance of the ra1ining □Refer indiv·duals to PaCE if they need assistance Presentations Item A-13 c:01 .l ,F.( E [l],!.'t DFSERT For your contribution to cf e,an air and water conversat,On! Presentations Item A-14 TO: Mayor Kelly and City Council Members FROM: Lieutenant Willison, Riverside County Sheriff’s Department DATE: March 1st, 2023 SUBJECT: City of Palm Desert ALPR Overview & Notable Incident Summary __________________________________________________________________________ The data that is gathered is encrypted and retained for a fixed period. It is only accessible by law enforcement officials with a legitimate law enforcement purpose. The stored license plate data could, for example, provide investigators with a means to help identify vehicles associated with suspects, witnesses, or victims of criminal activities. In short, this technology is utilized for more than merely identifying stolen vehicles. The cameras since installation in 2022 have proven to be an incredibly valuable force multiplier for the Riverside County Sheriff’s Department. These cameras have successfully aided in the identification and apprehension of countless suspects responsible for property and violent crime committed in Palm Desert, as well as being utilized in aiding in homicide and armed robbery investigations. ALPR in Palm Desert have aided the personnel within the Riverside County Sheriff’s Department increase case clearance, solve more crimes, and assist in creating a safer community for our residents. Some of the significant incidents in which this technology has aided our first responders is summarized below. It is also worth mentioning that many of these suspects are not Palm Desert residents and our Sheriff’s team has the ability to coordinate with allied agencies and apprehend those responsible for crimes within our area of responsibility. Notable investigations ALPR technology has assisted in: 1.Within the first three hours of the first camera being operational in the city, the system alerted to a stolen vehicle. Within minutes, personnel were able to successfully stop the vehicle and apprehend three suspects located in the stolen vehicle. All three were arrested and booked into jail for their involvement in the theft of a vehicle within the city. 2.BSU – Burglary Suppression Unit members began conducting a follow-up investigation into a residential “CAT” burglary (burglary in which the homeowner was present at the time of the crime) that occurred within the City of Palm Desert. The suspect stole numerous pieces of jewelry and the victim’s credit cards. Investigative leads revealed that an additional twelve burglaries, committed by the same suspects, occurred within the cities of Palm Desert and Rancho Mirage. ALPR inquiries were conducted and BSU members were able to identify the suspect vehicle. This allowed the case agents to further investigate these incidents which led to the suspect being apprehended and arrested for 14 counts of residential “CAT” burglaries. 3.Members from Palm Desert BDT – Business District Team assumed an investigation into several commercial burglaries within the city of Palm Desert. Utilizing ALPR technology, the suspect vehicle was identified and later located within the city of San Jacinto. The suspect was apprehended and arrested for 7 counts of commercial burglary, identity theft, and vehicle theft. CM C-1 4.BSU – Burglary Suppression Unit members began conducting a follow-up investigation into a vehicle that was burglarized near a hiking trail in Palm Desert. The suspect in this incident used the victim’s credit cards at various places in Palm Desert and neighboring cities. BSU members were able to locate the suspect vehicle by utilizing the ALPR system while only having a vehicle make and model. BSU members located the suspect vehicle responsible for this particular vehicle burglary, as well as disseminated information to allied agencies who were able to solve an additional 14 vehicle burglaries throughout the Coachella Valley with this information being relayed to their respective agency. 5.Members from the Palm Desert Sheriff’s Station responded to a burglary at a business on Highway 111 in Palm Desert. Utilizing the ALPR technology, personnel identified the suspect vehicle used in the commission of the crime. Further investigative means were implemented, and four suspects were identified and brought to justice for their crimes. In total, 11 burglaries were solved and thousands of dollars in property was recovered and returned to their rightful owner. 6.Personnel from the Palm Desert Sheriff’s Station followed up on a domestic assault, false imprisonment, assault with a deadly weapon, criminal threats and felony evading incident. The ALPR system was utilized and provided information on the suspect vehicle used in this incident. The suspect vehicle was located, a vehicle pursuit ensued, and the suspect pointed a handgun at deputies that were attempting to stop the vehicle. The vehicle came to rest, stopping traffic on the interstate in both directions for several hours. As deputies approached the suspect vehicle, the suspect shot himself and life-saving measures were immediately rendered. The suspect was transported to an area hospital for his injuries and charges have been filed against the suspect in this incident. 7.Personnel from the Palm Desert Sheriff’s Station responded to a commercial burglary on El Paseo. Four suspects entered the location during business hours, disrupted normal business operations, and exited the business with tens of thousands of dollars in electronics equipment. The only investigative lead was that the vehicle used in the commission of the crime was a gray Honda Accord. This information was broadcast and deputies who were able to access the ALPR system in real time, locate the vehicle on the system, and determine that the suspect vehicle had changed license plates in an effort to evade law enforcement immediately following this crime. The vehicle was located on the I-10 minutes after the incident, a pursuit ensued, and the suspects foot-bailed in the city of Banning. The suspect vehicle was towed as evidence, and more than half of the stolen merchandise was returned to their owner. Following an extensive joint investigation with our state and federal partners, several arrests were made, and charges are being filed against all the suspects responsible for this crime. This was a highly sophisticated retail crime ring that disrupted numerous high-end stores throughout the United States. 8.Personnel from the Palm Desert Sheriff’s Station responded to a commercial burglary on El Paseo in which four suspects entered an adjoining business and made entry via the store’s drywall. Several pieces of electronic merchandise were removed, and Palm Desert dedicated specialty team members assumed the investigation. ALPR technology was utilized to identify the suspect vehicle which was able to be tracked back to a rental vehicle out of Los Angeles County. The information used to rent the vehicle was determined to be fraudulent, and personnel are currently authoring and serving several search warrants in an effort to bring the suspects to justice. 9.Personnel from the Palm Desert Sheriff’s Station responded to several strong-arm robberies in which the suspects would ask to see the victim’s wedding ring. While showing the suspects the jewelry, one suspect would grab the victim’s hand while the other would forcibly remove the jewelry and flee the area. A search of the ALPR system provided personnel with investigative leads, ultimately leading to the suspect vehicle being identified. Each suspect vehicle involved in this CM C-2 crime series proved to be a rental vehicle in which information provided to the rental company was fictitious. This investigation is ongoing, and personnel are working with several other agencies that have similar incidents involving the same modus operandi (MO). 10.Personnel from the Palm Desert Sheriff’s Station investigated in excess of sixty catalytic converter thefts from Palm Desert. Based on numerous victims’ reporting a possible muscle car with a loud exhaust, ALPR provided a potential suspect vehicle. After an extensive investigation, the vehicle was identified, and two suspects (both minors) were arrested following a high-speed pursuit spanning over several counties. A replica AR-15 was collected as evidence which was used to injury a female victim who attempted to thwart the catalytic converter from being removed from her vehicle. These two suspects were tied to numerous thefts in our jurisdiction and arrested for numerous criminal violations of law. These arrests were also instrumental in solving an assault with a deadly weapon in another city in the Coachella Valley. 11.Personnel from the Palm Desert Sheriff’s Station investigated an armed robbery of a jewelry store on Highway 111 in which the business owner was struck in the head with a deadly weapon. Four suspects were witnessed leaving the location and getting into a dark colored sedan. A query of the area with our ALPR revealed the possible suspect vehicle. Spanning a several month-long investigation and numerous search warrants later, four suspects were positively identified, and arrests were made by staff in Los Angeles County. All the suspects were charged with numerous criminal violations of law. 12.Personnel from the Palm Desert Sheriff’s Station responded to The Shops in Palm Desert reference what was later determined to be a gang-related shooting during business hours in which several dozen casings were located at the scene and business windows were shattered. Witnesses reported seeing a dark colored van leaving the area. Personnel immediately conducted a search of the ALPR system and had one of the involved vehicles stopped in a neighboring city within an hour of the shooting. Two arrests have been made in connection with this shooting, numerous search warrants have been served, and additional arrests are anticipated as the investigation progresses. These are just some of the instances in which the license plate readers in the city have proven to be incredibly effective at aiding Sheriff’s personnel in their investigations. For merely every incident involving a crime (and those that create a public safety exigency where time is of the essence such as a disabled elderly person that has ventured away from their loved ones) that was committed, and a vehicle was associated with that incident, these cameras have been invaluable to solving crime in Palm Desert that otherwise would not have been solved without this technology. CM C-3 CM C-4 * RIVERSIDE COUNTY SHERIFF'S DEPARTMENT CM C-5 W ·at is ALPR •Captures S illl llmage.s •Da1t,e, 1 ime & Locat on •Co,nverts Licens,e Plat s to Alph· .·numeric Cha1r.·c ers •Vehicle Fingerprint •Does Not Link to OMV •Does Not Use Facial R1ec o g nit ion ■Do s Not R1 cord Vide,o/Audio •Does Not PTZ (Pan, T lt, z,oom)i ■Does Not E nfo,rce Traiffi,c Violl ati on s •Downloads DOJ Ho, lists. (Plat,es & Wants O1 nly )i ■User.s Can Or .ate Ow11 Hot lists ♦RIVERSIDE COUNTY SHERIFF'S DEPARTMENT CM C-6 Notable lnc·dents Wilthi·n the. first thre ho rs of the firs ca1mera being: operationa_ll in the city, the ys:tem1 alerted to a stolen vehicle� W1th1n m1nut 1es ., p1e rs.o n ne l were able to successfully stop1 the v1eh1iel1e and ijp1 pre he nd tlhre 1e sus.p 1ect s ocated in the sto 1 len vehicle .Alli three, ·were .arrest 1ed .and booke,d into jail for th 1e i r invo�v,em,ent in the theft of a ve,hicle ·with�n the city .. The .ALPR system in Palm Desert has aided the personnel within the Riverside County Sheriff's D1e pa1rt me nt incr 1e,ase case, c�earance, solve, m1ore, cnmies, and assist in creating a safer community for our residlents. N ota bll e ilncidlents/success storie,s include: •R,eco1ve ry of Seve1rall Stol,e n v·e h ic les •Apprehension iaf "CAT'' Burglar •Apprehensi 1on 1of Several Comm 1ercial Burglars $ RIVERSIDE COUNTY SHERIFF'S DEPARTMENT CM C-7 Notable Investigations •B5U -Burglary Suppression Unit members began conducting o follow-up investigation into ,a residential ·"'"CA r :, burglary (b,urglory in which the homeowner was present at the time, of the· crime) that occurred within the City of Palm Desert The suspect stole num,erous pieces of Jewelry and the victim 7S cre·dlt cards lnvestigati1ve leads revea/e,d that an additional twelve burglaries,, co.mmittedby the s,ame suspects1 occurred within the cities of P,a/m Desert and Rancho Mirage:. All PR inquiries were conducted ,and ssu· members were able' to identify the .suspect vehicle This ,a/lo·wed the cose agents to further in1vestlgote these incidents which led· to the susp'€'Ct being apprehended and arrested for 14 counts of residential ""'CAT'" burglaries. r♦x RIVERSIDE COUNTY SHERIFF'S !DEPARTMENT CM C-8 Notable Investigations •Personnel from the' Palm' Desert Sheriff Station resp,ond€d to a commercial burglary on El Aas,eo in which/our susp,ects entered on ot:ljoining business and mode entry via the store/s drywall. 5everol pieces of electronic m,erchandise were remo1ve,d ondPolm Desert dedicote,d· specialty team members assumed the investigation. AlPR technology· was utilized to identify the suspect vehicle which was abte to be tracked bock to o rental vehicle out of los Angeles County The information used to rent the vehicle was determined to b'e fraudulent., and personnel are· currently authoring and serving several search 1worrants in on effort to bring the suspects to fustice r♦x RIVERSIDE COUNTY SHERIFF'S !DEPARTMENT CM C-9 Notable Investigations •Personnel from the· Palm Des.ert Sheriff"$ Station responde,d to several strong-arm robberies in which the susp.ects would ask to see the victim s wedding, ring. While showing the suspects the jeM1elrJ1;, one suspect would grab the 1victim "s hand while the other woutd forcibly remove· the jewelry and flee the· area A s.earch of the AlPR system provid'€d p,ersonn,e/ with investigative leads;' ultimately leading to the· s.usp.ect vehicle b1elng identified. Each suspect vehicle involved in this crime series pr.oved to be a rental vehicle in which information provided to the r.ental comp,any· was fictitiousr .This investigation is ongoing and personnel or:e working with s.ever.al other agencies that have similar incidents involiving the same modus operandi (MO). r♦x RIVERSIDE COUNTY SHERIFF'S !DEPARTMENT CM C-10 Notable Investigations •Perso.nn.elfro m the Palm Desert Sheriff Station investigated.an armed robbery of a Jewelry store on Highway .111 in which the business owner was struck in the .head with a d'€adly Mteapon. Four suspects were witnessed /e.aving the location .and getting into a dark colore,d se,dan. A qu.ery of the area with our Al PR reveo/e,d the possible suspect vehicle. Spanning ,a several month-long investigation and numerous s.eorch warrants late,; four suspects were· positively identified, and arrests were m'ade by staff in Los Ange!e'S' County. All of the suspects Mtere chorge,d with numer.ous criminal 1violations of tow; r♦x RIVERSIDE COUNTY SHERIFF'S !DEPARTMENT CM C-11 Notable Investigations •Personnel from the Palm Desert Sheriff Station responded to The Shops in Palm Desert reference· whot was later determined to b'e a gong-relote·d shooting· during business hours in which se1veral dozen casings were locate.d .at the scene and b'usiness windows were· shattered Witnesses reporte·d seeing· a dark colore,d von leaving the area. Personnel imm·ediately conducted .a se.arch of the AlPR system and had one· of the involved 1vehlcles stopped in a neighboring city within an hour of the shooting. Two arrests ha1ve been made in connection with this shooting, numerous sear.ch warrants have· b·een serveft and additional arrests ore· anticipated as the in vestigotio.n progresses,, r♦x RIVERSIDE COUNITY -SHERIFF'S DEPARTMENT CM C-12 In Closing •These ore just som.e of the instances in which the· license plate rea,ders in the ,citiy have· proVren to be incr.edibly effe,ctive .at aiding Sheriff personnel in their investigations For merely every incident invo!tving a .crime (and those-that create .a public s.afetiy exigency where time is of the essence such as a disabled eld-erly person that has ventur.ed away from their love,d ones) that was committed,, .and o vehicle was associated 1With that incident., these com·eras have been invaluable to solving crime· in .Palm Desert that othe.rwis,e woutd not .hove· been solve·d without this technology .. r♦r RIVERSIDE COUNTY SHERIFF'S !DEPARTMENT CM C-13 Current & Future Cost Dashboard •The Sheriff's Department ond 1City Staff or:e currently evo/u,ating the placement of 53 o,dditional cameras ond· exp,loring other avoiloble technology Partnered Agencies 2K+ Accuracy (99%) Plate Reads: Over 96,000,000 (Jan-Feb 2023) I Each Year Thereafter: $132,500 r♦x RIVERSIDE COUNTY SHERIFF'S !DEPARTMENT CM C-14 Thursday, February 16, 2023 Minutes of the Regular Meeting of the Palm Desert City Council (CC), Successor Agency to the Palm Desert Redevelopment Agency (SARDA), and Housing Authority (HA) Pursuant to Assembly Bill 361, this meeting was conducted by teleconference and there was in-person public access to the meeting location. CALL TO ORDER: A Regular Meeting of the Palm Desert City Council was called to order by Mayor Kelly on Thursday, February 16, 2023, at 3:30 p.m. in the Council Chamber, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. ROLL CALL: Present: Councilmembers Jan Harnik, Gina Nestande, Karina Quintanilla, and Evan Trubee; and Mayor Kathleen Kelly. Absent: None. PLEDGE OF ALLEGIANCE: Councilmember Harnik led the Pledge of Allegiance. INSPIRATION/INVOCATION: Mayor Kelly offered words of inspiration. REPORT OF CLOSED SESSION: City Attorney Hargreaves stated that direction was given by the City Council; no reportable actions were taken. PRESENTATIONS: A.PROCLAMATION – MALCOLM DAVID MACFARLANE DAY Mayor Kelly congratulated Mr. MacFarlane on his many years of service with the Citizens on Patrol (COPs) program; expressed the City Council’s gratitude for his strong sense of volunteerism and civic pride; and presented him with a proclamation in his honor. Item 1A-1 CC, SARDA, & HA Meeting Minutes February 16, 2023 City of Palm Desert Page 2 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES CITY MANAGER'S COMMENTS: A.PALM DESERT UNIVERSITY UPDATE Human Resources Manager Staehle and Human Resources Analyst Molina provided an update regarding the City’s professional development program and recognized participating staff in attendance. B.PALM DESERT AQUATIC CENTER HOURS AND OPERATIONS UPDATE Paula Simmonds, Family YMCA of the Desert representative, provided an update of the modified hours of operation for the Palm Desert Aquatic Center, noted regular operating hours depended upon sufficient staffing levels for safety, and responded to City Council inquiries. Palm Desert Aquatic Center Manager Keyes provided additional information and further responded to City Council inquiries. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION: Councilmember Trubee reported his attendance at the League of California Cities conference for new mayors and councilmembers and other committee meetings. Councilmember Harnik reported her attendance at various meetings and highlighted the dedication of the Palm Desert High School baseball field as Salazar Field in honor of longtime coach Darrol Salazar. Mayor Pro Tem Quintanilla noted the need for veterinarians in the area; spoke of her participation in various events; and thanked staff for presenting the conceptual drawing for the Palm Desert Visitor Center to the Cultural Arts Committee. Mayor Kelly informed residents of the City of Palm Desert’s program that reimburses animal adoption fees paid for animals obtained from county or nonprofit shelters and rescue groups within the city; acknowledged Engineers’ Week and expressed appreciation for City engineers and the work they do. NON­AGENDA PUBLIC COMMENTS: Geoffrey Gregory, Palm Desert resident, advised that his neighbor installed a pickleball court at his rental home and urged the City Council to take immediate action to prohibit such activity in a residential area. Linda Alden Cloud, Chair of the Architectural and Design Committee of the Palm Desert Historical Society, shared information on a walking tour event as part of Modernism Week; thanked the City Council for the award of a $3,000 grant to produce the Society’s booklet, and shared information on another tour and the volunteers. Gregg Akkerman, Palm Desert resident, requested the Council provide an update on Measure B, voted upon on November 8, 2022. Item 1A-2 CC, SARDA, & HA Meeting Minutes February 16, 2023 City of Palm Desert Page 3 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES Kim McFarland, Palm Desert resident, supported the comments of Mr. Gregory, noting that a pickleball court should not be allowed at a rental property in a residential area. 1.CONSENT CALENDAR: MOTION BY MAYOR PRO TEM QUINTANILLA, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to approve the consent calendar with the removal of Item 1E for separate discussion. A.APPROVAL OF FINDINGS RELATIVE TO AB 361 – REMOTE TELECONFERENCING MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to find that the State of California continues in a Governor-declared state of emergency to combat the COVID epidemic, that state and local health officials are recommending social distancing, and that the City may continue to employ remote teleconferencing. B.APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to approve the Minutes of January 26, 2023. C.APPROVAL OF WARRANTS MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to approve warrants issued for the period of November 26, 2022, through February 2, 2023. D.ADOPT RESOLUTION NO. 2023­002 AUTHORIZING DESTRUCTION OF OBSOLETE RECORDS FROM THE FINANCE DEPARTMENT AND HOUSING DIVISION MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to adopt Resolution No. 2023-002 authorizing the destruction of obsolete records from the Finance Department and Housing Division pursuant to California Government Code Section 34090. E.REJECT ALL BIDS SUBMITTED FOR CONSTRUCTION OF ONE QUAIL PLACE PARKING LOT REHABILITATION (PROJECT NO. 819­20) (Housing Authority) This item was removed from the Consent Calendar. Please refer to page 5 of these minutes for a summary of that action. Item 1A-3 CC, SARDA, & HA Meeting Minutes February 16, 2023 City of Palm Desert Page 4 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES F.AWARD CONTRACT NO. C44690 TO URBAN HABITAT, INC., OF LA QUINTA, CALIFORNIA, FOR THE PORTOLA AVENUE AND MAGNESIA FALLS DRIVE MEDIAN ISLAND LANDSCAPE INSTALLATION PROJECT IN THE AMOUNT OF $275,978 (PROJECT NO. 937­23) MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to: 1.Award Contract No. C44690 to Urban Habitat, Inc., of La Quinta, California, for the Portola Avenue and Magnesia Falls Drive Median Island Landscape Installation project in the amount of $275,978. 2.Authorize the Director of Finance to set aside a contingency in the amount of $55,000 for unforeseen conditions. 3.Authorize the Director of Finance to appropriate $60,000 from the Unassigned General Fund Reserves to Account No. 1104614-4337001. 4.Authorize the City Manager or designee to review and approve written requests for the use of contingency per Section 3.30.170 of the Palm Desert Municipal Code. 5.Authorize the City Manager to execute the agreement. G.AWARD CONTRACT NO. C44570 TO JACOBSSON ENGINEERING CONSTRUCTION, INC., OF PALM DESERT, CALIFORNIA, FOR THE WHITE STONE LANE STREET IMPROVEMENTS IN THE AMOUNT OF $535,122 (PROJECT NO. 512­21) MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to: 1.Award Contract No. C44570, including Additive Bid Item #1, to Jacobsson Engineering Construction, Inc., of Palm Desert, California, for the White Stone Lane Street Improvements in the amount of $535,122. 2.Authorize the Director of Finance to set aside a contingency in the amount of $53,500 for unforeseen conditions. 3.Authorize the City Manager to review and approve written requests for the use of the contingency amount. 4.Authorize the City Manager to execute the agreement. H.APPROVE AN AMENDMENT TO CONTRACT NO. C41690 WITH HR GREEN PACIFIC, INC., IN THE AMOUNT OF $44,375 FOR LAND DEVELOPMENT, BUILDING, AND PLANNING WORKFLOW DEVELOPMENT, AND TRAKIT IMPLEMENTATION MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to: 1. Approve an amendment to Contract No. C41690 between HR Green Pacific, Inc., and the City of Palm Desert in the amount of $44,375 for land development, building, and planning workflow development, and TrakIT implementation. 2.Authorize City Manager or designee to execute Contract Amendment No. 3. Item 1A-4 CC, SARDA, & HA Meeting Minutes February 16, 2023 City of Palm Desert Page 5 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES I.AWARD CONTRACT NO. C44790 TO ESCRIBE SOFTWARE LTD FOR AGENDA MANAGEMENT SOFTWARE MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to: 1.Award a three-year subscription agreement No. C44790, with an option to extend the agreement for an additional two-year term, to eScribe Software LTD for agenda management software. 2.Authorize the City Manager to execute said agreement. EXCLUDED CONSENT CALENDAR: E.REJECT ALL BIDS SUBMITTED FOR CONSTRUCTION OF ONE QUAIL PLACE PARKING LOT REHABILITATION (PROJECT NO. 819­20) (Housing Authority) Rumzi AlAbbasi, Contractor, spoke in objection to the staff recommendation and requested that the City Council award the project to his company as the lowest bidder. MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER TRUBEE, CARRIED 5-0, to: 1.Reject all bids received for the construction of One Quail Place Parking Lot Rehabilitation. 2.Authorize staff to re-advertise for the construction of One Quail Place Parking Lot Rehabilitation. 2.ACTION CALENDAR: A.ADOPT RESOLUTION NOS. 2023­003 AND 2023­004 APPROVING 2022/23 MID­YEAR BUDGET ADJUSTMENTS AND REVISED STAFF ALLOCATION SCHEDULE Finance Director Chavez presented the staff report and responded to City Council inquiries. MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER TRUBEE, CARRIED 5-0, to: 1.Adopt Resolution No. 2023-003 approving mid-year budget adjustments for the Fiscal Year ending June 30, 2023. 2.Adopt Resolution No. 2023-004 approving revised staff allocation schedule for the Fiscal Year ending June 30, 2023. Item 1A-5 CC, SARDA, & HA Meeting Minutes February 16, 2023 City of Palm Desert Page 6 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES B.INTRODUCTION OF ORDINANCE NO. 1390 AMENDING THE PALM DESERT MUNICIPAL CODE TO UPDATE, CLARIFY, AND CODIFY BYLAWS AND GENERAL PROVISIONS FOR THE CITY’S BOARDS, COMMISSIONS, COMMITTEES, AND TASK FORCES City Clerk Mejia presented a staff report and responded to City Council inquiries. MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to waive further reading and introduce Ordinance No. 1390 amending the Palm Desert Municipal Code to update, clarify, and codify bylaws and general provisions for the City’s boards, commissions, committees, and task forces. C.INTRODUCTION OF ORDINANCE NO. 1391 REVISING CHAPTER 2.68 OF THE PALM DESERT MUNICIPAL CODE RELATIVE TO CULTURAL ARTS COMMITTEE Deputy Director of Economic Development Lawrence presented a staff report and responded to City Council inquiries. MOTION BY MAYOR PRO TEM QUINTANILLA, SECOND BY COUNCILMEMBER HARNIK, CARRIED 5-0, to waive further reading and introduce Ordinance No. 1391 revising Chapter 2.68 of the Palm Desert Municipal Code relative to the Cultural Arts Committee. D.APPROVE COOPERATIVE AGREEMENT NO. C44800 WITH THE COUNTY OF RIVERSIDE TO PROVIDE CAPITAL FOR FIRE STATION CONSTRUCTION AND A STAFFING COST SHARE FOR FIRE STATION 102 Assistant City Manager Escobedo narrated a PowerPoint presentation and responded to City Council inquiries. MOTION BY COUNCILMEMBER HARNIK, SECOND BY COUNCILMEMBER NESTANDE, CARRIED 5-0, to: 1. Approve Cooperative Agreement No. C44800 with the County of Riverside to provide capital for fire station construction and a staffing cost share for Fire Station 102. 2.Authorize the City Manager to execute the cooperative agreement. Item 1A-6 CC, SARDA, & HA Meeting Minutes February 16, 2023 City of Palm Desert Page 7 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES E.AWARD CONTRACT NOS. C44810 AND C44820 TO MULTIPLE VENDORS FOR CONSTRUCTION MANAGEMENT SERVICES OF PUBLIC WORK PROJECTS FOR AN AGGREGATE AMOUNT NOT TO EXCEED $11,739,394 MOTION BY MAYOR PRO TEM QUINTANILLA, SECOND BY COUNCILMEMBER TRUBEE, CARRIED 5-0, to: 1. Award Contract No. C44810 to Anser Advisory Management, LLC., of Santa Ana, California, and Contract No. C44820 to MARRS Services, Inc., of Fullerton, California, for construction management services of Public Works projects for a term of two years (2) years with the option to renew for no more than three (3) additional one-year terms in a combined aggregate amount between both vendors, not to exceed $11,739,394. 2.Authorize the City Manager to execute said agreements and subsequent task orders. 3.Direct the City Attorney, Director of Finance, and Director of Public Works to review annual expenditures and performance of the vendors under said Agreements. F.AWARD PROFESSIONAL SERVICES AGREEMENT NO. C44830 TO KIMLEY­ HORN AND ASSOCIATES IN THE AMOUNT OF $496,464 FOR A RAIL STATION FEASIBILITY STUDY Councilmember Harnik recused herself due to a potential financial conflict and left the Council Chamber. Management Analyst Mager narrated a PowerPoint presentation and responded to City Council inquiries. MOTION BY COUNCILMEMBER TRUBEE, SECOND BY MAYOR PRO TEM QUINTANILLA, CARRIED 4-0-1 (HARNIK RECUSED), to: 1. Award Professional Services Agreement No. C44830 to Kimley-Horn and Associates of Indian Wells, California, for a rail station feasibility study in the amount of $496,464 for a one-year term with an option to renew for one (1) additional one-year term based on satisfactory performance. 2.Authorize the City Manager or designee to review and approve written amendment requests in an amount not to exceed $49,646. 3.Authorize the City Manager or designee to execute and renew the agreement and any documents necessary to effectuate the actions taken herewith. Councilmember Harnik returned to the Council Chamber. Item 1A-7 CC, SARDA, & HA Meeting Minutes February 16, 2023 City of Palm Desert Page 8 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES G.RESCIND RESOLUTION NO. 2018­89 AND ADOPT RESOLUTION NO. 2023­005 REVISING TAXATION RATES FOR CANNABIS BUSINESSES OPERATING WITHIN THE CITY OF PALM DESERT Management Analyst Mager narrated a PowerPoint presentation and responded to City Council inquiries. Paul Cotterell, representing The Leaf, encouraged the City Council to approve the staff recommendation and thanked them for their work on this item. Scott Rusczyk, representing the Coachella Valley Cannabis Alliance Network, supported Mr. Cotterell’s comments. Kenneth Churchill, representing West Coast Cannabis Club, supported the staff recommendation to lower cannabis tax to 5%. MOTION BY MAYOR PRO TEM QUINTANILLA, SECOND BY COUNCILMEMBER HARNIK, CARRIED 5-0, to rescind Resolution No. 2018-89 and adopt Resolution No. 2023-005 revising tax rates for cannabis businesses operating within the City of Palm Desert. 3.PUBLIC HEARINGS: A.RECEIVE PUBLIC COMMENTS REGARDING THE DEVELOPMENT OF THE FIVE­YEAR CONSOLIDATED PLAN AND ANALYSIS OF IMPEDIMENTS PLAN YEAR 2023­2028, INCLUDING PROGRAM YEAR 2023­2024 ANNUAL ACTION PLAN AND THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Maria Gallegos, Michael Baker & Associates consultant, narrated a PowerPoint presentation and responded to City Council inquiries. Mayor Kelly opened the public hearing. Norma Biegel, representing Operation SafeHouse, spoke about her organization and thanked the City Council for their consideration of a grant request. Laura Nickerson, representing the Desert AIDS Project, spoke about his organization and thanked the City Council for their consideration of a grant request. Jack Newby, representing the Joslyn Center, spoke about his organization and thanked the Cove Communities Services Commission and the City Council for their consideration of a grant request. MOTION BY MAYOR PRO TEM QUINTANILLA, SECOND BY COUNCILMEMBER HARNIK, CARRIED 5-0, to open the public hearing and receive comments regarding the development of the Five-Year Consolidated Plan and Analysis of Impediments Plan Year 2023-2028, including Program Year 2023-2024 Annual Action Plan and the Community Development Block Grant Program. Item 1A-8 CC, SARDA, & HA Meeting Minutes February 16, 2023 City of Palm Desert Page 9 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES INFORMATION ITEMS: None. ADJOURNMENT: The City Council adjourned at 6:20 p.m. Respectfully submitted, Níamh M. Ortega Assistant City Clerk/Assistant Secretary ATTEST: Anthony J. Mejia, MMC City Clerk/Secretary APPROVED BY CITY COUNCIL: __/__/2023 Item 1A-9 [This page has intentionally been left blank.] Item 1B-1 Item 1B-2 Item 1B-3 Item 1B-4 Item 1B-5 Item 1B-6 Item 1B-7 Item 1B-8 Item 1B-9 Item 1B-10 Item 1B-11 Item 1B-12 Item 1B-13 Item 1B-14 Item 1B-15 Item 1B-16 Item 1B-17 Item 1B-18 Item 1B-19 [This page has intentionally been left blank.] Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Thomas Soule, Public Affairs Manager REQUEST: APPOINT THREE DIRECTORS TO THE EL PASEO PARKING AND BUSINESS IMPROVEMENT DISTRICT BOARD RECOMMENDATION: Appoint Rebecca Elliot, Michelle Whittaker, and Alec Longmuir to the Board of Directors of the El Paseo Parking and Business Improvement District (EPPBID), each for three-year terms expiring June 30, 2026. COMMITTEE/COMMISSION RECOMMENDATION: At its regular meeting on January 16, 2023, the EPPBID Board of Directors voted unanimously to recommend to City Council the appointment of Rebecca Elliott and Michelle Whittaker. At its regular meeting on February 19, 2023, the Board voted unanimously to recommend the appointment of Alec Longmuir. BACKGROUND/ANALYSIS: Per its bylaws, the EPPBID Board has a process for filling vacancies that differs from the City's other committees and commissions. To be considered for a seat on the Board, applicants must go through a vetting process conducted by a membership sub-committee. This sub-committee then presents its findings to the entire Board for further consideration. Finally, after careful deliberation, the Board recommends a candidate or candidates to the City Council by a majority vote. Currently, there are three vacant seats on the Board following the resignations of Elyssa Goldberg, Christine Stein, and Dennis Flaig-Moore. The Board advertised the openings to its membership over several months and interviewed all qualified applicants. The Board unanimously voted to recommend Rebecca Elliot, General Manager of Porta Via restaurant; Michelle Whittaker, owner of Blonde Clothing Boutique; and Alec Longmuir, Gallery Director at Melissa Morgan Fine Art. The appointment of these three individuals will bring balance to the composition of the Board. FINANCIAL IMPACT: There is no fiscal impact associated with this action. REVIEWED BY: Department Director: Eric Ceja Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman Item 1C-1 [This page has intentionally been left blank.] Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Niamh M. Ortega, Assistant City Clerk REQUEST: SECOND READING AND ADOPTION OF ORDINANCE NO. 1390 AMENDING THE PALM DESERT MUNICIPAL CODE TO UPDATE, CLARIFY, AND CODIFY BYLAWS AND GENERAL PROVISIONS FOR THE CITY’S BOARDS, COMMISSIONS, COMMITTEES, AND TASK FORCES RECOMMENDATION: Waive the second reading of the ordinance text in its entirety and read by title only; and adopt Ordinance No. 1390. BACKGROUND/ANALYSIS: On February 16, 2023, the City Council introduced Ordinance No. 1390 for first reading. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30 days from adoption. FINANCIAL IMPACT: There is no direct financial impact associated with this action. REVIEWED BY: City Clerk: Anthony Mejia City Manager: Todd Hileman ATTACHMENTS: 1.Ordinance No. 1390 Item 1D-1 Ordinance No. 1390 Page 1 ORDINANCE NO. 1390 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE PALM DESERT MUNICIPAL CODE TO UPDATE, CLARIFY, AND CODIFY BYLAWS AND GENERAL PROVISIONS FOR BOARDS, COMMISSIONS, COMMITTEES, AND TASK FORCES City Attorney’s Summary This ordinance amends the Palm Desert Municipal Code to update, clarify, and codify bylaws and general provisions for the City’s Boards, Commissions, Committees, and Task Forces and rescinds and replaces bylaws adopted prior to the effective date of this ordinance. The City Council of the City of Palm Desert, California, does hereby ordain as follows: Section 1. Addition to Municipal Code. Chapter 2.14 Marketing Committee is hereby added to Title 2 Administration and Personnel of the Palm Desert Municipal Code as follows: “Chapter 2.14 MARKETING COMMITTEE 2.14.010 Established. A Marketing Committee (“Committee”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Committee, except as otherwise required by state law. If there are any conflicts between this chapter and Chapter 2.34 of this code, the provisions of this chapter shall control. 2.14.020 Purpose. Marketing Committee members shall serve as a conduit for information between their own professional network and the City in terms of industry trends, local promotion ideas, and business activity and projections as they relate to tourism. Members are to advise the City regarding the best method of planning and implementing a marketing and advertising program and to closely monitor that program and its related budget. 2.14.030 Members. The Marketing Committee shall be comprised of up to seven (7) members and should represent a cross section of the community as it relates to tourism. Each Committee member should represent one of these categories: large hotel; small hotel; large retailer; small retailer; shopping center; restaurant; cultural, visual, or performing arts; real estate; local attraction; or marketing professional. Item 1D-2 Ordinance No. 1390 Page 2 2.14.040 Meetings. The Marketing Committee may hold bi-monthly regular meetings at such day, time, and place as set by Committee resolution or minute order. 2.14.050 Responsibilities. The Marketing Committee has the following responsibilities: A.Review, monitor, and evaluate the City’s marketing, advertising, and public relations efforts including the annual marketing plan, media plans, and related budgets. B.Review print, radio, digital, and social media advertising and collateral materials produced by the City or its representatives. C.Monitor the City’s website to ensure it is utilized to its fullest potential in the promotion of the City and its marketing/tourism goals. D.Review and make recommendations on requests for financial support for special events and activities. E.Make recommendations about the selection of consultants and agencies providing professional marketing/advertising services required by the City.” Section 2. Amendment to Municipal Code. Palm Desert Municipal Code Chapter 2.16 Audit, Investment and Finance Committee of Title 2 Administration and Personnel, is hereby renamed “Chapter 2.16 Finance Committee” and amended as follows: “CHAPTER 2.16 FINANCE COMMITTEE 2.16.010 Established. A Finance Committee (“Committee”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Committee, except as otherwise required by state law. If there is any conflict between this chapter and Chapter 2.34 of this code, the provisions of this chapter shall control. 2.16.020 Purpose. The Finance Committee shall advise the city council and work to promote and enhance fiscal responsibility, accountability, integrity, transparency, and to recommend fiscal and investment policies for city council consideration. 2.16.030 Members. The Finance Committee shall be comprised of up to seven (7) members: two (2) city council members appointed by the mayor and up to five (5) community members appointed by the city council by majority vote. Item 1D-3 Ordinance No. 1390 Page 3 2.16.040 Meetings. The Finance Committee may have quarterly regular meetings at such day, time, and place as set by Committee resolution or minute order. 2.16.050 Responsibilities. The Finance Committee reviews and, if necessary, advises the city council on auditing and internal controls; financial reporting; investments; municipal debt and refunding; and such other functions as the city council may request.” Section 3. Addition to Municipal Code. Chapter 2.18 Building Board of Appeals is hereby added to Title 2 Administration and Personnel of the Palm Desert Municipal Code as follows: “Chapter 2.18 BUILDING BOARD OF APPEALS 2.18.010 Established. The Building Board of Appeals and Condemnation (“Building Board”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Board, except as otherwise required by state law. If there is any conflict between this chapter and Chapter 2.34 of this code, the provisions of this chapter shall control. 2.18.020 Purpose. The Building Board hears appeals regarding the interpretation of the California Building Code, and condemnation and abatement of dangerous structures. The Building Board may ratify alternate materials and methods of construction that are not specifically recognized in the California Building Code. 2.18.030 Members. The Building Board shall be comprised of five (5) community members. 2.18.040 Meetings/Appeal Hearings. A.The Building Board meetings will be scheduled as needed when letters of appeal from Building Officer decisions are received. B.The Building Board secretary shall collect letters of appeal and prepare an agenda for each meeting which shall be furnished to members prior to the meeting. C.Requests for hearings must be scheduled at least ten (10) days prior to such hearing. Item 1D-4 Ordinance No. 1390 Page 4 D.If a party of any appeal intends to submit evidence, or legal argument, outside of the expertise of the Building Board, said party shall so inform the Building Board secretary in writing at the time the appeal is filed. Failure to provide such information shall be cause to prohibit the presentation of such evidence or argument. E.The Building Board shall be the judge of the qualifications of persons appearing as expert witnesses and shall be empowered to refuse to receive the testimony of any purported expert not so qualified. F.The decision of the Building Board on an appeal shall be become final, unless appealed to the city council within five (5) business days.” Section 4. Amendment to Municipal Code. Palm Desert Municipal Code Chapter 2.20 Planning Commission of Title 2 Administration and Personnel is hereby amended as follows: “Chapter 2.20 PLANNING COMMISSION 2.20.010 Established. Pursuant to the provisions of Section 65100 of the Government Code requiring each city to establish a planning agency, a Planning Commission (“Commission”) is established and designated as the planning agency of the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Commission, except as otherwise required by state law. If there is any conflict or inconsistency between the provisions of this chapter and those in Chapter 2.34 of this code, the provisions of this chapter will control. 2.20.020 Members. The Planning Commission shall consist of five (5) regular members. 2.20.030 Meetings. The Planning Commission may hold two (2) regular meetings per month at such day, time, and place as set by Commission resolution or minute order. 2.20.040 Responsibilities. The Planning Commission has the following responsibilities: A.Prepare, adopt, and recommend to the city council a general plan for the City; B.Periodically review, adopt, and recommend revisions to the city council of the general plan; Item 1D-5 Ordinance No. 1390 Page 5 C.Prepare, adopt, and recommend to the city council such specific plans as may be necessary or desirable to carry out the objectives of the general plan; D.Prepare, adopt, and recommend to the city council drafts of regulations as may in its judgment be required for the systematic execution of the general plan; E.Act as the advisory agency to the city council in connection with the administration of the State Map Act and Environmental Quality Act of 1970; F.Periodically review and recommend to the city council regarding the capital improvement program of the City; G.Perform such other functions as the city council may provide or as may be imposed by law. Section 5. Addition to Municipal Code. Chapter 2.22 Architectural Review Commission (ARC) is hereby added to Title 2 Administration and Personnel of the Palm Desert Municipal Code as follows: “2.22 ARCHITECTURAL REVIEW COMMISSION 2.22.010 Established. The Architectural Review Commission (“Commission”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Commission, except as otherwise required by state law. If there are any conflicts between this chapter and Chapter 2.34 of this code, the provisions of this chapter shall control. 2.22.020 Purpose. The Architectural Review Commission reviews the building architecture and landscape design of commercial, office, industrial, and residential development, deviations, or otherwise as stated in the municipal code and modifications to previously approved projects to assure compatibility with the City's policies and objectives. 2.22.030 Members. A.The Architectural Review Commission shall consist of seven (7) regular members. Item 1D-6 Ordinance No. 1390 Page 6 B.At all times the Commission shall strive to maintain a membership composition that includes the following professionals: 1. Architect, three (3) members; 2.Landscape Architect/Designer, one (1) member; And may include three (3) members of the following: 3.Development Industry professional; 4.Member of the public who represents the community at large and is knowledgeable in the design or architectural field; 5.Nonresident with professional expertise as an Architect or Landscape Architect/Designer. 2.22.040 Meetings. A.The Architectural Review Commission may hold two (2) regular meetings per month at such date, time, and place as set by Commission resolution or minute order. 2.22.050 Disqualification of members for interest in properties. A.Any commission member who is employed to execute a plan, building, or structure of any kind requiring commission approval or who will take part in competition for any such building or structure, shall be disqualified from voting, recuse oneself, and step down from proceedings on that item. B.Commission members with projects before the ARC shall file projects under the same rules, procedures, and guidelines as set forth in Chapter 25 of this code. 2.22.060 Responsibilities. The Architectural Review Commission has the following responsibilities: A.Review and make recommendations to the Planning Commission for precise plans, development plans, conditional use permits, variances, and planned community developments, and/or as otherwise indicated in Section 25.60.070; B.Conduct final approval for design review and sign design review pursuant to Chapter 25.68, and/or as otherwise indicated in Chapter 25.60.070; C.Recognize the interdependence of land values and aesthetics and provide a method by which the City may implement this interdependence to its benefit; D.Ensure the architectural design of buildings or structures and landscaping developed areas and open spaces are visually harmonious with surrounding development and the natural environments; Item 1D-7 Ordinance No. 1390 Page 7 E.Promote high quality aesthetics and visual interest when considering developments to attain the most desirable use of land and improvements; and F.Encourage the development of private and public property in harmony with the desired character of the City and in conformance with the guidelines provided in Title 25 (Zoning) with due regard for the public and private interests involved.” Section 6. Amendment to Municipal Code. Palm Desert Municipal Code Chapter 2.34 Committee/Commission Member Requirements of Title 2 Administration and Personnel is hereby renamed “Chapter 2.34 Boards, Commissions, Committees, and Task Forces – General Provisions,” and is amended as follows: “Chapter 2.34 BOARDS, COMMISSIONS, COMMITTEES, AND TASK FORCES – GENERAL PROVISIONS 2.34.010 Purpose. The purpose of this chapter is to provide uniform general regulations applicable to all city council established boards, commissions, committees, and task forces (“appointed bodies”). 2.34.020 Applicability. A.The provisions of this chapter shall apply to every appointed body whether it is established by ordinance, resolution, or otherwise. In the event any provision of this chapter conflicts with a specific provision of an ordinance or resolution establishing a specific appointed body or the appointed body’s bylaws, such specific provision shall control. B.The city council may create by ordinance or resolution any appointed body as it deems necessary and may grant powers and duties to said appointed body. 2.34.030 Eligibility. A.Residency Requirement. Residency within the city limits of Palm Desert shall be a requirement for appointment to an appointed body except as otherwise stated in the appointed body bylaws or in cases where the city council deems it appropriate to appoint a nonresident to an appointed body that needs specific expertise offered by a nonresident. B.City Employees. City employees are not eligible to serve as a member on an appointed body. Item 1D-8 Ordinance No. 1390 Page 8 C. Relatives. A relative of a city employee or city council member shall not serve on any appointed body if it could entail reviewing one another’s work. 1.“Relative” includes mother, father, sister, brother, spouse, domestic partner, daughter, son, mother-in-law, father-in-law, sister-in-law, brother-in-law, daughter-in-law, son-in-law, grandmother, grandfather, granddaughter, grandson, aunt, uncle, first cousin, nieces, and nephews. 2.“Review” means the appointed body has oversight responsibilities, such as the Finance Committee, or its decision may be appealed to the city council; however, it does not include the routine sending of recommendations from the appointed body to the city council. 2.34.040 Appointments, terms of office, vacancies. A.Appointments. The city council will oversee the application, interview, and appointment process for appointed body members. Each appointment will be made by a majority vote of the city council. The beginning date for all terms of appointment to any appointed body will be July 1 and the ending date will be June 30, except for appointments made to fill unexpired terms of office, or appointments made to fill new positions created during the year, but which will all be ultimately based upon the fiscal year thereafter. Following expiration of the term of office, each member shall continue to serve until the member is reappointed or a successor is qualified and appointed. B.Term of Office. All terms of office for regular and alternate members will be four years, unless otherwise specified in the bylaws. Each member shall be eligible for reappointment at the discretion of the city council, recognizing; however, that it is the city’s goal to allow as many qualified and willing individuals as possible an opportunity to serve their community. C.Vacancies. If a vacancy occurs before the expiration of a term, the city council may appoint a member for the unexpired term pursuant to subsection A of this section. D.Initial Terms. For new appointed bodies, the initial appointments shall be staggered so that approximately half of the members serve an initial two-year term and thereafter, if reappointed, a four year term; the remainder of the members shall serve a four year term. 2.34.050 Organization and bylaws. A.Officers. At the first meeting following July 1st, appointed bodies shall elect a chairperson and vice chairperson for a one-year term. The chairperson shall preside over all meetings. The vice chairperson shall preside in the chairperson’s absence. In the chairperson’s and vice chairperson’s absence, the appointed body may designate a presiding officer. Vacancies in either the chairperson or vice chairperson position occurring prior to July may be chosen at any time by a majority vote of the appointed body. Item 1D-9 Ordinance No. 1390 Page 9 B.Bylaw Amendment. Each appointed body may review and propose amendments to its own bylaws, provided that such bylaws are not in conflict with any provisions of federal, state, or local law. Bylaws shall be submitted to the city council for approval. 2.34.060 Members, secretary, and liaisons. A.Regular Members. The number of regular members of each appointed body shall be established by city council ordinance or resolution. B.Alternate Members. The city council; by ordinance, resolution, or minute order; may establish a certain number of alternate members for any appointed body. Alternate member(s) may attend appointed body meetings as a nonvoting, nonparticipating member. In the event of an absence of a regular member, the alternate member may sit with the appointed body as a voting, participating member. Alternate members are exempt from the attendance requirements set for in Section 2.34.100 of this code. C.Ex Officio Members. The city council or city manager may designate ex officio members to an appointed body. The ex officio member may participate in the discussion as permitted by the chairperson, but they do not count towards a quorum nor cast any votes. D.Staff Liaison and Recording Secretary. The city manager may designate a staff liaison and recording secretary for each appointed body. The staff liaison shall aid and support the appointed body; provide information about relevant city policies and procedures; facilitate communication between the appointed body and city council; and keep the city manager informed of appointed body activities. The recording secretary shall prepare and post agendas, keep meeting minutes, manage and retain related documents, and forward a copy of meeting minutes to the city clerk. E.City Council Liaison. The city council may designate a city council member as a liaison to an appointed body. City council liaisons facilitate communication between the city council and appointed bodies. A city council liaison is not a member nor advocate of the appointed body and does not give direction or influence decisions but can assist and provide information. 2.34.070 Meetings and quorum. A.Regular Meetings. Regular meetings may be held at a day, time, and place established by resolution or minute order of the appointed body that may be amended from time to time. Regular meeting agendas shall be posted at least 72 hours ahead of the meeting. B.Special Meetings. Special meetings may be called by the chairperson or a majority of the appointed body. Special meeting agendas shall be noticed at least 24 hours ahead of the meeting. Item 1D-10 Ordinance No. 1390 Page 10 C.Emergency Meetings. Emergency meetings may be called if dire circumstances threaten public health or safety, if one-hour notice is given to media if requested. D.Meeting Cancelation. The staff liaison, in consultation with the chairperson, may cancel meetings in accordance with the Ralph M. Brown Act. E.Signing Authority. The presiding officer shall sign, and the secretary shall attest, to all resolutions and other documents that are adopted in the presiding officer’s presence. If the presiding officer is unavailable, an alternate presiding officer may sign such documents. F.Quorum. A majority of voting members shall constitute a quorum for the transaction of business, except where the bylaws provide for a membership up to a certain number of voting members, then a majority of appointed voting members shall constitute a quorum for the transaction of business. G.Decorum. Members shall be respectful of everyone present, practice civility and decorum in discussions and debates, and honor the role of the presiding officer in maintaining order. 2.34.080 Agenda management. A.Agenda Management. The staff liaison of each appointed body shall oversee approving and placing items on the agenda. B.Sponsoring an Agenda Item. Any regular member, including the chairperson, may request the staff liaison to agendize an item for a future meeting during a regular meeting, when supported by at least one other appointed body member. 2.34.090 Voting, motions, tie votes, and authorized representatives. A.Voting. Each regular member shall be entitled to one vote and should vote on every question presented unless disqualified by reason of a conflict of interest. B.Motions. Recommendations or actions will be made by motion, second, and a recorded vote. C.Majority and Tie Votes. A majority vote of the members present at a duly constituted meeting shall be required to carry a motion, proposal, or resolution. Tie votes shall be lost motions or “no action” and the matter voted upon may be subject to further consideration. D.Authorized Representatives. Under no circumstances shall any member take any action or make any statement committing the appointed body unless expressly authorized to do so by majority vote of the appointed body. Item 1D-11 Ordinance No. 1390 Page 11 2.34.100 Absences, resignation, and removal. A.Absences. Regular members are expected to diligently attend and participate in all meetings. As far in advance of the meeting as practicable, a regular member requesting an excused absence shall submit said request to the staff liaison or recording secretary. An “excused absence” may be granted due to illness or injury, unexpected business, emergencies, important personal business, official City business, or any reasonable excuse that is approved by the appointed body. B.Unexcused Absences. Unexcused absences shall result in automatic resignation under the following circumstances: 1.Six unexcused absences from regular meetings in any twelve-month period on appointed bodies that meet twice monthly. 2.Three unexcused absences from regular meetings in any twelve-month period on appointed bodies that meet monthly. 3.Two unexcused absences from regular meetings in any twelve-month period on appointed bodies that meet bimonthly. 4.One unexcused absence from regular meetings in any twelve-month period on appointed bodies that meet quarterly. 5.Upon reaching the allowed number of unexecuted absences, the city clerk shall notify the regular member that they are subject to automatic resignation and shall provide a 15-day grace period for the member to request waiver of any unexcused absence from the mayor, after which the resignation shall be deemed automatic. C.Waiver of Unexecuted Absences. Upon written request by a member, the mayor may excuse an otherwise unexcused absence. D.Resignation. Any member may resign at any time by written notice to the city clerk, staff liaison, or recording secretary. E.Removal. Any member may be removed at any time, with or without cause, by a majority vote of the city council. F.Failure to Comply with Law. Except as otherwise provided by state law, any member failing to comply with mandatory training requirements or any public disclosure report required by federal, state, or local law by the established deadline shall have their service automatically suspended on the date that is five (5) calendar days following a written certification by the city clerk that three (3) written (including electronic communication) notifications had been provided to the member. A member’s service shall be immediately reinstated upon filing the public disclosure report or proof of training. Item 1D-12 Ordinance No. 1390 Page 12 2.34.110 Addressing the appointed body. A.Recognition by Presiding Officer. Any person desiring to address the appointed body shall wait to be recognized by the presiding officer. After being recognized, the person will be asked to state their name and city of residence for the record and shall limit remarks to the question under discussion. All remarks and questions shall be addressed to the presiding officer and not to any individual member, staff member, or other person. No person shall enter into any discussion without being recognized by the presiding officer. B.Written Correspondence. The staff liaison or recording secretary is authorized to receive and open all mail addressed to an appointed body and give it immediate attention to the end that all administrative business referred to in said communications and not requiring appointed body action may be disposed of between meetings. Any communication related to an agenda item before an appointed body shall be distributed to the appointed body as soon as practicable and retained for the official record. C.Time Limit for Public Comment. Public comments will be limited to the time allowed on the meeting agenda unless additional time is granted by the presiding officer. Time limits may be waived or reduced by the presiding officer based on the number of speakers on any specific item when uniformly applied. A speaker may not defer their time to other speakers. 2.34.120 Compensation. All members serve without compensation, unless otherwise provided, but may be reimbursed for reasonable expenses in accordance with City policy.” Section 7. Addition to the Municipal Code. Chapter 2.58 Parks and Recreation Committee is hereby added to Title 2 Administration and Personnel of the Palm Desert Municipal Code as follows: “Chapter 2.58 PARKS AND RECREATION COMMITTEE 2.58.010 Established. A Parks and Recreation Committee (“Committee”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Committee, except as otherwise required by state law. If there is any conflict between this chapter and Chapter 2.34 of this code, the provisions of this chapter shall control. Item 1D-13 Ordinance No. 1390 Page 13 2.58.020 Members. The Parks and Recreation Committee shall be comprised of nine (9) regular members from the community. Additionally, a representative from Desert Recreation District, Family YMCA of the Desert, and any other organization that has an interest in parks and recreation are encouraged to attend. 2.58.030 Meetings. The Parks and Recreation Committee may hold monthly regular meetings at such date, time, and place as set by Committee resolution or minute order. 2.58.040 Responsibilities. The Parks and Recreation Committee has the following responsibilities: A.Master Plan. The Committee shall develop and maintain a City master plan for parks and recreation. B.Citizen Input. Obtain continuous citizen input as a means to quantifying the needs of the community. C.Public Access. Ensure convenient access and usability by all citizens of the community. D.Member Inspections. Each member will inspect an assigned park and report the condition and observations regarding improvements to city staff prior to the next scheduled meeting of each scheduled month. City staff will ensure reported problems are properly addressed. E.Liaisons. Members may be appointed by the Committee or city council to serve as a liaison with other counties, districts, cities, agencies, commissions, committees, organizations, or groups as may be appropriate. F.Advise and Recommend to city council. The Committee shall have the power to make recommendations to the city council in all matters pertaining to the creation, planning, acquisition, operation, maintenance, coordination, management, and control of all parks and recreation activities and facilities within the City of Palm Desert.” Section 8. Amendment to Municipal Code. Chapter 2.60 Public Safety Commission of Title 2 Administration and Personnel of the Palm Desert Municipal Code is hereby amended as follows: Item 1D-14 Ordinance No. 1390 Page 14 “Chapter 2.60 PUBLIC SAFETY COMMITTEE 2.60.010 Established. The Public Safety Committee (“Committee”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Committee, except as otherwise required by state law. If there is any conflict between this chapter and Chapter 2.34 of this code, the provisions of this chapter shall control. 2.60.020 Purpose. The purpose of the Public Safety Committee is to act as an advisory committee to the city council, and to evaluate any public safety issues within the community brought to the committee’s attention by the city council, city staff, or residents and to make recommendations to the city council. 2.60.030 Members. A.The Public Safety Committee shall be comprised of seven (7) regular members. B.The membership shall ideally consist of the following: 1.One member who has a law enforcement background; 2.One member who has a fire protection background; 3.One member who represents the retail business community; 4.Four members who represent the community at large. 2.60.040 Meetings. The Public Safety Committee may hold monthly meetings at such day, time, and place as set by Committee resolution or minute order. 2.60.050 Responsibilities. The Public Safety Committee shall have the following responsibilities: A.Serve as liaison between the community leaders, citizens, and the public safety officials; B.Review plans, policies, budgets, and proposals for greater efficiency and effectiveness in the area of public safety; C.Provide annual oversight of the city’s contracts for public safety; Item 1D-15 Ordinance No. 1390 Page 15 D.Seek out and evaluate innovative program development for potential implementation in the City of Palm Desert; E.Make recommendations to the city council on programs to provide the highest quality of service possible to community members and business owners and operators; F.Periodically review the city’s disaster preparedness program; G.Review and recommend to the city council ordinances to protect the safety of the community; H.Prepare and make recommendations to the city council on general public safety issues; and I.Perform other functions as the city council may request or as may be imposed by law.” Section 8. Addition to Municipal Code. Chapter 2.62 Civic Engagement Committee is hereby added to Title 2 Administration and Personnel of the Palm Desert Municipal Code as follows: “Chapter 2.62 CIVIC ENGAGEMENT COMMITTEE 2.62.010 Established. A Civic Engagement Committee (“Committee”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Committee, except as otherwise required by state law. If there is any conflict between this chapter and Chapter 2.34 of this code, the provisions of this chapter shall control. 2.62.020 Purpose. Members of the Civic Engagement Committee shall promote civic education and engagement to help residents better understand local government, to foster a positive sense of community, and to prepare the next generation of local government leaders. The Committee shall not serve as an adjudicatory body making findings about any specific grievance. 2.62.030 Members. The Civic Engagement Committee shall be comprised of up to twelve (12) members and should represent a cross section of the community. Item 1D-16 Ordinance No. 1390 Page 16 2.62.040 Meetings. The Civic Engagement Committee may meet quarterly on a date, time, and place as set by Committee resolution or minute order. 2.62.050 Responsibilities. The Civic Engagement Committee has the following responsibilities: A.Research and explore civic engagement programs and resources that fully engage our entire community in the civic process and make suggestions to the city council; B.Recommend events and educational programs to increase good will throughout the community and enhance appreciation of diversity, participating in implementation of those programs as requested by the city council; C.Promote volunteer opportunities available in Palm Desert, both at the City and with community partner organizations; D.Provide input to the city council or city manager when requested on issues pertaining to inclusion and engagement of all residents.” Section 9. Amendment to Municipal Code. Chapter 2.64 Housing Commission of Title 2 Administration and Personnel of the Palm Desert Municipal Code is hereby amended as follows: “Chapter 2.64 HOUSING COMMISSION 2.64.010 Housing authority established. Pursuant to resolution adopted on December 11, 1997, the city council (“city council”) of the City of Palm Desert (“City”) established the Palm Desert housing authority (“authority”) and declared itself to be the commissioners of the authority pursuant to the Housing Authorities Law (California Health and Safety Code Section 34200 et seq.). 2.64.020 Housing commission, created. Pursuant to Section 34291 of the Health and Safety Code of the State of California, a governing body of a city which has declared itself to be the commissioners of a housing authority may, by ordinance, create a housing commission. A housing commission is created and established. Such housing commission may be known and referred to as the “Palm Desert housing commission” or the “housing commission.” The provisions set forth in Chapter 2.34 shall apply to this commission, except as otherwise required by state law. If there is any conflict or inconsistency between the provisions of this chapter or the commission’s bylaws and those in Chapter 2.34, the provisions of this chapter and/or the bylaws will control. Item 1D-17 Ordinance No. 1390 Page 17 2.64.030 Members. A.The housing commission shall consist of seven members who shall be residents of the city. Two of the members shall be appointed as tenants of the authority and one of the tenant appointments shall be over sixty-two years of age if the authority has tenants over that age. If a tenant appointment to the housing commission ceases to be a tenant of the authority, he or she shall be disqualified from being a member and another tenant of the authority shall be appointed by the city council to the remainder of the unexpired term. The successor to a tenant appointment shall be a tenant of the authority. B.Notwithstanding Section 2.34.030, a City officer or employee is eligible to serve on the housing commission, but only if such officer or employee does not exercise powers or duties in his or her office or employment that may conflict with the exercise of the independent judgment required to carry out the purposes of the authority. 2.64.040 Regular meetings. Regular meeting days of the housing commission shall be determined by resolution of the housing commission, except that the board shall meet at least once each month. 2.64.050 Duties. The housing commission shall have the power and be required to review and make recommendations on all matters to come before the authority prior to authority action, except emergency matters and matters which the housing authority, by resolution, excludes from the housing commission’s review. 2.64.060 Procedures for review and recommendation—Further functions. Before a matter is acted upon by the authority, the matter shall be submitted to the housing commission for its review and recommendation. Within thirty days after a matter is submitted to the housing commission for its review and recommendation, the housing commission shall make and file its report thereon with the authority. If the housing commission does not report upon the matter within thirty days after its submission by the authority, the housing commission shall be deemed to have waived its review and recommendations concerning the matter and the authority may thereafter approve the matter without the report of the housing commission. From time to time, the city council may, by ordinance or resolution, amend the procedures set forth in this section or provide for additional procedures for review and recommendation, and for further functions of the housing commission. Item 1D-18 Ordinance No. 1390 Page 18 2.64.070 Housing commission members appointed as relocation appeals board. A.Section 33417.5 of the Health and Safety Code of the State of California provides that there is in each city having a redevelopment agency a relocation appeals board composed of five members appointed by the mayor of the city, subject to the approval of the legislative body. B.By prior resolution, the mayor of the city of Palm Desert appointed five members of the Palm Desert housing authority commission as the members of the relocation appeals board and the city council approved such appointment. C.Pursuant to Section 6152 of the Relocation Assistance and Real Property Acquisition Guidelines (Chapter 6 of Title 25 of the California Code of Regulations, commencing with Section 6000), the city council designates the relocation appeals board to hear the appeals of all persons who make a written request for formal review and reconsideration of the determinations of the city of Palm Desert (the “city”) and the Palm Desert housing authority (the “authority”) as to eligibility and the amount of payment, and to hear the appeals of all persons who make a written request for formal review and reconsideration regarding the city’s or the authority’s actions with respect to referrals to comparable permanent or adequate temporary replacement housing or the city’s or authority’s property management practices. 2.64.080 Removal. Notwithstanding Section 2.34.100, the removal of a member of the housing commission shall comply with the requirements of Section 34282 of the Health and Safety Code of the State of California. 2.64.090 Compensation and reimbursement. Compensation shall be paid to each member of the Palm Desert housing authority in the amount of fifty dollars ($50.00) per member per meeting not to exceed four meetings per month and shall increase in the same amount as may be prescribed by Section 34274 of the Health and Safety Code of the State of California. Said compensation shall be in addition to reimbursement for actual and necessary expenses incurred in the discharge of their duties.” Section 10. Addition to Municipal Code. Chapter 2.66 Resources Preservation & Enhancement Committee is hereby added to Title 2 Administration and Personnel of the Palm Desert Municipal Code as follows: Item 1D-19 Ordinance No. 1390 Page 19 “Chapter 2.66 RESOURCE PRESERVATION & ENHANCEMENT COMMITTEE 2.66.010 Established. A Resource Preservation & Enhancement Committee (“Committee”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Committee, except as otherwise required by state law. If there is any conflict between this chapter and Chapter 2.34 of this code, the provisions of this chapter shall control. 2.66.020 Purpose. The purpose of the Resource Preservation & Enhancement Committee is to oversee the implementation of the Environmental Sustainability Plan (“Plan”) and Greenhouse Gas Inventory as approved by the city council and recommend to the city council any changes to this Plan. 2.66.030 Members. The Resource Preservation & Enhancement Committee shall be comprised of thirteen (13) members with preference to those who reside or work within the City of Palm Desert or Valley-wide residents who can offer specific expertise in a critical subject area addressed by the Committee. It is believed that a thirteen-member committee would bring broader representation of the community to review and make decisions on these increased measures toward sustainability. 2.66.040 Meetings. The Resource Preservation & Enhancement Committee may meet quarterly, up to bi-monthly, on a date, time, and place as set by Committee resolution or minute order. 2.66.050 Responsibilities. It shall be the responsibility of the Resource Preservation & Enhancement Committee to make recommendations to the city council with respect to matters concerning the City’s programs and targets in achieving identified actions in Environmental Sustainability Plan (“Plan”) and Greenhouse Gas Inventory. The Committee shall have the authority and responsibility to review staff reports and recommendations from City staff, offer comment and feedback, and help develop appropriate policies and actions to meet the Plan’s goals.” Section 11. Amendment to Municipal Code. Municipal Code Chapter 2.68 Cultural Arts Committee of Title 2 Administration and Personnel of the Palm Desert Municipal Code is hereby amended as follows: Item 1D-20 Ordinance No. 1390 Page 20 “Chapter 2.68 CULTURAL ARTS COMMITTEE 2.68.010 Established. The Cultural Arts Committee (“Committee”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Committee, except as otherwise required by state law. If there is any conflict or inconsistency between the provisions of this chapter and those in Chapter 2.34 of the code, the provisions of this chapter will control. 2.68.020 Purpose. The purpose of the Cultural Arts Committee is to guide the Art in Public Places Program, and beyond that specific program, to provide ideas to the city council for more expansive City-sponsored art opportunities. Art includes but is not limited to murals, sculpture, memorials, earthwork, community art, digital media, and performances and festivals. 2.68.030 Members. A.The Cultural Arts Committee shall be comprised of seven (7) members. In addition, there shall be two nonvoting liaison members, one each to be selected by their commission from the architectural review commission and the planning commission. B.Membership may be comprised of people recognized as having expertise in the visual arts, construction, or technical field necessary for acquisition, fabrication, site preparation, installation, or display of artwork. C.At all times the Committee shall strive to maintain a membership that includes at least one: 1.Professional Artist; 2.Architect; 3.Landscape Architect/ Designer; And may include but is not limited to: 4.Museum Professionals; 5.Art Educators; 6.Art Historians; 7.Art Conservators; 8. Designers; Item 1D-21 Ordinance No. 1390 Page 21 9.Development Industry; 10.Construction Trades; 11. Engineers; 12.Gallery Professionals. 2.68.040 Meetings. The Cultural Arts Committee may hold regular monthly meetings at a date, time, and place to be set by Committee resolution or minute order. 2.68.050 Responsibilities. The Cultural Arts Committee has the following responsibilities: A.Advocate for inclusion of culture and cultural policy in myriad aspects of the City and the lives of its citizens; B.Advise the City on issues relating to cultural policy for the arts; C.Recommend policies and procedures for the Art in Public Places Program; D.Recommend new public art projects; E.Position the art program within the City to work with other City departments to ensure art is incorporated into the initial planning of public and private projects as they pertain to the Art in Public Places percent for art fee requirements or City funded projects; F.Review and forward recommendations to the city council regarding public and private art projects which utilize Art in Public Places or City funds; G.Review and forward recommendations to the city council regarding City public art acquisitions which utilize Art in Public Places or City funds; H.Review and forward recommendations to the city council regarding donation of artworks to the City; I.Review and provide recommendations to the City Council related to proposals for art-oriented festivals and performances and assist with implementation of council-approved plans; I.Serve as stewards of the public art collection of the City; J.Serve as goodwill ambassadors of the Art in Public Places Program and City to the community at large. Item 1D-22 Ordinance No. 1390 Page 22 2.68.060 Geographical area of responsibility. The Cultural Arts Committee shall confine its objectives regarding art placement to the corporate limits of the community; however, it shall have no restraints on the areas where it may seek sources of art or financing.” Section 12. Addition to Municipal Code. Chapter 2.70 Homelessness Taskforce is hereby added to Title 2 Administration and Personnel of the Palm Desert Municipal Code as follows: “Chapter 2.70 HOMELESSNESS TASK FORCE 2.70.010 Established. A Homelessness Task Force (“Task Force”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Task Force, except as otherwise required by state law. If there is any conflict between the provisions of this chapter and those in Chapter 2.34 of this code, the provisions of this chapter will control. 2.70.020 Purpose. The purpose of the Homelessness Task Force is to review various services and coordinated efforts to address homelessness and, when necessary, advise the city council of the same. Additionally, the Task Force shall discuss business and community needs and effects due to the impacts of homelessness. 2.70.030 Members. The Homelessness Task Force shall be composed of seven (7) members including two city councilmembers appointed by the mayor, two members of the business community, two community members, and the chairperson of the Housing Commission. Business members may reside outside of Palm Desert; however, their businesses must be located in Palm Desert. One of the community members shall be a representative of the Public Safety Committee. 2.70.040 Meetings. The Homelessness Task Force may hold bi-monthly regular meetings at a date, time, and place as set by Task Force resolution or minute order.” Item 1D-23 Ordinance No. 1390 Page 23 Section 13. Amendment to Municipal Code. Palm Desert Municipal Code Title 3 Revenue and Finance, Chapter 3.40 Parking and Business Improvement Area, Section 3.40.070 Advisory board established—Duties is hereby amended as follows: “3.40.070 El Paseo Business Improvement Area Advisory Board. A.Established. There is established an El Paseo Business Improvement Area Advisory Board (“Board”). The provisions set forth in Chapter 2.34 of this code shall apply to this board, except as otherwise required by state law. If there is any conflict between the provisions of this chapter and those in Chapter 2.34 of this code, the provisions of this chapter will control. B.Purpose. The purpose and objectives of the El Paseo Parking and Business Improvement Area is to represent the interests of its members on El Paseo. These interests include, but are not limited to, advertising promotion, street beautification, parking, tourism and other activities promoting business in the area. The El Paseo Parking and Business Improvement Area was established to promote El Paseo as a world class, pedestrian friendly, upscale consumer oriented destination, offering quality and unique retail and service businesses. C.Members. The board shall consist of seven (7) members appointed by the city council. The terms of office of said members of the advisory board shall be for three year terms. Board terms shall be staggered so that approximately one-third of the terms expire each year and said term shall begin January 1st of each year. Appointments to the board shall be limited to all businesses (on a business license basis) with an address between 73-040 through 73-999 El Paseo and adjoining streets located 180 feet south of El Paseo and 154 feet north of El Paseo as defined in Section 3.40.010 of this Code. Members of the board must be a proprietor, partner, or corporate officer of a member business, excepting that members may be a person holding an executive management position of a member entity if such member entity’s headquarters are not located in the City of Palm Desert. No more than one individual from a business paying a single assessment may serve at the same time as a member of the board. D.Appointments. The city clerk shall forward all applications to the membership committee of the Board. The membership committee shall interview each applicant and report their findings to the Board. The Board shall vote on each applicant and by majority vote may recommend such person(s) to the city council to fill the vacant seat. E.Meetings. The Board may meet monthly on a date, time, and place as set by Board resolution or minute order. The regular meeting in May shall be designated as the Budget Planning and Annual Meeting of the Board. Item 1D-24 Ordinance No. 1390 Page 24 F.Removal. Any member who ceases to be a proprietor, partner, or corporate officer or a member business or any member who ceases to be in an executive management position in the case of a member entity whose headquarters are not located in the City of Palm Desert, shall automatically be removed as a member. G.Committees. Committees shall not have the authority of the Board in the management of the Association. The members of a committee shall be members of the Association and the Board shall appoint the members thereof. One member of each committee shall be elected chairperson by the members of the committee. Any members thereof may be removed by the Board whenever, in their judgment, the best interests of the Association shall be served. A member of the Board shall be an advisory member of all committees. Each member of a committee shall continue as such time as their successor is appointed, unless the committee is terminated sooner, or unless such member is removed from such committee, or unless such member shall cease to qualify as a member thereof. Section 14. Amendment to Municipal Code. Palm Desert Municipal Code Title 9 Public Peace, Morals, and Welfare, Chapter 9.50 Mobile Home Park Rent Review, Section 9.50.040 Rent review board is hereby amended as follows: “9.50.040 Rent review board. A.Established. A mobile home park rent review board (“Board”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Board, except as otherwise required by state law. If there is any conflict between the provisions of this chapter and those in Chapter 2.34 of this code, the provisions of this chapter will control. B.Members. The Board shall consist of three (3) regular members and two (2) alternate members appointed by the city council and serving at the pleasure of the city council. Alternates shall serve only to the extent necessary to form a quorum of two members. The secretary of the board shall determine whether the attendance of one or more alternates at a given meeting is necessary to ensure a quorum and notify them accordingly. C.Meetings. The Board may meet on an as needed basis on a date, time, and place as set by Board resolution or minute order. D. Disclosure. All candidates for appointment to the board shall disclose in a verified statement all present holdings and interests in real property, including interests in corporations, trusts or other entities owning real property within this jurisdiction as defined by California Government Code Section 82035. Such disclosure statement shall be filed with the city clerk and made available to the city council prior to appointment of members of the board. Disclosure of holdings required herein shall be in addition to any other disclosure required by state or local law for holders of public office. Item 1D-25 Ordinance No. 1390 Page 25 Section 15. Amendment to Municipal Code. Palm Desert Municipal Code Title 29 Cultural Resources, Chapter 29.30 Cultural Resources Preservation Committee, is hereby amended as follows: “Chapter 29.30 CULTURAL RESOURCES PRESERVATION COMMITTEE 29.30.010 Established. A Cultural Resources Preservation Committee (“Committee”) is hereby established for the City of Palm Desert (“City”). The provisions set forth in Chapter 2.34 of this code shall apply to this Committee, except as otherwise required by state law. If there is any conflict between the provisions of this chapter and those in Chapter 2.34, the provisions of this chapter will control. 29.30.020 Members. The Cultural Resources Preservation Committee shall be comprised of seven (7) community members and no less than four members are encouraged to be appointed from individuals that have knowledge in the fields or disciplines of architecture, history, architectural history, planning, pre-historic or historic archaeology, folklore, cultural anthropology, curator, conservation, and landscape architecture, or related disciplines, such as urban planning, American studies, American civilization, or cultural geography to the extent that such professionals are available in the community. 29.30.030 Meetings. The Cultural Resources Preservation Committee may hold monthly regular meetings at such day, time, and place as set by Committee resolution or minute order. 29.30.040 Responsibilities. A.The responsibilities of the administrator are in addition to those of the Cultural Resources Preservation Committee and are subject to Section 29.30.040(C) as follows: 1.Conduct or cause to be conducted a comprehensive survey to identify cultural resources; 2.Compile, maintain and publish an up-to-date inventory of all cultural resources with certified survey findings; 3.Compile, maintain and publish a register to include designated and register eligible cultural resources; 4.Approve, conditionally approve, or deny certificate of appropriateness applications pursuant to Chapter 29.60; Item 1D-26 Ordinance No. 1390 Page 26 5.Make recommendations to the city council regarding the adoption of cultural resources preservation incentives including, but not be limited to economic and tax incentives, conservation easements, preservation easements, acquisition or sale of property, development rights, fee adjustments and land use, zoning, development restrictions; 6.Make recommendations to the city council for enforcement and penalties concerning matters covered in this title; and 7.Ensure that cultural resources preservation is coordinated with other city departments and agencies. B.The responsibilities of the Committee are subject to Section 29.30.040(C) as follows: 1.Certify survey findings at an agendized public meeting or authorize the administrator to certify survey findings administratively through a specific findings process designated by the city council; 2.Adopt and make available designation applications and review procedures by which cultural resources may be designated as landmarks or historic districts; 3.Recommend to the city council the inclusion or deletion of landmarks and historic districts in the register pursuant to the regulations of this title; 4.Encourage and foster public participation in the cultural resources survey and designation processes; 5.Seek means and resources to appropriately identify landmarks and historic districts with permanent city approved plaques and signs; 6.Initiate and prepare nominations of eligible city-owned cultural resources to local, state and national registers; 7.Adopt standards including design guidelines to be used by the committee and the administrator in reviewing certificate of appropriateness applications; 8.Encourage cooperation between public and private cultural resources preservation organizations and groups including the historical society of Palm Desert, the California Historical Resources Information System Eastern Information Center at the University of California, Riverside, and other organizations in Coachella Valley communities; Item 1D-27 Ordinance No. 1390 Page 27 9.Make recommendations to the city council regarding the adoption of cultural resources preservation incentives including, but not be limited to economic and tax incentives, conservation easements, preservation easements, acquisition or sale of property, development rights, fee adjustments and land use, zoning, and development restrictions; 10.Review and make recommendations to city council on applications to participate in local cultural resources preservation incentives programs established to effectuate the purposes of this title; 11.Seek out information and advise city council on the use of various local, state, federal or private sources and mechanisms available to promote cultural resources preservation; 12.As part of the city’s CEQA review procedures if referred by city, identify and advise appropriate city departments and governmental entities of known cultural resources; assess and advise the city council whether any proposed project would have an adverse effect on the significance of such cultural resources; and recommend to the city council appropriate action in compliance with the city’s adopted CEQA procedures; 13.Evaluate and comment on proposals and environmental reviews that affect cultural resources in the city and are pending before public agencies other than the city of Palm Desert; 14.Prepare and adopt plans including design guidelines for the preservation of cultural resources; 15.Review and make recommendations on zoning and general plan amendments for the purpose of preserving cultural resources; 16.Develop and conduct public information, educational and interpretive programs pertaining to cultural resources preservation and provide for public participation in all aspects of the city’s cultural resources preservation program; 17.Assume whatever responsibilities and duties may be assigned to the committee by the city council under the certified local government provisions, of the National Historic Preservation Act of 1966 as amended; 18.Perform any other functions that may be designated by resolution or motion of the city council. C.Any designation or certified survey of property shall require written consent of the owner of the property.” Item 1D-28 Ordinance No. 1390 Page 28 Section 16. Rescind Existing Bylaws. Bylaws adopted prior to the effective date of this Ordinance are deemed rescinded in their entirety and replaced by the provisions established by this Ordinance and found in Title 2 of the Palm Desert Municipal Code. Section 17. Severability. If any section, subsection, clause or phrase of this Ordinance or any part thereof is for any reason held to be invalid, unconstitutional, or unenforceable by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of the Ordinance. The City Council declares that it would have passed each section, subsection, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause or phrase would be declared invalid, unconstitutional or unenforceable. Section 18. CEQA. The City Council hereby finds and determines that this Ordinance is exempt from CEQA pursuant to State CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that the Ordinance would not have the potential or possibility for causing a significant effect on the environment. Specifically, the proposed changes to the Municipal Code are primarily procedural and administrative in nature. Moreover, the changes are technical in nature and do not allow for specific development. In reviewing the Ordinance the City Council has exercised its independent judgment and has reviewed and considered the Ordinance in light of all testimony received, both oral and written. Therefore, based upon the entire administrative record, the City Council hereby determines that no further environmental review is required for the Ordinance. SECTION 19. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish a summary of this Ordinance in the Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effective thirty (30) days after its adoption. ADOPTED ON MARCH 9, 2023. ______________________ KATHLEEN KELLY MAYOR ATTEST: _____________________________ ANTHONY J. MEJIA CITY CLERK Item 1D-29 Ordinance No. 1390 Page 29 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1390 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on February 16, 2023, and adopted at a regular meeting of the City Council held on March 9, 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ______________________. ANTHONY J. MEJIA CITY CLERK Item 1D-30 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Niamh M. Ortega, Assistant City Clerk REQUEST: SECOND READING AND ADOPTION OF ORDINANCE NO. 1391 REVISING CHAPTER 2.68 OF THE PALM DESERT MUNICIPAL CODE RELATIVE TO THE CULTURAL ARTS COMMITTEE RECOMMENDATION: Waive the second reading of the ordinance text in its entirety and read by title only; and adopt Ordinance No. 1391. BACKGROUND/ANALYSIS: On February 16, 2023, the City Council introduced Ordinance No. 1391 for first reading. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30 days from adoption. FINANCIAL IMPACT: There is no direct financial impact associated with this action. REVIEWED BY: City Clerk: Anthony Mejia City Manager: Todd Hileman ATTACHMENTS: 1.Ordinance No. 1391 Item 1E-1 ORDINANCE NO. 1391 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 2.68 OF THE PALM DESERT MUNICIPAL CODE, CHANGING THE CULTURAL ARTS COMMITTEE BYLAWS TO ADD A MONETARY THRESHOLD FOR CITY COUNCIL APPROVAL The City Council of the City of Palm Desert, DOES HEREBY ORDAIN, as follows: Section 2.68 of the Code of the City of Palm Desert, California, is hereby amended to read as follows: 2.68.10 (C) Recommendation and Action. All review and recommendations utilizing Art in Public Places funding in an amount over $10,000 that is non-routine as determined by the City Manager shall be forwarded to the City Council for final approval. ADOPTED ON MARCH 9, 2023. ______________________ KATHLEEN KELLY MAYOR ATTEST: _____________________________ ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1391 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on February 16, 2023, and adopted at a regular meeting of the City Council held on March 9, 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ______________________. ANTHONY J. MEJIA CITY CLERK Item 1E-2 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Deborah Glickman, Management Analyst REQUEST: APPROVE ACCEPTANCE OF THE DONATION OF ASSESSOR PARCEL NUMBERS 628-030-009 (5.18 ACRES) AND 628-030-011 (4 ACRES) FROM DON SLAUGHTER TO THE CITY OF PALM DESERT RECOMMENDATION: 1. Approve acceptance of the donation of Assessor Parcel Numbers (APN) 628-030-009 (5.18 acres) and 628-030-011 (4 acres) to the City of Palm Desert from Don Slaughter. 2. Authorize the City Manager to sign the Donation Letter, subject to the satisfaction of the City Attorney. Commission Recommendation At its regularly scheduled February 7, 2023, meeting, the Parks and Recreation Commission unanimously recommended acceptance of the land donation. BACKGROUND/ANALYSIS: In September 2022, Don Slaughter contacted the City regarding two properties inherited by him and his three siblings. The properties are located west of Homme Adams Park in the City and have APNs 628-030-009 (5.18 acres) and 628-030-011 (4.0 acres). Mr. Slaughter conveyed that his family wishes to donate these parcels to the City to be conserved as a public park. City Staff contacted the City Attorney for counsel on potentially accepting the land donation and was advised that an environmental study be completed. The intent of the environmental study is to determine whether there are any environmental concerns related to the property. Staff commissioned a Phase I Environmental Site Assessment conducted by Earth Systems. The assessment revealed that the site has had some development in the past and has remnants of former structures, paved pads, an asphalt paved road, water valves, and a fire hydrant. The site consists primarily of mountainous desert terrain, characterized by a ridge that crosses much of the southern part of the site from west to east. There are no Recognized Environmental Conditions associated with the site. Mr. Slaughter was contacted to discuss the details of the property transfer and indicated that the family wishes to have signage at the entrance to the property signifying that it had been donated to the City in honor of his parents. Staff commissioned a sign company that specializes in sandstone engraving to create a mock-up of a potential sign design. Mr. Slaughter reviewed and approved the proposed sign which is intended to be approximately 3 feet by 2 feet. Item 1F-1 City of Palm Desert Donation of APNs 628-030-009 and 628-030-011 Page 2 of 2 FINANCIAL IMPACT: The anticipated financial impact associated with the acceptance of the property donation includes the fabrication and installation of the sandstone sign. The total cost for the sign is estimated to be under $3,000. Funds are available in accounts 1104611-4332501 and 1104611- 4331000. Future land management or maintenance may also incur some costs. These costs cannot be determined at this time but are anticipated to be minimal. REVIEWED BY: Department Director: Eric Ceja City Attorney: Robert Hargreaves Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman ATTACHMENTS: Attachment 1: Map of Parcels Attachment 2: Phase I Environmental Site Assessment Attachment 3: Sign Example Attachment 4: Donation Letter Item 1F-2 Item 1F-3 Item 1F-4 Item 1F-5 Item 1F-6 Item 1F-7 Item 1F-8 Item 1F-9 Item 1F-10 Item 1F-11 Item 1F-12 Item 1F-13 Item 1F-14 Item 1F-15 Item 1F-16 Item 1F-17 Item 1F-18 Item 1F-19 Item 1F-20 Item 1F-21 Item 1F-22 Item 1F-23 Item 1F-24 Item 1F-25 Item 1F-26 Item 1F-27 Item 1F-28 Item 1F-29 Item 1F-30 Item 1F-31 Item 1F-32 Item 1F-33 Item 1F-34 Item 1F-35 Item 1F-36 Item 1F-37 Item 1F-38 Item 1F-39 Item 1F-40 Item 1F-41 Item 1F-42 Item 1F-43 Item 1F-44 Item 1F-45 Item 1F-46 Item 1F-47 Item 1F-48 Item 1F-49 Item 1F-50 Item 1F-51 Item 1F-52 Item 1F-53 Item 1F-54 Item 1F-55 Item 1F-56 Item 1F-57 Item 1F-58 Item 1F-59 Item 1F-60 Item 1F-61 Item 1F-62 Item 1F-63 Item 1F-64 Item 1F-65 Item 1F-66 Item 1F-67 Item 1F-68 Item 1F-69 Item 1F-70 Item 1F-71 Item 1F-72 Item 1F-73 Item 1F-74 Item 1F-75 Item 1F-76 Item 1F-77 Item 1F-78 Item 1F-79 Item 1F-80 Item 1F-81 Item 1F-82 Item 1F-83 Item 1F-84 Item 1F-85 Item 1F-86 Item 1F-87 Item 1F-88 Item 1F-89 Item 1F-90 Item 1F-91 Item 1F-92 Item 1F-93 Item 1F-94 Item 1F-95 Item 1F-96 Item 1F-97 Item 1F-98 Item 1F-99 Item 1F-100 Item 1F-101 Item 1F-102 Item 1F-103 Mr. Slaughter Address 1 City, State Zip RE: Don Slaughter donation of Real Property with Assessor’s Parcel Numbers (APN) 628-030-009 and 628-030-011) Dear Mr. Slaughter On behalf of the City of Palm Desert (“City”), I would like to thank you for the conveyance of real property (APNs 628-030-009 and 628-030-011)) located in Riverside County, California., a description of the real property is attached as Exhibit A hereto. City acquired this real property as a donation with an escrow close date of XXXX xx, 2023. No goods or services were provided to Mr. Don Slaughter in exchange for a donation of 9.18 acres of real property (APN: 628-030-009 and 628-030-011) located in the City of Palm Desert, California. The City of Palm Desert shall use the donated land for open space to connect with the adjacent Cap Homme and Ralph Adams Park. The City will place signage on the property with the following acknowledgment: “The Warren and Mary Slaughter Park” The opening of the park will be marked with a ribbon-cutting ceremony. Please be aware that City does not represent the extent to which conveyances made to City are tax deductible. Accordingly, donors are responsible for consulting with their independent tax advisors regarding the tax deductibility of their conveyance to City. Thank you again for your generous conveyance. Sincerely, City of Palm Desert By L. Todd Hileman City Manager Item 1F-104 EXHIBIT A Description of Property THE LAND REFFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DECRIBED AS FOLLOWS: PARCEL 1: LOT 35 OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL MAP OF SAID LAND RECEIVED AT THE DISTRICT LAND OFFICE MAY 31, 1950. EXCEPTING THEREFROM SUCH OIL, GAS AND ALL OTHE RMINERAL DEPOSITS AS WERE REQUIRED TO BE RESERVED TO THE UNITED STATES BY THE ACT OF JUNE 1, 1938 (52 STAT, 609) AS AMENDED, AND AS RESERVED IN THE PATENT TO SAID LAND RECORDED SEPTEMBE 12, 1952 IN BOOK 1399, PAGE 422, OF OFFICIAL RECORDS. APN: 628-030-011 PARCEL 2 GOVERNMENT LOT 34, BEING A PORTION OF THE NORTH HALF OF THE SOUTHWEST QUARTER OF SECTION 30, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF PALMDESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. APN: 628-030-009 Item 1F-105 [This page has intentionally been left blank.] CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Deborah Glickman, Management Analyst REQUEST: ADOPT A RESOLUTION DECLARING CITY OF PALM DESERT OWNED PROPERTIES WITH ASSESSOR’S PARCEL NUMBERS 627-102-017 AND 627-102-025 SURPLUS LAND AND AUTHORIZING STAFF TO RELEASE A NOTICE OF AVAILABILITY FOR THE SALE OF THE PROPERTIES RECOMMENDATION: 1. Adopt a Resolution declaring City of Palm Desert properties with Assessor’s Parcel Numbers 627-102-017 and 627-102-025 surplus land for purposes of the Surplus Land Act. 2.Authorize staff to release a Notice of Availability for the sale of the properties. BACKGROUND/ANALYSIS: At its meeting on May 8, 2014, the City Council adopted Resolution 2014-39 approving its commitment to utilize the then Successor Agency the Redevelopment Agency (SARDA) owned parcels with Assessor’s Parcel Numbers (APN) 627-102-017 and 627-102-019 (which later became APN 627-102-025) for governmental purposes to facilitate the future expansion of the then named Joslyn Senior Center (now named Joslyn Center). After the approval of the Resolution, the ownership of the parcels was transferred from SARDA to the City of Palm Desert. Additionally, at its meeting on December 15, 2022, the City Council approved a “Central Inventory” of City and SARDA-owned properties. The inventory was developed to comply with the Surplus Land Act (SLA), which requires that an inventory must be approved and submitted annually to the State of California Department of Housing and Community Development (HCD) pursuant to Government Code Section 54230(a)(2). After the approval of the Central Inventory, at its meeting on January 26, 2023, the City Council approved prioritizing the sale of parcels APNs 627-102-017 and 627-102-025 adjacent to the Joslyn Center. In order to dispose of these properties, unless any of the properties are exempt surplus land, the City must first go through the formal process of declaring the properties surplus, consistent with the Surplus Land Act (SLA). The proposed action would satisfy this requirement with respect to APNs 627-102-017 and 627-102-025. Once the attached Resolution is approved, a notice of Availability (NOA) will be sent to designated entities who will have sixty (60) days to notify the City of their interest in acquiring the properties. If any interest is expressed in accordance with the requirements of the SLA, the City is required to engage in good faith negotiations for a period of not less than ninety (90) days in an attempt to reach a sales price and terms. Following these steps, the City must provide the California Department of Housing and Community Development (HCD) with a notification detailing the NOA/negotiation process. HCD will have thirty (30) days Item 1G-1 City of Palm Desert Resolution for Disposition of APNs 627-102-017 and 627-102-025 Page 2 of 3 to review this process for compliance with the SLA. At the end of the thirty (30) day period, the City may sell the properties. If the City does not agree to a price and terms with any of the designated entities, or if no designated entity responded to the NOA, the City may dispose of the properties outside of the SLA. The SLA process as noted above does not authorize the disposition of the properties. Once the process is complete, staff will return to the City Council for approval to sell. If there is no interest in the properties, or if good faith negotiations are not successful, the City will have satisfied its SLA requirements, subject to review by HCD, and will be able to sell the properties on the open market. Project Description: Staff is seeking approval from the City Council to initiate the disposition process through an NOA and pursuant to the SLA for the City-owned properties adjacent to the Joslyn Center. As set forth below, staff is also seeking approval of the attached Resolution. A map of the properties is attached to this staff report. The details of the properties to be included in the NOA include the following: APN Size (acres) Zoning Property Description General Plan Designation Minimum Sales Price 627-102-017 0.65 R-2 Vacant Land Conventional Suburban Neighborhood Fair Market Value (FMV) 627-102-025 0.32 R-2 Vacant Land Conventional Suburban Neighborhood Fair Market Value (FMV) To start the sales process for these parcels, the City Council is required by the SLA to declare by Resolution that the properties are not necessary for the City’s use and is surplus land. The Resolution contains these declarations, and once it is approved, staff will circulate the NOA to entities specified in the SLA. Additionally, the NOA will be posted on the City’s website. The properties will be offered at not less than their fair market value. Proposers will be required to adhere to the requirements of City Council Resolution 2014-39, which indicates the City of Palm Desert’s intent and commitment to facilitate the future expansion of the regional senior center. Proceeds from the sale of the properties will be disbursed as per SLA requirements. Proceeds retained by the City, if any, with Council direction may be placed in a reserve fund for Economic Development incentives. These properties have been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”). City staff has determined that the designation of these properties as surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project Item 1G-2 City of Palm Desert Resolution for Disposition of APNs 627-102-017 and 627-102-025 Page 3 of 3 as defined by the CEQA Guidelines Section 15378. When the properties are sold to a purchaser and that purchaser proposes a use for the properties that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA. FINANCIAL IMPACT: The sale of the properties will require professional real estate transaction services including a title review, appraisal, and escrow. Funds are available for these purposes and are allocated to the Economic Development Department’s professional services fund. REVIEWED BY: Department Director: Eric Ceja City Attorney: Robert Hargreaves Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman ATTACHMENTS: 1. Resolution 2.Map of properties 3.Resolution 2014-39 Item 1G-3 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING PURSUANT TO GOVERNMENT CODE SECTION 54221 THAT CERTAIN REAL PROPERTIES OWNED BY THE CITY WITH ASSESSOR’S PARCEL NUMBERS 627-102-017 AND APN 627-102-025 ARE SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE, FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AND TAKING RELATED ACTIONS WHEREAS, the City of Palm Desert (“City”) is the owner in fee simple of certain real properties with Assessor’s Parcel Numbers 627-102-017 and 627-102-025 in the City of Palm Desert (“Properties”); and WHEREAS, under the Surplus Land Act, Government Code Sections 54220- 54234 (“Act”), surplus land is land owned in fee simple by the City for which the City Council takes formal action in a regular public meeting declaring the land is surplus land and not necessary for the City’s use. The land must be declared either surplus or exempt surplus land; and WHEREAS, under the Act, land is necessary for the City’s use if the land is being used, or is planned to be used pursuant to a written plan adopted by the City Council for City work or operations; and WHEREAS, the Properties, which are improved with an unoccupied single-family home, are not being used for City work or operations and City staff has evaluated the Properties for their potential to be used for City work or operations; and WHEREAS, City staff has determined that the Properties are not suitable for the City’s use; and WHEREAS, the City Council desires to declare that the Properties are surplus land and not necessary for the City’s use; and WHEREAS, the Act requires that before the City Council disposes of the Properties or engages in negotiations to dispose of the Properties, the City shall send a written Notice of Availability of the Properties to certain designated entities in accordance with the Act. NOW, THEREFORE, BE IT RESOLVED by the City Council of the CIty of Palm Desert, California, as follows: SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution. Item 1G-4 -2- SECTION 2. The City Council hereby declares that the Properties are surplus land and not necessary for the City’s use within the meaning of the Act. The basis for this declaration is that due to the size, location, and development on the Properties, the site is not feasible for the City’s use. SECTION 3. The City Clerk is hereby directed to send a Notice of Availability of the Properties for sale, to the entities designated in Government Code Section 54222 (“Designated Entities”) by electronic mail or by certified mail. SECTION 4. This Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”). City staff has determined that the designation of the Properties as surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined by the CEQA Guidelines Section 15378. Adoption of the Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Properties are sold to a purchaser and that purchaser proposes a use for the Properties that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA. SECTION 5. The City Clerk is directed to file a Notice of Exemption pursuant to CEQA Guidelines Section 15062. SECTION 6. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of the Resolution, and any such actions previously taken are hereby ratified and confirmed. Such actions include negotiating in good faith in accordance with the requirements of the Act with any of the Designated Entities that submit a written notice of interest to purchase the Properties in compliance with the Act. ADOPTED ON MARCH 9, 2023. __________________________ KATHLEEN KELLY MAYOR ATTEST: _____________________________ ANTHONY J. MEJIA CITY CLERK Item 1G-5 -3- I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that the Resolution No. 2023-___ is a full, true, and correct copy, and was duly adopted at the regular meeting of the City Council of the City of Palm Desert on March 9, 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Palm Desert, California, on _____________________________. __________________________ ANTHONY J. MEJIA CITY CLERK Item 1G-6 Item 1G-7 RESOLUTION NO. 2014-39 A RESOLUTION OF THE CITY OF PALM DESERT CITY COUNCIL APPROVING ITS INTENT AND COMMITMENT TO UTILIZE THE SUCCESSOR AGENCY PARCELS KNOWN APN(S) 627-102-017 AND 627-102-019 FOR THE GOVERNMENTAL PURPOSE TO FACILITATE THE FUTURE EXPANSION OF THE JOSLYN SENIOR CENTER RECITALS: WHEREAS, the on June 10, 2010, the City and the former Palm Desert Redevelopment Agency held a Joint Study Session where the Joslyn Senior Center's master plan and future expansion were discussed on APN(s) 627-102-017 AND 627- 102-019; and WHEREAS, it is the City of Palm Desert's intent and commitment to facilitate the future expansion of the regional senior center which provides services to three municipalities under the Cove Communities Services Commission, upon approval of the Successor Agency to the Palm Desert Redevelopment Agency's (Successor Agency) Long Range Property Management Plan (Management Plan) by the State Department of Finance; and WHEREAS, it is the City of Palm Desert's intent to accept the transfer of APN(s) 627-102-017 AND 627-102-019 from the Successor Agency for Governmental Purpose in order to facilitate the implementation of the future expansion master plan for the Joslyn Senior Center after approval the Management Plan by the State Department of Finance; and NOW, THEREFORE BE IT RESOLVED, THAT THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: The City of Palm Desert identifies its intent and commitment to utilize APN(s) 627-102- 017 AND 627-102-019 also referred to as the Joslyn Senior Center Expansion parcels 2(a), 2(b) on the Management Plan, to facilitate the future expansion of the Joslyn Senior Center upon approval of the Management Plan by the State Department of Finance. Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. The staff of the City/Successor Agency is hereby directed to transmit to DOF this Resolution. Such notice to DOF shall be provided by electronic means and in a manner of DOF's choosing. 1 Item 1G-8 RESOLUTION NO. 2014-39 PASSED, APPROVED AND ADOPTED this 8TH day of AYES: BENSON, HARNIR, SPIEGEL, WEBER, and TANNER NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: 410 glit,...C_O% °a' R HELLE D. K ASS , CITY CLERK CITY OF PALM DESERT, CALIFORNIA 2- MAY VAN G. TANNER; MAYOR 2014. Item 1G-9 [This page has intentionally been left blank.] CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: ADOPT A RESOLUTION ESTABLISHING THE 2023 CITY COUNCIL GOALS RECOMMENDATION: 1.Adopt a Resolution establishing the City Council Goals for the 2023 calendar year. 2.Appoint an Ad Hoc Council Subcommittee to work with staff regarding development of and opportunities to enhance City-sponsored events; and marketing of existing and new City-sponsored events. BACKGROUND/ANALYSIS: On February 15, 2023, the City Council held a goal setting session to discuss goals for calendar year 2023. At this meeting, City staff summarized the status of the existing goals and next steps, followed by each Councilmember presenting their candidate goals for 2023. Following discussion, the City Council recognized most of the 2022 Goals were multi-year projects and should be continued as goals for another year, except for “Annexation North of I-10.” City Manager Hileman explained due to the Imperial Irrigation District (“IID”) limitations to supply electrical power to north Palm Desert and areas north of I-10, it is recommended staff continue to work with IID and stakeholders to identify solutions to supply electrical power and to postpone discussions regarding annexation until resolved. Below is a summary of the 2023 City Council Goals: 1 Cal State University Palm Desert Campus Continuation Advocate for additional investments and the creation of a Cal State University Palm Desert Campus or other education related uses on the land donated by the City for this purpose. 2 Economic Development Projects -Desert Willow Strategy New Develop a strategy for the disposition and development of the remaining Desert Willow properties. -Business Recruitment New Develop a plan to identify and recruit retail, entertainment, and other business that will contribute to, and complement, Palm Deserts existing unique shopping and entertainment offerings and serve existing and planned residential neighborhoods. -North Sphere Planning Continuation Analyze the recommendations of the CBRE, Economic Development Strategy Review, study for potential changes in land use patterns in the North Sphere. Item 1H-1 City of Palm Desert Resolution – City Council Goals for 2023 Page 2 of 3 3 Mall Redevelopment Continuation Conduct market and land use planning studies to evaluate options for adaptive re- use of the Mall resulting in a Mall Master Plan and collaborate with stakeholders towards implementation of desired plans. 4 Broadband Master Plan Continuation Develop a Broadband Master Plan that assesses whether and how the City can enhance connectivity for businesses and residents, while working with, and factoring in the work accomplished by federal, state, and regional resources. 5 Environmental Initiatives Continuation Implementation of the 5-year plan of Environmental Initiatives including the following: environmentally friendly landscaping, green building materials, solar, alternative fuel vehicles for the City fleet, water and energy conservation, and recycling. Work with the Resources Preservation and Enhancement Committee to implement initiatives. 6 North Sphere Parks Continuation Gather community input, design, and build a community and regional park in North Palm Desert. 7 Public Safety Improvements Continuation Explore new technology, review budgets, and gain efficiencies for improved public safety services. Conduct a review of current law enforcement contract and fire services. 8 Active Transportation Projects Continuation Analyze relevant studies to develop a 5-year Active Transportation Project plan that includes opportunities to enhance CV Link, PD Link/bike lanes, and incorporate these projects into the 5-year CIP budget. In addition, staff identified the below issues as additional priorities requiring research. City staff will facilitate the research and report back to the City Council at future meetings. a)Ocotillo/Tumbleweed Lot: City staff will return to City Council with recommendation(s) regarding options explored. b)Family-Based Activities: City staff will vet ideas, discuss potential locations and vendors, and report back to the City Council. c)Event Marketing/Awareness: Create an Ad Hoc Council Subcommittee to work with City staff regarding development of and opportunities to enhance City-sponsored events; and marketing of existing and new City-sponsored events. d)General Plan Update Options: City staff will evaluate options to allow greater local control over development projects and report back to City Council. e)Homeless Services: The City Council agreed to allow sufficient time for the newly hired Social Services Coordinator to evaluate existing homeless resources and to determine if a Social Work Action Group (“SWAG”) type resource would benefit the City. Item 1H-2 City of Palm Desert Resolution – City Council Goals for 2023 Page 3 of 3 FINANCIAL IMPACT: There is no fiscal impact associated with adopting the proposed resolution, however, the fiscal impact of implementing these goals and priorities will be incorporated into the Fiscal Year 2023-24 Financial Plan. REVIEWED BY: City Clerk: Anthony J. Mejia Finance Director: Veronica Chavez Assistant City Manager Chris Escobedo City Manager: Todd Hileman ATTACHMENTS: 1.Resolution & Exhibit A 2.Goal Setting Session PowerPoint Item 1H-3 RESOLUTION NO. _____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING CITY COUNCIL GOALS AND PRIORITIES FOR THE 2023 CALENDAR YEAR WHEREAS, on February 15, 2023, the City Council convened in a Special Goal Setting Study Session to review the status of the 2022 City Council Goals and Priorities and to establish Goals and Priorities for the 2023 calendar year. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the 2023 City Council Goals and Priorities are hereby approved and adopted as shown in Exhibit A attached hereto and incorporated herein. PASSED, APPROVED AND ADOPTED BY THE PALM DESERT CITY COUNCIL THIS ____ DAY OF ________, 2023. Kathleen Kelly Mayor ATTEST: Anthony J. Mejia City Clerk I, ANTHONY J. MEJIA, City Clerk of the City of Palm Desert, hereby certify that Resolution No. _______is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on __________, 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, this _____ day of __________, _________. Anthony J. Mejia, MMC City Clerk Item 1H-4 Exhibit A City of Palm Desert 2023 City Council Goals Goals Description Lead Team Committees/ Subcommittees 1 Cal State University Palm Desert Campus Advocate for investment and the creation of a Cal State University Palm Desert Campus or other education related uses on the land donated by the City for this purpose. Economic Development City Manager’s Office CV Priority One 2 Economic Development Projects Desert Willow Strategy Develop a strategy for the disposition and development of the remaining Desert Willow properties. Economic Development Development Services Economic Development Subcommittee Business Recruitment Develop a plan to identify and recruit retail, entertainment, and other business that will contribute to, and complement, Palm Deserts existing unique shopping and entertainment offerings and serve existing and planned residential neighborhoods. Economic Development North Sphere Planning Analyze the recommendations of the CBRE, Economic Development Strategy Review, study for potential changes in land use patterns in the North Sphere. Economic Development Development Services 3 Mall Redevelopment Conduct market and land use planning studies to evaluate options for adaptive re-use of the Mall resulting in a Mall Master Plan and collaborate with stakeholders towards implementation of desired plans. Economic Development City Manager’s Office Economic Development Subcommittee 4 Broadband Master Plan Develop a Broadband Master Plan that assesses whether and how the City can enhance connectivity for businesses and residents, while working with, and factoring in the work accomplished by federal, state, and regional resources. Economic Development Public Works Economic Development Subcommittee 5 Environmental Initiatives Implementation of the 5-year plan of Environmental Initiatives including the following: environmentally friendly landscaping, green building materials, solar, alternative fuel vehicles for the City fleet, water and energy conservation, and recycling. Work with the Resources Preservation and Enhancement Committee to implement initiatives. Economic Development Public Works Resource Preservation & Enhancement Committee (RPEC) 6 North Sphere Parks Gather community input, design, and build a community and regional park in North Palm Desert Public Works Parks & Recreation Committee 7 Public Safety Improvements Explore new technology, review budgets, and gain efficiencies for improved public safety services. Conduct a review of current law enforcement contract and fire services. City Manager’s Office Development Services Public Safety Committee 8 Active Transportation Projects (ATP) Analyze relevant studies to develop a 5-year Active Transportation Project plan that includes opportunities to Public Works ATP Subcommittee Item 1H-5 Exhibit A enhance CV Link, PD Link/bike lanes, and incorporate these projects into the 5-year CIP budget. Item 1H-6 GOAL SETTING SESSION Item 1H-7 WHY ARE WE HERE? Item 1H-8 RECAP 2022 –CSU Palm Desert Campus Accomplishments • • • Next Steps • • Item 1H-9 RECAP 2022 –Westfield Mall Redevelopment Accomplishments • • • • Next Steps • • • • • • Item 1H-10 RECAP 2022 –Annexation North of I-10 Accomplishments • • • Next Steps • • • • Item 1H-11 RECAP 2022 -Broadband Master Plan Accomplishments • • • • • • Next Steps • • Item 1H-12 RECAP 2022 –Environmental Initiatives Accomplishments • • Next Steps • • • Item 1H-13 RECAP 2022 –North Sphere Planning/ North Sphere Park Accomplishments • • • • Next Steps • • • • • Item 1H-14 RECAP 2022 –Public Safety Improvements Accomplishments • • • Next Steps • • • Item 1H-15 RECAP 2022 –Active Transportation Projects Haystack Road Traffic Calming Phase 1 •Adds three all-way stops with crosswalks at Alamo, Chia, and Moon •Project construction 95% complete Haystack Road / Highway 74 Intersection Modifications •Adds crosswalks and bike lane detection to intersection •Project construction awarded; completion Q2 2023 Monterey Avenue / Fred Waring Drive Intersection Modifications •Adds right turn lane and improves pedestrian accommodation •Project construction awarded; completion Q2 2023 CVAG CV Sync Phase 1 •Updates signal timing for bikes/pedestrians at 19 intersections on Washington Street and Highway 111 •Project construction 95% complete 2022 Slurry Seal Program •Updates 8.7 miles of Class 2 bike lane markings •Project construction completed Cook Street Resurfacing Project •Updates 2.25 miles of Class 2 bike lanes from Merle to Frank Sinatra •Project construction 99% complete PD Link Phase I •8.6 miles of new Class 3 bikeways •Project construction 75% complete CONSTRUCTION Item 1H-16 RECAP 2022 –Active Transportation Projects Traffic Operations & Capacity Improvements •Update 10 signalized intersections •Design 90% complete; construction bidding Q2 2023 Roadway Safety Improvements •Update crosswalks at 13 intersections & update pedestrian signals at 67 intersections (State grant funded) •Design 80% complete; construction bidding Q3 2023 PD Link Phase 2 •6.7 miles of new and upgraded bikeways •Design 80% complete; construction bidding Q2 2023 CV Link Hovley Connector •Adds 0.8 miles of new Class I bikeways •Project on hold and being revised by CVAG Haystack Road Traffic Calming Improvements Phase 2 •Adds 1.3 miles of new Class IV bikeways •Design 80% complete; construction bidding Q2 2023 Walk n Roll PD •Adds and updates 4.75 miles of bikeways and sidewalks •Phase 1 construction bidding Q2 2023 CV Link Enhancements •Adds safety and wayfinding enhancements to CV Link •Design 80% complete; construction bidding Q2 2023 Safe Routes to Schools (SRTS)•USDOT notified City in February 2023 that the City will receive a $720,000 Safe Streets for All (SS4A) grant to develop an SRTS Plan (FY23/24) DESIGN Item 1H-17 Your Goals for 2023 Item 1H-18 Councilmember Harnik Item 1H-19 Councilmember Nestande Item 1H-20 Councilmember Trubee Item 1H-21 Mayor Pro Tem Quintanilla Item 1H-22 Mayor Pro Tem Quintanilla (cont.) Item 1H-23 Mayor Kelly Item 1H-24 What does success look like? Item 1H-25 CSU Palm Desert Campus Annexation North of I-10 Mall Redevelopment Broadband Master Plan North Sphere Planning/ North Sphere Park Environmental Initiatives Is there still a consensus for the continuation of last years goals? Public Safety Improvements Active Transportation Projects Item 1H-26 2023 Goals Summary Council Goal Research Notes 1 CSU Palm Desert Campus (Continuation)✓ 2 Economic Development Projects ✓✓Consultants & Recommendation -Desert Willow Strategy (New) -Business Recruitment (New) -North Sphere Planning (Continuation) 3 Mall Redevelopment (Continuation)✓ 4 Broadband Master Plan (Continuation)✓ 5 Environmental Initiatives (Continuation)✓ 6 North Sphere Park (Continuation)✓ 7 Public Safety Improvements (Continuation)✓ 8 Active Transportation Projects (Continuation)✓ A Ocotillo/Tumbleweed Lot (New)✓Recommendation re options explored B Family-Based Activities (New)✓Vet ideas, discuss possible locations & vendors C Event Marketing/Awareness (New)✓Ad Hoc Council Subcommittee: 50th Anniversary & New Ideas D General Plan Update Options (New)✓Recommendation & Next Steps E Homeless Services (New)✓Social Work Action Group (SWAG) Type Resource Item 1H-27 Discussion Item 1H-28 Page 1 of 2 CITY OF PALM DESERT/SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY/HOUSING AUTHORITY JOINT CONSIDERATION STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Liberty Urban, CPA, Deputy Director of Finance REQUEST: RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2022 RECOMMENDATION: Receive and file the audited Annual Comprehensive Financial Report (ACFR) for the City of Palm Desert for the fiscal year ended June 30, 2022. BACKGROUND/ANALYSIS: Lance, Soll & Lunghard, LLP performed and completed the annual independent audit for the fiscal year ended June 30, 2022, for the City of Palm Desert, which includes the Successor Agency to the Palm Desert Redevelopment Agency, and Palm Desert Housing Authority, in accordance with generally accepted auditing standards. In the auditor’s opinion, the basic financial statements present fairly, in all material respects, the financial position of the City of Palm Desert as of June 30, 2022, and the results of its operations and the cash flows of its proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. In conducting their audit, the auditors test the City’s internal controls. Attached is the Report on Internal Controls over Financial Reporting and on compliance and other matters based on an audit of Financial Statements performed in accordance with Government Auditing Standards. The ACFR 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 annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, as it has for the past 25 years. Strategic Plan: Not applicable Commission Recommendation: The Finance Committee will receive the Annual Comprehensive Financial Report (ACFR) at their next scheduled meeting on March 28, 2023. Item 1I-1 City of Palm Desert Receive and file ACFR for fiscal year ended June 30, 2022 Page 2 of 2 FINANCIAL IMPACT: There is no fiscal impact associated with this action. REVIEWED BY: Department Director: Veronica Chavez Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman ATTACHMENTS: 1.City of Palm Desert audited financial report for fiscal year ended June 30, 2022 (Annual Comprehensive Financial Report) 2.Auditor’s letter to City Council 3.Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4.Appropriations Limit Worksheet Item 1I-2 Item 1I-3   $118$/&2035(+(16,9(),1$1&,$/5(3257 RIWKH &,7<2)3$/0'(6(57&$/,)251,$  )RUWKH)LVFDO<HDUHQGHG -XQH Prepared by the Finance Department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tem 1I-4 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN Item 1I-5 &,7<2)3$/0'(6(57&$/,)251,$  $118$/&2035(+(16,9(),1$1&,$/5(3257  )257+(),6&$/<($5(1'('-81(  7$%/(2)&217(176 3DJH 1XPEHU ,1752'8&725<6(&7,21  /HWWHURI7UDQVPLWWDOL *)2$&HUWLILFDWHRI$FKLHYHPHQWIRU([FHOOHQFHLQ)LQDQFLDO5HSRUWLQJY /LVWRI3ULQFLSDO2IILFLDOVYL 2UJDQL]DWLRQDO&KDUWYLL  ),1$1&,$/6(&7,21  ,1'(3(1'(17$8',7256¶5(3257  0$1$*(0(17¶6',6&866,21$1'$1$/<6,6  %$6,&),1$1&,$/67$7(0(176  6WDWHPHQWRI1HW3RVLWLRQ  6WDWHPHQWRI$FWLYLWLHV  %DODQFH6KHHW±*RYHUQPHQWDO)XQGV  5HFRQFLOLDWLRQRIWKH%DODQFH6KHHWRI*RYHUQPHQWDO)XQGV WRWKH6WDWHPHQWRI1HW3RVLWLRQ  6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ )XQG%DODQFHV±*RYHUQPHQWDO)XQGV  5HFRQFLOLDWLRQRIWKH6WDWHPHQWRI5HYHQXHV([SHQGLWXUHV DQG&KDQJHVLQ)XQG%DODQFHVRI*RYHUQPHQWDO)XQGVWR WKH6WDWHPHQWRI$FWLYLWLHV  6WDWHPHQWRI1HW3RVLWLRQ±3URSULHWDU\)XQGV  6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHVLQ)XQG 1HW3RVLWLRQ±3URSULHWDU\)XQGV  6WDWHPHQWRI&DVK)ORZV±3URSULHWDU\)XQGV  6WDWHPHQWRI)LGXFLDU\1HW3RVLWLRQ±)LGXFLDU\)XQGV  6WDWHPHQWRI&KDQJHVLQ)LGXFLDU\1HW3RVLWLRQ±)LGXFLDU\)XQGV   1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV Item 1I-6 &,7<2)3$/0'(6(57&$/,)251,$  $118$/&2035(+(16,9(),1$1&,$/5(3257  )257+(),6&$/<($5(1'('-81(  7$%/(2)&217(176 3DJH 1XPEHU 5(48,5('6833/(0(17$5<,1)250$7,21  0LVFHOODQHRXV3ODQ±$JHQW0XOWLSOH(PSOR\HU6FKHGXOHRI&KDQJHV LQ1HW3HQVLRQ/LDELOLW\DQG5HODWHG5DWLRV  0LVFHOODQHRXV3ODQ$JHQW0XOWLSOH±(PSOR\HU6FKHGXOHRI3ODQ&RQWULEXWLRQV  6FKHGXOHRI&KDQJHVLQWKH1HW23(%/LDELOLW\ $VVHW DQG5HODWHG5DWLRV  6FKHGXOHRI3ODQ&RQWULEXWLRQV±23(%    %XGJHWDU\&RPSDULVRQ6FKHGXOHE\'HSDUWPHQW±*HQHUDO)XQG  %XGJHWDU\&RPSDULVRQ6FKHGXOH±0HDVXUH$  %XGJHWDU\&RPSDULVRQ6FKHGXOH±3URS$)LUH7D[  %XGJHWDU\&RPSDULVRQ6FKHGXOH±+RXVLQJ$VVHW)XQG  %XGJHWDU\&RPSDULVRQ6FKHGXOH±+RXVLQJ$XWKRULW\  1RWHVWR5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQ  6833/(0(17$5<6&+('8/(6  &RPELQLQJ%DODQFH6KHHW±2WKHU*RYHUQPHQWDO)XQGV  &RPELQLQJ6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ )XQG%DODQFHV±2WKHU*RYHUQPHQWDO)XQGV  2WKHU*RYHUQPHQWDO)XQGV±6SHFLDO5HYHQXH)XQGV  &RPELQLQJ%DODQFH6KHHW±2WKHU6SHFLDO5HYHQXH)XQGV  &RPELQLQJ6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ )XQG%DODQFHV±2WKHU6SHFLDO5HYHQXH)XQGV  %XGJHWDU\&RPSDULVRQ6FKHGXOHV±6SHFLDO5HYHQXH)XQGV 7UDIILF6DIHW\ *DV7D[ +RXVLQJ0LWLJDWLRQ)HHV &RPPXQLW\'HYHORSPHQW%ORFN*UDQW &KLOG&DUH3URJUDP 3XEOLF6DIHW\3ROLFH*UDQWV 1HZ&RQVWUXFWLRQ7D[ 3ODQQHG'UDLQDJH 3DUNVDQG5HFUHDWLRQDO)DFLOLWLHV 7UDIILF6LJQDOV Item 1I-7  &,7<2)3$/0'(6(57&$/,)251,$  $118$/&2035(+(16,9(),1$1&,$/5(3257  )257+(),6&$/<($5(1'('-81(  7$%/(2)&217(176 3DJH 1XPEHU  )LUH)DFLOLWLHV5HVWRUDWLRQ 5HF\FOLQJ (QHUJ\,QGHSHQGHQFH/RDQ $LU4XDOLW\0DQDJHPHQW $TXDWLF&HQWHU &DQQDELV&RPSOLDQFH (O3DVHR$VVHVVPHQW'LVWULFW /DQGVFDSHDQG/LJKWLQJ'LVWULFWV1RV $IIRUGDEOH+RXVLQJ)XQG  2WKHU*RYHUQPHQWDO)XQGV±&DSLWDO3URMHFWV  &RPELQLQJ%DODQFH6KHHW±2WKHU&DSLWDO3URMHFWV)XQGV  &RPELQLQJ6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ  )XQG%DODQFHV±2WKHU&DSLWDO3URMHFWV)XQGV  %XGJHWDU\&RPSDULVRQ6FKHGXOHV±&DSLWDO3URMHFW)XQGV &DSLWDO3URSHUWLHV &DSLWDO3URMHFWV5HVHUYH 'UDLQDJH)DFLOLWLHV (FRQRPLF'HYHORSPHQW 3DUNVDQG5HFUHDWLRQDO)DFLOLWLHV $UWLQ3XEOLF3ODFHV 6LJQDOL]DWLRQ &DSLWDO*ROI %XLOGLQJV  2WKHU*RYHUQPHQWDO)XQGV±'HEW6HUYLFH)XQGV  %DODQFH6KHHW±2WKHU'HEW6HUYLFH)XQG  6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ )XQG%DODQFHV±2WKHU'HEW6HUYLFH)XQG  %XGJHWDU\&RPSDULVRQ6FKHGXOH±'HEW6HUYLFH)XQG &LW\+LJKODQG8QGHUJURXQGLQJ  ,QWHUQDO6HUYLFH)XQGV  &RPELQLQJ6WDWHPHQWRI1HW3RVLWLRQ±,QWHUQDO6HUYLFH)XQGV  &RPELQLQJ6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHV ,Q)XQG1HW3RVLWLRQ±,QWHUQDO6HUYLFH)XQG  &RPELQLQJ6WDWHPHQWRI&DVK)ORZV±,QWHUQDO6HUYLFH)XQGV Item 1I-8  &,7<2)3$/0'(6(57&$/,)251,$  $118$/&2035(+(16,9(),1$1&,$/5(3257  )257+(),6&$/<($5(1'('-81(  7$%/(2)&217(176 3DJH 1XPEHU  &XVWRGLDO)XQGV  &RPELQLQJ6WDWHPHQWRI1HW3RVLWLRQ±$OO&XVWRGLDO)XQGV  &RPELQLQJ6WDWHPHQWRI&KDQJHVLQ)LGXFLDU\1HW3RVLWLRQ±$OO&XVWRGLDO)XQGV  67$7,67,&$/6(&7,21  'HVFULSWLRQRI6WDWLVWLFDO6HFWLRQ  )LQDQFLDO7UHQGV 1HW3RVLWLRQE\&RPSRQHQW &KDQJHVLQ1HW3RVLWLRQ )XQG%DODQFHVRI*RYHUQPHQWDO)XQGV &KDQJHVLQ)XQG%DODQFHVRI*RYHUQPHQWDO)XQGV *UDSKV±&KDQJHVLQ)XQG%DODQFHVRI*RYHUQPHQWDO)XQGV 6XSSOHPHQWDO+LVWRULFDO*HQHUDO)XQG5HYHQXHV 6XSSOHPHQWDO*UDSK±+LVWRULFDO*HQHUDO)XQG5HYHQXHV 6XSSOHPHQWDO+LVWRULFDO*HQHUDO)XQG([SHQGLWXUHV 6XSSOHPHQWDO*UDSK±+LVWRULFDO*HQHUDO)XQG([SHQGLWXUHV 6XSSOHPHQWDO+LVWRULFDO*HQHUDO5HYHQXHDQG([SHQGLWXUHV3HU&DSLWD  5HYHQXH&DSDFLW\ $VVHVVHG9DOXHDQG(VWLPDWHG$FWXDO9DOXHRI7D[DEOH3URSHUW\ +LVWRULFDO1HW$VVHVVHG7D[DEOH9DOXHV&LW\ZLGHDQG *UDSK±$VVHVVHG9DOXDWLRQ*URZWK 6XSSOHPHQWDO)<DQG%UHDNGRZQRI%DVLF3URSHUW\ 7D[5DWH1RW,Q5HGHYHORSPHQW3URMHFW$UHD 3URSHUW\7D[5DWHV'LUHFWDQG2YHUODSSLQJ3URSHUW\7D[5DWHV 3ULQFLSDO3URSHUW\7D[SD\HUV 3URSHUW\7D[/HYLHVDQG&ROOHFWLRQV 6XSSOHPHQWDO7RS6DOHV7D[*HQHUDWRUVDQG *UDSK±+LVWRULFDO6DOHV7D[7UHQGV  'HEW&DSDFLW\ 5DWLRVRI2XWVWDQGLQJ'HEWE\7\SH 5DWLRVRI*HQHUDO%RQGHG'HEW2XWVWDQGLQJ 6XSSOHPHQWDO6SHFLDO$VVHVVPHQW,QIRUPDWLRQ 'LUHFWDQG2YHUODSSLQJ*RYHUQPHQW$FWLYLWLHV'HEW /HJDO'HEW0DUJLQ,QIRUPDWLRQ 3OHGJHG5HYHQXH&RYHUDJH  'HPRJUDSKLFDQG(FRQRPLF,QIRUPDWLRQ 'HPRJUDSKLFDQG(FRQRPLF6WDWLVWLFV 3ULQFLSDO(PSOR\HUV 6XSSOHPHQWDO0LVFHOODQHRXV6WDWLVWLFV  Item 1I-9  &,7<2)3$/0'(6(57&$/,)251,$  $118$/&2035(+(16,9(),1$1&,$/5(3257  )257+(),6&$/<($5(1'('-81(  7$%/(2)&217(176 3DJH 1XPEHU  2SHUDWLQJ,QIRUPDWLRQ )XOO7LPH(TXLYDOHQW&LW\*RYHUQPHQW(PSOR\HHVE\)XQFWLRQ3URJUDP 2SHUDWLQJ,QGLFDWRUVE\)XQFWLRQ3URJUDP &DSLWDO$VVHW6WDWLVWLFVE\)XQFWLRQ3URJUDP  6833/(0(17$/5('(9(/230(17&8672',$/67$7,67,&$/6(&7,21  5HGHYHORSPHQW&XVWRGLDO3URMHFW$UHDV0DS 7D[$OORFDWLRQ%RQG,VVXH,QIRUPDWLRQ +LVWRULFDO7D[,QFUHPHQW±5HGHYHORSPHQW3URSHUW\ 7D[7UXVW)XQG6XPPDU\   Item 1I-10 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN Item 1I-11 Item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¶VSRSXODWLRQZKLFKLVUHSUHVHQWHGE\RQH  HOHFWHG&LW\&RXQFLO PHPEHU'LVWULFW7ZRFRPSULVHVRIWKH&LW\¶VSRSXODWLRQZKLFKLVUHSUHVHQWHGE\IRXU  HOHFWHG &LW\&RXQFLOPHPEHUV(DFK'HFHPEHUWKH&LW\&RXQFLOVHOHFWVWKH0D\RUIURPDPRQJLWVPHPEHUV IRUDRQH\HDUWHUP7KH&LW\&RXQFLODSSRLQWVWKH&LW\0DQDJHUDQGWKH&LW\$WWRUQH\  7KH&LW\RSHUDWHVDVD³FRQWUDFWFLW\´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¶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alm Desert Civic Center ii Item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¶VPDLQUHYHQXH VRXUFHVDUHWUDQVLHQWRFFXSDQF\WD[HVDQGVDOHVWD['XHWRWKHWLPLQJRIWKH&LW\¶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¶VDFWLYHILYHVWDUDFFUHGLWHG&KDPEHURI&RPPHUFHKDVPRUHWKDQPHPEHUVZKR ZRUNWRSURPRWHVXSSRUWDQGHQKDQFHEXVLQHVVSURVSHULW\FLYLFYLWDOLW\DQGWKHTXDOLW\RIOLIHZLWKLQ WKHLUFRPPXQLW\1RWHGIRULWVH[WHQVLYHDUUD\RIUHWDLORSWLRQVLQFOXGLQJWKHZRUOGIDPRXVXSVFDOH VKRSSLQJGHVWLQDWLRQRI(O3DVHR3DOP'HVHUWLVKRPHWRDYDULHW\RIPDOOVDQGUHWDLOFHQWHUVLQFOXGLQJ 7KH6KRSVDW3DOP'HVHUW'HVHUW&URVVLQJ7KH*DUGHQV RQ(O3DVHRDQG(O3DVHR9LOODJH  7KHLQWHUQDWLRQDOO\DFFODLPHG'HVHUW:LOORZ*ROI5HVRUW RQH RI WKH QDWLRQ¶V SUHPLHU PXQLFLSDO FRXUVHV ERDVWV KROHVRIFKDPSLRQVKLSJROIDQGVWXQQLQJVFHQHU\LQ FORVHSUR[LPLW\WRILUVWFODVVKRWHODFFRPPRGDWLRQVDQG ILQHGLQLQJ  ,QDGGLWLRQWREHLQJWKHKRPHRIWKH&RDFKHOOD9DOOH\¶V RQO\FRPPXQLW\FROOHJH&ROOHJHRIWKH'HVHUW3DOP 'HVHUW LV WKH ORFDWLRQ RI VDWHOOLWH FDPSXVHV IRU ERWK WKH 8QLYHUVLW\ RI &DOLIRUQLD 5LYHUVLGH DQG &DOLIRUQLD6WDWH8QLYHUVLW\6DQ%HUQDUGLQRWKHUHJLRQ¶VRQO\SXEOLFIRXU\HDUXQLYHUVLW\  Desert Willow Golf Resort iii Item 1I-14 Item 1I-15 v Item 1I-16  &,7<2)3$/0'(6(57  /LVWRI3ULQFLSDO2IILFLDOV DVRI-XQH  &LW\&RXQFLO0DQDJHU)RUPRI*RYHUQPHQW   &,7<&281&,/  -$1&+$51,. 0D\RU   6$%%<-21$7+$1 0D\RU3UR7HPSRUH   .$7+/((1.(//< &RXQFLO0HPEHU *,1$1(67$1'( &RXQFLO0HPEHU .$5,1$48,17$1,//$ &RXQFLO0HPEHU    &,7<$'0,1,675$7,21  72''+,/(0$1 &LW\0DQDJHU   5REHUW:+DUJUHDYHV9HURQLFD&KDYH] &LW\$WWRUQH\%HVW%HVW .ULHJHU//3'LUHFWRURI)LQDQFH&LW\7UHDVXUHU    68&&(6625$*(1&<727+(3$/0'(6(575('(9(/230(17$*(1&<  72''+,/(0$1 ([HFXWLYH'LUHFWRU     vi Item 1I-17 MayorandCityCouncilCityAttorneyCommitteesandCommissionsResidentsoftheCityofPalmDesertDirectorofEconomicDevelopmentDirectorofDevelopmentServicesAssistantCityManagerExecutiveAssistantManagementAnalystHRManagementAnalyst(2)SeniorAdminAssistantCityClerkHumanResourcesRecordsCoordinator DeputyCityClerkAssistantCityClerkSeniorDeputyCityClerkAdministrativeAssistantIAssistantCityClerkOfficeAssistantITrafficSignalTech(2)LandscapeInspector(3)DirectorofPublicWorksParks&RecsSeniorMgmtAnalystCommunityServicesManagerMgmtAnalystIIFacilitiesProjectTechFacilitiesTech(2)TrafficSignalSpecialistDirectorofFinanceAccountingTechII(2)DeputyDirectorBuyerAccountingTechIIDeputyDirectorSeniorGISAdminBusinessSystemsEnterpriseAdminSeniorNetworkEngineerSeniorInformationSystemsAdminAccountingTechI(2)Accountant(2)FinanceSupervisorSeniorMgmtAnalystMgmtAnalystIIMgmtAnalystIAdministrativeAssistantPublicAffairsManagerCommunicationsAnalystICommunicationsAnalystIIMarketingAssistantCodeComplianceOfficer(3)CodeComplianceOfficerIIAdministrativeAssistantPermitCenterSupervisorPermitTechII(2)PermitTechI(2)DeputyDirectorPlanningManagerSeniorPlannerAssistantPlanner(2)LandDevelopmentTechCodeSupervisorCodeEnforcementSpecialistOfficeAssistantIIITManagerOfficeAssistantIISeniorAdminAssistantExecutiveAssistantChiefBuildingOfficialSeniorBuildingInspectorII(2)BuildingInspectorII(2)BuildingInspectorIAdministrativeAssistantIIHousingManagerDeputyDirectorDeputyDirectorSeniorProjectManagerTransportationManagerSeniorStreetMaintenanceWorkerDeputyDirectorMgmtAnalystSpecialEventsCoordinatorAdministrativeAssistantIIAdministrativeAssistantIIStreetSupervisorStreetMaintentanceWorkerII(7)StreetMaintentanceWorkerIII/EquipmentOperator(2)SeniorStreetMaintenanceWorkerPWInspector(3)Energy&SustainabilityPMCityManagervii Item 1I-18 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN Item 1I-19 1611 E. Fourth Street, Suite 200 Santa Ana, CA 92701 (714) 569-1000 203 N. Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833  (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com   ,1'(3(1'(17$8',7256¶5(3257  7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI3DOP'HVHUW&DOLIRUQLD  5HSRUWRQWKH)LQDQFLDO6WDWHPHQWV  Opinions  :HKDYHDXGLWHGWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVRIWKHJRYHUQPHQWDODFWLYLWLHVWKHEXVLQHVVW\SH DFWLYLWLHVWKHGLVFUHWHO\SUHVHQWHGFRPSRQHQWXQLWHDFKPDMRUIXQGDQGWKHDJJUHJDWHUHPDLQLQJIXQG LQIRUPDWLRQRI&LW\RI3DOP'HVHUW&DOLIRUQLD WKH&LW\ DVRIDQGIRUWKH\HDUHQGHG-XQHDQG WKH UHODWHG QRWHV WR WKH ILQDQFLDO VWDWHPHQWV ZKLFK FROOHFWLYHO\ FRPSULVH WKH &LW\¶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asis for Opinions :HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHV RI$PHULFD *$$6 DQGWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQGovernment Auditing StandardsLVVXHGE\WKH&RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHV2XUUHVSRQVLELOLWLHVXQGHUWKRVH VWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH$XGLWRU¶V5HVSRQVLELOLWLHVIRUWKH$XGLWRIWKH)LQDQFLDO6WDWHPHQWV VHFWLRQ RI RXU UHSRUW  :H DUH UHTXLUHG WR EH LQGHSHQGHQW RI WKH &LW\ DQGWR PHHW RXURWKHUHWKLFDO UHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHUHOHYDQWHWKLFDOUHTXLUHPHQWVUHODWLQJWRRXUDXGLWV:HEHOLHYHWKDW WKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQV  Emphasis of Matter  Change in Accounting Principle  $VGHVFULEHGLQ1RWHWRWKHILQDQFLDOVWDWHPHQWVLQWKHILVFDO\HDUHQGHG-XQHWKH&LW\DGRSWHG QHZDFFRXQWLQJJXLGDQFH*$6%6WDWHPHQW1RLeases2XURSLQLRQLVQRWPRGLILHGZLWKUHVSHFWWR WKLVPDWWHU  Responsibilities of Management for the Financial Statements  0DQDJHPHQW LV UHVSRQVLEOH IRU WKH SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQ RI WKHVH ILQDQFLDO VWDWHPHQWV LQ DFFRUGDQFHZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDDQGIRUWKH GHVLJQ LPSOHPHQWDWLRQ DQG PDLQWHQDQFH RI LQWHUQDO FRQWURO UHOHYDQW WR WKH SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVWKDWDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU Item 1I-20  7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI3DOP'HVHUW&DOLIRUQLD   ,QSUHSDULQJWKHILQDQFLDOVWDWHPHQWVPDQDJHPHQWLVUHTXLUHGWRHYDOXDWHZKHWKHUWKHUHDUHFRQGLWLRQVRU HYHQWVFRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH&LW\¶VDELOLW\WRFRQWLQXHDVD JRLQJ FRQFHUQ IRU WZHOYH PRQWKV EH\RQG WKH ILQDQFLDO VWDWHPHQWGDWH LQFOXGLQJ DQ\FXUUHQWO\ NQRZQ LQIRUPDWLRQWKDWPD\UDLVHVXEVWDQWLDOGRXEWVKRUWO\WKHUHDIWHU Auditor’s Responsibilities for the Audit of the Financial Statements  2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHILQDQFLDOVWDWHPHQWVDVDZKROHDUH IUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLVVXHDQDXGLWRU¶VUHSRUWWKDWLQFOXGHV RXURSLQLRQ5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORIDVVXUDQFHEXWLVQRWDEVROXWHDVVXUDQFHDQGWKHUHIRUH LV QRW D JXDUDQWHH WKDW DQ DXGLW FRQGXFWHG LQ DFFRUGDQFH ZLWK *$$6 DQGGovernment Auditing StandardsZLOODOZD\VGHWHFWDPDWHULDOPLVVWDWHPHQWZKHQLWH[LVWV7KHULVNRIQRWGHWHFWLQJDPDWHULDO PLVVWDWHPHQWUHVXOWLQJIURPIUDXGLVKLJKHUWKDQIRURQHUHVXOWLQJIURPHUURUDVIUDXGPD\LQYROYHFROOXVLRQ IRUJHU\LQWHQWLRQDORPLVVLRQVPLVUHSUHVHQWDWLRQVRUWKHRYHUULGHRILQWHUQDOFRQWURO0LVVWDWHPHQWVDUH FRQVLGHUHGPDWHULDOLIWKHUHLVDVXEVWDQWLDOOLNHOLKRRGWKDWLQGLYLGXDOO\RULQWKHDJJUHJDWHWKH\ZRXOG LQIOXHQFHWKHMXGJPHQWPDGHE\DUHDVRQDEOHXVHUEDVHGRQWKHILQDQFLDOVWDWHPHQWV  ,QSHUIRUPLQJDQDXGLWLQDFFRUGDQFHZLWK*$$6DQGGovernment Auditing StandardsZH  x ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSWLFLVPWKURXJKRXWWKHDXGLW  x ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKHILQDQFLDOVWDWHPHQWVZKHWKHUGXHWR IUDXGRUHUURUDQGGHVLJQDQGSHUIRUPDXGLWSURFHGXUHVUHVSRQVLYHWRWKRVHULVNV6XFKSURFHGXUHV LQFOXGHH[DPLQLQJRQDWHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDO VWDWHPHQWV  x 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDXGLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHV WKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG  x (YDOXDWHWKHDSSURSULDWHQHVVRIDFFRXQWLQJSROLFLHVXVHGDQGWKHUHDVRQDEOHQHVVRIVLJQLILFDQW DFFRXQWLQJHVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWKHRYHUDOOSUHVHQWDWLRQRIWKH ILQDQFLDOVWDWHPHQWV  x &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYHQWVFRQVLGHUHGLQWKHDJJUHJDWH WKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH&LW\¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRUDUHDVRQDEOH SHULRGRIWLPH  :HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKH SODQQHGVFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUV WKDWZHLGHQWLILHGGXULQJWKHDXGLW Other Reporting Responsibilities Required Supplementary Information  $FFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFDUHTXLUHWKDWWKHPDQDJHPHQW¶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tem 1I-21  7RWKH+RQRUDEOH0D\RUDQG0HPEHUVRIWKH&LW\&RXQFLO &LW\RI3DOP'HVHUW&DOLIRUQLD   VXSSOHPHQWDU\LQIRUPDWLRQLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHV RI$PHULFDZKLFKFRQVLVWHGRILQTXLULHVRIPDQDJHPHQWDERXWWKHPHWKRGVRISUHSDULQJWKHLQIRUPDWLRQ DQGFRPSDULQJWKHLQIRUPDWLRQIRUFRQVLVWHQF\ZLWKPDQDJHPHQW¶VUHVSRQVHVWRRXULQTXLULHVWKHEDVLF ILQDQFLDOVWDWHPHQWVDQGRWKHUNQRZOHGJHZHREWDLQHGGXULQJRXUDXGLWRIWKHEDVLFILQDQFLDOVWDWHPHQWV :HGRQRWH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFHRQWKHLQIRUPDWLRQEHFDXVHWKHOLPLWHGSURFHGXUHV GRQRWSURYLGHXVZLWKVXIILFLHQWHYLGHQFHWRH[SUHVVDQRSLQLRQRUSURYLGHDQ\DVVXUDQFH Supplementary Information  2XUDXGLWZDVFRQGXFWHGIRUWKHSXUSRVHRIIRUPLQJRSLQLRQVRQWKHILQDQFLDOVWDWHPHQWVWKDWFROOHFWLYHO\ FRPSULVHWKH&LW\¶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ther Information 0DQDJHPHQWLVUHVSRQVLEOHIRUWKHRWKHULQIRUPDWLRQLQFOXGHGLQWKHDQQXDOUHSRUW7KHRWKHULQIRUPDWLRQ FRPSULVHVWKHLQWURGXFWRU\VHFWLRQDQGVWDWLVWLFDOVHFWLRQEXWGRHVQRWLQFOXGHWKHEDVLFILQDQFLDOVWDWHPHQWV DQG RXU DXGLWRU¶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overnment Auditing Standards  ,Q DFFRUGDQFH ZLWKGovernment Auditing Standards ZH KDYH DOVR LVVXHG RXU UHSRUW GDWHG )HEUXDU\RQRXUFRQVLGHUDWLRQRIWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGRQRXU WHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWDJUHHPHQWVDQG RWKHUPDWWHUV7KHSXUSRVHRIWKDWUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURO RYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHDQGWKHUHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH&LW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJRURQFRPSOLDQFH7KDWUHSRUWLVDQLQWHJUDO SDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWKGovernment Auditing StandardsLQFRQVLGHULQJWKH&LW\¶V LQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFH  %UHD&DOLIRUQLD )HEUXDU\ 3 Item 1I-22 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 4 Item 1I-23     &,7<2)3$/0'(6(57    0$1$*(0(17¶6',6&866,21$1'$1$/<6,6  2XUGLVFXVVLRQDQGDQDO\VLVRIWKH&LW\RI3DOP'HVHUW¶VILQDQFLDOSHUIRUPDQFHIRUWKHILVFDO\HDUHQGHG -XQH   SURYLGHV D FRPSDULVRQ RI FXUUHQW \HDU WR SULRU\HDU HQGLQJ UHVXOWV EDVHG RQ WKH JRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWVDQDQDO\VLVRIWKH&LW\¶VRYHUDOOILQDQFLDOSRVLWLRQDQGUHVXOWVRI RSHUDWLRQVWRDVVLVWXVHUVLQHYDOXDWLQJWKH&LW\¶VILQDQFLDOSRVLWLRQDGLVFXVVLRQRIVLJQLILFDQWFKDQJHV WKDWRFFXUUHGLQWKHIXQGVDQGVLJQLILFDQWEXGJHWYDULDQFHV,QDGGLWLRQLWGHVFULEHVWKHDFWLYLWLHVGXULQJ WKH\HDUIRUFDSLWDODVVHWVDQGORQJWHUPGHEW:HHQGRXUGLVFXVVLRQDQGDQDO\VLVZLWKDGHVFULSWLRQRI NQRZQIDFWVGHFLVLRQVDQGFRQGLWLRQVWKDWDUHH[SHFWHGWRKDYHDVLJQLILFDQWHIIHFWRQWKHILQDQFLDO SRVLWLRQRUUHVXOWVRIRSHUDWLRQV3OHDVHUHDGLWLQFRQMXQFWLRQZLWKWKHWUDQVPLWWDOOHWWHUDQGWKH&LW\¶V ILQDQFLDOVWDWHPHQWV  ),1$1&,$/+,*+/,*+76  x 7KH &LW\¶V WRWDO DVVHWV DQG GHIHUUHG RXWIORZV H[FHHGHG LWV OLDELOLWLHV DQG GHIHUUHG LQIORZV E\ PLOOLRQ QHWSRVLWLRQ  x 7KH&LW\¶VJRYHUQPHQWDODFWLYLWLHVQHWSRVLWLRQLQFUHDVHGPLOOLRQDQGWKHQHWSRVLWLRQRI WKHEXVLQHVVW\SHDFWLYLWLHVLQFUHDVHGPLOOLRQ x 'XULQJWKH\HDUWKH&LW\¶VUHYHQXHVZHUHPLOOLRQDQGH[SHQVHVZHUHPLOOLRQLQ LWVJRYHUQPHQWDODFWLYLWLHVFRPSDUHGWRILVFDO\HDUZKHUHUHYHQXHVZHUHPLOOLRQ DQGH[SHQVHVZHUHPLOOLRQ x ,QWKH&LW\¶VEXVLQHVVW\SHDFWLYLWLHVH[SHQVHVZHUHPLOOLRQPLOOLRQPRUHWKDQWKH  PLOOLRQ LQ SULRU \HDU H[SHQVHV 5HYHQXHV JHQHUDWHG IURP JROI FRXUVH JUHHQ IHHV PHUFKDQGLVHVDOHVUHQWDOLQFRPHDQGRWKHUUHYHQXHVLQFUHDVHGE\PLOOLRQFRPSDUHGWR SULRU \HDU DQG 3DUNYLHZ 2IILFH &RPSOH[ UHYHQXHV IRU EXVLQHVVW\SH DFWLYLWLHV UHYHQXHV LQFUHDVHGWKRXVDQGIURPSULRU\HDU x 7KH &LW\¶V JRYHUQPHQWDO DFWLYLWLHV SURJUDP UHYHQXHV DQG JHQHUDO UHYHQXHV LQFUHDVHG E\ PLOOLRQZKLOHSURJUDPH[SHQVHVGHFUHDVHGE\PLOOLRQ x %XVLQHVVW\SHDFWLYLWLHVUHYHQXHVLQFUHDVHGPLOOLRQIURPPLOOLRQWRPLOOLRQ ([SHQVHVLQFUHDVHGIURPPLOOLRQWRPLOOLRQ x 7KH&LW\NHSWLWV*HQHUDO)XQGH[SHQGLWXUHVZLWKLQVSHQGLQJOLPLWVE\PLOOLRQ7KHUHYHQXHV DYDLODEOHIRUH[SHQGLWXUHVH[FHHGHGEXGJHWE\PLOOLRQ  86,1*7+,6$118$/5(3257  7KLV DQQXDO UHSRUW FRQVLVWV RI D VHULHV RI ILQDQFLDO VWDWHPHQWV 7KH 6WDWHPHQW RI 1HW 3RVLWLRQ DQG 6WDWHPHQWRI$FWLYLWLHV RQSDJHVDQG SURYLGHLQIRUPDWLRQDERXWWKHDFWLYLWLHVRIWKH&LW\DVD ZKROHDQGSUHVHQWDORQJWHUPYLHZRIWKH&LW\¶VILQDQFHV7KHIXQGILQDQFLDOVWDWHPHQWVVWDUWRQSDJH )RUJRYHUQPHQWDODFWLYLWLHVWKHVHIXQGVWDWHPHQWVWHOOKRZWKHVHVHUYLFHVZHUHILQDQFHGLQWKHVKRUWWHUP DVZHOODVZKDWUHPDLQVIRUIXWXUHVSHQGLQJ7KHIXQGILQDQFLDOVWDWHPHQWVDOVRUHSRUWWKH&LW\¶VRSHUDWLRQ LQ PRUH GHWDLO WKDQ WKH JRYHUQPHQWZLGH VWDWHPHQWV E\ SURYLGLQJ LQIRUPDWLRQ DERXW WKH &LW\¶V PRVW VLJQLILFDQWIXQGVDQGRWKHUIXQGV7KHUHPDLQLQJILGXFLDU\IXQGVWDWHPHQWSURYLGHVILQDQFLDOLQIRUPDWLRQ DERXWDFWLYLWLHVIRUZKLFKWKH&LW\DFWVVROHO\DVDWUXVWHHRUDJHQWIRUWKHEHQHILWRIWKRVHRXWVLGHRIWKH JRYHUQPHQW  5 Item 1I-24     5(3257,1*7+(&,7<$6$:+2/(  7KH6WDWHPHQWRI1HW3RVLWLRQDQGWKH6WDWHPHQWRI$FWLYLWLHV  2XUDQDO\VLVRIWKH&LW\DVDZKROHEHJLQVRQSDJH2QHRIWKHPRVWLPSRUWDQWTXHVWLRQVDVNHGDERXW WKH&LW\¶VILQDQFHVLV³,VWKH&LW\DVDZKROHEHWWHURIIRUZRUVHRIIDVDUHVXOWRIWKH\HDU¶VDFWLYLWLHV"´ 7KH6WDWHPHQWRI1HW3RVLWLRQDQGWKH6WDWHPHQWRI$FWLYLWLHVUHSRUWLQIRUPDWLRQDERXWWKH&LW\DVDZKROH DQGDERXWLWVDFWLYLWLHVLQDZD\WKDWDQVZHUVWKLVTXHVWLRQ7KHVHVWDWHPHQWVLQFOXGHDOODVVHWVDQG OLDELOLWLHVRIWKH&LW\XVLQJWKHaccrual basis of accountingZKLFKLVVLPLODUWRWKHDFFRXQWLQJXVHGE\PRVW SULYDWHVHFWRU FRPSDQLHV $OO RI WKH FXUUHQW \HDU¶V UHYHQXHV DQG H[SHQVHV DUH WDNHQ LQWR DFFRXQW UHJDUGOHVVRIZKHQFDVKLVUHFHLYHGRUSDLG  7KHVHWZRVWDWHPHQWVUHSRUWWKH&LW\¶Vnet positionDQGchanges LQWKHP.1HWSRVLWLRQLVWKHGLIIHUHQFH EHWZHHQWRWDODVVHWVDQGGHIHUUHGRXWIORZVRIUHVRXUFHVOHVVOLDELOLWLHVDQGGHIHUUHGLQIORZVZKLFKLVRQH ZD\WRPHDVXUHWKH&LW\¶VILQDQFLDOKHDOWKRUfinancial position2YHUWLPHincreases or decreasesLQWKH &LW\¶VQHWSRVLWLRQDUHDQLQGLFDWLRQRIZKHWKHULWVfinancial healthLVLPSURYLQJRUGHWHULRUDWLQJ2WKHU QRQILQDQFLDOIDFWRUVVKRXOGEHFRQVLGHUHGKRZHYHUVXFKDVFKDQJHVLQWKHHFRQRP\WKDWFRXOGFDXVHD GHFUHDVHLQFRQVXPHUVSHQGLQJ  ,QWKH6WDWHPHQWRI1HW3RVLWLRQDQGWKH6WDWHPHQWRI$FWLYLWLHVZHVHSDUDWH&LW\DFWLYLWLHVDVIROORZV  *RYHUQPHQWDO DFWLYLWLHV ± 0RVW RI WKH &LW\¶V EDVLF VHUYLFHV DUH UHSRUWHG LQ WKLV FDWHJRU\ LQFOXGLQJ JHQHUDODGPLQLVWUDWLRQ FLW\PDQDJHUFLW\FOHUNILQDQFHHWF KRXVLQJDQGUHGHYHORSPHQWSXEOLFVDIHW\ SROLFH DQG ILUH SURWHFWLRQ  SXEOLF ZRUNV SDUNV UHFUHDWLRQ DQG FXOWXUH GHSDUWPHQWV 3URSHUW\ WD[HV VDOHVWD[WUDQVLHQWRFFXSDQF\WD[XVHUIHHVLQWHUHVWLQFRPHIUDQFKLVHIHHVVWDWHDQGIHGHUDOJUDQWV FRQWULEXWLRQVIURPRWKHUDJHQFLHVDQGRWKHUUHYHQXHVILQDQFHWKHVHDFWLYLWLHV  %XVLQHVVW\SH DFWLYLWLHV ± 7KH &LW\ FKDUJHV FXVWRPHUV WR FRYHU DOO RU PRVW RI WKH FRVWRI FHUWDLQ VHUYLFHV LW SURYLGHV 7KH &LW\¶V PXQLFLSDO JROI FRXUVH 'HVHUW:LOORZ DQG WKH &LW\¶V 3DUNYLHZ 2IILFH &RPSOH[DFWLYLWLHVDUHUHSRUWHGLQWKLVFDWHJRU\  &RPSRQHQWXQLWDFWLYLWLHV±7KH&LW\LQFOXGHVRQHVHSDUDWHOHJDOHQWLW\LQLWVUHSRUW±WKH3DOP'HVHUW 5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ$OWKRXJKOHJDOO\VHSDUDWHWKLV³FRPSRQHQWXQLW´LVLPSRUWDQWEHFDXVH WKH&LW\LVILQDQFLDOO\DFFRXQWDEOHIRULW  5(3257,1*7+(&,7<¶602676,*1,),&$17)81'6  )XQG)LQDQFLDO6WDWHPHQWV  7KHIXQGILQDQFLDOVWDWHPHQWVSURYLGHGHWDLOHGLQIRUPDWLRQDERXWWKHPRVWVLJQLILFDQWIXQGVDQGRWKHU IXQGVQRWWKH&LW\DVDZKROH6RPHIXQGVDUHUHTXLUHGWREHHVWDEOLVKHGE\6WDWHODZDQGE\ERQG FRYHQDQWV+RZHYHUPDQDJHPHQWHVWDEOLVKHGPDQ\RWKHUIXQGVWRKHOSLWFRQWURODQGPDQDJHPRQH\IRU SDUWLFXODUSXUSRVHVRUWRVKRZWKDWLWLVPHHWLQJOHJDOUHVSRQVLELOLWLHVIRUXVLQJFHUWDLQWD[HVJUDQWVDQG RWKHUUHVRXUFHV7KH&LW\KDVWKUHHW\SHVRIIXQGVJRYHUQPHQWDOSURSULHWDU\DQGILGXFLDU\  *RYHUQPHQWDOIXQGV±0RVWRIWKH&LW\¶VEDVLFVHUYLFHVDUHUHSRUWHGLQJRYHUQPHQWDOIXQGVZKLFKIRFXV RQKRZPRQH\IORZVLQDQGRXWRIWKRVHIXQGVDQGWKHEDODQFHVOHIWDW\HDUHQGWKDWDUHDYDLODEOHIRU VSHQGLQJ7KHVHIXQGVDUHUHSRUWHGXVLQJDQDFFRXQWLQJPHWKRGFDOOHGmodified accrualaccounting ZKLFK PHDVXUHV FDVK DQG DOO RWKHUfinancial DVVHWV WKDW FDQ UHDGLO\ EH FRQYHUWHG WR FDVK 7KH JRYHUQPHQWDO IXQG VWDWHPHQWV SURYLGH D GHWDLOHGshort-term view RI WKH &LW\¶V JHQHUDO JRYHUQPHQW RSHUDWLRQVDQGWKHEDVLFVHUYLFHVLWSURYLGHV*RYHUQPHQWDOIXQGLQIRUPDWLRQKHOSVGHWHUPLQHZKHWKHU WKHUHDUHPRUHRUIHZHUILQDQFLDOUHVRXUFHVWKDWFDQEHVSHQWLQWKHQHDUIXWXUHWRILQDQFHWKH&LW\¶V SURJUDPV 7KH GLIIHUHQFHV RI UHVXOWV LQ WKH *RYHUQPHQWDO )XQG ILQDQFLDO VWDWHPHQWV WR WKRVH LQ WKH *RYHUQPHQWZLGH ILQDQFLDO VWDWHPHQWV DUH H[SODLQHG LQ DUHFRQFLOLDWLRQ IROORZLQJ HDFK *RYHUQPHQWDO)XQGILQDQFLDOVWDWHPHQW 6 Item 1I-25     3URSULHWDU\IXQGV±:KHQWKH&LW\FKDUJHVFXVWRPHUVIRUWKHVHUYLFHVLWSURYLGHVWKHVHVHUYLFHVDUH JHQHUDOO\UHSRUWHGLQSURSULHWDU\IXQGV3URSULHWDU\IXQGVDUHUHSRUWHGLQWKHVDPHZD\WKDWDOODFWLYLWLHV DUHUHSRUWHGLQWKH6WDWHPHQWRI1HW3RVLWLRQDQGWKH6WDWHPHQWRI$FWLYLWLHV7KH&LW\¶VHQWHUSULVHIXQGV DUHWKHVDPHDVWKHEXVLQHVVW\SHDFWLYLWLHVZHUHSRUWLQWKHJRYHUQPHQWZLGHVWDWHPHQWVEXWSURYLGH PRUHGHWDLODQGLQIRUPDWLRQVXFKDVDVWDWHPHQWRIFDVKIORZV  )LGXFLDU\ IXQGV± )LGXFLDU\ IXQGV DUH XVHG WR DFFRXQW IRU UHVRXUFHV KHOG IRU WKH EHQHILW RI SDUWLHV RXWVLGHWKHJRYHUQPHQW)LGXFLDU\IXQGVDUHQRWUHIOHFWHGLQWKHJRYHUQPHQWZLGHILQDQFLDOVWDWHPHQW EHFDXVHWKHUHVRXUFHVRIWKRVHIXQGVDUHQRWDYDLODEOHWRVXSSRUWWKH&LW\RI3DOP'HVHUWRSHUDWLRQV 7KHDFFRXQWLQJXVHGIRUILGXFLDU\IXQGVLVPXFKOLNHWKDWXVHGIRUSURSULHWDU\IXQGV  7+(&,7<$675867((  5HSRUWLQJWKH&LW\¶V)LGXFLDU\5HVSRQVLELOLWLHV  7KH&LW\LVWKHWUXVWHHRUfiduciary IRU WKH 6XFFHVVRU $JHQF\ WR WKH 3DOP 'HVHUW 5HGHYHORSPHQW $JHQF\¶V 6XFFHVVRU$JHQF\ SULYDWHSXUSRVHWUXVWIXQGDQGIRUFHUWDLQFXVWRGLDOIXQGVKHOGRQEHKDOIRI GHYHORSHUVDQGLWVHPSOR\HHV¶UHWLUHHVHUYLFHVWLSHQGIXQG7KH&LW\¶VILGXFLDU\DFWLYLWLHVDUHUHSRUWHGLQ VHSDUDWH6WDWHPHQWRI)LGXFLDU\1HW3RVLWLRQ6WDWHPHQWRI&KDQJHVLQ)LGXFLDU\1HW3RVLWLRQ&RPELQLQJ 6WDWHPHQWRI6WDWHPHQWRI1HW3RVLWLRQ$OO&XVWRGLDO)XQGVDQG&RPELQLQJ6WDWHPHQWRI&KDQJHVLQ )LGXFLDU\1HW3RVLWLRQ$OO&XVWRGLDO)XQGV:HH[FOXGHWKHVHDFWLYLWLHVIURPWKH&LW\¶VRWKHUILQDQFLDO VWDWHPHQWVEHFDXVHWKH&LW\FDQQRWXVHWKHVHDVVHWVWRILQDQFHLWVRSHUDWLRQV7KH&LW\LVUHVSRQVLEOHIRU HQVXULQJWKDWWKHDVVHWVUHSRUWHGLQWKHVHIXQGVDUHXVHGIRUWKHLULQWHQGHGSXUSRVHV  7+(&,7<$6$:+2/(  'XULQJWKHILVFDO\HDUHQGLQJ-XQHWKH&LW\¶VFRPELQHGQHWSRVLWLRQLQFUHDVHGPLOOLRQ IURPPLOOLRQWRPLOOLRQ$VHSDUDWHUHYLHZRIWKHQHWFKDQJHLQWKHJRYHUQPHQWDODQG EXVLQHVVW\SHDFWLYLWLHVLVSURYLGHGIRUWKHUHDGHU2XUDQDO\VLVIRFXVHVRQWKHQHWSRVLWLRQ 7DEOH DQG FKDQJHVLQQHWSRVLWLRQ 7DEOH RIWKH&LW\¶VJRYHUQPHQWDODQGEXVLQHVVW\SHDFWLYLWLHV 7 Item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tem 1I-27     7KH&LW\¶VJRYHUQPHQWDODFWLYLWLHVQHWSRVLWLRQLQFUHDVHGPLOOLRQ7KH&LW\¶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¶V3OD]DDQG WKHDQQXDOVWUHHWUHVXUIDFLQJSURJUDP5HVWULFWHGVSHFLDOSURMHFWVLQFUHDVHZDVPDLQO\GXHWRWKH*HQHUDO )XQGWUDQVIHURIIXQGVWRWKH)LUH)XQGWRFRYHUIXWXUHFDSLWDOSURMHFWVLQWKHDPRXQWRIPLOOLRQ  ,QYHVWPHQW LQ FDSLWDO DVVHWV LQFUHDVHG  PLOOLRQ ZKLFK LVPRVWO\ PDGH XS RI FRPSOHWHG VWUHHW LPSURYHPHQWVIRU$OHVVDQGUR'ULYH7KHFDOFXODWLRQRILQYHVWPHQWLQFDSLWDODVVHWVLQFOXGHVRXWVWDQGLQJ GHEWXVHGWRSXUFKDVHRUFRQVWUXFWWKH&LW\¶VFDSLWDODVVHWV  7KH&LW\¶VJRYHUQPHQWDODFWLYLWLHVWRWDODVVHWVDQGGHIHUUHGRXWIORZRIUHVRXUFHVFRPELQHGLQFUHDVHG PLOOLRQIURPPLOOLRQLQWRPLOOLRQLQ:KLOHGHIHUUHGRXWIORZVGHFUHDVHG GXHWRGHFUHDVHGGHIHUUHGRXWIORZVIURPSHQVLRQV'XHIURPRWKHUJRYHUQPHQWVGHFUHDVHGPLOOLRQ \HDURYHU\HDUIURPPLOOLRQLQWKHSULRU\HDUWRPLOOLRQWKLVILVFDO\HDU$GGLWLRQDOO\FDVK LQFUHDVHGIURPPLOOLRQLQWRPLOOLRQLQDQLQFUHDVHRIPLOOLRQDQGFDVK ZLWKILVFDODJHQWGHFUHDVHGE\PLOOLRQIURPPLOOLRQWRPLOOLRQ,QFUHDVHVLQVDOHV WD[WUDQVLHQWRFFXSDQF\WD[DQGSHUPLWWLQJIRUQHZFLW\GHYHORSPHQWDOOFRQWULEXWHGWRWKHLQFUHDVHVLQ FDVK  7RWDOOLDELOLWLHVDQGGHIHUUHGLQIORZVFRPELQHGGHFUHDVHGE\PLOOLRQIURPPLOOLRQLQWR PLOOLRQLQ$GHFUHDVHRIPLOOLRQLQWRWDOOLDELOLWLHVPDLQO\DWWULEXWDEOHWRDSHQVLRQ OLDELOLW\GHFUHDVHRIPLOOLRQZDVRIIVHWE\DQLQFUHDVHLQGHIHUUHGLQIORZVRIPLOOLRQUHODWHG WR LQFUHDVHG GHIHUUHG LQIORZV IURP SHQVLRQV DV ZHOO DV LQFUHDVHG GHIHUUHG LQIORZV IURP OHDVHV 7KH LQFUHDVHLQGHIHUUHGLQIORZVIURPOHDVHVZDVGXHWRWKHLPSOHPHQWDWLRQRI*$6%ZKLFKFKDQJHGWKH ZD\JRYHUQPHQWDOHQWLWLHVUHFRUGDQGDFFRXQWIRUOHDVHV  7KH QHW SRVLWLRQ RI WKH EXVLQHVVW\SH DFWLYLWLHV UHFRJQL]HG DQLQFUHDVH RI  PLOOLRQ IURP PLOOLRQGXULQJWRPLOOLRQGXULQJ7KHPDLQIDFWRUIRUWKHLQFUHDVHLQQHWSRVLWLRQ ZDVRYHUDOOGHFUHDVHLQFDSLWDOOHDVHREOLJDWLRQZKLFKGHFUHDVHGE\PLOOLRQ$GGLWLRQDOO\LQFUHDVHV LQJURVVUHYHQXHVRIPLOOLRQIURPWKHJROIUHVRUWIURPWKHSULRU\HDUIXUWKHUDGGHGWRWKHLQFUHDVHLQ QHWSRVLWLRQ  7RWDODVVHWVLQWKHEXVLQHVVW\SHDFWLYLWLHVLQFUHDVHGE\PLOOLRQIURPPLOOLRQLQWR PLOOLRQLQ7KHPDMRULQFUHDVHZDVUHODWHGWRLQFUHDVHGOHDVHVUHFHLYDEOHRIPLOOLRQIRU WKH3DUNYLHZ2IILFHFRPSOH[GXHWRWKHLPSOHPHQWDWLRQRI*$6%DORQJZLWKLQFUHDVHGJROIFRXUVH JURVVUHYHQXHVRIPLOOLRQ7RWDOOLDELOLWLHVLQWKHEXVLQHVVW\SHDFWLYLWLHVGHFUHDVHGPLOOLRQ IURPPLOOLRQLQWRPLOOLRQLQ7KHGHFUHDVHLQFDSLWDOOHDVHREOLJDWLRQUHSUHVHQWV WKHPDMRULW\RIWKHGHFUHDVHDFFRXQWLQJIRUPLOOLRQRIWKHUHGXFWLRQ  9 Item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tem 1I-29                  *RYHUQPHQWDO $FWLYLWLHV %XVLQHVV7\SH $FWLYLWLHV'ROODUVLQ0LOOLRQV7DEOHD *UDSK &KDQJHVLQ1HW3RVLWLRQ             *RYHUQPHQWDO $FWLYLWLHV %XVLQHVV7\SH $FWLYLWLHV'ROODUVLQ0LOOLRQV7DEOHE *UDSK &KDQJHVLQ5HYHQXHV ([SHQVHV 6XPRI7RWDO 5HYHQXHV 6XPRI7RWDO ([SHQVHV  *RYHUQPHQWDO$FWLYLWLHV  7RWDO UHYHQXH LQFUHDVHG E\  PLOOLRQ IURP  PLOOLRQWR  PLOOLRQ )DFWRUV WKDW FRQWULEXWHGWRWKHFKDQJHVLQUHYHQXHVDUHDVIROORZV  x 7UDQVLHQWRFFXSDQF\WD[LQFUHDVHGIURPPLOOLRQLQWRPLOOLRQLQDQ LQFUHDVHRIPLOOLRQ+RWHOVDQGRWKHUVKRUWWHUPUHQWDOVZHUHUHRSHQHGWRWKHSXEOLFXSRQ WKHHDVLQJRI&29,'SURWRFROV x 7KH&LW\¶VVDOHVWD[LQFUHDVHGE\PLOOLRQIURPPLOOLRQLQWRPLOOLRQLQ 5HWDLODQGUHVWDXUDQWVZHUHDOORZHGWRRSHQIRUEXVLQHVVDIWHUWKHHFRQRPLFVKXWGRZQ IURPWKHSDQGHPLF x ,QWKH&LW\¶VLQYHVWPHQWHDUQLQJVZHUHPLOOLRQOHVVWKDQSULRU\HDUDUHGXFWLRQIURP PLOOLRQLQWR  PLOOLRQLQZKLFKZDVFDXVHGE\WKHDQQXDOIDLUPDUNHWYDOXH DGMXVWPHQWUHTXLUHGXQGHU*$6%'XHWRWKHULVLQJLQWHUHVWUDWHHQYLURQPHQWDQGWKHLQYHUVH UHODWLRQVKLSEHWZHHQLQWHUHVWUDWHVDQGLQYHVWPHQWIDLUPDUNHWYDOXHVWKH&LW\KDGDQXQUHDOL]HG ORVVRQLQYHVWPHQWVDW\HDUHQG x &KDUJHVIRUVHUYLFHVLQFUHDVHGVOLJKWO\IURPPLOOLRQLQWRPLOOLRQLQ VWHPPLQJIURP+RXVLQJDQGUHGHYHORSPHQWDQG3XEOLFZRUNVFKDUJHVIRUVHUYLFHV x 2SHUDWLQJFRQWULEXWLRQVDQGJUDQWVUHFRJQL]HGDLQFUHDVHRIPLOOLRQ7KLVLQFUHDVHZDV PDLQO\WKHUHVXOWRIDQPLOOLRQLQFUHDVHLQSXEOLFVDIHW\RSHUDWLQJFRQWULEXWLRQVDQGJUDQWV DQGVRPHDGGLWLRQDOLQFUHDVHLQJHQHUDOJRYHUQPHQWRSHUDWLQJFRQWULEXWLRQV x &DSLWDO FRQWULEXWLRQ DQG JUDQWV GHFUHDVHG E\  PLOOLRQ IURP  PLOOLRQ LQ  WR PLOOLRQLQ7KLVZDVSULPDULO\GULYHQE\GHFUHDVHVLQSXEOLFZRUNVFDSLWDOFRQWULEXWLRQV DQG SXEOLF VDIHW\ FDSLWDO FRQWULEXWLRQV RI  PLOOLRQ DQG  PLOOLRQ UHVSHFWLYHO\ 7KHVH GHFUHDVHV ZHUH SDUWLDOO\ RIIVHW E\ DQ LQFUHDVH LQ SDUNV UHFUHDWLRQ DQG FXOWXUH FDSLWDO FRQWULEXWLRQVRIPLOOLRQ  7RWDOH[SHQVHVGHFUHDVHGIURPPLOOLRQWRPLOOLRQDGHFUHDVHRIOHVVWKDQRQHSHUFHQW   11 Item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tem 1I-31     7+(&,7<¶6)81'6  2Q SDJH  WKH JRYHUQPHQWDO IXQGV EDODQFH VKHHW LV VKRZQ 7KHFRPELQHG IXQG EDODQFH RI  PLOOLRQ LQFUHDVHG  PLOOLRQ IURP  PLOOLRQ7KLV WRWDO LQFOXGHV WKH *HQHUDO )XQG EDODQFHRIPLOOLRQZKLFKLQFUHDVHGE\PLOOLRQIURPWKHSULRU\HDU7KH&LW\¶V*HQHUDO )XQGEDODQFHKDVDQRQVSHQGDEOHEDODQFHRIPLOOLRQFRPPLWWHGEDODQFHRIPLOOLRQDVVLJQHG EDODQFHRIWKRXVDQGDQGPLOOLRQRIXQDVVLJQHGIXQGEDODQFH7KHLQFUHDVHLQWKH*HQHUDO )XQG¶VEDODQFHZDVGXHWRLQFUHDVHVLQVDOHVWD[WUDQVLHQWRFFXSDQF\WD[DQGGHYHORSPHQWIHHVDV VKRSSLQJ WUDYHO DQG GHYHORSPHQW EHJDQ WR QRUPDOL]H DIWHU WKH KHLJKW RI &29,' FORVXUHV 2WKHU PDMRUIXQGEDODQFHFKDQJHVDUHQRWHGEHORZ  x 7KH3URS$)LUH7D[6SHFLDO5HYHQXH)XQG7KHIXQGEDODQFHLQFUHDVHGPLOOLRQ7KH&LW\ WUDQVIHUUHGPLOOLRQWRFRYHUIXWXUHFDSLWDOSURMHFWV x 7KH+RXVLQJ$VVHW)XQG7KHIXQGKDGDPLQRULQFUHDVHRIWKRXVDQG x 0HDVXUH $ 6SHFLDO 5HYHQXH )XQG WKH IXQG EDODQFH GHFUHDVHG IURP  PLOOLRQ WR PLOOLRQ7KHLQFUHDVHZDVUHODWHGWRSURMHFWVWKDWEHJDQWRVSHQGGRZQIXQGVLQ x 7KH+RXVLQJ$XWKRULW\)XQG7KHIXQGEDODQFHKDGDVOLJKWGHFUHDVHRIPLOOLRQUHODWHGWR PLQRULPSURYHPHQWVPDGHRQXQLWV x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¶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tem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tem 1I-33     7KLV\HDU¶VPDMRUDGGLWLRQVLQFOXGHG LQPLOOLRQV   6WUHHWLPSURYHPHQWV  &LW\RZQHGEXLOGLQJLPSURYHPHQWV   (TXLSPHQWSXUFKDVHV  /DQGULJKWRIZD\  %XLOGLQJV    7KH&LW\¶VILVFDO\HDUDGRSWHGFDSLWDOEXGJHWFDOOVIRUDQDGGLWLRQDOPLOOLRQWREHVSHQWSOXV FRQWLQXLQJFDSLWDOSURMHFWVRIPLOOLRQIURPSULRU\HDUZLWKWKHPDMRULW\EHLQJVSHQWRQVWUHHWV LQIUDVWUXFWXUHEXLOGLQJVSDUNVDQGJROIFRXUVHLPSURYHPHQWV3URMHFWVZLOOEHIXQGHGZLWKH[LVWLQJERQG SURFHHGV RU IXQGV WKDW KDYH EHHQ GHVLJQDWHG E\ DQ RXWVLGH SDUW\ IRU VSHFLILF XVH 0RUH GHWDLOHG LQIRUPDWLRQDERXWWKH&LW\¶VFDSLWDODVVHWVLVSUHVHQWHGLQ1RWHIDQG1RWHWRWKHILQDQFLDOVWDWHPHQWV  'HEW  $W \HDUHQG WKH &LW\¶V JRYHUQPHQWDO DFWLYLWLHV KDG  PLOOLRQ LQ ERQGV FODLPV FRPSHQVDWHG DEVHQFHVDQGSHQVLRQOLDELOLW\YHUVXVPLOOLRQODVW\HDUDGHFUHDVHRIPLOOLRQDVVKRZQLQ 7DEOH7KHPDMRUGHFUHDVHZDVWKH&LW\¶V1HW3HQVLRQOLDELOLW\ZKLFKZHQWIURPPLOOLRQLQ WRPLOOLRQLQDGHFUHDVHRIPLOOLRQ,QDGGLWLRQWKH&LW\PHWDOORILWVDQQXDOERQGGHEW SD\PHQWUHTXLUHPHQWVGHFUHDVLQJWKHLUEDODQFHVIURPPLOOLRQWRPLOOLRQ7KH&LW\¶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tem 1I-34     7KH&LW\¶VEXVLQHVVW\SHDFWLYLWLHVGHEWGHFUHDVHGPLOOLRQIURPPLOOLRQWRPLOOLRQ'HEW LQWKHEXVLQHVVW\SHDFWLYLWLHVLVIRUFDSLWDOOHDVLQJRIHTXLSPHQW7KH&LW\¶VJROIFRXUVHXVHVOHDVLQJDV DQDOWHUQDWLYHWRSXUFKDVLQJJROIFDUWVDQGPDLQWHQDQFHHTXLSPHQWWRPDLQWDLQDFDVKIORZWRRSHUDWHWKH GD\WRGD\ DFWLYLWLHV 7KH &LW\¶V EXVLQHVVW\SH DFWLYLWLHV ZHUH DEOH WR PHHW WKHLU FXUUHQW \HDU GHEW REOLJDWLRQLQDWLPHO\PDQQHU0RUHGHWDLOHGLQIRUPDWLRQDERXWWKH&LW\¶VORQJWHUPOLDELOLWLHVLVSUHVHQWHG LQ1RWHWKURXJK1RWHDQG1RWHWRWKHILQDQFLDOVWDWHPHQWV  (&2120,&)$&7256$1'1(;7<($5¶6%8'*(76  'XULQJILVFDO\HDUWKH6WDWHRI&DOLIRUQLDVDZDQHDVLQJLQ&29,'UHVWULFWLRQVDOORZLQJVWRUHV DQGUHVWDXUDQWVWRUHVXPHLQSHUVRQRSHUDWLRQVDQGKRWHOVDQGRWKHUWRXULVPUHQWDOVWRUHRSHQ)ROORZLQJ WKHUHRSHQLQJRIKRWHOVDQGVKRUWWHUPUHQWDOVWRXULVPVWHDGLO\LQFUHDVHGLQWKH&LW\RI3DOP'HVHUW EROVWHULQJERWKVDOHVWD[DQGWUDQVLHQWRFFXSDQF\WD[±WKH&LW\¶VWZRODUJHVWVWUHDPVRIUHYHQXH$ FDXWLRXVDSSURDFKWRVSHQGLQJWKURXJKRXWWKHXQFHUWDLQW\RIWKHSDQGHPLFKDVDOORZHGWKH&LW\WRUHWDLQ FRUHVHUYLFHOHYHOVDQGFRQWLQXHWRVHUYHWKHSXEOLFZLWKRXWWDSSLQJLQWRUHVHUYHV:KLOHWKH&LW\UHPDLQV FRPPLWWHG WR UHVSRQVLEOH VSHQGLQJ WKH ILQDQFLDO SODQ IRU ILVFDO \HDU  UHIOHFWV D UHWXUQ WR PRUH QRUPDOL]HG UHYHQXH DQG H[SHQGLWXUH SODQV DQG DGGUHVVHV VRPH GHIHUUHG PDLQWHQDQFH DQG RWKHU SRVWSRQHPHQWVWKDWRFFXUUHGGXULQJWKHSDQGHPLF¶VFRQVHUYDWLYHEXGJHWLQJ\HDUV  ,QSUHSDULQJWKHEXGJHWIRUILVFDO\HDUPDQDJHPHQW¶VFRQVLGHUDWLRQVDOVRLQFOXGHGDYDULHW\RIRWKHU RSHUDWLRQDODGMXVWPHQWVIRUFKDOOHQJHVVXFKDVWKHRQJRLQJHFRQRPLFLPSDFWVRILQIODWLRQVXSSO\FKDLQ FRQVWUDLQWVDQGODERULVVXHV:KLOHWKHVDIHW\RIUHVLGHQWVYLVLWRUVDQGEXVLQHVVUHPDLQVWKHKLJKHVW SULRULW\WKH&LW\&RXQFLO¶VREMHFWLYHVH[SDQGHGLQWRLQFOXGHERWKFDSLWDODQGPRQHWDU\LQYHVWPHQWV WRVXSSRUWWKH&LW\¶VHFRQRPLFVWDELOLW\LQFRQMXQFWLRQZLWKWKH&LW\¶V\HDUVWUDWHJLFSODQEnvision Palm Desert – Forward Together.  7KH&LW\¶V)LQDQFLDO3ODQFDQEHIRXQGRQWKH&LW\¶VZHEVLWHDWZZZFLW\RISDOPGHVHUWRUJ  &217$&7,1*7+(&,7<¶6),1$1&,$/0$1$*(0(17  7KLVILQDQFLDOUHSRUWLVGHVLJQHGWRSURYLGHRXUUHVLGHQWVWD[SD\HUVFXVWRPHUVLQYHVWRUVDQGFUHGLWRUV ZLWKDJHQHUDORYHUYLHZRIWKH&LW\¶VILQDQFHVDQGVHUYHVDVDUHVRXUFHWRGHPRQVWUDWHWKHVWHZDUGVKLS DQGDFFRXQWDELOLW\IRUWKHSXEOLFPRQLHVLWUHFHLYHV ,I \RX KDYH TXHVWLRQV DERXW WKLV UHSRUW RU QHHG DGGLWLRQDO ILQDQFLDO LQIRUPDWLRQ SOHDVH FRQWDFW WKH )LQDQFH'HSDUWPHQWDW  RULQIR#FLW\RISDOPGHVHUWRUJ  16 Item 1I-35 &,7<2)3$/0'(6(57 67$7(0(172)1(7326,7,21 &RPSRQHQW 8QLW *RYHUQPHQWDO %XVLQHVV7\SH $FWLYLWLHV $FWLYLWLHV 7RWDO $66(76 &DVKDQGLQYHVWPHQWV  5HFHLYDEOHV $FFRXQWV  1RWHV   $FFUXHGLQWHUHVW   $OORZDQFHIRULQWHUHVWRQ6XFFHVVRU$JHQF\     /RDQV   /HDVHV  ,QWHUQDOEDODQFHV    3UHSDLGFRVWV  'HSRVLWV   'XHIURPRWKHUJRYHUQPHQWV   ,QYHQWRULHV  3URSHUW\KHOGIRUUHVDOH   'XHIURPFRPSRQHQWXQLW  5HVWULFWHGDVVHWV &DVKZLWKILVFDODJHQW   $GYDQFHVWR6XFFHVVRU$JHQF\  $OORZDQFHRQ$GYDQFHVWR6XFFHVVRU$JHQF\     1HW23(%DVVHW   &DSLWDODVVHWVQRWEHLQJGHSUHFLDWHGDPRUWL]H  &DSLWDODVVHWVQHWRIGHSUHFLDWLRQDPRUWL]DWLRQ   727$/$66(76   '()(55('287)/2:62)5(6285&(6 'HIHUUHGRXWIORZVIURPSHQVLRQV   'HIHUUHGRXWIORZVIURP23(%  7RWDO'HIHUUHG2XWIORZVRI5HVRXUFHV   /,$%,/,7,(6 $FFRXQWVSD\DEOH  $FFUXHGOLDELOLWLHV  $FFUXHGLQWHUHVW  'XHWRSULPDU\JRYHUQPHQW    8QHDUQHGUHYHQXH  'HSRVLWVSD\DEOH  1RQFXUUHQWOLDELOLWLHV 'XHZLWKLQRQH\HDU &RPSHQVDWHGDEVHQFHV  /HDVHOLDELOLW\ /RQJWHUPGHEW   &ODLPVDQGMXGJHPHQWV  'XHLQPRUHWKDQRQH\HDU &RPSHQVDWHGDEVHQFHV   /HDVHOLDELOLW\  /RQJWHUPGHEW   1HWSHQVLRQOLDELOLW\  727$//,$%,/,7,(6  '()(55(',1)/2:62)5(6285&(6 'HIHUUHGLQIORZVIURPSHQVLRQV   'HIHUUHGLQIORZVIURP23(%  'HIHUUHGLQIORZVIURPOHDVHV  7RWDO'HIHUUHG,QIORZVRI5HVRXUFHV  1(7326,7,21 1HWLQYHVWPHQWLQFDSLWDODVVHWV  5HVWULFWHGIRU 6SHFLDOSURMHFWV   &DSLWDOSURMHFWV   8QUHVWULFWHG GHILFLW    727$/1(7326,7,21    -81( 3ULPDU\*RYHUQPHQW 3DOP'HVHUW 5HFUHDWLRQDO )DFLOLWLHV &RUSRUDWLRQ 6HH1RWHVWR)LQDQFLDO6WDWHPHQWV17 Item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tem 1I-37 1HW ([SHQVHV 5HYHQXHVDQG&KDQJHVLQ1HW3RVLWLRQ 3ULPDU\*RYHUQPHQW &RPSRQHQW 8QLW *RYHUQPHQWDO %XVLQHVV7\SH $FWLYLWLHV $FWLYLWLHV 7RWDO                                                                                          3DOP'HVHUW 5HFUHDWLRQDO )DFLOLWLHV &RUSRUDWLRQ 6HH1RWHVWR)LQDQFLDO6WDWHPHQWV19 Item 1I-38 CITY OF PALM DESERT BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2022 General ASSETS: Pooled cash and investments 117,878,830$ 21,066,962$ 12,011,258$ 38,453,177$ Receivables: Accounts 2,602,944 - 365,410 - Assessments - - - - Notes 1,082,000 - - - Interest 650,233 - - 440,485 Allowance for interest on Successor Agency (160,355) - - (414,000) Loans 14,978 - - 5,148,813 Leases Receivable 806,697 - - - Prepaid costs 294,436 - - - Deposits - 14,880,428 - - Due from other governments 5,263,261 1,230,348 1,573,105 - Due from other funds 663,483 - - - Advances to other funds 2,659,000 - - - Inventories - - - - Property held for resale - - - 61,516 Due from component unit 420,000 - - - Restricted assets: Cash and investments with fiscal agent - - - 4,942,703 Advances to Successor Agency 581,000 - - - Allowance for Advances to Successor Agency (581,000) - - - TOTAL ASSETS 132,175,507$ 37,177,738$ 13,949,773$ 48,632,694$ Liabilities, Deferred Inflows of Resources and Fund Balances LIABILITIES: Accounts payable 6,921,457$ 197,970$ 1,257,634$ 9,864$ Accrued liabilities 484,994 - - - Unearned revenues - 14,880,428 - - Deposits payable 2,582,909 - - - Due to other funds - - - - Advances from other funds - - - - TOTAL LIABILITIES 9,989,360 15,078,398 1,257,634 9,864 DEFERRED INFLOWS OF RESOURCES: Unavailable revenue 1,504,879 280,889 9,827 19,551 Leases 800,415 - - - 2,305,294 280,889 9,827 19,551 FUND BALANCES: Nonspendable 4,050,414 - - - Restricted - 21,818,451 12,682,312 48,603,279 Committed 82,741,109 - - - Assigned 444,000 - - - Unassigned 32,645,330 - - - Total Fund Balances 119,880,853 21,818,451 12,682,312 48,603,279 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 132,175,507$ 37,177,738$ 13,949,773$ 48,632,694$ Housing Asset Fund Prop A Fire Tax Measure A Special Revenue Funds See Notes to Financial Statements.20 Item 1I-39 CITY OF PALM DESERT BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments Receivables: Accounts Assessments Notes Interest Allowance for interest on Successor Agency Loans Leases Receivable Prepaid costs Deposits Due from other governments Due from other funds Advances to other funds Inventories Property held for resale Due from component unit Restricted assets: Cash and investments with fiscal agent Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources and Fund Balances LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenue Leases FUND BALANCES: Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Special Revenue Funds Capital Projects Funds 16,366,298$ -$ 59,348,202$ 265,124,727$ 88,778 - 804,412 3,861,544 - - 1,139,582 1,139,582 - - -1,082,000 2 27,971 1,551,767 2,670,458 - - (1,495,645) (2,070,000) - - 1,435,167 6,598,958 - - - 806,697 - - 19,591 314,027 - - 20,000 14,900,428 - - 718,040 8,784,754 - - - 663,483 - - - 2,659,000 - - 7,813 7,813 - - - 61,516 - - - 420,000 3,570,258 49,592,308 19,611 58,124,880 - - 5,419,000 6,000,000 - - (5,419,000) (6,000,000) 20,025,336$ 49,620,279$ 63,568,540$ 365,149,867$ 126,773$ 976,752$ 2,061,453$ 11,551,903$ 130,660 - 11,669 627,323 71,627 - 635,111 15,587,166 571,220 - 3,780 3,157,909 - 451,138 212,345 663,483 - -1,159,000 1,159,000 900,280 1,427,890 4,083,358 32,746,784 - - 1,537,701 3,352,847 - - - 800,415 - - 1,537,701 4,153,262 - - 19,591 4,070,005 7,249,568 48,192,389 26,090,471 164,636,470 11,875,488 - 3,885,994 98,502,591 - - 28,078,039 28,522,039 - - (126,614) 32,518,716 19,125,056 48,192,389 57,947,481 328,249,821 20,025,336$ 49,620,279$ 63,568,540$ 365,149,867$ Other Governmental Funds Total Governmental Funds Capital Properties Housing Authority See Notes to Financial Statements.21 Item 1I-40 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 22 Item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tem 1I-42 CITY OF PALM DESERT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 General REVENUES: Taxes 67,555,404$ 3,483,227$ 8,914,785$ -$ Special assessments collected -- 2,130,793 - Licenses and permits 2,276,026 --- Intergovernmental revenues 6,059,797 620,792 1,210,837 - Rental income 168,172 --- Charges for services 2,197,579 - 2,869,233 - Investment earnings (1,932,581) (292,440) 42,141 85,001 Fines and forfeitures 99,864 --- Contributions from other governments ---- Miscellaneous 609,366 -514 75,353 TOTAL REVENUES 77,033,627 3,811,579 15,168,303 160,354 EXPENDITURES: Current: General government 19,737,905 --- Public safety 22,040,012 -15,017,227 - Parks, recreation and culture 4,750,198 --- Public works 6,025,962 480,908 -- Housing and redevelopment ---62,951 Capital outlay 176,287 3,667,005 15,603 113,000 Debt service: Principal retirement ---- Interest and fiscal charges ---- TOTAL EXPENDITURES 52,730,364 4,147,913 15,032,830 175,951 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 24,303,263 (336,334) 135,473 (15,597) OTHER FINANCING SOURCES (USES): Transfers in 3,774,873 - 4,000,000 - Transfers out (7,744,283) --- Leases 135,224 --- Contribution to other government (1,001,688) --- TOTAL OTHER FINANCING SOURCES (USES)(4,835,874) - 4,000,000 - NET CHANGE IN FUND BALANCES 19,467,389 (336,334) 4,135,473 (15,597) FUND BALANCES - BEGINNING OF YEAR 100,413,464 22,154,785 8,546,839 48,618,876 FUND BALANCES - END OF YEAR 119,880,853$ 21,818,451$ 12,682,312$ 48,603,279$ Measure A Prop A Fire Tax Housing Asset Fund Special Revenue Funds See Notes to Financial Statements.24 Item 1I-43 CITY OF PALM DESERT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Taxes Special assessments collected Licenses and permits Intergovernmental revenues Rental income Charges for services Investment earnings Fines and forfeitures Contributions from other governments Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Leases Contribution to other government TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Special Revenue Funds Capital Projects Funds -$-$4,083,775$ 84,037,191$ -- 1,276,314 3,407,107 --346,669 2,622,695 -- 4,408,645 12,300,071 7,893,204 -67,649 8,129,025 -- 1,108,688 6,175,500 7,168 64,555 (376,645)(2,402,801) --5,334 105,198 -- 1,974,653 1,974,653 -2,698,181 3,957,394 7,340,808 7,900,372 2,762,736 16,852,476 123,689,447 -2,855 6,254,855 25,995,615 --265,712 37,322,951 --2,688,209 7,438,407 -8,370,585 2,790,350 17,667,805 7,875,085 -294,404 8,232,440 -1,246,096 6,893,966 12,111,957 --378,000 378,000 --157,462 157,462 7,875,085 9,619,536 19,722,958 109,304,637 25,287 (6,856,800) (2,870,482) 14,384,810 -- 3,780,529 11,555,402 (245,356) - (3,874,873)(11,864,512) -- 2,468,060 2,603,284 ---(1,001,688) (245,356) - 2,373,716 1,292,486 (220,069) (6,856,800) (496,766) 15,677,296 19,345,125 55,049,189 58,444,247 312,572,525 19,125,056$ 48,192,389$ 57,947,481$ 328,249,821$ Other Governmental Funds Total Governmental Funds Housing Authority Capital Properties See Notes to Financial Statements.25 Item 1I-44 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 26 Item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tem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tem 1I-47 &,7<2)3$/0'(6(57 67$7(0(172)5(9(18(6(;3(16(6 $1'&+$1*(6,1)81'1(7326,7,21 35235,(7$5<)81'6   <($5(1'('-81( 23(5$7,1*5(9(18(6 )HHVDQGUHQWDOV     0LVFHOODQHRXV   0HUFKDQGLVHVDOHV     727$/23(5$7,1*5(9(18(6     23(5$7,1*(;3(16(6 *HQHUDODQGDGPLQLVWUDWLYH     &RVWRIPHUFKDQGLVH   0DLQWHQDQFHDQGRSHUDWLRQV     'HSUHFLDWLRQDQGDPRUWL]DWLRQ     727$/23(5$7,1*(;3(16(6     23(5$7,1*,1&20( /266      12123(5$7,1*5(9(18(6 (;3(16(6 ,QWHUHVWUHYHQXH        ,QWHUHVWH[SHQVH       /RVVRQGLVSRVDORIFDSLWDODVVHWV      727$/12123(5$7,1* 5(9(18(6 (;3(16(6         ,1&20( /266 %()25( &$3,7$/&2175,%87,216 75$16)(56    &$3,7$/&2175,%87,216  75$16)(56,1  &+$1*(,11(7326,7,21    1(7326,7,21%(*,11,1*2)<($5  1(7326,7,21(1'2)<($5  %XVLQHVV7\SH$FWLYLWLHV(QWHUSULVH)XQGV 0DMRU)XQGV 7RWDO (QWHUSULVH)XQGV *RYHUQPHQWDO $FWLYLWLHV ,QWHUQDO6HUYLFH )XQGV 3DUNYLHZ2IILFH &RPSOH[ 'HVHUW:LOORZ *ROI&RXUVH 6HH1RWHVWR)LQDQFLDO6WDWHPHQWV29 Item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tem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tem 1I-50 CITY OF PALM DESERT STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2022 Private-Purpose Trust Fund Custodial Funds Assets: Pooled cash and investments 7,651,337$ 15,102,115$ Receivables: Assessments 36,878,571 - Accrued interest 163 449 Prepaid costs - 1,347,027 Due from other governments 19,214 - Restricted assets: Cash and investments with fiscal agents 3,004,892 25,307,544 Capital assets: Capital assets, not being depreciated - 23,909,102 Total Assets 47,554,177 65,666,237 Liabilities: Accounts payable 1,500 402,743 Deposits payable 36,878,571 40,000 Long-term liabilities: Long-term debt due in one year - 19,045,000 Long-term debt due in more than one year - 163,475,440 Interest payable - 1,899,257 Total Liabilities 36,880,071 184,862,440 Deferred Inflows of Resources: Deferred charge on refunding - 309,637 Total Deferred Inflows or Resources - 309,637 Net Position: Restricted for dissolution of former RDA - (119,469,679) Restricted for other purposes 10,674,106 - Total Net Position 10,674,106$ (119,469,679)$ Successor Agency to the Palm Desert Redevelopment Agency Private- Purpose Trust Fund See Notes to Financial Statements.32 Item 1I-51 CITY OF PALM DESERT STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2022 ADDITIONS: Taxes 41,231,444$ 27,090,623$ Investment income (162,910) (234,123) Contributions from City 1,004,380 - Other - 251 TOTAL ADDITIONS 42,072,914 26,856,751 DEDUCTIONS Housing and development - 2,273,533 Administrative expenses 1,397,034 - Contractual services 44,760,282 - Interest 914,927 6,880,659 Debt service expense 110,000 - Loss on sale of capital assets - (440,108) TOTAL DEDUCTIONS 47,182,243 8,714,084 CHANGES IN NET POSITION (5,109,329) 18,142,667 NET POSITION - BEGINNING OF YEAR (31,296,565) (137,612,346) Restatement (Note: 21)47,080,000 - NET POSITION - BEGINNING OF YEAR RESTATED 15,783,435 (137,612,346) NET POSITION - END OF YEAR 10,674,106$ (119,469,679)$ Private-Purpose Trust Fund Successor Agency to the Palm Desert Redevelopment Agency Private- Purpose Trust Fund Custodial Funds See Notes to Financial Statements.33 Item 1I-52 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 34 Item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¶V RSHUDWLRQV 7KHUHIRUHWKH\DUHUHSRUWHGDVSDUWRIWKHSULPDU\JRYHUQPHQW'LVFUHWHO\SUHVHQWHG FRPSRQHQWXQLWVDUHUHSRUWHGLQDVHSDUDWHFROXPQLQWKHEDVLFILQDQFLDOVWDWHPHQWVWR HPSKDVL]HWKDWWKH\DUHOHJDOO\VHSDUDWHIURPWKH&LW\  %OHQGHG&RPSRQHQW8QLWV  )ROORZLQJ DUH GHVFULSWLRQV RI OHJDOO\ VHSDUDWH FRPSRQHQW XQLWVIRU ZKLFK WKH &LW\ LV ILQDQFLDOO\DFFRXQWDEOHWKDWDUHEOHQGHGZLWKWKH3ULPDU\*RYHUQPHQW7KHJRYHUQLQJ ERGLHVRIWKHVHFRPSRQHQWXQLWVDUHVXEVWDQWLDOO\WKHVDPHZLWKRSHUDWLRQDOUHVSRQVLELOLW\ DVWKH&LW\DQGSURYLGHVDILQDQFLDOEHQHILW  7KH 3DOP 'HVHUW +RXVLQJ $XWKRULW\ +RXVLQJ $XWKRULW\  ZDV HVWDEOLVKHG E\ WKH &LW\ &RXQFLO LQ -DQXDU\  DQG LV UHVSRQVLEOH IRU WKH DGPLQLVWUDWLRQ RI SURYLGLQJ DIIRUGDEOHKRXVLQJLQWKH&LW\7KH+RXVLQJ$XWKRULW\WUDQVDFWLRQVDUHUHSRUWHGLQWKH JRYHUQPHQWDOIXQGVEDODQFHVKHHWDVDPDMRUIXQG  7KH 3DOP 'HVHUW )LQDQFLQJ $XWKRULW\ )LQDQFLQJ $XWKRULW\  ZDV IRUPHG RQ -DQXDU\7KHSXUSRVHRIWKH)LQDQFLQJ$XWKRULW\LVWRLVVXHGHEWDQGORDQWKH SURFHHGVWRWKH&LW\DQG$JHQF\7KH)LQDQFLQJ$XWKRULW\¶VFDSLWDOUHODWHGWUDQVDFWLRQVDUH UHSRUWHGLQWKHJRYHUQPHQWDOIXQGILQDQFLDOVWDWHPHQWVLQWKHFDSLWDOSURMHFWVIXQGVDQG WKHFROOHFWLRQRIDVVHVVPHQWVDQGSD\PHQWVRIGHEWVHUYLFHLVUHFRUGHGLQWKHILGXFLDU\ IXQGV  7KH&LW\&RXQFLORI3DOP'HVHUWLVWKHJRYHUQLQJERG\IRUWKH+RXVLQJ$XWKRULW\DQG )LQDQFLQJ$XWKRULW\  6HSDUDWHILQDQFLDOVWDWHPHQWVDUHQRWLVVXHGIRUWKH+RXVLQJ$XWKRULW\DQG)LQDQFLQJ $XWKRULW\ 35 Item 1I-54 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV &RQWLQXHG   'LVFUHWHO\3UHVHQWHG&RPSRQHQW8QLW  7KH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ &RUSRUDWLRQ ZDVLQFRUSRUDWHGRQ )HEUXDU\7KHSXUSRVHRIWKH&RUSRUDWLRQLVWROHDVHRSHUDWHDQGPDQDJHD UHVWDXUDQWDQGEDULQWKH'HVHUW:LOORZ*ROI&RXUVHLQ3DOP'HVHUW&DOLIRUQLD7KH%RDUG RI'LUHFWRUVRIWKH&RUSRUDWLRQDSSRLQWVDQH[HFXWLYHGLUHFWRUWRDGPLQLVWHURSHUDWLRQV  7KH&RUSRUDWLRQLVLQDVHSDUDWHFROXPQWRHPSKDVL]HWKDWLWLVOHJDOO\VHSDUDWHIURPWKH &LW\ DQG LV ILQDQFLDOO\ DFFRXQWDEOH WR WKH &LW\ 7KH WZRPHPEHU ERDUG JRYHUQLQJ WKH &RUSRUDWLRQ LV DSSRLQWHG E\ WKH &LW\ &RXQFLO WKH &LW\ KDV DXWKRULW\ WR DSSURYH WKH &RUSRUDWLRQ¶VEXGJHWDQGWKH&LW\PXVWDSSURYHDQ\GHEWLVVXHG  &RPSOHWHILQDQFLDOVWDWHPHQWVRIWKH&RPSRQHQW8QLWFDQEHREWDLQHGIURPWKH&LW\¶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tem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¶V(QWHUSULVHIXQGVFRQVLVWRIWKH3DUNYLHZ2IILFH&RPSOH[DQG WKH'HVHUW:LOORZ*ROI&RXUVH'HVHUW:LOORZ*ROI&RXUVHLVRSHUDWHGE\DPDQDJHPHQW FRPSDQ\7KHGLVFUHWHO\SUHVHQWHG&RPSRQHQW8QLW¶VIXQGFRQVLVWVRIWKH3DOP'HVHUW 5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQDOVRRSHUDWHGE\DPDQDJHPHQWFRPSDQ\  ,QWHUQDO6HUYLFH)XQGV7KH,QWHUQDO6HUYLFH)XQGVDFFRXQWIRUILQDQFLDOWUDQVDFWLRQV UHODWHGWRUHSODFHPHQWRI&LW\RZQHGYHKLFOHVDQGHTXLSPHQWDQGWRIXQGFRPSHQVDWHG DEVHQFHV7KHVHVHUYLFHVDUHSURYLGHGWRRWKHUGHSDUWPHQWVRUDJHQFLHVRIWKH&LW\RQD FRVWUHLPEXUVHPHQWEDVLV 37 Item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¶VSURSHUW\RZQHUV7KHVHGHSRVLWVDUHUHGXFHGE\SD\PHQWVWRLQGLYLGXDOV  7KH&LW\¶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tem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³FXUUHQWILQDQFLDOUHVRXUFHV´PHDVXUHPHQWIRFXVRU WKH³HFRQRPLFUHVRXUFHV´PHDVXUHPHQWIRFXVLVXVHGDVDSSURSULDWH  $OOJRYHUQPHQWDOIXQGVXWLOL]HD³FXUUHQWILQDQFLDOUHVRXUFHV´PHDVXUHPHQWIRFXV2QO\ FXUUHQWILQDQFLDODVVHWVGHIHUUHGRXWIORZVRIUHVRXUFHVFXUUHQWOLDELOLWLHVDQGGHIHUUHG LQIORZVRIUHVRXUFHVDUHJHQHUDOO\LQFOXGHGRQWKHLUEDODQFHVKHHWV7KHLURSHUDWLQJ VWDWHPHQWV SUHVHQW VRXUFHV DQG XVHV RI DYDLODEOH VSHQGDEOH ILQDQFLDO UHVRXUFHV GXULQJDJLYHQSHULRG7KHVHIXQGVXVHIXQGEDODQFHDVWKHLUPHDVXUHRIDYDLODEOH VSHQGDEOHILQDQFLDOUHVRXUFHVDWWKHHQGRIWKHSHULRG  7KHSURSULHWDU\IXQGDQGSULYDWHSXUSRVHWUXVWIXQGDQGFXVWRGLDOIXQGVXWLOL]HDQ ³HFRQRPLFUHVRXUFHV´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³PHDVXUDEOHDQGDYDLODEOH´0HDVXUDEOHPHDQVNQRZLQJRUEHLQJDEOH WRUHDVRQDEO\HVWLPDWHWKHDPRXQW$YDLODEOHPHDQVFROOHFWLEOHZLWKLQWKHFXUUHQWSHULRG RUVRRQHQRXJKWKHUHDIWHUWRSD\FXUUHQWOLDELOLWLHV 39 Item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¶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¶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deferred outflows of resources UHSUHVHQWV D FRQVXPSWLRQRIQHWDVVHWVWKDWDSSOLHVWRIXWXUHSHULRGVDQGVRZLOOQRWEHUHFRJQL]HGDV DQRXWIORZRIUHVRXUFHV H[SHQVHH[SHQGLWXUH XQWLOWKDWWLPH7KH&LW\KDVWKHIROORZLQJ LWHPVWKDWTXDOLI\IRUUHSRUWLQJLQWKLVFDWHJRU\  x 'HIHUUHG DPRXQW RQ UHIXQGLQJ $ GHIHUUHG DPRXQW RQ UHIXQGLQJ UHVXOWV IURP WKH GLIIHUHQFHLQWKHFDUU\LQJYDOXHRIWKHUHIXQGHGGHEWDQGLWVUHDFTXLVLWLRQSULFH7KLV DPRXQW LV GHIHUUHG DQG DPRUWL]HG RYHU WKH VKRUWHU RI WKH OLIH RI WKH UHIXQGHG RU UHIXQGLQJGHEW  x 'HIHUUHGRXWIORZVUHODWHGWRSHQVLRQVDQG23(%7KLVDPRXQWLVHTXDOWRHPSOR\HU FRQWULEXWLRQVPDGHDIWHUWKHPHDVXUHPHQWGDWHRIWKHQHWSHQVLRQOLDELOLW\DQGQHW 23(%OLDELOLW\ DVVHW   x 'HIHUUHGRXWIORZVUHODWHGWRSHQVLRQVUHVXOWLQJIURPWKHGLIIHUHQFHLQSURMHFWHGDQG DFWXDO HDUQLQJV RQ LQYHVWPHQWV RI WKH SHQVLRQ SODQ ILGXFLDU\ QHW SRVLWLRQ 7KHVH DPRXQWVDUHDPRUWL]HGRYHUILYH\HDUV 40 Item 1I-59 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV &RQWLQXHG   x 'HIHUUHG RXWIORZV RI UHVRXUFHV UHODWHG WR SHQVLRQV DULVLQJ IURP D FKDQJH LQ DVVXPSWLRQV7KHVHDPRXQWVDUHDPRUWL]HGRYHUDFORVHGSHULRGHTXDOWRWKHDYHUDJH RI WKH H[SHFWHG UHPDLQLQJ VHUYLFH OLYHV RI DOO HPSOR\HHV WKDW DUH SURYLGHG ZLWK SHQVLRQVWKURXJKWKHSODQZKLFKLV\HDUV  ,QDGGLWLRQWROLDELOLWLHVWKHVWDWHPHQWRIQHWSRVLWLRQDQGWKHJRYHUQPHQWDOIXQGVEDODQFH VKHHWZLOOVRPHWLPHVUHSRUWDVHSDUDWHVHFWLRQIRUGHIHUUHGLQIORZVRIUHVRXUFHV7KLV VHSDUDWH ILQDQFLDO VWDWHPHQW HOHPHQWdeferred inflows of resources UHSUHVHQWV DQ DFTXLVLWLRQRIQHWDVVHWVWKDWDSSOLHVWRIXWXUHSHULRGVDQGZLOOQRWEHUHFRJQL]HGDVDQ LQIORZRIUHVRXUFHV UHYHQXH XQWLOWKDWWLPH7KH&LW\KDVWKHIROORZLQJLWHPVWKDWTXDOLI\ IRUUHSRUWLQJLQWKLVFDWHJRU\  x 'HIHUUHGLQIORZVIURPunavailable revenueZKLFKDULVHVXQGHUDPRGLILHGDFFUXDO EDVLVRIDFFRXQWLQJLVUHSRUWHGRQO\LQWKHJRYHUQPHQWDOIXQGEDODQFHVKHHW7KH JRYHUQPHQWDO IXQGV UHSRUW XQDYDLODEOH UHYHQXHV IURP WKH IROORZLQJ VRXUFHV UHQW LQYHVWPHQWLQFRPHJUDQWVQRWHVUHFHLYDEOHVFROOHFWLRQVDQGUHLPEXUVHPHQWV7KHVH DPRXQWVDUHXQDYDLODEOHDQGUHFRJQL]HGDVDQLQIORZRIUHVRXUFHVLQWKHSHULRGWKDW WKHDPRXQWVEHFRPHDYDLODEOH  x 'HIHUUHGLQIORZVUHODWHGWRSHQVLRQVIRUGLIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDO H[SHULHQFH7KHVHDPRXQWVDUHDPRUWL]HGRYHUDFORVHGSHULRGHTXDOWRWKHDYHUDJH RI WKH H[SHFWHG UHPDLQLQJ VHUYLFH OLYHV RI DOO HPSOR\HHV WKDW DUH SURYLGHG ZLWK SHQVLRQVWKURXJKWKHSODQZKLFKLV\HDUV  x 'HIHUUHG LQIORZV IURP SHQVLRQV UHVXOWLQJ IURP FKDQJHV LQ DVVXPSWLRQV 7KHVH DPRXQWVDUHDPRUWL]HGRYHUDFORVHGSHULRGHTXDOWRWKHDYHUDJHH[SHFWHGUHPDLQLQJ VHUYLFHOLYHVRIDOOHPSOR\HHVWKDWDUHSURYLGHGZLWKSHQVLRQVWKURXJKWKHSODQZKLFK LV\HDUV  x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x 7KHUHFRJQLWLRQSHULRGGLIIHUVGHSHQGLQJRQWKHVRXUFHRIWKHJDLQRUORVV  1HWGLIIHUHQFHEHWZHHQSURMHFWHGDQGDFWXDO HDUQLQJVRQ23(%SODQLQYHVWPHQWV \HDUVVWUDLJKWOLQHUHFRJQLWLRQ $OORWKHUDPRXQWV6WUDLJKWOLQHUHFRJQLWLRQRYHUWKHH[SHFWHG DYHUDJHUHPDLQLQJVHUYLFHOLIHWLPH ($56/  RI DOO PHPEHUV WKDW DUH SURYLGHG ZLWK EHQHILWVGHWHUPLQHGDVRIWKHEHJLQQLQJRI WKH0HDVXUHPHQW3HULRG,QGHWHUPLQLQJWKH ($56/ DOO DFWLYH UHWLUHG DQG LQDFWLYH YHVWHG  PHPEHUV DUH FRXQWHG ZLWK WKH ODWWHUWZRJURXSVKDYLQJUHPDLQLQJVHUYLFH \HDUV 41 Item 1I-60 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV &RQWLQXHG   H 1HW3RVLWLRQ)ORZ$VVXPSWLRQ  6RPHWLPHV WKH &LW\ ZLOO IXQG RXWOD\V IRU D SDUWLFXODU SXUSRVH IURP ERWK UHVWULFWHG HJUHVWULFWHGERQGRUJUDQWSURFHHGV DQGXQUHVWULFWHGUHVRXUFHV,QRUGHUWRFDOFXODWH WKHDPRXQWVWRUHSRUWDVUHVWULFWHGQHWSRVLWLRQDQGXQUHVWULFWHGQHWSRVLWLRQDIORZ DVVXPSWLRQPXVWEHPDGHDERXWWKHRUGHULQZKLFKWKHUHVRXUFHVDUHFRQVLGHUHGWREH DSSOLHG  ,WLVWKH&LW\¶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investment income UHSRUWHGIRUWKDWILVFDO \HDUInvestment income LQFOXGHVLQWHUHVWHDUQLQJVFKDQJHVLQIDLUYDOXHDQGDQ\JDLQV RUORVVHVUHDOL]HGXSRQWKHOLTXLGDWLRQPDWXULW\RUVDOHRILQYHVWPHQWV 42 Item 1I-61 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV &RQWLQXHG   L &DVKDQG,QYHVWPHQWV  )RUSXUSRVHVRIWKHVWDWHPHQWRIFDVKIORZVWKH&LW\KDVGHILQHGFDVKDQGLQYHVWPHQWVWR LQFOXGHFDVKRQKDQGGHPDQGGHSRVLWVLQYHVWPHQWVKHOGLQYDULRXVLQVWUXPHQWVDQG LQYHVWPHQWVKHOGLQWKH&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG /$,) &DOLIRUQLD$VVHW 0DQDJHPHQW 3URJUDP &$03  DQG 5LYHUVLGH &RXQW\ 7UHDVXUHU¶V 3RROHG ,QYHVWPHQW )XQG  M (PSOR\HH&RPSHQVDWHG$EVHQFHV  ,W LV WKH JRYHUQPHQW¶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tem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¶V&DOLIRUQLD3XEOLF(PSOR\HHV¶5HWLUHPHQW6\VWHP &DO3(56 SODQV 3ODQV  DQG DGGLWLRQV WRGHGXFWLRQV IURP WKH 3ODQV¶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¶V EHVW HVWLPDWHV DQG MXGJPHQWV 7KH ILQDQFLDO VWDWHPHQWV LQFOXGH HVWLPDWHVIRUWKHYDOXHRIWKHFDSLWDODVVHWV LQIUDVWUXFWXUH GHSUHFLDWLRQH[SHQVHWKHIDLU YDOXHRILQYHVWPHQWVWKHDPRXQWVUHSRUWHGIRUWKHQHWSHQVLRQOLDELOLW\DQGUHODWHGLWHPV 1RWH WKHDPRXQWVUHSRUWHGIRUWKHQHWSHQVLRQOLDELOLW\QHW23(%OLDELOLW\ DVVHW DQG UHODWHGLWHPV 1RWH DQGFODLPVSD\DEOH 1RWH $FFRUGLQJO\DFWXDOUHVXOWVFRXOG GLIIHUIURPWKHHVWLPDWHV 44 Item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¶VSRVLWLRQLQWKHSRROLVUHSRUWHGRQWKHFRPELQHGEDODQFHVKHHWDVFDVK DQGLQYHVWPHQWV7KH&LW\KDVDGRSWHGDQLQYHVWPHQWSROLF\ZKLFKDXWKRUL]HVLWWRLQYHVWLQ YDULRXVLQYHVWPHQWV  'HSRVLWV   $W-XQHWKHFDUU\LQJDPRXQWRIWKHGHSRVLWVZDVDQGWKHEDQNEDODQFH ZDV7KHGLIIHUHQFHUHSUHVHQWVRXWVWDQGLQJFKHFNVGHSRVLWVLQWUDQVLW DQGRWKHUUHFRQFLOLQJLWHPV  7KH&DOLIRUQLD*RYHUQPHQW&RGHUHTXLUHV&DOLIRUQLDEDQNVDQGVDYLQJVDQGORDQDVVRFLDWLRQV WRVHFXUHDQ(QWLW\¶VGHSRVLWVE\SOHGJLQJJRYHUQPHQWVHFXULWLHVZLWKDYDOXHRIRIDQ (QWLW\¶VGHSRVLWV&DOLIRUQLDODZDOVRDOORZVILQDQFLDOLQVWLWXWLRQVWRVHFXUHGHSRVLWVE\SOHGJLQJ ILUVWWUXVWGHHGPRUWJDJHQRWHVKDYLQJDYDOXHRIRIWRWDOGHSRVLWV7KH&LW\7UHDVXUHU PD\ZDLYHWKHFROODWHUDOUHTXLUHPHQWIRUGHSRVLWVWKDWDUHIXOO\LQVXUHGXSWRE\WKH )',&7KHFROODWHUDOIRUGHSRVLWVLQIHGHUDODQGVWDWHFKDUWHUHGEDQNVLVKHOGLQVDIHNHHSLQJE\ DQDXWKRUL]HG$JHQWRI'HSRVLWRU\UHFRJQL]HGE\WKH6WDWHRI&DOLIRUQLD'HSDUWPHQWRI%DQNLQJ 7KHFROODWHUDOIRUGHSRVLWVZLWKVDYLQJVDQGORDQDVVRFLDWLRQVLVJHQHUDOO\KHOGLQVDIHNHHSLQJ E\WKH)HGHUDO+RPH/RDQ%DQNLQ6DQ)UDQFLVFR&DOLIRUQLDDVDQ$JHQWRI'HSRVLWRU\7KHVH VHFXULWLHVDUHSK\VLFDOO\KHOGLQDQXQGLYLGHGSRROIRUDOO&DOLIRUQLDSXEOLFDJHQF\GHSRVLWRUV  45 Item 1I-64 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH &DVKDQG,QYHVWPHQWV &RQWLQXHG   8QGHU*RYHUQPHQW&RGH6HFWLRQWKHSODFHPHQWRIVHFXULWLHVE\DEDQNRUVDYLQJVDQG ORDQDVVRFLDWLRQZLWKDQ$JHQWRI'HSRVLWRU\KDVWKHHIIHFWRISHUIHFWLQJWKHVHFXULW\LQWHUHVWLQ WKHQDPHRIWKHORFDOJRYHUQPHQWDODJHQF\$FFRUGLQJO\DOOFROODWHUDOKHOGE\&DOLIRUQLD$JHQWV RI'HSRVLWRU\DUHFRQVLGHUHGWREHKHOGIRUDQGLQWKHQDPHRIWKHORFDOJRYHUQPHQWDODJHQF\  ,QYHVWPHQWV  8QGHU SURYLVLRQ RI WKH &LW\¶V LQYHVWPHQW SROLF\ DQG LQ DFFRUGDQFH ZLWK WKH &DOLIRUQLD*RYHUQPHQW&RGHWKHIROORZLQJLQYHVWPHQWVDUHDXWKRUL]HG  x 8QLWHG6WDWHV7UHDVXU\ELOOVQRWHVERQGVRUFHUWLILFDWHVRILQGHEWHGQHVV x 8QLWHG 6WDWHV JRYHUQPHQWVSRQVRUHG DJHQF\ REOLJDWLRQV SDUWLFLSDWLRQV RU RWKHU LQVWUXPHQWV x &DOLIRUQLD6WDWHDQG/RFDO$JHQF\'HEW x &RPPHUFLDO3DSHULVVXHGE\JHQHUDOFRUSRUDWLRQV x 1HJRWLDEOH&HUWLILFDWHVRI'HSRVLWVLVVXHGE\DQDWLRQDOO\RUVWDWHFKDUWHUHGEDQND VDYLQJVDVVRFLDWLRQDIHGHUDODVVRFLDWLRQRUE\DVWDWHOLFHQVHGEUDQFKRIDIRUHLJQ EDQN x 7LPH&HUWLILFDWHVRI'HSRVLWLVVXHGE\TXDOLILHGSXEOLFGHSRVLWRULHV x 5HSXUFKDVH$JUHHPHQWVVROGE\DXWKRUL]HGEURNHUV x 0HGLXPWHUP 1RWHV LVVXHG E\ FRUSRUDWLRQV RUJDQL]HG DQG RSHUDWLQJ LQ WKH 8QLWHG6WDWHVRUE\GHSRVLWRU\LQVWLWXWLRQVRSHUDWLQJLQWKH8QLWHG6WDWHVDQGOLFHQVHG E\WKH8QLWHG6WDWHVRUE\DQ\VWDWH x 0RQH\0DUNHW0XWXDO)XQGVWKDWDUHUHJLVWHUHGZLWKWKH6(&XQGHUWKH,QYHVWPHQW $FWRI x 6WDWHRI&DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG /$,) WKDWLVPDQDJHGE\WKH 6WDWH7UHDVXUHU¶V2IILFH x 6WUXFWXUHG 1RWHV LQ WKH IRUP RI FDOODEOH VHFXULWLHV RU ³675,36´ LVVXHG E\ WKH 8QLWHG6WDWHV7UHDVXU\)HGHUDO$JHQFLHVRUJRYHUQPHQWVSRQVRUHGHQWHUSULVHV x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¶V,QYHVWRU6HUYLFHV 0RRG\¶V 3HUPLVVLEOH &LW\LQYHVWPHQWVLQFOXGHPHGLXPWHUPQRWHVWKDWDUHUDWHG³$´RUKLJKHUDWWLPHRISXUFKDVH FRPPHUFLDOSDSHUWKDWLVUDWHG³$´RUWKHHTXLYDOHQWPRQH\PDUNHWPXWXDOIXQGVWKDWDUH UDWHG³$$$´DQG8QLWHG6WDWHV*RYHUQPHQWDQG)HGHUDO$JHQF\VHFXULWLHV WKHTXDOLW\RI 8QLWHG6WDWHV7UHDVXU\VHFXULWLHVLVQRWDQDO\]HGVLQFHWKH\DUHQRWGHHPHGWRKDYHFUHGLW ULVN     46 Item 1I-65 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH &DVKDQG,QYHVWPHQWV &RQWLQXHG   *HQHUDOO\FUHGLWULVNLVWKHULVNWKDWDQLVVXHURIDQLQYHVWPHQWZLOOQRWIXOILOOLWVREOLJDWLRQWRWKH KROGHURIWKHLQYHVWPHQW7KLVLVPHDVXUHGE\WKHDVVLJQPHQWRIDUDWLQJE\DQDWLRQDOO\ UHFRJQL]HGVWDWLVWLFDOUDWLQJRUJDQL]DWLRQ3UHVHQWHGEHORZLVWKHPLQLPXPUDWLQJUHTXLUHG ZKHQDSSOLFDEOHE\WKH&DOLIRUQLD*RYHUQPHQW&RGHWKH&LW\¶VLQYHVWPHQWSROLF\RUGHEW DJUHHPHQWVDQGWKHUDWLQJE\6WDQGDUGDQG3RRU¶V)LWFKDQG0RRG\¶VDVRI\HDUHQGIRUHDFK LQYHVWPHQWW\SH  3ULPDU\*RYHUQPHQW  ,QYHVWPHQW7\SH 7RWDODVRI -XQH 0LQLPXP /HJDO 5DWLQJ $DD $$$2WKHU 8QUDWHG &DOLIRUQLD/RFDO$JHQF\ ,QYHVWPHQW)XQG 1$  &DOLIRUQLD$VVHW0DQDJHPHQW 3URJUDP 1$  5LYHUVLGH&RXQW\7UHDVXUHU V 3RROHG,QYHVWPHQW)XQG 1$  86*RYHUQPHQW6SRQVRUHG $JHQF\6HFXULWLHV 1$  0HGLXP7HUP&RUSRUDWH1RWHV $  +HOGE\)LVFDO$JHQW 0RQH\0DUNHW'HSRVLW$FFRXQW 1$  7RWDO  7KHUDWLQJVIRUWKH³2WKHU´FDWHJRU\DERYHDUHDVIROORZV  $D $%%%7RWDO 0HGLXP7HUP&RUSRUDWH1RWHV ,QYHVWPHQW7\SH  )LGXFLDU\)XQGV  ,QYHVWPHQW7\SH 7RWDODVRI -XQH 0LQLPXP /HJDO 5DWLQJ $DD $$$8QUDWHG &DOLIRUQLD/RFDO$JHQF\,QYHVWPHQW)XQG  1$ &DOLIRUQLD$VVHW0DQDJHPHQW3URJUDP 1$ 5LYHUVLGH&RXQW\7UHDVXUHU V3RROHG,QYHVWPHQW)XQG 1$ ,QYHVWPHQWLQ&LW\%RQGV6XFFHVVRU$JHQF\5'$1$  +HOGE\)LVFDO$JHQW 0RQH\0DUNHW'HSRVLW$FFRXQWV 6XFFHVVRU$JHQF\5'$1$  0RQH\0DUNHW'HSRVLW$FFRXQWV$VVHVVPHQW'LVWULFW 1$  7RWDO  47 Item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¶VGHSRVLWVRULQYHVWPHQWVZHUHH[SRVHGWRFXVWRGLDO FUHGLWULVN  &RQFHQWUDWLRQRI&UHGLW5LVN  7KH&LW\¶VLQYHVWPHQWSROLF\LPSRVHVUHVWULFWLRQVRQWKHSHUFHQWDJHWKH&LW\FDQLQYHVWLQ FHUWDLQ W\SHV RI LQYHVWPHQWV ZKLFK WKH &LW\ LV LQ FRPSOLDQFH$V RI -XQH   LQ DFFRUGDQFHZLWK*$6%6WDWHPHQW1RLIWKH&LW\KDVLQYHVWHGPRUHWKDQRILWVWRWDO LQYHVWPHQWVLQDQ\RQHLVVXHUWKHQWKH\DUHH[SRVHGWRFRQFHQWUDWLRQRIFUHGLWULVN7KH&LW\LV QRWLQYHVWHGLQDQ\RQHLVVXHUWKDWLVPRUHWKDQRILWVWRWDOLQYHVWPHQWV  7KH&LW\¶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¶VSROLF\LVPRUHFRQVHUYDWLYHWKDQVWDWHODZZKLFKKDVQRLVVXHUFRQFHQWUDWLRQOLPLWV RQIHGHUDODJHQF\GHEW  48 Item 1I-67 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH &DVKDQG,QYHVWPHQWV &RQWLQXHG   ,QWHUHVW5DWH5LVN  7KH&LW\¶VLQYHVWPHQWSROLF\OLPLWVLQYHVWPHQWPDWXULWLHVDVDPHDQVRIPDQDJLQJLWVH[SRVXUH WRIDLUYDOXHORVVHVDULVLQJIURPLQFUHDVLQJLQWHUHVWUDWHV7KH&LW\¶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¶V LQYHVWPHQW LQ WKLV SRRO LV UHSRUWHG LQ WKH DFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVDWDPRXQWVEDVHGXSRQWKH&LW\¶VSURUDWDVKDUHRIWKHIDLU YDOXHSURYLGHGE\/$,)IRUWKHHQWLUH/$,)SRUWIROLR LQUHODWLRQWRWKHDPRUWL]HGFRVWRIWKDW SRUWIROLR 7KHEDODQFHDYDLODEOHIRUZLWKGUDZDOLVEDVHGRQWKHDFFRXQWLQJUHFRUGVPDLQWDLQHG E\/$,)ZKLFKDUHUHFRUGHGRQDQDPRUWL]HGFRVWEDVLV 49 Item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¶VDFFRXQW7KH3RROVHHNVWRPDLQWDLQEXW GRHVQRWJXDUDQWHHDFRQVWDQWQHWDVVHWYDOXHRISHUVKDUH$3DUWLFLSDQWPD\ZLWKGUDZ IXQGVIURPLWV3RRODFFRXQWVDWDQ\WLPHE\FKHFNRUZLUHWUDQVIHUV5HTXHVWVIRUVDPHGD\ ZLUHWUDQVIHUVPXVWEHPDGHE\DPWKDWGD\)DLUYDOXHRIWKH3RROLVGHWHUPLQHGE\ WKHIDLUYDOXHSHUVKDUHRIWKH3RRO¶VXQGHUO\LQJSRUWIROLR  ,QYHVWPHQWLQ5LYHUVLGH&RXQW\7UHDVXUHU¶V3RROHG,QYHVWPHQW)XQG  7KH&LW\LVDYROXQWDU\SDUWLFLSDQWLQWKH5LYHUVLGH&RXQW\7UHDVXUHU¶V3RROHG,QYHVWPHQW)XQG 3RROHG )XQG  7KH IDLU YDOXH RI WKH &LW\¶V LQYHVWPHQW LQ WKLVSRRO LV UHSRUWHG LQ WKH DFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVDWDPRXQWVEDVHGXSRQWKH&LW\¶VSURUDWDVKDUHRIWKHIDLU YDOXHWKDWWKH5LYHUVLGH&RXQW\7UHDVXUHU¶V2IILFHKDVSURYLGHGIRUWKHHQWLUH3RROHG)XQG LQUHODWLRQWRWKHDPRUWL]HGFRVWRIWKDWSRUWIROLR 7KHEDODQFHDYDLODEOHIRUZLWKGUDZDOLVEDVHG XSRQWKHDFFRXQWLQJUHFRUGVWKDWWKH5LYHUVLGH&RXQW\7UHDVXUHU¶V2IILFHPDLQWDLQVZKLFKDUH UHFRUGHGRQDQDPRUWL]HGFRVWEDVLV  )DLU9DOXH0HDVXUHPHQWV  7KH&LW\FDWHJRUL]HVLWVIDLUYDOXHPHDVXUHPHQWZLWKLQWKHIDLUYDOXHKLHUDUFK\HVWDEOLVKHGE\ JHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV7KHKLHUDUFK\LVEDVHGRQWKHUHODWLYHLQSXWVXVHGWR PHDVXUHWKHIDLUYDOXHRIWKHLQYHVWPHQWV7KHKLHUDUFK\JLYHVWKHKLJKHVWSULRULW\WRXQDGMXVWHG TXRWHGSULFHVLQDFWLYHPDUNHWVIRULGHQWLFDODVVHWV /HYHOPHDVXUHPHQWV DQGWKHORZHVW SULRULW\WRXQREVHUYDEOHLQSXWV /HYHOPHDVXUHPHQWV   7KHWKUHHOHYHOVRIWKHIDLUYDOXHKLHUDUFK\DUHGHVFULEHGDVIROORZV  /HYHO,QSXWVWRWKHYDOXDWLRQPHWKRGRORJ\DUHXQDGMXVWHGTXRWHGSULFHVIRULGHQWLFDO DVVHWVLQDFWLYHPDUNHWVWKDWWKH&LW\KDVWKHDELOLW\WRDFFHVV  /HYHO,QSXWVWRWKHYDOXDWLRQPHWKRGRORJ\LQFOXGH  x 4XRWHGSULFHVIRUVLPLODUDVVHWVLQDFWLYHPDUNHWV x 4XRWHGSULFHVIRULGHQWLFDORUVLPLODUDVVHWVLQLQDFWLYHPDUNHWV x ,QSXWVRWKHUWKDQTXRWHGSULFHVWKDWDUHREVHUYDEOHIRUWKHDVVHW x ,QSXWVWKDWDUHGHULYHGSULQFLSDOO\IURPRUFRUURERUDWHGE\REVHUYDEOHPDUNHW GDWDE\FRUUHODWLRQRURWKHUPHDQV 50 Item 1I-69 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH &DVKDQG,QYHVWPHQWV &RQWLQXHG   /HYHO,QSXWVWRWKHYDOXDWLRQPHWKRGRORJ\DUHXQREVHUYDEOHDQGVLJQLILFDQWWRWKHIDLU YDOXH PHDVXUHPHQW 8QREVHUYDEOH LQSXWV UHIOHFW WKH &LW\¶V RZQ DVVXPSWLRQV DERXW WKH LQSXWV PDUNHW SDUWLFLSDQWV ZRXOG XVH LQ SULFLQJ WKH DVVHW LQFOXGLQJDVVXPSWLRQVDERXWULVN 8QREVHUYDEOHLQSXWVDUHGHYHORSHGEDVHGRQ WKHEHVWLQIRUPDWLRQDYDLODEOHLQWKHFLUFXPVWDQFHVDQGPD\LQFOXGHWKH&LW\¶V RZQGDWD  7KHDVVHW¶VOHYHOZLWKLQWKHKLHUDUFK\LVEDVHGRQWKHORZHVWOHYHORILQSXWWKDWLVVLJQLILFDQWWR WKH IDLU YDOXH PHDVXUHPHQW 9DOXDWLRQ WHFKQLTXHV XVHG QHHG WR PD[LPL]H WKH XVH RI REVHUYDEOHLQSXWVDQGPLQLPL]HWKHXVHRIXQREVHUYDEOHLQSXWV  7KH GHWHUPLQDWLRQ RI ZKDW FRQVWLWXWHV REVHUYDEOH UHTXLUHV MXGJPHQW E\ WKH &LW\¶V PDQDJHPHQW&LW\PDQDJHPHQWFRQVLGHUVREVHUYDEOHGDWDWREHWKDWPDUNHWGDWDZKLFKLV UHDGLO\DYDLODEOHUHJXODUO\GLVWULEXWHGRUXSGDWHGUHOLDEOHDQGYHULILDEOHQRWSURSULHWDU\DQG SURYLGHGE\PXOWLSOHLQGHSHQGHQWVRXUFHVWKDWDUHDFWLYHO\LQYROYHGLQWKHUHOHYDQWPDUNHW  7KHFDWHJRUL]DWLRQRIDQLQYHVWPHQWZLWKLQWKHKLHUDUFK\LVEDVHGXSRQWKHUHODWLYHREVHUYDELOLW\ RI WKH LQSXWV WR LWV IDLU YDOXH PHDVXUHPHQW DQG GRHV QRW QHFHVVDULO\ FRUUHVSRQG WR &LW\ PDQDJHPHQW¶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¶VDVVHWPDQDJHUIURPWKLUGSDUW\VHUYLFHSURYLGHU  7KHIROORZLQJLVDGHVFULSWLRQRIWKHUHFXUULQJYDOXDWLRQPHWKRGVDQGDVVXPSWLRQVXVHGE\WKH &LW\WRHVWLPDWHWKHIDLUYDOXHRILWVLQYHVWPHQWV  )RUDODUJHSRUWLRQRIWKH&LW\¶VSRUWIROLRWKH&LW\¶VFXVWRGLDQDSSOLHVWKHLUOHYHOLQJPHWKRGRORJ\ DFURVVDOOVHFXULWLHVLQDVSHFLILFVHFWRU LH86*RYHUQPHQW6SRQVRUHG$JHQF\6HFXULWLHV  ,QSXWVWRWKHLUSULFLQJPRGHOVDUHEDVHGRQREVHUYDEOHPDUNHWLQSXWVLQDFWLYHPDUNHWV  7KH 6XFFHVVRU $JHQF\ )RUPHU 5'$¶V LQYHVWPHQW LQ &LW\ ERQGV LV QRW WUDGDEOH DQG LV FDWHJRUL]HGLQ/HYHO:KHQYDOXLQJ/HYHOVHFXULWLHVWKHLQSXWVRUPHWKRGRORJ\DUHQRW QHFHVVDULO\DQLQGLFDWLRQRIWKHULVNVDVVRFLDWHGZLWKLQYHVWLQJLQWKRVHVHFXULWLHV&KDQJHVLQ YDOXDWLRQWHFKQLTXHVPD\UHVXOWLQWUDQVIHUVLQWRRURXWRIDQDVVLJQHGOHYHOZLWKLQWKHGLVFORVXUH KLHUDUFK\ 51 Item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¶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tem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tem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tem 1I-73 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH ,QWHUIXQG5HFHLYDEOHV3D\DEOH$GYDQFHVDQG7UDQVIHUV  7KHFRPSRVLWLRQRILQWHUIXQGEDODQFHVDVRI-XQHZDVDVIROORZV  'XH7R)URP2WKHU)XQGV  'XH7R 'XH)URP $PRXQW *HQHUDO)XQG 2WKHU*RYHUQPHQWDO)XQGV  &DSLWDO3URSHUWLHV    7KHDPRXQWVORDQHGIURPWKH*HQHUDO)XQGWRQRQPDMRUJRYHUQPHQWDOIXQGVDQGFDSLWDO SURSHUWLHVZHUHWRFRYHUFDVKVKRUWIDOODW\HDUHQGDVRI-XQH  $GYDQFHV7R)URP2WKHU)XQGV  $GYDQFH7R $GYDQFH)URP $PRXQW *HQHUDO)XQG 2WKHU*RYHUQPHQWDO)XQGV  'HVHUW:LOORZ*ROI&RXUVH    7KH*HQHUDO)XQGDGYDQFHGWRWKH(QHUJ\,QGHSHQGHQFH6SHFLDO5HYHQXH)XQG WRSD\RIIWKHERQGVXVHGWRIXQGHQHUJ\HIILFLHQF\ORDQHGWR'HVHUW:LOORZ*ROI &RXUVHWRIXQGWKHGDLO\RSHUDWLRQVLQFOXGLQJWKHGDLO\RSHUDWLRQVRIWKHUHVWDXUDQW  'XH7R)URP&RPSRQHQW8QLW 'XH)URP &RPSRQHQW 8QLW 0DMRU)XQGV *HQHUDO)XQG  'HVHUW:LOORZ*ROI&RXUVH   7KHUHFHLYDEOHE\WKH*HQHUDO)XQGLVIRUUHQWRZHGE\WKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV &RUSRUDWLRQ 3'5)& DQGWKHUHFHLYDEOHE\WKH'HVHUW:LOORZ*ROI&RXUVHUHSUHVHQWVIXQGV ORDQHGWR3'5)&IRURSHUDWLRQ 55 Item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±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tem 1I-75 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH &DSLWDO$VVHWV &RQWLQXHG  $VXPPDU\RIFKDQJHVLQFDSLWDODVVHWVDW-XQHZDVDVIROORZV  3ULPDU\*RYHUQPHQW±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tem 1I-76 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH /RQJ7HUP'HEW  7KHIROORZLQJLVDVXPPDU\RIORQJWHUPOLDELOLW\WUDQVDFWLRQVRIWKH&LW\IRUWKH\HDUHQGHG -XQH  3ULPDU\*RYHUQPHQW±*RYHUQPHQWDO$FWLYLWLHV  %DODQFH -XQH $GGLWLRQV 5HGXFWLRQV %RQG&DOOV %DODQFH -XQH 'XH:LWKLQ 2QH<HDU 'LUHFW%RUURZLQJ 6SHFLDODVVHVVPHQWGHEWZLWK JRYHUQPHQWFRPPLWPHQW        /LPLWHGREOLJDWLRQLPSURYHPHQWERQGV         7RWDO         'HEWVHUYLFHSD\PHQWVIRUWKHVSHFLDODVVHVVPHQWGHEWZLWKJRYHUQPHQWFRPPLWPHQWWD[ DOORFDWLRQERQGVDQGQRWHVSD\DEOHDUHPDGHIURPGHEWVHUYLFHIXQGVDQGDVSHFLDOUHYHQXH IXQG  7KH &LW\ KLVWRULFDOO\ DOORFDWHV FRVWV WR OLTXLGDWH OLDELOLWLHVIRU FRPSHQVDWHG DEVHQFHV DQG SHQVLRQOLDELOLW\EDVHGRQWKHDOORFDWLRQRIWKHHPSOR\HHVHDUQLQJWKHUHVSHFWLYHEHQHILWVDQG WKHLUUHVSHFWLYHSD\UROOH[SHQVHWRYDULRXVIXQGDFURVVWKH&LW\  6SHFLDO$VVHVVPHQW'HEWZLWK*RYHUQPHQW&RPPLWPHQW  +LJKODQGV8QGHUJURXQGLQJ$VVHVVPHQW'LVWULFW1R/LPLWHG2EOLJDWLRQ,PSURYHPHQW %RQGV6HULHV  2Q$XJXVWWKH&LW\3DOP'HVHUWLVVXHGRI/LPLWHG2EOLJDWLRQ%RQGV7KH SURFHHGVRIWKH%RQGVZHUHXVHGWRILQDQFHWKHFRQVWUXFWLRQRIWKHXWLOLW\XQGHUJURXQGLQJDQG SD\WKHFRVWRILVVXDQFH7KHGHEWVHUYLFHRQWKHERQGVLVWREHSDLGE\DVVHVVPHQWVVHFXUHG RQWKHSURSHUW\WD[UROOVRIWKRVHSURSHUWLHVEHQHILWLQJIURPWKHLPSURYHPHQWV,QWKHHYHQWWKDW DVVHVVPHQW FROOHFWLRQV DUH LQVXIILFLHQW WR SD\ WKH GHEW VHUYLFH WKH &LW\ KDV D SRWHQWLDO REOLJDWLRQ WR SURYLGH DGGLWLRQDO IXQGV WR SD\ WKH GHEW VHUYLFH WKHUHIRUH WKHVH ERQGV DUH UHSRUWHGDVVSHFLDODVVHVVPHQWGHEWZLWKJRYHUQPHQWFRPPLWPHQW%RQGPDWXULWLHVEHJLQ 6HSWHPEHUDQGFRQWLQXHDQQXDOO\WKURXJK7KHLQWHUHVWUDWHVRIWKHERQGVUDQJH IURPWR7KH&LW\RI3DOP'HVHUWLVWKHRQO\ERQGKROGHURQUHFRUGRIWKHERQGV DQGWKH&LW\GRHVQRWRZQWKHFRQVWUXFWHGDVVHWV  7KHIXWXUHGHEWVHUYLFHUHTXLUHPHQWVRQWKH+LJKODQGV8QGHUJURXQGLQJ$VVHVVPHQW'LVWULFW 1R/LPLWHG2EOLJDWLRQ,PSURYHPHQW%RQGV6HULHVDUHDVIROORZV  <HDU(QGLQJ -XQH 3ULQFLSDO ,QWHUHVW            7RWDO  58 Item 1I-77 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH /RQJ7HUP'HEW &RQWLQXHG   /LPLWHG2EOLJDWLRQ%RQGV  /LPLWHG2EOLJDWLRQ,PSURYHPHQW%RQGV6HULHV$ 7D[DEOH   2Q-DQXDU\WKH&LW\LVVXHG/LPLWHG2EOLJDWLRQ,PSURYHPHQW%RQGV 6HULHV$ 7D[DEOH 7KHSURFHHGVRIWKH%RQGVZHUHXVHGWRIXQGWKH&LW\¶V(QHUJ\ ,QGHSHQGHQFH3URJUDP&RQFXUUHQWZLWKWKHLVVXDQFHRIWKH%RQGVWKH&LW\HQWHUHGLQWRD ERQGSXUFKDVHDJUHHPHQWZLWKWKH$JHQF\ZKHUHE\WKH$JHQF\DJUHHGWRSXUFKDVHWKH%RQGV HTXDOWRSDUYDOXH  7KH 6HULHV $ 7D[DEOH  ERQGV FRQVLVW RI  6HULDO %RQGV ZLWK LQWHUHVW DW  SD\DEOH VHPLDQQXDOO\ RQ 6HSWHPEHU  DQG 0DUFK  %RQG PDWXULWLHV FRPPHQFHG 6HSWHPEHUDQGFRQWLQXHDQQXDOO\WKURXJK6HSWHPEHU  7KH IXWXUH GHEW VHUYLFH UHTXLUHPHQWV RQ WKH /LPLWHG 2EOLJDWLRQ,PSURYHPHQW %RQGV 6HULHV$ 7D[DEOH DUHDVIROORZV  <HDU(QGLQJ -XQH 3ULQFLSDO ,QWHUHVW 7RWDO                       7RWDO    /LPLWHG2EOLJDWLRQ,PSURYHPHQW%RQGV6HULHV% 7D[DEOH   2Q6HSWHPEHUWKH&LW\LVVXHG/LPLWHG2EOLJDWLRQ,PSURYHPHQW%RQGV 6HULHV% 7D[DEOH 7KHSURFHHGVRIWKH%RQGVZHUHXVHGWRIXQGWKH&LW\¶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tem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tem 1I-79 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH /HDVHV  7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQW1RLQWKHILVFDO\HDUHQGHG-XQH7KH SULPDU\REMHFWLYHRIWKLVVWDWHPHQWLVWRHQKDQFHWKHUHOHYDQFHDQGFRQVLVWHQF\RILQIRUPDWLRQ DERXWJRYHUQPHQWV OHDVLQJDFWLYLWLHV7KLVVWDWHPHQWHVWDEOLVKHVDVLQJOHPRGHOIRUOHDVH DFFRXQWLQJEDVHGRQWKHSULQFLSOHWKDWOHDVHVDUHILQDQFLQJVRIWKHULJKWWRXVHDQXQGHUO\LQJ DVVHW8QGHUWKLV6WDWHPHQWDOHVVHHLVUHTXLUHGWRUHFRJQL]HDOHDVHOLDELOLW\DQGDQLQWDQJLEOH ULJKWWRXVHOHDVHDVVHWDQGDOHVVRULVUHTXLUHGWRUHFRJQL]HDOHDVHUHFHLYDEOHDQGDGHIHUUHG LQIORZRIUHVRXUFHV)RUDGGLWLRQDOLQIRUPDWLRQUHIHUWRWKHGLVFORVXUHVEHORZ  /HDVHV5HFHLYDEOHDQG'HIHUUHG,QIORZVRI5HVRXUFHV  2Q-XO\&LW\RI3DOP'HVHUW&DOLIRUQLDHQWHUHGLQWRDPRQWKOHDVHDV/HVVRUIRU WKHXVHRI&LYLF&HQWHU&HOO7RZHU$QLQLWLDOOHDVHUHFHLYDEOHZDVUHFRUGHGLQWKHDPRXQWRI $VRI-XQHWKHYDOXHRIWKHOHDVHUHFHLYDEOHLV7KHOHVVHHLV UHTXLUHG WR PDNH PRQWKO\ IL[HG SD\PHQWV RI  7KH OHDVH KDV DQ LQWHUHVW UDWH RI7KH/DQGHVWLPDWHGXVHIXOOLIHZDVPRQWKVDVRIWKHFRQWUDFWFRPPHQFHPHQW 7KH YDOXH RI WKH GHIHUUHG LQIORZ RI UHVRXUFHV DV RI -XQH   ZDV  DQG &LW\RI3DOP'HVHUW&DOLIRUQLDUHFRJQL]HGOHDVHUHYHQXHRIGXULQJWKHILVFDO\HDU7KH OHVVHHKDVH[WHQVLRQRSWLRQ V HDFKIRUPRQWKV  2Q-XO\&LW\RI3DOP'HVHUW&DOLIRUQLDHQWHUHGLQWRDPRQWKOHDVHDV/HVVRUIRU WKHXVHRI6RFFHU3DUN$QLQLWLDOOHDVHUHFHLYDEOHZDVUHFRUGHGLQWKHDPRXQWRI $VRI-XQHWKHYDOXHRIWKHOHDVHUHFHLYDEOHLV7KHOHVVHHLVUHTXLUHGWR PDNHDQQXDOIL[HGSD\PHQWVRI7KHOHDVHKDVDQLQWHUHVWUDWHRI7KH/DQG HVWLPDWHGXVHIXOOLIHZDVPRQWKVDVRIWKHFRQWUDFWFRPPHQFHPHQW7KHYDOXHRIWKH GHIHUUHGLQIORZRIUHVRXUFHVDVRI-XQHZDVDQG&LW\RI3DOP'HVHUW &DOLIRUQLDUHFRJQL]HGOHDVHUHYHQXHRIGXULQJWKHILVFDO\HDU  2Q-XO\&LW\RI3DOP'HVHUW&DOLIRUQLDHQWHUHGLQWRDPRQWKOHDVHDV/HVVRUIRU WKHXVHRI&URZQ&DVWOH&HOO7RZHU&RRN6W#'HVHUW:LOORZ$QLQLWLDOOHDVHUHFHLYDEOHZDV UHFRUGHGLQWKHDPRXQWRI$VRI-XQHWKHYDOXHRIWKHOHDVHUHFHLYDEOHLV 7KHOHVVHHLVUHTXLUHGWRPDNHDQQXDOIL[HGSD\PHQWVRI7KHOHDVHKDVDQ LQWHUHVWUDWHRI7KH/DQGHVWLPDWHGXVHIXOOLIHZDVPRQWKVDVRIWKHFRQWUDFW FRPPHQFHPHQW7KHYDOXHRIWKHGHIHUUHGLQIORZRIUHVRXUFHVDVRI-XQHZDV DQG&LW\RI3DOP'HVHUW&DOLIRUQLDUHFRJQL]HGOHDVHUHYHQXHRIGXULQJWKH ILVFDO\HDU7KHOHVVHHKDVH[WHQVLRQRSWLRQ V HDFKIRUPRQWKV  2Q-XO\&LW\RI3DOP'HVHUW&DOLIRUQLDHQWHUHGLQWRDPRQWKOHDVHDV/HVVRUIRU WKHXVHRI7KH9LQH\DUGV&RPPHUFLDO&HQWHU$QLQLWLDOOHDVHUHFHLYDEOHZDVUHFRUGHGLQWKH DPRXQWRI$VRI-XQHWKHYDOXHRIWKHOHDVHUHFHLYDEOHLV7KH OHVVHHLVUHTXLUHGWRPDNHDQQXDOIL[HGSD\PHQWVRI7KHOHDVHKDVDQLQWHUHVWUDWH RI  7KH %XLOGLQJV HVWLPDWHG XVHIXO OLIH ZDV  PRQWKV DV RI WKH FRQWUDFW FRPPHQFHPHQW7KHYDOXHRIWKHGHIHUUHGLQIORZRIUHVRXUFHVDVRI-XQHZDV DQG&LW\RI3DOP'HVHUW&DOLIRUQLDUHFRJQL]HGOHDVHUHYHQXHRIGXULQJWKH ILVFDO\HDU 61 Item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tem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tem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tem 1I-83 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH &ODLPVDQG-XGJHPHQWV3D\DEOH  (VWLPDWHVIRUDOOZRUNHUV¶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¶VJHQHUDOFUHGLWRUV$VDUHVXOWWKH DVVHWVLQWKHDPRXQWRIKHOGE\156DQG,&0$RIWKH3ODQDUHQRWUHIOHFWHG LQWKH&LW\¶VILQDQFLDOVWDWHPHQWV  1RWH 3HQVLRQ3ODQ  D *HQHUDO,QIRUPDWLRQDERXWWKH3HQVLRQ3ODQ  3ODQ'HVFULSWLRQ  $OOTXDOLILHGSHUPDQHQWDQGSUREDWLRQDU\HPSOR\HHVDUHHOLJLEOHWRSDUWLFLSDWHLQWKH&LW\¶V 0LVFHOODQHRXV3ODQDJHQWPXOWLSOHHPSOR\HUGHILQHGEHQHILWSHQVLRQSODQVDGPLQLVWHUHG E\ WKH &DOLIRUQLD 3XEOLF (PSOR\HHV¶ 5HWLUHPHQW 6\VWHP &DO3(56  ZKLFK DFWV DV D FRPPRQ LQYHVWPHQW DQG DGPLQLVWUDWLYH DJHQW IRU LWV SDUWLFLSDWLQJ PHPEHU HPSOR\HUV %HQHILWSURYLVLRQVXQGHUWKH3ODQDUHHVWDEOLVKHGE\6WDWHVWDWXWHDQG&LW\UHVROXWLRQ &DO3(56LVVXHVSXEOLFO\DYDLODEOHUHSRUWVWKDWLQFOXGHDIXOOGHVFULSWLRQRIWKHSHQVLRQSODQ UHJDUGLQJEHQHILWSURYLVLRQVDVVXPSWLRQVDQGPHPEHUVKLSLQIRUPDWLRQWKDWFDQEHIRXQG RQWKH&DO3(56ZHEVLWH  65 Item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¶5HWLUHPHQW /DZ  7KH3ODQ¶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¶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tem 1I-85 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 3HQVLRQ3ODQ &RQWLQXHG   E 1HW3HQVLRQ/LDELOLW\  7KH&LW\¶VQHWSHQVLRQOLDELOLW\IRUWKH3ODQLVPHDVXUHGDVWKHWRWDOSHQVLRQOLDELOLW\OHVV WKHSHQVLRQSODQ¶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³*$6%&URVVRYHU7HVWLQJ5HSRUW´WKDWFDQEHREWDLQHGIURPWKH &DO3(56ZHEVLWHXQGHUWKH*$6%VHFWLRQ  7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSHQVLRQSODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJ DEXLOGLQJEORFNPHWKRGLQZKLFKEHVWHVWLPDWHUDQJHVRIH[SHFWHGIXWXUHUHDOUDWHVRI UHWXUQ H[SHFWHG UHWXUQV QHW RI SHQVLRQ SODQ LQYHVWPHQW H[SHQVH DQG LQIODWLRQ  DUH GHYHORSHGIRUHDFKPDMRUDVVHWFODVV 67 Item 1I-86 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 3HQVLRQ3ODQ &RQWLQXHG   ,QGHWHUPLQLQJWKHORQJWHUPH[SHFWHGUDWHRIUHWXUQ&DO3(56WRRNLQWRDFFRXQWERWK VKRUWWHUPDQGORQJWHUPPDUNHWUHWXUQH[SHFWDWLRQVDVZHOODVWKHH[SHFWHGSHQVLRQIXQG FDVKIORZV6XFKFDVKIORZVZHUHGHYHORSHGDVVXPLQJWKDWERWKPHPEHUVDQGHPSOR\HUV ZLOOPDNHWKHLUUHTXLUHGFRQWULEXWLRQVRQWLPHDQGDVVFKHGXOHGLQDOOIXWXUH\HDUV8VLQJ KLVWRULFDOUHWXUQVRIDOOWKHIXQGV¶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tem 1I-87 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 3HQVLRQ3ODQ &RQWLQXHG   6HQVLWLYLW\RIWKH1HW3HQVLRQ/LDELOLW\WR&KDQJHVLQWKH'LVFRXQW5DWH  7KHIROORZLQJSUHVHQWVWKHQHWSHQVLRQOLDELOLW\RIWKH&LW\IRUWKH3ODQFDOFXODWHGXVLQJWKH GLVFRXQWUDWHIRUWKH3ODQDVZHOODVZKDWWKH&LW\¶VQHWSHQVLRQOLDELOLW\ZRXOGEHLILWZHUH FDOFXODWHGXVLQJDGLVFRXQWUDWHWKDWLVSHUFHQWDJHSRLQWORZHURUSHUFHQWDJHSRLQW KLJKHUWKDQWKHFXUUHQWUDWH  'HFUHDVH  1HW3HQVLRQ/LDELOLW\ &XUUHQW'LVFRXQW5DWH  1HW3HQVLRQ/LDELOLW\ ,QFUHDVH  1HW3HQVLRQ/LDELOLW\ 3HQVLRQ3ODQ)LGXFLDU\1HW3RVLWLRQ  'HWDLOHGLQIRUPDWLRQDERXWWKHSHQVLRQSODQ¶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tem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tem 1I-89 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH )XQG%DODQFHV &RQWLQXHG   7KHIXQGEDODQFHVUHSRUWHGRQWKHIXQGVWDWHPHQWVQRZFRQVLVWRIWKHIROORZLQJFDWHJRULHV  1RQVSHQGDEOH7KLVFODVVLILFDWLRQLQFOXGHVDPRXQWVWKDWFDQQRWEHVSHQWEHFDXVHWKH\DUH HLWKHU D QRWLQVSHQGDEOHIRUPRU E OHJDOO\RUFRQWUDFWXDOO\UHTXLUHGWREHPDLQWDLQHGLQWDFW  5HVWULFWHG7KLVFODVVLILFDWLRQLQFOXGHVDPRXQWVWKDWFDQEHVSHQWRQO\IRUVSHFLILFSXUSRVHV VWLSXODWHGE\FRQVWLWXWLRQH[WHUQDOUHVRXUFHSURYLGHUVRUWKURXJKHQDEOLQJOHJLVODWLRQ  &RPPLWWHG  7KLV FODVVLILFDWLRQ LQFOXGHV DPRXQWV WKDW FDQ EH XVHG RQO\ IRU WKH VSHFLILF SXUSRVHVGHWHUPLQHGE\DIRUPDODFWLRQRIWKH&LW\&RXQFLO7KH&LW\FRQVLGHUVWKHDGRSWLRQRI DUHVROXWLRQWRLQVWLWXWHDIRUPDODFWLRQRI&LW\&RXQFLOIRUWKHSXUSRVHRIHVWDEOLVKLQJPRGLI\LQJ RUUHVFLQGLQJFRPPLWWHGIXQGEDODQFHV  $VVLJQHG7KLVFODVVLILFDWLRQLQFOXGHVDPRXQWVWREHXVHGE\WKHJRYHUQPHQWIRUVSHFLILF SXUSRVHVEXWGRQRWPHHWWKHFULWHULDWREHFODVVLILHGDVUHVWULFWHGRUFRPPLWWHG7KLVLQFOXGHV DPRXQWVWKDWDUHDVVLJQHGWKURXJKDGRSWLRQRIDUHVROXWLRQE\&LW\&RXQFLO7KH&RXQFLOPD\ GHOHJDWHWKHDELOLW\RIDQHPSOR\HHRUFRPPLWWHHWRDVVLJQXVHVRIVSHFLILFIXQGVIRUVSHFLILF SXUSRVHV6XFKGHOHJDWLRQRIDXWKRULW\RFFXUUHGRQ6HSWHPEHUWKDQGZLOOEHLQHIIHFW IRUIXWXUHILVFDO\HDUV  8QDVVLJQHG7KLVFODVVLILFDWLRQLQFOXGHVWKHUHVLGXDOEDODQFHIRUWKHJRYHUQPHQW¶VJHQHUDO IXQGDQGLQFOXGHVDOOVSHQGDEOHDPRXQWVQRWFRQWDLQHGLQRWKHUFODVVLILFDWLRQV,QRWKHUIXQGV WKH XQDVVLJQHG FODVVLILFDWLRQ LV XVHG RQO\ WR UHSRUW D GHILFLWEDODQFH UHVXOWLQJ IURP RYHUVSHQGLQJ IRU VSHFLILF SXUSRVHV IRU ZKLFK DPRXQWV KDG EHHQ UHVWULFWHG FRPPLWWHG RU DVVLJQHG  :KHQDQH[SHQGLWXUHLVLQFXUUHGIRUSXUSRVHVIRUZKLFKERWKUHVWULFWHGDQGXQUHVWULFWHGIXQG EDODQFHVDUHDYDLODEOHWKH&LW\¶VSROLF\LVWRDSSO\UHVWULFWHGIXQGEDODQFHILUVW  :KHQDQH[SHQGLWXUHLVLQFXUUHGIRUSXUSRVHVIRUZKLFKFRPPLWWHGDVVLJQHGRUXQDVVLJQHG IXQGEDODQFHVDUHDYDLODEOHWKH&LW\¶VSROLF\LVWRDSSO\FRPPLWWHGIXQGEDODQFHILUVWWKHQ DVVLJQHGIXQGEDODQFHDQGILQDOO\XQDVVLJQHGIXQGEDODQFH  1RWH 5LVN0DQDJHPHQW  D 'HVFULSWLRQRI6HOI,QVXUDQFH3RRO3XUVXDQWWR-RLQW3RZHU$JUHHPHQW  7KH&LW\RI3DOP'HVHUWLVDPHPEHURIWKH&DOLIRUQLD-RLQW3RZHUV,QVXUDQFH$XWKRULW\ $XWKRULW\ 7KH$XWKRULW\LVFRPSRVHGRI&DOLIRUQLDSXEOLFHQWLWLHVDQGLVRUJDQL]HG XQGHUDMRLQWSRZHUVDJUHHPHQWSXUVXDQWWR&DOLIRUQLD*RYHUQPHQW&RGH†HWVHT 7KHSXUSRVHRIWKH$XWKRULW\LVWRDUUDQJHDQGDGPLQLVWHUSURJUDPVIRUWKHSRROLQJRI VHOILQVXUHGORVVHVWRSXUFKDVHH[FHVVLQVXUDQFHRUUHLQVXUDQFHDQGWRDUUDQJHIRUJURXS SXUFKDVHG LQVXUDQFH IRU SURSHUW\ DQG RWKHU OLQHV RI FRYHUDJH 7KH $XWKRULW\ EHJDQ FRYHULQJFODLPVRILWVPHPEHUVLQ(DFKPHPEHUJRYHUQPHQWKDVDQHOHFWHGRIILFLDO DVLWVUHSUHVHQWDWLYHRQWKH%RDUGRI'LUHFWRUVZKLFKRSHUDWHVWKURXJKDQLQHPHPEHU ([HFXWLYH&RPPLWWHH 71 Item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¶VWRWDOLQFXUUHGFRVWVZLWKLQWKH ILUVW OD\HU   7KH VHFRQG OD\HU RI ORVVHV LQFOXGHV LQFXUUHG FRVWV IURP  WR IRUHDFKRFFXUUHQFHDQGLVHYDOXDWHGDVDSHUFHQWDJHRIWKHSRRO¶VWRWDOLQFXUUHG FRVWV ZLWKLQ WKH VHFRQG OD\HU   ,QFXUUHG FRVWV IURP  WR  PLOOLRQ DUH GLVWULEXWHGEDVHGRQWKHRXWFRPHRIFRVWDOORFDWLRQZLWKLQWKHILUVWDQGVHFRQGORVVOD\HUV  7KHRYHUDOOFRYHUDJHOLPLWIRUHDFKPHPEHULQFOXGLQJDOOOD\HUVRIFRYHUDJHLVPLOOLRQ SHU RFFXUUHQFH 6XEVLGHQFH ORVVHV KDYH D OLPLW RI  PLOOLRQ SHU RFFXUUHQFH 7KH FRYHUDJHVWUXFWXUHLVFRPSRVHGRIDFRPELQDWLRQRISRROHGVHOILQVXUDQFHUHLQVXUDQFH DQG H[FHVV LQVXUDQFH $GGLWLRQDO LQIRUPDWLRQ FRQFHUQLQJ WKH FRYHUDJH VWUXFWXUH LV DYDLODEOHRQWKH$XWKRULW\¶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¶VWRWDOLQFXUUHGFRVWVZLWKLQWKH ILUVWOD\HU  7KHVHFRQGOD\HURIORVVHVLQFOXGHVLQFXUUHGFRVWVIURPWR IRUHDFKRFFXUUHQFHDQGLVHYDOXDWHGDVDSHUFHQWDJHRIWKHSRRO¶VWRWDOLQFXUUHGFRVWV ZLWKLQWKHVHFRQGOD\HU  ,QFXUUHGFRVWVLQH[FHVVIURPWRVWDWXWRU\OLPLWVDUH GLVWULEXWHGEDVHGRQWKHRXWFRPHRIFRVWDOORFDWLRQZLWKLQWKHILUVWDQGVHFRQGORVVOD\HUV  )RUWKH$XWKRULW\¶VSRROHGUHWHQWLRQLVPLOOLRQSHURFFXUUHQFHZLWKUHLQVXUDQFH WRVWDWXWRU\OLPLWVXQGHU&DOLIRUQLD:RUNHUV¶&RPSHQVDWLRQ/DZ(PSOR\HU V/LDELOLW\ORVVHV DUH SRROHG DPRQJ PHPEHUV WR  PLOOLRQ &RYHUDJH IURP  PLOOLRQ WR  PLOOLRQ LV SXUFKDVHGDVSDUWRIDUHLQVXUDQFHSROLF\DQG(PSOR\HU V/LDELOLW\ORVVHVIURPPLOOLRQ WRPLOOLRQDUHSRROHGDPRQJPHPEHUV 72 Item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¶VSURSHUW\LVFXUUHQWO\LQVXUHGDFFRUGLQJWRDVFKHGXOHRIFRYHUHG SURSHUW\VXEPLWWHGE\WKH&LW\RI3DOP'HVHUWWRWKH$XWKRULW\7KH&LW\RI3DOP'HVHUW¶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ajor Governmental Funds 0HDVXUH $ 6SHFLDO 5HYHQXH )XQG KDV  LQ IXQGV UHFHLYHG IURP WKH 6XFFHVVRU $JHQF\ WKDW DUH GHHPHG XQHDUQHG XQWLO H[SHQGLWXUHV DUH LQFXUUHG UHODWHG WR FRQVWUXFWLRQRILQWHUFKDQJH 73 Item 1I-92 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 8QHDUQHG5HYHQXHVDQG'HIHUUHG,QIORZVRI5HVRXUFHV &RQWLQXHG   +RXVLQJ$XWKRULW\6SHFLDO5HYHQXH)XQGKDVRWKHUDPRXQWVUHSRUWHGDVXQHDUQHGUHYHQXHV LQFOXGHIRUSUHSDLGUHQWV Other Governmental Funds  6SHFLDO5HYHQXH)XQGV   RI JUDQW IXQGV DUH GHHPHG XQHDUQHG XQWLO H[SHQGLWXUHVDUH LQFXUUHG LQ WKH 3XEOLF6DIHW\3ROLFH*UDQWV)XQG   RI JUDQW IXQGV DUH GHHPHG XQHDUQHG XQWLO H[SHQGLWXUHV DUH LQFXUUHG LQ WKH 5HF\FOLQJ)XQG  &DSLWDO3URMHFWV)XQG  &DSLWDO3URMHFWV5HVHUYHIXQGKDVRIXQHDUQHGUHYHQXHUHSUHVHQWVGHSRVLWVIRU VWUHHW LPSURYHPHQWV DQG SXEOLF IDFLOLWLHV DV WKH IXQGV KDYH QRW EHHQ VSHQW DV RI -XQH  Business-type Activities  7KHEDODQFHRIUHSUHVHQWVWKHXQXVHGSRUWLRQVRISUHSDLGJROIIHHVDQGYDOXHRI XQUHGHHPHGJLIWFHUWLILFDWHV  7KHEDODQFHRIUHSUHVHQWVWKHXQHDUQHGUHQWIRUWKH3DUNYLHZ2IILFH Component Unit  7KHEDODQFHRIUHSUHVHQWVWKHXQXVHGSRUWLRQVRISUHSDLGEDQTXHWV  'HIHUUHG,QIORZVRI5HVRXUFHV Major Governmental Funds  *HQHUDO)XQG  2Q0DUFKWKH&LW\HQWHUHGLQWRDQDJUHHPHQWZLWKVXEVHTXHQWDPHQGPHQWVRQ -XQH0D\DQG0D\ZLWKWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV &RUSRUDWLRQ &RUSRUDWLRQ IRUWKHXVHRISURSHUW\DWWKH&LW\¶V*ROI5HVRUW 'HVHUW:LOORZ  3D\PHQWLVGXHZKHQWKH&RUSRUDWLRQ¶VUHYHQXHVH[FHHGLWVH[SHQVHV$W-XQHWKH &RUSRUDWLRQRZHGWKH&LW\UHQWWRWDOLQJZKLFKZLOOEHUHFRJQL]HGDVUHYHQXHE\WKH &LW\ZKHQWKHUHQWLVSDLGE\WKH&RUSRUDWLRQ  7KH&LW\HQWHUHGLQWRVHYHUDOLQGLYLGXDOORDQDJUHHPHQWVZLWKUHVLGHQWVRIWKH+LJKODQGV8WLOLW\ 8QGHUJURXQGLQJ$VVHVVPHQW'LVWULFW1R7KHUHVLGHQWVDJUHHGWRSD\WRWKH&LW\WKHIXOO FRVWRIWKHORDQDPRXQWSOXVDQ\DFFUXHGLQWHUHVWDWDUDWHRI7KHIXOODPRXQWRIWKH ORDQDORQJZLWKDOODFFUXHGLQWHUHVWLVGXHDQGSD\DEOHDWWKHHDUOLHVWRI6HSWHPEHURU DQ\FKDQJHLQRZQHUVKLSRIWKHSURSHUW\$VRI-XQHLQLQWHUHVWKDVEHHQ DFFUXHG5HFRJQLWLRQRIWKHLQWHUHVWUHYHQXHKDVEHHQUHSRUWHGDVXQDYDLODEOHXQWLOLWEHFRPHV GXH 74 Item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ther Governmental Funds 6SHFLDO5HYHQXH)XQGV  ,QWHUHVWDFFUXHGRQORDQVRIRQORDQVUHFHLYDEOHWKURXJKWKH&LW\¶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¶5HWLUHH%HQHILW7UXVW )XQG &(5%7 DQDJHQWPXOWLSOHHPSOR\HUGHILQHGEHQHILWKHDOWKFDUHSODQDGPLQLVWHUHG E\WKH&DOLIRUQLD3XEOLF(PSOR\HHV¶5HWLUHPHQW6\VWHP &DO3(56   $OOIXOOWLPHRUSDUWWLPHHPSOR\HHVZKRPHHWWKHHOLJLELOLW\UHTXLUHPHQWVIRUWKLVSURJUDP PD\ FRQWLQXH WKHLU PHGLFDO FRYHUDJH WKURXJK WKH &DO3(56 +HDOWK3ODQ DQG UHFHLYH UHLPEXUVHPHQWIURPWKH&LW\IRUDSRUWLRQRIWKHFRVWVIRUWKHFRYHUDJH6HSDUDWHILQDQFLDO VWDWHPHQWVIRUWKH&(5%7PD\EHREWDLQHGE\ZULWLQJWR&DO3(56DW/LQFROQ3OD]D1RUWK  4 6WUHHW 6DFUDPHQWR &DOLIRUQLD  RU E\ YLVLWLQJ WKH&DO3(56 ZHEVLWH DW ZZZFDOSHUVFDJRY  75 Item 1I-94 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 2WKHU3RVW(PSOR\PHQW%HQHILWV &RQWLQXHG   (PSOR\HHV+LUHG3ULRUWR-DQXDU\  (OLJLELOLW\IRUWKHVWLSHQGUHTXLUHVUHWLUHPHQWVLPXOWDQHRXVO\IURPWKH&LW\DQG&DO3(56RQ RU DIWHU DJH  ZLWK DW OHDVW  FRQVHFXWLYH \HDUV RI VHUYLFH ZLWK WKH &LW\ (OLJLEOH HPSOR\HHVPXVWEHFRYHUHGXQGHUWKH&DO3(56+HDOWK3ODQDWWKHWLPHRIUHWLUHPHQWDQG HOHFWWRSDUWLFLSDWHLQWKHVWLSHQGSURJUDPZLWKLQGD\VRIUHWLUHPHQW  7KH&LW\¶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¶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¶V,&0$5HWLUHPHQW+HDOWK6DYLQJV$FFRXQW(PSOR\HHVKDYH DPDQGDWRU\FRQWULEXWLRQWRWKH5HWLUHPHQW+HDOWK6DYLQJV3ODQDQGWKH&LW\PDWFKHV WKH  FRQWULEXWLRQ ,Q DGGLWLRQ DQ HPSOR\HH FDQ SDUWLFLSDWH LQ WKH ,&0$ $ *RYHUQPHQWDO0RQH\3XUFKDVH3ODQZLWKDPD[LPXPSUHWD[GROODUFRQWULEXWLRQRI ZLWKWKH&LW\PD[LPXPPDWFKRI 76 Item 1I-95 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 2WKHU3RVW(PSOR\PHQW%HQHILWV &RQWLQXHG   $VRI-XQHWKHGDWHRIWKHPRVWUHFHQWDFWXDULDOYDOXDWLRQWKH&LW\ VSODQKDV DFWLYHHPSOR\HHV  Employees Covered - 3ODQPHPEHUVKLSDW-XQHYDOXDWLRQGDWHPHPEHUVKLS FRQVLVWHGRIWKHIROORZLQJ  ,QDFWLYHSODQPHPEHUVRUEHQHILFLDULHV  $FWLYHSODQPHPEHUV  E &LW\&RQWULEXWLRQVWRWKH3ODQ  &LW\ FRQWULEXWLRQV WR WKH 3ODQ RFFXU DV EHQHILWV DUH SDLG WR UHWLUHHV DQGRU WR WKH 23(%WUXVW  F 1HW23(%$VVHW  7KH&LW\¶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±WRWKHH[WHQWWKDW WKH23(%SODQ¶VILGXFLDU\QHWSRVLWLRQ LIDQ\ LVSURMHFWHGWREHVXIILFLHQWWRPDNH SURMHFWHGEHQHILWSD\PHQWVDQGDVVHWVDUHH[SHFWHGWREHLQYHVWHGXVLQJDVWUDWHJ\WR DFKLHYHWKDWUHWXUQ  E  $\LHOGRULQGH[UDWHIRU\HDUWD[H[HPSWJHQHUDOREOLJDWLRQPXQLFLSDOERQGVZLWK DQ DYHUDJH UDWLQJ RI $$$D RU KLJKHU ± WR WKH H[WHQW WKDW WKH FRQGLWLRQV LQ D DUHQRWPHW 77 Item 1I-96 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 2WKHU3RVW(PSOR\PHQW%HQHILWV &RQWLQXHG   H &KDQJHVLQWKH1HW23(%/LDELOLW\ $VVHW   7KHFKDQJHVLQWKH1HW23(%OLDELOLW\ $VVHW IRUWKH3ODQDUHDVIROORZV  7RWDO23(% /LDELOLW \ 3ODQ)LGXFLDU\ 1HW3RVLWLRQ 1HW23(% /LDELOLW \ $VVHW %DODQFHDW-XQH 0HDVXUHPHQW'DWH    &KDQJHVUHFRJQL]HGIRUWKHPHDVXUHPHQWSHULRG 6HUYLFH&RVW  ,QWHUHVW  ([SHFWHG,QYHVWPHQW,QFRPH     (PSOR\HU&RQWULEXWLRQV     &KDQJHVRIEHQHILWWHUPV     $GPLQLVWUDWLYH([SHQVHV    %HQHILW3D\PHQWV     $VVXPSWLRQ&KDQJHV   1HW&KDQJHVLQ)LVFDO<HDU   %DODQFHDW-XQH 0HDVXUHPHQW'DWH    ,QFUHDVH 'HFUHDVH   I 6HQVLWLYLW\RIWKH7RWDO23(%/LDELOLW\DQG1HW23(%/LDELOLW\ $VVHW WR&KDQJHVLQ WKH'LVFRXQW5DWH  7KHIROORZLQJSUHVHQWVWKH7RWDO23(%OLDELOLW\DQG1HW23(%OLDELOLW\ DVVHW DVZHOODV ZKDWWKHWRWDO23(%OLDELOLW\DQGQHW23(%OLDELOLW\ DVVHW ZRXOGEHLIWKH\ZHUHFDOFXODWHG XVLQJDGLVFRXQWUDWHWKDWLVSHUFHQWDJHSRLQWORZHU SHUFHQW RUSHUFHQWDJHSRLQW KLJKHU SHUFHQW WKDQWKHFXUUHQWGLVFRXQWUDWH  'LVFRXQW5DWH  &XUUHQW'LVFRXQW5DWH  'LVFRXQW5DWH  7RWDO23(%/LDELOLW\   1HW23(%/LDELOLW\ $VVHW       J 6HQVLWLYLW\RIWKH7RWDO23(%/LDELOLW\DQG1HW23(%/LDELOLW\ $VVHW WR&KDQJHVLQ WKH+HDOWK&DUH&RVW7UHQG5DWHV  7KHIROORZLQJSUHVHQWVWKH7RWDO23(%OLDELOLW\DQGQHW23(%OLDELOLW\ DVVHW DVZHOODV ZKDW WKH 7RWDO 23(% OLDELOLW\ DQG QHW 23(% OLDELOLW\ DVVHW  ZRXOG EH LI WKH\ ZHUH FDOFXODWHG XVLQJ KHDOWKFDUH FRVW WUHQG UDWHV WKDW DUH SHUFHQWDJHSRLQW ORZHU  SHUFHQW GHFUHDVLQJ WR  SHUFHQW  RU SHUFHQWDJHSRLQW KLJKHU  SHUFHQW LQFUHDVLQJWRSHUFHQW WKDQWKHFXUUHQWKHDOWKFDUHFRVWWUHQGUDWHV  'HFUHDVH 7UHQG5DWH ,QFUHDVH 7RWDO23(%/LDELOLW\    1HW23(%/LDELOLW\        78 Item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tem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¶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tem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³%RQGV´  DUH EHLQJ LVVXHG E\ &LW\RI3DOP'HVHUW&RPPXQLW\)DFLOLWLHV'LVWULFW1R 8QLYHUVLW\3DUN  WKH³'LVWULFW´ WR SURYLGH IXQGV L  WR UHIXQG D SRUWLRQ RI WKH 'LVWULFW¶V RXWVWDQGLQJ 6SHFLDO 7D[ %RQGV 6HULHV$ WKH³%RQGV´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tem 1I-100 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 6SHFLDO$VVHVVPHQW'HEW &RQWLQXHG   6HFWLRQ$VVHVVPHQW'LVWULFW 1R /LPLWHG2EOLJDWLRQ,PSURYHPHQW%RQGV 6HULHV  ,Q0DUFKWKH&LW\RI3DOP'HVHUWLVVXHG/LPLWHG2EOLJDWLRQ,PSURYHPHQW %RQGV7KHSURFHHGVRIWKH%RQGVZLOOEHXVHGWRILQDQFHFHUWDLQLQIUDVWUXFWXUHLPSURYHPHQWV ZLWKLQWKH&LW\¶V6HFWLRQ$VVHVVPHQW'LVWULFW 1R 7KHGHEWVHUYLFHRQWKHERQGV LVWREHSDLGE\DVVHVVPHQWVVHFXUHGRQWKHSURSHUW\WD[UROOVRIWKRVHSURSHUWLHVEHQHILWLQJ IURPWKHLPSURYHPHQWV7KHERQGVFRQVLVWRI6HULDO%RQGVLQWKHDPRXQWRIZLWK LQWHUHVWUDQJLQJIURPWRSD\DEOHVHPLDQQXDOO\RQ0DUFKDQG6HSWHPEHU %RQGPDWXULWLHVEHJLQ6HSWHPEHUDQGFRQWLQXHDQQXDOO\WKURXJK7HUPERQGVLQ WKHDPRXQWRIFDUU\DQLQWHUHVWUDWHRIDQGPDWXUH6HSWHPEHU7HUP ERQGV LQ WKH DPRXQW RI  FDUU\ DQ LQWHUHVW UDWH RI  DQG PDWXUH 6HSWHPEHU7HUPERQGVLQWKHDPRXQWRIFDUU\DQLQWHUHVWUDWHRI DQGPDWXUH6HSWHPEHU7KHVHERQGVZHUHUHIXQGHGGXULQJWKHILVFDO\HDUHQGHG -XQH  6HFWLRQ$VVHVVPHQW'LVWULFW 1R /LPLWHG2EOLJDWLRQ,PSURYHPHQW%RQGV 6HULHV  ,Q-XO\WKH&LW\RI3DOP'HVHUWLVVXHG/LPLWHG2EOLJDWLRQ,PSURYHPHQW %RQGV7KHSURFHHGVRIWKH%RQGVZLOOEHXVHGWRUHIXQGSUHYLRXVO\LVVXHGVHULHVERQGV WKDWILQDQFHGFHUWDLQLQIUDVWUXFWXUHLPSURYHPHQWVZLWKLQWKH&LW\¶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tem 1I-101 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 6SHFLDO$VVHVVPHQW'HEW &RQWLQXHG   &RPPXQLW\)DFLOLWLHV'LVWULFW1R6HULHV  7KH&LW\RI3DOP'HVHUW&RPPXQLW\)DFLOLWLHV'LVWULFW1R 8QLYHUVLW\3DUN 6SHFLDO7D[ %RQGV6HULHV WKH³%RQGV´ DUHEHLQJLVVXHGE\WKH&LW\RI3DOP'HVHUW&RPPXQLW\ )DFLOLWLHV'LVWULFW1R 8QLYHUVLW\3DUN  WKH³'LVWULFW´ WR L SD\DQGGHIHDVHDSURUDWD SRUWLRQRIRXWVWDQGLQJ6HULHV$6SHFLDO7D[%RQGV WKH³&)'3UR5DWD%RQGV´  LVVXHG E\ DQG VHFXUHG E\ WKH VSHFLDO WD[HV RI H[LVWLQJ &LW\ RI 3DOP 'HVHUW &RPPXQLW\ )DFLOLWLHV'LVWULFW1R 8QLYHUVLW\3DUN  ³&)'1R´  LL ILQDQFHWKHDFTXLVLWLRQ RIFHUWDLQSXEOLFLPSURYHPHQWVQHHGHGZLWKUHVSHFWWRWKHGHYHORSPHQWRISURSHUW\ORFDWHG ZLWKLQWKH'LVWULFWLQFOXGLQJSXEOLFLPSURYHPHQWVWREHRZQHGE\WKH&LW\DQGZDWHUDQGVHZHU IDFLOLWLHVWREHRZQHGDQGRSHUDWHGE\WKH&RDFKHOOD9DOOH\:DWHU'LVWULFW LLL IXQGDUHVHUYH DFFRXQWIRUWKH%RQGVDQG LY SD\FRVWVRILVVXDQFHIRUWKH%RQGV,QWHUHVWUDWHVYDU\IURP  WR  ZLWK LQWHUHVW SD\DEOH VHPLDQQXDOO\ RQ 0DUFK  DQG 6HSWHPEHU  ZLWK SULQFLSDOPDWXULQJDQQXDOO\RQ6HSWHPEHU  'HEWVHUYLFHUHTXLUHPHQWVWRPDWXULW\DUHDVIROORZV  <HDU(QGLQJ -XQH 3ULQFLSDO ,QWHUHVW 7RWDO                7RWDO   %RQG5HVHUYH5HTXLUHPHQWV  $W-XQHWKHIXQGEDODQFHUHVHUYHUHTXLUHPHQWVDQGDFWXDOUHVHUYHEDODQFHVZHUHDV IROORZV 5HTXLUHPHQW $FWXDO )LQDQFLQJ$XWKRULW\5HYHQXH%RQGV  &)'6SHFLDO7D[%RQGV6HULHV$ $VVHVVPHQW'LVWULFW/LPLWHG2EOLJDWLRQ%RQGV6HULHV &)'6SHFLDO7D[%RQGV6HULHV 1RWH 2WKHU'LVFORVXUHV  7KH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQKDVDGHILFLWRIZKLFKZLOOEH HOLPLQDWHGE\LQFUHDVLQJUHYHQXHVWKURXJKEDQTXHWUHVHUYDWLRQVDQGRXWLQJVGLUHFWO\UHODWHGWR WKHH[SDQVLRQRIWKHRXWVLGHGLQLQJWHUUDFHDQGWKHNLWFKHQ  7KH)LGXFLDU\3ULYDWH3XUSRVH7UXVW)XQGKDVDGHILFLWRIZKLFKZLOOEHIXQGHG WKURXJKIXWXUHSURSHUW\WD[HVFROOHFWHGE\WKH&RXQW\XQGHUWKHGLUHFWLRQRIWKH6WDWH7KH 6WDWHRI&DOLIRUQLDLVWKHUHVSRQVLEOHERG\IRUWKHHOLPLQDWLRQRIWKLVGHILFLW 83 Item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¶V GHFLVLRQ LQCalifornia Redevelopment Association, et al. v. Ana Matosantos, et al&DOWK  DOOUHGHYHORSPHQWDJHQFLHVLQWKH6WDWHZHUH GLVVROYHGDVRI)HEUXDU\7KH&LW\&RXQFLODGRSWHG5HVROXWLRQ1RRQ $XJXVWSXUVXDQWWR+HDOWKDQG6DIHW\&RGH ³+6&´ 6HFWLRQHOHFWLQJIRUWKH &LW\WRVHUYHDVWKH6XFFHVVRU$JHQF\ µ6$5'$´ WRWKHIRUPHU3DOP'HVHUW5HGHYHORSPHQW $JHQF\ WKH³'LVVROYHG5'$´ 6$5'$LVWDVNHGZLWKWKHZLQGGRZQRIWKH'LVVROYHG5'$¶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³'2)´ DOLVWRIKRXVLQJDVVHWVWREHWUDQVIHUUHGE\6$5'$WR WKH+RXVLQJ6XFFHVVRU2Q$XJXVWWKH'2)LVVXHGDOHWWHULQGLFDWLQJWKDWWKH'2) KDGQRREMHFWLRQWRVXFKKRXVLQJDVVHWOLVW  7KHKRXVLQJDVVHWV SHUWKHKRXVLQJDVVHWOLVW REOLJDWLRQVDQGDFWLYLWLHVRIWKH'LVVROYHG5'$ ZHUH WUDQVIHUUHG WR WKH +RXVLQJ 6XFFHVVRU DQG DUH UHSRUWHG LQ WKH +RXVLQJ $VVHW )XQG EHJLQQLQJLQILVFDO\HDU+RZHYHURXWVWDQGLQJERQGV ³+RXVLQJ%RQGV´ VHFXUHGE\ DSOHGJHRIPRQH\VZKLFKZRXOGKDYHEHHQGHSRVLWHGLQWRWKH'LVVROYHG5'$¶VORZDQG PRGHUDWHLQFRPHKRXVLQJIXQG NQRZQDVWKH³+RXVLQJ6HW$VLGH´ UHPDLQDVWKH6$5'$¶V HQIRUFHDEOHREOLJDWLRQV6HHDOVR³Stipulated Judgment”EHORZ$OORWKHUDVVHWVREOLJDWLRQV DQGDFWLYLWLHVRIWKH'LVVROYHG5'$KDYHEHHQWUDQVIHUUHGDQGDUHUHSRUWHGLQDILGXFLDU\IXQG SULYDWHSXUSRVHWUXVWIXQG LQWKHILQDQFLDOVWDWHPHQWVRIWKH&LW\ 84 Item 1I-103 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 'LVVROXWLRQ RI &DOLIRUQLD 5HGHYHORSPHQW $JHQFLHV DQG :LQG'RZQ E\ 6XFFHVVRU $JHQFLHV &RQWLQXHG   7KH&RXQW\$XGLWRU&RQWUROOHU ³&$&´ KDVHVWDEOLVKHGD5HGHYHORSPHQW3URSHUW\7D[7UXVW )XQG WKH³5377)´ IRU6$5'$DQGLVFKDUJHGZLWKGHSRVLWLQJLQWRWKH5377)WKHDPRXQWRI SURSHUW\ WD[HV WKDW ZRXOG KDYH EHHQ UHGHYHORSPHQW SURSHUW\ WD[LQFUHPHQW KDG WKH 'LVVROYHG5'$QRWEHHQGLVVROYHG  6$5'$ LV UHTXLUHG WR SUHSDUH DQ DQQXDO UHFRJQL]HG REOLJDWLRQ SD\PHQW VFKHGXOH WKH³5236´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¶VGHWHUPLQDWLRQ  7KH '2) LVVXHG D )LQGLQJ RI &RPSOHWLRQ RQ 0D\   DIWHU 6$5'$ UHPLWWHG VXFK SD\PHQWV  7KH)LQGLQJRI&RPSOHWLRQDOORZVWKHSODFHPHQWRIFHUWDLQORDQV ³$GYDQFHV´ PDGHE\WKH &LW\ WR WKH 'LVVROYHG 5'$ ZKLFK ZHUH SUHYLRXVO\ YRLGHG E\ RSHUDWLRQ RI ODZ XSRQ WKH 'LVVROYHG 5'$¶V GLVVROXWLRQ  RQ WKH 5236 )RU HDFK DSSURYHG UHSD\PHQW  RI WKH UHSD\PHQW DPRXQW PXVW EH DOORFDWHG WR WKH +RXVLQJ $VVHW )XQG 7KH UHSD\PHQW RI WKH $GYDQFHVSXUVXDQWWRWKHRYHUVLJKWERDUG¶VDQGWKH'2)¶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¶VXVHDQGGLVSRVLWLRQRIDOOUHDOSURSHUWLHVKHOG /RQJ5DQJH3URSHUW\0DQDJHPHQW 3ODQ ³/5303´ ZDVDSSURYHGE\WKH'2)RQ-XQH7KH/5303DOORZHGWKH6$5'$ WRWUDQVIHUSURSHUW\XVHGIRUJRYHUQPHQWSXUSRVHVZLWKDFRVWEDVLVRIWRWKH&LW\  Stipulated Judgment  2Q0D\WKH5LYHUVLGH&RXQW\6XSHULRU&RXUWHQWHUHGDILQDOMXGJPHQWLQFRUSRUDWLQJ WKHWHUPVRID6WLSXODWLRQIRU(QWU\RI-XGJPHQW ³2ULJLQDO6WLSXODWLRQ´ LQ&DVH1RDQG D6WLSXODWLRQIRU(QWU\RI-XGJPHQWSXUVXDQWWR6HWWOHPHQW$JUHHPHQWDQG0XWXDO5HOHDVH ³6HWWOHPHQW $JUHHPHQW´  LQ &DVH 1R  DPRQJ WKH 'LVVROYHG 5'$ WKH &LW\ WKH :HVWHUQ&HQWHURQ/DZDQG3RYHUW\,QF&DOLIRUQLD5XUDO/HJDO$VVLVWDQFHDQGRWKHUV2Q -XQHDQGRQ6HSWHPEHUWKH5LYHUVLGH&RXQW\6XSHULRU&RXUWDPHQGHGWKH MXGJPHQWLQFRUSRUDWLQJ6WLSXODWLRQV$PHQGLQJ6WLSXODWLRQIRU(QWU\RI-XGJPHQW 85 Item 1I-104 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 'LVVROXWLRQ RI &DOLIRUQLD 5HGHYHORSPHQW $JHQFLHV DQG :LQG'RZQ E\ 6XFFHVVRU $JHQFLHV &RQWLQXHG   7KHMXGJPHQWDVDPHQGHG WKH³-XGJPHQW´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¶V GLVVROXWLRQ6$5'$FRQWLQXHVWRUHFRJQL]HWKH-XGJPHQWDVLWVHQIRUFHDEOHREOLJDWLRQ2QLWV 5236 WKH 6$5'$ KDV LQFOXGHG OLQH LWHPV GHVLJQDWHG DV ³6WLSXODWLRQ -XGJPHQW &DVH 1R ´ OLVWLQJ WKH DPRXQWV QHFHVVDU\ WR IXOILOO LWV REOLJDWLRQV XQGHU WKH -XGJPHQW DIWHUWDNLQJLQWRDFFRXQWWKHDPRXQWVDOUHDG\OLVWHGIRUWKHUHSD\PHQWRIWKH+RXVLQJ%RQGV  :KLOHWKH'2)RULJLQDOO\DSSURYHGVXFKOLQHLWHPVWKH'2)FKDQJHGLWVSRVLWLRQEHJLQQLQJ ZLWK5236$ i.e.,FRYHULQJWKHSHULRGFRPPHQFLQJ-XO\   2Q$XJXVW6$5'$ILOHGDQDFWLRQSARDA to the Palm Desert Redevelopment Agency v. Michael Cohen, Sacramento Superior Court Case No. 34-2014-00167698 WKH ³6XFFHVVRU $JHQF\ /DZVXLW´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¶VORZDQGPRGHUDWHKRXVLQJIXQG DOVRPDGHDQDGYDQFHWRWKH'LVVROYHG5'$WRFRYHUWKHUHPLWWDQFHWKDWWKH'LVVROYHG5'$ PDGH WR WKH &$& IRU GHSRVLW LQWR WKH &RXQW\ 6XSSOHPHQWDO (GXFDWLRQDO 5HYHQXH $XJPHQWDWLRQ)XQG ³6(5$)´ LQILVFDO\HDU  7KHUHSD\PHQWRIWKH$GYDQFHVUHSD\DEOHWR&LW\)XQGVIRUDQ\ILVFDO\HDULVVXEMHFWWRDFDS FDOFXODWHGSXUVXDQWWR+6&6HFWLRQDQGKDVDORZHUSULRULW\IRUUHSD\PHQWUHODWLYHWR WKHUHSD\PHQWRIWKH6(5$)ORDQV)XUWKHURIWKHUHSD\PHQWPXVWEHWUDQVIHUUHGWRWKH +RXVLQJ$VVHW)XQG +RXVLQJ$XWKRULW\DV+RXVLQJ6XFFHVVRU   86 Item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¶VERQGVZHUHVHFXUHGE\WKH'LVVROYHG5'$¶V DQGDIWHUGLVVROXWLRQDUHVHFXUHGE\WKH6XFFHVVRU$JHQF\¶V UHSD\PHQWRIWKHORDQVZHUH VHFXUHG E\ WD[ LQFUHPHQW DIWHU WKH 'LVVROYHG 5'$¶V GLVVROXWLRQ DUH VHFXUHG E\ FHUWDLQ PRQH\VGHSRVLWHGLQWKH5377)VHH1RWHV DQGRWKHUIXQGVDVSURYLGHGLQWKHERQG GRFXPHQWV  ,Q-DQXDU\WKH6XFFHVVRU$JHQF\LVVXHGIRXUVHULHVRIERQGV L WKH7D[$OORFDWLRQ 5HIXQGLQJ %RQGV  6HULHV $ LQ WKH DJJUHJDWH SULQFLSDO DPRXQW RI  WKH³$%RQGV´  LL WKH7D[DEOH7D[$OORFDWLRQ5HIXQGLQJ%RQGV6HULHV%LQWKH DJJUHJDWH SULQFLSDO DPRXQW RI  WKH ³% %RQGV´  LLL  WKH 7D[ $OORFDWLRQ 5HIXQGLQJ %RQGV  6HULHV +$ LQ WKH DJJUHJDWH SULQFLSDO DPRXQW RI  WKH³+$%RQGV´ DQG LY WKH7D[DEOH7D[$OORFDWLRQ5HIXQGLQJ%RQGV6HULHV +%LQWKHDJJUHJDWHSULQFLSDODPRXQWRI WKH³+%%RQGV´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tem 1I-106 &,7<2)3$/0'(6(57  127(672%$6,&),1$1&,$/67$7(0(176 &217,18('  -81(  1RWH 6XFFHVVRU$JHQF\'LVFORVXUHV &RQWLQXHG   7KHUHPDLQLQJRXWVWDQGLQJ3URMHFW$UHD1R%RQGVZHUHLQVXUHGE\0%,$,QVXUDQFH &RUSRUDWLRQ ³0%,$´ 2Q)HEUXDU\0%,$DQQRXQFHGWKHUHVWUXFWXULQJRILWVILQDQFLDO JXDUDQW\LQVXUDQFHRSHUDWLRQVLQWRWZRVHSDUDWHO\FDSLWDOL]HGVLVWHUFRPSDQLHVZLWKRQHHQWLW\ 0%,$,OOLQRLV DVVXPLQJWKHULVNDVVRFLDWHGZLWKLWV86PXQLFLSDOH[SRVXUHVDQGWKHRWKHU 0%,$&RUS LQVXULQJWKHUHPDLQGHURIWKHSRUWIROLR(IIHFWLYH0DUFK0%,$,OOLQRLV ZDVUHQDPHG1DWLRQDO3XEOLF)LQDQFH*XDUDQWHH&RUSRUDWLRQ ³13)*&´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tem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tem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tem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tem 1I-110 CITY OF PALM DESERT MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 2018 TOTAL PENSION LIABILITY Service Cost 2,156,598$ 2,125,437$ 2,076,964$ 2,204,265$ Interest 7,991,591 8,223,320 8,327,823 8,558,529 Difference between Expected and Actual Experience -(2,378,254) (4,259,317) (1,895,482) Changes in Assumptions -(2,091,348) - 7,367,723 Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) Net Change in Total Pension Liability 5,298,869 1,282,130 1,344,218 10,833,504 Total Pension Liability - Beginning 107,900,900 113,199,769 114,481,899 115,826,117 Total Pension Liability - Ending (a) 113,199,769$ 114,481,899$ 115,826,117$ 126,659,621$ PLAN FIDUCIARY NET POSITION Contributions - Employer 3,320,450$ 4,065,411$ 4,257,322$ 5,303,371$ Contributions - Employee 995,504 878,171 870,981 828,467 Net Investment Income 11,290,314 1,682,498 448,184 8,800,663 Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) Administrative Expense -(87,279) (47,263) (115,573) Net Plan to Plan Resource Movement ---- Other Miscellaneous Income/(Expense)---- Net Change in Fiduciary Net Position 10,756,948 1,941,776 727,972 9,415,397 Plan Fiduciary Net Position - Beginning 64,851,550 75,608,498 77,550,274 78,278,246 Plan Fiduciary Net Position - Ending (b)75,608,498$ 77,550,274$ 78,278,246$ 87,693,643$ Plan Net Pension Liability/(Assets) - Ending (a) - (b) 37,591,271$ 36,931,625$ 37,547,871$ 38,965,978$ 66.79%67.74%67.58%69.24% Covered Payroll 11,110,759$ 11,448,621$ 11,342,713$ 10,684,238$ 338.33%322.59%331.03%364.71% Notes to Schedule: Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2019 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes of Assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. See Notes to Required Supplementary Information.92 Item 1I-111 2019 2020 2021 2022 2,196,462$ 1,973,971$ 2,086,683$ 2,042,043$ 8,797,867 9,261,660 9,645,145 10,005,168 (594,882) 1,762,387 533,373 116,967 (1,148,708) - - - (5,934,338) (6,383,377) (6,540,485) (7,041,890) 3,316,401 6,614,641 5,724,716 5,122,288 126,659,621 129,976,022 136,590,663 142,315,379 129,976,022$ 136,590,663$ 142,315,379$ 147,437,667$ 5,407,412$ 5,963,737$ 4,521,813$ 4,729,858$ 812,447 791,794 805,528 745,959 7,555,653 6,322,815 5,102,524 24,010,711 (5,934,338) (6,383,377) (6,540,485) (7,041,890) (136,651) (67,893) (143,465) (105,400) (222) - - - (259,502) 222 - - 7,444,799 6,627,298 3,745,915 22,339,238 87,693,643 95,138,442 101,765,740 105,511,655 95,138,442$ 101,765,740$ 105,511,655$ 127,850,893$ 34,837,580$ 34,824,923$ 36,803,724$ 19,586,774$ 73.20% 74.50% 74.14%86.72% 10,751,687$ 9,807,088$ 11,392,639$ 10,353,849$ 324.02% 355.10% 323.05%189.17% See Notes to Required Supplementary Information.93 Item 1I-112 CITY OF PALM DESERT MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 2018 Actuarially Determined Contribution 3,393,171$ 3,585,082$ 3,550,127$ 4,219,764$ Contribution in Relation to the Actuarially Determined Contribution (4,065,411) (4,257,322) (5,303,371) (5,396,908) Contribution Deficiency (Excess)(672,240)$ (672,240)$ (1,753,244)$ (1,177,144)$ Covered Payroll 11,448,621$ 11,342,713$ 10,684,238$ 10,751,687$ Contributions as a Percentage of Covered Payroll 35.51%37.53% 49.64%50.20% Note to Schedule: Valuation Date: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method/period Asset valuation method Inflation Salary increases Payroll growth Investment rate of return Retirement age Mortality 7.25% net of pension investment and administrative expenses, including inflation. The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using the 90% scale MP 2016 published by the Society of Actuaries. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only eight years are shown. June 30, 2019 2.875% Varies by entry age and service 2.625% Market value Level percentage of payroll, closed Entry age normal See Notes to Required Supplementary Information.94 Item 1I-113 2019 2020 2021 2022 4,225,204$ 4,736,668$ 4,936,652$ 4,123,142$ (5,963,737) (4,521,813) (4,729,797) (4,123,142) (1,738,533)$ 214,855$ 206,855$ -$ 9,807,088$ 11,392,639$ 10,353,849$ 10,386,791$ 60.81% 39.69% 45.68%39.70% See Notes to Required Supplementary Information.95 Item 1I-114 CITY OF PALM DESERT SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY/(ASSET) AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 2019 2020 2021 2022 Total OPEB Liability Service cost 346,417$ 357,675$ 369,299$ 366,971$ 378,897$ Interest on the total OPEB liability 1,144,106 1,199,747 1,256,431 1,117,500 1,161,531 Differences between expected and actual experience - - (4,066,457) - - Changes in assumptions - - 2,552,767 - 1,053,761 Changes in benefit terms - - - - (910,834) Benefit payments (653,187) (696,845) (756,759) (752,486) (819,968) Net change in total OPEB liability 837,336 860,577 (644,719) 731,985 863,387 Total OPEB liability - beginning 16,980,271 17,817,607 18,678,184 18,033,465 18,765,450 Total OPEB liability - ending (a)17,817,607$ 18,678,184$ 18,033,465$ 18,765,450$ 19,628,837$ Plan Fiduciary Net Position Contribution - employer 1,255,960$ 1,381,501$ 2,408,260$ 1,280,453$ 1,140,548$ Net investment income 902,331 843,319 1,226,966 977,487 3,878,532 Benefit payments (653,187) (696,845) (756,759) (752,486) (819,968) Administrative expense (6,541) (7,371) (3,515) (9,045) (7,193) Other Expenses - (18,115) - - - Net change in plan fiduciary net position 1,498,563 1,502,489 2,874,952 1,496,409 4,191,919 Plan fiduciary net position - beginning 12,198,460 13,697,023 15,199,512 18,074,464 19,570,873 Plan fiduciary net position - ending (b) 13,697,023 15,199,512 18,074,464 19,570,873 23,762,792 Net OPEB Liability/(Asset) - ending (a) - (b)4,120,584$ 3,478,672$ (40,999)$ (805,423)$ (4,133,955)$ Plan fiduciary net position as a percentage of the total OPEB liability/(asset)76.87%81.38%100.23%104.29%121.06% Covered-Employee payroll 10,584,400$ 10,749,431$ 10,546,052$ 11,382,103$ 10,881,697$ Net OPEB liability/(asset) as a percentage of covered-employee payroll 38.93% 32.36% -0.39% -7.08% -37.99% (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. See Notes to Required Supplementary Information.96 Item 1I-115 CITY OF PALM DESERT SCHEDULE OF PLAN CONTRIBUTIONS - OPEB AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 2019 2020 2021 2022 520,620$ 455,021$ 348,915$ 320,508$ 994,088$ (1,217,465) (2,211,778) (1,280,453) (1,140,548) (994,088) (696,845)$ (1,756,757)$ (931,538)$ (820,040)$ 994,088$ 10,741,786$ 10,546,052$ 11,382,103$ 10,881,697$ 11,208,147$ 11.33%20.97%11.25%10.48%8.87% Notes to Schedule: Methods and assumptions used to determine contributions: Actuarial Cost Method Amortization Valuation Method/Period Asset Valuation Method Market value of assets Inflation 2.75% Payroll Growth Investment Rate of Return 6.20% per annum Healthcare cost-trend rates Retirement Age Mortality (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. Entry Age Normal Level percent of payroll over a closed rolling 30-year 6.5%; Medical plan premiums and claims costs by age are stepping down by 0.5% each year to 5%. 3.25% per annum, in aggregate Tier 1 employees - 2.50% @55 and Tier 2 employees - 2.00% @62 The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period of 1997 to 2015. Mortality rates used were those published by CalPERS, adjusted to back out 20 years of Scale BB to central year 2008, then projected using the MacLeod Watts Scale 2017 applied generationally. Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered-Employee payroll Contributions as a percentage of covered-employee payroll See Notes to Required Supplementary Information.97 Item 1I-116 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 100,413,464$ 100,413,464$ 100,413,464$ -$ Resources (Inflows): Taxes Property taxes 7,032,255 7,032,255 7,006,251 (26,004) Property transfer tax 566,468 566,468 1,197,951 631,483 Property tax in lieu 4,612,960 4,612,960 4,698,158 85,198 Timeshare mitigation fee 1,467,905 1,467,905 1,555,137 87,232 Sales tax 19,879,000 23,029,000 26,193,390 3,164,390 Business license tax 1,038,273 1,038,273 1,326,920 288,647 Job valuation fees 13,700 13,700 44,032 30,332 Transient occupancy tax 10,337,678 14,037,678 22,098,939 8,061,261 Franchises 3,000,000 3,000,000 3,334,555 334,555 Penalties and interest on taxes 20,000 20,000 100,071 80,071 Total Taxes 47,968,239 54,818,239 67,555,404 12,737,165 Licenses and Permits Building permits 843,550 1,243,550 2,063,969 820,419 Grading permits 40,000 40,000 15,345 (24,655) Encroachment permits 40,000 160,000 166,789 6,789 Miscellaneous permits 500 500 1,790 1,290 Business regulatory permits 20,000 20,000 26,683 6,683 Golf cart permits 1,500 1,500 1,450 (50) Valet parking permits 550 550 -(550) Total Licenses and Permits 946,100 1,466,100 2,276,026 809,926 Intergovernmental State mandate cost --65,287 65,287 Motor vehicle in-lieu fees 24,000 24,000 62,259 38,259 Monthly parking bail 10,000 10,000 6,243 (3,757) Reimbursement RDA costs 711,665 711,665 273,156 (438,509) Other reimbursements 626,500 626,500 5,652,852 5,026,352 Total Intergovernmental 1,372,165 1,372,165 6,059,797 4,687,632 Rental income 59,000 59,000 168,172 109,172 Charges for Services Subdivision fees 250,000 350,000 562,119 212,119 Zoning fees 40,000 40,000 56,951 16,951 Plan check fees 180,100 430,100 616,576 186,476 Sale of maps and publications 7,500 7,500 7,774 274 Microfilm fees 2,000 2,000 233 (1,767) Vehicle impact fee 600,000 600,000 644,455 44,455 Other fees 123,000 123,000 309,471 186,471 Total Charges for Services 1,202,600 1,552,600 2,197,579 644,979 Investment Earnings Interest income 375,000 375,000 (2,114,133) (2,489,133) Interest on notes receivable 200,000 200,000 181,552 (18,448) Total investment Earnings 575,000 575,000 (1,932,581) (2,507,581) Fines and Forfeitures Vehicle code fines 35,000 35,000 26,682 (8,318) Municipal court fines 25,000 25,000 1,265 (23,735) VICR fees 75,000 75,000 71,917 (3,083) Total Fines and Forfeitures 135,000 135,000 99,864 (35,136) Miscellaneous Code compliance 100,000 130,000 268,090 138,090 Certificate of compliance fee 500 500 375 (125) Nuisance abatement tax 20,000 20,000 23,586 3,586 Abandoned vehicle abatement 38,000 38,000 59,247 21,247 Other revenue 157,000 157,000 258,068 101,068 Total Miscellaneous 315,500 345,500 609,366 263,866 Transfers in 2,932,500 2,932,500 3,774,873 842,373 Financed purchases --135,224 135,224 Amounts Available for Appropriations 155,919,568 163,669,568 181,357,188 17,687,620 See Notes to Required Supplementary Information.98 Item 1I-117 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Charges to Appropriation (Outflow): General Government City Council 301,064 301,064 261,272 39,792 City Clerk 1,031,110 1,031,110 873,468 157,642 Legislative Advocacy 38,500 38,500 36,225 2,275 Elections 500 500 46,709 (46,209) City Attorney 295,473 295,473 282,063 13,410 Legal Special Services 301,875 301,875 359,411 (57,536) City Manager 1,028,920 1,028,920 974,500 54,420 Community Services --47 (47) Finance 2,121,700 2,121,700 1,893,639 228,061 Independent Audit 90,000 90,000 65,757 24,243 Human Resources 606,620 850,572 985,449 (134,877) General Services 5,534,109 5,184,109 4,141,674 1,042,435 Information Technology 1,661,810 1,860,244 2,044,494 (184,250) Unemployment Insurance 10,000 10,000 384 9,616 Insurance 926,000 926,000 655,010 270,990 Contributions to other Agencies 608,450 621,618 572,480 49,138 Community Promotions 1,115,500 1,115,500 1,216,272 (100,772) Marketing 1,585,465 1,777,585 1,454,419 323,166 Visitors Information Center 12,930 12,930 134,495 (121,565) Economic Development Center 1,001,400 1,265,361 1,083,826 181,535 Planning & Community Development 3,036,800 3,189,739 2,656,311 533,428 Total General Government 21,308,226 22,022,800 19,737,905 2,284,895 Public Safety Police Services 20,000,359 20,000,359 19,323,938 676,421 Animal Regulation 341,000 341,000 305,581 35,419 Traffic Safety 402,850 514,899 364,983 149,916 Building and Safety 1,399,750 1,849,750 1,751,817 97,933 Community Safety 426,300 426,300 293,693 132,607 Total Public Safety 22,570,259 23,132,308 22,040,012 1,092,296 Parks, Recreation and Culture Civic Center Park 1,318,900 1,318,900 1,481,177 (162,277) Park Maintenance 1,091,200 1,091,200 981,169 110,031 Landscaping Service 2,080,025 2,080,025 2,287,852 (207,827) Civic Center Park - Improvement 100,000 100,000 - 100,000 Total Parks, Recreation and Culture 4,590,125 4,590,125 4,750,198 (160,073) Public Works Administration 2,376,550 2,658,875 2,265,476 393,399 Street Maintenance 2,314,725 2,314,725 2,421,966 (107,241) Curb & Gutter 25,000 25,000 10,020 14,980 Parking Lot 50,000 50,000 -50,000 Corporate Yard 122,500 122,500 121,316 1,184 Auto Fleet / Equipment 240,000 240,000 309,240 (69,240) Public Bldg - Opr/Maint.585,325 685,325 742,653 (57,328) Portola Community Center 151,400 151,400 155,291 (3,891) Total Public Works 5,865,500 6,247,825 6,025,962 221,863 Capital outlay 60,000 158,800 176,287 (17,487) Transfers out 8,110,435 9,200,435 7,744,283 1,456,152 Contribution to other government --1,001,688 (1,001,688) Total Charges to Appropriations 62,504,545 65,352,293 61,476,335 3,875,958 Budgetary Fund Balance, June 30 93,415,023$ 98,317,275$ 119,880,853$ 21,563,578$ See Notes to Required Supplementary Information.99 Item 1I-118 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE MEASURE A YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 22,154,785$ 22,154,785$ 22,154,785$ -$ Resources (Inflows): Taxes 2,415,000 2,415,000 3,483,227 1,068,227 Intergovernmental 500,000 500,000 620,792 120,792 Investment earnings 100,000 100,000 (292,440) (392,440) Amounts Available for Appropriations 25,169,785 25,169,785 25,966,364 796,579 Charges to Appropriation (Outflow): Public works 3,880,000 4,702,432 480,908 4,221,524 Capital outlay 2,500,000 28,097,747 3,667,005 24,430,742 Total Charges to Appropriations 6,380,000 32,800,179 4,147,913 28,652,266 Budgetary Fund Balance, June 30 18,789,785$ (7,630,394)$ 21,818,451$ 29,448,845$ See Notes to Required Supplementary Information 100 Item 1I-119 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PROP A FIRE TAX YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 8,546,839$ 8,546,839$ 8,546,839$ -$ Resources (Inflows): Taxes 6,519,410 6,519,410 8,914,785 2,395,375 Assessments 2,400,000 2,400,000 2,130,793 (269,207) Intergovernmental 1,100,000 1,100,000 1,210,837 110,837 Charges for services 2,300,000 2,300,000 2,869,233 569,233 Investment earnings 15,000 15,000 42,141 27,141 Miscellaneous 10,000 10,000 514 (9,486) Transfers in 4,000,000 4,000,000 4,000,000 - Amounts Available for Appropriations 24,891,249 24,891,249 27,715,142 2,823,893 Charges to Appropriation (Outflow): Public safety 16,286,500 16,295,365 15,017,227 1,278,138 Capital outlay 1,213,000 1,213,000 15,603 1,197,397 Total Charges to Appropriations 17,499,500 17,508,365 15,032,830 2,475,535 Budgetary Fund Balance, June 30 7,391,749$ 7,382,884$ 12,682,312$ 5,299,428$ See Notes to Required Supplementary Information.101 Item 1I-120 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING ASSET FUND YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 48,618,876$ 48,618,876$ 48,618,876$ -$ Resources (Inflows): Investment earnings 98,000 98,000 85,001 (12,999) Miscellaneous --75,353 75,353 Amounts Available for Appropriations 48,716,876 48,716,876 48,779,230 62,354 Charges to Appropriation (Outflow): Housing and redevelopment 423,650 6,453,650 62,951 6,390,699 Capital outlay 300,000 300,000 113,000 187,000 Total Charges to Appropriations 723,650 6,753,650 175,951 6,577,699 Budgetary Fund Balance, June 30 47,993,226$ 41,963,226$ 48,603,279$ 6,640,053$ See Notes to Required Supplementary Information.102 Item 1I-121 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 19,345,125$ 19,345,125$ 19,345,125$ -$ Resources (Inflows): Rental income 7,250,001 7,250,001 7,893,204 643,203 Investment earnings 50,000 50,000 7,168 (42,832) Amounts Available for Appropriations 26,645,126 26,645,126 27,245,497 600,371 Charges to Appropriation (Outflow): Housing and redevelopment 9,579,868 10,091,033 7,875,085 2,215,948 Transfers out 284,100 284,100 245,356 38,744 Total Charges to Appropriations 9,863,968 10,375,133 8,120,441 2,254,692 Budgetary Fund Balance, June 30 16,781,158$ 16,269,993$ 19,125,056$ 2,855,063$ See Notes to Required Supplementary Information.103 Item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tem 1I-123  27+(5*29(510(17$/)81'6 &20%,1,1*67$7(0(176 105 Item 1I-124 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments 28,486,996$ 30,765,713$ 95,493$ 59,348,202$ Receivables: Accounts 804,412 - - 804,412 Assessments 5,874 - 1,133,708 1,139,582 Loans 1,435,167 - -1,435,167 Interest 236,626 1,315,141 -1,551,767 Allowance for interest on Successor Agency (180,504) (1,315,141) -(1,495,645) Prepaid costs 2,843 16,748 -19,591 Deposits -20,000 -20,000 Due from other governments 713,827 - 4,213 718,040 Inventories 7,813 - -7,813 Restricted assets: Cash and investments with fiscal agents 19,611 - -19,611 Advances to Successor Agency 654,000 4,765,000 -5,419,000 Allowance for Advances to Successor Agency (654,000) (4,765,000) -(5,419,000) TOTAL ASSETS 31,532,665$ 30,802,461$ 1,233,414$ 63,568,540$ Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable 1,204,759$ 856,694$ -$ 2,061,453$ Accrued liabilities 11,669 - -11,669 Unearned revenues 383,838 251,273 -635,111 Deposits payable 3,780 - -3,780 Due to other funds 212,345 - - 212,345 Advances from other funds 1,159,000 - -1,159,000 TOTAL LIABILITIES 2,975,391 1,107,967 -4,083,358 DEFERRED INFLOWS OF RESOURCES: Unavailable revenues 239,203 164,790 1,133,708 1,537,701 Total Deferred Inflows of Resources 239,203 164,790 1,133,708 1,537,701 FUND BALANCES: Nonspendable: Prepaid costs 2,843 16,748 -19,591 Restricted for: Public safety 1,958,136 - -1,958,136 Capital Projects -190,103 -190,103 Debt service --99,706 99,706 Street related purposes 7,701,044 - -7,701,044 Low income housing 3,547,149 - -3,547,149 Public facilities 3,834,842 - -3,834,842 Special programs 7,514,677 1,244,814 -8,759,491 Committed to: Aquatic center 1,994,308 - -1,994,308 Energy loan program 1,891,686 - -1,891,686 Assigned to: Capital projects -9,325,981 -9,325,981 Property acquisition -420,387 -420,387 Public facilities -15,555,370 -15,555,370 Special programs -664,555 -664,555 Street related purposes -2,111,746 -2,111,746 Unassigned (126,614) - - (126,614) TOTAL FUND BALANCES 28,318,071 29,529,704 99,706 57,947,481 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 31,532,665$ 30,802,461$ 1,233,414$ 63,568,540$ Total Other Governmental Funds Debt Service Fund Capital Projects Funds Special Revenue Funds 106 Item 1I-125 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Taxes 4,083,775$ -$ -$ 4,083,775$ Special assessments collected 1,133,632 - 142,682 1,276,314 Licenses and permits - 346,669 - 346,669 Intergovernmental revenues 4,337,693 70,952 - 4,408,645 Charges for services 1,108,688 -- 1,108,688 Investment earnings 8,550 (383,234) (1,961) (376,645) Rental income -67,649 - 67,649 Fines and forfeitures 5,334 -- 5,334 Contributions -1,974,653 - 1,974,653 Miscellaneous 1,380,000 2,577,394 - 3,957,394 TOTAL REVENUES 12,057,672 4,654,083 140,721 16,852,476 EXPENDITURES: Current: General government 875,825 5,363,551 15,479 6,254,855 Public safety 265,712 -- 265,712 Parks, recreation and culture 2,053,385 634,824 - 2,688,209 Public works 2,768,748 21,602 - 2,790,350 Housing and redevelopment 294,404 -- 294,404 Capital outlay 2,769,796 4,124,170 - 6,893,966 Debt service: Principal retirement 330,000 - 48,000 378,000 Interest and fiscal charges 100,665 - 56,797 157,462 TOTAL EXPENDITURES 9,458,535 10,144,147 120,276 19,722,958 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,599,137 (5,490,064) 20,445 (2,870,482) OTHER FINANCING SOURCES (USES) Transfers in 1,760,529 2,020,000 - 3,780,529 Transfers out (3,673,806) (201,067) - (3,874,873) Finance purchases -2,468,060 - 2,468,060 TOTAL OTHER FINANCING SOURCES (USES)(1,913,277) 4,286,993 - 2,373,716 NET CHANGE IN FUND BALANCES 685,860 (1,203,071) 20,445 (496,766) FUND BALANCES - BEGINNING OF YEAR 27,632,211 30,732,775 79,261 58,444,247 FUND BALANCES - END OF YEAR 28,318,071$ 29,529,704$ 99,706$ 57,947,481$ Total Other Governmental Funds Special Revenue Funds Capital Projects Funds Debt Service Fund 107 Item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±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±7KLVIXQGLVXVHGWRFROOHFWIXQGVIURPGHYHORSHUVIRUWKHSXUSRVHRI FRQVWUXFWLRQUHVWRUDWLRQDQGSXUFKDVHRIHTXLSPHQWIRUILUHVWDWLRQVZLWKLQWKH&LW\  5HF\FOLQJ)XQG7KLVIXQGLVXVHGWRDFFRXQWIRUUHVRXUFHVUHVXOWLQJIURPORZHUODQGILOOWLSSLQJIHHVZKLFK KDYHEHHQUHGXFHGWR]HURLQDQG6WDWHJUDQWIXQGV)XQGVZLOOEHXWLOL]HGIRUSXUSRVHVRISURPRWLQJ UHF\FOLQJDQGUHF\FOLQJUHODWHGDFWLYLWLHV 108 Item 1I-127 27+(5*29(510(17$/)81'663(&,$/5(9(18( &217,18('   (QHUJ\,QGHSHQGHQFH/RDQ)XQG±7KLVIXQGLVXVHGWRSURYLGHIXQGLQJIRUWKH$%(QHUJ\/RDQVDQG FROOHFWDVVHVVPHQWVIURPWKRVH$%ORDQVWKURXJKSURSHUW\WD[FROOHFWLRQV7KHDVVHVVPHQWVFROOHFWHG ZLOOEHXVHGWRVHUYLFHGHEWLVVXHGDQGWRSURYLGHDGGLWLRQDOIXQGLQJIRUWKH$%ORDQV  $LU4XDOLW\0DQDJHPHQW)XQG±7KLVIXQGDFFRXQWVIRUUHFHLSWVIURP6RXWK&RDVW$LU4XDOLW\0DQDJHPHQW 'LVWULFWVL[W\SHUFHQWRIZKLFKLVGLVEXUVHGWRWKH&RDFKHOOD9DOOH\$VVRFLDWLRQRI*RYHUQPHQWV  $TXDWLF&HQWHU)XQG±7KLVIXQGLVXVHGWRDFFRXQWIRUUHYHQXHVDQGH[SHQGLWXUHVIRUWKH&LW\¶VDTXDWLF IDFLOLW\  &DQQDELV&RPSOLDQFH)XQG±7KLVIXQGLVXVHGWRDFFRXQWIRUUHYHQXHVDQGH[SHQGLWXUHVIRUWKH&LW\¶V FDQQDELVFRPSOLDQFHDFWLYLW\  (O 3DVHR $VVHVVPHQW 'LVWULFW )XQG ± 7KLV IXQG LV XVHG WR FROOHFW DVVHVVPHQWV RQ DOO EXVLQHVV HVWDEOLVKPHQWVORFDWHGZLWKLQWKHERXQGDULHVVHWIRUWKH(O3DVHR3DUNLQJDQGEXVLQHVVLPSURYHPHQWDUHD EDVHGRQDIHHVFKHGXOHHVWDEOLVKHGIRUWKHYDULRXVW\SHVRIEXVLQHVVHV3URFHHGVIURPDOOFKDUJHVDUH XVHGIRUWKHSURPRWLRQRIEXVLQHVVDFWLYLWLHVLQWKHDUHD  9DULRXV/DQGVFDSHDQG/LJKWLQJ'LVWULFW)XQGV±7KHVHIXQGVDUHXVHGWRDFFRXQWIRUH[SHQGLWXUHVDQG UHFHLSWVRISURSHUW\WD[HVDQGVHUYLFHIHHVOHYLHGWRWKHSURSHUW\RZQHUVLQWKHYDULRXVODQGVFDSLQJDQG OLJKWLQJGLVWULFWVZKLFKZHUHIRUPHGWRSURYLGHODQGVFDSLQJDQGVWUHHWOLJKWLQJPDLQWHQDQFH,QGLYLGXDO ODQGVFDSLQJDQGOLJKWLQJIXQGVDUHVHWXSIRU'LVWULFWV1RWKURXJK  $IIRUGDEOH+RXVLQJ)XQG±7KLVIXQGLVXVHGWRDFFRXQWIRUWKHPDQDJHPHQWDQGRSHUDWLRQRIWKHDIIRUGDEOH KRXVLQJSRUWIROLR  109 Item 1I-128 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments 2,717$ 5,133,262$ 3,551,206$ -$ Receivables: Accounts - - - - Assessments - - - - Loans - - - - Interest - - - - Allowance for interest on Successor Agency - - - - Prepaid costs - - - - Due from other governments 221 307,170 - 183,081 Inventories - - - - Restricted assets: Cash and investments with fiscal agents - - - - Advances to Successor Agency - - - - Allowance for Advances to Successor Agency - - - - TOTAL ASSETS 2,938$ 5,440,432$ 3,551,206$ 183,081$ Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable -$ 271,264$ 4,057$ 85,575$ Accrued liabilities - - - - Unearned revenues - - - - Deposits payable - - - - Due to other funds - - - 41,039 Advances from other funds - - - - TOTAL LIABILITIES - 271,264 4,057 126,614 DEFERRED INFLOWS OF RESOURCES: Unavailable revenues - - - 183,081 Total Deferred Inflows of Resources - - - 183,081 FUND BALANCES: Nonspendable: Prepaid costs - - - - Restricted for: Public safety - - - - Street related purposes 2,938 5,169,168 - - Low income housing - - 3,547,149 - Public facilities - - - - Special programs - - - - Committed to: Aquatic center - - - - Energy loan program - - - - Unassigned - - - (126,614) TOTAL FUND BALANCES 2,938 5,169,168 3,547,149 (126,614) TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 2,938$ 5,440,432$ 3,551,206$ 183,081$ Traffic Safety Gas Tax Housing Mitigation Fee Community Development Block Grant 110 Item 1I-129 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Restricted assets: Cash and investments with fiscal agents Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues Total Deferred Inflows of Resources FUND BALANCES: Nonspendable: Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES (CONTINUED) 673,863$ 321,664$ 1,452,361$ 740,537$ - - - - - - - - - - - - - - 180,504 - - - (180,504) - - - -- - - 23,486 - - - -- - - - - - - 654,000 - - - (654,000) - 673,863$ 321,664$ 1,475,847$ 740,537$ -$ 12,397$ 23,499$ -$ - - - - - 293,220 - - - - - - - - - - - - - - - 305,617 23,499 - - - - - - - - - - - - - - 16,047 - - - - - 740,537 - - - - 673,863 - 1,452,348 - - - -- - - - - - - - - - - - 673,863 16,047 1,452,348 740,537 673,863$ 321,664$ 1,475,847$ 740,537$ Child Care Program Public Safety Police Grants New Construction Tax Planned Drainage 111 Item 1I-130 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Restricted assets: Cash and investments with fiscal agents Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues Total Deferred Inflows of Resources FUND BALANCES: Nonspendable: Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 1,708,631$ 438,750$ 1,368,086$ 3,008,475$ - - - 55,337 - - - - - - - - - - - - - - - - - - - 200 - - - - - - - - - - - - - - - - - - - - 1,708,631$ 438,750$ 1,368,086$ 3,064,012$ -$ -$ -$ 45,448$ - - - - - - - 90,618 - - - - - - - - - - - - - - - 136,066 - - - - - - - - - - - 200 - - 1,368,086 - - 438,750 - - - - - - 1,708,631 - - - - - - 2,927,746 - - - - - - - - - - - - 1,708,631 438,750 1,368,086 2,927,946 1,708,631$ 438,750$ 1,368,086$ 3,064,012$ Parks and Recreational Facilities Traffic Signals Fire Facilities Restoration Recycling 112 Item 1I-131 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Restricted assets: Cash and investments with fiscal agents Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues Total Deferred Inflows of Resources FUND BALANCES: Nonspendable: Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES (CONTINUED) 1,609,645$ 46,939$ 2,176,389$ 288,475$ -- 447,889 289,308 5,874 - - - 1,435,167 - - - 56,122 - - - -- - - -691 1,952 - -- - - -- 7,813 - -- 19,611 - -- -- -- -- 3,106,808$ 47,630$ 2,653,654$ 577,783$ -$32,794$ 657,394$ -$ -- - - -- - - -- - 3,780 -- - - 1,159,000 - - - 1,159,000 32,794 657,394 3,780 56,122 - - - 56,122 - - - -691 1,952 - -- - 574,003 -- - - -- - - -- - - -14,145 - - -- 1,994,308 - 1,891,686 - - - -- - - 1,891,686 14,836 1,996,260 574,003 3,106,808$ 47,630$ 2,653,654$ 577,783$ Energy Independence Loan Air Quality Management Aquatic Center Cannabis Compliance 113 Item 1I-132 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments Receivables: Accounts Assessments Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Restricted assets: Cash and investments with fiscal agents Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds Advances from other funds TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues Total Deferred Inflows of Resources FUND BALANCES: Nonspendable: Prepaid costs Restricted for: Public safety Street related purposes Low income housing Public facilities Special programs Committed to: Aquatic center Energy loan program Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 70,103$ 4,534,224$ 1,361,669$ -$ 28,486,996$ 11,878 - - - 804,412 - - - - 5,874 - - - - 1,435,167 - - - - 236,626 - - - - (180,504) - - - - 2,843 - 28,563 - 171,306 713,827 - -- -7,813 - - - - 19,611 - - - - 654,000 - - - - (654,000) 81,981$ 4,562,787$ 1,361,669$ 171,306$ 31,532,665$ 10,496$ 61,486$ 349$ -$ 1,204,759$ - - 11,669 - 11,669 - - - - 383,838 - - - - 3,780 - - - 171,306 212,345 - - - - 1,159,000 10,496 61,486 12,018 171,306 2,975,391 - - - - 239,203 - - - - 239,203 - - - - 2,843 - - - - 1,958,136 - - 1,349,651 - 7,701,044 - - - - 3,547,149 - - - - 3,834,842 71,485 4,501,301 - - 7,514,677 - - - - 1,994,308 - - - - 1,891,686 - - - - (126,614) 71,485 4,501,301 1,349,651 - 28,318,071 81,981$ 4,562,787$ 1,361,669$ 171,306$ 31,532,665$ El Paseo Assessment District Landscape and Lighting Districts Nos. 1 - 17 Affordable Housing Fund Permanent Local Housing Allocation Grant Total Other Special Revenue Funds 114 Item 1I-133 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 115 Item 1I-134 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Taxes -$ -$ 27,247$ -$ Special assessments collected - - - - Intergovernmental revenues - 2,324,252 - 42,492 Charges for services - -- - Investment earnings (87) 28,930 (36,942) 108 Fines and forfeitures 5,334 - - - Miscellaneous - - 30,000 - TOTAL REVENUES 5,247 2,353,182 20,305 42,600 EXPENDITURES: Current: General government - - - 225,573 Public safety - - - - Parks, recreation and culture - - - - Public works - 2,053,709 - - Housing and redevelopment - -49,048 - Capital outlay - -- - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - TOTAL EXPENDITURES - 2,053,709 49,048 225,573 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 5,247 299,473 (28,743) (182,973) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (2,500) - - - TOTAL OTHER FINANCING SOURCES (USES) (2,500) - - - NET CHANGE IN FUND BALANCES 2,747 299,473 (28,743) (182,973) FUND BALANCES - BEGINNING OF YEAR 191 4,869,695 3,575,892 56,359 FUND BALANCES - END OF YEAR 2,938$ 5,169,168$ 3,547,149$ (126,614)$ Traffic Safety Gas Tax Housing Mitigation Fee Community Development Block Grant 116 Item 1I-135 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR (CONTINUED) 32,945$ -$326,092$ 43,295$ --- - -53,024 1,681,840 - --- - (8,321) 1,297 (33,771) (10,432) --- - --- - 24,624 54,321 1,974,161 32,863 --- - -53,024 - - --- - --- - --- - 900,000 -1,600,466 - --- - --- - 900,000 53,024 1,600,466 - (875,376) 1,297 373,695 32,863 --- - --- - --- - (875,376) 1,297 373,695 32,863 1,549,239 14,750 1,078,653 707,674 673,863$ 16,047$ 1,452,348$ 740,537$ Public Safety Police Grants New Construction Tax Planned Drainage Child Care Program 117 Item 1I-136 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR 133,411$ 8,400$ 125,925$ -$ - - - - - - - 13,428 - - - 441,458 (23,845) (6,141) (19,227) (42,512) - - - - - - - - 109,566 2,259 106,698 412,374 - - - 344,161 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 344,161 109,566 2,259 106,698 68,213 - - - - - - - - - - - - 109,566 2,259 106,698 68,213 1,599,065 436,491 1,261,388 2,859,733 1,708,631$ 438,750$ 1,368,086$ 2,927,946$ Parks and Recreational Facilities Traffic Signals Fire Facilities Restoration Recycling 118 Item 1I-137 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR (CONTINUED) -$ -$ -$ 3,386,460$ - - - - -51,351 - - - -667,230 - 130,009 (723) 8,077 - - - -- - - -- 130,009 50,628 675,307 3,386,460 4,904 61,670 - - - - - 212,688 - - 2,053,385 - - - - - - - - - - 1,222 267,759 - 330,000 - - - 100,665 - - - 435,569 62,892 2,321,144 212,688 (305,560) (12,264) (1,645,837) 3,173,772 - - 1,400,500 - - - - (3,500,000) - - 1,400,500 (3,500,000) (305,560) (12,264) (245,337) (326,228) 2,197,246 27,100 2,241,597 900,231 1,891,686$ 14,836$ 1,996,260$ 574,003$ Air Quality Management Aquatic Center Cannabis Compliance Energy Independence Loan 119 Item 1I-138 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR -$ -$ -$ -$ 4,083,775$ 248,485 885,147 - - 1,133,632 - - - 171,306 4,337,693 - - - - 1,108,688 337 21,793 - - 8,550 - - - - 5,334 - - 1,350,000 - 1,380,000 248,822 906,940 1,350,000 171,306 12,057,672 239,517 - - - 875,825 - - - - 265,712 - - - - 2,053,385 - 715,039 - - 2,768,748 - -245,356 - 294,404 - -349 - 2,769,796 - - - - 330,000 - -- - 100,665 239,517 715,039 245,705 - 9,458,535 9,305 191,901 1,104,295 171,306 2,427,831 - 114,673 245,356 - 1,760,529 - -- (171,306) (3,502,500) - 114,673 245,356 (171,306) (1,741,971) 9,305 306,574 1,349,651 - 685,860 62,180 4,194,727 - - 27,632,211 71,485$ 4,501,301$ 1,349,651$ -$ 28,318,071$ Total Other Special Revenue Funds El Paseo Assessment District Landscape and Lighting Districts Nos. 1 - 17 Affordable Housing Fund Permanent Local Housing Allocation Grant 120 Item 1I-139 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE TRAFFIC SAFETY YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 191$ 191$ 191$ -$ Resources (Inflows): Investment earnings - -(87)(87) Fines and forfeitures 2,500 2,500 5,334 2,834 Amounts Available for Appropriations 2,691 2,691 5,438 2,747 Charges to Appropriation (Outflow): Transfers out 2,500 2,500 2,500 - Total Charges to Appropriations 2,500 2,500 2,500 - Budgetary Fund Balance, June 30 191$ 191$ 2,938$ 2,747$ 121 Item 1I-140 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE GAS TAX YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 4,869,695$ 4,869,695$ 4,869,695$ -$ Resources (Inflows): Intergovernmental 2,392,339 2,392,339 2,324,252 (68,087) Investment earnings 20,000 20,000 28,930 8,930 Amounts Available for Appropriations 7,282,034 7,282,034 7,222,877 (59,157) Charges to Appropriation (Outflow): Public works 4,550,000 4,815,238 2,053,709 2,761,529 Total Charges to Appropriations 4,550,000 4,815,238 2,053,709 2,761,529 Budgetary Fund Balance, June 30 2,732,034$ 2,466,796$ 5,169,168$ 2,702,372$ 122 Item 1I-141 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING MITIGATION FEE YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,575,892$ 3,575,892$ 3,575,892$ -$ Resources (Inflows): Taxes 68,600 68,600 27,247 (41,353) Investment earnings 15,000 15,000 (36,942) (51,942) Miscellaneous - -30,000 30,000 Amounts Available for Appropriations 3,659,492 3,659,492 3,596,197 (63,295) Charges to Appropriation (Outflow): Housing and redevelopment 550,000 550,000 49,048 500,952 Total Charges to Appropriations 550,000 550,000 49,048 500,952 Budgetary Fund Balance, June 30 3,109,492$ 3,109,492$ 3,547,149$ 437,657$ 123 Item 1I-142 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 56,359$ 56,359$ 56,359$ -$ Resources (Inflows): Intergovernmental 418,663 418,663 42,492 (376,171) Investment earnings 100 100 108 8 Amounts Available for Appropriations 475,122 475,122 98,959 (376,163) Charges to Appropriation (Outflow): General government 418,663 629,763 225,573 404,190 Total Charges to Appropriations 418,663 629,763 225,573 404,190 Budgetary Fund Balance, June 30 56,459$ (154,641)$ (126,614)$ 28,027$ 124 Item 1I-143 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CHILD CARE PROGRAM YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,549,239$ 1,549,239$ 1,549,239$ -$ Resources (Inflows): Taxes 56,800 56,800 32,945 (23,855) Investment earnings 9,000 9,000 (8,321) (17,321) Amounts Available for Appropriations 1,615,039 1,615,039 1,573,863 (41,176) Charges to Appropriation (Outflow): Capital outlay - 1,584,000 900,000 684,000 Total Charges to Appropriations - 1,584,000 900,000 684,000 Budgetary Fund Balance, June 30 1,615,039$ 31,039$ 673,863$ 642,824$ 125 Item 1I-144 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PUBLIC SAFETY POLICE GRANTS YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 14,750$ 14,750$ 14,750$ -$ Resources (Inflows): Intergovernmental 200,000 200,000 53,024 (146,976) Investment earnings 500 500 1,297 797 Amounts Available for Appropriations 215,250 215,250 69,071 (146,179) Charges to Appropriation (Outflow): Public safety 112,000 112,000 53,024 58,976 Capital outlay 88,000 88,000 -88,000 Total Charges to Appropriations 200,000 200,000 53,024 146,976 Budgetary Fund Balance, June 30 15,250$ 15,250$ 16,047$ 797$ 126 Item 1I-145 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE NEW CONSTRUCTION TAX YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,078,653$ 1,078,653$ 1,078,653$ -$ Resources (Inflows): Taxes 307,400 307,400 326,092 18,692 Intergovernmental 2,092,000 2,092,000 1,681,840 (410,160) Investment earnings 3,000 3,000 (33,771) (36,771) Amounts Available for Appropriations 3,481,053 3,481,053 3,052,814 (428,239) Charges to Appropriation (Outflow): Capital outlay -4,312,549 1,600,466 2,712,083 Total Charges to Appropriations -4,312,549 1,600,466 2,712,083 Budgetary Fund Balance, June 30 3,481,053$ (831,496)$ 1,452,348$ 2,283,844$ 127 Item 1I-146 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PLANNED DRAINAGE YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 707,674$ 707,674$ 707,674$ -$ Resources (Inflows): Taxes 60,000 60,000 43,295 (16,705) Investment earnings 3,000 3,000 (10,432) (13,432) Amounts Available for Appropriations 770,674 770,674 740,537 (30,137) Charges to Appropriation (Outflow): Public works - 36,101 -36,101 Capital outlay - 13,000 -13,000 Total Charges to Appropriations - 49,101 -49,101 Budgetary Fund Balance, June 30 770,674$ 721,573$ 740,537$ 18,964$ 128 Item 1I-147 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATIONAL FACILITIES YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,599,065$ 1,599,065$ 1,599,065$ -$ Resources (Inflows): Taxes 25,000 25,000 133,411 108,411 Investment earnings 3,000 3,000 (23,845) (26,845) Amounts Available for Appropriations 1,627,065 1,627,065 1,708,631 81,566 Charges to Appropriation (Outflow): Capital outlay 250,000 1,303,333 -1,303,333 Total Charges to Appropriations 250,000 1,303,333 -1,303,333 Budgetary Fund Balance, June 30 1,377,065$ 323,732$ 1,708,631$ 1,384,899$ 129 Item 1I-148 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE TRAFFIC SIGNALS YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 436,491$ 436,491$ 436,491$ -$ Resources (Inflows): Taxes 25,000 25,000 8,400 (16,600) Investment earnings 500 500 (6,141) (6,641) Amounts Available for Appropriations 461,991 461,991 438,750 (23,241) Charges to Appropriation (Outflow): Capital outlay 75,000 231,925 - 231,925 Total Charges to Appropriations 75,000 231,925 - 231,925 Budgetary Fund Balance, June 30 386,991$ 230,066$ 438,750$ 208,684$ 130 Item 1I-149 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE FIRE FACILITIES RESTORATION YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,261,388$ 1,261,388$ 1,261,388$ -$ Resources (Inflows): Taxes 39,400 39,400 125,925 86,525 Investment earnings 7,000 7,000 (19,227) (26,227) Amounts Available for Appropriations 1,307,788 1,307,788 1,368,086 60,298 Charges to Appropriation (Outflow): Capital outlay - 1,223,471 -1,223,471 Total Charges to Appropriations - 1,223,471 -1,223,471 Budgetary Fund Balance, June 30 1,307,788$ 84,317$ 1,368,086$ 1,283,769$ 131 Item 1I-150 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE RECYCLING YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,859,733$ 2,859,733$ 2,859,733$ -$ Resources (Inflows): Intergovernmental - - 13,428 13,428 Charges for services 275,000 275,000 441,458 166,458 Investment earnings 7,000 7,000 (42,512) (49,512) Amounts Available for Appropriations 3,141,733 3,141,733 3,272,107 130,374 Charges to Appropriation (Outflow): General government 370,000 633,005 344,161 288,844 Public works - 27,692 -27,692 Total Charges to Appropriations 370,000 660,697 344,161 316,536 Budgetary Fund Balance, June 30 2,771,733$ 2,481,036$ 2,927,946$ 446,910$ 132 Item 1I-151 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ENERGY INDEPENDENCE LOAN YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,197,246$ 2,197,246$ 2,197,246$ -$ Resources (Inflows): Investment earnings 357,000 357,000 130,009 (226,991) Amounts Available for Appropriations 2,554,246 2,554,246 2,327,255 (226,991) Charges to Appropriation (Outflow): General government 15,000 15,000 4,904 10,096 Debt service: Principal retirement 184,000 184,000 330,000 (146,000) Interest and fiscal charges 121,840 121,840 100,665 21,175 Total Charges to Appropriations 320,840 320,840 435,569 (114,729) Budgetary Fund Balance, June 30 2,233,406$ 2,233,406$ 1,891,686$ (341,720)$ 133 Item 1I-152 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE AIR QUALITY MANAGEMENT YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 27,100$ 27,100$ 27,100$ -$ Resources (Inflows): Intergovernmental 73,400 73,400 51,351 (22,049) Investment earnings 50 50 (723)(773) Amounts Available for Appropriations 100,550 100,550 77,728 (22,822) Charges to Appropriation (Outflow): General government 63,100 63,100 61,670 1,430 Total Charges to Appropriations 63,100 83,100 62,892 20,208 Budgetary Fund Balance, June 30 37,450$ 17,450$ 14,836$ (2,614)$ 134 Item 1I-153 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE AQUATIC CENTER YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,241,597$ 2,241,597$ 2,241,597$ -$ Resources (Inflows): Charges for services 875,000 875,000 667,230 (207,770) Investment earnings 3,000 3,000 8,077 5,077 Transfers in 1,400,500 1,400,500 1,400,500 - Amounts Available for Appropriations 4,520,097 4,520,097 4,317,404 (202,693) Charges to Appropriation (Outflow): Parks, recreation and culture 2,093,500 2,093,500 2,053,385 40,115 Capital outlay 185,000 425,276 267,759 157,517 Total Charges to Appropriations 2,278,500 2,518,776 2,321,144 197,632 Budgetary Fund Balance, June 30 2,241,597$ 2,001,321$ 1,996,260$ (5,061)$ 135 Item 1I-154 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CANNABIS COMPLIANCE YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 900,231$ 900,231$ 900,231$ -$ Resources (Inflows): Taxes 2,804,800 2,804,800 3,386,460 581,660 Amounts Available for Appropriations 3,705,031 3,705,031 4,286,691 581,660 Charges to Appropriation (Outflow): Public safety 50,000 50,000 212,688 (162,688) Transfers out 2,500,000 2,500,000 3,500,000 (1,000,000) Total Charges to Appropriations 2,550,000 2,550,000 3,712,688 (1,162,688) Budgetary Fund Balance, June 30 1,155,031$ 1,155,031$ 574,003$ (581,028)$ 136 Item 1I-155 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE EL PASEO ASSESSMENT DISTRICT YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 62,180$ 62,180$ 62,180$ -$ Resources (Inflows): Assessments 250,000 250,000 248,485 (1,515) Investment earnings - -337 337 Amounts Available for Appropriations 312,180 312,180 311,002 (1,178) Charges to Appropriation (Outflow): General government 250,000 250,000 239,517 10,483 Total Charges to Appropriations 250,000 250,000 239,517 10,483 Budgetary Fund Balance, June 30 62,180$ 62,180$ 71,485$ 9,305$ 137 Item 1I-156 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE LANDSCAPE AND LIGHTING DISTRICTS NOS 1 -17 YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 4,194,727$ 4,194,727$ 4,194,727$ -$ Resources (Inflows): Assessments 895,475 895,475 885,147 (10,328) Investment earnings 7,000 7,000 21,793 14,793 Transfers in 110,000 110,000 114,673 4,673 Amounts Available for Appropriations 5,207,202 5,207,202 5,216,340 9,138 Charges to Appropriation (Outflow): Public works 1,058,059 1,058,059 715,039 343,020 Total Charges to Appropriations 1,058,059 1,058,059 715,039 343,020 Budgetary Fund Balance, June 30 4,149,143$ 4,149,143$ 4,501,301$ 352,158$ 138 Item 1I-157 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE AFFORDABLE HOUSING FUND YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Miscellaneous -- 1,350,000 1,350,000 Transfers in 284,100 284,100 245,356 (38,744) Amounts Available for Appropriations 284,100 284,100 1,595,356 1,311,256 Charges to Appropriation (Outflow): Housing and redevelopment 273,100 273,100 245,356 27,744 Capital outlay 1,000 1,000 349 651 Transfers out 10,000 10,000 - 10,000 Total Charges to Appropriations 284,100 284,100 245,705 38,395 Budgetary Fund Balance, June 30 -$ -$ 1,349,651$ 1,349,651$ 139 Item 1I-158 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 140 Item 1I-159 27+(5*29(510(17$/)81'6&$3,7$/352-(&76  &DSLWDO3URMHFWV)XQGVDUHXVHGWRDFFRXQWIRUWKHDFTXLVLWLRQDQGFRQVWUXFWLRQRIPDMRUFDSLWDOIDFLOLWLHV H[FHSWIRUWKRVHILQDQFHGE\FHUWDLQ6SHFLDO5HYHQXHDQG(QWHUSULVHIXQGV  &DSLWDO3URMHFWV5HVHUYH7KLVIXQGLVXVHGWRDFFRXQWIRUUHVRXUFHV DQG H[SHQGLWXUHV IRU FDSLWDO LPSURYHPHQWSURMHFWVWKDWDUHUHODWHGWRWKHDFTXLVLWLRQDQGGHYHORSPHQWRISXEOLFIDFLOLWLHVLQIUDVWUXFWXUH DQGHTXLSPHQW  'UDLQDJH)DFLOLWLHV)XQG7KLVIXQGLVXVHGWRDFFRXQWIRUUHVRXUFHVDQGH[SHQGLWXUHVIRUSODQQHGFDSLWDO LPSURYHPHQWSURMHFWVWKDWDUHXQGHUWKH0DVWHU'UDLQDJH3ODQ  (FRQRPLF'HYHORSPHQW7KLVIXQGLVXVHGWRDFFRXQWIRUIDoDGHHQKDQFHPHQWSURMHFWVIRU3DOP'HVHUW EXVLQHVVHVXWLOL]LQJIXQGVIURPWKHVDOHVRIFHUWDLQ&LW\RZQHGSURSHUWLHV  3DUNVDQG5HFUHDWLRQDO)DFLOLWLHV)XQG7KLVIXQGLVXVHGWRDFFRXQWIRUUHVRXUFHVDQGH[SHQGLWXUHVIRU FDSLWDOLPSURYHPHQWSURMHFWVWKDWDUHUHODWHGWRSDUNGHYHORSPHQWPDLQWHQDQFHDQGHTXLSPHQW  $UWLQ3XEOLF3ODFHV)XQG7KLVIXQGLVXVHGWRDFFRXQWIRUIHHVFROOHFWHGIURPUHVLGHQWLDOFRPPHUFLDODQG SXEOLFIDFLOLWLHVGHYHORSPHQWH[FHSWIRUVWUHHWDQGGUDLQDJHSURMHFWV,WVXVHLVUHVWULFWHGIRUDFTXLVLWLRQ LQVWDOODWLRQLPSURYHPHQWDQGPDLQWHQDQFHRIDUWZRUNWREHGLVSOD\HGLQWKH&LW\WKHDGPLQLVWUDWLRQRIWKH SURJUDPDQGFRPPXQLW\SXEOLFDUWHGXFDWLRQSURJUDPV  6LJQDOL]DWLRQ)XQG7KLVIXQGLVXVHGWRDFFRXQWIRUUHVRXUFHVDQGH[SHQGLWXUHVIRUFDSLWDOLPSURYHPHQW SURMHFWVWKDWDUHUHODWHGWRWKHDFTXLVLWLRQDQGPDLQWHQDQFHRIWUDIILFVLJQDOV  &DSLWDO*ROI)XQG7KLVIXQGLVXVHGWRRIIVHWWKHFRVWRIFDSLWDOLPSURYHPHQWVHTXLSPHQWSXUFKDVHV SHULPHWHUPDLQWHQDQFHSD\RIIDVVHVVPHQWVDQGRWKHUQRQUHFXUULQJFRVWVWKDWZLOODULVHDVDUHVXOWRI 'HVHUW:LOORZ*ROI&RXUVH5HVRUW)XQGLQJVRXUFHVIRUWKH*ROI&RXUVH0DLQWHQDQFH)XQGDUHFROOHFWLRQV IURPWKH,52&DQG6WDQGDUG9DFDWLRQ2ZQHUVKLS,QFWLPHVKDUHSURMHFW  %XLOGLQJV)XQG7KLVIXQGLVXVHGWRDFFRXQWIRUUHVRXUFHVDQGH[SHQGLWXUHVIRUFDSLWDOLPSURYHPHQW SURMHFWVWKDWDUHUHODWHGWRWKHLPSURYHPHQWDQGPDLQWHQDQFHRISXEOLFIDFLOLWLHVDQGVWUXFWXUHV  /LEUDU\)XQG7KLVIXQGLVXVHGWRDFFRXQWIRUUHVRXUFHVDQGH[SHQGLWXUHVIRUFDSLWDOLPSURYHPHQWSURMHFWV WKDWDUHUHODWHGWRWKHSXUFKDVHRIOLEUDU\UHVRXUFHVIRUWKH0XOWL$JHQF\/LEUDU\  6SHFLDO $VVHVVPHQW 'LVWULFW )XQGV  7KLV IXQG LV XVHG WR DFFRXQW IRU WKH FRQVWUXFWLRQ RI SXEOLF LPSURYHPHQWVIURPSURFHHGVUHVXOWLQJIURPWKHFUHDWLRQRIYDULRXVDVVHVVPHQW'LVWULFWV  $VVHVVPHQW'LVWULFW1R0HUDQR 6LOYHU6SXU5DQFK +LJKODQGV8QGHUJURXQGLQJ &)'8QLYHUVLW\6SHFLDO$VVHVVPHQW $VVHVVPHQW  141 Item 1I-160 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments 10,635,997$ 2,022,971$ 1,766,965$ 10,619$ Receivables: Interest ---1,315,141 Allowance for interest on Successor Agency --- (1,315,141) Prepaid costs --16,621 - Deposits --20,000 - Advances to Successor Agency ---4,765,000 Allowance for Advances to Successor Agency --- (4,765,000) TOTAL ASSETS 10,635,997$ 2,022,971$ 1,803,586$ 10,619$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable 638,356$ 18,910$ 15,543$ 923$ Unearned revenues 251,273 --- TOTAL LIABILITIES 889,629 18,910 15,543 923 DEFERRED INFLOWS OF RESOURCES: Unavailable revenues ---- TOTAL DEFERRED INFLOWS OF RESOURCES ---- FUND BALANCES: Nonspendable: Prepaid costs --16,621 - Restricted for: Capital Projects ---- Special programs ---- Assigned to: Capital projects 9,325,981 --- Property acquisition 420,387 --- Public facilities -- 1,771,422 9,696 Special programs ---- Street related purposes -2,004,061 -- TOTAL FUND BALANCES 9,746,368 2,004,061 1,788,043 9,696 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 10,635,997$ 2,022,971$ 1,803,586$ 10,619$ Capital Projects Reserve Drainage Facilities Economic Development Parks and Recreational Facilities 142 Item 1I-161 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments Receivables: Interest Allowance for interest on Successor Agency Prepaid costs Deposits Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable Unearned revenues TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES: Nonspendable: Prepaid costs Restricted for: Capital Projects Special programs Assigned to: Capital projects Property acquisition Public facilities Special programs Street related purposes TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES (CONTINUED) 1,415,038$ 107,685$ 11,316,798$ 2,634,982$ ---- ---- 127 --- ---- ---- ---- 1,415,165$ 107,685$ 11,316,798$ 2,634,982$ 5,434$ -$ 92,812$ 84,716$ ---- 5,434 -92,812 84,716 164,790 --- 164,790 --- 127 --- ---- 1,244,814 --- ---- ---- -- 11,223,986 2,550,266 ---- -107,685 -- 1,244,941 107,685 11,223,986 2,550,266 1,415,165$ 107,685$ 11,316,798$ 2,634,982$ Art in Public Places Signalization Capital Golf Buildings 143 Item 1I-162 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments Receivables: Interest Allowance for interest on Successor Agency Prepaid costs Deposits Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable Unearned revenues TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES: Nonspendable: Prepaid costs Restricted for: Capital Projects Special programs Assigned to: Capital projects Property acquisition Public facilities Special programs Street related purposes TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 664,555$ 188,794$ 618$ 21$ ---- ---- ---- ---- ---- ---- 664,555$ 188,794$ 618$ 21$ -$ -$ -$ -$ ---- ---- ---- ---- ---- - 188,794 618 21 ---- ---- ---- ---- 664,555 --- ---- 664,555 188,794 618 21 664,555$ 188,794$ 618$ 21$ Library Assessment District No. 94- 3 Merano Silver Spur Ranch Highlands Undergrounding 144 Item 1I-163 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2022 ASSETS: Pooled cash and investments Receivables: Interest Allowance for interest on Successor Agency Prepaid costs Deposits Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable Unearned revenues TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES: Nonspendable: Prepaid costs Restricted for: Capital Projects Special programs Assigned to: Capital projects Property acquisition Public facilities Special programs Street related purposes TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES -$ 670$ -$ 30,765,713$ ---1,315,141 -- (1,315,141) ---16,748 ---20,000 ---4,765,000 --- (4,765,000) -$ 670$ -$ 30,802,461$ -$ -$ -$ 856,694$ --- 251,273 ---1,107,967 --- 164,790 --- 164,790 ---16,748 -670 - 190,103 ---1,244,814 ---9,325,981 --- 420,387 ---15,555,370 --- 664,555 ---2,111,746 -670 -29,529,704 -$ 670$ -$ 30,802,461$ CFD University Special Assessment District University Park Assessment 29 Total Other Capital Projects Funds 145 Item 1I-164 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Licenses and permits -$-$-$-$ Intergovernmental revenues --70,952 - Investment earnings (131,845) (28,330) (41,775) (437) Rental income --67,649 - Miscellaneous --9,063 - TOTAL REVENUES (131,845) (28,330) 105,889 (437) EXPENDITURES: Current: General government 400,000 - 3,047,499 - Parks, recreation and culture 75,820 --- Public works -18,910 -- Capital outlay 1,683,407 --14,268 TOTAL EXPENDITURES 2,159,227 18,910 3,047,499 14,268 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (2,291,072) (47,240) (2,941,610) (14,705) OTHER FINANCING SOURCES (USES) Transfers in 1,090,000 - 830,000 - Transfers out (100,000) --- Capital leases -- 2,468,060 - TOTAL OTHER FINANCING SOURCES (USES) 990,000 - 3,298,060 - NET CHANGE IN FUND BALANCES (1,301,072) (47,240) 356,450 (14,705) FUND BALANCES - BEGINNING OF YEAR 11,047,440 2,051,301 1,431,593 24,401 FUND BALANCES - END OF YEAR 9,746,368$ 2,004,061$ 1,788,043$ 9,696$ Economic Development Parks and Recreational Facilities Capital Projects Reserve Drainage Facilities 146 Item 1I-165 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Licenses and permits Intergovernmental revenues Investment earnings Rental income Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Capital leases TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR (CONTINUED) 346,669$ -$-$-$ ---- (20,926) (1,508) (104,523) (37,085) ---- 80,000 - 2,488,331 - 405,743 (1,508) 2,383,808 (37,085) ---- 94,439 -464,565 - ---- 105,780 --345,989 200,219 -464,565 345,989 205,524 (1,508) 1,919,243 (383,074) ---100,000 (101,067) --- ---- (101,067) --100,000 104,457 (1,508) 1,919,243 (283,074) 1,140,484 109,193 9,304,743 2,833,340 1,244,941$ 107,685$ 11,223,986$ 2,550,266$ Art in Public Places Signalization Capital Golf Buildings 147 Item 1I-166 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Licenses and permits Intergovernmental revenues Investment earnings Rental income Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Capital leases TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR -$-$-$ -$ ---- (9,306) --- ---- ---- (9,306) --- ---- ---- ---- ---- ---- (9,306) --- ---- ---- ---- ---- (9,306) --- 673,861 188,794 618 21 664,555$ 188,794$ 618$ 21$ Library Assessment District No. 94- 3 Merano Silver Spur Ranch Highlands Undergrounding 148 Item 1I-167 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2022 REVENUES: Licenses and permits Intergovernmental revenues Investment earnings Rental income Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Capital leases TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR -$-$ -$346,669$ ---70,952 (7,572) -73 (383,234) --67,649 ---2,577,394 (7,572) - 1,974,726 4,654,083 1,916,052 --5,363,551 --- 634,824 2,692 --21,602 -- 1,974,726 4,124,170 1,918,744 - 1,974,726 10,144,147 (1,926,316) --(5,490,064) ---2,020,000 ---(201,067) ---2,468,060 ---4,286,993 (1,926,316) --(1,203,071) 1,926,316 670 -30,732,775 -$670$ -$29,529,704$ Total Other Capital Projects Fund University Park CFD University Special Assessment District Assessment 29 149 Item 1I-168 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL PROPERTIES YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 55,049,189$ 55,049,189$ 55,049,189$ -$ Resources (Inflows): Investment earnings 20,000 20,000 64,555 44,555 Miscellaneous --2,698,181 2,698,181 Amounts Available for Appropriations 55,069,189 55,069,189 57,811,925 2,742,736 Charges to Appropriation (Outflow): General government 20,000,000 20,000,000 2,855 19,997,145 Parks and recreation 550,000 550,000 -550,000 Public works 250,000 9,485,539 8,370,585 1,114,954 Capital outlay 1,400,000 2,541,403 1,246,096 1,295,307 Total Charges to Appropriations 22,200,000 32,576,942 9,619,536 22,957,406 Budgetary Fund Balance, June 30 32,869,189$ 22,492,247$ 48,192,389$ 25,700,142$ 150 Item 1I-169 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS RESERVE YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 11,047,440$ 11,047,440$ 11,047,440$ -$ Resources (Inflows): Investment earnings 10,000 10,000 (131,845) (141,845) Transfers in -640,000 1,090,000 450,000 Amounts Available for Appropriations 11,057,440 11,697,440 12,005,595 308,155 Charges to Appropriation (Outflow): General government 400,000 400,000 400,000 - Public safety - 68,152 -68,152 Parks, recreation and culture 129,000 134,035 75,820 58,215 Public works 100,000 100,000 -100,000 Capital outlay 1,600,000 2,635,000 1,683,407 951,593 Transfers out --100,000 (100,000) Total Charges to Appropriations 2,229,000 3,337,187 2,259,227 1,077,960 Budgetary Fund Balance, June 30 8,828,440$ 8,360,253$ 9,746,368$ 1,386,115$ 151 Item 1I-170 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE DRAINAGE FACILITIES YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,051,301$ 2,051,301$ 2,051,301$ -$ Resources (Inflows): Investment earnings 5,000 5,000 (28,330) (33,330) Amounts Available for Appropriations 2,056,301 2,056,301 2,022,971 (33,330) Charges to Appropriation (Outflow): Public works 105,000 1,012,926 18,910 994,016 Total Charges to Appropriations 105,000 1,012,926 18,910 994,016 Budgetary Fund Balance, June 30 1,951,301$ 1,043,375$ 2,004,061$ 960,686$ 152 Item 1I-171 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ECONOMIC DEVELOPMENT YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,431,593$ 1,431,593$ 1,431,593$ -$ Resources (Inflows): Rental income 62,968 62,968 67,649 4,681 Intergovernmental 35,000 35,000 70,952 35,952 Investment earnings 1,000 1,000 (41,775) (42,775) Miscellaneous - -9,063 9,063 Transfers in 830,000 830,000 830,000 - Capital leases - -2,468,060 2,468,060 Amounts Available for Appropriations 2,360,561 2,360,561 4,835,542 2,474,981 Charges to Appropriation (Outflow): General government 1,265,575 1,340,575 3,047,499 (1,706,924) Total Charges to Appropriations 1,265,575 1,340,575 3,047,499 (1,706,924) Budgetary Fund Balance, June 30 1,094,986$ 1,019,986$ 1,788,043$ 768,057$ 153 Item 1I-172 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATIONAL FACILITIES YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 24,401$ 24,401$ 24,401$ -$ Resources (Inflows): Investment earnings 100 100 (437) (537) Amounts Available for Appropriations 24,501 24,501 23,964 (537) Charges to Appropriation (Outflow): Capital outlay 20,000 21,378 14,268 7,110 Total Charges to Appropriations 20,000 21,378 14,268 7,110 Budgetary Fund Balance, June 30 4,501$ 3,123$ 9,696$ 6,573$ 154 Item 1I-173 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ART IN PUBLIC PLACES YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,140,484$ 1,140,484$ 1,140,484$ -$ Resources (Inflows): Licenses and permits 103,700 103,700 346,669 242,969 Investment earnings 5,000 5,000 (20,926) (25,926) Miscellaneous - -80,000 80,000 Amounts Available for Appropriations 1,249,184 1,249,184 1,546,227 297,043 Charges to Appropriation (Outflow): Parks, recreation and culture 123,270 123,270 94,439 28,831 Capital outlay 290,000 489,235 105,780 383,455 Transfers out 120,000 120,000 101,067 18,933 Total Charges to Appropriations 533,270 732,505 301,286 431,219 Budgetary Fund Balance, June 30 715,914$ 516,679$ 1,244,941$ 728,262$ 155 Item 1I-174 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE SIGNALIZATION YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 109,193$ 109,193$ 109,193$ -$ Resources (Inflows): Investment earnings 100 100 (1,508) (1,608) Amounts Available for Appropriations 109,293 109,293 107,685 (1,608) Budgetary Fund Balance, June 30 109,293$ 109,293$ 107,685$ (1,608)$ 156 Item 1I-175 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL GOLF YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 9,304,743$ 9,304,743$ 9,304,743$ -$ Resources (Inflows): Investment earnings 30,000 30,000 (104,523) (134,523) Miscellaneous 2,472,369 2,472,369 2,488,331 15,962 Amounts Available for Appropriations 11,807,112 11,807,112 11,688,551 (118,561) Charges to Appropriation (Outflow): Parks, recreation and culture 1,259,000 1,259,000 464,565 794,435 Total Charges to Appropriations 1,259,000 1,259,000 464,565 794,435 Budgetary Fund Balance, June 30 10,548,112$ 10,548,112$ 11,223,986$ 675,874$ 157 Item 1I-176 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BUILDINGS YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,833,340$ 2,833,340$ 2,833,340$ -$ Resources (Inflows): Investment earnings 20,000 20,000 (37,085) (57,085) Transfers in -- 100,000 100,000 Amounts Available for Appropriations 2,853,340 2,853,340 2,896,255 42,915 Charges to Appropriation (Outflow): Parks, recreation and culture 700,000 700,000 - 700,000 Capital outlay 1,623,820 1,931,685 345,989 1,585,696 Total Charges to Appropriations 2,323,820 2,631,685 345,989 2,285,696 Budgetary Fund Balance, June 30 529,520$ 221,655$ 2,550,266$ 2,328,611$ 158 Item 1I-177 27+(5*29(510(17$/)81'6±'(%76(59,&()81'  &LW\+LJKODQGV8QGHUJURXQGLQJ)XQG±7KLVIXQGLVXVHGWRDFFRXQWIRUWKHUHVRXUFHVDQGSD\PHQWIRUGHEW UHODWHGWR+LJKODQGV8QGHUJURXQGLQJ  159 Item 1I-178 CITY OF PALM DESERT BALANCE SHEET OTHER DEBT SERVICE FUND JUNE 30, 2022 ASSETS: Pooled cash and investments 95,493$95,493$ Receivables: Assessments 1,133,708 1,133,708 Due from other governments 4,213 4,213 TOTAL ASSETS 1,233,414$ 1,233,414$ DEFERRED INFLOWS OF RESOURCES: Unavailable revenues 1,133,708$ 1,133,708$ TOTAL DEFERRED INFLOWS OF RESOURCES 1,133,708 1,133,708 FUND BALANCES: Restricted for: Debt service 99,706 99,706 TOTAL FUND BALANCES 99,706 99,706 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 1,233,414$ 1,233,414$ City Highland Undergrounding Total Other Debt Service Fund 160 Item 1I-179 CITY OF PALM DESERT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER DEBT SERVICE FUND YEAR ENDED JUNE 30, 2022 Total Other Debt Service Fund REVENUES: Special assessments collected 142,682$ 142,682$ Investment earnings (1,961) (1,961) TOTAL REVENUES 140,721 140,721 EXPENDITURES: Current: General government 15,479 15,479 Debt service: Principal retirement 48,000 48,000 Interest and fiscal charges 56,797 56,797 TOTAL EXPENDITURES 120,276 120,276 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 20,445 20,445 NET CHANGE IN FUND BALANCES 20,445 20,445 FUND BALANCES - BEGINNING OF YEAR 79,261 79,261 FUND BALANCES - END OF YEAR 99,706$ 99,706$ City Highlands Undergrounding 161 Item 1I-180 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CITY HIGHLAND UNDERGROUNDING YEAR ENDED JUNE 30, 2022 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 79,261$ 79,261$ 79,261$ -$ Resources (Inflows): Assessments 118,311 118,311 142,682 24,371 Investment earnings 2,000 2,000 (1,961) (3,961) Amounts Available for Appropriations 199,572 199,572 219,982 20,410 Charges to Appropriation (Outflow): General government 14,000 14,000 15,479 (1,479) Debt service: Principal retirement 48,000 48,000 48,000 - Interest and fiscal charges 56,798 56,798 56,797 1 Total Charges to Appropriations 118,798 118,798 120,276 (1,478) Budgetary Fund Balance, June 30 80,774$ 80,774$ 99,706$ 18,932$ 162 Item 1I-181 ,17(51$/6(59,&()81'6  ,QWHUQDO6HUYLFH)XQGVDUHXVHGWRDFFRXQWIRUVHUYLFHVSURYLGHGWRRWKHUGHSDUWPHQWVRUDJHQFLHVRIWKH &LW\RQDFRVWUHLPEXUVHPHQWEDVLV  (TXLSPHQW5HSODFHPHQW±7KLVIXQGLVXVHGWRDFFRXQWIRUILQDQFLDOWUDQVDFWLRQVUHODWHGWRUHSODFHPHQWRI &LW\RZQHGYHKLFOHVDQGHTXLSPHQW  &RPSHQVDWLRQ%HQHILWV)XQG±7KLVIXQGLVXVHGWRDFFRXQWIRUIXQGLQJRIFRPSHQVDWHGDEVHQFHV  163 Item 1I-182 &,7<2)3$/0'(6(57 &20%,1,1*67$7(0(172)1(7326,7,21 ,17(51$/6(59,&()81'6 -81( 7RWDO $66(76 &855(17$66(76 &DVKDQGLQYHVWPHQWV    3UHSDLGFRVWV    727$/&855(17$66(76    &$3,7$/$66(76 1RQGHSUHFLDEOH    'HSUHFLDEOHQHW  &$3,7$/$66(761(7    727$/$66(76    /,$%,/,7,(6 &855(17/,$%,/,7,(6 $FFRXQWVSD\DEOH    &RPSHQVDWHGDEVHQFHV    727$/&855(17/,$%,/,7,(6    121&855(17/,$%,/,7,(6 &RPSHQVDWHGDEVHQFHV    727$/121&855(17/,$%,/,7,(6   727$//,$%,/,7,(6    1(7326,7,21 ,QYHVWHGLQFDSLWDODVVHWV    8QUHVWULFWHG     727$/1(7326,7,21     (TXLSPHQW 5HSODFHPHQW &RPSHQVDWLRQ %HQHILWV 164 Item 1I-183 &,7<2)3$/0'(6(57 &20%,1,1*67$7(0(172)5(9(18(6(;3(16(6 $1'&+$1*(6,1)81'1(7326,7,21 ,17(51$/6(59,&()81'6 <($5(1'('-81( 7RWDO 23(5$7,1*(;3(16(6 *HQHUDODQGDGPLQLVWUDWLYH    0DLQWHQDQFHDQGRSHUDWLRQV    'HSUHFLDWLRQDQGDPRUWL]DWLRQ    727$/23(5$7,1*(;3(16(6    23(5$7,1*/266       12123(5$7,1*5(9(18(6 (;3(16(6  ,QWHUHVWUHYHQXH       /RVVRQGLVSRVDORIFDSLWDODVVHWV      727$/12123(5$7,1*5(9(18(6 (;3(16(6       /266%()25(75$16)(56$1'&$3,7$/&2175,%87,216       75$16)(56,1    &+$1*(,11(7326,7,21       1(7326,7,21%(*,11,1*2)<($5    1(7326,7,21(1'2)<($5     (TXLSPHQW 5HSODFHPHQW &RPSHQVDWLRQ %HQHILWV 165 Item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tem 1I-185 &8672',$/)81'6  &XVWRGLDO)XQGVDUHXVHGWRDFFRXQWIRUDVVHWVKHOGE\WKHFLW\DVDQFXVWRGLDQIRULQGLYLGXDOVSULYDWH RUJDQL]DWLRQVRWKHUJRYHUQPHQWVDQGRUIXQGV  5HWLUHH6HUYLFH6WLSHQG)XQG7KLVIXQGLVXVHGWRDFFRXQWIRUDVVHWVKHOGWRSD\IRUWKHUHWLUHHVHUYLFH VWLSHQG  6SHFLDO$VVHVVPHQW)XQGV7KHVHIXQGVDUHXVHGWRDFFRXQWIRUWKHFROOHFWLRQRIVSHFLDODVVHVVPHQWV DQGWKHIXWXUHSD\PHQWRIGHEWVHUYLFHUHODWHGWRERQGVLVVXHG 167 Item 1I-186 CITY OF PALM DESERT ALL CUSTODIAL FUNDS JUNE 30, 2022 Totals Assets: Pooled cash and investments 2,883,350$ 4,767,987$ 7,651,337$ Receivables: Assessments - 36,878,571 36,878,571 Accrued interest - 163 163 Due from other governments - 19,214 19,214 Restricted assets: Cash and investments with fiscal agents - 3,004,892 3,004,892 Total Assets 2,883,350 44,670,827 47,554,177 Liabilities: Accounts payable - 1,500 1,500 Deposits payable - 36,878,571 36,878,571 Total Liabilities - 36,880,071 36,880,071 Net Position: Restricted for other purposes 2,883,350 7,790,756 10,674,106 Total Net Position 2,883,350$ 7,790,756$ 10,674,106$ COMBINING STATEMENT OF NET POSITION Retiree Service Stipend Fund Special Assessment Funds 168 Item 1I-187 CITY OF PALM DESERT COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ALL CUSTODIAL FUNDS YEAR ENDED JUNE 30, 2022 ADDITIONS: Intergovernmental -$ 41,231,444$ 41,231,444$ Investment income (26,555) (136,355) (162,910) Contributions from City 1,001,688 2,692 1,004,380 TOTAL ADDITIONS 975,133 41,097,781 42,072,914 DEDUCTIONS Administrative expenses 7,600 1,389,434 1,397,034 Contractual services 994,088 43,766,194 44,760,282 Interest - 914,927 914,927 Debt service expense - 110,000 110,000 TOTAL DEDUCTIONS 1,001,688 46,180,555 47,182,243 CHANGES IN NET POSITION (26,555) (5,082,774) (5,109,329) NET POSITION - BEGINNING OF YEAR 2,909,905 (34,206,470) (31,296,565) Restatement (Note: 21)- 47,080,000 47,080,000 NET POSITION - BEGINNING OF YEAR RESTATED 2,909,905 12,873,530 15,783,435 NET POSITION - END OF YEAR 2,883,350$ 7,790,756$ 10,674,106$ Retiree Service Stipend Fund Special Assessment Funds Total Custodial Funds 169 Item 1I-188 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 170 Item 1I-189   '(6&5,37,212)67$7,67,&$/6(&7,21&217(176  -XQH  7KLVSDUWRIWKH&LW\RI3DOP'HVHUW¶VDQQXDOFRPSUHKHQVLYHILQDQFLDO UHSRUW SUHVHQWV GHWDLOHG LQIRUPDWLRQ DV D FRQWH[W IRU XQGHUVWDQGLQJ ZKDW WKH LQIRUPDWLRQ LQ WKH ILQDQFLDO VWDWHPHQWV QRWH GLVFORVXUHVDQGUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQVD\DERXWWKHFLW\¶VRYHUDOOILQDQFLDOKHDOWK &RQWHQWV )LQDQFLDO7UHQGV 7KHVHVFKHGXOHVFRQWDLQWUHQGLQIRUPDWLRQWRKHOSWKHUHDGHUXQGHUVWDQGKRZWKH&LW\¶V  ILQDQFLDOSHUIRUPDQFHDQGZHOOEHLQJKDYHFKDQJHGRYHUWLPH  5HYHQXH&DSDFLW\  7KHVH VFKHGXOHV FRQWDLQ LQIRUPDWLRQ WR KHOS WKH UHDGHU DVVHVVWKH &LW\¶V PRVW  VLJQLILFDQWORFDOUHYHQXHVRXUFH  'HEW&DSDFLW\  7KHVHVFKHGXOHVSUHVHQWLQIRUPDWLRQWRKHOSWKHUHDGHUDVVHVVWKHDIIRUGDELOLW\RIWKH  &LW\¶VFXUUHQWOHYHOVRIRXWVWDQGLQJGHEWDQGWKH&LW\¶VDELOLW\WRLVVXHDGGLWLRQDOGHEW LQ  WKHIXWXUH  'HPRJUDSKLFDQG(FRQRPLF,QIRUPDWLRQ  7KHVH VFKHGXOHV RIIHU GHPRJUDSKLF DQG HFRQRPLF LQGLFDWRUV WR KHOS WKH UHDGHU  XQGHUVWDQGWKHHQYLURQPHQWZLWKLQZKLFKWKH&LW\¶VILQDQFLDODFWLYLWLHVWDNHSODFH  2SHUDWLQJ,QIRUPDWLRQ  7KHVHVFKHGXOHVFRQWDLQVHUYLFHDQGLQIUDVWUXFWXUHGDWDWRKHOSWKHUHDGHUXQGHUVWDQG  KRZWKHLQIRUPDWLRQLQWKH&LW\¶VILQDQFLDOUHSRUWUHODWHVWRWKHVHUYLFHVWKH&LW\SURYLGHV  DQGWKHDFWLYLWLHVLWSUHIRUPV  6RXUFHV8QOHVVRWKHUZLVHQRWHGWKHLQIRUPDWLRQLQWKHVHVVFKHGXOHVLVGHULYHGIURPWKHFRPSUHKHQVLYH DQQXDOILQDQFLDOUHSRUWVIRUWKHUHOHYDQW\HDU7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQWLQ VFKHGXOHVSUHVHQWLQJJRYHUQPHQWZLGHLQIRUPDWLRQLQFOXGHLQIRUPDWLRQEHJLQQLQJLQWKDW\HDU 171 Item 1I-190 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 172 Item 1I-191 City of Palm Desert Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities 2022 2021 2020 2019 2018 Net Investment in capital assets 422,400,639$ 421,568,819$ 424,163,964$ 429,729,549$ 438,184,070$ Restricted 164,636,470 197,082,889 196,858,726 200,536,233 197,349,364 Unrestricted 146,766,766 92,557,050 86,017,220 90,057,306 83,054,707 Total Governmental Activities Net Position 733,803,875 711,208,758 707,039,910 720,323,088 718,588,141 Net Investment in capital assets 67,327,809 67,981,326 68,394,059 69,070,734 69,111,797 Unrestricted 10,495,570 8,069,182 6,672,261 6,590,251 5,609,843 Total Business-type Activities Net Position 77,823,379 76,050,508 75,066,320 75,660,985 74,721,640 Primary Government Net Investment in capital assets 489,728,448 489,550,145 492,558,023 498,800,283 507,295,867 Restricted 164,636,470 197,082,889 196,858,726 200,536,233 197,349,364 Unrestricted 157,262,336 100,626,232 92,689,481 96,647,557 88,664,550 Total Primary Government Net Position 811,627,254$ 787,259,266$ 782,106,230$ 795,984,073$ 793,309,781$ Governmental Activities 2017 2016 2015 2014 2013 Net Investment in capital assets 449,037,170$ 459,644,720$ 473,722,694$ 466,246,732$ 465,756,172$ Restricted 197,824,604 193,298,431 135,900,520 140,460,575 132,741,798 Unrestricted 87,091,894 78,812,066 71,530,456 105,537,785 103,603,715 Total Governmental Activities Net Position 733,953,668 731,755,217 (3) 681,153,670 (2) 712,245,092 702,101,685 Business-Type Activities Net Investment in capital assets 69,829,772 70,202,487 71,129,743 72,009,184 72,892,200 Unrestricted 4,829,456 4,479,575 4,302,958 3,920,382 3,682,061 Total Business-type Activities Net Position 74,659,228 74,682,062 75,432,701 75,929,566 76,574,261 Primary Government Net Investment in capital assets 518,866,942 529,847,207 544,852,437 538,255,916 538,648,372 Restricted 197,824,604 193,298,431 135,900,520 140,460,575 132,741,798 Unrestricted 91,921,350 83,291,641 75,833,414 109,458,167 107,285,776 Total Primary Government Net Position 808,612,896$ 806,437,279$ 756,586,371$ 788,174,658$ 778,675,946$ (1) 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. (2) The implementation of GASB Statement No. 68 and Statement No. 71 resulted in a prior year restatement decrease of $37.73 million in the governmental activities net positons. (3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. 173 Item 1I-192 City of Palm Desert Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities: General government 24,738,040$ 25,610,212$ 24,297,715$ 23,252,576$ 18,467,097$ Public safety 37,396,780 34,280,941 37,286,860 37,195,732 36,543,050 Housing & Redevelopment 9,626,399 10,496,579 8,802,290 9,067,858 9,605,756 Parks, recreation and culture 8,880,984 7,969,386 7,651,094 8,284,914 8,240,115 Public works 22,071,598 24,979,279 28,270,798 14,836,332 18,358,907 Contributions to property owners 2,692 - - - - Interest on long term debt 148,079 176,259 203,183 231,228 259,250 Total Governmental activities Expenses 102,864,572 103,512,656 106,511,940 92,868,640 91,474,175 Business-Type Activities: Desert Willow Golf Course 9,910,813 8,960,991 8,603,243 8,700,514 8,763,220 Office Complex - Parkview 951,353 872,212 856,196 874,753 930,815 Total Business-Type Activities 10,862,166 9,833,203 9,459,439 9,575,267 9,694,035 Total primary government expenses 113,726,738$ 113,345,859$ 115,971,379$ 102,443,907$ 101,168,210$ Program Revenues Governmental Activities Charges for services General government 2,901,226$ 2,437,840$ 2,343,116$ 2,645,724$ 2,388,260$ Housing & Redevelopment 8,060,726 7,455,959 8,446,585 8,180,354 7,551,760 Public safety 17,506,658 18,828,021 16,429,810 14,503,741 10,801,436 Parks, recreation and culture 675,307 325,485 532,543 829,557 821,824 Public works 3,075,351 2,443,299 2,386,635 2,762,045 2,685,831 Operating grants & contributions 20,328,308 10,617,579 10,416,281 10,426,397 8,555,881 Capital grants & contributions 4,828,197 16,836,560 3,661,487 4,016,193 2,442,621 Total Governmental Activities Program Revenues 57,375,773 58,944,743 44,216,457 43,364,011 35,247,613 Business-Type Activities Charges for Service: Desert Willow Golf Course 11,068,847 9,171,607 7,099,985 8,743,654 8,432,273 Office Complex - Parkview 1,340,680 1,291,020 1,311,140 1,298,066 1,250,456 Capital grants & contributions 187,083 220,198 183,556 504,217 167,670 Total Business-type activities program revenue 12,596,610 10,682,825 8,594,681 10,545,937 9,850,399 Total Primary Government program revenue 69,972,383$ 69,627,568$ 52,811,138$ 53,909,948$ 45,098,012$ Net (Expense) / Revenue Governmental activities (45,488,799)$ (44,567,913)$ (62,295,483)$ (49,504,629)$ (56,226,562)$ Business-type activities 1,734,444 849,622 (864,758) 970,670 156,364 Total Primary Government Net Expense (43,754,355)$ (43,718,291)$ (63,160,241)$ (48,533,959)$ (56,070,198)$ General Revenues & Other Changes in Net Position Governmental Activities: Taxes: (Combined/Net Pass-through)66,204,764$ 47,221,069$ 45,210,477$ 53,894,917$ 50,150,650$ Investment Earnings (1,971,646) 301,330 2,366,204 3,170,693 1,901,536 Gain(loss) on sales of capital assets -- 80,490 7,452 17,274 Miscellaneous 3,850,798 1,214,362 1,355,134 1,396,514 1,573,106 Special Item (3)- - - (7,530,000) - Transfers In / (Out) - - - 300,000 300,000 Gain on Transfer to Successor Agency/ Extraordinary Gain (2)- - - - - Total Governmental activities Net Revenues 68,083,916 48,736,761 49,012,305 51,239,576 53,942,566 Business-Type Activities: Investment Earnings (99,994) 20,283 159,115 181,310 74,873 Gain(loss) on sales of capital assets - - - 87,365 131,175 Miscellaneous 138,421 114,283 110,978 - - Transfers Out - - - (300,000) (300,000) Total Business-type activities 38,427 134,566 270,093 (31,325) (93,952) Total primary government 68,122,343$ 48,871,327$ 49,282,398$ 51,208,251$ 53,848,614$ Change in Net Position Governmental Activities: 22,595,117$ 4,168,848$ (13,283,178)$ 1,734,947$ (2,283,996)$ Business-Type Activities:1,772,871 984,188 (594,665) 939,345 62,412 Total primary government 24,367,988$ 5,153,036$ (13,877,843)$ 2,674,292$ (2,221,584)$ (1) 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. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency. Expenses 20182019202020212022 174 Item 1I-193 City of Palm Desert Changes in Net Position Continued Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities: General government 15,708,054$ 14,836,881$ 16,337,393$ 19,194,343$ 16,375,295$ Public safety 34,943,220 34,009,984 32,077,635 29,339,106 28,614,153 Housing & Redevelopment 10,954,630 8,162,859 11,666,724 7,852,611 6,944,033 Parks, recreation and culture 9,850,200 9,223,126 8,598,242 8,327,402 8,752,623 Public works 14,892,145 47,044,197 19,144,213 21,123,197 16,316,237 Interest on long term debt 271,603 289,000 294,258 237,053 253,381 Total Governmental Activities Expenses 86,619,852 113,566,047 88,118,465 86,073,712 77,255,722 Business-Type Activities: Desert Willow Golf Course 8,243,515 8,165,183 8,433,267 8,452,001 8,655,754 Office Complex - Parkview 893,125 1,005,918 934,296 922,341 984,811 Total Business-Type Activities 9,136,640 9,171,101 9,367,563 9,374,342 9,640,565 Total primary government expenses 95,756,492$ 122,737,148$ 97,486,028$ 95,448,054$ 86,896,287$ Program Revenues Governmental Activities Charges for services General government 2,095,648$ 2,185,123$ 2,088,393$ 2,152,280$ 1,833,823$ Housing & Redevelopment 6,861,450 7,029,595 7,971,265 6,851,603 5,308,858 Public safety 10,603,708 10,606,464 9,987,891 10,239,886 11,147,297 Parks, recreation and culture 793,527 772,801 772,728 729,076 898,222 Public works 2,327,521 2,186,153 1,832,241 2,180,877 768,775 Operating grants & contributions 7,931,900 9,496,520 7,512,894 9,745,609 5,876,028 Capital grants & contributions 7,710,355 10,839,715 19,297,015 21,086,051 7,733,439 Total Governmental Activities Program Revenues 38,324,109 43,116,371 49,462,427 52,985,382 33,566,442 Business-Type Activities Charges for Service: Desert Willow Golf Course 7,497,664 7,240,866 7,894,676 7,804,904 7,494,819 Office Complex - Parkview 1,284,462 1,280,230 1,306,042 1,254,521 1,215,860 Capital grants & contributions 605,186 111,942 47,768 94,076 660,685 Total Business-type activities program revenue 9,387,312 8,633,038 9,248,486 9,153,501 9,371,364 Total Primary Government program revenue 47,711,421$ 51,749,409$ 58,710,913$ 62,138,883$ 42,937,806$ Net (Expense) / Revenue Governmental Activities (48,295,743)$ (70,449,676)$ (38,656,038)$ (33,088,330)$ (43,689,280)$ Business-type activities 250,672 (538,063) (119,077) (220,841) (269,201) Total Primary Government Net Expense (48,045,071)$ (70,987,739)$ (38,775,115)$ (33,309,171)$ (43,958,481)$ General Revenues & Other Changes in Net Position Governmental Activities: Taxes: (Combined/Net Pass-through)47,628,454$ 44,747,151$ 41,931,997$ 39,952,738$ 38,742,060$ Investment Earnings 1,041,232 2,074,934 494,452 358,674 318,996 Gain(loss) on sales of assets 2,145 24,292 11,720 488,319 - Miscellaneous 1,522,363 1,828,677 1,726,007 1,994,506 3,894,203 Special Item (3)- - - -- Transfers In / (Out)300,000 237,500 437,500 437,500 437,500 Gain on Transfer to Successor Agency/Extraordinary Gain (2) - 72,138,669 - -- Total Governmental Activities Net Revenues 50,494,194 121,051,223 44,601,676 43,231,737 43,392,759 Business-Type Activities: Investment Earnings 26,494 24,924 11,774 13,646 3,512 Transfers Out (300,000) (237,500) (437,500) (437,500) (437,500) Total Business-type activities (273,506) (212,576) (377,788) (423,854) (433,988) Total primary government 50,220,688$ 120,838,647$ 44,223,888$ 42,807,883$ 42,958,771$ Change in Net Position Governmental Activities: 2,198,451$ 50,601,547$ 5,945,638$ 10,143,407$ (296,521)$ Business-Type Activities:(22,834) (750,639) (496,865) (644,695) (703,189) Total primary government 2,175,617$ 49,850,908$ 5,448,773$ 9,498,712$ (999,710)$ (1) 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. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency. Expenses 20132014201520162017 175 Item 1I-194 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 176 Item 1I-195 City of Palm Desert Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) General Fund:2022 2021 2020 2019 2018 Nonspendable 4,050,414$ 4,178,180$ 7,196,092$ 10,559,396$ 10,509,094$ Committed 82,741,109 73,856,851 66,012,415 63,197,223 59,666,638 Assigned 18,238,107 16,696,825 16,196,564 15,964,130 15,492,508 Unassigned 32,645,330 5,681,608 3,473,480 3,322,321 4,702,308 Total General Fund 137,674,960 100,413,464 92,878,551 93,043,070 90,370,548 All other Governmental Funds: Nonspendable 19,591 18,427 15,705 193,189 1,726 Restricted 164,636,470 168,368,520 168,806,454 175,780,733 169,549,126 Committed 15,761,482 16,312,379 16,275,373 16,247,652 16,751,821 Assigned 28,078,039 27,459,735 27,133,815 21,238,271 23,258,063 Unassigned (126,614) - - - - Total all other Governmental Funds 208,368,968$ 212,159,061$ 212,231,347$ 213,459,845$ 209,560,736$ General Fund:2017 2016 2015 2014 2013 Nonspendable 9,067,979$ 9,528,630$ 10,312,261$ 7,745,320$ 7,678,250$ Assigned 658,817 991,853 1,771,278 4,425,423 3,224,761 Unassigned 74,259,748 71,842,172 67,727,130 66,203,203 65,311,919 Total General Fund 83,986,544 82,362,655 79,810,669 78,373,946 76,214,930 All other Governmental Funds: Nonspendable 1,276 3,052 348 6,713 (2) 49,319,200 Restricted 171,044,474 165,411,544 (3) 106,261,212 114,194,435 (2) 76,725,388 Committed 16,771,055 16,873,834 16,952,887 21,644,068 15,649,703 Assigned 23,250,337 24,172,531 24,429,824 14,144,969 Total all other Governmental Funds 211,067,142$ 182,288,430$ 147,386,978$ 160,275,040$ 155,839,260$ (1) 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. (2) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds. (3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. 177 Item 1I-196 City of Palm Desert Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Revenues:2022 2021 2020 2019 2018 Taxes 84,037,191$ 65,209,322$ 59,635,918$ 67,102,185$ 61,906,859$ Special assessments collected 3,407,107 3,381,657 3,481,924 3,948,157 3,445,246 Licenses & permits 2,622,695 1,504,694 1,268,965 1,416,829 1,326,049 Intergovernmental revenues 12,300,071 20,136,679 6,401,926 6,194,152 5,682,704 Rental income 8,129,025 7,320,419 7,071,648 6,899,916 6,675,632 Charges for services 6,175,500 4,889,634 5,272,577 5,223,285 2,894,821 Investment Earnings (2,402,801) 1,298,728 10,311,159 7,166,097 3,626,892 Fines & forfeitures 105,198 147,671 127,801 273,434 162,370 Miscellaneous 7,340,808 3,776,838 4,741,905 2,892,940 2,886,542 Contributions from other government 1,974,653 --- - Total Revenues 123,689,447 107,665,642 98,313,823 101,116,995 88,607,115 Expenditures: General government 24,079,563 23,478,543 21,468,512 24,269,546 19,281,102 Housing & redevelopment 8,232,440 8,839,559 7,090,941 7,504,119 8,522,801 Public safety 37,322,951 34,035,102 37,021,952 36,901,283 36,247,656 Parks, recreation & culture 7,439,687 6,073,015 5,902,166 6,497,391 6,467,713 Public works 17,667,805 18,533,419 21,994,806 8,728,354 12,183,852 Capital outlay 12,110,677 7,840,438 5,117,968 3,396,511 915,422 Debt service: Principal retirement 2,294,052 174,000 225,000 587,000 150,000 Interest and fiscal charges 157,462 184,529 210,292 244,050 260,971 Total Expenditures 109,304,637 99,158,605 99,031,637 88,128,254 84,029,517 Excess(deficiency of Revenues over(under) expenditures 14,384,810 8,507,037 (717,814) 12,988,741 4,577,598 Other financing sources (uses) Transfers in 11,555,402 10,186,341 10,702,762 5,319,448 6,613,352 Transfers out (11,864,512) (11,230,751) (11,377,965) (5,736,558) (6,313,352) Special Item (3)- --(6,000,000) - Extraordinary Gain / (Loss) (2)- --- - Leases 2,603,284 --- - Contribution to other government (1,001,688) --- - Total Other financing sources (uses)1,292,486 (1,044,410) (675,203) (6,417,110) 300,000 Net Change In Fund Balance 15,677,296$ 7,462,627$ (1,393,017)$ 6,571,631$ 4,877,598$ Revenues:2017 2016 2015 2014 2013 Taxes 59,466,545$ 56,735,503$ 52,571,369$ 50,464,511$ 50,768,200$ Special assessments collected 3,318,114 3,296,705 3,058,766 3,486,220 3,654,337 Licenses & permits 1,678,709 2,057,843 1,757,250 2,262,907 1,586,796 Intergovernmental revenues 7,249,515 15,429,238 18,981,304 7,380,744 5,097,892 Rental income 6,439,458 5,896,480 5,660,762 5,626,850 5,367,630 Charges for services 2,356,363 2,082,843 1,819,464 2,165,020 898,222 Investment Earnings 2,086,224 1,837,319 1,242,662 864,853 373,012 Fines & forfeitures 135,276 295,269 224,612 231,768 242,568 Miscellaneous 2,594,433 2,317,499 2,377,923 3,539,552 9,028,698 Contributions from other government 3,550,991 -9,168 10,749,218 - Contributions from property owners - 7,868 -420,590 - Total Revenues 88,875,628 89,956,567 87,703,280 87,192,233 77,017,355 Expenditures: General government 16,887,293 15,783,955 15,467,746 17,070,816 14,028,252 Housing & redevelopment 9,239,680 6,438,849 9,349,021 6,650,178 5,650,666 Public safety 34,674,418 33,750,347 31,819,214 29,139,735 28,299,876 Parks, recreation & culture 7,157,821 6,831,534 6,236,717 5,802,941 6,162,449 Public works 8,794,894 11,031,584 13,082,388 12,741,764 9,819,591 Contributions to property owners - 19,584,487 49 2,350,187 - Capital outlay 2,169,035 7,071,738 19,339,987 6,273,822 2,788,676 Debt service: Principal retirement 237,000 257,000 4,944,000 674,000 318,000 Interest and fiscal charges 277,814 296,336 240,219 242,495 255,239 Total Expenditures 79,437,955 101,045,830 100,479,341 80,945,938 67,322,749 Excess(deficiency of Revenues over(under) expenditures 9,437,673 (11,089,263) (12,776,061) 6,246,295 9,694,606 Other financing sources (uses) Transfers in 9,406,888 6,030,706 6,132,859 4,861,551 11,274,539 Transfers out (12,218,428) (6,075,206) (6,971,359) (5,424,051) (11,010,550) Special Item (3)- --- - Extraordinary Gain / (Loss) (2)- 72,138,669 -- - Sale of property - 225,000 2,163,222 911,001 - Total Other financing sources (uses)(2,811,540) 72,319,169 1,324,722 348,501 263,989 Net Change In Fund Balance 6,626,133$ 61,229,906$ (11,451,339)$ 6,594,796$ 9,958,595$ 0.7% 0.6%1.2%0.9% (1) 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 16 and 17. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency. Debt service as a percentage of noncapital expenditures Debt service as a percentage of noncapital expenditures 6.4% 0.5%1.0%0.5%0.4%2.5% 178 Item 1I-197 City of Palm Desert Graphs - Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (1) Combined Other is a combination of rental income, investment earnings, and charges for services. (2) Miscellaneous Other is a combination of fines and forfeitures, miscellaneous, contributions from other governments, and contributions from property owners. (3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement . (4) Public works is a combination of public works and contributions to property owners. Note: Graphs excludes Other financing sources and uses. $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015FY 2014FY 2013Total Revenues Combined other (1) Miscellaneous other (2) Intergovernmental revenues Licenses & permits Taxes & Special Assessments $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015FY 2014FY 2013Total Expenditures Parks, recreation & culture Debt Expenditures (3) Capital outlay Public works (4) Public safety Housing & Redevelopment General Government 179 Item 1I-198 City of Palm Desert Supplemental - Historical General Fund Revenues (including Transfers In) Last Ten Fiscal Years FY 2022 2021 2020 2019 2018 Revenue Type: Sales Tax 26,193,390$ 21,156,220$ 18,445,806$ 21,434,387$ 18,627,704$ Transient Occupancy Tax 22,098,939 10,760,455 11,681,583 17,250,843 17,019,034 Property Tax (3)11,703,419 11,193,276 11,101,584 11,074,207 10,777,998 Investment Earnings (1,867,595) 284,744 4,181,814 2,672,643 1,237,562 Transfer In 3,774,873 3,515,966 2,472,976 937,202 1,610,830 Franchises 3,334,555 3,066,989 3,025,984 3,078,855 3,097,521 State Subventions (1) (3)127,546 38,945 60,593 82,722 38,876 Building & Grading Permits 2,079,314 1,195,893 953,176 1,064,071 1,048,973 Reimbursements (4)530,474 1,229,484 1,375,770 1,468,351 1,388,654 Business License Tax 1,326,920 962,940 1,038,137 1,216,712 1,154,275 Timeshare Mitigation Fee 1,555,137 1,501,625 1,467,905 1,678,375 1,543,762 Plan Check Fees 616,576 480,881 468,180 619,763 691,096 Property Transfer Tax 1,197,951 1,027,833 566,468 727,978 664,822 Other Revenues (2)8,337,209 8,072,509 3,130,862 2,352,803 1,951,122 Total General Revenue 81,008,709$ 64,487,760$ 59,970,838$ 65,658,912$ 60,852,229$ FY 2017 2016 2015 2014 2013 Revenue Type: Sales Tax 18,505,449$ 18,994,779$ 17,565,134$ 17,258,958$ 16,764,808$ Transient Occupancy Tax 15,054,259 11,252,997 10,799,680 9,855,509 9,188,981 Property Tax (3)10,157,813 10,461,595 9,710,990 9,041,428 9,529,018 Investment Earnings 644,341 725,015 416,656 405,456 126,206 Transfer In 1,472,852 1,390,258 2,179,472 1,373,786 2,127,655 Franchises 3,146,702 3,095,873 3,102,431 3,007,215 2,892,805 State Subventions (1) (3)23,101 59,317 155,049 22,089 26,691 Building & Grading Permits 1,247,390 1,216,115 1,279,706 1,695,303 1,206,935 Reimbursements (4)1,407,811 1,589,511 1,604,707 1,809,323 1,868,804 Business License Tax 1,118,183 1,269,082 1,160,207 1,169,316 1,149,551 Timeshare Mitigation Fee 1,467,028 1,500,683 1,483,158 1,333,586 1,292,859 Plan Check Fees 431,115 592,818 505,370 662,893 500,698 Property Transfer Tax 690,975 491,060 558,965 530,556 520,393 Other Revenues (2)2,185,703 2,189,063 1,713,758 1,932,009 1,961,314 Total General Revenue 57,552,722$ 54,828,166$ 52,235,283$ 50,097,427$ 49,156,718$ (1) State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. (2) Other Revenues is any combination of miscellaneous penalties and interest, permits, grants, parking bails, fees, sales of maps and publications, vehicle and court fines, rental income, other revenues and Federal ARPA-Covid19. (3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes. (4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement is limited and applies to existing projects. 180 Item 1I-199 City of Palm Desert Supplemental Graph - Historical General Fund Revenues (Including Transfers In) Last Ten Fiscal Years (1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants, incomes, penalties, permits, sales and taxes. *State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013Combined Other (1) Interest Property Tax Transient Occupancy Tax Sales Tax 181 Item 1I-200 City of Palm Desert Supplemental - Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years FY 2022 2021 2020 2019 2018 Expenditure: Public Safety (1)20,288,195$ 19,326,751$ 21,415,334$ 20,975,032$ 21,088,867$ City Administration (2)12,620,102 12,990,562 11,429,468 12,521,081 11,460,325 Public Works Administration 2,265,476 1,886,402 2,457,045 2,149,715 2,333,897 Community Promotions 1,216,272 420,424 947,370 1,249,674 1,179,305 Street Maintenance 2,421,966 2,317,468 2,212,933 2,185,648 2,020,797 Building Safety 1,751,817 1,461,477 1,661,372 1,828,083 1,579,734 Street Resurfacing ----2,760 Public Works (4)1,338,520 1,165,671 1,151,447 1,250,969 1,133,007 Other Expenditures (3)18,572,299 17,384,092 18,860,388 20,826,188 13,669,533 Total Expenditures 60,474,647$ 56,952,847$ 60,135,357$ 62,986,390$ 54,468,225$ FY 2017 2016 2015 2014 2013 Expenditure: Public Safety (1)20,424,249$ 20,151,237$ 18,784,117$ 17,306,342$ 17,002,291$ City Administration (2)8,238,228 7,971,706 7,561,255 7,413,578 7,180,519 Public Works Administration 2,637,630 2,664,871 2,645,443 2,556,967 2,528,131 Community Promotions 1,062,611 791,565 749,631 618,138 575,119 Street Maintenance 2,418,451 2,709,328 2,631,590 2,806,168 2,353,655 Building Safety 1,849,442 1,888,290 1,847,798 1,783,918 1,517,937 Street Resurfacing 25,326 1,083,919 998,463 4,466 1,179,743 Public Works (4)970,877 1,004,989 1,067,837 1,018,435 1,505,018 Other Expenditures (3)18,302,019 14,010,275 14,512,426 14,430,399 14,762,237 Total Expenditures 55,928,833$ 52,276,180$ 50,798,560$ 47,938,411$ 48,604,650$ (1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include the cost for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard, public building maintenance, Portola Community center, storm water permit. 182 Item 1I-201 City of Palm Desert Supplemental Graph- Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years (1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include the cost for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard, public building maintenance, Portola Community center, storm water permit. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013Other Expenditures Comb (3) Public Works (4) City Administration (2) Public Safety (1) 183 Item 1I-202 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 184 Item 1I-203 City of Palm Desert Supplemental Historical General Revenue and Expenditures Per Capita Last Ten Fiscal Years FY 2022 2021 2020 2019 2018 Total General Revenue (2)77,168,851$ 60,971,794$ 57,497,862$ 64,721,710$ 59,241,399$ Population (1)50,889 53,892 52,986 53,625 52,769 General Revenue Per Capita 1,516$ 1,131$ 1,085$ 1,207$ 1,123$ FY 2017 2016 2015 2014 2013 Total General Revenue (2)56,079,870$ 53,437,908$ 50,055,811$ 48,723,641$ 47,029,063$ Population (1)50,740 49,335 51,053 50,417 49,949 General Revenue Per Capita 1,105$ 1,083$ 980$ 966$ 942$ FY 2022 2021 2020 2019 2018 Total General Expenditures (2)52,730,364$ 49,481,094$ 51,498,878$ 57,900,932$ 49,992,388$ Population (1)50,889 53,892 52,986 53,625 52,769 General Expenditures Per Capita 1,036$ 918$ 972$ 1,080$ 947$ FY 2017 2016 2015 2014 2013 Total General Expenditures (2)48,427,111$ 48,134,252$ 46,302,187$ 44,183,659$ 42,155,428$ Population (1)50,740 49,335 51,053 50,417 49,949 General Expenditures Per Capita 954$ 976$ 907$ 876$ 844$ (1) Population figures are as of January start of fiscal year. (2) Interfund Transfers In/Out, extraordinary loss (gain), and special item are not included in total. Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department 185 Item 1I-204 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) 2022 12,816,062,846$ 2,919,685,840$ 67,899,671$ 254,623,765$ *-$ 16,974,917,677$ 1.00000 16,768,080,495$ 2021 12,277,100,484 2,872,316,290 65,652,944 279,025,011 *- 16,413,235,941 1.00000 16,217,619,993 2020 11,781,804,552 2,771,257,791 63,343,035 300,879,417 *(45,437) 15,835,758,806 1.00000 15,636,583,844 2019 11,231,546,199 2,675,659,205 62,224,633 373,347,796 (326,679,322) 15,556,158,170 1.00000 15,045,226,485 2018 10,757,283,204 2,554,854,761 59,762,684 388,457,449 (313,754,093) 14,940,671,116 1.00000 14,445,331,683 2017 10,555,732,091 2,434,816,656 58,318,962 379,073,252 (306,174,550) 14,579,740,457 1.00000 14,095,158,994 2016 10,174,360,142 2,358,860,033 56,840,001 412,090,006 (312,620,004) 14,210,000,198 1.00000 13,743,682,041 2015 9,636,181,445 2,290,456,630 54,211,991 420,142,932 (298,165,952) 13,552,997,813 1.00000 13,086,962,905 2014 9,043,372,632 2,247,924,054 64,595,519 426,330,424 (297,139,386) 12,919,103,760 1.00000 12,453,921,285 2013 8,621,493,305 2,239,836,432 62,565,263 462,982,950 (300,313,265) 12,513,052,693 1.00000 12,064,845,537 (1) Estimated Actual Taxable Value = Net Taxable Value * Per HDL there was an artifact change in the Riverside County Assessors data that occurred primarily between 2018 and 2019, new vs old system differences, the few properties which are listed as having asssessed value and being non-taxable are either new to the roll or are newly non-taxable for 2019. Notes: Property Taxes in Riverside County are subject to the State of California's Proposition 13, Jarvis-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 at one hundred percent (100%) 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 Item 1I-205 City of Palm Desert Historical Net Assessed Taxable Values Citywide Graph - Assessed Valuation Growth Last Ten Fiscal Years Historical Major Additions Annexations FY Retail Centers FY Cook Street Area 88/89 Town Center Mall 83/84 Country Club #28 93/94 Desert Springs Marriott 86/87 Price Club/Costco 93/94 One Eleven Town Ctr 88/89 Palm Desert CC #29 94/95 Mervyn's Center 92/93 Palm Desert Greens 04/05 Desert Crossing 95/96 Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97 Remodel 111 Town Ctr (Best Buy)97/98 Gardens on El Paseo 98/99 Remodel Westfield Mall (Sears, Barnes & Noble) 04/05 Sears Automotive 04/05 Lowes Home Improvement 05/06 Walmart / Sam's Supercenters 05/06 Kohl's 07/08 Golfsmith Extreme 08/09 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 Total Wine & More 13/14 Tesla Motors 15/16 Source: Riverside County Assessor thru HDL Coren & Cone -0.49%3.22%5.08%5.02% 2.56%2.48%4.15%3.93%3.72%3.39% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Percent Increase in Assessed Valuation FY 2013 to FY 2022 $- $5,000 $10,000 $15,000 $20,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Value in Millions Net Assessed Valuation - Historical Comparison FY 2013 to FY 2022 187 Item 1I-206 City of Palm Desert Supplemental FY 2021 and 2020 Breakdown of Basic 1% Property Tax Rate Not in Redevelopment Project Area Taxing Agency FY 2022 Rate FY 2021 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 Cemetery 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 Item 1I-207 City of Palm Desert Property Tax Rates Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Fiscal Year Basic County-wide Levy Total Direct Tax Rate Desert Sands Unified School District Desert Community College Dist. Coachella Valley Water District Coachella Valley Water District I.D. 58 2022 1.00000 1.00000 0.07500 0.03950 0.11000 0.00000 2021 1.00000 1.00000 0.07390 0.03947 0.10000 0.00000 2020 1.00000 1.00000 0.07381 0.03983 0.10000 0.00000 2019 1.00000 1.00000 0.07418 0.03978 0.10000 0.00000 2018 1.00000 1.00000 0.07251 0.04030 0.10000 0.00000 2017 1.00000 1.00000 0.08599 0.02036 0.10000 0.00000 2016 1.00000 1.00000 0.10915 0.02087 0.10000 0.00000 2015 1.00000 1.00000 0.10984 0.02325 0.10000 0.00000 2014 1.00000 1.00000 0.10954 0.01995 0.10000 0.00000 2013 1.00000 1.00000 0.11156 0.01995 0.08000 0.00000 Notes:Proposition 13 limits the ability of the city to raise the property tax rate. Source: CalMuni Statistics Inc City Direct Overlapping Rates 189 Item 1I-208 City of Palm Desert Principal Property Taxpayers Current and Nine Years Ago 2022 2013 Taxpayer Taxable Assessed Value Percentage of Total City Tax Assessed Value Taxpayer Taxable Assessed Value Percentage of Total City Tax Assessed Value WEA Palm Desert 164,246,466$ 0.98% WEA Palm Desert LP $141,940,644 1.17% Donald White 155,480,305 0.92% DS Hotel 138,255,385 1.14% Gardens on El Paseo LLC 143,883,860 0.86% Desert Crossing II 90,540,504 7.50% WVC Rancho Mirage Inc 131,816,187 0.78%WVC Rancho Mirage Inc 83,371,563 0.69% PRU Desert Crossing LLC 105,325,793 0.63%Gardens on El Paseo LLC 80,874,024 0.67% CC Cimarron LP 69,995,248 0.42% Sinatra & Cook Project 53,798,432 0.44% Bighorn Golf Club 65,461,427 0.39% Elisabeth E. Stewart 53,196,833 0.44% First American Trust 58,809,914 0.35%Monarch Sevilla Venture 50,833,625 0.42% Walmart /Sams 56,318,841 0.33%Walmart Real Estate Business Trust 47,806,227 0.40% Segovia Operations 54,615,693 0.32% Segovia Operations 46,716,000 0.39% Total 1,005,953,734$ 5.98%Total 787,333,237$ 6.51% Note:The estimated property tax revenue stated above is based upon net taxable values, tax ratios and base year values that impact the revenue calculation. As a result, parcels with the same assessed value that are assigned to different tax rate areas may contribute dissimilar amounts of total revenue to the City and Redevelopment Agency. Source: HdL Coren & Cone thru Riverside County Assessor 17/18 and HdL Coren & Cone thru Riverside County Assessor 08/09 190 Item 1I-209 City of Palm Desert Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Taxes Levied Collections Ended for the Percentage in Subsequent Percentage June 30, Fiscal Year Amount of Levy Years (3)Amount (3)(4)of Levy 2013 5,398,524$ 4,913,780$ 91.02%484,744$ 5,398,524$ 100.00% 2014 5,623,740 5,048,787 89.78%574,953 5,623,740 100.00% 2015 5,911,501 5,523,658 93.44%387,843 5,911,501 100.00% 2016 6,212,993 5,943,252 95.66%269,741 6,212,993 100.00% 2017 6,731,899 6,022,566 89.46%182,652 6,205,218 92.18% 2018 6,729,952 6,553,297 97.38%173,642 6,726,940 99.96% 2019 6,867,405 6,640,656 96.70%207,894 6,848,550 99.73% 2020 7,202,939 6,502,032 90.27%211,602 6,713,634 93.21% 2021 7,332,966 6,391,062 87.16%256,431 6,647,493 90.65% 2022 8,203,212 7,930,195 96.67%273,017 8,203,212 100.00% (1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was received in the fiscal year 1993/94. (2) City of Palm Desert is a "No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973 which is when the City of Palm Desert incorporated and the Property Tax rates were zero. Based on current state law the County allocates 7% of the 1% assessed values within the City less the Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes. (3) Includes tax collections accrued as of June 30, 2022. (4) Includes amounts receivable for tax year 2021-2022 along with prior receivables due for prior tax years. Source: Riverside County Auditor Controller Office and City of Palm Desert Collected within the Fiscal Year of the Levy (1) (2) Total Collections to Date -191 Item 1I-210 City of Palm Desert Supplemental Top 25 Sales Tax Generators Graph - Historical Sales Tax Trends June 30, 2022 Top 25 Sales Tax Generators (1)Primary Economic Category AMER. BUILDERS & CONTRACTORS SUPP.BLDG. MATLS-WHSLE APPLE INC SPECIALTY WHOLESALE STORES ARCO-AM/PM MINI MARTS2 SERVICE STATIONS ASHLEY FURNITURE HOME FURNISHINGS BEST BUY STORES LP APPLIANCE / ELECTRONICS CARMAX AUTO SUPERSTORES AUTOMOBILE DEALER CONSOLIDATED ELECTRICAL DISTRIBUTORS SPECIALTY WHOLESALE STORES COSTCO WHOLESALE COMPANY WHOLESALE GENERAL STORES J.W. MARRIOTT DESERT SPRINGS ENTERTAINMENT LEEDS & SON JEWELERS DEPARTMENT STORES LOUIS VUITTON SPECIALTY WHOLESALE STORES LOWE'S HOME CENTERS BLDG. MATLS-WHSLE MACY'S DEPARTMENT STORES DEPARTMENT STORES MOBIL SERVICE STATIONS2 SERVICE STATIONS NORDSTROM RACK DEPARTMENT STORES PGA TOUR SUPERSTORE MISCELLANEOUS RETAIL STORES SAKS FIFTH AVENUE DEPARTMENT STORES SAM'S CLUB WHOLESALE GENERAL STORES SHELL SERVICE STATIONS2 SERVICE STATIONS SIMPLOT SPECIALTY WHOLESALE STORES SUPERIOR POOL PRODUCTS SPECIALTY WHOLESALE STORES TARGET STORES DEPARTMENT STORES TOMMY BAHAMA MISCELLANEOUS RETAIL STORES TOTAL WINE & MORE SUPERMARKETS WAL-MART SUPERCENTER DEPARTMENT STORES (1) Listed in Alphabetical Order (2) Carried over from prior year 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. *The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged. Source: SBOE Data, MuniServices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert 5.9%2.9%1.8% 8.1%-2.57%0.66% 15.1% -13.9% 14.7% 23.8% $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 $19.0 $21.0 $23.0 $25.0 $27.0 2013201420152016201720182019202020212022Millions Sales and Use Tax Trends FY 2013 - 2022 Amounts in Millions % = % Change from Prior Year $15.836 $16.764 $17.258 $17.564 $18.994 $18.505 $18.627 $21.434 $18.445 $21.156 -In Lieu * 192 Item 1I-211 City of Palm Desert Ratios of Outstanding Debt by Type Last Ten Fiscal Years Special Assessment/Total Percentage Total Debt Fiscal Local Obligation Capital Primary of Total Personal Per Year Bonds b,c,d Leases Government Income a,f Capita a,f 2013 8,920,000$ 1,751,083$ 10,671,083$ 0.44%223 2014 8,246,000 1,222,915 9,468,915 0.39%198 2015 3,302,000 e 1,435,046 4,737,046 0.19% 99 2016 3,045,000 929,860 3,974,860 0.16%83 2017 2,808,000 499,881 3,307,881 0.14%69 2018 2,658,000 1,493,330 4,151,330 0.17%87 2019 2,071,000 1,595,394 3,666,394 0.24%128 2020 1,846,000 1,145,011 2,991,011 0.23%105 2021 1,672,000 675,976 2,347,976 0.20%92 2022 1,294,000 - 1,294,000 0.04%25 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. a - Personal income, population and per capita information provided by California Department of Finance, and U.S Census Bureau and/or estimated by City Finance using 1% growth rate. b - Special Assessment Government Activities includes Highlands Undergrounding AD No# 04-01, as of June 30, 2022 the balance was $1.082M. c - Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million to fund the Energy Independence Loan Program. The actual Bond Issuance was for $2.015m. At June 30, 2022 the oustanding balance was $0.118M d - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection commenced during the fiscal year 2010-2011. At June 30, 2022 the outstanding balance was $0.094M. e - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009(Federally Taxable). On September 2, 2014 the bonds were called in full. As of June 30, 2017 there were no outstanding bonds. f - Personal income and Per Capita statistic includes governmental and business type activities combined. Governmental Activities Business Type Activities -193 Item 1I-212 City of Palm Desert Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years General Bonded Debt Outstanding Percentage of Actual Special Assessment Taxable Value of Per Bonds Property Capita Note: There are no General Obligation Bonds from FY 2013 to FY 2022 194 Item 1I-213 City of Palm Desert Supplemental Special Assessment Information June 30, 2022 District Name\Description 2003 01-01 Revenue Bonds Silver Spur Ranch Utility Undergrounding 5 Community Facilities District No. 2005-1 (University Park) Special Tax Bonds Series 2021A6 Community Facilities District No. 2021-1 (University Park) Special Tax Bonds Series 20217 2004-2 Section 29 Assessment District Limited Obligation Improvement Bonds Series 2021 Bond Issue Date 6/25/2003 7/13/2021 7/13/2021 6/23/2021 Final Maturity Date 9/2/2028 9/1/2036 9/1/2051 9/2/2037 Highest Interest Rate 5.375%4.000%4.000%5.100% Bond Issue Amount 2,340,000$ 5,165,000$15,200,000$ 16,400,000$ Matured Principal 1,270,000 - - - Called Principal 170,000 - - - Outstanding Bonds (4)900,000 5,165,000 15,200,000 16,400,000 Original Parcels 201 66 243 859 Active Parcels 193 55 243 776 Reserve Requirement 156,959 468,400 245,000 685,000 Reserve Balance 21/22 (1)161,019 468,408 874,214 1,416,863 Principal Due 22/23 (2)110,000 250,000 245,000 685,000 Principal Levied 21/22 (3)110,000 512,610 -- Interest Due 22/23 (2)45,206 216,805 627,163 727,940 Interest Levied 21/22 (3)50,719 262,610 -- 21/22 Delinquency Rate 0.29%0.81%0.00%0.08% Arbitrage Installment Computation Date: 90% Rebate Due 06/25/23 N/A N/A N/A Arbitrage Yield Rate 4.9129%N/A N/A N/A Continuing Disclosure Last Report Issued:1/4/2021 02/2023 02/2023 02/2023 (1) Reserve Balances are as of 6/30/22. (2) Outstanding bond balance at June 30, 2022. (3) Amount represents principal and interest collected during the FY 21/22 tax roll for Debt Service Payment due in FY 22/23. (4) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments. (5) The schedule presents the information for each individual local obligation bonded district. Assessment Districts 94-3 Merano and 01-01 Silver Spur were refunded and obligated to pay Debt Service to Series 2003 Assessment Revenue Bonds see note 16 for additional information. Source: Willdan Financial Annual Report (6) Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021A were used to refund Community Faciliites District No. 2005-1 (University Park) Special Tax Bonds Series 2006A (6) Community Facilities District No. 2021-1 (University Park) Special Tax Bonds 2021A were used to pay and defease a pro rata portion of outstanding Community Faciliites District No. 2005-1 (University Park) Special Tax Bonds Series 2006A -195 Item 1I-214 City of Palm Desert Direct and Overlapping Government Activities Debt June 30, 2022 2021/22 Assessed Valuation:16,755,218,136$ City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT:Total Debt 6/30/22 % Applicable (1) Debt 6/30/22 Desert Community College District 510,745,000$ 18.037% 92,123,076$ Desert Sands Unified School District 389,440,000 33.878% 131,934,483 Palm Springs Unified School District 451,708,639 4.419% 18,741,391 City of Palm Desert Limited Obligation Improvement Bonds 482,000 100.000%482,000 City of Palm Desert Community Facilities District No. 2005-1 5,165,000 100.000%5,165,000 City of Palm Desert Community Facilities District No. 2021-1 15,200,000 100.000% 15,200,000 City of Palm Desert 1915 Act Bonds 18,382,000 100.000% 18,382,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 282,027,950$ DIRECT AND OVERLAPPING GENERAL FUND DEBT: Riverside County General Fund Obligations 720,218,351$ 5.063% 36,464,655$ Riverside County Pensions Obligations 820,060,000 5.063% 41,519,638 Desert Sands Unified School District Certificates of Participation 19,505,000 33.878% 6,607,904 City of Palm Desert - 100.000%- TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 84,592,197$ OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)488,913,028$ 0.216-100%180,235,489$ TOTAL CITY DIRECT DEBT -$ TOTAL OVERLAPPING DEBT 546,855,636$ COMBINED TOTAL DEBT 546,855,636$ (2) (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Ratios to 2021-2022 Adjusted Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.68% Total Direct Debt ($0)0.00% Net Combined Total Debt 3.26% Ratios to Redevelopment Successor Agencies Incremental Valuation (11,028,173,245)$ Total Overlapping Tax Increment Debt 1.63% Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department 196 Item 1I-215 City of Palm Desert Legal Debt Margin Information Last Ten Fiscal Years Assessed Value 16,755,218,136$ Debt Limit (15% of Assessed Value) (1)2,513,282,720 Debt Applicable to Limit: General Obligation Bonds 1,082,000 pg 41 Note6 Financial statement Less: Amount set aside for repayment of general obligation debt - Total Debt Applicable to Limit - Legal debt margin 2,512,200,720$ 2013 2014 2015 2016 2017 Debt Limit 1,811,620,824$ 1,869,699,132$ 1,963,741,235$ 2,059,815,120$ 2,059,815,120$ Total Net debt applicable to limit 1,589,000 1,526,000 1,489,000 1,451,000 1,410,000 Legal debt margin 1,810,031,824$ 1,868,173,132$ 1,962,252,235$ 2,058,364,120$ 2,058,364,120$ Total net debt applicable to the limit as a percentage of debt limit 0.09%0.08%0.08%0.07%0.07% 2018 2019 2020 2021 2022 Debt Limit 2,114,442,742$ 2,167,115,649$ 2,256,723,736$ 2,345,639,686$ 2,432,559,897$ Total Net debt applicable to limit 1,368,000 1,310,000 1,178,000 1,130,000 1,082,000 Legal debt margin 2,113,074,742$ 2,165,805,649$ 2,255,545,736$ 2,344,509,686$ 2,431,477,897$ Total net debt applicable to the limit as a percentage of debt limit 0.06% 0.06% 0.05% 0.05% 0.04% (1) Section 43605 of the California Government Code. Source: California Municipal Statistic, Inc. San Francisco Legal Debt Margin Calculation for Fiscal Year 2022 FISCAL YEAR FISCAL YEAR 197 Item 1I-216 City of Palm Desert Pledged-Revenue Coverage Last Ten Fiscal Years Special Special Fiscal Assessment Assessment Year Collections a,c Principal Interest Coverage Collections Principal Interest Coverage 2013 9,524,786$ 3,786,896$ 5,255,558$ 1.0533 33,473,418$ e 16,315,000$ 17,158,418$ 1.000 2014 d 14,895,214 12,324,000 d 4,954,432 0.8621 38,444,447 e 23,650,000 14,794,447 1.000 2015 10,848,129 g 8,159,000 f 4,543,692 0.8540 32,294,255 e 18,295,000 13,999,255 1.000 2016 8,537,227 25,401,000 h 4,463,786 0.2859 34,810,024 e 18,055,000 16,755,024 1.000 2017 5,896,670 3,192,000 3,233,399 0.9177 37,535,680 e, i 16,255,000 e, i 21,280,680 1.000 2018 5,590,479 3,545,000 3,088,864 0.8427 23,428,001 e, i 14,235,000 e, i 9,193,001 1.000 2019 5,608,312 2,427,000 2,942,348 1.0445 25,986,960 e, i 17,210,000 e, i 8,776,960 1.000 2020 5,280,905 2,080,000 2,818,146 1.0781 27,833,500 e, i 19,475,000 e, i 8,358,500 1.000 2021 5,397,140 2,119,000 2,698,952 1.1202 25,215,056 e, i 17,330,000 e, i 7,885,056 1.000 2022 j, k 3,342,319 488,000 1,072,389 2.1420 25,462,250 e, i 18,115,000 e, i 7,347,250 1.000 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. a - 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. b - Tax increment bonds are backed by property tax increment based on calculation provided by the Riverside County tax assessor office. Additional information on tax increment can be found in the notes to the financial statements. c - 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 of the 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 princiapl payment was paid on September 2, 2010 d-A portion of the $50.51 (2007) and $17.915 (2008) million CFD 2005-1 (University Park) was prepaid in the amount of $6.269 Million. The prepaid $6.269M and $2.280 (2004-1) were called during on September 2, 2014. e-The total amount payable for the bonded obligations is disbursed by the State of California Department of Finance to the City of Palm Desert Successor Agency. The annual collection equal the annual obligations. f The City called the $5.225 Million Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable) in full on September 2, 2014 in the amount of $4.485 Million. The Energy Fund used the remaining $5.225 Bond Funds in the amount of $2.155 Million in addition to the $2.5 Million loan from the City General Fund as proceeds to call the bonds. g The City of Palm Desert loaned the Energy Fund $2.5 Million to call the $5.225 Million Energy Independence Program Lease Revenue Bonds, Series 2009 (Federally Taxable). The $2.5 Million is included as Special Assessment Collections. h- During the Fiscal Year 2015-16 the Communities Facilities District 2005-1 (University Park Series, Special Tax Bonds Series 2006A and Series 2007 defeased $20.885M of the original issued $67.715M. i- During the Fiscal Year 2016-17 the Successor Agency issued four series of bonds (1) the Tax Allocation Refunding Bonds, 2017 Series A ($52.39M), (ii) Taxable Tax Allocation Refunding Bonds, 2017 Series B ($140.130M), Tax allocation Refunding Bonds, 2017 Series H-A ($7.365M), and (iv) Taxable Tax Allocation Refunding Bonds, 2017 H-B ($45.815M). See Note 18 Tax Allocation Bonds. The 2017 Refunding Bonds refunded all of the tax allocation revenue bonds; with the exception of the Project Area No. 1 2007A Bonds, and the Project Area No. 2 2003 Bonds. Tax Increment b Debt ServiceDebt Service Special Assessment Bonds -198 Item 1I-217 City of Palm Desert Demographic and Economic Statistics Last Ten Calendar Years Calendar Percentage Per Capita City Riverside Percentage County Year City Increase Personal Personal Unemployment County Increase Unemployment End Population (Decrease)Income CY a Income CY Rate b Population (Decrease) Rate b 2022 50,889 -5.57%3,004,769,944$ 59,046$ 4.10%2,435,525 -0.77%4.00% 2021 53,892 1.71%2,960,364,477 54,931 7.40%2,454,453 0.50%8.00% 2020 52,986 -1.19%2,916,615,248 55,045 17.20%2,442,304 0.09% 14.70% 2019 53,625 1.62%2,873,512,560 53,585 4.90%2,440,124 1.00%4.40% 2018 52,769 4.00%2,831,046,858 53,650 5.00%2,415,955 1.31%4.80% 2017 50,740 2.85%2,789,208,727 54,971 4.00%2,384,783 1.57%5.70% 2016 49,335 -3.37%2,747,988,894 55,701 4.20%2,347,828 1.71%6.70% 2015 51,053 1.26% 2,707,378,221 53,031 4.60%2,308,441 1.25%6.50% 2014 50,417 0.94% 2,667,367,705 52,906 4.90%2,279,967 1.10%8.40% 2013 49,949 0.97% 2,627,948,478 52,613 6.00%2,255,059 1.23% 10.20% a - 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. b - Unemployment rate for fiscal year 21/22 is based on annual information from State of California Employment Development Department Labor Market Information Division (not seasonally adjusted) Sources: State Department of Finance, State Employment Development Department 199 Item 1I-218 City of Palm Desert Principal Employers Current and Nine Years Ago Employer Employees Rank Percentage of Total City Employment Employer Employees Rank Percentage of Total City Employment JW Marriot-Desert Springs Resort & DS Villas 2,304 1 8.86% JW Marriot-Desert Springs Resort & DS Villas 2,304 1 8.41% Universal Protection Services 1,500 2 5.77% Universal Protection Services 1,500 2 5.47% Securitas-Security Service USA 700 3 2.69% Securitas-Security Service USA 700 3 2.55% Avida Caregivers 550 4 2.12% Sunshine Landscape 500 4 1.82% Organization of Legal Pro's 501 5 1.93% Macy's 301 5 1.10% Sunshine Landscape 500 6 1.92% Bighorn Golf Club 250 6 0.91% Costco Wholesale 250 7 0.96% Costco 250 7 0.91% Bighorn Golf Club 250 8 0.96% Desert ARC 250 8 0.91% Yellow Cab of Desert 160 9 0.62% Westin-Desert Willow 248 9 0.91% Whole Foods Market 150 10 0.58% Time Warner Cable 236 10 0.86% Sources: CA Employment Development Department - Federal and State Government not included * Data based on prior years numbers, at the time of preparation data was not available. 2022*2013 200 Item 1I-219 City of Palm Desert Supplemental Miscellaneous Statistics June 30, 2022 City/ Municipal Government Form of Government:Council - City Manager/Charter City Date of Incorporation:November 26, 1973 Number of Employees:108 Full-time Employees Size of City:26.96 Square Miles Geographic Location:Located 117 miles east of Los Angeles and 515 miles south of San Francisco. Streets:170 paved street miles Number of Business Licenses:6,210 active business licenses Number of Hotels & Rooms: 19 hotels, 2,822 rooms CONTRACT SERVICES: Police Department Contract with Riverside County Sheriff - 61 sworn positions plus 19 support staff (rounded to nearest FTE) Fire Department Contract with Riverside County/State Fire 49 positions plus 12 Fire Prevention staff Animal Control Riverside County Animal Services Water & Sewer Coachella Valley Water District Trash Collection Burrtec - Waste Management Electric Southern California Edison Gas Southern California Gas Telephone Verizon Airport Palm Springs International Airport Public Education Elementary School (grades K - 5) 4 Middle School (grades 6 - 8)1 High School (grades 9 - 12)1 Community College - College of the Desert 1 CSUSB - Palm Desert Campus 1 UCR - Palm Desert Graduate Center 1 Insurance Coverage General Liability Coverage Calif. Joint Powers Insurance Authority $50 Million/Event (Excludes Earthquake & Flood)Excess Coverage: from $2 Million up to $50 Million limit Special Events Calif. Joint Powers Insurance Authority $1 Million Worker's Compensation Calif. Joint Powers Insurance $10 Million Property Insurance Calif. Joint Powers Insurance Based on Prop. Value Health Insurance Medical California PERS; choice of PPO, HMO, Kaiser, Blue Shield Dental Delta Dental Vision Vision Service Plan Disability Insurance Disability - The Hartford Insurance Company Life The Hartford Insurance Company Retirement California PERS - Public Employees' Retirement System Source: City of Palm Desert 201 Item 1I-220 City of Palm Desert Full-time Equivalent City Government Employees by Function / Program Last Ten Fiscal Years Function / Program 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 a General Government City 35 33 33 31 31 32 32 34 34 33 Economic Dev & Housing b 12 11 11 11 10 11 13 13 13 12 Public Safety 28 30 30 28 29 29 28 26 25 24 Police & Fire (1)141 140 174 172 179 170 163 169 173 157 Public Works 33 38 38 39 39 39 40 40 40 38 Totals 249 252 286 281 288 281 276 282 285 264 (1) The City operates as a "contract city" utilizing, primarily, agreements with other governmental entities, private firms 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. a - As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013. b - 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. Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriff's Department 202 Item 1I-221 City of Palm Desert Operating Indicators by Function / Program Last Ten Fiscal Years Function / Program 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 General Government Business License Inspections *******24 33 196 Contracted Services - Burrtec Waste (1) Refuse Collected (tons)61,932 60,226 58,096 59,154 56,346 54,301 52,772 54,865 57,935 52,131 Recyclables Collected 22,043 20,964 21,772 27,391 28,119 26,651 23,818 24,611 26,424 24,862 Public Safety Physical Arrests 1,198 1,066 621 758 1,654 1,620 1,284 1,946 1,348 986 Parking Violations 769 780 899 375 575 587 712 794 386 198 Traffic Violations 1,398 2,070 1,392 3,525 7,012 6,939 6,223 5,525 5,284 5,080 Emergency Responses-Fire Department 10,557 9,701 15,088 10,009 9,984 9,617 9,285 8,628 8,235 7,907 Fires Extinguished 138 104 147 93 90 68 103 88 106 104 Fire Inspections ##3,372 5,397 3,378 1,274 2,118 2,989 2,552 3,048 Building Permits Issued 5,211 3,651 3,118 3,912 3,644 4,734 4,704 4,909 5,552 4,548 Building Inspections Conducted 16,802 13,451 13,439 13,965 18,601 23,542 24,756 24,057 24,830 19,107 Public Works Street Resurfacing (miles)(3)2.25 1.83 16.9 31.6 7.3 25.8 2.9 8 34 23 Parks, recreation & culture Athletic Field Permits Issued 2,255 2,262 643 2,990 2,934 3,197 2,997 4,430 6,548 2,635 Amphitheater / Pavilions Permits Issued 350 244 6 119 121 106 104 283 247 128 Community Center Admissions 32,326 15,577 9,746 52,203 60,769 51,694 64,493 53,426 50,204 53,062 Aquatic Center Admissions (2)31,320 38,249 32,905 52,102 53,739 58,023 60,359 64,103 43,545 48,663 (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. (*) Per Building & Safety Department business license inspections are no longer done. (#) City discontinued the City Fire Marshal services and contracted with the County for State mandated inspections only. Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste and The YMCA. 203 Item 1I-222 City of Palm Desert Capital Asset Statistics by Function / Program Last Ten Fiscal Years Function / Program 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 General Government Contracted Services (1) Collection trucks 35 29 25 25 24 24 35 30 30 36 Public Safety - Police & Fire Police Stations 1111111111 Police Sub Stations 1111111111 Patrol Units-Cars 26 26 27 29 30 29 29 29 26 28 Patrol Units-Motorcycles 7 7 7 6 9 9 11 10 10 10 Fire Stations 3333333333 Fire Trucks 1 plus 1 reserve 5 plus 2 reserve 4 plus 1 reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Rsrvd 4 plus 1 Rsrvd 4 plus 2 Rsrvd Ambulance 4 plus 2 reserve 4 plus 3 reserve 4 plus 3 reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Rsrvd 4 plus 3 Rsrvd 4 plus 1 Rsrvd Fire Prevention Pick-ups 0-2.54333333 Public Works Streets (miles)170 170 170 170 170 170 170 170 170 170 Traffic Signals 99 99 99 99 99 99 98 98 98 98 Parks, recreation & culture Acreage 201 201 201 201 201 201 201 201 201 201 Total Parks 13 13 13 13 13 13 13 13 13 13 Playgrounds 16 16 16 16 16 16 16 16 16 16 Baseball/softball diamonds 8888888888 Soccer/football fields 9999999999 Basketball Courts 11 11 11 11 11 11 11 11 11 11 Tennis Courts 10 10 10 10 10 10 10 10 10 10 Volleyball Courts 8888888888 Community Centers 2222222222 Skateboard Parks 2222222222 Aquatic Center 1111111111 Commercial Office Space (Parkview Office Complex) Leasable Space (square feet)50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 Occupancy Rate 84%84%91%91%82%84%90%90%86%88% Number of Tenants by Type Government (State, local regional)7777779898 Non-Profit 4444334344 Private 3333231145 Square Footage lease by tenant Government (State, local regional)31,607 31,607 31,607 31,607 30,907 32,287 33,127 30,907 31,921 31,321 Non-Profit 7,339 7,339 7,341 6,621 4,061 4,061 3,561 6,269 3,294 4,467 Private 3,083 3,083 6,693 7,468 6,218 6,938 8,688 8,025 8,025 8,513 Vacant 8,293 8,293 4,681 4,626 9,136 8,416 4,946 5,121 7,082 6,021 Municipal Golf Course (Desert Willow Golf Resort) Courses - Fire Cliff and Mountain View 2222222222 Holes 36 36 36 36 36 36 36 36 36 36 Golf Carts 172 172 172 172 172 172 172 172 172 172 Clubhouse square footage 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 Rounds per Course Fire Cliff 52,415 47,695 38,057 48,646 46,620 39,424 39,366 44,845 45,841 45,645 Mountain View 47,949 49,005 35,332 43,523 43,712 39,931 40,910 42,407 43,160 38,669 Total Annual Rounds 100,364 96,700 73,389 92,169 90,332 79,355 80,276 87,252 89,001 84,314 (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. Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste 204 Item 1I-223 Note: This section is not required by GASB No. 44, however, City believes that statistical information is beneficial to the reader. On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see note 19 and note 20. City of Palm Desert, California Supplemental Redevelopment Agency Statistical Section 205 Item 1I-224 ·|}111 ·|}111 ·|}74 %&'(10 %&'(10 %&'(10 ·|}111 ·|}74 ·|}111 ·|} %&'(10 %&'(10 %&'(10 GERALD FORD DR T AMARI SK ROW DROASIS CLUB DRELDORADO DRPITAHAYA ST COOK STPORTOLA AVETOWN CENTERWAYSHA D OW MOUNTAI N DR 42ND AVE FRANK SINATRA DR FRED WARING DR WASHINGTON STWARNER TRLMAGNESIA FALLS DR HOVLEY LN W COOK STFRED WARING DR EL PASEO HAYSTACK RD HOVLEY LN E PORTOLA AVEPORTOLA AVEV ARNER RD FRED WARING DR ELDORADODRMILES AVE FRANK SINATRA DR GE RA LD FOR D DR G E RA L D F OR D DRCOOK STCOUNTRY CLUB DR PORTOLA AVEV ARNER RD FRED WARING DRPORTOLA AVECOOK STMONTEREY AVEHOVLEY LN E VARNER RD ELDORADO DRFRANK SINATRA DR COOK STHOVLEY LN E HOVLEY LN E MERLE DRPORTOLA AVEMONTEREY AVEDINAH SHORE DR PAIN TERSPATHECLECTICSTMONTEREY AVECORPORATEWAYCALIFORNIA AVE MESA VIEW DR AVENUE OF THE STATES TENNESSEEAVEKANSASSTRUTLEDGE WAY SAN PASCUAL AVEPARK VIEW DR FAIRWAY DRSAN PABLO AVEDE ANZA WAY EDGEHILL DRALESSANDRO DR DEEP CANYON RDCAHUILLA WAY SAN GORGONIO WAY CALLE DELOS CAMPESINOSSAN LUISREY AVECOUNTRY CLUB DR COUNTRY CLUB DR HARRIS LN HWY 74HW Y 1 1 1 HWY 111BOB HOPE DRBOB HOPE DRWASHINGTON STProject Area No. 2 Project Area No. 3 ·|}111 ·|}111 ·|}74 %&'(10 %&'(10 %&'(10 ·|}111 ·|}74 ·|}111 ·|} %&'(10 %&'(10 %&'(10 GERALD FORD DR T AMARI SK ROW DROASIS CLUB DRELDORADO DRPITAHAYA ST COOK STPORTOLA AVETOWN CENTERWAYSHA D OW MOUNTAI N DR 42ND AVE FRANK SINATRA DR FRED WARING DR WASHINGTON STWARNER TRLMAGNESIA FALLS DR HOVLEY LN W COOK STFRED WARING DR EL PASEO HAYSTACK RD HOVLEY LN E PORTOLA AVEPORTOLA AVEV ARNER RD FRED WARING DR ELDORADODRMILES AVE FRANK SINATRA DR GE RA LD FOR D DR G E RA L D F OR D DRCOOK STCOUNTRY CLUB DR PORTOLA AVEV ARNER RD FRED WARING DRPORTOLA AVECOOK STMONTEREY AVEHOVLEY LN E VARNER RD ELDORADO DRFRANK SINATRA DR COOK STHOVLEY LN E HOVLEY LN E MERLE DRPORTOLA AVEMONTEREY AVEDINAH SHORE DR PAIN TERSPATHECLECTICSTMONTEREY AVECORPORATEWAYCALIFORNIA AVE MESA VIEW DR AVENUE OF THE STATES TENNESSEEAVEKANSASSTRUTLEDGE WAY SAN PASCUAL AVEPARK VIEW DR FAIRWAY DRSAN PABLO AVEDE ANZA WAY EDGEHILL DRALESSANDRO DR DEEP CANYON RDCAHUILLA WAY SAN GORGONIO WAY CALLE DELOS CAMPESINOSSAN LUISREY AVECOUNTRY CLUB DR COUNTRY CLUB DR HARRIS LN HWY 74HW Y 1 1 1 HWY 111BOB HOPE DRBOB HOPE DRWASHINGTON STProject Area No. 2 Project Area No. 3 Date: 1/2010 Redevelopment Agency Project Areas IArea 1 - Original (1975) Area 1 - Added Territory (1982) Area 2 Area 3 Area 4 City Boundary206 Item 1I-225 City of Palm Desert Redevelopment Agency Tax Allocation Bond Issue Information June 30, 2022 DESCRIPTION $15,745,000 Tax Allocation Revenue Bond Years 30 Bond Issue Date 03/26/03 Final Maturity Date 08/01/33 Highest Interest Rate 5.00% Bond Issue Amount 15,745,000$ Outstanding Bond Amount 15,745,000 Call Premium 1 - 2.00% Bond Insurer MBIA Reserve Requirement (1)1,574,500 Reserve Balance (1)(1) Principal Due 22/23 875,000 Interest Due 22/23 769,006 Arbritage Yield Rate 4.9502% Arbritage Five Year Due Date:03/26/23 DESCRIPTION Non-Housing Tax Allocation Bond (Exempt)1 Non-Housing Tax Allocation Bond (Taxable)2 Years 13 24 Bond Issue Date 01/31/17 01/31/17 Final Maturity Date 10/01/30 10/01/41 Highest Interest Rate 5.000%4.250% Bond Issue Amount 52,390,000$ 140,130,000$ Outstanding Bond Amount 36,405,000 96,345,000 Call Premium 0.00%0.00% Bond Insurer BAM BAM Reserve Requirement (1)5,786,159 8,674,758 Reserve Balance (1)(1) (1) Principal Due 22/23 715,000 11,675,000 Interest Due 22/23 1,820,250 3,597,525 Arbritage Yield Rate 3.659%3.659% Arbritage Five Year Due Date:01/31/22 01/31/22 DESCRIPTION Housing Tax Allocation Bond (Exempt)3 Housing Tax Allocation Bond (Taxable)4 Years 14 6 Bond Issue Date 01/31/17 01/31/17 Final Maturity Date 10/01/31 10/01/23 Highest Interest Rate 5.000%3.000% Bond Issue Amount 7,365,000$ 45,815,000$ Outstanding Bond Amount 5,025,000 6,195,000 Call Premium 0.00%0.00% Bond Insurer BAM BAM Reserve Requirement (1)687,519 4,581,500 Reserve Balance (1)(1) (1) Principal Due 22/23 455,000 6,015,000 Interest Due 22/23 227,519 351,263 Arbritage Yield Rate 2.907%2.907% Arbritage Five Year Due Date:01/31/22 01/31/22 (1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero. 1 Refunded PA 1-4 tax exempt portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M) 2 Refunded PA 1-4 taxable portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M) 3 Refunded Housing tax exempt portion of bonds (12.1M and $86.155M) 4 Refunded Housing taxable portion of bonds (12.1M and $86.155M) Source: City of Palm Desert and Successor Agency to the Palm Desert Redevelopment Agency 207 Item 1I-226 City of Palm Desert Historical Tax Increment/ Redevelopment Property Tax Trust Fund Summary All Project Areas Project Area No. 1 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Gross Tax Increment 48,767,884 51,298,203 53,437,088 56,610,029 58,222,677 59,842,517 62,844,689 64,495,840 68,597,410 70,656,513 Less: Housing Set-Aside*9,753,577 10,259,641 10,687,418 11,322,006 11,644,535 11,968,503 12,568,938 12,899,168 13,719,482 14,131,303 SB 2557 714,717 673,261 686,944 629,449 725,403 662,238 594,754 570,820 858,150 1,503,453 Gross Pass-Throughs 18,642,892 20,111,377 21,241,903 22,961,604 25,052,727 22,919,420 25,953,291 26,949,281 28,676,151 29,944,830 Net Tax Increment 19,656,698 20,253,925 20,820,823 21,696,970 20,800,012 24,292,356 23,727,706 24,076,571 25,343,627 25,076,927 RPTTF Amount Deposited 26,848,203 25,090,381 26,530,801 24,696,424 25,131,004 19,923,194 20,331,658 21,672,933 21,069,258 16,915,008 Project Area No. 2 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Gross Tax Increment 13,700,701 13,556,184 15,232,096 16,232,329 16,302,895 16,916,067 17,466,255 18,503,456 19,553,601 19,897,195 Less: Housing Set-Aside*2,740,140 2,711,237 3,046,419 3,246,466 3,260,579 3,383,213 3,493,251 3,700,691 3,910,720 3,979,439 SB 2557 200,429 179,214 192,900 180,457 202,348 187,481 165,500 172,557 243,191 188,413 Gross Pass-Throughs 4,983,714 4,967,602 5,665,961 6,078,194 6,103,481 6,372,798 6,609,645 7,125,321 7,569,060 7,672,621 Net Tax Increment 5,776,418 5,698,132 6,326,816 6,727,213 6,736,487 6,972,575 7,146,063 7,504,887 7,830,630 8,056,722 RPTTF Amount Deposited 7,568,241 7,017,531 5,441,721 5,547,427 5,887,814 5,516,674 5,629,776 6,106,095 6,005,764 4,763,343 Project Area No. 3 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Gross Tax Increment 3,575,242 3,760,421 3,754,999 4,039,902 4,360,574 4,364,606 4,487,719 4,653,982 4,947,578 5,015,404 Less: Housing Set-Aside*715,048 752,084 751,000 807,980 872,115 872,921 897,544 930,796 989,516 1,003,081 SB 2557 52,858 49,871 48,901 45,175 52,745 8,947 42,853 41,139 62,062 47,593 Gross Pass-Throughs 1,277,864 1,377,700 1,371,786 1,510,219 1,656,158 1,662,390 1,730,228 1,813,552 1,937,004 1,985,858 Net Tax Increment 1,529,472 1,580,766 1,583,312 1,676,528 1,779,556 1,820,347 1,817,094 1,868,494 1,958,996 1,978,872 RPTTF Amount Deposited 1,491,532 1,357,678 1,237,930 1,290,623 1,295,156 1,422,709 1,451,877 1,563,906 1,519,617 1,200,676 Project Area No. 4 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 Gross Tax Increment 11,153,422 11,941,800 13,057,891 13,889,272 14,287,533 14,685,301 15,251,204 15,776,294 16,815,458 17,592,461 Less: Housing Set-Aside*2,230,684 2,388,360 2,611,578 2,777,854 2,857,507 2,937,060 3,050,241 3,155,259 3,363,092 3,518,492 SB 2557 164,046 156,818 166,634 154,976 178,812 162,715 145,017 139,433 210,710 166,282 Gross Pass-Throughs 7,530,089 7,901,830 8,381,422 8,866,804 9,433,947 9,943,062 10,454,725 8,434,713 11,405,344 12,185,263 Net Tax Increment 1,228,603 1,494,792 1,898,257 2,089,637 1,817,267 1,642,464 1,601,222 4,046,890 1,836,312 1,722,424 RPTTF Amount Deposited 4,064,105 3,675,440 3,071,966 2,443,507 2,610,660 4,834,978 4,934,105 5,301,405 5,164,761 4,211,595 *For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution. 208 Item 1I-227 7KLVSDJHLQWHQWLRQDOO\OHIWEODQN 209 Item 1I-228 210 Item 1I-229 1611 E. Fourth Street, Suite 200 Santa Ana, CA 92701 (714) 569-1000 203 N. Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833  (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com February 22, 2023 To the Honorable Mayor and Members of the City Council City of Palm Desert, California We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Palm Desert, California (the City) for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards,and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 22, 2023. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Significant Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. As described in Note 1 to the financial statements, in the fiscal year ended June 30, 2023, the City adopted new accounting guidance, GASB Statement No. 87, Leases. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Governmental and Enterprise statements. All significant transactions have been recognized in the financial statements in the proper period. 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 estimates of its net pension liability and net other post-employment benefits (OPEB) liability are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability and net OPEB liability in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Significant or Unusual Transactions Management is responsible for the policies and practices used to account for significant or unusual transactions. No significant unusual transactions have occurred during fiscal year 2021-2022. Item 1I-230 To the Honorable Mayor and Members of the City Council City of Palm Desert, California Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We are pleased to report that no such misstatements were identified during the course of our audit. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated February 22, 2023. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the significant events or transactions that occurred during the year, business conditions affecting the City and business plans and strategies that may affect the risks of material misstatements, the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the management’s discussion and analysis, the budgetary comparison schedules for the general fund and major special revenues funds, and the required pension and other post-employment benefits schedules, as listed in the Annual Comprehensive Financial Report’s table of contents, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining statements and individual nonmajor fund statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of Item 1I-231 To the Honorable Mayor and Members of the City Council City of Palm Desert, California preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory or statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2021-2022 audit: GASB Statement No. 87, Leases. GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. The following GASB pronouncements are effective in the following fiscal years’ audits and should be reviewed for proper implementation by management: Fiscal year 2023 GASB Statement No. 91, Conduit Debt Obligations. GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangement. GASB Statement No. 96, Subscription-Based Information Technology Arrangements. Fiscal year 2024 GASB Statement No. 99, Omnibus 2022. GASB Statement No. 100, Accounting Changes and Error Corrections. Fiscal year 2025 GASB Statement No. 101, Compensated Absences. 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. Very truly yours, Brea, California Item 1I-232 1611 E. Fourth Street, Suite 200 Santa Ana, CA 92701 (714) 569-1000 203 N. Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833  (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Palm Desert, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Palm Desert, California (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated February 22, 2023. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on 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 financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Item 1I-233 To the Honorable Mayor and Members of the City Council City of Palm Desert, California Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Brea, California February 22, 2023 Item 1I-234 A. 2020‐2021 APPROPRIATIONS LIMIT:144,763,120$         B. 2021‐2022 CHANGE IN PER CAPITA PERSONAL INCOME 0.67% C.2021‐2022 CHANGE IN POPULATION:0.57% D. RATIO OF CHANGE (1.0067 X 1.0573):X  1.06438391 E. 2021‐2022 APPROPRIATIONS LIMIT:154,083,536$         (144,763,120 X 1.06438391) CITY OF PALM DESERT 2021‐2022 APPROPRIATIONS LIMIT CALCULATION Item 1I-235 [This page has intentionally been left blank.] Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Mitchell Arbaugh, Accountant REQUEST: RECEIVE AND FILE THE INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2022 RECOMMENDATION: Receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2022. BACKGROUND/ANALYSIS: The Measure A fund is a special revenue fund that was created to keep track of funds received by the Riverside County Transportation Commission. In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund a variety of highway improvements, local streets and roads maintenance, commuter assistance and specialized transit projects. Conrad LLP performed the procedures which were agreed to by the Riverside County Transportation Commission, Riverside, California (RCTC) solely to assist RCTC with respect to an evaluation of the City of Palm Desert’s Measure A Transportation Fund and degree of the City’s compliance with RCTC requirements for the year ended June 30, 2022. Staff requests that the Council receive and file the Independent Accountants’ Report on Agreed- Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2022. Strategic Plan: Not Applicable Commission Recommendation: The Finance Committee will receive the Independent Accountants’ Report at their next scheduled meeting on March 28, 2023. FINANCIAL IMPACT: There is no fiscal impact associated with this action. REVIEWED BY: Department Director: Veronica Chavez Finance Director: Veronica Chavez Item 1J-1 City of Palm Desert Approval of Report on Procedures for Measure A Fund for Fiscal Year ended June 30, 2022 Page 2 of 2 Assistant City Manager: Chris Escobedo City Manager: Todd Hileman ATTACHMENTS: 1.Independent Accountants’ Report on Agreed-Upon Procedures Item 1J-2 Item 1J-3 Item 1J-4 Item 1J-5 Item 1J-6 Item 1J-7 Item 1J-8 Item 1J-9 Item 1J-10 Item 1J-11 Item 1J-12 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Christina Canales, Land Development Technician REQUEST: ACCEPT PUBLIC IMPROVEMENTS, RELEASE THE FAITHFUL PERFORMANCE, THE LABOR AND MATERIALS, THE GRADING BONDS, AND ACCEPT A MAINTENANCE BOND FOR EXTRA SPACE STORAGE RECOMMENDATION: 1.Accept public improvements. 2.Release the Faithful Performance Bond in the amount of $8,263.50 and the Labor and Materials Bond in the amount of $16,527.00. 3.Release the Grading Bond in the amount of $6,821.55. 4.Accept the Maintenance Bond in the amount of $1,652.70. BACKGROUND/ANALYSIS: On September 17, 2019, Planning Commission approved by Resolution No. 2762, a request by RPC Palm Desert Storage, LLC (2101 Cedar Springs Road, Suite 1600, Dallas, TX 75201) to construct two single-story storage buildings totaling 35,830 square feet located at 74789 Joni Drive. Bonds for public improvements in the amount of $8,263.50 for Faithful Performance, $16,527.00 for Labor and Materials, and $6,821.55 for grading were submitted at the time of grading permit issuance. On November 14, 2022, the Public Works Department verified the completion of all public improvements for this project. Additionally, the Engineer of Record submitted a Letter of Certification verifying the completion of improvements. Public improvements for this project can be found in the approved grading plan G-1494 and the approved Engineer’s Estimate. Improvements completed include street improvements, storm drain improvements, sidewalks, and driveway approaches. A Record Drawing of the improvements is on file in the Development Services Department. Pursuant to the Palm Desert Municipal Code Section 26.28.140, the City of Palm Desert requires the acceptance of a 10 percent (10%) Maintenance Bond for a one-year period after the completion of improvements. The developer has submitted a bond in the amount of $1,652.70. Staff recommends that the City Council authorize the acceptance of public improvements, the release of the Faithful Performance, Labor and Material Bonds, Grading Bonds, and accept the Maintenance Bond deposit of $1,652.70. Item 1K-1 City of Palm Desert Accept Public Improvements, Release the Faithful Performance, Labor and Materials, Grading Bonds, and Accept a Maintenance Bond for Extra Space Storage Page 2 of 2 Strategic Plan: This action has no impact on the Strategic Plan. FINANCIAL IMPACT: With the approval of this action, the City of Palm Desert will be responsible for the maintenance of constructed sidewalk. Costs for maintenance of the sidewalk are estimated to be $1,028 per year. REVIEWED BY: Department Director: Richard D. Cannone, AICP Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman ATTACHMENTS: 1.Vicinity Map 2.Faithful Performance and Labor and Material Bonds 3.Grading Bond 4.Receipt for Maintenance Bond Item 1K-2 LESLIE AVENUE MERLE DRIVE CHRISTIANSTREETCLIFFORD STREETCLAUDIA STREETCOOK STREETALLEYJONI DRIVE Legend Parcels (02/2023) Streets 0 0.03 0.050.01 Miles ± Item 1K-3 Item 1K-4 Item 1K-5 Item 1K-6 Item 1K-7 Item 1K-8 Item 1K-9 Item 1K-10 Item 1K-11 Item 1K-12 Item 1K-13 Item 1K-14 Item 1K-15 Item 1K-16 Item 1K-17 Item 1K-18 DESCRIPTION ACCOUNT STATUS PAID PermitTRAK PG20-0011 Address: APN: 624071029 MAINTENANCE BOND GL-6100000-2280100 ORIGINAL $1,652.70 TOTAL FEES PAID BY RECEIPT: R53149 $1,652.70 Printed: Tuesday, February 21, 2023 6:07 PM Date Paid: Monday, January 23, 2023 Paid By: RPC Packard LLC Pay Method: CHECK 0101538 1 of 1 Cashier: cc Cash Register Receipt City of Palm Desert Receipt Number R53149 Item 1K-19 [This page has intentionally been left blank.] CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: RESOLUTION OF OPPOSITION TO INITIATIVE NO. 21-0042A1, A NOVEMBER 2024 BALLOT MEASURE THAT JEOPARDIZES CITIES’ ABILITY TO PROVIDE ESSENTIAL SERVICES AND INFRASTRUCTURE RECOMMENDATION: Adopt a Resolution of opposition to Initiative No. 21-0042A1, a November 2024 statewide ballot measure that jeopardizes cities’ ability to provide essential services and infrastructure. BACKGROUND/ANALYSIS: In 2018, the California Business Roundtable and American Beverage Association circulated an initiative for the November 2018 ballot. The proposed initiative would have drastically limited local revenue authority. The League of California Cities and its coalition opposed this initiative and the City Council adopted Resolution No. 2018-23 opposing the initiative (Attachment 1). Ultimately, the proponents withdrew the initiative from the ballot in June 2018. In January 2022, the California Business Roundtable filed Initiative No. 21-0042A1 to impose new and stricter rules than the measure filed in 2018 related to the raising of state and local taxes, fees, assessments, and property-related fees. On February 24, 2022, the City Council adopted Resolution No. 2022-14 to oppose said initiative (Attachment 2). In February 2023, the California Secretary of State announced Initiative No. 21-0042A1 qualified for the November 2024 ballot. The League of California Cities is calling for cities to take action to oppose the initiative and have provided a summary and fiscal analysis on the impacts of Initiative No. 21-0042A1 (Attachment 3). The Legislative Review Committee, consisting of Mayor Pro Tem Quintanilla and Mayor Kelly, recommend adopting an updated resolution opposing the initiative (Attachment 4). FINANCIAL IMPACT: There is no fiscal impact associated with adopting the proposed resolution. REVIEWED BY: City Clerk: Anthony J. Mejia Finance Director: Veronica Chavez Assistant City Manager Chris Escobedo City Manager: Todd Hileman Item 1L-1 City of Palm Desert Resolution of Opposition to Initiative 21-0042A1 Page 2 of 2 ATTACHMENTS: 1.Resolution No. 2018-23 2.Resolution No. 2022-14 3.Summary and Fiscal Analysis 4.Resolution of Opposition to Initiative 21-0042A1 Item 1L-2 RESOLUTION NO. 2018- 23 REQUEST FOR ADOPTION OF RESOLUTION NO. 2018- 23 , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT OPPOSING A PROPOSED 2018 BALLOT MEASURE SPONSORED BY THE CALIFORNIA BUSINESS ROUNDTABLE AND AMERICAN BEVERAGE ASSOCIATION THAT LIMITS LOCAL CONTROL. WHEREAS, California's cities, counties and special districts follow strict guidelines and existing state law regarding the establishment of reasonable fees and the required voter approval of all local taxes; and WHEREAS, there is a signature -gathering campaign for a state ballot measure currently sponsored by the Califomia Business Roundtable and American Beverage Association that would severely harm the ability of local govemments to continue to provide quality services by imposing onerous roadblocks to raising local revenue to address community needs, services and infrastructure improvements; and WHEREAS, it is important for local community members, in concert with their duly - elected officials, rather than a special interest group in Sacramento, to determine the services and funding levels appropriate for their own cities; and WHEREAS, the proposed ballot measure would allow businesses to escape from their existing obligations to pay the full cost of services that they request and receive from local agencies and benefit from; and WHEREAS, the proposed ballot measure would then shift the burden of these uncovered costs from business interests to local general funds supported by taxpayers, and thereby reduce general funds available to support police, fire, park, planning, and other vital community services. NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City of Palm Desert hereby opposes the current ballot measure sponsored by the California Business Roundtable on the grounds that this measure would harm the ability of local communities to adequately fund services; and SECTION 2_ The City Manager is hereby directed to send a copy of this adopted resolution to the City's federal and state elected legislative representatives and the League of California Cities. Item 1L-3 Resolution No. 2018- 23 CBRT AND ABA Proposed Ballot Measure May 10, 2018 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, on this 10th day of May 2018, by the following vote, to wit: AYES: HARNIK, TELLY, NESTANDE, WEBER, & JONATHAN NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: RACHELLE D. SE ITY CLER K CITY OF PALM DESERT, CALIFORNI A Item 1L-4 RESOLUTION NO. 2022-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO OPPOSE INITIATIVE 21- 0042A1 WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources; and WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and WHEREAS, the measure makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and WHEREAS, the measure puts billions of dollars currently dedicated to state and local services at risk, and could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and WHEREAS, the measure would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, and utilities. NOW, THEREFORE, IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Palm Desert, State of California, that the City of Palm Desert opposes Initiative 21-0042A1. BE IT FURTHER RESOLVED that the City of Palm Desert will join the NO on Initiative 21-0042A1 coalition, a growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state. BE IT FURTHER RESOLVED that staff is directed to email a copy of this adopted resolution to the League of California Cities at BallotMeasures@calcities.org Item 1L-5 Resolution No. 2022-14 PASSED, APPROVED, AND ADOPTED on this 24th day of February 2022 by the Ifollowingvote, to wit: AYES: JONATHAN, KELLY, NESTANDE, QUINTANILLA, AND HARNIK NOES - None ABSENT: None ABSTAINNone JAN C. HARNIK, MAYOR ATTEST: NIAMH M. ORTEGA,-DtK UTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Item 1L-6 1 The Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A1 October 21, 2022 Effective date: Any new or increased tax or fee adopted by the Legislature, a city council, or the local voters after January 1, 2022, must comply with the Act’s new rules. State taxes •All new and increases in state taxes will require majority voter approval. •Prohibits property tax “surcharge” (increase). Prohibits allocation of property tax to the state. Local taxes •New requirements for voter approval o when applied to territory is annexed. o when existing tax is applied to a new service or product, for example utility user tax (UUT) to new service. •New or increased taxes adopted after January 1, 2022, must include a sunset date. Fees and charges •State and cities have burden of proving by “clear and convincing evidence” that a fee/charge is not a tax; that the amount is reasonable; and that it does not exceed “actual cost.” •Elimination of the “specific benefit conferred” or “privilege granted” exception makes it more likely that franchise fees will be considered taxes. The state and cities issue franchises to oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations. •Fees and charges for services and permits may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” Examples include planning services, excavation and encroachment permits, preparation of candidate statement, and permit parking. •No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy. Item 1L-7 2 Fines and penalties [administrative enforcement of state law and municipal codes] •Requires voter approval of fines and penalties for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties. Examples include nuisance abatement, organic waste reduction requirements, and failure to maintain a vacant property. Voters •Local advisory measures are prohibited. No measure may appear on the ballot asking for approval for a general tax that would indicate that the revenue from the general tax will, could, or should be used for a specific purpose. •Overturns Upland decision so taxes proposed by initiative are subject to the same rules as taxes placed on the ballot by a city council. •Voters may not amend a City Charter to impose, extend, or increase a tax or fee. Item 1L-8 CaliforniaCityFinance.Com Fiscal and Program Effects of Initiative 21-0042A1 on Local Governments If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in: Over $20 billion of local government fee and charge revenues over 10 years placed at heightened legal peril. Related public service reductions across virtually every aspect of city, county, special district, and school services especially for drinking water, sewer sanitation, and public health and safety. About $2 billion of revenues each year from fees and charges adopted after January 1, 2021 subject to legal peril.1 Over $2 billion dollars of annual revenues from dozens of tax measures approved by voters between January 1, 2022 and the effective date of the act2 subject to additional voter approval if not in compliance with the initiative. Indeterminable legal and administrative burdens and costs on local government from new and more empowered legal challenges, and bureaucratic cost tracking requirements. The delay and deterrence of municipal annexations. Substantially higher legal and administrative cost of public infrastructure financing which will delay and deter new residential and commercial development. Service and infrastructure declines including in fire and emergency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services. 1. Local Government Taxes and Services Threatened With regard to taxes, Initiative 21-0042A1: Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot. o Voters may be less informed and more likely to vote against measures. Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter approval (Upland).3 o Because the case law regarding citizen initiative special taxes approved by majority vote (Upland) is so recent, it is unknown how common these sorts of measures might be in the future. This initiative would prohibit such measures after the effective date of the initiative. Any such measures adopted after January 1, 2022 through the effective date of the Act should it pass would be void a year after the effective date of the initiative. Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to require that all tax increases or extensions contain a sunset (end date). o This would require additional tax measures to extend previously approved taxes. A city charter may not be amended to impose, extend, or increase a tax might interfere with the ability of cities that do not already have such authority in their charters to adopt Property Transfer Taxes. o There are no more than a few of these every few years, but it is a valuable tax for those that adopt it. 1 Assumes fee increases since January 1, 2022 would be subject to possible legal challenge if not adopted in compliance with the Initiative. 2 The effective date of the initiative would be sometime in December 2024, the date the California Secretary of State certifies the election results of the November 5, 2024 election. 3 Unlike the initiative 17-0050, this initiative does not eliminate that ability of cities and counties to adopt general taxes by majority voter approval. 2217 Isle Royale Lane • Davis, CA • 95616-6616 Phone: 530.758.3952 • Fax: 530.758.3952 Rev. January 14, 2023 Item 1L-9 –2 –rev January 14, 2023 CaliforniaCityFinance.com Requires that a tax measure adopted after January 1, 2022 and before the effective date of the initiative that was not adopted in accordance with the measure be readopted in compliance with the measure or will be void twelve months after the effective date of the initiative. o If past election patterns and elections in 2022 are an indication, over 200 tax measures approving more than $2 billion annual revenues to support local public services would not be in compliance and would be subject to reenactment. Most will be taxes without a specific end date and special taxes (including parcel taxes). Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, the measures would each require declaration of emergency and unanimous vote of the governing board to be placed on a special election ballot within a year for approval or the tax will be void after that date. I would expect most to succeed, but some will not, in particular citizen initiative majority vote special taxes which would have to meet a higher voter approval threshold to continue. Requires voter approval to expand an existing tax to new territory (annexations). This would require additional tax measures and would deter annexations and land development in cities. o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12 months later until brought into compliance. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, such extensions would each require unanimous vote of the agency board to be placed on a special election ballot or would be void a year later. 1.a. Number of Measures and Value of Local Taxes at Risk4 Over a hundred local measures were approved in 2022 that likely do not comply with the provisions of Initiative 21-0042A1. Nearly $2 billion of annual revenues from these voter approved measures will cease a year after the effective date of the measure, reducing the local public services funded by these measures. We can expect a similar volume of measures in 2024 and a similar volume of non-compliance. So the combined total of annual local funding directly affected by Initiative 21-0042A1 due to its retroactivity provision is about $4 billion. Citizen Initiative Special Taxes in 2022. Special taxes placed on the ballot by citizen initiative and approved after January 1, 2022 by a majority but less than two-thirds of the voters are out of compliance with Initiative 21-0042A1. On June 7, 2022, there were three local special tax measures placed on the ballot by citizen initiative. Two failed to get majority voter approval. A one percent transactions and use tax (sales tax) for the John C. Fremont Healthcare District in Mariposa County received 69.6 percent approval, over the two thirds needed for any special tax under California Constitution Article XIIIC. So this measure was passed in compliance with Initiative 21- 0042A1. On November 8, 2022, there were 14 local special taxes placed on the ballot by citizen initiative. Seven of these 4 Source: Compilation and summary of data from County elections offices. June 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate Estimated Annual Revenue Use Sunset YES% John C. Fremont Healthcare District Mariposa Measure N Transactions & Use Tax 1 cent $ 150,000 hospital 40yrs 69.6%PASS County of Kings Kings Measure F Transactions & Use Tax 1/2 cent $ 11,700,000 fire none 37.6%FAIL Manhattan Beach USD Los Angeles Measure A School Parcel Tax $1095/yr $ 12,000,000 schools 12yrs 31.2%FAIL Item 1L-10 –3 –rev January 14, 2023 CaliforniaCityFinance.com measures failed with less than majority voter approval. The other seven measures received majority, but less than two-thirds, voter approval. These measures passed under current law but are out of compliance with Initiative 21- 0042A1. Taken together these seven taxes will provide estimated annual revenues of from $900,000 to $1.4 billion in support of parks and recreation, zoo, library, affordable housing, transportation, homelessness prevention, and schools in these communities. Non-Specific Tax Durations in 2022 Voters approved 106 measures in June 2022 (10) and November 2022 (96) that do not provide a specific duration of time that the tax will be imposed (end date). Typically, the ballot titles for these measures state that the tax would be imposed “until ended by voters.” Four of these measures also did not include any estimate of the annual revenues that the tax would generate, another violation of initiative 21-0042A1. Taken together, these approved local measures generate $561 million per year that will expire a year after the effective date of the initiative if Initiative 21-0042A1 passes. November 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate Estimated Annual Revenue Use Sunset YES% Crockett Community Services District Contra Costa Measure L Parcel Tax $50/parcel $ 60,000 parks/recr none 62.8%PASS Oakland Alameda Measure Y Parcel Tax $68/parcel $ 12,000,000 zoo 20yrs 62.5%PASS County of Mendocino Measure O Transactions & Use Tax 1/8 cent then 1/4 cent in 2027 $ 4,000,000 library none 60.8%PASS Los Angeles Los Angeles Measure ULA Property Transfer Tax 4% if >$5m, 5.5% if >$10m $600 m to $1.1 b affordable housing none 57.3%PASS County of Sacramento Measure A Transactions & Use Tax same 1/2 cent $ 212,512,500 transportati on 40yrs 55.3%PASS San Francisco Proposition M Business Operations Tax $2500-$5000/ vacant resid unit $ 20,000,000 housing 30yrs 54.5%PASS Santa Monica Los Angeles Measure GS Property Transfer Tax $56/$1000 if >$8m $ 50,000,000 schools, homelessne ss, afford. housing none 53.3%PASS Total $900,000 to $1.4 billion Agency Name County Tax/Fee Rate Estimated Annual Revenue Use Sunset YES% County of Calaveras Measure A Transactions & Use Tax 1 cent $ 5,000,000 fire none 49.4%FAIL South San Francisco (for Schools)San Mateo Measure DD School Parcel Tax $2.50/sf $ 55,900,000 schools none 47.2%FAIL County of Fresno (for CSU ) Measure E Transactions & Use Tax 1/5 ct, 1/40 ct (Reedley) $ 36,000,000 Calif State Univ 20yrs 46.9%FAIL Santa Cruz Santa Cruz Measure N Parcel Tax $6k/v acant SFU xxx vacant property xxx 44.2%FAIL County of Monterey Measure Q Parcel Tax $49/parcel $ 5,500,000 childcare 10yrs 41.1%FAIL San Francisco City College San Francisco Measure O School Parcel Tax $150/sfu $ 37,000,000 schools 10yrs 36.7%FAIL Morro Bay San Luis Obispo Measure B Parcel Tax $120+/parcel $ 680,000 harbor none 36.0%FAIL Inverness Public Utility District Marin Measure O Parcel Tax $0.20/sf, $150/vacant $ 276,000 fire none 27.0%FAIL Item 1L-11 –4 –rev January 14, 2023 CaliforniaCityFinance.com Measures in 2022 with Non-Specific Durations Agency Name County Tax/Fee Rate Annual Revenue Use Sunset YES% Oakland Alameda Measure T Business Tax General various $ 20,900,000 none 71.4%PASS Culver City Los Angeles Measure BL Business Tax General various $ 10,000,000 none 60.5%PASS El Segundo Los Angeles Measure BT Business Tax General various $ 3,000,000 none 51.2%PASS Pico Rivera Los Angeles Measure AB Business Tax General various $ 5,800,000 none 75.5%PASS Santa Ana Orange Measure W Business Tax General various neutral none 64.8%PASS Tracy San Joaquin Measure B Business Tax General various $ 3,200,000 none 72.6%PASS Burlingame San Mateo Measure X Business Tax General various $ 2,500,000 none 75.1%PASS Los Gatos Santa Clara Measure J Business Tax General various $ 1,100,000 none 53.4%PASS Santa Clara Santa Clara Measure H Business Tax General $45/employee, $15/rental unit $ 6,000,000 none 59.5%PASS Brisbane San Mateo Measure O Business Tax lodging busn $2.50/rm/day $ 250,000 none 69.2%PASS East Palo Alto San Mateo Measure L Business Tax resid. rentals 2.5% grossRcpts $ 1,480,000 none 69.9%PASS County of Santa Cruz Unincorporated Measure C Busn Tax - disp cups 12.5cents/cup $ 700,000 none 68.2%PASS South Lake Tahoe El Dorado Measure G Busn Tax Cannabis 6% retail, manufacturing $ 950,000 none 62.9%PASS McFarland Kern Measure O Busn Tax Cannabis 8% of gross receipts retail, $ 1,800,000 none 63.5%PASS Avenal Kings Measure C Busn Tax Cannabis $25+/sf or 15% gr rcpts $ 600,000 none 61.8%PASS Baldwin Park Los Angeles Measure CB Busn Tax Cannabis 4% grossRcpts $ 300,000 none 51.3%PASS Claremont Los Angeles Measure CT Busn Tax Cannabis 4%-7% gr rcpts, $1- $ 500,000 none 61.1%PASS County of Los Angeles Unincorporated Measure C Busn Tax Cannabis 4% gross receipts retail, $ 15,170,000 none 60.1%PASS Cudahy Los Angeles Measure BA Busn Tax Cannabis 15% grossRcpts $ 3,600,000 none 54.0%PASS El Segundo Los Angeles Measure Y Busn Tax Cannabis 10% GrossRcpt, $ 1,500,000 none 72.8%PASS Hermosa Beach Los Angeles Measure T Busn Tax Cannabis 10% GrossRcpt, $ 1,500,000 none 67.6%PASS Lynwood Los Angeles Measure TR Busn Tax Cannabis 5%to10% $ 3,000,000 none 66.4%PASS Santa Monica Los Angeles Measure HM Busn Tax Cannabis 10% gross Rcpts $ 5,000,000 none 66.4%PASS South El Monte Los Angeles Measure CM Busn Tax Cannabis 6% special excise tax on $ 126,000 none 53.7%PASS Monterey Monterey Measure J Busn Tax Cannabis 6% grossRcpt $ 1,300,000 none 65.2%PASS Pacific Grove Monterey Measure N Busn Tax Cannabis 6% grossRcpt $ 300,000 none 70.8%PASS Huntington Beach Orange Measure O Busn Tax Cannabis 6% retail, 1% other $ 600,000 none 54.7%PASS Item 1L-12 –5 –rev January 14, 2023 CaliforniaCityFinance.com Notes ?= Ballot measure title did not include an estimate of annual revenues, also not in compliance with Initiative 21-0042A1. n/a*= Arcadia Measure SW passed but sports betting remains illegal after the failure of Propositions 26 and 27 on the November statewide ballot. Measures in 2022 with Non-Specific Durations Agency Name County Tax/Fee Rate Annual Revenue Use Sunset YES% Laguna Woods Orange Measure T Busn Tax Cannabis 4%-10% o f gross receipts $ 750,000 none 61.1%PASS Corona Riverside Measure G Busn Tax Cannabis 9% of gross receipts for $ 5,000,000 none 61.6%PASS Montclair San Bernardino Measure R Busn Tax Cannabis 7% grossRcpts $ 3,500,000 none 70.3%PASS County of San Diego Unincorporated Measure A Busn Tax Cannabis 6% retail, 3% distribution, $ 5,600,000 none 57.4%PASS Encinitas San Diego Measure L Busn Tax Cannabis 4% to 7% of gross receipts $ 1,400,000 none 65.1%PASS Healdsburg Sonoma Measure M Busn Tax Cannabis 8% grossRcpt $ 500,000 none 72.7%PASS Exeter Tulare Measure B Busn Tax Cannabis 10% retail and other, $10/sf ? none 66.5%PASS Tulare Tulare Measure Y Busn Tax Cannabis 10% retail and other, $10/sf ? none 65.2%PASS Woodland Yolo Measure K Busn Tax Cannabis 10% grossRcpts ? none 66.2%PASS Redlands San Bernardino Measure J Busn Tax Distrib centers from $0.047/sf to $0.105/sf $ 530,000 none 53.5%PASS Arcadia Los Angeles Measure SW Busn Tax Sports Betting 5% grossRcpts n/a* none 63.9%PASS Albany Alameda Measure K ParcelTax $0.074+/sf $ 1,950,000 fire/EMS none76.0%PASS Cameron Park Airport District El Dorado Measure J ParcelTax by $600 to $900/parcel $ 117,900 airport/ streets none 78.2%PASS Highlands Village Lighting Benefit Zone El Dorado Measure L ParcelTax $140+/parcel $ 10,920 streets none 86.3%PASS Knolls Property Owners CSD El Dorado Measure P ParcelTax by $300+ to $600+/parcel $ 8,400 streets none 75.5%PASS Sundance Trail Zone of Benefit El Dorado Measure C ParcelTax $600+/yr $ 24,000 roads none 73.2%PASS South Pasadena Los Angeles Measure LL ParcelTax xxx ? library none 86.2%PASS River Delta Fire District Sacramento Measure H ParcelTax $90/yr $ 130,000 fire none 72.1%PASS Emeryville Alameda Measure O PropTransfTax $15/$1000 if $1m-$2m, $ 5,000,000 none 71.6%PASS San Mateo San Mateo Measure CC PropTransfTax by 1% to 1.5% if >$10m $ 4,800,000 none 71.8%PASS Alameda Alameda Measure F TOT by 4% to 14% $ 910,000 none 59.2%PASS Clovis Fresno Measure B TOT by 2% to 12% $ 500,000 none 69.7%PASS Kerman Fresno Measure G TOT 10% $ 40,000 none 62.3%PASS Trinidad Humboldt Measure P TOT by 4% to 12% $ 65,000 none 77.6%PASS Imperial Imperial Measure G TOT by 4% to 12% $ 600,000 none 56.2%PASS Arcadia Los Angeles Measure HT TOT by 2% to 12% $ 730,000 none 54.1%PASS Santa Monica Los Angeles Measure CS TOT by 1%, 3% home shares $ 4,100,000 none 73.7%PASS Item 1L-13 –6 –rev January 14, 2023 CaliforniaCityFinance.com Measures in 2022 with Non-Specific Durations Agency Name County Tax/Fee Rate Annual Revenue Use Sunset YES% Anaheim Orange Measure J TOT online travel companies $ 3,000,000 none 59.2%PASS La Palma Orange Measure P TOT by 4% to 12% $ 200,000 none 71.1%PASS Colfax Placer Measure B TOT by 2% to10% $ 29,000 none 73.5%PASS Rocklin Placer Measure F TOT by 2% to 10% $ 300,000 none 59.8%PASS Roseville Placer Measure C TOT by 4% to 10% $ 3,000,000 none 73.0%PASS Big Bear Lake San Bernardino Measure P TOT by 2% to 10% $ 1,300,000 none54.4%PASS Grand Terrace San Bernardino Measure M TOT new 10% $ 250,000 none 51.9%PASS Yucca Valley San Bernardino Measure K TOT by 5% to 12% $ 1,300,000 none 71.9%PASS Imperial Beach San Diego Measure R TOT by 4% to 14% $ 400,000 none 67.4%PASS El Paso de Robles San Luis Obisp oMeasure F TOT by 1% to 11% $ 750,000 none 61.2%PASS Belmont San Mateo Measure K TOT by 2% to 14% $ 600,000 none 79.3%PASS Millbrae San Mateo Measure N TOT by 2% to 14% $ 1,500,000 none 75.8%PASS County of Humboldt Unincorporated Measure J TOT by 2% to 12% $ 3,080,000 none 63.3%PASS County of Placer - North Tahoe TOT Area Measure A TOT by 2% to 10% $ 4,000,000 none 90.0%PASS County of Santa Cruz Unincorporated Measure B TOT by 1% to 12% $ 2,300,000 none 69.2%PASS County of El Dorado - East Slope Tahoe Measure S TOT 2/3 by 4% to 14% $ 2,500,000 none 81.8%PASS Chico Butte Measure H TrUT 1 cent $ 24,000,000 none 52.4%PASS Mendota Fresno Measure H TrUT 1.25 cent $ 493,498 none 57.2%PASS Blue Lake Humboldt Measure R TrUT 1 cent $ 30,000 none 55.4%PASS Rio Dell Humboldt Measure O TrUT 3/4cent $ 400,000 none 53.3%PASS County of Kern unincorporated areas Measure K TrUT 1 cent $ 54,000,000 none 50.8%PASS McFarland Kern Measure M TrUT 1 cent $ 579,662 none 62.2%PASS Tehachapi Kern Measure S TrUT 1 cent $ 4,000,000 none 57.2%PASS Avenal Kings Measure A TrUT 1 cent $ 500,000 none 72.5%PASS Susanville Lassen Measure P TrUT 1 cent $ 1,750,000 none 54.7%PASS Baldwin Park Los Angeles Measure BP TrUT 3/4 cent $ 6,000,000 none 58.1%PASS Malibu Los Angeles Measure MC TrUT 1/2 cent $ 3,000,000 none 52.6%PASS Monterey Park Los Angeles Measure MP TrUT 3/4 cent $ 6,000,000 none 58.5%PASS Torrance Los Angeles Measure SST TrUT 1/2 cent $ 18,000,000 none 55.0%PASS Larkspur Marin Measure G TrUT 1/4 cent $ 700,000 none 59.4%PASS Sand City Monterey Measure L TrUT by 1/2cent to 1.5cents $ 1,400,000 none 68.7%PASS Hemet Riverside Measure H TrUT same 1 cent $ 15,000,000 none 58.0%PASS Elk Grove Sacramento Measure E TrUT 1 cent $ 21,000,000 none 54.1%PASS Galt Sacramento Measure Q TrUT 1 cent $ 3,600,000 none 52.4%PASS Colton San Bernardino Measure S TrUT 1 cent $ 9,500,000 none 66.8%PASS Ontario San Bernardino Measure Q TrUT 1 cent $ 95,000,000 none 53.2%PASS Solana Beach San Diego Measure S TrUT 1 cent $ 3,000,000 none 66.7%PASS Brisbane San Mateo Measure U TrUT 1/2 cent $ 2,000,000 none 63.9%PASS Goleta Santa Barbara Measure B TrUT 1 cent $ 10,600,000 none 64.7%PASS Solvang Santa Barbara Measure U TrUT 1 cent $ 1,600,000 none 63.1%PASS Item 1L-14 –7 –rev January 14, 2023 CaliforniaCityFinance.com Co-temporal Advisory Measures in 2022 At the November 2022 election, there was just one local general tax measure that was accompanied by an advisory measure as to the use of funds. The City of Santa Monica’s Measure DT property transfer tax failed with just 34 percent approval as voters instead chose the citizen initiative Measure GS. There was also just one such tax use advisory measure on the June 2022 election. Susanville’s voters passed Measure P, a 1 percent transactions and use (sales) tax that generates $1.75 million per year5 for general city services. The measure was accompanied by advisory Measure Q, accompanied the city’s It asked, “If Measure P passes, should the revenues be used to balance the budget to maintain and enhance existing public safety services (police and fire), and provide funding to support street infrastructure improvements and provide funding to support economic development efforts designed to increase businesses, jobs and visitors to Susanville?” Both measures passed. Under Initiative 21-0042A1, the tax will expire a year after the effective date of the initiative (i.e., in December 2025). 1.b. Additional Costs and Public Service Effects of the Tax Provisions Assuming a similar volume of local measures through 2024 as we saw in 2022, there will be over 200 local measures that will need to be redrafted to comply with the Initiative and placed back on the ballot for the taxes to continue after December 2025. The costs of re-drafting, re-placing and re-voting on these measures, previously legally approved by voters, will be in the tens of millions in total statewide. 2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1: Subjects new fees and charges for a product or service to a new "actual and reasonable test." Subjects fees and charges for entrance to local government property; and rental and sale of local government property to a new, undefined, “reasonable” test. Allows legal challenge to any tax adopted before the effective date of the initiative and after January 1, 5 The Susanville measure also did not include a specific end date and so is included in the list and totals of those measures. Measures in 2022 with Non-Specific Durations Agency Name County Tax/Fee Rate Annual Revenue Use Sunset YES% Watsonville Santa Cruz Measure R TrUT 1/2 cent $ 5,000,000 none 64.4%PASS Vallejo Solano Measure P TrUT 7/8 cent $ 18,000,000 none 54.7%PASS Modesto Stanislaus Measure H TrUT 1 cent $ 39,000,000 none 62.8%PASS County of Colusa Measure A TrUT 2/3 1/2 cent $ 2,400,000 EMS none 69.4%PASS Atwater Merced Measure B TrUT 2/3 same 1 cent $ 4,000,000 police/fire none 73.7%PASS Truckee Nevada Measure U TrUT 2/3 by 1/4 cent to 1/2 cent $ 3,000,000 open space / trails none 76.4%PASS Palo Alto Santa Clara Measure L UtilityTransfer 18% gas $ 7,000,000 none 77.7%PASS Santa Clara Santa Clara Measure G UtilityTransfer 5 % $ 30,000,000 none 84.2%PASS Hercules Contra Costa Measure N UUT 8% $ 3,600,000 none 69.3%PASS Carson Los Angeles Measure UU UUT 2% electr, gas $ 8,000,000 none 78.4%PASS Sebastopol Sonoma Measure N UUT 3.75% (same) $ 700,000 none 83.5%PASS Item 1L-15 –8 –rev January 14, 2023 CaliforniaCityFinance.com 2022. Such a lawsuit could enjoin (stop) the enactment of the tax pending the outcome of the legal challenge. Subjects a challenged fee to new, higher burdens of proof if legally challenged. 2.a. Value on New Local Government Fees and Charges at Risk6 Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local government fee and charge revenue placed at risk is about $2 billion per year including those adopted since January 1, 2022. Of $2 billion, about $900 million (45 percent) is for special districts, $800 million (40 percent) is cities, and $300 million (15 percent) is counties.7 Major examples of affected fees and charges are: 1. Certain water, sanitary sewer, wastewater, garbage, electric, gas service fees. 2. Nuisance abatement charges - such as for weed, rubbish and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs. 3. Emergency response fees - such as in connection with DUI. 4. Advanced Life Support (ALS) transport charges. 5. Business improvement district charges. 6. Fees for processing of land use and development applications such as plan check fees, use permits, design review, environmental assessment, plan amendment, subdivision map changes. 7. Document processing and duplication fees. 8. Facility use charges, parking fees, tolls. 9. Fines, penalties. 10. Fees for parks and recreation services. 2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure financing more difficult and will deter new residential and commercial development. *********** mc 6 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts, summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually. 7 School fees are also affected but the amount is negligible by comparison. Item 1L-16 RESOLUTION NO. _____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO OPPOSE INITIATIVE NO. 21-0042A1 WHEREAS, an association representing California’s wealthiest corporations and developers is spending millions to push a deceptive proposition aimed for the November 2024 statewide ballot; and WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure and our environment; and WHEREAS, the measure may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and WHEREAS, the measure puts billions of dollars currently dedicated to local services at risk and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Palm Desert hereby opposes Initiative No. 21-0042A1. SECTION 2. The City of Palm Desert will join the “No on Initiative 21-0042A1” coalition, a growing coalition of public safety, education, labor, local government, and infrastructure groups throughout the state. SECTION 3. City staff shall email a copy of this adopted resolution to the League of California Cities at BallotMeasures@calcities.org. Item 1L-17 Resolution No. _____ Page 2 PASSED, APPROVED AND ADOPTED BY THE PALM DESERT CITY COUNCIL THIS ____ DAY OF ________, 2023. Kathleen Kelly Mayor ATTEST: Anthony J. Mejia City Clerk I, ANTHONY J. MEJIA, City Clerk of the City of Palm Desert, hereby certify that Resolution No. _______is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on __________, 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, this _____ day of __________, _________. Anthony J. Mejia, MMC City Clerk Item 1L-18 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Anthony J. Mejia, City Clerk REQUEST: LETTER OF SUPPORT FOR THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS’ COMMUNITY FUNDING REQUEST FOR THE SOCAL COMPREHENSIVE GOODS MOVEMENT PLAN AND IMPLEMENTATION STRATEGY UPDATE RECOMMENDATION: Authorize the Mayor to sign a letter of support for the Southern California Association of Governments’ (SCAG) Community Funding request for the SoCal Comprehensive Goods Movement Plan and Implementation Strategy update. BACKGROUND/ANALYSIS: At the request of the Legislative Review Committee (Mayor Kelly and Mayor Pro Tem Quintanilla), the City Council is requested to consider a letter of support for the SCAG Community Funding request for the SoCal Comprehensive Goods Movement Plan and Implementation Strategy update. SCAG seeks the funding to update its current “Comprehensive Goods Movement Plan and Implementation Strategy” published in 2013, a long-range plan for the goods movement system in Southern California. SCAG indicates that an update to the Southern California region’s comprehensive goods movement plan and strategy is essential to support economic goals, address mobility challenges and supply chain issues, foster environmental good stewardship, and promote community livability and a high quality of life. The Plan’s core elements will include an equity component, the development of a freight tour-based model enhancement, and strategies leading to a phased schedule for project priorities for the Southern California region. FINANCIAL IMPACT: There is no fiscal impact associated with issuance of the proposed letter. REVIEWED BY: City Clerk: Anthony J. Mejia Finance Director: Veronica Chavez Assistant City Manager Chris Escobedo City Manager: Todd Hileman ATTACHMENT: Letter of Support Item 1M-1 March 9, 2023 The Honorable Ken Calvert United States House of Representatives 73710 Fred Waring Drive, Suite 129 Palm Desert, CA 92260 Re: SCAG Community Project Funding Request - SoCal Comprehensive Goods Movement Plan and Implementation Strategy (On the Move) Update - SUPPORT Dear Representative Calvert: On behalf of the City of Palm Desert, we are pleased to support the Southern California Association of Government’s (SCAG) Community Project Funding request, “SoCal Comprehensive Goods Movement Plan and Implementation Strategy Update,” for Community Project Funding. SCAG seeks the funding to update its current “Comprehensive Goods Movement Plan and Implementation Strategy” published in 2013, a long-range plan for the goods movement system in Southern California designed to ensure that the Southern California region continues to play a vital role in the global supply chain. SCAG is the largest Metropolitan Planning Organization (MPO) in the United States and serves as our nation’s premier trade gateway. Along with being an economic and cultural powerhouse, the SCAG region is one of the most significant goods movement regions in the U.S. and leads many important freight categories in international trade, seaports, railroads, air cargo, and trucking. This helps make the region a leader in manufacturing, production, warehousing, and distribution and has a tremendous impact on the national economy. In fact, key goods movement industries support one out of every three jobs in the Southern California region. As such, the region is critical in facilitating and supporting domestic and international freight and goods movement. Therefore, an update to the Southern California region’s comprehensive goods movement plan and strategy is essential to support economic goals, address mobility challenges and supply chain issues, foster environmental good stewardship, and promote community livability and a high quality of life. During the past ten years, global supply chains have witnessed increasing instability. International tariff policies, the COVID-19 pandemic, new wars, intensifying inflationary pressures, and geopolitical tensions across the globe have disrupted freight movement. However, investments in freight movement have never been higher, with historic levels of federal and state funding allocated to improve freight fluidity, efficiency, safety, and resilience. It is critical that SCAG leverage these investments to update its “Comprehensive Goods Movement Plan and Implementation Strategy.” The Plan’s core elements will include an equity component, the development of a freight tour-based model enhancement, and strategies leading to a phased schedule for project priorities for the Southern California region. Item 1M-2 SCAG’s proposed Plan update is crucial for the region and national economic future. It will be critical to helping alleviate issues in disadvantaged communities disproportionately impacted by freight while enhancing technical planning tools and identifying priority projects. For those reasons, the City of Palm Desert respectfully urges you to give this proposal full and fair consideration. If you have any questions regarding our support, please do not hesitate to contact the City Manager, Todd Hileman, at (760) 346-0611 or email thileman@palmdesert.gov. Sincerely, Item 1M-3 [This page has intentionally been left blank.] Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Clayton von Helf, Information Systems Manager REQUEST: AUTHORIZE THE CITY MANAGER TO ENTER INTO A THREE-YEAR AGREEMENT WITH ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. (ESRI) FOR AN ENTERPRISE AGREEMENT (EA) SOFTWARE LICENSE IN THE AMOUNT OF $178,800 RECOMMENDATION: Authorize the City Manager to enter into a three-year agreement with Environmental Systems Research Institute, Inc. (ESRI) for an Enterprise Agreement (EA) Software License, in the amount of $178,800 plus taxes, to provide unlimited software licenses, maintenance, support, training, and technical assistance for GIS (Geographic Information Systems) initiatives. BACKGROUND/ANALYSIS: GIS software is integral to many processes and services the City provides. The most visible use is the creation of maps for presentations; however, GIS also underpins our permitting and licensing software, is part of asset management and tracking, provides valuable data for budgeting and is used in complex analysis of issues ranging from short term rentals to traffic signal coordination. Environmental Systems Research Institute (ESRI) is the global leader of GIS software and services. The City of Palm Desert utilizes a suite of ESRI software products for our GIS services. To harness the powerful capabilities of the ESRI software, we have used an Enterprise Agreement for the past three years with great success, providing staff with unlimited quantities of the ESRI software licenses, support, maintenance, and training. This is the most economical way for the City to make use of GIS enabled apps, maps, web portals, and GIS analysis tools. With unlimited software licenses we can install specific GIS applications for users to update GIS data, without the complex software, or the need for GIS Administrator assistance. By continuing to leverage an EA, the City will continue to push out many purpose-built applications without incurring additional expenses. Item 1N-1 City of Palm Desert ESRI Enterprise Agreement Page 2 of 2 FINANCIAL IMPACT: ESRI Enterprise Agreement (EA) is available at a cost of $178,800 for three years, plus taxes. Funds are available in Account No. 1104190-4362001 for the current fiscal year and will be appropriated in future fiscal years upon budget approval. REVIEWED BY: Department Director: Veronica Chavez Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman ATTACHMENTS: 1.Quotation #Q-487776 Item 1N-2 Quotation # Q-487776 Date: January 6, 2023 Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: (909) 793-2853 DUNS Number: 06-313-4175 CAGE Code: 0AMS3 Customer # 6677 Contract # ENTERPRISE AGREEMENT City of Palm Desert Information Systems 73510 Fred Waring Dr Palm Desert, CA 92260 To expedite your order, please attach a copy of ATTENTION: Clayton von Helf this quotation to your purchase order.PHONE:7603460611 Quote is valid from: 1/6/2023 To: 4/6/2023 EMAIL: cvonhelf@cityofpalmdesert.org Enterprise Agreement Material Qty Term Unit Price Total 168179 1 Year 1 $55,000.00 $55,000.00 Populations of 50,001 to 100,000 Small Government Term Enterprise License Agreement Year 2023 - 2024 168179 1 Year 2 $56,700.00 $56,700.00 Populations of 50,001 to 100,000 Small Government Term Enterprise License Agreement Year 2024 - 2025 168179 1 Year 3 $56,700.00 $56,700.00 Populations of 50,001 to 100,000 Small Government Term Enterprise License Agreement Year 2025 - 2026 Standard Product Year 1 Material Qty Term Unit Price Total 178625 5 $80.00 $400.00 ArcGIS Business Analyst Web App Standard Online Term License Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. For questions contact: Natalie Carter Email: ncarter@esri.com Phone: (909) 793-2853 x7419 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA. CARTERN This offer is limited to the terms and conditions incorporated and attached herein. Item 1N-3 Quotation # Q-487776 Date: January 6, 2023 Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: (909) 793-2853 DUNS Number: 06-313-4175 CAGE Code: 0AMS3 Customer # 6677 Contract # ENTERPRISE AGREEMENT City of Palm Desert Information Systems 73510 Fred Waring Dr Palm Desert, CA 92260 To expedite your order, please attach a copy of ATTENTION: Clayton von Helf this quotation to your purchase order.PHONE:7603460611 Quote is valid from: 1/6/2023 To: 4/6/2023 EMAIL: cvonhelf@cityofpalmdesert.org Material Qty Term Unit Price Total 169044 5 $2,000.00 $10,000.00 ArcGIS Urban Suite Online Term License Subtotal:$178,800.00 Sales Tax:$0.00 Estimated Shipping and Handling (Surface Delivery):$0.00 Contract Price Adjust:$0.00 Total:$178,800.00 Year 1 is a onetime offer and valid through the first year term of this Enterprise Agreement. The Enterprise Agreement renewal fee will be based on the List Price at the time of Renewal. Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. For questions contact: Natalie Carter Email: ncarter@esri.com Phone: (909) 793-2853 x7419 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA. CARTERN This offer is limited to the terms and conditions incorporated and attached herein. Item 1N-4 Quotation # Q-487776 Date: January 6, 2023 Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: (909) 793-2853 DUNS Number: 06-313-4175 CAGE Code: 0AMS3 Customer # 6677 Contract # ENTERPRISE AGREEMENT City of Palm Desert Information Systems 73510 Fred Waring Dr Palm Desert, CA 92260 To expedite your order, please attach a copy of ATTENTION: Clayton von Helf this quotation to your purchase order.PHONE:7603460611 Quote is valid from: 1/6/2023 To: 4/6/2023 EMAIL: cvonhelf@cityofpalmdesert.org _________________________________________________________________________________________________________________________________ If you have made ANY alterations to the line items included in this quote and have chosen to sign the quote to indicate your acceptance, you must fax Esri the signed quote in its entirety in order for the quote to be accepted. You will be contacted by your Customer Service Representative if additional information is required to complete your request. If your organization is a US Federal, state, or local government agency; an educational facility; or a company that will not pay an invoice without having issued a formal purchase order, a signed quotation will not be accepted unless it is accompanied by your purchase order. In order to expedite processing, please reference the quotation number and any/all applicable Esri contract number(s) (e.g. MPA, ELA, SmartBuy, GSA, BPA) on your ordering document. BY SIGNING BELOW, YOU CONFIRM THAT YOU ARE AUTHORIZED TO OBLIGATE FUNDS FOR YOUR ORGANIZATION, AND YOU ARE AUTHORIZING ESRI TO ISSUE AN INVOICE FOR THE ITEMS INCLUDED IN THE ABOVE QUOTE IN THE AMOUNT OF $___________, PLUS SALES TAXES IF APPLICABLE. DO NOT USE THIS FORM IF YOUR ORGANIZATION WILL NOT HONOR AND PAY ESRI'S INVOICE WITHOUT ADDITIONAL AUTHORIZING PAPERWORK. Please check one of the following: ___ I agree to pay any applicable sales tax. ___ I am tax exempt, please contact me if exempt information is not currently on file with Esri. ___________________________________________ ________________________ Signature of Authorized Representative Date ___________________________________________ Name (Please Print) ___________________________________________ Title _________________________________________________________________________________________________________________________________ The quotation information is proprietary and may not be copied or released other than for the express purpose of system selection and purchase/license. This information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (Esri). Any estimated sales and/or use tax reflected on this quote has been calculated as of the date of this quotation and is merely provided as a convenience for your organization's budgetary purposes. Esri reserves the right to adjust and collect sales and/or use tax at the actual date of invoicing. If your organization is tax exempt or pays state tax directly, then prior to invoicing, your organization must provide Esri with a copy of a current tax exemption certificate issued by your state's taxing authority for the given jurisdiction. Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. For questions contact: Natalie Carter Email: ncarter@esri.com Phone: (909) 793-2853 x7419 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://go.esri.com/MAPS apply to your purchase of that item. If any item is quoted with a multi-year payment schedule, then unless otherwise stated in this quotation, Customer is required to make all payments without right of cancellation. Third-party data sets included in a quotation as separately licensed items will only be provided and invoiced if Esri is able to provide such data and will be subject to the applicable third-party's terms and conditions. If Esri is unable to provide any such data set, Customer will not be responsible for any further payments for the data set. US Federal government entities and US government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some US state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin for customers located in the USA. CARTERN This offer is limited to the terms and conditions incorporated and attached herein. Item 1N-5 Esri Use Only: Cust. Name Cust. # PO # Esri Agreement # Page 1 of 6 January 3, 2023 SMALL ENTERPRISE AGREEMENT COUNTY AND MUNICIPALITY GOVERNMENT (E214-3) This Agreement is by and between the organization identified in the Quotation ("Customer") and Environmental Systems Research Institute, Inc. ("Esri"). This Agreement sets forth the terms for Customer's use of Products and incorporates by reference (i) the Quotation and (ii) the Master Agreement. Should there be any conflict between the terms and conditions of the documents that comprise this Agreement, the order of precedence for the documents shall be as follows: (i) the Quotation, (ii) this Agreement, and (iii) the Master Agreement. This Agreement shall be governed by and construed in accordance with the laws of the state in which Customer is located without reference to conflict of laws principles, and the United States of America federal law shall govern in matters of intellectual property. The modifications and additional rights granted in this Agreement apply only to the Products listed in Table A. Table A List of Products Uncapped Quantities Desktop Software and Extensions (Single Use) ArcGIS Desktop Advanced ArcGIS Desktop Standard ArcGIS Desktop Basic ArcGIS Desktop Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager, ArcGIS Data Reviewer Enterprise Software and Extensions ArcGIS Enterprise (Advanced and Standard) ArcGIS Monitor ArcGIS Enterprise Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager, ArcGIS Data Reviewer Enterprise Additional Capability Servers ArcGIS Image Server Developer Tools ArcGIS Runtime Standard ArcGIS Runtime Analysis Extension Limited Quantities One (1) Professional subscription to ArcGIS Developer Two (2) ArcGIS CityEngine Single Use Licenses 250 ArcGIS Online Viewers 250 ArcGIS Online Creators 37,500 ArcGIS Online Service Credits 250 ArcGIS Enterprise Creators 5 ArcGIS Insights in ArcGIS Enterprise 5 ArcGIS Insights in ArcGIS Online 50 ArcGIS Location Sharing for ArcGIS Enterprise 50 ArcGIS Location Sharing for ArcGIS Online 4 ArcGIS Parcel Fabric User Type Extensions (Enterprise) 4 ArcGIS Utility Network User Type Extensions (Enterprise) 4 ArcGIS Trace Network User Type Extensions (Enterprise) OTHER BENEFITS Number of Esri User Conference registrations provided annually 4 Number of Tier 1 Help Desk individuals authorized to call Esri 4 Maximum number of sets of backup media, if requested* 2 Five percent (5%) discount on all individual commercially available instructor-led training classes at Esri facilities purchased outside this Agreement *Additional sets of backup media may be purchased for a fee Item 1N-6 Page 2 of 6 January 3, 2023 Customer may accept this Agreement by signing and returning the whole Agreement with (i) the Quotation attached, (ii) a purchase order, or (iii) another document that matches the Quotation and references this Agreement ("Ordering Document"). ADDITIONAL OR CONFLICTING TERMS IN CUSTOMER'S PURCHASE ORDER OR OTHER DOCUMENT WILL NOT APPLY, AND THE TERMS OF THIS AGREEMENT WILL GOVERN. This Agreement is effective as of the date of Esri's receipt of an Ordering Document, unless otherwise agreed to by the parties ("Effective Date"). Term of Agreement: Three (3) years This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between the parties relating to the licensing of the Products. Except as provided in Article 4— Product Updates, no modifications can be made to this Agreement. Accepted and Agreed: (Customer) By: Authorized Signature Printed Name: Title: Date: CUSTOMER CONTACT INFORMATION Contact: Telephone: Address: Fax: City, State, Postal Code: E-mail: Country: Quotation Number (if applicable): Item 1N-7 Page 3 of 6 January 3, 2023 1.0—ADDITIONAL DEFINITIONS In addition to the definitions provided in the Master Agreement, the following definitions apply to this Agreement: "Case" means a failure of the Software or Online Services to operate according to the Documentation where such failure substantially impacts operational or functional performance. "Deploy", "Deployed" and "Deployment" mean to redistribute and install the Products and related Authorization Codes within Customer's organization(s). "Fee" means the fee set forth in the Quotation. "Maintenance" means Tier 2 Support, Product updates, and Product patches provided to Customer during the Term of Agreement. "Master Agreement" means the applicable master agreement for Esri Products incorporated by this reference that is (i) found at https://www.esri.com/en- us/legal/terms/full-master-agreement and available in the installation process requiring acceptance by electronic acknowledgment or (ii) a signed Esri master agreement or license agreement that supersedes such electronically acknowledged master agreement. "Product(s)" means the products identified in Table A—List of Products and any updates to the list Esri provides in writing. "Quotation" means the offer letter and quotation provided separately to Customer. "Technical Support" means the technical assistance for attempting resolution of a reported Case through error correction, patches, hot fixes, workarounds, replacement deliveries, or any other type of Product corrections or modifications. "Tier 1 Help Desk" means Customer's point of contact(s) to provide all Tier 1 Support within Customer's organization(s). "Tier 1 Support" means the Technical Support provided by the Tier 1 Help Desk. "Tier 2 Support" means the Esri Technical Support provided to the Tier 1 Help Desk when a Case cannot be resolved through Tier 1 Support. 2.0—ADDITIONAL GRANT OF LICENSE 2.1 Grant of License. Subject to the terms and conditions of this Agreement, Esri grants to Customer a personal, nonexclusive, nontransferable license solely to use, copy, and Deploy quantities of the Products listed in Table A—List of Products for the Term of Agreement (i) for the applicable Fee and (ii) in accordance with the Master Agreement. 2.2 Consultant Access. Esri grants Customer the right to permit Customer's consultants or contractors to use the Products exclusively for Customer's benefit. Customer will be solely responsible for compliance by consultants and contractors with this Agreement and will ensure that the consultant or contractor discontinues use of Products upon completion of work for Customer. Access to or use of Products by consultants or contractors not exclusively for Customer's benefit is prohibited. Customer may not permit its consultants or contractors to install Software or Data on consultant, contractor, or third-party computers or remove Software or Data from Customer locations, except for the purpose of hosting the Software or Data on Contractor servers for the benefit of Customer. 3.0—TERM, TERMINATION, AND EXPIRATION 3.1 Term. This Agreement and all licenses hereunder will commence on the Effective Date and continue for the duration identified in the Term of Agreement, unless this Agreement is terminated earlier as provided herein. Customer is only authorized to use Products during the Term of Agreement. For an Agreement with a limited term, Esri does not grant Customer an indefinite or a perpetual license to Products. 3.2 No Use upon Agreement Expiration or Termination. All Product licenses, all Maintenance, and Esri User Conference registrations terminate upon expiration or termination of this Agreement. 3.3 Termination for a Material Breach. Either party may terminate this Agreement for a material breach by the other party. The breaching party will have thirty (30) days from the date of written notice to cure any material breach. 3.4 Termination for Lack of Funds. For an Agreement with government or government- Item 1N-8 Page 4 of 6 January 3, 2023 owned entities, either party may terminate this Agreement before any subsequent year if Customer is unable to secure funding through the legislative or governing body's approval process. 3.5 Follow-on Term. If the parties enter into another agreement substantially similar to this Agreement for an additional term, the effective date of the follow-on agreement will be the day after the expiration date of this Agreement. 4.0—PRODUCT UPDATES 4.1 Future Updates. Esri reserves the right to update the list of Products in Table A—List of Products by providing written notice to Customer. Customer may continue to use all Products that have been Deployed, but support and upgrades for deleted items may not be available. As new Products are incorporated into the standard program, they will be offered to Customer via written notice for incorporation into the Products schedule at no additional charge. Customer's use of new or updated Products requires Customer to adhere to applicable additional or revised terms and conditions in the Master Agreement. 4.2 Product Life Cycle. During the Term of Agreement, some Products may be retired or may no longer be available to Deploy in the identified quantities. Maintenance will be subject to the individual Product Life Cycle Support Status and Product Life Cycle Support Policy, which can be found at ********support.esri.com/en/other- resources/product-life-cycle. Updates for Products in the mature and retired phases may not be available. Customer may continue to use Products already Deployed, but Customer will not be able to Deploy retired Products. 5.0—MAINTENANCE The Fee includes standard maintenance benefits during the Term of Agreement as specified in the most current applicable Esri Maintenance and Support Program document (found at ***********.esri.com/en- us/legal/terms/maintenance). At Esri's sole discretion, Esri may make patches, hot fixes, or updates available for download. No Software other than the defined Products will receive Maintenance. Customer may acquire maintenance for other Software outside this Agreement. a.Tier 1 Support 1.Customer will provide Tier 1 Support through the Tier 1 Help Desk to all Customer's authorized users. 2.The Tier 1 Help Desk will be fully trained in the Products. 3.At a minimum, Tier 1 Support will include those activities that assist the user in resolving how-to and operational questions as well as questions on installation and troubleshooting procedures. 4.The Tier 1 Help Desk will be the initial point of contact for all questions and reporting of a Case. The Tier 1 Help Desk will obtain a full description of each reported Case and the system configuration from the user. This may include obtaining any customizations, code samples, or data involved in the Case. 5.If the Tier 1 Help Desk cannot resolve the Case, an authorized Tier 1 Help Desk individual may contact Tier 2 Support. The Tier 1 Help Desk will provide support in such a way as to minimize repeat calls and make solutions to problems available to Customer’s organization. 6.Tier 1 Help Desk individuals are the only individuals authorized to contact Tier 2 Support. Customer may change the Tier 1 Help Desk individuals by written notice to Esri. b.Tier 2 Support 1.Tier 2 Support will log the calls received from Tier 1 Help Desk. 2.Tier 2 Support will review all information collected by and received from the Tier 1 Help Desk including preliminary documented troubleshooting provided by the Tier 1 Help Desk when Tier 2 Support is required. 3.Tier 2 Support may request that Tier 1 Help Desk individuals provide verification of information, additional information, or answers to additional questions to Item 1N-9 Page 5 of 6 January 3, 2023 supplement any preliminary information gathering or troubleshooting performed by Tier 1 Help Desk. 4.Tier 2 Support will attempt to resolve the Case submitted by Tier 1 Help Desk. 5.When the Case is resolved, Tier 2 Support will communicate the information to Tier 1 Help Desk, and Tier 1 Help Desk will disseminate the resolution to the user(s). 6.0—ENDORSEMENT AND PUBLICITY This Agreement will not be construed or interpreted as an exclusive dealings agreement or Customer's endorsement of Products. Either party may publicize the existence of this Agreement. 7.0—ADMINISTRATIVE REQUIREMENTS 7.1 OEM Licenses. Under Esri's OEM or Solution OEM programs, OEM partners are authorized to embed or bundle portions of Esri products and services with their application or service. OEM partners' business model, licensing terms and conditions, and pricing are independent of this Agreement. Customer will not seek any discount from the OEM partner or Esri based on the availability of Products under this Agreement. Customer will not decouple Esri products or services from the OEM partners' application or service. 7.2 Annual Report of Deployments. At each anniversary date and ninety (90) calendar days prior to the expiration of this Agreement, Customer will provide Esri with a written report detailing all Deployments. Upon request, Customer will provide records sufficient to verify the accuracy of the annual report. 8.0—ORDERING, ADMINISTRATIVE PROCEDURES, DELIVERY, AND DEPLOYMENT 8.1 Orders, Delivery, and Deployment a.Upon the Effective Date, Esri will invoice Customer and provide Authorization Codes to activate the nondestructive copy protection program that enables Customer to download, operate, or allow access to the Products. If this is a multi-year Agreement, Esri may invoice the Fee up to thirty (30) calendar days before the annual anniversary date for each year. b.Undisputed invoices will be due and payable within thirty (30) calendar days from the date of invoice. Esri reserves the right to suspend Customer's access to and use of Products if Customer fails to pay any undisputed amount owed on or before its due date. Esri may charge Customer interest at a monthly rate equal to the lesser of one percent (1.0%) per month or the maximum rate permitted by applicable law on any overdue fees plus all expenses of collection for any overdue balance that remains unpaid ten (10) days after Esri has notified Customer of the past-due balance. c.Esri's federal ID number is 95-2775-732. d.If requested, Esri will ship backup media to the ship-to address identified on the Ordering Document, FOB Destination, with shipping charges prepaid. Customer acknowledges that should sales or use taxes become due as a result of any shipments of tangible media, Esri has a right to invoice and Customer will pay any such sales or use tax associated with the receipt of tangible media. 8.2 Order Requirements. Esri does not require Customer to issue a purchase order. Customer may submit a purchase order in accordance with its own process requirements, provided that if Customer issues a purchase order, Customer will submit its initial purchase order on the Effective Date. If this is a multi-year Agreement, Customer will submit subsequent purchase orders to Esri at least thirty (30) calendar days before the annual anniversary date for each year. a.All orders pertaining to this Agreement will be processed through Customer's centralized point of contact. b.The following information will be included in each Ordering Document: (1)Customer name; Esri customer number, if known; and bill-to and ship-to addresses (2)Order number (3)Applicable annual payment due Item 1N-10 Page 6 of 6 January 3, 2023 9.0—MERGERS, ACQUISITIONS, OR DIVESTITURES If Customer is a commercial entity, Customer will notify Esri in writing in the event of (i) a consolidation, merger, or reorganization of Customer with or into another corporation or entity; (ii)Customer's acquisition of another entity; or (iii) a transfer or sale of all or part of Customer's organization (subsections i, ii, and iii, collectively referred to as "Ownership Change"). There will be no decrease in Fee as a result of any Ownership Change. 9.1 If an Ownership Change increases the cumulative program count beyond the maximum level for this Agreement, Esri reserves the right to increase the Fee or terminate this Agreement and the parties will negotiate a new agreement. 9.2 If an Ownership Change results in transfer or sale of a portion of Customer's organization, that portion of Customer's organization will transfer the Products to Customer or uninstall, remove, and destroy all copies of the Products. 9.3 This Agreement may not be assigned to a successor entity as a result of an Ownership Change unless approved by Esri in writing in advance. If the assignment to the new entity is not approved, Customer will require any successor entity to uninstall, remove, and destroy the Products. This Agreement will terminate upon such Ownership Change. Item 1N-11 [This page has intentionally been left blank.] Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Michelle Nance, Deputy City Clerk REQUEST: REQUEST FOR OUT-OF-STATE TRAVEL FOR MAYOR PRO TEM QUINTANILLA TO ATTEND THE 40TH ANNUAL NALEO CONFERENCE JULY 11-13, 2023, IN NEW YORK, NEW YORK RECOMMENDATION: Authorize out-of-state travel for Mayor Pro Tem Quintanilla to attend the 40th annual National Association of Latino Elected and Appointed Officials (NALEO) Conference to be held on July 11-13, 2023, in New York, New York. BACKGROUND/ANALYSIS: Mayor Pro Tem Quintanilla has expressed interest in attending the NALEO annual conference to be held in July 2023. Typically, out-of-state travel requests would be included in the upcoming budget cycle for Fiscal Year 2023/2024. Since the budget will not be considered by the City Council until June 2023, staff is requesting separate consideration of this item to allow sufficient time for appropriate travel arrangements. NALEO Educational Fund provides national leadership on key issues that affect Latino participation in the political process, including immigration and naturalization, voting rights, election reform, the Census and the appointment of qualified Latinos to top executive and judicial positions. It achieves its mission through integrated strategies that include increasing the effectiveness of Latino policymakers, mobilizing the Latino community to engage in civic life and promoting policies that advance Latino political engagement. FINANCIAL IMPACT: The estimated cost for airfare, lodging and per diem expenses is $2,500. Staff received confirmation that registration fees would be paid by NALEO should this request be approved. Remaining expenses will be included in Account No. 1104110-4312000, pending budget approval for Fiscal Year 2023/2024. REVIEWED BY: City Clerk: Anthony Mejia Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman Item 1O-1 [This page has intentionally been left blank.] Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Andrea Staehle, Human Resources Manager Robert Hargreaves, City Attorney REQUEST: APPROVE AMENDMENT NO. 2 TO THE CITY MANAGER’S EMPLOYMENT AGREEMENT EFFECTIVE MARCH 1, 2023 RECOMMENDATION: Approve Amendment No. 2 to the City Manager’s Employment Agreement, with L. Todd Hileman (Exhibit A) effective March 1, 2023. BACKGROUND/ANALYSIS: On February 15, 2023, the City Council held a goal setting and City Manager evaluation session. During the City Manager evaluation session, the City Manager requested an amendment to his contract regarding annual base salary, and the City Council agreed to consider approval of the amendment as a Council item. Discussion: On February 15, 2023, the City Council held a goal setting and City Manager evaluation session. In closed session, the City Manager received an evaluation, and made a request to Council to amend his contract regarding annual base salary. Council agreed to consider the amendment at the next Council meeting following the goal setting and evaluation session. This is the second amendment to the contract. In accordance with the request and Council direction, Amendment No. 2 would increase the annual base salary from $281,133 to $305,000. Other benefits included in the current Agreement are: 1.Vacation Leave Benefits: Accrue two hundred (200) hours of vacation each year. 2.IRS 401a: Add one thousand five hundred dollars ($1,500) per month to the employee’s 401a retirement account. 3.Medical, health, retirement and retiree health benefits provided to other executive management employees. Item 1P-1 City of Palm Desert Approve Amendment No. 2 to the City Manager’s Employment Contract Page 2 of 2 FINANCIAL IMPACT: The contract amendment includes an increase of annual compensation of $23,867. REVIEWED BY: Department Director: Andrea Staehle City Attorney: Robert W. Hargreaves Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman ATTACHMENTS: 1.Exhibit A: City Manager Employment Contract Amendment No. 2 Item 1P-2 CITY MANAGE EMPLOYMENT AGREEMENT AMENDMENT NO. 2 1.Parties and Date. This Amendment No. 2 to the City Manage Employment Agreement is by and between the City of Palm Desert (“City”) and Todd Hileman (“Employee”), and effective March 1, 2023. City and Employee are sometimes individually referred to as “Party” and collectively as “Parties.” 2.Recitals. 2.1 The Parties entered into an agreement entitled City Manager Employment Agreement dated March 1, 2021. 2.2 Effective March 1, 2022, the Parties entered into Amendment No.1 to the City Manager’s Employment Agreement (now collectively “Agreement”) 2.3 Parties now desire to change certain provision of the Agreement as specified below. NOW, THEREFORE, the Parties agree as follows: 3.Terms. 3.A Section 3.1 Salary Section 3.1 of the Agreement is hereby amended to provide that, commencing March 1, 2023, “Annual Base Salary” shall be Three Hundred Five Thousand Dollars ($305,000). 3.B. Except as amended by this Amendment No. 2, all other terms and conditions of the Agreement shall remain unchanged, and shall remain in full force and effect and shall govern the actions of the parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by Amendment No. 1 and this Amendment No.2. Item 1P-3 IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the ____ day of March, 2023. EMPLOYEE L.Todd Hileman, City Manager CITY OF PALM DESERT Kathleen Kelly, Mayor ATTEST: Anthony Mejia, City Clerk APPROVED AS TO FORM: Robert Hargreaves, City Attorney Item 1P-4 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 9, 2023 PREPARED BY: Amy Lawrence, Deputy Director of Economic Development REQUEST: REQUEST FOR DIRECTION ON APPOINTMENT OF A POET LAUREATE RECOMMENDATION: Provide staff with direction on appointment of a Poet Laureate. BACKGROUND/ANALYSIS: City staff was asked to bring forward a request for direction on appointment of a Poet Laureate. Below is information gathered on a Poet Laureate’s purpose, duties, etc. A City Poet Laureate is an honorary position typically created to promote literacy and literature among city residents of all ages. Poets can nominate themselves or be nominated by other city residents through an online application offered by the City. Alternatively, the City Poet Laureate may be a program of the City’s Public Library and managed independently of or in collaboration with the City Council and/or Mayor’s office. Typically, the City Council or Public Library will establish a City Poet Laureate Committee including a representative from the City Council, representative of the library, a representative of the City’s arts committee, and other community members. The City Poet Laureate Committee will review and vet applications/nominations and recommend City Poet Laureate nominees to the City Council or the Librarian at the Public Library. Typical Poet Laureate duties include: −Read poems at ceremonial events, City Council meetings, and other public meetings. −Champion the art of poetry and the spoken word in person and on social media. −Encourage appreciation of the art form and creative expression by a wide range of city residents, including youth. −Celebrate the city’s cultural heritage. −Attend literary and other cultural events in the city, as appropriate. −Give five (5) to ten (10) public readings and workshops that are free and open to the public, including visits to schools and/or events for young people. −Provide updates, as requested. Poet Laureates are usually appointed for two (2) year terms that may be renewable for another two (2) years and they often receive honorariums between $500 - $2,500. If the City Council is interested in the program, staff will return at a later date with a more solidified plan for consideration based on City Council feedback. Item 2A-1 City of Palm Desert March 9, 2023 REQUEST FOR DIRECTION ON APPOINTMENT OF A POET LAUREATE Page 2 of 2 Strategic Plan: The creation of a Poet Laureate position contributes to the Arts and Culture Mini-Vision contained in the Strategic Plan, which states: “Arts and culture give a community its soul. Palm Desert is the cultural core of the Coachella Valley. Cultural tourism drives economic growth in Palm Desert. The community is host to internationally recognized cultural events that bring significant economic benefits to the city. Palm Desert is a leader in arts education, ensuring a well-rounded population that possesses high levels of creativity and critical thinking skills.” FINANCIAL IMPACT: Costs associated with appointment of a Poet Laureate may include an honorarium between $500 - $2,500 for a two (2) year term. Funds may come from the General Fund or potentially Library Pass Thru funds – account number to be determined when the plan is brought back to the City Council for approval. REVIEWED BY: Department Director: Eric Ceja Finance Director: Veronica Chavez Assistant City Manager: Chris Escobedo City Manager: Todd Hileman Item 2A-2