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HomeMy WebLinkAboutAudited Comprehensive Annual Financial Report (CAFR) FYE 06/30/2019STAFF REPORT CITY OF PALM DESERT PALM DESERT HOUSING AUTHORITY FINANCE DEPARTMENT MEETING DATE: February 13, 2020 PREPARED BY: Jose Luis Espinoza, CPA, Assistant Finance Director REQUEST: Receive and file the City of Palm Desert audited financial report for the fiscal year ended June 30, 2019 Recommendation By Minute Motion, that the City Council receive and file the audited Comprehensive Annual Financial Report (CAFR) for the City of Palm Desert for the fiscal year ended June 30, 2019. Strateqic Plan Obiective Not applicable. Committee Recommendation The Audit, Investment and Finance Committee received the City of Palm Desert audited reports at their February 11, 2020 meeting. and recommended that the report be received and filed by the City Council. Backqround Lance, Soll & Lunghard, LLP performed and completed the annual independent audit for the fiscal year ended June 30, 2019, for the City of Palm Desert, which includes the Palm Desert Housing Authority, in accordance with generally accepted auditing standards. In the auditor's opinion. the basic financial statements present fairly, in all material respects, the financial position of the City of Palm Desert as of June 30, 2019, and the results of its operations and the cash flows of its proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. In conducting their audit, the auditors test the City's internal controls. Attached is the Report on Internal Controls over Financial Reporting and on compliance and other matters based on an audit of Financial Statements performed in accordance with Government Auditina Standards. The CAFR was submitted for the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement G \Finance\Jessika Peltz\Staff Reports\Audit Staff Reports 2019\SR - Council audit 2019 CAFR.docx Staff Report Receive and file CAFR for Fiscal Year ended June 30, 2019 February 13, 2020 Page 2of2 Program's requirements, as it has for the past 22 years. For the City's General Fund, the actual ending revenues of $65.66 million were $0.35 million more than the final budgeted revenues of $65.31 million. Sales and transient occupancy taxes continue to be the top two revenue generators for the City totaling $38.69 million, or 58.92 percent of the total General Fund actual revenues. The General Fund actual ending expenditures of $62.98 million were $2.02 million less than the final budget of $65.00 million. Staff requests that the City Council receive and file the audited financial statements for the fiscal year ended June 30, 2019. Fiscal Analysis There is no fiscal impact associated with this action. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW N/A t Robert W. Hargreaves et M. Moore J net M. Moore City Attorney Director of Finance Director of Finance City Manager Lauri Aylaian: ASSISTANT CITY MANAGER N/A Andy Firestine Assistant City Manager ATTACHMENTS: 1. City of Palm Desert audited financial report for fiscal year ended June 30, 2019. (Comprehensive Annual Financial Report) 2. Auditor's letter to City Council 3. Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance -and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditinq Standards 4. Appropriations Limit Worksheet no. 6 CITY COUNCILACTION J L E:j p APPROVED Lac V� Vid RECEIVED d-„ 0_1e4 OTHER c �provea.... BY HOUSGAM ON.__. O�_..13,- a G� f) AMEYEE5YG, S VERIFIED �Y, DiK Sr NOES, fti ffnP. ABSENT: N C)rjglrr6a! on A@ wdh Qty (;I@Wg ._ ABSTAINS N0 „ VERIFIED BY• Original on File witL City Cler&'s fl ice oGF G:\Finance\Jessika Peltz\Staff Reports\Audit Staff Reports 2019\SR'= C`ncil"a'udif 20'1'9`CAFR`.dodiE=� LSI.:Io��� December 20, 2019 To the Honorable Mayor and Members of the City Council City of Palm Desert, California We have audited the financial statements of the governmental activities, the business -type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Palm Desert, California (the City) for the year ended June 30, 2019. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 20, 2019. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during fiscal year 2018-2019. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period] We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the City's financial statements was: Management's estimates of its net pension liability and net other postemployment benefits liability based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability and net other postemployment benefits liability in determining that they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. J primeGlobal LS L"so .. *::: To the Honorable Mayor and Members of the City Council City of Palm Desert, California Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. No misstatements were found. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 20, 2019. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to management discussion and analysis, budgetary comparison schedule for the General Fund and major special revenue funds as listed in the table of contents, schedule of changes in net pension liability and related ratios, schedule of plan contributions - Pension, schedule of changes in net OPEB Liability and related ratios, and schedules of contributions — OPEB, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining statements and individual fund statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared LSL•••• .. To the Honorable Mayor and Members of the City Council City of Palm Desert, California and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on introductory or statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. New Accounting Standards The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2018-2019 audit: GASB Statement No. 83, Certain Assets Retirement Obligations. GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and Direct Placements. The following Governmental Accounting Standards Board (GASB) pronouncements are effective in the following fiscal year audit and should be reviewed for proper implementation by management: Fiscal year 2019-2020 GASB Statement No. 84, Fiduciary Activities. GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14 and 61. Fiscal year 2020-2021 GASB Statement No. 87, Leases. GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. Fiscal year 2021-2022 GASB Statement No. 91, Conduit Debt Obligations. Restriction on Use This information is intended solely for the use of Council and management of the City of Palm Desert and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, '*41 st--440o6 Brea, California LS129�:: INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Palm Desert, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Palm Desert, California (the City), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 20, 2019. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. PrimeGlobal LSU*::: To the Honorable Mayor and Members of the City Council City of Palm Desert, California Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Brea, California December 20, 2019 LSL:o�:: INDEPENDENT ACCOUNTANTS' REPORT ON AGREED -UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS To the Honorable Mayor and Members of the City Council City of Palm Desert We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the City of Palm Desert, California, for the year ended June 30, 2019. These procedures, which were agreed to by the City of Palm Desert and the League of California Cities (as presented in the publication entitled Agreed -Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist the City of Palm Desert in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City of Palm Desert's management is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation). This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows 1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Worksheet No. 6, we multiplied line A, last year's limit, by line D, ratio of change, and agreed the resulting amount to line E, this year's limit. Finding: No exceptions were noted as a result of our procedures. 3. We compared the current year information presented in the accompanying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above. Finding: No exceptions were noted as a result of our procedures. 4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year. Finding: No exceptions were noted as a result of our procedures. PrimeGlobal LSL'*D::: To the Honorable Mayor and Members of the City Council City of Palm Desert, California We were not engaged to and did not perform an audit, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines. This report is intended solely for the use of the City of Palm Desert, California and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. 0;;�' *� pr-Po,A Brea, California April 29, 2019 CITY OF PALM DESERT 2018-2019 APPROPRIATIONS LIMIT CALCULATION A. 2017-2018 APPROPRIATIONS LIMIT: $ 125,368,032 B. 2018-2019 CHANGE IN PER CAPITA PERSONAL INCOME 3.67% C. 2018-2019 CHANGE IN POPULATION: 1.40% D. RATIO OF CHANGE (1.0367 X 1.0140): X 1.0512138 E. 2018-2019 APPROPRIATIONS LIMIT: $ 131,788,605 ($125,368,032 X 1.0512138) CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING MITIGATION FEE YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,858,798 $ 2,858,798 $ 2,858,798 $ - Resources (Inflows): Taxes 145,500 145,500 113,651 (31,849) Investment earnings 25,000 25,000 82,608 57,608 Amounts Available for Appropriations 3,029,298 3,029,298 3,055,057 25,759 Charges to Appropriation (Outflow): Housing and redevelopment 310,000 310,000 28,411 281,589 Total Charges to Appropriations 310,000 310,000 28,411 281,589 Budgetary Fund Balance, June 30 $ 2,719,298 $ 2,719,298 $ 3,026,646 $ 307,348 129 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables. Accounts Interest Allowance for interest on Successor Agency Prepaid costs Due from other funds Restricted assets: Cash and investments with fiscal agents Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES: Nonspendable: Prepaid costs Restricted for: Capital Projects Special programs Assigned to: Capital projects Property acquisition Public facilities Special programs Street related purposes TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES CFD University Total Other Special Capital Projects Assessment Assessment 29 Funds $ $ 670 $ 15.755,111 - 100 11,961 2,631, 330 - (972,060) 4,600 - 500,000 1,859.938 2,045,860 - 12, 765, 000 - - (4.765,000) $ 1,871,899 $ 670 $ 27,964,941 $ $ $ 125.854 63,041 24,000 1,600,000 1,812,895 1,632,000 1,632,000 - - 4,600 1,871,899 670 2,059,480 - - 1.217.695 8,893,084 420,387 9.117,365 670.576 2,136, 859 1,871,899 670 24,520,046 $ 1,871,899 $ 670 $ 27,964.941 151 �iY�I•I��_l�,',�■7��� it COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019 REVENUES: Licenses and permits Intergovernmental revenues Investment earnings Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Public safety Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) SPECIAL ITEM (NOTE 21) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Capital Projects Drainage Reserve Facilities 72,759 56,872 72,759 56,872 Parks and Economic Recreational Development Facilities 102,854 19,711 2,215 122,565 2,215 400,000 203,056 6,848 - - 63,073 - 27,265 653 83,365 - 106, 925 - 577,499 83,365 203,056 27,265 (504,740) (26,493) (80,491) (25,050) 800,000 800,000 (3,812,000) 295,260 (26,493) (80,491) (3,837,050) 9,018,211 2,056,805 737,119 3,897,380 $ 9,313,471 $ 2,030,312 $ 656,628 $ 60,330 152 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019 REVENUES: Licenses and permits Intergovernmental revenues Investment earnings Miscellaneous TOTAL REVENUES EXPENDITURES: Current. General government Public safety Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) SPECIAL ITEM (NOTE 21) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR (CONTINUED) Art in Public Places Signalization Capital Golf Buildings $ 212,177 $ $ $ 38,898 2,938 128,720 88,198 4,676 - 2,388,681 - 255,751 2,938 2,517,401 88,198 188,265 - - 48,781 246,090 657,435 24.522 - - 47,873 15,000 16,000 261,090 - 657,435 325,441 (5,339) 2,938 1,859,966 (237,243) (156,244) (156,244) - (161,583) 2,938 1.859,966 (237.243) 1,383,878 103,609 3,502,886 3,274,798 $ 1,222,295 $ 106,547 $ 5,362,852 $ 3,037,555 153 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019 REVENUES: Licenses and permits I ntergovem mental revenues Investment earnings Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Public safety Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) SPECIAL ITEM (NOTE 21) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR Assessment District No. 94- Silver Spur Highlands Library 3 Merano Ranch Undergrounding 3,321 3,960 14 3,321 3,960 14 3,321 3,960 14 3,321 3,960 14 - 667,255 182,312 604 21 $ 670,576 $ 186,272 $ 618 $ 21 154 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019 CFD University Special Total Other Assessment Assessment Capital Projects District 29 Fund REVENUES: Licenses and permits $ $ $ 212,177 Intergovernmental revenues 102,854 Investment earnings 51,619 15 469,240 Miscellaneous - - 2,393,357 TOTAL REVENUES 51,619 15 3,177,628 EXPENDITURES: Current. General government - - 791,321 Public safety 55,629 Parks, recreation and culture - 1.018.385 Public works 26,766 158,657 Capital outlay - 137,925 TOTAL EXPENDITURES 26,766 - 2,161,917 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 24,853 15 1,015,711 OTHER FINANCING SOURCES (USES) Transfers in - - 800.000 Transfers out (156.244) TOTAL OTHER FINANCING SOURCES (USES) 643,756 SPECIAL ITEM (NOTE 21) - (3,812,000) NET CHANGE IN FUND BALANCES 24,853 15 (2,152,533) FUND BALANCES - BEGINNING OF YEAR 1,847,046 655 26,672,579 FUND BALANCES - END OF YEAR $ 1,871,899 $ 670 $ 24,520,046 155 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL PROPERTIES YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Parks and recreation Public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 68,754,748 $ 68,754,748 300,100 300,100 69,054,848 69,064,848 - 250,000 5,850,000 28,654,133 5,850,000 28,904,133 $ 63,204,848 $ 40,150,715 Variance with Final Budget Actual Positive Amounts (Negative) $ 68,754,748 $ - 1,267,229 967,129 70,021,977 967,129 2,000 (2,000) - 250,000 912,833 27,741,300 36,405 (36,405) 951,238 27,952,895 $ 69,070,739 $ 28,920,024 156 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS RESERVE YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Investment earnings Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Public safety Parks, recreation and culture Public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 9,018,211 $ 9,018,211 1,912,000 1,912,000 14,000 14,000 200,000 200,000 11,144,211 11,144,211 400,000 400,000 - 75,000 475,000 475,000 100,000 1,111,701 50,000 1,963,119 1,025,000 4,024,820 $ 10,119,211 $ 7,119,391 Variance with Final Budget Actual Positive Amounts (Negative) $ 9,018,211 $ - (1,912,000) 72,759 58,759 800,000 600,000 9,890,970 (1,253,241) 400,000 - 6,848 68,152 63,073 411,927 653 1,111,048 106,925 1,856,194 577,499 3,447,321 $ 9,313,471 $ 2,194,080 157 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE DRAINAGE FACILITIES YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 2,056,805 $ 2,056,805 6,000 6,000 2,062,805 2,062,805 - 474,411 23,000 33,000 23,000 607,411 $ 2,039,805 $ 1,555,394 Variance with Final Budget Actual Positive Amounts (Negative) $ 2,056,805 $ - 56,872 50,872 2,113,677 50,872 83,365 391,046 - 33,000 83,365 424,046 $ 2,030,312 $ 474,918 158 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ECONOMIC DEVELOPMENT YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 737,119 $ 737,119 3,000 740,119 464,000 464,000 $ 276,119 3,000 740,119 464,000 464,000 $ 276,119 Actual Amounts $ 737,119 102,854 19,711 859,684 203,056 203,056 $ 656,628 Variance with Final Budget Positive (Negative) 102,854 16,711 119,565 260,944 260,944 $ 380,509 159 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATIONAL FACILITIES YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Parks, recreation and culture Special item Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 3,897,380 $ 3,897,380 200 200 3,897,580 3,897,580 20,000 27,300 - 3,812,000 20,000 3,839,300 $ 3,877,580 $ 58,280 Variance with Final Budget Actual Positive Amounts (Negative) $ 3,897,380 $ - 2,215 2,015 3,899,595 2,015 27,265 35 3,812,000 - 3,839,265 35 $ 60,330 $ 2,050 160 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ART IN PUBLIC PLACES YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Licenses and permits Investment earnings Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Parks, recreation and culture Capital outlay Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 1,383,878 $ 1,383,878 132,000 132,000 10,000 10,000 1,525,878 1,525,878 221,700 230,700 56,000 56,000 200,000 200,000 477,700 486,700 $ 1,048,178 $ 1,039,178 Variance with Final Budget Actual Positive Amounts (Negative) $ 1,383,878 $ - 212,177 80,177 38,898 28,898 4,676 4,676 1,639,629 113,751 246,090 (15,390) 15,000 41,000 156,244 43,756 417,334 69,366 $ 1,222,295 $ 183,117 161 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE SIGNALIZATION YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 103,609 $ 103,609 300 300 103,909 103,909 - 35,000 - 35,000 $ 103,909 $ 68,909 Variance with Final Budget Actual Positive Amounts (Negative) $ 103,609 $ - 2,938 2,638 106,547 2,638 35,000 - 35,000 $ 106,547 $ 37,638 162 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL GOLF YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Investment earnings Miscellaneous Amounts Available for Appropriations Charges to Appropriation (Outflow): Parks, recreation and culture Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 3,502,886 $ 3,502,886 $ 3,502,886 $ - 35,000 35,000 128,720 93,720 2,102,020 2,102,020 2,388,681 286,661 5,639,906 5,639,906 6,020,287 380,381 837,961 844,737 657,435 187,302 1,200,000 - - - 2,037,961 844,737 657,435 187,302 $ 3,601,945 $ 4,795,169 $ 5,362,852 $ 567,683 163 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BUILDINGS YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Public safety Parks, recreation and culture Public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 3,274,798 $ 3,274,798 20,000 20,000 3,294,798 3,294,798 549,100 1,059,661 80,000 195,288 200,000 200,000 35,000 35,000 864,100 1,489,949 $ 2,430,698 $ 1,804,849 Variance with Final Budget Actual Positive Amounts (Negative) $ 3,274,798 $ - 88,198 68,198 3,362,996 68,198 188,265 871,396 48,781 146,507 24,522 175,478 47,873 (12,873) 16,000 (16,000) 325,441 1,164,508 $ 3,037,555 $ 1,232,706 164 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CFD UNIVERSITY SPECIAL ASSESSMENT DISTRICT YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,847,046 $ 1,847,046 $ 1,847,046 $ - Resources (Inflows): Investment earnings - - 51,619 51,619 Amounts Available for Appropriations 1,847,046 1,847,046 1,898,665 51,619 Charges to Appropriation (Outflow): Public works - 27,000 26,766 234 Total Charges to Appropriations - 27,000 26,766 234 Budgetary Fund Balance, June 30 $ 1,847,046 $ 1,820,046 $ 1,871,899 $ 51,853 165 THIS PAGE INTENTIONALLY LEFT BLANK 166 OTHER GOVERNMENTAL FUNDS — DEBT SERVICE FUND Citv Highlands Undergroundina Fund — This fund is used to account for the resources and payment for debt related to Highlands Undergrounding. 167 CITY OF PALM DESERT BALANCE SHEET OTHER DEBT SERVICE FUND JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Assessments Due from other governments TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES: LIABILITIES: Deposits payable TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES: Unavailable revenues TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES: Restricted for: Debt service TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES City Highland Total Other Debt Undergrounding Service Fund $ 176,872 $ 176,872 1,172, 053 1,172, 053 4,896 4,896 $ 1,353,821 $ 1,353,821 $ 109,526 $ 109,526 109,526 109,526 1,172,053 1,172, 053 1,172,053 1,172,053 72,242 72,242 72,242 72,242 $ 1,353,821 $ 1,353,821 168 CITY OF PALM DESERT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER DEBT SERVICE FUND YEAR ENDED JUNE 30, 2019 City Total Other Highlands Debt Service Undergrounding Fund REVENUES: Special assessments collected $ 114,222 $ 114,222 Investment earnings 4,375 4,375 TOTAL REVENUES 118,597 118,597 EXPENDITURES: Current: General government 10,828 10,828 Debt service: Principal retirement 58,000 58,000 Interest and fiscal charges 68,895 68,895 TOTAL EXPENDITURES 137,723 137,723 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (19,126) (19,126) FUND BALANCES - BEGINNING OF YEAR 91,368 91,368 FUND BALANCES - END OF YEAR $ 72,242 $ 72,242 169 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CITY HIGHLAND UNDERGROUNDING YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 91,368 $ 91,368 $ 91,368 $ - Resources (Inflows): Assessments 131,453 131,453 114,222 (17,231) Investment earnings 600 600 4,375 3,775 Amounts Available for Appropriations 223,421 223,421 209,965 (13,456) Charges to Appropriation (Outflow): General government 17,800 17,800 10,828 6,972 Debt service: Principal retirement 44,000 58,000 58,000 - Interest and fiscal charges 68,896 68,896 68,895 1 Total Charges to Appropriations 130,696 144,696 137,723 6,973 Budgetary Fund Balance, June 30 $ 92,725 $ 78,725 $ 72,242 $ (6,483) 170 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for services provided to other departments or agencies of the City on a cost reimbursement basis. Eauipment Replacement — This fund is used to account for financial transactions related to replacement of City -owned vehicles and equipment. Compensation Benefits Fund — This fund is used to account for funding of compensated absences. 171 CITY OF PALM DESERT COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2019 Equipment Compensation Replacement Benefits Total ASSETS: CURRENT ASSETS: Cash and investments $ 8,685,778 $ 2,729,162 $ 11,414,940 Prepaid costs 25,118 - 25,118 Due from other governments 25,000 - 25,000 TOTAL CURRENT ASSETS 8,735,896 2,729,162 11,465,058 CAPITAL ASSETS: Nondepreciable 32,414 - 32,414 Depreciable, net 1,914,679 1,914,679 CAPITAL ASSETS, NET 1,947,093 - 1,947,093 TOTAL ASSETS 10,682,989 2,729,162 13,412,151 LIABILITIES: CURRENT LIABILITIES: Accounts payable 14,340 - 14,340 Compensated absences - 300,000 300,000 TOTAL CURRENT LIABILITIES 14,340 300,000 314,340 NONCURRENT LIABILITIES: Compensated absences - 2,328,215 2,328,215 TOTAL NONCURRENT LIABILITIES: - 2,328,215 2,328,215 TOTAL LIABILITIES 14,340 2,628,215 2,642,555 NET POSITION: Invested in capital assets 1,947,093 - 1,947,093 Unrestricted 8,721,556 100,947 8,822,503 TOTAL NET POSITION $ 10,668,649 $ 100,947 $ 10,769,596 172 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2019 OPERATING EXPENSES: General and administrative Maintenance and operations Depreciation and amortization TOTAL OPERATING EXPENSES OPERATING LOSS NONOPERATING REVENUES: Intergovernmental Interest revenue Gain on disposal of capital assets TOTAL NONOPERATING REVENUES LOSS BEFORE TRANSFERS TRANSFERSIN CHANGE IN NET POSITION NET POSITION - BEGINNING OF YEAR NET POSITION - END OF YEAR Equipment Compensation Replacement Benefits Total $ - $ 272,430 $ 272,430 349,788 - 349,788 469,027 - 469,027 818,815 272,430 1,091,245 (818,815) (272,430) (1,091,245) 25,000 - 25,000 228,902 68,762 297,664 7,452 - 7,452 261,354 68,762 330,116 (557,461) (203,668) (761,129) 467,110 250,000 717,110 (90, 351) 46,332 (44, 019) 10,759,000 54,615 10,813,615 $ 10,668,649 $ 100,947 $ 10,769,596 173 CITY OF PALM DESERT COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Payments to suppliers Cash paid to employees for services NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Cash received from other funds NET CASH PROVIDED (USED) BY NONCAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchases of capital assets Proceeds from sales of assets NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends NET CASH PROVIDED BY INVESTING ACTIVITIES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR CASH AND CASH EQUIVALENTS - END OF YEAR RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating loss to net cash provided (used) by operating activities: Depreciation and amortization (Increase) decrease in due from other governments (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Increase (decrease) in compensated absences Total Adjustments NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Equipment Compensation Replacement Benefits Total $ (398,047) $ - $ (398,047) (30,987) (30,987) (398,047) (30,987) (429,034) 467,110 250.000 717,110 467,110 250,000 717,110 (269.179) - (269,179) 40,009 40,009 (229,170) - (229,170) 228,902 68,762 297,664 228,902 68,762 297,664 68,795 287,775 356,570 8,616,983 2,441,387 11,058,370 $ 8,685,778 $ 2,729,162 $ 11,414,940 $ (818,815) $ (272,430) $ (1,091,245) 469,027 469,027 (25,000) (25,000) 11,831 11,831 (35,090) - (35,090) - 241,443 241,443 420,768 241,443 662,211 $ (398,047) $ (30,987) $ (429,034) 174 AGENCYFUNDS Agency Funds are used to account for assets held by the city as an agent for individuals, private organizations, other governments and/or funds. Aaencv Fund - This fund is used to account for deposits placed with the City by developers, individuals and groups to obtain future services. Deposits are reduced by disbursements and/or refunds to the depositors when the cost of services is determined. Treasurers 1911 Bond Act - This fund is used to account for the assets held on behalf of the assessment district's property owners until they are remitted to the bondholders. Retiree Service Stipend Fund - This fund is used to account for assets held to pay for the retiree service stipend. Special Assessment Funds - These funds are used to account for the collection of special assessments and the future payment of debt service related to bonds issued. 175 THIS PAGE INTENTIONALLY LEFT BLANK 176 CITY OF PALM DESERT COMBINING STATEMENT OF ASSETS AND LIABILITIES ALL AGENCY FUNDS JUNE 30, 2019 Assets: Pooled cash and investments Receivables: Assessments Accrued interest Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities: Deposits payable Total Liabilities Retiree Special Treasurers Service Assessment Agency 1991 Bond Act Stipend Fund Funds Totals $ 1,933.099 $ 268,804 $ 2,853,798 $ 7,917,890 $ 12,973,591 - - - 52,002,794 52,002,794 - 20,615 20.615 37,963 52,417 90,380 - - - 4,722,788 4,722,788 $ 1,971,062 $ 268,804 $ 2,853,798 $ 64,716,504 $ 69,810,168 $ 1,971,062 $ 268,804 $ 2,853,798 $ 64,716,504 $ 69,810,168 $ 1,971,062 $ 268,804 $ 2,853,798 $ 64,716,504 $ 69,810,168 177 CITY OF PALM DESERT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2019 AGENCY ASSETS: Pooled cash and investments Receivables: Accounts Due from other governments TOTAL ASSETS LIABILITIES: Deposits TOTAL LIABILITIES TREASURERS 1911 BOND ACT ASSETS: Pooled cash and investments TOTAL ASSETS LIABILITIES: Deposits payable TOTAL LIABILITIES RETIREE SERVICES STIPEND FUND ASSETS: Pooled cash and investments TOTAL ASSETS LIABILITIES: Deposits payable TOTAL LIABILITIES Balance July 1, 2018 Additions Deductions $ 1,948,057 $ 3.202,155 $ 3,217,113 $ 1,875 1,525 3,400 47,008 48,427 57,472 $ 1,996,940 $ 3,252,107 $ 3,277,985 $ $ 1,996,940 $ 3,252,107 $ 3,277,985 $ $ 1,996,940 $ 3,252,107 $ 3,277,985 $ Balance June 30, 2019 1,933,099 37,963 1,971,062 1,971.062 1,971,062 $ 268,804 $ $ $ 268,804 $ 268,804 $ - $ $ 268,804 $ 268,804 $ $ $ 268,804 $ 268,804 $ $ - $ 268,804 $ 1,325,341 $ 3,742,556 $ 2,214,099 $ 2,853,798 $ 1,325,341 $ 3,742,556 $ 2,214,099 $ 2,853,798 $ 1,325,341 $ 3,742,556 $ 2,214,099 $ 2,853,798 $ 1,325,341 $ 3,742,556 $ 2,214,099 $ 2,853,798 178 CITY OF PALM DESERT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2019 SPECIAL ASSESSMENT FUNDS ASSETS: Pooled cash and investments Receivables: Assessments Accrued interest Due from other governments Restricted assets: Cash and investments with fiscal agents TOTAL ASSETS LIABILITIES: Deposits payable TOTAL LIABILITIES TOTAL - ALL AGENCY FUNDS ASSETS: Pooled cash and investments Receivables: Accounts Assessments Accrued interest Due from other governments Restricted assets: Cash and investments with fiscal agents TOTAL ASSETS LIABILITIES: Deposits payable TOTAL LIABILITIES Balance Balance July 1, 2018 Additions Deductions June 30, 2019 $ 7,825,196 $ 5,086,190 $ 4.993,496 $ 7,917,890 53,894,172 - 1,891,378 52,002,794 15,197 23,099 17,681 20,615 22,460 52,417 22,460 52,417 4,682,972 122,431 82,615 4,722,788 $ 66,439,997 $ 5,284,137 $ 7,007,630 $ 64,716,504 $ 66,439,997 $ 5,284,137 $ 7,007,630 $ 64,716,504 $ 66,439,997 $ 5,284,137 $ 7,007,630 $ 64,716,504 $ 11,367,398 $ 12,030,901 $ 10,424,708 $ 12,973,591 1,875 1,525 3,400 - 53,894,172 - 1,891,378 52,002,794 15,197 23,099 17,681 20,615 69,468 100,844 79,932 90,380 4,682,972 122,431 82,615 4,722,788 $ 70,031,082 $ 12,278,800 $ 12,499,714 $ 69,810,168 $ 70,031,082 $ 12,278,800 $ 12,499,714 $ 69.810,168 $ 70,031,082 $ 12,278,800 $ 12,499,714 $ 69,810,168 179 THIS PAGE INTENTIONALLY LEFT BLANK 180 DESCRIPTION OF STATISTICAL SECTION CONTENTS June 30, 2019 This part of the City of Palm Desert's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the city's overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source. Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it preforms. Sources: Unless otherwise noted, the information in theses schedules is derived from the comprehensive annual financial reports for the relevant year, The City implemented GASB Statement 34 in 2001; schedules presenting government -wide information include information beginning in that year. 181 THIS PAGE INTENTIONALLY LEFT BLANK 182 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 31,510 $ 31,510 $ 31,510 $ - Resources (Inflows): Intergovernmental 325,000 325,000 311,059 (13,941) Investment earnings - - 433 433 Miscellaneous - - 7,374 7,374 Amounts Available for Appropriations 356,510 356,510 350,376 (6,134) Charges to Appropriation (Outflow): General government 325,000 402,890 311,059 91,831 Total Charges to Appropriations 325,000 402,890 311,059 91,831 Budgetary Fund Balance, June 30 $ 31,510 $ (46,380) $ 39,317 $ 85,697 130 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CHILD CARE PROGRAM YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $1,332,828 $ 1,332,828 $ 1,332,828 $ - 116,000 116,000 25,499 (90,501) 10,000 10,000 38,272 28,272 1,458,828 1,458,828 1,396,599 (62,229) 195,560 1,275,000 - 1,275,000 195,560 1,275,000 - 1,275,000 $1,263,268 $ 183,828 $ 1,396,599 $ 1,212,771 131 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PUBLIC SAFETY POLICE GRANTS YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 8,380 $ 8,380 $ 8,380 $ - 100,000 100,000 181,083 81,083 - - 2,428 2,428 108,380 108,380 191,891 83,511 100,000 183,352 94,698 88,654 - - 86,385 (86,385) 100,000 183,352 181,083 2,269 $ 8,380 $ (74,972) $ 10,808 $ 85,780 132 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE NEW CONSTRUCTION TAX YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Special item Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $1,656,520 $ 1,656,520 $ 1,656,520 $ - 239,000 239,000 174,981 (64,019) 10,000 10,000 34,415 24,415 1,906,520 1,905,520 1,865,916 (39,604) - 523,200 523,200 - - 523,200 523,200 - $1,905,520 $ 1,382,320 $ 1,342,716 $ (39,604) 133 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PLANNED DRAINAGE YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Intergovernmental Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $1,592,857 $ 1,592,857 50,000 50,000 450,000 450,000 10,000 10,000 2,102,857 2,102,857 - 1,530,676 1,500,000 1,606,643 1,600,000 3,137,319 $ 602,857 $ (1,034,462) Variance with Final Budget Actual Positive Amounts (Negative) $ 1,592,857 $ - 38,855 (11,145) - (450,000) 44,607 34,607 1,676,319 (426,538) 53,020 1,477,656 5,643 1,601, 000 58,663 3,078,656 $ 1,617,656 $ 2,652,118 134 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATIONAL FACILITIES YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,416,407 $ 1,416,407 $ 1,416,407 $ - Resources (Inflows): Taxes 300,000 300,000 247,187 (52,813) Investment earnings 10,000 10,000 44,722 34,722 Amounts Available for Appropriations 1,726,407 1,726,407 1,708,316 (18,091) Charges to Appropriation (Outflow): Public works - 155,060 - 155,060 Capital outlay 100,000 350,000 45,862 304,138 Total Charges to Appropriations 100,000 505,060 45,862 459,198 Budgetary Fund Balance, June 30 $1,626,407 $ 1,221,347 $ 1,662,454 $ 441,107 135 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE TRAFFIC SIGNALS YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 410,318 $ 410,318 $ 410,318 $ - 30,000 30,000 91,274 61,274 1,000 1,000 12,501 11,501 441,318 441,318 514,093 72,775 - - 17,915 (17,915) 25,000 224,220 - 224,220 25,000 224,220 17,915 206,305 $ 416,318 $ 217,098 $ 496,178 $ 279,080 136 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE FIRE FACILITIES RESTORATION YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $1,108,171 $ 1,108,171 $ 1,108,171 $ - 94,500 94,500 13,655 (80,845) 9,000 9,000 31,653 22,653 1,211,671 1,211,671 1,153,479 (58,192) 75,000 1,075,171 - 1,075,171 75,000 1,075,171 - 1,075,171 $1,136,671 $ 136,500 $ 1,153,479 $ 1,016,979 137 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE RECYCLING YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $2,494,126 $ 2,494,126 $ 2,494,126 $ - Resources (Inflows): Intergovernmental - - 12,149 12,149 Charges for services 115,000 115,000 428,418 313,418 Investment earnings 15,000 15,000 70,802 55,802 Miscellaneous - - 285 285 Amounts Available for Appropriations 2,624,126 2,624,126 3,005,780 381,654 Charges to Appropriation (Outflow): General government 494,875 542,925 190,084 352,841 Parks, recreation and culture 30,000 30,000 23,804 6,196 Public works 140,000 272,000 36,514 235,486 Capital outlay 185,000 205,000 105,475 99,525 Transfers out - - 24,289 (24,289) Total Charges to Appropriations 849,875 1,049,925 380,166 669,759 Budgetary Fund Balance, June 30 $1,774,251 $ 1,674,201 $ 2,625,614 $ 1,051,413 138 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ENERGY INDEPENDENCE LOAN YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Debt service: Principal retirement Interest and fiscal charges Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $2,741,897 $ 2,741,897 225,000 225,000 2,966,897 2,966,897 15,000 15,000 107,000 510,000 185,320 185,320 307,320 710,320 $ 2,659,577 $ 2,256,577 Variance with Final Budget Actual Positive Amounts (Negative) $ 2,741,897 $ - 205,476 (19,524) 2,947,373 (19,524) 5,490 9,510 529,000 (19,000) 175,155 10,165 709,645 675 $ 2,237,728 $ (18,849) 139 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE AIR QUALITY MANAGEMENT YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Intergovernmental Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Total Charges to Appropriations Budget Amounts Original Final $ 127,342 $ 127,342 64,000 64,000 300 300 191,642 191,642 105,500 105,500 105,500 105,500 Variance with Final Budget Actual Positive Amounts (Negative) $ 127,342 $ - 68,444 4,444 3,629 3,329 199,415 7,773 61,773 43,727 61,773 43,727 Budgetary Fund Balance, June 30 $ 86,142 $ 86,142 $ 137,642 $ 51,500 140 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE AQUATIC CENTER YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Charges for services Investment earnings Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Parks, recreation and culture Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,134,436 $ 2,134,436 $ 2,134,436 $ - 795,550 795,550 793,602 (1,948) 7,000 7,000 35,955 28,955 710,750 710,750 709,937 (813) 3,647,736 3,647,736 3,673,930 26,194 1,513,300 1,553,300 1,539,494 13,806 1,513,300 1,553,300 1,539,494 13,806 $ 2,134,436 $ 2,094,436 $ 2,134,436 $ 40,000 141 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CANNABIS COMPLIANCE YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Taxes Charges for services Investment earnings Amounts Available for Appropriations Charges to Appropriation (Outflow): Public safety Transfers out Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final $ 86,250 $ 86,250 50,000 136,250 50,000 50,000 $ 86,250 50,000 136,250 50,000 450,000 500,000 $ (363,750) Actual Amounts $ 86,250 789,950 2,968 879,168 2,688 450,025 452,713 $ 426,455 Variance with Final Budget Positive (Negative) 789,950 (50,000) 2,968 742,918 47,312 (25) 47,287 $ 790,205 142 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE EL PASEO ASSESSMENT DISTRICT YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Assessments Use of money and property Amounts Available for Appropriations Charges to Appropriation (Outflow): General government Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 64,836 $ 64,836 $ 64,836 $ - 250,000 250,000 251,258 1,258 - - 1,883 1,883 314,836 314,836 317,977 3,141 250,000 257,500 247,795 9,705 250,000 257,500 247,795 9,705 $ 64,836 $ 57,336 $ 70,182 $ 12,846 143 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE LANDSCAPE AND LIGHTING DISTRICTS NOS 1 -17 YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Assessments Investment earnings Miscellaneous Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Public works Total Charges to Appropriations Budgetary Fund Balance, June 30 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 3,242,212 $ 3,242,212 $ 3,242,212 $ - 850,007 850,007 852,275 2,268 7,800 7,800 74,199 66,399 - - 530 530 100,000 100,000 93,611 56,389) 4,200,019 4,200,019 4,262,827 62,808 892,928 898,029 694,815 203,214 892,928 898,029 694,815 203,214 $ 3,307,091 $ 3,301,990 $ 3,568,012 $ 266,022 144 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE FORMER RDA LOW INCOME HOUSING YEAR ENDED JUNE 30, 2019 Budgetary Fund Balance, July 1 Resources (Inflows): Transfers in Amounts Available for Appropriations Charges to Appropriation (Outflow): Housing and redevelopment Capital outlay Total Charges to Appropriations Budgetary Fund Balance, June 30 Budget Amounts Original Final 544,170 544,170 543,170 1,000 544,170 Variance with Final Budget Actual Positive Amounts (Negative) 544,170 478,698 (65,472) 544,170 478,698 (65,472) 502,170 478,698 23,472 1,000 - 1,000 503,170 478,698 24,472 41,000 $ - $ (41,000) 145 THIS PAGE INTENTIONALLY LEFT BLANK 146 OTHER GOVERNMENTAL FUNDS - CAPITAL PROJECTS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities, except for those financed by certain Special Revenue and Enterprise funds. Capital Proiects Reserve - This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and development of public facilities, infrastructure and equipment. Drainaqe Facilities Fund - This fund is used to account for resources and expenditures for planned capital improvement projects that are under the Master Drainage Plan. Economic Development - This fund is used to account for fagade enhancement projects for Palm Desert businesses utilizing funds from the sales of certain City -owned properties. Parks and Recreational Facilities Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to park development, maintenance and equipment. Art in Public Places Fund - This fund is used to account for fees collected from residential, commercial and public facilities development except for street and drainage projects. Its use is restricted for acquisition, installation, improvement and maintenance of artwork to be displayed in the City, the administration of the program and community public art education programs. Siqnalization Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and maintenance of traffic signals. Capital Golf Fund - This fund is used to offset the cost of capital improvements, equipment purchases, perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are collections from the IROC and Standard Vacation Ownership, Inc. time-share project. Buildinqs Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the improvement and maintenance of public facilities and structures. Library Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the purchase of library resources for the Multi -Agency Library. Special Assessment District Funds - This fund is used to account for the construction of public improvements from proceeds resulting from the creation of various assessment Districts. Assessment District No. 94-3 Merano Silver Spur Ranch Highlands Undergrounding CFD University Special Assessment Assessment 29 147 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2019 Capital Parks and Projects Drainage Economic Recreational Reserve Facilities Development Facilities ASSETS: Pooled cash and investments $ 2,988,345 $ 2,030,312 $ 682,934 $ 62,373 Receivables: Accounts - - - - Interest 1,632,000 972,060 Allowance for interest on Successor Agency - (972,060) Prepaid costs Due from other funds Restricted assets: Cash and investments with fiscal agents - - Advances to Successor Agency 8.000,000 4,765,000 Allowance for Advances to Successor Agency - - - (4,765,000) TOTAL ASSETS $ 12,620,345 $ 2,030,312 $ 682,934 $ 62,373 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable $ 11,833 $ $ 26,306 $ 2,043 Unearned revenues 63,041 - - Deposits payable - Due to other funds 1,600,000 - - TOTAL LIABILITIES 1,674,874 26,306 2,043 DEFERRED INFLOWS OF RESOURCES: Unavailable revenues 1,632,000 - - TOTAL DEFERRED INFLOWS OF RESOURCES 1,632,000 - - FUND BALANCES: Nonspendable: Prepaid costs - Restricted for: Capital Projects Special programs - Assigned to: Capital projects 8,893,084 Property acquisition 420,387 - - Public facilities - 656,628 60,330 Special programs - - Street related purposes - 2,030,312 - - TOTAL FUND BALANCES 9,313,471 2,030,312 656,628 60,330 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 12,620,345 $ 2,030,312 $ 682,934 $ 62,373 148