HomeMy WebLinkAbout06 DECEMBER 1995 ��� City of Palm Desert
� Council Agenda Request
Meeting of January 11, 1996
1. To be considered under:
Consent Calendaz_, Resolutions_ Ordinanxs_ New Business,_
Old Business_ Informati0nal Items, Public Hearings_ Other
2. Item TiUe: (Please provide the wording ffiat should appear as the item's title on tLe agenda).
RECEIVE AND FILE: The Investment & Finance Committee Minutes dated November 2, 1995,
approve - - an ep em er , approve - -
3. FinanciaL• (Complero if applicable)
(a) AxounUProject# (b) Amount Requested
(c) In the Cuaent BudgetT (c) Appropciation Required7
Approved by Director of Finance:
4. Submitted by: Lorena G. Armenta, Senior Office Assistant
5. Approvals: Department Head City Manager
AGENDA
INVESTMENT & FINANCE COMMITTEE
THURSDAY, DECEMBER 7, 1995 - 3:30 P.M.
NORTH WING CONFERENCE ROOM
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I. CALL TO ORDER
II. APPROVAL OF MINUTES
Rec: Approve the Minutes of November 2, 1995.
Action:
III. ORAL COMMUNICATIONS
A. Any Person Wishing to Discuss any Item not Otherwise on the Agenda
may Address the Committee at this Point.
IV. OLD BUSINESS
A. Status of Public and Private Partnerships Background Checks
l. Sports Pazk
2. Section 4
B. Presentation on Investment Policv
Rec: Review recommendations and submit to next City Council agenda.
Action:
C. 1982 Redevelonment Bond Issue - Amount Issue(16 million vs 30
million
Rec: Agnes will present original dollar amount issued.
V. NEW BUSINESS
A. City and Redevelonment Agencv Investment Schedule
Rec: Provide information on bank percentage of Funds invested. Review
and submit to next City Council agenda.
AGENDA - INVESTMENT & FINANCE COMMITTEE
DECEMBER 7, 1995
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B. Repuest for Approval to Invest in Collateralized Deposits with the Best
Bid Submitted on Investments Maturine in the Month of December
1995
Rec: Review investments maturing and reinvest in collateralized deposits.
Action:
C. Status Reoort on New Bond Issue for Indian Ridge(Hand out at
Meetin
Rec: For information and status - Cazlos Ortega
Review investment bids - Jean Ruth
D. State of California Local Agency Investment Fund Monthly Report
Rec: Informational item for Committee to review. No action required.
E. City and Redeveloument A�encv Final Audit Draft
Rec: Review report and submit to next City Council agenda.
Action:
F. New Investment of Sofrivare/Reoorts - SYMPRO (Hand Out at
Meetin
Rec: Review reports and presentation by Jean Ruth.
VI. REPORTS AND REMARKS
A. Reaorts and Remarks bv any Committee Member
B. Items to be P►aced on the Next Agenda
C. California Municival Treasurers Association will have a Governoring
Board Meetin� in January 1996 to Help Citv Council and Investment
Committee's Member
VII. NEXT MEETING DATE
Next regulazly scheduled meeting is January 4, 1996, at 3:30 p.m.
VIII. ADJOURNMENT
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�-T--� •
� � Minut e s
. ,
Finance Committee
CONVENE On November 2, 1995, the Investment & Finance Committee
was called to order at 3:39 p.m, by Mr. Gibson.
INTRODUCTION OF NEW Mr. Gibson introduced the new Investment Manager Jean Ruth,
INVESTMENT MANAGER and welcomed her aboard.
ROLL CALL Jean Benson(attending for Buford Crites), Dennis Coleman, Ray
Diaz(Acting City Manager), Dave Erwin, Paul Gibson, Murray
Magioff, Walt Snyder, Bill Veazie, Lorena Armenta
APPROVAL OF MINUTES Upon Motion byMr. Mag/off, the Minutes ofAugust3, 1995,
weie APPROVED by 4-0-2 vote witl� Ms. Benson and Mr.
Ortega abstaining. Mr. Ortega wanied the minufes to iefiect
N►at the Agency was ieady with the iecommendations with
►eyard M fhe Minutes of September 7, 1995, "Status of Audit
of Various City and Redeve/opment Agency Projects".
ORAL COMMUNICATIONS None
OLD BUSINESS A. Status of Public/Private Partnershia Backaround
Checks for Sports Park and Section Four
Mr. Ortega reported staff received ten pages of
background information on one of the Section 4
companies the Committee had requested a background
check. Mr. Ortega has received raw numbers, and needs
someone to interpret them, and give a report to the
Committee at the next meeting. Mr. Gibson asked Mr.
Ortega to give the information to John Wohlmuth to
distribute accordingly. _
B. Status of Audit of Various City and Redeveloament
Agencv Projects
Mr. Gibson is recommending on the auditor's letter dated
January 30, 1995, a limited review procedures be
conducted on the housing authority, a certified audit on
the mobile home park, and an audit on Desert Rose.
Minutes
F�nance Committee
Also, an audit of receipts needs to be completed on the
gas and electrical franchise agreements. It is a two-year
complex audit and an expensive procedure.
Mr. Erwin asked for a cost factor on U�e fianchise
agreement audit befo►e proceeding. Mr. Gibson will
by to have the inforntation by next meeting. Oscar
Armijo is �equesiing the financial statements on the
housing authority, Porto/a Pa/ms Mobile Home Parlc,
and Desert Rose, in o�der to give a cost estimate of
ffie audit The Redeve/opment Agency needs to
piovide infoimation to Mr. Amtijo.
Mr. Ortega agrees with the recommendations; although,
he feels that Desert Rose should be second priority
following with Portola Palms Mobilehome Park as a third
priority because iYs a simple audit.
In addition, Mr. Ortega is�equesting an accounting of
the �eserve funds of the bonds redeemed about iwo
to thiee years ago. What happened to the ie,serve
funds on �e Housing Authority 6ondsl And was the
Redeve/opment Agency c�edited? Mr. Erwin concurs
and ►ecommends to pioceed witl� Mr. Ortega's
�ecommendations.
NEW BUSINESS A. CitvandRedeveloumentAgencvinvestmentSchedule
Mr. Diaz ►equested a report of �e City assets with
each bank on a pe�entage basis.
Mr. Gibson reported Bank of America has not submitted
financial statements for the City and Redevelopment.
Agency bond issues on Project #1 and #2. The last
statement received was in July. He has contacted the
institute three different occasions about submitting
statements. As of this moment, he has not received any
information. Mr. Gibson thinks it could be due to the
transition of Bank of America to First Trust Bank.
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Minutes
F�nance Comm�ttee
Mr. Gibson will submit the City and Redeve/opment
Agency investment schedu/e to �e City Council for
►eceive and fi/e.
B. Reauest for Aaaroval to Invest in Collateralized
De�osits with the Best Bid Submitted on Investments
Maturing in the Month of October and November 1995
Since there was no meeting last month, the collateralized
deposits that matured in the month of October were rolled
over sixty days with Home Savings, and ninety days with
Great Western.
Upon motion by Mr. Snyder,second 6y Mr. Errvin, U�e
Commiaee AUTHOR/ZED the city heasurerto approve
the best bid upon receipt of bids on investrneMs
maturing in November 1995 Motion canied
unanimousty.
Ms. Ruth is working with Mr. Ortega in reviewing the cash
flow.
C. Uadate on Bills Pendina the Govemor's Signature SB
654 and SB 866
The Governor has signed both SB 654 and SB 866. Mr.
Gibson reported the investment policy will have to be
changed and new policies adopted. A new procedure wiil
be to file a quarterly report of all securities, investments
. and moneys of the local agency, and so forth.
Mr. Gibson and Ms. Ruth will incoipo►ate tl�e new
changes into the Ci[y of Pa/m Desert and
Redevelopment Agency Investment Policy and bring
back to ffie Committee for adoption.
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Minul,�s
F�nance Committee
Ms. Ruth has a demo investment package that monitors
investments. Mr. Gibson will bring a sample to the
Committee to review for the next meeting in December,
and in January the Committee can decide whether or not
to purchasethe package.
D. State of California Local Aaencv Investment Fund
Monthly Report (LAIFI
Mr. Magloff, Ms. Ruth, Ms. Flor, and Mr. Gibson attended
the California Society Municipal Finance Officers' meeting
on October 20 presented by Patricia Beal.
Under the state treasurer's report there are two items that
will be incorporated into the City's Investment Policy: the
broker deal status granting approval, and the list of
people/businesses LAIF reviews on a daily basis.
E. Investment Policv
Mr. Frwin wou/d like a p�esentation by Ms. Ruth on
tl�e investment policy for the next meefing.
F. Transfer of PaveelTrustee Aqreement_from_ Citv
National Bank to Bank of America for the 1982
Redeveloument Agency Bonds
Mr. Erwin reviewed the agreement and recommended to
proceed ahead.
Mr. Ortega asked how City National Bank in 1982 wen�
from 16 million to 30 million now? Mr. Gibson will/ook
into and�eport back at the next meeting.
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Minui,�s
F�nance Committee
REPORTS AND REMARKS A. Any Committee Members' Reaorts and Remarks
Mr. Dennis Coleman reported the financing on the three
assessment districts was at 5.8%. Overall there was a
20% savings on the principal of the combined refunding,
and a 28% savings overall when the interest is added.
On Assessment District 83-1 there was a 29% savings on
the lien, and 35% savings overall. On Assessment
District 84-1-R there was a 5.74% savings on the lien,
and a 14.32°/a savings overall. Assessment District 87-1
saved the most in terms of percentages, a 41.64% in
terms of the principal and 47.82% overail savings. The
bond issue was completed in September. It was a very
successful deal.
Mr. Gibson announced he wiil not be present at the next
December 7, 1995, Investment & Finance Committee
meeting. He will be attending the League of California
Cities Financial Management meeting.
B. Items to be Placed on Next Aaenda
None
NEXT MEETING DATE The next Inves6nent&Finance Committee will be December
7, 1995.
ADJOURNMENT The Investment & Finance Committee adjourned at 4:25 p.m.
Respectfully submitted, .
�Os9Lt� �C/�._/1�.�
yLORENA G. MENTA
RECORDING SECRETARY
5
CITY OF PALM DESERT
and
PALM DESERT REDEVELOPMENT AGENCY
STATEMENT OF INVESTMENT POLICY
REVISION DATE: December 7, 1995
CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
Statement of Investment Policy
TABLE OF CONTENTS
Paee
Introduction . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
InvestmentObjectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
A. Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
B. Liquidiry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
C. Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
AuthoritytoInvestFunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Investment/Finance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Internal Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Ethicsand Conflict of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Evaluation of Investment Officer Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Authorized Financial Dealers & Institufions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
AuthorizedInvestments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Safekeepingof Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Diversilication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Maximum Maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Bond Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
InvestmentPolicy Adoption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
InvestmentPolicy Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Policy Statement on Collateralized Time Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule I
Policy Criteria for Entering Into a Money Market Fund . . . . . . . . . . . . . . . . . . . . Schedule II
Policy Criteria for Selecting Broker/Dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule 777
Firms Authorized to Conduct Investment Transactions . . . . . . . . . . . . . . . . . . . . Schedule IV
Chart of Authorized Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule V
Glossary
CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
5tatement of Investment Policy
INTRODUCTION
The policy and practices of[he Ciry ofPalm Desert and the Palm Desert Redevelopment Agency are
based upon state law, city ordinances, prudent money management and the "prudent person"
standards. The primary goals of this policy are to invest public funds to:
1. Achieve a reasonable rate of return while minimizing the potential for capital losses
arising from market changes or issuer default.
2. Meet the dazly cash flow needs of the City and the RedevelopmenC Agency.
3. Comply with all Zaws of the State of California regarding the investment of public
funds.
SCOPE
The investment policy applies to all funds under the control of the Finance Director/City Treasurer
of the City of Palm Desert and the Palm Desert Redevelopment Agency, including but not limited to
the general revenues of the City/Agency, enterprise fund revenues,proceeds of bond sales and debt
service revenues, trust funds in the custody of the Finance Director/Treasurer and any other funds
under his control. These funds are accounted for in the comprehensive annual financial reports of the
City of Palm Desert and the Palm Desert Redevelopment Agency.
INVESTMENT OBJECTIVES
A. Safety Principal
Safety of principal is the City/Agency's foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure that capital losses resulting
from institution default,broker-dealer default,or the erosion of mazket value are avoided. The
City/Agency shall seek to preserve principal by mitigating the two types of risk: credit risk
and market risk.
L Credit risk, defined as the risk of loss due to failure of the issuer of a security, shall be
mitigated by investing in only the highest quality securities (see authorized
investments)and by diversifying the inveshnent portfolio so that the failure of any one
issuer would not unduly harm the City/Agency's cash flow.
2. Market risk, defined as the risk of market value fluctuations due to overall changes in
the general level of interest rates, shall be mitigated by structuring the portfolio so that
securities mature at the same time that major cash outflows occur,this eluninating the
need to sell securities prior to maturity; and by prohibiting the taking of short
Rev: 12/95 1
positions,that is, selling securities that the Ciry/Agency does not own. It is explicifly
recognized,however, that in a diversified portfolio, occasional measured losses may
occur, and must be considered within the context of overall investment return.
B. Li ui i
Liquidity is the second most important objecrive of the investment program. The investment
portfolio shall remain sufficiently liquid to enable the City/Agency to meet all operating
requirements. At all times, at least 50%of the total portfolio shall be invested for periods of
three years or less; at least 30% of the total portfolio shall be invested for two yeazs or less;
at least 20% of the total portfolio shall be invested for one yeaz or less. At no time will a
security in the portfolio mature in more than five yeazs except bond reserve funds, bond
escrow funds and any funds approved by the Finance Committee or City Council to be
appropriate for a longer period.
C. Yield
The City/Agency portfolio shall be invested to attain a market average rate of return through
economic cycles, as long as it does not diminish the objectives of Safety and Liquidity. The
market rate of return is defined as the average return on the one-year U.S. Treasury Bill.
Whenever possible and in a manner consistent with the objectives of safety of principal and
liquidity, a yield higher than the market rate of return shall be sought.
AUTAORITY TO INVEST FUNDS
The City Council and Redevelopment Agency Board have appointed the City Finance Director as City
Treasurer responsible for undertaking inveshnent transactions on behalf of the City/Agency. Unless
specifically designated by the City Council and Agency Board, the only officials authorized to
undertake investment transactions on behalf of the City/Agency aze the Director of Finance/Treasurer
and the Investment Manager. The Finance Directar{Treasurer and Investment Manager will observe,
review and react to the changing conditions that affect the investment portfolio. They will meet on
a regulaz basis to discuss current mazket conditions, future trends and how each of these affects the
investment portfolio and the City/Agency. The Finance Director/"I'reasurer and Investment Manager
shall establish a system of controls to ensure compliance with the City/Agency's investment policy.
INVESTMENT/FINANCE COMMITTEE
The City utilizes a Finance Committee, composed of the Mayor, Mayor Pro-Tempore, City Manager,
Redevelopment Agency Executive Director,Finance Director,City Attomey and Citizen(s)appointed
by the City Council,to insure stability and constant information flow as it relates to investment and
other finance activities. They will meet monthly to discuss issues relating to the City/Agency's
investment portfolio. Items may include the suitability of current investment policies and procedures,
current and proposed strategies, investment transactions since the last meeting as well as other topics
affecting the sources and uses of funds in the portfolio.
Rev: 12/95 2
INTERNAL CONTROL
The Finance Director, is responsible for ensuring compliance with the City/Agency investment
policies as well as establishing intemal controls designed to prevent losses due to fraud, employee
error,misrepresenting by third parties,or unanticipated changes in financial markets. A written policy
on the specific internal controls will be reviewed by the Finance Committee.
ETHICS AND CONFLICTS OF INTEREST
Officer and employees involved in the investment process shall refrain from personal business activity
that could conflict with proper execution of the investment program, or which could impair their
ability to make impartial investrnent decisions. Employees and investment officers shall disclose any
material financial interests in financial institutions that conduct business within this jurisdiction, and
they shall further disclose any large personal financial/investment positions that could be related to
the performance of the City/Agency's portfolio. Employees and officers shall subordinate their
personal investment transactions to those of the City/Agency,particularly with regard to the timing
of purchases and sales, and shall avoid transactions that might impair public confidence in the City's
ability to govern effectively.
EVALUATION OF INVESTMENT OFFICER ACTIONS
The actions of City/Agency investment officers in the oerformance of their duties as mana ep rs of
u lic hall e evaluated in the f Ilowin " rudent erson" stan azd a lied in the context
of mana 'i�n�the overall portfolio:
Investments shall be made with judgment and care. under circumstances then
prevailing. which persons o,f prudence. discretion. and intelligence exercise in the
marcagement oftheir own a airs. not for eneculation. but for investment. considering
the probable safetv oftheir capital as well as the probable income to be derived
Citv/Agencv investment officers acting in accordance with written policies and the "�rudent�erson"
standard and exercising due diligence shall be relieved of personal responsibility for an individual
securitv's credit risk or mazket price changes. nrovided that substantial deviations from expectations
aze reported by the Treasurer to Citv Manager and the Finance Committee within three da,��
discovery. Mutuallv agreeable remedial action will be taken bv the Treasurer and reported to the next
Finance Committee meetine.
AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City/Agency shall transact business only with banks and savings and loans, and with investment
securities dealers. The Finance Director/Treasurer will maintain a list of financial institutions
authorized to provide investment services. He will also maintain a list of approved securiry
brokers/dealers selected by credit worthiness who are authorized to provide investment services to
the City/Agency. The dealers must be primazy dealers regulazly reporting to the Federal Reserve
Bank. Exceptions to this rule may be made with the approval of the Investment/Finance Committee.
Rev: 12/95 3
All primary financial institutions and broker/dealers who desire to become qualified bidders for
investment transactions must supply an audited financial statement, and U4 Form for the broker,
completed broker/dealer questionnaire and certification of having read the City/Agency's investment
policy. All secondary financial instatutions and broker/dealers who desire to become qualified bidders
for investment transactions must supply an audited financial statement,proof of National Association
of Securities Dealers certification, trading resolution, proof of state registration, completed
broker/dealer questionnaire, U4 Form for the broker and certification of having read the
City/Agency's investment policy. The Finance Director/Treasurer sha11 determine if they aze
adequately capitalized, make mazkets on securities appropriate to the City/Agency's needs and are
recommended by managers of portfolios similar to the City/Agency. The Finance Director/Treasurer
shall submit his findings and recommendations to the Investment/Finance Committee. The committee
will determine which broker/dealers will be authorized to trade with the City/Agency.
An annual review of the financial condition and registration of qualified bidders will be conducted.
A current audited financial statement is required to be on file for each financial institution and
broker/dealer in which the City/Agency invests.
The City/Agency shall at least annually send a copy of the current investment policy to all financial
institutions and broker/dealers approved to do business with the City/Agency. Confirmation of receipt
of this policy shall be considered evidence that the dealer has read and understands the City/Agency's
inveshnent policy and will recommend and execute only transactions suitable for and in compliance
with the City/Agency's investment policy.
AUTHORIZED INVESTMENTS
The City/Agency is autharized by California Govemment Code Section 53600, et. seq. to invest in
specific types of securities. The City/Agency has further limited the types of securities in which we
may invest. Any security not listed, is not a valid investment for the City/Agency. The concise list
of approved securities is as follows:
A. United States Treasury Bills, Bonds, and Notes, or those for which the full faith and
credit of the United States aze pledged for payment of principal and interest. There is
no limitation as to the percentage of the portfolio which can be invested in this
category.
B. Obligations issued by United States Government Agencies such as, but not limited to,
the Government National Mortgage Association (GNMA), the Federal Farm Credit
Bank System (FFCB), the Federal Home Loan Bank (FHLB), the Federal National
Mortgage Association(FNMA),the Federal Home Mortgage Corporation(FHLMC),
the Student Loan Mazketing Association(SLMA),and the Tennessee Valley Authority
(TVA). Although there is no percentage limitation of the dollar amount that can be
invested in these issuers, the "prudent person" rule shall apply for any single agency
name.
C. Bills of exchange or time drafts drawn on and accepted by a commercial bank,
otherwise known as bankers acceptances which aze eligible for purchase by the
Rev: 12/95 4
Federal Reserve System,may not exceed 270 days to maturity or 40% of the market
value of the portfolio. No more than 30%of the mazket value of the portfolio may be
imested in banker's acceptances issued by any one bank.
D. Commercial paper of prime quality and ranked Pl by Moody's Investor Services and
A1 by Standard and Poor's and 'zssued by a domestic corporation having assets in
excess of$500 million and having an "A" or better rating on its long term debt as
provided by Moody's or Standard and poor's. Purchases of eligible commercial paper
may not exceed 180 days to maturity. Purchases of commercial paper may not exceed
I 5%of the mazket value of the portfolio. No more than 5%of the mazket value of the
portfolio, or $500,000 may be invested in commercial paper issued by any one
corporarion.
E. Medium Term Notes(MT1Vs) issued by corporations organized and operating within
the United States. MT'Ns eligible for purchase shall be rated"A"or better by Standard
and Poor's or by Moody's raYing services. MT'Ns with an"A" rating shall be limited
to 24 months masimum maturity; "AA" rated MT'Ns shall be limited to 36 months.
The aggregate total of a11 purchased MTNs may not exceed 30% of the mazket value
of the investment portfolio. No more than 5%of the market value of the portfolio may
be invested in notes issued by any one corporation. Commercial paper holdings shali
be considered when calculating the maximum percentage of any issuer name.
F. The Local Agency Investment Fund(LAIF), established by the State Treasurer for the
benefit of local agencies and idenYified under Government Code Section 16429.1, is
authorized up to the maximum amount permitted by State Law.
G. The City/Agency may place funds in inactive deposits with Banks and Savings and
Loans with a branch within California that have a rating of at least "A-1" from the
Financial Directory or an equivalent rating from another generally recognized
authority on ratings, and have an Equity to Total Assets ratio of at least 4%. No more
than 15% of the City/Agency portfolio, exclusive of investrnents in government
agency issues and the State Treasurer's Local Agency Investment Fund, shall be
placed with any one fmancial instirirtion. All deposits shall be secured in accordance
with sections 53651 and 53652 of the California Government Code. If deposits are
not collateralized, the m�imum placed at any one institution will be $100,000. The
maxunum amount of collateralized inactive deposits placed at any one institution shall
not constitute more than l5% of the total assets of the institution or $5,000,000,
whichever ls less.
SAFEKEEPING OF SECURITIES
To protect against potentiallosses by the collapse of individual securities dealers,all securifies owned
by tYte City/Agency shall be held in safekeeping by a third party bank trust department acting as agent
for the City/Agency under the terms of a custody agreement executed by the bank and the
City/Agency. All securities will be received and delivered using standazd delivery-versus-payment
(DVP) procedures. No outside broker/dealer or advisor may have access to City/Agency fiznds,
Rev: 12/95 5
accounts or investments, and any transfer of funds to or through an outside broker/dealer must be
approved by the Finance Director/Treasurer.
DIVERSIFICATION
The City/Agency will diversify its investments by security type and investment. With the exception
of bond reserve funds,bond escrow funds, and any other funds approved by the Finance Committee
or the City Council, at all tunes at least 50% of the total portfolio shall mature in three years or less;
at least 30%of the total portfolio shall mature in two years or less; at least 20% of the portfolio shall
mature in one year or less.
MAXIMUM MATIIRITIES
The City/Agency will attempt to match its investments with anticipated cash flow requirements.
Unless matched to a specific cash flow,as approved by the Finance Committee,the City/Agency will
not directly invest in securities maturing more than five yeazs from the date of purchase. Bond reserve
funds, bond escrow funds, and any other funds approved by the Finance Committee or the City
Council may be invested in securities exceeding five yeazs if the maturities of such inveshnents are
made to coincide as nearly as possible with the expected use of the funds.
BONDPROCEEDS
The City/Agency will direct the investment of proceeds on bonds issued as instructed in the bond
indenture. Securities authorized by the bond indenture that are not authorized by the City/Agency's
investment policy will only be used if they aze specificially approved by the Finance Committee. All
securities will be held in third-party safekeeping with the bond trustee, and all delivery-versus-
payment rules will apply. Fees will be collected annually to compensate for administration costs.
REPORTING REOUIREMENTS
The Finance Director/Treasurer shall render a report of investment activitv to the Citv Council
Agencv Board and ihe Finance Committee c�uarterly within 30 days followin�the end of the quarter
The report will include the tvne of investment issuer date of matu�y and par and dollaz amount
invested on all securities investments and monies held bv the Citv/A¢ency. The report shall state
market value and the sowce of the valuation and state that the portfolio is in compliance with the
olic or the m r in which it i not in com liance. The re ort 'll al o include a statement
denoting the ability to meet the City/Agency's expected expenditure rec�uirements for the next six
months or provide an ex�lanation as to why sufficient money is not available.
INVESTMENT POLICY ADOPTION
The Finance Director/Treasurer shall submit an annual Statement of Inveshnent Policv to the Finance
Committee and then the Citv Council and Redevelopment Agency Boazd for their a�proval This
statement shall be filed with the Finance Committee bv January 31 of each �S ear.
Rev: 12/95 6
INVESTMENT POLICY REVIEW
The City/Agency's independent Certified Public Accountant shall annually review and make
recommendations regarding the City/Agency investment policies to the extent considered necessary
as required by generally accepted auditing standards as they relate to the annual financial audit which
includes cash and investments.
Rev: 12/95 7
CITY OF PALM DESERT
PALM DESERT REDEVELOPMENT AGENCY
POLICY STAT�MENT ON COLLATERALIZED TIME DEPOSITS
SCHEDULE I
December 7, 1995
Before the Treasury can place a time deposit with a local bank ar savings and loan, the following
criteria must be met:
1. The bank must provide us with an executed copy of the "Contract for Deposit for Moneys."
2. The interest rate on the Time Certificate of Deposit must be competitive with rates offered by
other banks and savings and loans residing in Riverside County and must exceed the interest
rate for treasury bills for a similar maturity period.
3. For inveshnents less than$100,000, FDIC insurance will be sufficient without requiring any
collateral to be pledged with the Federal Reserve to secure the public fund deposit.
4. For investments exceeding $100,000, there may be a waiver of collateral for the first
$100,000 deposited, and all of the fixnds placed on deposit must be collateralized by 105% of
U.S. Treasury or Federal Agency securities, or by I50% of mortgages having maturities less
than five yeazs. The City/Agency must receive confirmation that these securities have been
pledged in repayment of the time deposit. The securities pledged must be maintained at a
current market value 10% greater than the dollar amount of the deposit.
5. The City/Agency must be given a current audited financial statement for the financial yeaz just
ended as well as the most recent quarterly statement of financial condition. The financial
reports must both include a "statement of financial condition" as well as an "income
statement" depicting current and prior year operations.
6. The City/Agency will not place a fund deposit for more than $5,000,000, or 10%of the assets
of the institution, whichever is less.
7. The City/Agency must receive a certificate of deposit which specifically expresses the terms
goveming the transaction, (i.e.,the period of time, name of depositor, interest rate, etc.).
8. All time certificates must have a maturiry period not exceeding one year from the date of
deposit with quarterly payments of interest based upon the stated interest rate.
9. The City/Agency must also receive a letter from the comptroller and/or treasurer of the bank
at the time the deposit is made,that there is no known pending financial disclosure or public
announcement of an adverse financial event involving the bank or savings and loan, nor is
there any lrnowledge that a conflict of interest situation exists with any City/Agency official,
officer or employee at the time the bank is receiving this deposit. The City/Agency has a
fiduciary responsibility to make prudent investment of public funds, and to assure our
Rev: 12/95 Schedule I
inveshnent practices aze absent of any financial inducement or conflict in interest whatsoever.
10. Time deposits will only be made with banks and savings and loans having branch office
locations within Riverside County. However,time deposits with a bank or savings and loan
must be centralized at one designated office location rather than making separate deposits with
each branch office.
Rev: 12/95 Schedule I
CITY OF PALM DESERT
PALM DESERT REDEVELOPMENT AGENCY
POLICY CRITERIA FOR ENTERING INTO A MONEYMARKET FIIND
SCHEDULEII
December 7, 1995
1. The fum must provide in writing a statement on the fund's letterhead that the fund meets the
statutory requirements of California law (i.e., Sections 53601 and 53635 of the California
Government Code).
2. The fund must provide evidence that it has been registered with SEC and has "AAA"ratings
from Standard & Poor's and Moody's.
3. The fund's investments shall be limited to direct obligations in U.S. Treasury bills,bonds or
notes and repurchase agreements and shall maintain weighted average maturities within their
portfolio of less than 60 days.
4. The fund must provide us copies of their portfolio reports and newsletters and shall provide,
at least month-end, a complete listing of securities within the fund's portfolio.
5. The fund shali provide us a current prospectus before our participation in the fund.
6. The fund cannot engage in hedging strategies, WI purchases, options, future, reverse-
repurchase agreements, or security lending.
7. The fund must maintain daily, a principal per shaze value of$1.00 per share.
8. The fund shall provide information on who serves as their custodial bank.
9. The fund shall provide us at least annual financial statements on the fund's financial condition
and performance.
10. The fund shall provide us wire instructions for the purchase and redemption of shazes and
must be able to distribute interest earnings to us on a monthly basis.
1 L Unless the fund is more than five years old, the City/Agency is to be given its performance
history since the inception of the fund.
Rev: 12/95 Schedule II
12. The City/Agency is also to be given the date the fund was established, the total assets
currently under management,the recent 12 months' history as to either the growth or decline
in assets under management,and whether or not the fund is assessing 12B-1 management fees.
It would also be beneficial if the fund could provide us performance histories on competitor
funds, should they be available.
* Bank of America recently announced changes in trust arrangements that will make it
necessary for the City/Agency to change its procedures for selecting money mazket funds.
These criteria will be in effect by the end of the First Quarter of 1996.
Rev: 12/95 Schedule II
CITY OF PALM DESERT
PALM DESERT REDEVELOPMENT AGENCY
POLICY CRIT�'RIA FOR SELECTING BROKER/DEALERS
SCHEDULE III
December 7, 1995
1. All primary financial institutions and broker/dealers who desire to become qualified bidders
for investment transactions must supply an audited financial statement, and U4 Form for the
broker, completed broker/dealer questionnaire and certification of having read the
City/Agency's inveshnent policy. All secondary financial institutions and broker/dealers who
desire to become qualifzed bidders for investment transactions must supply an audited
financial statement,proof of National Association of Securities Dealers certification, trading
resolution,proof of state registration, completed broker/dealer questionnaire, U4 Form for the
broker and certification of having read the City/Agency's investment policy.
2. The net capital position of the firm shall be in excess of$100 million.
3. The Finance Director/Treasurer's intent is to enter into a long-term relationship. Therefore,
the integrity of the firm and the personnel assigned to our account is of primary importance.
4. The firm must state in writing its willingness to be bound by the City/Agency's written
Investment Policy Guidetines.
5. The firm must provide an active secondary market for the securities it sells.
6. The firm must specify the types of securities it specializes in and will be made available for
our account.
7. It is important that the firm provide related services that will enhance the account relationship
which could include:
a) An active secondary market for its securities.
b) Internal credit research analysis on commercial paper, banker's acceptances and other
securities it offers for sale.
c) Be willing to trade securities on our portfolio.
d) Be capable of providing market analysis, economic projections, newsletters.
e) Provide market education on new investment products, security spread relationships,
graphs, etc.
8. The firm must be willing to provide us annual financial statements.
9. If requested,the firm must be willing to provide us a list of local government clients or other
references, particularly those client relationships established within the State of California.
10. The City/Agency is prohibited from the establishment of a broker/dealer account for the
purpose of holding the City/Agency's securities. All securities must be subject to delivery at
Rev: 12/95 Schedule III
the City/Agency's custodial bank.
11. Without exception, all transactions are to be conducted on a"delivery vs. payment"basis.
12. The broker/dealer sha11 be headquartered or have a branch office in Califomia. Except for the
above, the City/Agency will not conduct security transactions with any firm located out of
state.
13. The broker/dealer must have been in operation for more than 5 years, and must have net
capital in excess of$100 million.
14. No business relationship shall be established with firms engaging in the sale of"exotic"
products. Exotic meaning "unusually high yields," no ready secondary market, "high price
volacility" on the security.
15. The firm must be registered with the State of California's regulatory agency.
16. No broker/dealer or security firm shall be selected who has,within any consecutive 48-month
period,made a political contribution in an amount exceeding the limitations contained in Rule
G-37 of the Municipal Securities Rulemaking Boazd,to the local treasurer or any member of
the Board of Supervisors or to any candidate for these offices.
Rev: 12/95 Schedule III
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CITY OF PALM DESERT
PALM DESERT REDEVELOPMENT AGENCY
FIRMSA(ITHORIZED TO CONDUCT INVESTMENT TRANSACTIONS
SCHEDULEIV
December 7, 1995
The City/Agency is authorized to conduct investment security transactions with the following
investment firms and broker/dealers, many of which are designated by the Federal Reserve Bank as
prnnary govemment dealers. Secariry transactions with firms,other than those appearing on this list,
are prohibited.
A. Firms designated by the Federal Reserve Bank as Primary Government Dealers:
Bank of America NT & SA
Chase Securities, Inc.
Chemical Securities, Inc.
Citicorp Securities Mazkets, Inc.
Dean Witter Reynolds, Inc.
Merrill Lynch Government Securities, Inc.
Paine Webber, Inc.
Prudentiai Bache Securities, Inc,.
Lehman Government Securities, Inc.
Smith Barney, Inc.
B. Other authorized firms:
Bank of California
The Bank of New York
First Intecstate Bank
Great Western Bank
Home Savings of America
Downey Savings
Glendale Federal Bank
Rev: 12/95 Schedule TV
GLOSSARY
AGENCIES: Federal agency securities. DELIVERY VERSUS PAYMENT: There
are two methods of delivery of securities:
ASKED: The price at which securities are delivery versus payment and delivery versus
offered. (The price at which a firm will sell a receipt. Delivery versus payment is delivery of
security to an investor.) securities with an exchange of money for the
securities. Delivery versus receipt is delivery
BANKERS' ACCEPTANCE (BA): A draft of securities with an exchange of a signed
or bill or exchange accepted by a bank or trust receipt far the securities.
company. The accepting institution guarantees
payment of the bill, as well as the issuer. DISCOUNT:The difference between the cost
price of a security and its maturity when
BASIS POINT: One one-hundredth of a quoted at lower than face value. A security
percent (i.e., 0.01%). selling below original offering price shortly
afrer sale also is considered to be at a discount.
BID: The price offered by a buyer of
securities. (When you are selling securities, DISCOiTNT SECURITIES: Non-interest
you ask for a bid.) bearing money market instruments that are
issued at a discount and redeemed at maturity
BROKER: A broker brings buyers and sellers for full face value (e.g., U.S. Treasury Bills).
together for a commission. He does not take a
position. DIVERSIFICATION: Dividing investment
funds among a variety of securities offering
CERTIFICATE OF DEPOSIT(CD):A time independent returns.
deposit with a specific maturity evidenced by
a certificate. Large-denomination CD's are FEDERAL CREDIT AGENCIES:Agencies
typically negotiable. of the Federal government set up to supply
credit to various classes of institutions (e. g.
COLLATERAL: Securities, evidence of S&L's, Small business firms, students,
deposit or other property which a borrower farmers, farm cooperatives, and exporters).
pledges to secure repayment of a loan. Also
refers to securities pledged by a bank to secure FEDERAL DEPOSIT INSURANCE
deposits of public monies. CORPORATION(FDIC): A Federal agency
that insures bank deposits, currently up to
COUPON: a) The annual rate of interest that $100,000 per deposit.
a bond's issuer promises to pay the bondholder
on the bond's face value. b) A certificate FEDERAL FUNDS RATE: The rate of
attached to a bond evidencing interest due on interest at which Fed funds are traded. This
a payment date. rate is currently pegged by the Federal Reserve
through open-market operations.
DEALER: A dealer, as opposed to a broker,
acts as a principal in all transactions, buying FEDERAL HOME LOAN BANKS
and selling for his own account. (FHLB): The institutions that regulate and
lend to savings and loan associations. The
DEBENTURE: A bond secured only by the Pederal Home Loan Banks play a role
general credit of the issuer. analogous to that played by the Federal
Rev: 12/95 Glossary
Reserve Banks vis-a-vis member commercial banks, savings and loan associations,and other
banks. institutions. Security holder is protected by
full faith and credit of the U.S. Government.
FEDERAL NATIONAL MORTGAGE Ginnie Mae securities aze backed by the FHA,
ASSOCIATION (FNMA): FNMA, like VA or FMHM mortgages. The term "pass-
GNMA was chartered under the Federal throughs" is often used to describe Ginnie
National Mortgage Association Act in 1938. Maes.
F'NMA is a Federal corporation working under
the auspices of the Department of Housing and LIQUIDITY: A liquid asset is one that can be
Urban Development (HUD). It is the largest converted easily and rapidly into cash without
single provider of residential mortgage funds a substantial loss of value. In the money
in the United States. Fannie Mae, as the market, a security is said to be liquid if the
corporation is called, is a private stockholder- spread between bid and asked prices is narrow
owned corporation. The corporation's and reasonable size can be done at those
purchases include a variety of adjustable quotes.
mortgages and second loans, in addition to
fixed-rate mortgages. FNMA's securities aze LOCAL GOVERNMENT INVESTMENT
also highly liquid and are widely accepted. POOL (LGIP): The aggregate of all funds
FNMA assumes and guazantees that all from political subdivisions that are placed in
security holders will receive timely payment of the custody of the State Treaswer for
principal and interest. investment and reinvestment.
FEDERAL OPEN MARKET MARKET VALUE: The price at which a
COMMITTEE (FOMC): Consists of seven security is trading and could presumably be
members of the Federal Reserve Board and purchased or sold.
five of the twelve Federal Reserve Bank
Presidents. The President of the New York MARKETREPURCHASEAGREEMENT:
Federal Reserve Bank is a permanent member, A written contract covering a11 future
while the other presidents serve on a rotating transactions between the parties to repurchase-
basis. The Committee periodically meets to reverse repurchase agreements that establish
set Federal Reserve guidelines regarding each party's rights in the transactions. A
purchases and sales of Government Securities master agreement will often specify, among
in the open market as a means of influencing other things, the right of the buyer-lender to
the volume of bank credit and money. liquidate the underlying securities in the event
of default by the seller-borrower.
FEDERAL RESERVE SYSTEM: The
central bank of the United States created by MATURITY: The date upon which the
Congress and consisting of a seven-member principal or stated value of an investment
Board of Governors in Washington, D.C.; 12 becomes due and payable.
regional banks and about 5,700 commercial
banks are members of the system. OFFER: The price asked by a seller of
securities. (When you are buying securities,
G O V E R N M E N T N A T I O N A L you ask for an offer.) See"Asked" and `Bid".
MORTGAGE ASSOCIATION (GNMA or
Ginnie Mae): Securities influencing the OPEN MAI2KET OPERATIONS:
volume of bank credit guazanteed by GNMA Purchases and sales of govemment and certain
and issued by mortgage bankers, commercial other securities in the open mazket by the New
Rev: 12/95 Glossary
Yark Federal Reserve Bank as directed by the the agreement aze structured to compensate
FOMC in order to influence the volume of him for this. Dealers use RP extensively to
money and credit in the economy. Purchases finance their positions. Exception: When the
inject reserves into the bank system and Fed is said to be doing RP,it is lending money,
stimulate growth of money and credit: Sales that is, increasing bank reserves.
have the opposite effect. Open mazket
operations are the Federal Reserve's most SAFEKEEPING: A service to customers
important and most flexible monetary policy rendered by banks for a fee whereby securities
tool. and valuables of all types and descriptions are
held in the bank's vaults for protection.
PORTFOLIO: Collection of securiites held
by an investor. SECONDARY MAItKET: A market made
for the purchase and sale of outstanding issues
PRIMARY DEALER: A group of following the initial distribution.
government securities dealers who submit
daily reports of market activity and positions SECURITIES & EXCHANGE
and monthly financial statements to the COMNIISSION: Agency created by Congress
Federal Reserva Bank of New York and are to protect investors in securities transactions
subject to its informal oversight. Primary by administering securities legislation.
dealers include Securities and Exchange
Commission (SEC)-registered securities SEC RULE 15C3-1: See "Uniforxn Net
broker/dealers, banks and a few unregulated Capital Rule".
firms.
TREASURY BILLS: A non-interest beazing
PRUDENT PERSON RULE: An investment discount security issued by the U.S. Treasury
standard. In some states,the law requires that to finance the national debt. Most bills are
a fiduciary, such as a trustee, may invest issued to mature in three months, six months,
money only in a list of securities selected by or one year.
the custody state--the so-called"legal list". In
other states,the trustee may invest in a security TREASURY BOND: Long-term U.S.
if it is one which would be bought by a prudent Treasury securities having initial maturities of
person of discretion and intelligence who is more than 10 years.
seeking a reasonable income and preservation
of capital. TREA5URY NOTES: Intermediate-term
coupon bearing U.S. Treasury securities
RATE OF RETURN: The yield obtainable on having initial maturities of from one yeaz to
a security based on its purchase price or its ten years.
current mazket price. This may be the
amortized yield to maturity; on a bond, the UNIFORM NET CAPITAL RULE:
current income return. Securities and Exchange Commission
requirement that member firms as well as
REPURCHASE AGREEMENT (RP or nonmember broker/dealers in securities
REPO): A holder of securities sells these maintain a m�imum ratio of indebtedness to
securities to an investor with an agreement to liquid capital of 15 to 1; also called net capital
repurchase them at a fixed date. The security rule and net capital ratio. Indebtedness covers
"buyer" in effect lends the "seller" money for all money owed to a firm, including margin
the period of the agreement, and the terms of loans and commitments to purchase securities,
Rev: 12/95 Glossary
one reason new public issues are spread among
members of underwriting syndicates. Liquid
capital includes cash and assets easily
converted into cash.
YIELD: The rate of annual income return on
an investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the
current dollar income by the current mazket
price for the security. (b) NET YIELD or
YIELD TO MATURITY is the current
income yield minus any premium above paz or
plus any discount from par in purchase price,
with the adjustment spread over the period
from the date of purchase to the date of
maturity of the bond.
Rev: 12/95 Glossary
INTEROFFICE MEMORANDUM
CITY OF PALM DESERT
TO: INVESTMENT AND FINANCE COMMITTEE
FROM: JEAN RUTH, INVE5TMENT MANAGER
SUBJECT: A. CRITERIA FOR THE SELECTION OF CERTIFICATES OF DEPOSIT
B. CITY'S COMPLIANCE WITH THE CRITERIA
DATE: SEPTEMBER 7, 1995
The Investment Policy for City of Palm Desert and the Palm Desert Redevelopment Agency
states that the following conditions will apply to all Certificate of Deposits purchased:
1. The City/Agency may place fixnds in inactive deposits with Banks
and Savings and Loans with a branch within California that have a rating of at
least A-1 from the Financial Directory or an equivalent rating from another
generally recognized authority on ratings, and have an Equity to Total Assets
ratio of at least 4%.
2. No more than 15%of the City/Agency portfolio, exclusive of
investments in government agency issues and the States Treasurer"s Local
Agency Investment Fund, shall be placed with any one financial institution.
3. All deposits shall be secured in accordance with sections 53651 and 53652 of
the California Government Code.
4. If deposits are not collateralized,the maximum placed at any one institution
will be $100,000.
5. The maacimum amount of collateralized inactive deposits places at any one
institution shall not constitute more that 15%of the total asset of the institution or
$5,000,000 whichever is less.
We are in compliance with all of there requirements. Please refer to the following chart for
specific details.
G,�'+�- ��--�C��
JEAN UTH, INVESTMENT MANAGER
Attachment
HomeSavings of Great Western Glendale Federal
America
1. Rating AAA AAA t1AA
Equity to Total 6.0% 5.8% 6.0%
Assets
2. 15% of City's $5,479,991.62 $5,479,991.62 $5,479,991.62
portfolio
3. Properly 150% Mortgages 150% Mortgages 150% Mortgages
Collateralized
4.$100,000 maac. if NA NA NA
uncollateralized
5. 15% ofTotal $8,137,321.20 $6,168,776.10 $2,342,791.05
Assets of Institution
Total Deposits $5,000,000. $5,000,000. $1,500,000.
Ratio: CD to Total 10.04% 10.04% 3.01%
Portfolio
�..�_
S�TE OF CAUFORNIA MATT FONG, Treasurcr
OFFICE OF THE TREASURER
SACRAMENTO : m
LOCAL AGENCY INVESTMENT FUND
P.O. BOX 942809
Date: 10/31/95 SACRAMENTO, CA 94209-0001
Page: O1 OCTOBER, 1995 STATEMENT
ACCOUNT NUMBER: 98-33-621
CITY OF PALM DESFRT
ATTN: CITY TREASURER
73510 FRED WARING DRIVS
PALM DSSERT CA 92260
EEFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION
DATE DATI3 TYPS NO CALLER AMOUNT SALANCE
--------- ----------- ---- ------ ------ --------------- ---------------
BEGINNING BALANCE - REG $9,760,451 .32
10/06/95 10/06/95 RW 406 ATT -$1,000,000.00 $8,760,451 .32
10/12/95 10/11/95 DD 407 SYS $205,746.54 $8,966,197 .86
10/18/95 10/18/95 RW 408 ATT -$600,000.00 $8,366,197.86
10/24/95 10/24/95 RW 409 ATT -51 ,300,000.00 $7 ,066,197 .86
---------------
ENDING BALANCE - REG $7,066,197 .86
NO BOND PROCEEDS
---------------
GRAND TOTAL $7,066,197 .86
---------------
---------------
SUt�tARY
TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITHDRAWAL AMT
---------- ----------------- --------------------
REG 3 $205,746.54 -$2,900,000. 00
B/P 0 $0.00 $0.00
---------- ----------------- --------------------
TOTAL 3 $205,746.54 -$2,900,000.00
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� STATE OF CALIFORNIA MATT FONG, Treosumr
OFFICE OF THE TREASURER _
SACRAMENTO [ d
LOCAL AGENCY INVESTMfiNT FUND
P.O. BOX 942809
Date: 10/31/95 SACRAMENTO, CA 94209-0001
Page: 02 OCTOBER, 1995 STATEMENT
BOND PROCEEDS ACCOUNT NUMBER: 11-33-002
EFFECTIVE TRANSACTION TRAN CONF AUTH TRANSACTION
DATE DATE TYPE NO CALLER AMOUNT BALANCE
--------- ----------- ---- ------ ------ --------------- ---------------
BEGINNING BALANCE - B/P $4,000,000.00
B/P ID: 8902071 MATURITY DATE: 11/06/95 BEG BAL: $4,000,000.00
END BAL: $4,000,000 .00
---------------
ENDING BALANCE - B/P $4,000,000.00
---------------
ENDING BALANCE - RfiG
---------------
GRAND TOTAL $4,000,000.00
---------------
---------------
SUMMARY
TRAN COUNT TOTAL DEPOSIT AMT TOTAL WITHDRAWAL AMT
---------- ----------------- --------------------
REG 0 $0.00 $0.00
B/P 0 $0.00 $0.00
---------- ----------------- --------------------
TOTAL 0 $0.00 $0.00
/
/ SUMMARY OF INVESTMENT DATA
FOR THE POOLED MONEY INVESTMENT ACCOUNT
A COMPARISON OF OCTOBER 1995 WITH OCTOBER 1994
(Dollars in Thousands)
OCTOHER 1995 OCTOHER 1999 CHANGE
AVERAGE DAILY
PORTFOLIO TOTAL $24 , 405, 952 $26, 432 , 262 $ - 2 , 026, 310
TOTAL EARNINGS ON
ACCRUAL BASIS $ 119, 570 $ 117, 704 $ + 1, 866
EFFECTIVE YIELD 5. 784 5. 243 + . 541
AVERAGE LIFE OF PORTFOLIO
ON THE LAST DAY OF THE MONTH
(IN DAYS) 285 452 - 167
SECURITY TRANSACTIONS $14 , 193 , 944 $11, 072, 797 $ + 3 121 147
TIME DEPOSITS $ 330, 000 $ 164 , 000 $ + ' 166, 000
AVERAGE WORKDAY
INVESTMENT ACTIVITY $ 691, 616 $ 561, 840 $ + 129, 776
NUMBER OF �
SECURITY TRANSACTIONS 337 302 + 35
NUMBER OF
TIME DEPOSITS 14 9 + 5
AVERAGE PRESCRIBED DEMAND
COMPENSATING BANK BALANCES $ 148, 209 $ 192 , 865 $ - 44 , 656
FOR SERVICES
AVERAGE PRESCRIBED DEMAND
BANK BALANCES FOR
UNCOLLECTED FUNDS $ 120, 133 $ 239, 402 $ - 119, 269
LOCAL AGENCY INVESTMENT FUND*
3UMMARY OF ACTIVITY
OCTOBER 1995
BEGINNING BALANCE DEPOSITS WITHDRAWALS MONTH END HALANCE
$9�146�134�489.25 $1� 056�506� 000.58 $1� 028� 982� 950.29 $9, 174� 157,539.54
*Local Agency Investment Fund Invested Through Pooled Money Investment Account
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FOR DISCUSSION AND REVIEW
SUBIECTTO CHANGE
NO OPINION EXPRESSED OR IMPLIED
DIEH4 EVANS AND COMPANY
PALM DFSERT RIDEVIIAPMENT AGENCY
COMPONENT UNIT FINANQAL STATEMENIS
WITH REPORT ON AUDIT
BY INDEPENDIIVT
CERTIFIED PUBLIC ACCOUNTANIS
Ji1NE 30, 1995
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PAI-L-4 DESERT REDEVELOPMENT AGF�CY
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TABLE OF CONTENTS FOR DISCUSSION AND REVIEW
SUBJECT TO CHANGE
June 30, 1995 NO OPINION EXPRESSED OR IMPLIED
DIEHL, EVANS AND COMPANY
Page
Number
Independent Auditors' Report 1
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and Account Groups 2 - 3
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances - All Governmental Fund Types 4 - 5
Notes to Financial Statements 6 - 24
Supplemental Information:
Combining Balance Sheet - All Debt Service Funds 25 - 26
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - All Debt Service Funds 27 - 28
Combining Balance Sheet - All Capital Projects Funds 29 - 30
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - All Capital Projects Funds 31 - 32
Supplemental Schedule - Tax Increment Shift to Educational
Revenue Augmentation Fund 33
Independent Auditors' Compliance Report 34
,� ;;,,�1"����lLG9��,��I D�pC�4
I J!�' DISCUSSION RND REVIEW
SUB)ECT TO CHANGE
�1C; `PINICN EXPRESSED OR IMPLIED
'lic'iL, E'r"ANS AND COMPANY
September 22, 1995
INDEPENDENT AUDITORS' REPORT
Agency Members
Palm Desert Redevelopment Agency
Palm Desert, California
We have audited the general purpose financial statements of the Palm DeseR Redevelopment Agency (a
component unit of the City of Palm Desect), as of and for the year ended June 30, 1995, as listed in the table
of contents. These financial statements are the responsibility of the Agency's management. Our responsibility
is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing
Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the general purpose financial statemen[s are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall general purpose financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material
respects, the financial position of the Palm Desert Redevelopment Agency as of June 3Q 1995, and the results
of its operations for the year then ended in conformity with generally accepted accounting principles.
As discussed in Note 11 to the financial statements, the ultimate realization of the Agency's investmen[ in
litigation is dependent on a fawrable outcome of the litigation. The effect of the present uncertainties on the
outcome and the amount of final adjustment to the net realizable value of the Agency's investment, if any, are
not presently determinable. Accordingly, the financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken
as a whole. The financial statements listed in the table of contents as supplementary information are presented
for purposes of additional analysis and are not a required part of the general purpose financial statements of
the Palm Desert Redevelopment Agency. The information has been subjected to the auditing procedures
applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all
material respects in relation to the general purpose financial statements taken as a whole.
-1-
. ., i I � ih.l� n�,U �I���I.�,I��I�1����I
FQft DISGUSSION AND REVIEW
SUBJECT TO CHANGE
NO OPINION EXPRESSED OR IMPLIED
DIEHL, EVANS AND COMPANY
GENERAL PURPOSE FINANQAL STATEMENTS
' F� �i DESERT REDEVELOPMENT AGENf pp�r7 rn� m 5�
I:A1995\CAFR\PDRDA\BC.WKl ��P��ISL�l1�1�tIJC�1�11 ����Il
COMBINED BALANCE SHEET—ALL FUND TYPES AND ACCOUN'���#��ON AND REVIEW
'""� T7 CI?AI�!GE
June 30, 1995 � � � ���'�'`D OR IMPLiED
� � � �� ',`',Y
Governmental Fund Types
Special Debt Capital
Revenue Service Projects
ASSETS AND OTf�R DEBITS
ASSETS:
Cash and investments(Notes 3 aud 11) S 746,888�S 22,039,498 � 3,702,513 �
Cash with fiscal agent(Notes 3 and 11) 782,681,� 35,265,445 � 36,872,668 /
Interestreceivable 3,481� 440,535 � 459,248 /
Due from other governmental agencies — — 3,700,919 /
Due from other funds — 2,851,423 � —
Loans receivable(Note 4) 1,821,601 � 5,899,000 � —
Prepaid expenses and deposits — — 3,157 �
Land held for resale(Note lg) — — —
Allowance for decline in value of land(Note lg) — — —
General flzed assets(Note� — — —
Amount available in debt service funds — — —
Amount to be provided for payment of long-term debt — — —
TOTALASSETS AND OTfIER DEBITS $ 3,354,651 $ 66,495,901 $ 44,738,505
LIABILITIES,EQUITY AND OTIiER CREDITS
LIABILITIES:
Accounta payable $ 339,274 �$ 61,519 �$ 237,134/
Accruedliabilities — — 9,183 /
Deferred revenue — 584,364 � —
Due to other funds — — 2,851,423 /
Amounts due under pass-through agreements(Note 6) — 10,579,574� —
General longterm debt(Note'� — — —
TOTAL LIABILITIES 339,274 11,225,457 3,097,740 /
EQUITYAND OTHER CREDITS:
Investment in general fixed assets — — —
Fund balances(Note 10): /
Reserved 2,885,018 ✓ 17,318,252 � 23,242,216 �
Unreserved—designated 130,35 ✓ 37,952,192 � 18,398,549 �
TOTAL EQUITYAND OTHER CREDITS 3,015,377 � 55,270,444 � 41,640,765 �
TOTAL LIABILITIES,EQUITY AND
OTHER CREDITS $ 3,354,651 $ 66,495,901 �$ 44,738,505 /
See independent auditor�report and notes to 6nancial statements.
—z—
^ ���ao�oaar��r o�p��
fOR DISCUSSION AND REVIEW
SUR�ECT TO CHANGE
�� r;,n,•, ",�_":ED GR I"APCIEQ
Aceount Groups Totals(Memorandum Only)
General General
Fized I,ong-Term
Assets Debt June 30, 1995 June 30, 1994
$ — $ — $ 26,488,899 $ 12,239,360
— — 72,920,794 61,480,618
— — 903,264 238,287
— — 3,700,919 194,200
— — 2,851,423 11,280,084
— — � 7,720,601 8,491,248
— 3,157 487,800
— — 3,065,000
/ (3,064,999)
65,252,523 ✓ — 65,252,523 56,784,555
— 55,270,444 55,270,444 36,760,062
— 111,359,556 111,359,556 95,968,938
$ 65,252,523 $ 166,630,000 $ 346,471,580 $ 283,925,153
$ — $ — $ 637,927 $ 1,113,291
— — 9,183 —
— — SS4,364 98,000
— — 2,851,423 11,280,084
— — 10,579,574 7,243,565
— 166,630,000 166,630,000 132,729,000
— 166,630,000 181,292,471 152,463,940
65,252,523 J — 65,252,523 56,784,555
— — 43,445,486 42,207,679
— — 56,481,100 32,468,979
65,252,523 — 165,179,109 131,461,213
$ 65,252,523 $ 166,630,000 $ 346,471,580 $ 283,925,153
�
T� M DESERT REDEVELOPMENT AGEN'^' f,1I�N� I��,1
I:\1995\CAFR\PDRDA\RC.WKl ����Q�Q��;,�Wll �WI„W�
COMBINED STATEMENT OF REVENUES,EXPENDITURE${.y}�$CUSSION AND REVIEW
CHANGES IN FUND BALANCES—ALL GOVERNMENTAL FUND'I��I�;T TO CHANGE
^ � '°��^ ���SSED OR �MPLIED
For the year ended June 30, 1995 �� ""iAPnely
Special Debt Capital
Revenue Service Proiects
REVENUES:
Taz increment $ — S 22,822,814 � —
Intergovernmental revenues — � — / 4,309 /
Use of money and property ll5,281 1,628,383 784,464 �
Sale d land — — —
Reimbursement from otLer agencies — � 461,799 � 3,692,719 �
Otherrevenues 8,000 1,113 �
TOTALREVENUES 183,281 24,912,996 4,482,605
EXPENDITURES:
Administrative costs 316,361 — 637,881 �
Professionai services — — 690,271 �
Planning,survey and design — — 650,163 �
Assessment district taxes — —
Capital outlay 3,829,349 l — 6,764,342 �
Cost of tand sold — — —
Land purchases — / — 3,742,206 �
Housing subsidies 4,618,356 — —
Educational revenue augmentation fund — 781,872� —
Payment to other grnemmental agencies — 6,502,102 � —
Debt servico:
Bond issuance costs — 613,623� —
Hond disaount — 351,438 / —
Iuterestand Gscaicharges 471,005�' 8,260,985 � —
Principai payments 260,000 1,954,000 / —
TOTAL F,XPENDITURES 9,495,071 18,464,020 12,484,863
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (9,311,790) 6,448,976 (8,002,258)
OTHER FINANCING SOURCES(USES): /
Proceeds from bonds(Note 7b) — J 18,850,555i 9,264,445 �
Operating transfersin 6,599,679 8,547,692 � 2,118,470 l
Operating transfers out — (15,336,841) � (1,929,000) �
Advance from City(Note 7a) — — 8>000,000 �
TOTAL OTHER FINANCING SOURCES(USES) 6,599,679 12,061,406 17,453,915
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES AND
OTHER FINANCINGUSES (2,712,111) 18,510,382� 9,451,657 �
FUNDBALANCES—BEGINNINGOFYEAR 5,727,488 ✓ 36,'760,062 � 32,189,108 J
FUND BALANCES—END OF YEAR $ 3.015377 $ 55.270.444/$ 41.640,765 �
See independent auditor�report and notes to financial statements.
—4—
r���ao�oaa�� oaa��
FpR DISCUSSION AND REVIEW
SU�1[CT TO GNANGt
NO bPINIGN EXFRESSED OR IMPiIED
UIE�iL, EVAb7S AND 4;6MI'P,PlY
Totals
(Memorandum OnlY1
June 30, June 30,
1995 1994
S 22,822,814 $ 21,086,221
4,309 —
2,588,128 6,555,491
— 5,969,999
4,154,518 491,571
9,113 415.778
29,578,882 34,519,060
954,242 535,094
690,271 1,350,046
650,163 98,254
— 202,375
10,593,691 5,420,157
— 5,031,432
3,742,206 12,012,348
4,618,356 3,509,511
781,872 781,686
6,502,102 5,637,629
613,623 —
351,438 —
8,731,990 8,481,410
2,214,000 5,100,532
40,443,954 48,160,474
(10,865,072) (13,641,414)
28,115,000 —
17,265,841 12,479,988
(17,265,841) (12,479,988)
8,000,000 5,000,000
36,115,000 5,000,000
25,249,928 (8,641,414)
74,676,658 83r318,072
$ 99.926.586 $ 74.676.658
—5—
p[�(�d��]�ap��l DG3p[r�
FOR DISCUSSION APJD REVIEW
SI;�iFCT TO CHANf,E
i1�'�, O''� :;j �rn r•n I^r1F(.iF�1
NOTES TO FINANCIAL STATEMENTS
PAT-'4 DESERT REDEVELOPMENT AGF'iCY
r'�`�a���f�p��l DG�pff4
NOTES TO FINANCIAL STATEMENTS ��� ,�SCUSSION AND REVIEW
��U�IFCi TO CHANGE
June 30, 1995 � I �,���f3 OR IMPLIED
'(„�Pi't
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICTES:
a. Description of Funds and Account Groups:
The Agency utilizes fund accounting. Its accounts are organized on the basis of funds
and account groups, each of which is considered a separate accounting entity. T'he
operations of each fund are accounted for with a separate set of self-balancing accounts
that comprises its assets, liabilities, fund equity, revenues and expenditures. Govemment
resources are allocated and accounted for in individual funds based upon the purposes
for which they are to be spent and the means by which spending activities are controlled.
The various funds and account groups are classified for reporting purposes as follows:
Governmental Funds:
Special Revenue Fund - Used to account for the proceeds of specific revenue sources or
to finance specified activities as required by law or administrative regulation. The
Special Revenue Fund consists solely of the Low and Moderate Income Housing Fund.
Debt Service Funds - Used to account for the payment of interest and principal on
long-term obligations.
Capital Pmjects Funds - Used to account for financial resources used for the acquisition
or construction of redevelopment projects.
Account Groups:
The General Fixed Asset Account Gmun - Used to maintain control and cost information
on capital assets owned by the Agency. General fixed assets are recorded as
expenditures in the Capital Projects Fund at the time of purchase. These assets are
capitalized at cost. No depreciation is provided on general fixed assets.
The General L,ong-Term Debt Account Groun - Used to account for the Agency's
liability for long-term indebtedness.
See independent auditors' report.
-6-
PAT-'Q DESERT REDEVELOPMENT AGF'uCY
NOTES TO FINANCIAL ST.ATEMENTS ����if��, �I�'i�(�L��u� ������ ?'�i����
(Continued) FOR L`ISCUSSION AfdD REVlLV�'
Sl!BJECT (G CHr1NGe
June 30, 1995 N� �%P���EON E„PRESSEC �R IMFLiED
:'IC��I, F��f{P1�; A.I:sl, ;ylfrif:�.n�,,�t.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Accounting:
Basis of accounting refers to when revenues and expenditures are recognized in the
accounts and reported in the financial statements. All govemmental funds are accounted
for using the modified accrual basis of accounting. Revenues are recognized when they
become measurable and available as net current assets. Expenditures generally are
recognized under the accrual basis of accounting when the related fund liability is
incurred. An exception to this general rule is principal and interest on general long-term
debt, which are recognized when due.
a Measurement Focus:
All governmental funds are accounted for on a spending or "financial flow" measurement
focus. This means that only current assets and current liabilities are generally included
on their balance sheets. Their reported fund balance (net current assets) is considered
a measure of "available spendable resources". Governmental fund operating statements
present increases (revenues and other financing sources) and decreases (expenditures and
other financing uses) in net current assets.
Noncurrent portions of long-term receivables due to governmental funds are reported on
their balance sheets, in spite of their spending measurement focus. Special reporting
treatments are used to indicate, however, that they should not be considered "available
spendable resources", since they do notrepresent netcurrent assets. Noncurrent portions
of long-term receivables are offset by fund balance reserve accounts.
d. Budgetary Accounting:
The Agency uses the following procedures in establishing its budgetary data:
1) Before the beginning of the fiscal year, the Executive Director submits to the Board
of Directors a proposed budget for the year commencing the following July 1.
2) Public hearings are conducted to obtain taxpayer comments.
3) The Budget is subsequently adopted through passage of a resolution.
See independent auditors' report.
-7-
PAI—' DESERT REDEVELOPMENT AGP"`;Y ����D���p�� D�p��
NOTES TO FINANCIAL STATEMENTS FOR DISCUSSION APlD REVIEW
(Continued) �'!��E�T r�) CHANGE
�,,.
� ":f' If41PI.IF�
June 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. Budgetary Accounting (Continued):
4) Original appropriations are modified by supplementary appropriations and transfers
among budget categories. The Board approves all significant changes. Annual
appropriations lapse at year end.
5) Encumbrances and Continuing Appropriations aze rebudgeted as of July 1 by Board
action.
6) Formal budgetary integration is employed as a management control device during the
year for the Special Revenue and Capital Project Funds. Formal budgetary
integration is not employed for Debt Service Funds because effective budgetary
control is alternatively achieved through debt indenture provisions.
7) Budgets are adopted on a basis consistent with generally accepted accounting
principles.
e. Encumbrances:
Encumbrance accounting, under which purchase orders, contracts and other commitments
for the expenditure of monies are recorded in order to reserve that portion of the
applicable appropriation, is employed as an extension of formal budgetary integration.
Encumbrances outstanding at year-end are reported as reservations of fund balances since
they are commitments, but do not constitute expenditures or liabilities.
f. Investments:
Invesunents are stated at cost. No loss is recorded when market values decline below
cost as such declines are considered temporary. The Agency intends to either hold the
investments until maturity, or until mazket values equal or exceed cost. (See Note 11).
g. Land Held for Resale:
Costs of land held for resale are capitalized in the Special Revenue Fund as inventory
at the lower of acquisition cost or net realizable value. As of June 3Q 1994, the cost
of land held for resale was $3,065,000, with an allowance for decline in value in the
amount of $3,064,999. The land was sold in fiscal year 1994-95.
See independent auditors' report.
-8-
PAL�� DESERT REDEVELOPMENT AGF";^Y
���°?��,��l��lp��1 D�pff4
NO'I'ES TO FINANCIAL STATEMENTS FO^ DISCUSSION AND REVIEW
(Continued) ,��^PC�tOCHANGE
, �. , ,��i Ia'" ,�'D
June 3Q 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
h. Property Tax Calendar:
Property taxes are assessed and collected each fiscal year according to the following
property tax calendar:
Lien Date March 1
I.evy Date July 1 to June 30
Due Date November 1- lst Installment
March 1- 2nd Installment
Delinquent Date December 10- lst Installment
April 10- 2nd Installment
Under California law, property taxes are assessed and collected by the counties up to 1%
of assessed value, plus other increases approved by the voters. The property taxes go
into a pool, and are then allocated to the agencies based on complex formulas prescribed
by the state statutes.
i. Relationship to the City of Falm Desert:
The Community Redevelopment Agency of the City of Palm Desert is an integral part
of the reporting entiry of the City of Palm Desert, California. The funds and account
groups of the Agency have been included within the scope of the general purpose
financial statements of the City because the City Council of the City of Palm Desert
exercises oversight responsibility over the operations of the Agency. Only the funds and
account groups of [he Agency are included herein and these financial statements,
therefore, do not purport to represent the financial position or results of operations of
the City of Palm Desert.
j. Comparative Data:
Comparative total data for the prior year have been presented in the accompanying
financial statements in order to provide an understanding of changes in the Agency's
financial position and operations. However, comparative (i.e., presentation of prior year
totals by fund type) data have not been presented in each of the statements since their
inclusion would make the statements unduly complex and difficult to read.
See independent auditors' report.
-9-
PAI'd DESERT REDEVELOPMENT AGEu�'Y o o �a����p�� D�p��
NOTES TO FINANCIAL STATEMENTS FOR DISCUSSION AND REVIEW
(Continued) SUBJECT TO CHANGE
�'p OPIP�JIOn; r-XPRESSED OR IMPLIED
, •�,;:;� r �, ^-npnn,niY
June 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
k. Total Columns on Combined Statements:
Total columns on the combined statements are captioned "Memorandum Only" to indicate
that they are presented only to facilitate financial analysis. Data in these columns is not
comparable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
2. ORGANIZATION AND TAX INCREMENT FINANCING:
The Agency is a separate govemmental entity as prescribed in the California Community
Redevelopment law and as set forth in the Health and Safety Code of the State of California.
The Agency consists of Pmject Area 1, Project Area 2, Project Area 3 and Project Area 4.
Agency expenses include capital impmvement projects and operating costs which include
required staff support and consultant services.
The Agency's primary source of revenue comes from property taxes, referred to in the
accompanying financial statements as "tax increment revenue". The assessed valuation of
all property within each project area was determined on the date of adoption of the Project
Area. Pmperty taxes related to the incremental increase in assessed values after the
adoption of the Project Area have been allocated to the Agency; all taxes on the "frozen"
assessed valuation of the property have been allocated to the City and other districts.
3. CASH AND INVESTMENTS:
Cash and investments reponed in the accompanying financial statements consisted of the
following:
Cash and investments pooled with the City $ 22,276,755
Investtnents in litigation (Note 11) 4,212,144
Cash and investments with fiscal agent �72.920,794
$ 99.409.693
The Agency's funds are pooled with the City of Falm Desert cash and investments in order
to generate optimum interest income. The information required by GASB Statement No. 3
related to authorized investments, credit risk, etc. is available in the annual report for the
City.
See independent auditors' repon.
-10-
PAT-'4 DESERT REDEVELOPMENT AGF'�TCY G'�f�a���ap��7 DG�pff�
NOTES TO FINANCIAL STATEMENTS FOR JISCUSSION AND REVIEW
(Continued) S�1�JECi FO GHANGE
r , �;�,� , �xF,��_ss�o oR im?i�Fo
June 30, 1995
3. CASA AND INVESTMENTS (CONTINUED):
Cash and investments held by fiscal agent consisted of the following:
Market
Cost Ualues
Bank of America $ 72,911,473 $73,525,836
Bank of America - Housing 9.321 9321
$ 72.920.794 73 535 157
4. LOANS RECEIVABLE:
Snecial Revenue Fund
Loans receivable include the following:
a) A $1,375,100 loan receivable from Portola Palms Mobilehome Park Acquisition
Association, Inc. (Association). Funds in the amount of $1,701,500 were loaned to the
Association to allow the Association to purchase the first trust deed note securing the
property from Ring Financial, Inc. The Redevelopment Agency's loan is secured by a
first trust deed and as of June 30 1995, $326,400 has been repaid to the Redevelopment
Agency fmm the sale of individual lots by the Association. The remaining balance will
be repaid as the Association sells other lots in the mobile home park.
b) Other loans of$429,000 consists of loans made to low income households to assist in the
purchase of individual homes. The notes are secured by a deed of trust and will not be
repaid until the homes are sold.
See independent auditors' report.
-11-
PAi''T DESERT REDEVELOPMENT AGF'`�CY
C�L3�d�[�Dap�3�( DG�p��
NOTES T'O FINANCIAL STATEMENTS FOR DISCUSSION AND REVIEW
(Continued) SUBJECT TO CHANGE
NO OPINION EXPRESSED OR IMPLIED
June 30, 1995 DIEHL, EVANS AND COMPANY
4. LOANS RECEIVABLE (CONTINUED):
Debt Service Fund
Included in loans receivable is a $5,899,000 loan to "The Bmthers", a California partnership
which developed a portion of the Civic Center Site. The Redevelopment Agency funded the
loan by remitting to Palm Desert National Bank the $5,899,000 to set up a construction loan
to the Bmthers. The note is payable to the Palm Desert National Bank but has been
assigned to the Redevelopment Agency. Interest accrues on the unpaid principal balance at
the rate of 10 percent per annum. Monthly payments of interest only are payable until
June 1, 1996, or five years after the issuance of a certificate of completion, at which tune
principal and interest shall be paid in equal monthly installments in an amount sufficient to
apply all principal and interest in full within 25 years of the issuance of a certificate of
completion.
5. GENERAL FIXED ASSETS:
A summary of changes in General Fixed Assets for the year ended June 30, 1995 is as
follows:
Beginning Ending
Balance Additions Deletions Balance
Land $40,036,480 $ 3,796,821 $ - $43,833,301
Buildings and improvements 15,211,155 1,609,066 - 16,820,221
Equipment - 8,079 - 8,079
Work-in-Pmgress 1.536.920 3.054.002 - 4,590.922
$56.784.555 $ 8.467.968 $ - $65.252.523
Certain land has been included in the general fixed assets account group until a
determination is made on the use of the land.
6. AMOUNTS DUE UNDER PASS-THROUGH AGREEMENTS:
Property taxes related to the incremental increase in assessed values after the adoption of
the Redevelopment Plan are, except where otherwise provided by specific agreement,
allocated to the Agency. The Agency has entered into various pass-through agreements with
other agencies to allocate its tax increment revenue. At June 30, 1995, the Agency is
holding $10,579,574 in trust on behalf of other agencies and entities related to specific
pass-through agreements detailed as follows:
See independent auditors' report.
-12-
PA�-"4 DESERT REDEVELOPMENT AGF�CY
�tin��I�O���ap��7 D�pG�4
NOTES T'O FINANCIAL STATEMENTS FOR DISCUSSION AND REVIEW
(Continued) SUBJfCT TO CHANGE
NO OPINION EXPRESSED OR IMPLIED
June 30, 1995 dIEHL, EVANS AND COMPANY
6. AMOUNTS DUE UNDER PASS-THROUGH AGREEMENTS (CONTINUED):
Balance Balance
at July 1, at June 30,
Entitv 1994 Additions Pavmenu 1995
Riverside Counry - Capital
Improvement $ 4,776,468 $ 3,173,396 $ 304,385 $ 7,645,479
Riverside County - Schools 51,271 59,949 - 111,220
Riverside County - Library 221,370 207,031 - 428,401
Riverside County - Fire 268,332 326,095 414,500 179,927
Coachella Valley Mosyuito
Abatement District 319,817 104,227 319,817 104,227
Coachella Ualley Water
District 74,221 106,440 - 180,661
Desert Community College
District 44,001 100,258 44,001 100,258
Desert Sands Unified School
District 739,044 508,953 157,412 1,090,585
Coachella Valley Recreation
and Fark District 51,303 35,661 51,303 35,661
Coachella Ualley Resources
District 2,209 392 - 2,601
Palm Springs Unified Schooi
District 4,816 256 - 5,072
County Juvenile Health
District 326,689 482,688 497,244 312,133
Ahmanson Trust 364.024 19.325 383349
$ 7.243.565 $ 5.124,671 1 788 662 $ 10.579.574
7. GENERAL LONG TERM DEBT:
The changes in the General Long-Term for the year ended June 30, 1995 were as follows:
Balance at Balance at
July 1, 7une 30,
1994 Additions Deletions 1995
Advances from City $ 11,334,000 $ 8,000,000 $ 334,000 $ 19,000,000
Tax Allocation Bonds 121.395,000 28,115,000 1.880.000 147.630.000
$132.729.000 $36.115.000 $ 2.214.000 $166.630.000
See independent auditors' report.
-13-
PA�I DESERT REDEVELOPMENT AGF�CY
NOTES TO FINANCIAL STATEMENTS _ � � i��;��� �� �'��a,]���
(Continued) E��R iiISCUSSION AND REVIEW
SUSJcCTTO CHANGE
June 3Q 1995 t��� �������ll(iN EXPRESSEO OR IMPLIED
::�F!IL. EVi:Pl;Ai�iDCpMPANY
7. GENERAL LONG TERM DEBT (CONTINUED):
a. Advances From City:
The Redevelopment Agency has received advances from the City which have been
cecorded as an "Other Financing Sources" in the Agency's Capital Project Funds. Since
payment by the Agency back to the City will be made from tax increment revenues in
future years, the debt from the Agency to the City has been classified in the I.ong-Term
Debt account group.
Below is a summary of the activity for the advances from the City to the Redevelopment
Agency:
Date of Rates of Amount Beginning Ending
Issue Interest Authorized Balance Additions Pavments Balance
12/OS/86 Uaries $6,000,000 $ 6,000,000 $ - $ - $ 6,000,000
12/12/91 Uaries 120,000 120,000 - 120,000 -
O1/14/93 Uaries 164,000 164,000 - 164,000 -
06/24/93 Varies 50,000 50,000 - 50,000 -
09/23/93 Uaries 5,000,000 5,000,000 - - 5,000,000
03/23/95 Uaries 5,000,000 8.000.000 8,000.000
Principal Balance 11,334,000 8,000,000 334,000 19,000,000
Accrued Interest 327.514 327.514
$11334.000 8 327 514 661 514 $19.000.000
b. Tax Allocation Bonds:
Tax allocation bonds are special obligations of the Agency and the Falm pesert Financing
Authority (a component unit of [he Redevelopment Agency), and are secured by an
irrevocable pledge of tax revenues and other funds as provided under the Bond
Resolution. The Bonds, and any interest thereon are not a debt of the City, the State of
California or any of its political subdivisions and neither the City, the State of California
nor any of its political subdivisions is liable on the Bonds, nor in any event shall the
Bonds, and interest thereon be payable out of any funds or properties other than those
provided under the Bond Resolution.
See independent auditors' report.
-14-
PAI'-� DESERT REDEVELOPMENT AGF'�Y
�f ��nS � �il�l��;:��JJLi ll ���Ji�L� LI ����
NOTES TO FINANCIAL STATEMENTS FOk �I3CUSSION F,ND REVIEW
(Continued) SUBIECT TO CHANGE
Nn UP�rdlO[v EXPR�SSED OR IMPLIED
June 30, 1995 �)�ENL, EVAr•!S aN�J COrriPANY
7. GENERAL LONG TERM DEBT (CONTINUED):
b. Tax Allocation Bonds (Continued):
1995 Series Tax Allocation Revenue Bonds (Proiect Area No. 11
In June 1995, the Palm Desert Financing Authority issued $24,025,000 of Tax Allocation
Bonds, (Pmject Area No. 1) Series 1995. The Palm Desert Financing Authority loaned
the bond proceeds to the Falm Desert Redevelopment Agency to finance certain
redevelopment activities of the Agency in Project Area No. 1. Interest rates on the bonds
vary from 4.0% to 5.2% per annum payable semiannually on April 1 and October 1 with
principal maturing annually.
The future debt service requirements on the 1995 Series Tax Allocation Revenue Bonds
(Project Area No. 1) are as follows:
Year Ending
June 30. Princinal Interest Total
1996 $ - $ 1,169,848 $ 1,169,848
1997 160,000 1,403,818 1,563,818
1998 170,000 1,396,778 1,566,778
1999 180,000 1,388,873 1,568,873
2000 185,000 1,380,323 1,565,323
Thereafter 23,330,000 22,497,015 45,827,015
$ 24.025.000 $ 29.236.655 $ 53.261.655
See independent auditors' report.
-15-
PAI-"�t DESERT REDEVELOPMENT AGF�CY
NOTES TO FINANCIAL STATEMENTS _ ;, ��� �, u,
(Continued) s03 iEGi iO CHANGE
�uU UPIPJIQN EXPRESSED OR IMPLIED
June 30, 1995 DIEHL, EVANS AND COMPANY
7. GENERAL LONG TERM DEBT (CONTINUED):
b. Tax Allocation Bonds (Continued):
1995 Series Tax Allocation Revenue Bonds (Project Area No. 21
In June 1995, The Palm Desert Financing Authority issued $4,090,000 of Tax Allocation
Bonds, (Pmject Area No. 2) Series 1995. The Palm Desert Financing Authority loaned
the bond proceeds to the Palm Desert Redevelopment Agency to finance certain
redevelopment activities of the Agency in Project Area No. 2. Interest rates on the bonds
vary from 4.75% to 5.2% per annum payable semiannually on February 1 and August 1
with principal maturing annually on August 1.
The future debt service requirements on the 1995 Series Tax Allocation Revenues Bonds
(Pmject Area No. 2) are as follows:
Year Ending
7une 30. Principal Interest Total
1996 $ - $ 159,957 $ 159,957
1997 - 239,935 239,935
1998 - 239,935 239,935
1999 - 239,935 239,935
2000 25,000 239,342 264,342
Thereafter 4,065,000 4,009.455 8.074.455
$ 4.090.000 $ 5.128.559 $ 9.218,559
See independent auditors' report.
-16-
PAI� DESERT REDEVELOPMENT AGFT'�Y
NOTES TO FINANCIAL STATEMENTS �OR �,I:,Z�Sc�ON ni�u ;�JI[V� �
(Continued) SUB;ECf t0 CHANGE
NO �PINION EXPRESSED OR IMPLIED
June 30, 1995 DIEHL, EVANS AND COMPANY
7. GENERAL LONG TERM DEBT (CONTINUED):
b. Tax Allocation Bonds (Continued):
1992 Series A Tax Allocation Revenue Bonds (Project Area No. 1 as Amendedl
In April 1992, the Palm Desert Financing Authority issued $100,000,000 in Palm Desert
Financing Authority Tax Allocation Revenue Bonds (Project Area No. 1 as Amended)
1992 Series A. $42,764,702 of the $100,000,000 was loaned to the Agency to advance
refund the 1985 Tax Allocation Bonds, 1985 Tax Allocation Refunding Bonds and the
1989 Tax Allocation Bonds. $40,844,733 was loaned to the Redevelopment Agency to
fund additional projects in the project area. Interest on the Current Interest Bonds (the
"Current Interest Bonds") (which consist of the portion of the Bonds not constituting the
Dutch Action Floating Securities and the Inverse Floating Securities, described later),
varies from 4.00% to 6.625% and is payable on October 1, 1992, and semi-annually
thereafter on April 1 and October 1. The Bonds maturing on April 1, 2022 consist of
$39,350,000 Dutch Auction Floating Securities and $39,350,000 Inverse Floating
Securities. Interest on the Dutch Auction Floating Securities and Inverse Floating
Securities was initially paid on 7une 4, 1992 and is due generally every 35 days from that
date.
The future estimated debt service requirements on the 1992 Series A Tax Allocation
Revenue Bonds (Project Area No. i as Amended) are as follows:
Year Ending
June 30 Principal Interest Total
1996 $ 1,425,000 $ 5,852,563 $ 7,277,563
1997 1,580,000 5,777,751 7,357,751
1998 1,670,000 6,170,479 7,840,479
1999 1,760,000 5,595,557 7,355,557
2000 1,860,000 5,974,935 7,834,935
Thereafter 87.795.000 77.056.353 164.851.353
$ 96,090,000 106.427,638 $202.517,638
See independent auditors' report.
-17-
PAI'-� DESERT REDEVELOPMENT AGF�Y
NOTES TO FINANCIAL STATEMENTS
(Continued) � ' ��- ` " ���'"
, �d�ELi i0 CrIANGE
iJ0 OPIPJIGN EXVRESSED OR IMPLIED
June 30, 1995 DIEHL, EVANS AND COMPANY
7. GENERAL LONG TERM DEBT (CONTINUED):
b. Tax Allocation Bonds (Continued):
1992 Series A Tax Allocation Revenue Bonds (Project Area No. 2)
In August 1992, the Palm Desert Financing Authority issued $17,505,000 of Tax
Allocation Bonds, (Project Area No. 2) 1992 Series A. The Palm Desert Financing
Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to finance
certain redevelopment activities of the Agency in Pmject Area No. 2. Interest rates on
the bonds vary from 2.7% to 6.125% per annum payable semiannually on February 1
and August 1 with principal maturing annually on August 1 from 1993 to 2002.
The future debt service requirements on the 1992 Series A Tax Allocation Revenue
Bonds (Project Area No. 2) are as follows:
Year Ending
June 30. Principal Interest Total
1996 $ 265,000 $ 1,003,713 $ 1,268,713
1997 280,000 992,462 1,272,462
1998 290,000 979,988 1,269,988
1999 300,000 966,337 1,266,337
2000 315,000 951,338 1,266,338
Thereafter 15.545.000 13,341.291 28.886.291
16.995.000 18.235.129 $ 35.230.129
See independent auditors' report.
-18-
PA7-"� DESERT REDEVELOPMENT AGF�CY
NOTES TO FINANCIAL STATEMENTS ��� G r�i u , �c;u ;;
(Continued) f�H DISl;USSION AND REVIEW
SUBJECT TO CHANGE
June 30, 1995 NO OPINION EXPRfSSED OR IMPLIED
DIEHL,EVANS AND COMPANY
7. GENERAL LONG TERM DEBT (CONTINUED):
b. Tu� Allocation Bonds (Continued):
1988 Tax Allocation Bonds
The Bonds were issued in an original amount of $7,800,000 on September 1, 1988 to
finance improvements in Project Area 1 as amended. Interest rates on the Bonds vary
from 5.75% to 7.30% with interest payable semi-annually on March 1 and September 1
with principal maturing annually on September 1. Debt service requirements to maturiry
are as follows:
Year Ending
June 30. Principal Interest Total
1996 $ 280,000 $ 453,045 $ 733,045
1997 295,000 433,635 728,635
1998 320,000 412,565 732,565
1999 340,000 389,625 729,625
2000 365,000 364,768 729,768
2001 390,000 337,965 727,965
2002 420,000 308,790 728,790
2003 455,000 276,853 731,853
2004 490,000 242,360 732,360
2005 525,000 205,313 730,313
2006 570,000 165,345 735,345
2007 610,000 122,275 732,275
2008 660,000 75,920 735,920
2009 710.000 25 915 735.915
6.430,000 $ 3.814,374 $ 10.244,374
See independent auditors' report.
-19-
PAI'Q DESERT REDEVELOPMENT AGFs�Y
� �il'���1�'Jt�iiJL�lin�V� iJ�u'�tr 1
NOTES TO FINANCIAL STATEMENTS FOR DISCUSSION AND REVIENi
(Continued) SUBJECT TO CHANGE
P10 OPINION EXPRESSED OR IMPLIED
June 30, 1995 DIEHL, EVANS AND COMPANY
7 GENERAL LONG TERM DEBT (CONTINUED)
b. Tax Allocation Bonds (Continued):
Below is a summary of the changes in Tax Allocation Bonds:
Balance at Balance at
Julv 1. 1994 Additions Payments June 30. 1995
1995 Tax Allocation Bonds
(Project Area No. 1
as Amended) $ - $ 24,025,000 $ - $ 24,025,000
1995 Taac Allocation Bonds
(Projec[ Area No. 2) - 4,090,000 - 4,09Q000
1992 Ta�c Allocation Bonds
(Project Area No.l
as Amended) 9"I,450,000 - 1,36Q000 96,090.000
1992 Tatc Allocation Bonds
(Project Area No. 2) 17,255,000 - 260,000 16,995,000
1988 Tax Allocation Bonds 6.690,000 260.000 6.430.000
$ 121.395.000 $ 28.115.000 $ 1.880.000 $ 147,630.000
See independent auditors' report.
-20-
PAI"� DESERT REDEVELOPMENT AGF�CI'
NOTES TO FINANCIAL STATEMEN'I'S �[���J(�(�(�'�(�lI ���;�i�,!, ",:
(Continued) FOR DISCUSSION AND REVI�t;
SUBJEC7T0 CHANGE
June 30, 1995 NO OPINION EXPRESSED OR IMPL;ED
DIEHL, EVANS AND COMPANY
8. BOND REQUIREMENTS:
At June 30, 1995 the reserve balance requirements and actual balances were as follows:
Issue Requirement Actual
1988 Tax Allocation Bonds $ 643,000 $ 773,359
1992 Series A Tax Allocation Bonds
(Project Area No. 1 as Amended) $ 7,841,271 $ 16,189,558
1992 Series A Tax Allocation Bonds
(Pmject Aiea No. 2) $ 1,278,556 $ 1,448,992
1995 Series Tax Allocation Bonds
(Pmject Area No. 1 as Amended) $ 1,955,525 $ 15,327,950
1995 Series Tax Allocation Bonds
(Project Area No. 2) $ 343,900 $ 2,560,087
These actual amounts are included in the Fund Balance Reserved or designated for Debt
Service (see Note 10).
9. DEFEASED OBLIGATIONS:
The Agency defeased certain Redevelopment obligations by placing the proceeds of new
obligations in an irrevocable trust to provide for all future debt service payments on the old
obligations. Accordingly, the trust account assets and the liability for the defeased
obligations are not included in the accompanying financial statements.
The amount of defeased debts still ouutanding at June 30, 1995 was as follows:
Amount
Defeased
Issue Outstandine
1982 Tax Allocation Bonds $ 5,290,000
1985 Refunding Tax Allocation Bonds $ 13,000,000
1985 Tax Allocation Bonds $ 20,095,000
1989 Tax Allocation $ 4,935,000
See independent auditors' report.
-21-
PAT�'4 DESERT REDEVELOPMENT AGF�CY
NOTES TO FINANCIAL STATEMENTS ���a������� D���U
(Continued) FOR DISCUSSION AND REVIEW
SUBJECTTO CHANGE
NO OPINION EXPRESSED OR IMPLIED
June 30, 1995 DIEHL, EVANS AND COMPANY
10. RESERVES AND DESIGNATIONS OF FUND EQUITY:
Special Debt Capital
Revenue Service Projects
Reserves Fund Fund Fund
Continuing appropriations $ - $ - $21,974,708
Encumbrances 26,431 - 1,264,351
Receivables 1,821,601 5,899,000 -
Prepaid expense - - 3,157
Debt service 643,000 11,419,252 -
Low income purposes 393.986 -
2 885 018 17,318,252 $23,242.216
Desienations
Debt service $ 130,359 $ 37,952,192 $ -
Capital outlay - - 18.398.549
130 359 $ 37.952.192 $ 18.398.549
Reserved for Continuing Approoriations - This reserve is for appropriations for capital
projects which are unexpected as of June 30, 1995 and are carried forward as continuing
appropriations to be expended in 1995-96.
Reserved for Encumbrances - These reserves represen[ the portion of purchase orders
awarded for which the goods or services had not yet been received at June 30, 1995.
Although all appropriations lapse at year-end, even if encumbered, the City intends either
to honor the contracts in progress or to cancel them. Reserve for encumbrances are
rebudgeted on July 1, by Council action.
Reserved for Receivables - This reserve is set up to reflect the non-current portion
receivables so that they will not be considered as current funds available.
Reserved for Prepaid Expenses - This reserve represents conuacted obligations for cash
payments made before June 30, 1995, but not recognized as an expenditure until after
July 1, 1995.
Reserved for Debt Service -These reserves for Debt Service represent reserves accumulated
by the Agency that are legally restricted to the payment of long-term debt principal and
interest amounts that mature in future years.
See independent auditors' report.
_22_
PAL y" DESERT REDEVELOPMENT AGE�'Y
NOTES TO FINANCIAL STATEMENTS ii���I�L�uU`I�l1�lLvu�iY ��;w3u„ii'�I
(Continued) FOR DISCUSSION AND REVIEW
SUBJECTTO CHANGE
June 30, 1995 NO OPINION EXPRESSED OR IMPLIED
DIEHL,EVANS AND COMPANY
10. RESERVES AND DESIGNATIONS OF FUND EQUITY (CONTINUED):
Reserved for Low Income Purposes - This reserve is for amounts set aside from tax
increment money received by the Agency and is to be spent on projects benefitting low
income families.
Desienated for Debt Service - These funds are designated for payment of principal and
interest on General Long-Term Debt.
Desienated for Capital Outlay - These funds are designed for capital outlay for future
projects.
11. INVESTMENTS IN LITIGATION:
In December 1991, it was learned that the Securities and Exchange Commission (SEC) was
conducting an investigation of the Institutional Treasury Management (ITM) and had frozen
certain assets administered by ITM including the Agency's. It was subsequently announced
that ITM had diverted funds and/or securities in the client accounts to other accounts
without the client's knowledge.
The Redevelopment Agency internal records identify $4,212,144 being invested with ITM
but the investments have not been verified with a third party. At June 3Q 1995, the
financial statements reflect the amounts invested with ITM which have not been confirmed
with a third party.
The Agency has retained counsel to discover the facts in this case and to take appropriate
legal action to protect the interests of the Agency. Management is confident that the actions
legal counsel has taken to date will result in the best possible return of the funds. As of
June 30, 1995, management does not know the amount of funds the court may award from
the investment principal of $4,212,144. The Agency will pursue recovery from third
parties of any amounu not recovered.
See independent auditors' report.
-23-
PAL'4 DESERT TtEDBVELOPMENT AGF°-TCY
���a��oa���r ���i�i,�i,
NOTES TO FINANCIAL STATEMENTS FOR DISCUSSION AND REVIEW
(Continued) SUBJECT TO CHANGE
NO OPINION EXPRESSED OR IMPLIED
June 30, 1995 DIEHL, EVANS AND COMPANY
12. M012n'iAGE REVENUE BONDS:
In August 1994, the Palm Desert Redevelopment Agency issued $15,100,000 in Variable
Rate Demand 1994 Multifamily Housing Revenue Bonds (Bonds). The Agency issued the
bonds to £mance a loan to Civic Center Barrio Housing Corporation (Corporation), a
California Non-Pmfit Public Benefit Corporation pursuant to a financing agreement between
the Agency and the Corporation dated August 1, 1994 to provide funds to pmvide
permanent financing for 161 newly constructed residences and related impmvements in the
City of Palm Desert to be owned by the Corporation and sold or leased, with an option to
purchase, to low and moderate income persons and families. The Bonds are lunited
revenue obligations of the Agency payable solely from the repayment of mortgage loans
(with respect to the Bonds other than the Tax Allocation Bonds), the pledged tax revenues
(with respect to the Tax Allocation Bonds), and the funds and accounts pledged under the
indenture. The Agency has pledged tax revenues in a sum not to exceed $600,000 per
annum to pay debt service on any bonds converted to Tax Allocation Bonds.
13. SUBSEQUENT EVENT
In August 1995, the Palm Desert Financing Authority issued $6,305,000 in Tax Allocation
Revenue Refunding Bonds 1995 Series A. The proceeds from the tax allocation bonds were
loaned to the Agency to provide funds to refund in advance $6,430,000 in the 1988 Tax
Allocation Bonds (see Note 7). The advance refunding resulted in an economic gain of
$907,760 (difference between the present value of the annual debt service payments
between the old debt and new debt) and a decrease in aggregate debt service payments of
$1,441,052.
See independent auditors' report.
-�-
'�',M DESERT REDEVELOPMENT AGEN"" �
I:A1995\CAFR\PDRDA\BD..JKl i:�� ` � i��l}�1i�11JU�lIIU '� L�JV'�L°I�"�)
COMBINING BAI.ANCE SHEET-ALL DEBT SERVICE FUNDS �OR DISCUSSION AND REVIEW
SUBJECT TO CHANGE
June 30, 1995 !dD OPlfdfON EXPRES�ED OR IMPLfED
�if4�L, EVANS AND CQMPANY
Prqect Project Project Prqect
Area 1 Area 2 Area 3 Area 4
ASSETS
�--�. --�
Cash and investments 1,823,0 6 389,67� 536 6 �
Cash with fiscal agent - _�
Intetestreceivable 90,037� - - -
Due from other governmental agencies - � - - -
Due from other funds 851,423� - - -
�-_ ,
Loans receivable 5,899,OOQ t� - - -
Prepaid expenses and deposits - - - -
TOTALASSETS $ 28,130,568 $ 1,823,046 $ 389,678 $ 536,666
LIABILITIES AND FUND BAI.ANCES
LIABILITIES:
Accounts payable $ L_2,-163 - $ - $ -
Deferred revenue 58 364/ - - -
Amounts due under pass-through agreements 9,621,189'� 265,619 184,699 8,06
TOTAL LIABILITIES 1Q207,716 265,619 184,699 508,067
FUND BALANCES:
Reserved:
Prepaid expenses - / - - -
Loan receivable 5,899,000 ✓ - - -
Accounts receivabie - - - -
Debt service - - - -
Unreserved: -- -. W --
- --� �'� o l�,
Designated for debt service 12,023,852�� 1,557,427� 04,979 � ,599��
TOTAL FUND BAI.,ANCES 17,922,852 1,557,427 204,979 25,599
TOTAL LIABILITIES '
AND FUND BALANCES $ 28,130,568 $ 1,823,046 $ 389,678 $ 36 6b
-25- �
' ���.�7L��i��L���1° V D�����,��
FOR DISCUSSION AND REVIEW
SUBIECTTO CHANGE
h0 �1PINION EXPRESSED OR IMPLIED
UIEHL, EVpNS AN'J COMPANY
Financing Totals
Authority 1995 1994
$ — $ 2 ,039,498 $���� 9,085,989
35,265,445 ✓ 3 ,265,445 17,185,693
350,498 ✓ ' 440,535 45,674
— — 125,110
— 2,851,423 11,28Q085
— 5,899,000 5,899,000
— — 480,528
$ 35,615,943 $ 66,495,901 $ 44,102,079
$ 59,356✓$ � 61,519'I $ 452
— 584,364, 98,000
— 10,579,5741 7,243,565
59,356 11,225,457I 7,342,017
— — 480„528
— 5,899,000 5,899,000
125,106
11,419,252 � 11,419,252 8,572,406
24,137,3 37,952,192 21,683,022
35,556,587 55,27Q444 36,760,062
$ 35 615,943 �$ 66,4'15;901 $ 44,102,079
—26—
�'.M DESERT REDEVELOPMENT AGEN "
I:\1995\CAFR�PDRDA\RD.vJK l �V7 �n�
COMBINING STATEMENT OF REVENUES, EXPENDITURES ANl`� � 'l�r� IIAi��u Il UC��L�i�;�
CHANGES IN FUND BALANCES—ALL DEBT SERVICE FUNDS�'�R DISCUSSION AND REVIEW
SUBJECT TO CHAIIGE
For the year ended June 30, 1995 ��C OPINION EXPNESSED OR IMPLIED
D�FHL EVANS A^!D f,OMPANY
Project Project Project Project
Area 1 Area 2 Area 3 Area 4
REVENUES:
Tax increment $ 16,505,934 '�$ 4,906,863 � 464,930�$ 945,087 f
Use of money and property 1,036,544f j 71,346 7,929 19,109 �
Reimbursement from other agencies 461,799 `� — — _
TOTAL REVENUES 18,004,277 4,978,209 472,859 964,196
EXPENDITURES:
Educational revenue augmentation fund 604,387✓ 177,485`� — —
Payment to other govemmental agencies 4,349,003 � 1,573,562 � 71,470� 508,067 J
Bond issuance costs — — _ _
Bond discouut — _ _ _
Interest and fiscal charges 32,035 '� 778,335 '� 3,110 � 24,513�
Principal payments — — 120,000� 214,000 �
TOTAL EXPENDITURES 4,985,425 2,529,382 194,580 746,580
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 13,018,852 2,448,827 278,279 217,616
OTHER FINANCING SOURCES(USES):
Proceedsfrom bonds — — — —
Operating transfers i❑ — — —�
Operating transfers out (12,800,312) (2,254,526)� 9( 2'986) 18( 9'017) ✓
TOTAL OTHER FINANCING
SOURCES (USES) (12,800,312) (2,254,526) 9( 2,986) 18( 9,017)
EXCESS OF REVENUES AND OTHETt
FINANCING SOURCES OVER
EXPENDITURES AND OTHER /
FINANCINGUSES 218,540 ,/ 194,301 � 185,293✓ 28,599 �
FUNDBAI.ANCES—BEGINNINGOFYEAR 17,704,312 1,363,126 19,686� — �
/ �
FUND BALANCES—END OF YEAR $ 17,922,852 ;�$ 1,557,427 ✓$ 204,979 $ 28,599
�
—27—
���in,�L�G��G�L"��i�! L�1'�;i�J�,l
fOR DISCUSSION AND REVIEYd
SUBJECT TO CHAtVGE
NO QPINI6N EXPRES�EU OR IMPLIe�i
�}I�HL. F.V�I•i':� I�i�#`_) ;'!F,1f'ANY
Finaucing Totals
AutLority 1995 1994
$ — $ 22,822,814 �$ 16,766,222
493,455 U 1,628,383 ✓. 2,692,261
— 461,799 491,571
493,455 24,912,996 19,95Q054
— 781,872/ 781,686
— 6,502,102 i' S,637,629
613,623 � 613,623 � —
351,438 � 351,438 / —
7,422,992 � 8,260,985 j 7,993,862
1,620,000 � 1,954,000 � 4,855,532
10,008,053 18,464,020 19,268,709
(9,514,598) 6,448,976 681,345
��;
18,850 18,850,555 —
8,547,692 ✓ 8,547,692 � 12,071,571
— (15,336,841) � (9,424,456)
27,398,247 12,061,406 2,647,415
17,883,649 / 18,510,382 / 3,328,760
17,672,938 36,760,062 33,431,302
$ 35,556,587�$ 55,270,444 � 36,760,062
—28—
^'_M DESERT REDEVELOPMENT AGEP" '
I:\1995\CAFR\PDRDA\BP.oJK l
COMBININGBALANC'E SHEET—ALL CAPITAL PROJECTS FLJ�N'b�f� '���'����-�� �� �� _.,,, .
FGR DISCUSSION A�JC rt't�iti:;
June 30, 1995 SU@JECT 1(� GHANGf
NO OPINIOR EXPRESSED UR IMPlleu
�iE�iL EVAMS Ai���� ;;d;r,gpq�v
Project Project Prqect Prqect
Area 1 Area 2 Area 3 Area 4
ASSETS
Cash and investments $ — $ 3,549,805 $ 92,880 $ 59,828
Cash with fiscal agent 32,076,816 4,795,852 — —
Interestreceivable 409,105 50,143 — —
Due from other governmental agencies 3,692,719 8,200 — —
Prepaid expenses and deposits 3,157 — — —
TOTALASSETS $ 36,181,797 $ 8,404,000 $ 92,880 $ 59,828
LIABILITIES AND FUND BALANCES
LIABILITIES: /
Accounts payable $ 161,528 $/ 75,606 $ — $ —
Accrued liabilities 3 1� _ _ _
Due to other funds 2,8 ,423 � — —
TOTAL LIABILITIES 3,022,134 75,606 — —
FUND BAI..ANCES:
Reserved:
Prepaidexpenses 3,157 — — —
Continuing appropriations 15,549,708 6,425,000 — —
Encumbrances 1,13��� ' 63,044 10,000 53,662
Receivables _ _ _
Unreserved:
Designated for capital outlay 16,469,153- 1,840,350 � 82,880 ✓ 6,166
TOTAL FUND BAI.ANCES 33,159,663 8,328,394 92,880 59,828
TOTAL LIABILITIES
AND FUND BAI,ANCES $ 36,181,797 $ 8,404,000 $ 92,880 $ 59,828
-z9_ l
� F I
� �l I� ..i. l � t�.,L �. ��
!iif�( ',I��f��.�i���1N lLIU�: RLVik v�r
5U3IEC'i t0 CtiANGE
NO O°INION EXPRESSEf; OR IMPLIEU
;)IE�!, fVl�NS n.PiD ;�OMPA±�Y
Totals
1995 1994
$ 3,702,513 $ 437,451
36,872,668 43,534,187
459,248 190,338
3,700,919 69,090
3>157 7,272
$ 44,738,505 $ 44,238,338
$ 237,134 $ 769,146
9>1S3 —
2,851,423 11,280,084
3,097,740 12,049,230
3,157 7,272
21,974,708 20,744,091
1,264,351 582,698
— 69,090
18,398,549 10,785,957
41,640,765 32,189,108
$ 44,738,505 $ 44,235,338
—30—
F� M DESERT REDEVELOPMENT AGEN�
I:\1995\CAI''R\PDRDA\RP.WKl h iii;s�tiiiii���i�l�ll���0�1�� I����i�i`.1;' ;
COMBINING STATEMENT OF REVENUES,EXPENDITURES AN1�St L�ISCUSSI(1N ANC R��VIf ti(
CHANGES IN FUND BALANCES—ALL CAPITAL PROJEGTS FUNDSSI!5 iEC� I� i;Nr1NGk
.''d� (IPu�� �A kX�'3����;F�) ^;kii IP✓tr '.iE.L�
For the year ended June 3Q 1995 ' ` "�" �"
Project Praject Project Project
Area 1 Area 2 Area 3 Area 4
REVENUES:
Intergovernmental revenues $ —�$ — $ — $ a,309 '
Use of money and property 584,004 � 195,086 5,374 �`-�
Sale of land ; — � — — —
Reimbursement from other agencies �U� 3,69 — — —
Other revenues ��� 1,07T � 36 — —
� �
TOTALREVENUES 4,277,800 195,122 5,374 4,309
EXPENDITURES:
Administrative costs 423,512 179,051 � 11,658 23,660
Professional services 570,204 112,934 � �< 3,567 3,566
Planning,survey and design — 650,1�3�� — —
Assessment district tazes — — —
Capital outlay 6,761,798 2,544 � — —
Cost of land sold — — J — —
Land purchases 3,439,233 302,973 — —
TOTAI,EXPENDITURES 11,194,747 1,247,665 15,225 27,226
EXCESS OF REVENUES
(UNDER)EXPENDITURES (6,916,94'� (1,052,543) (9,851) 2( 2,917)
OTHER FINANCING SOURCES(USES):
Proceedsfrom bonds 7,888,162 1,376,283 — —
Operating transters in 2,118,470 — — —
Operating transfers out (1,929,000) — — —
Advance from City 2,500,000 5,500,000 — —
TOTAL OTHER FINANCING
SOURCES(USES) 10,577,632 6,876,283 — —
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER)EXPENDITURES AND
OTHER FINANCINGUSES 3,660,685 5,823,740 (9,851) (22,91'n
FUNDBAL.ADTCES—BEGINNINGOFYEAR 29,498,978 / 2,504,654 102,731 82,745
�
FUND BALANCES—END OF YEAI2 $ 33,159,663 � $ 8,328,394 $ 92.880 $ 59,828
—31—
� ,f� _ �„i,35!ON ,=��aG ,��U:Ga';
};�JBJ'�i;i tii i;riA.NGE
i�Q ��I3INin�i �Xi'RESSEC OR IMPi.+ED
DiE;ii, EV,7tqS AP�!� i;pMPANY
Totals
1995 1994
$ 4,309 $ —
784,464 3,749,568
- 5,969,999
3,692,719 -
1,113 383,628
4,482,605 10,103,195
637,881 404,814
690,271 1,243,676 �
650,163 98,254
— 199,175
6,764,342 5,341,578
— 5,031,432
3,742,206 12,012,345
12,484,563 24,331,277
(8,002,258) (14,228,082)
9,264,445 —
2,118,470 408,117
(1,929,000) (3,055,532)
8,000,000 5,000,000
17,453,915 2,352,585
9,451,657 (11,875,497)
32,189,108 44,064,605
$ 41,640,765 $ 32,189,108
_32_
i
� �.�:I i� h i ��� �i�e . .
, . „ '.ilt{G�iS�.IQ1i lifl�Q h'L��tV.� .
SU�37ECF i0 CtdAIVGE
`) C!°:Pd10N EXPRESSeG OR IMPiIi=G:
r,,.':,; `UNidS t,rd'1;:pA4P+�NY
SUPPLEMENTAL INFORMATION
� � PAI�T-Q DESERT REDEVELOPMENT AGF�TCY
SUPPLEMENTAL SCHEDULE �
� i� `IS �1�ii;�inlli�� Uuil�°I��f
TAX INCREMENT SHIFT TO EDUCATIONAL REVENUE AUGMENI'fA���'��ANGEV,ENf
'J UI'IhIIUo� EXP(tkSSED Oft IMP�iE�G'
June 30, 1995 �; � a �vpta< rdb �,�rr�iFANr
Total Tax Increment to be shifted to the Educational ✓
Revenue Augmentation Fund (ERAF) per State Department
of Finance (DOF) letter dated October 3, 1994 781 872
Funding Sources:
Redevelopment Agency:
Agency taa� increment $ 781,872 �
Other agency funds -
Total Agency Funds $ 781.872 �
Agency Borrowing:
From current 20%
I,ow & Moderate
Income Housing Funds -
From legislative body -
Total Borrowed Funds
Total Tax Increment Shift to ERAF 781 872 `�
See independent auditors' compliance opinion.
-33-
� �ii'� IS�JuJ�U.iL'��'n J ��»��'� _
FOR DISGUSSION At�f1 REVIE4�.�
SUBIECT (0 CHANGE
PJO f1PIN10N EXPRESSED OR IMPLIED
DIEHL, EVANS AND COMPANY
September 22, 1995
INDEPENDENT AUDITORS' COMPLIANCE REPORT
Agency Members
Palm Desert Redevelopment Agency
Palm Desert, California
We have audited the financial statements of the Palm Desert Redevelopment Agency (a component unit of the
City of Palm Desert), as of and for the year ended June 30, 1995, and have issued our opinion thereon dated
September 22, 1995. We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatements.
Compiiance with laws and regulations applicable to the Palm Desert Redevelopment Agency is the
responsibility of the Palm Desert Redevelopment P.gency's management. As part of obtaining reasonable
assurance about whether the financial statements are free of material misstatement, we performed tests of
compliance with prrnisions of laws and regulations contained in the Guidelines For Compliance Audits of
California Redevelonment Aeencies issued by the State Controller's Office, Division of Local Gwemmental
Fiscal Affairs.
The result of our tests indicted that, with respect to the items tested, the Palm Desert Redevelopment Agency
complied, in all material respects, with the prwisions referred to in the preceding paragraph. With respect
to items not tes[ed, nothing came to out attention tha[ caused us to believe that the Palm Desert Redevelopment
Agency had not complied, in all material respects, with those provisions.
This report is intended for the information of the Palm Desert Redevelopment Agency, and the State
Controller's Office. However, this report is a matter of public record and its distribution is not limited.
-34-
!,f_ 61 ^ � .. � � _.]L . ` .
Pf��OCJ�7 DQ�
FOR DISCUSSION AND REYIEW
SUBIECT N CHANGE
NO OPINION EXPRE�D OR IMPLIED
DIEHI.EYANS AND COMPANY
CITY OF PALM DESERT, CALIFORNIA
FINANQAL STATEMENTS
WITH REPORT ON AUDIT
BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTAN'IS
JUNE 30, 1995
,+ _ �
• CITY OF PALM DESERT
TABLE OF CONTENTs
June 30, 1995
Page
Number
Independent Auditors' Report 1
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types and Account Groups 2 - 3
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances - All Governmental Fund Types 4
Combined Statement of Revenues, Expendituxes and Changes in
Fund Balances - Budget and Actual - General and Special Revenue
Fund Types 5 - 6
Notes to Financial Statements 7 - 39
Supplemental Information:
Statement of Revenues - Budget and Actual - General Fund 40
Statement of Expenditures - Budget and Actual - General Fund 41
Combining Balance Sheet - All Special Revenue Funds 42 - 47
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - All Special Revenue Funds 48 - 53
Combining Balance Sheet - All Debt Service Funds 54 - 56
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - All Debt Service Funds 57 - 59
Combining Balance Sheet - All Capital Project Funds 60- 63
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - All Capital Project Funds 64 - 6'7
Combining Statement of Changes in Assets and Liabilities -
All Agency Funds (>g
_ p C C pp[�,01�1�9��DG�GIf�
�i.�itC Cvans c7 nom�.ant� ;FOR SU JEC7100 GHAN�EVIEW
CEFTIFIED PUBLIC ACCOUNTANTS NO OPINION EXPRESSEC OR IMPLIED
l'Jsea2 �. oT2m��o DIEHI,EVANS AND COMPANY
CERTIFIED PUBIIC ACCOUNTANT
18401 VON KARMAN,SUITE 200 8 jOillt VBIItUfB 74133 EL PASEO,SUITE B
IRVME,CALIFORNIA 927157542 PALM DESERT,CALIFORNIA 9222i80
�ra>�5�-n°° INDEPENDENT AUDITORS' REPORT (6�91�r�-+me
City Council
City of Palm Desert
Pelm Desert, California
We have audited the general purpose financial statements of the City of Palm Desert, Califomia as of and for
the yeaz ended June 30, 1995, as listed in the table of contenu. These financial statements are che
responsibility of the City's management. Our responsibility is to express an opinion on these financial
•statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standazds require
[hat we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
che amouncs and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the rnerall general
purpose financial statement presentation. We Uelieve chat our audit provides a reasonable basis for'our
opinion.
In our opinion, the general purpose financial statements refeaed to above presenc fairty, in all material
respects, the financial position of the City of Palm Deserc as of June 30, 1995, and the results of its operations
for the year then ended in conformity with generally accepted accounting principles.
As discussed in Note 15 to the financial statements, the ultimate realization of the Ciry's remaining imestment
in litigation is dependent on a favorable outcome of the litigation. The effect of present uncertainties on the
ou�come and [he amount of final adjustmenc to the net realizable value of investment in litigation, if any, aze
not presendy determinable. Accordingly, che financial statements do not include any adjustment that might
result from the outcome of this uncertainty.
Our audit was made for the purpose of forming an opinion on the general pucpose financial statements taken
as a whole. The supplemental information listed in the table of contents is presented for purposes of additional
analysis and is not a required part of the general purpose financial statements of the City of Palm Desert. The
informa[ion has been subjected to the auditing procedures applied in the audit of the general purpose financial
statements and, in our opinion, is fairly staced in all material respects in relation [o the general purpose
financial statements taken as a whole.
September 22, 1995 (except for information in Note 17c, as to which the date is September 28, 1995).
-1-
GENERAL PURPOSE FINANCIAL STATEMEN'ls
— CITY OF PALM DESERT — e o����apQ� p�p�
I:\1995\CAFR\PALML�ES\_ ..WKl
COMBINEP BnLANc� SHEET—AL I FUND TYPES�.ND ACCOUNT c� �USSION AND REVIEW
�d1ECT TO CHANGE
Iune 30, 1995 NO OPINION IXPRESSED OR IMPLIm
DIEHL,EVANS AND COMPANY
co,rornmente�auna'n'vu
Special Debt Capit�l
ASSETSANDOTHERDEBTIS Geeenl Revenue Service P'ojxt
ASSETS:
Gah and invettmenn(Note�IH,2 and 1� S 14,955,568 S 12,790,887 f 26,828,488 S 20,592,910
G�6 with Cuol agent(Notu 2,7 and 1� — 782,661 38,399,163 41,948,067
Reoeivabk�(Note 3) 1,703,178 2,127,067 6.542,862 0,826,/42
Due fmm ahar fud,(Nae 4) 296,408 — 2,851,423 —
Aew�menu reaeivabk(Note 14) — — 33,172,8/0 —
Adwnm�wother funds(Note�4 rnd 6� 5.581,000 654,000 — 12,765,OD0
Depoeita 298 — — —
Prepeid expen.w 49,334 — 5,304 3,157
General fized asuu(Note� — — — —
Artwunt aysilable i¢debt service[unda(Note 9) — — — —
Amount to be providad for payment otbng-lerm debt — — — —
1DTALASSE7SAND07}�RDEBTIS S 22,565,786 S 16,354,635 S 107,800,110 S 80,135,626
LL4811,1't1E5,EQUI'IY AND 077-IER CREDTIS
LL4BQ.17'IES:
Acoounla peyable S 1,600,168 S 735,938 S 74,057 S 545,042
Accrued tiebilitiw 797,210 — — 10,490
Due W other fueda(Note 4) — — — 3,147,831
Depositapayable(Note� 900 — 10,579,574 225,000
Dehrred revmue(Note 14) 12,019 — 33,757,134 —
DeFerred wmpene�tion payable(Note'n — — — —
Generel bng-lerm debt(Note 6) — — — —
7UTAL LIABQ.IT7ES . 2,410,297 735,938 44,410,865 3,926,763
EQUTIY AND 07HER CRIDI'IS: �
Inve�tment in genenl fued aasets — — — —
Fund balanmc
Re�erved(Note 12) 10,263,975 9,676,483 20,358,296 40,800,933
Unroeerved—deaigoated(Note 12) 9,911,514 5,942�214 43,030,907 35,401,930
70'CAI.EQUI'[Y AND 07}�R Qiml'1'S 20,175,489 15,618,697 63,389.245 76,206,863 �
'IOTA[.LiABILTRES,EQUI'IY
AND07HERCRIDTIS S 22.585,786 S 16,351,635 S 107,800,110 S 80,135.626
See indepeudent suditor�report and notes to financial statements.
—Z—
' _ . ,_ �+��G�1�'�a�r DG3p�4
FOR DISCUSSiGN AND REVIEW
SUBJECTTO C4ANGE
Fiducury � 7Wala
� DIEHI,EVANS AND COMPANY�ED
Fund Type A000unt Groups (Memonndum Only)
General Ganenl
Faed Iam�Term
Agenry Ae�ets Debt 1995 1994
S 940,155 S — S — S 76,108,006 S 62,5�3.751
2.410.327 — — 83,540,238 , 69.944.T72
— — — 15,199,599 11,121,004
— — — 3,147,831 11,284,719
— — — 33.172,870 23,806,G00
— — — 19,000,000 11,334,OD0
— — — 298 300
— — — 57,795 555,777
— 87,992,536 — 87,992,536 79,580,531
— — 63,389,245 63,389,245 42,862,147
— — 137,911,209 137,911,209 115,093,fi08
. S 3350,482 S 87.992,536 S 201,300,454 S 519,519,629 S 428,157,209
S — S — S — S 2.955,60.5 S 2,794,716
— — — 807,700 761,064
— — — 3,147,831 11,284,719
940,155 — — 11,745,629 8,330,051
— — — 33769,253 23,922,220
2,410,327 — — 2,410,327 1,972,070
— — 201,300,454 201,300,454 157,955.755
3,350,482 — 201,300,450 256,134799 207,02Q595
— 87,992,536 � — 87,992,536 79,580,531 �
— — — 81,303,689 69,302,065
— — — 94,286,605 '/2,254,018
— 87,992536 — 263,382,830 221,136,614
$ 3,350,492 S 87,992,536 S 201,300,454 S 519,519,629 S 428,157,209
—3—
- CTTY OF PALM DESERT —
` I:\1995\G1FR\PAId�ES\R� !Kl
COMBINED STATEMENT OF REVENUES.EXPENDII'URES AND
CHANGES IN FUND BALANCES—ALL GOVERNA�NTAL FUND TYPES
For the year ended June 30. 1995
Spad�l Debt GpiW Tota4(AfemonndumOnlvl
(leueni Revanue Service P�oject 1993 1991
REVENUE3:
T�m S 16,358,806 S 3.955,302 S 22,622,81/ S — S 13,1%,9]2 S 39,319,686
Spea�la�teumennmllected — �32.872 3.172�35 — 3,605,307 3,381,951
I.ioeo�esaadpermin 775.795 — — 230,269 1.006,06� 708.962
Interbmernmeatal reveouw 1.663.010 973,t91 — 5,991,838 8.63q339 2,78D.095
Ch�rae�br.ervicm 531,331 — — — 53l,35� 887,54/
Fines�nd bdeimrw 53,q0 2�,lU2 — � — 76,272 t,369,535
U�eMmoeey�edpmperty 1,661,199 686.253 1,921,617 1,7/Z776 6,O1Z175 t,516,Ot3
Saleo[land — — — — — 5,969,999
Ramveryafinveatment bs� 75,087 165,018 — 30],071 Sl7.176 —
Olherrevenue� 8{.202 38,162 47t,299 307,196 703.839 1.0l3,702
7YTI'AI.REVENUES 21,208,223 6,273,900 28,391,193 8.379,130 64.254,4{8 63.058,320
�exnrruxrs:
Curront
(ianenl aovernmeohl—
departmeohl 7,124,323 — — 1,496,616 8,621,14t 9,334997
Genenl dovernmen[al—
oondep�nmeubl 138,931 3,11;016 — — 5,250.9�9 2,3/;792
Pubtie pfby 6,788,829 1,709,871 — — 8,198,700 6,791,3/1
Public worta 2,138.088 335.eC9 — — 2.513,937 3,2�5,607
P�rks.recrc�tion�odtWlurc 1,331,t52 — — — 1,331�C52 1,301,800
Costo[land — — — — — 3,031,032
Lo�soninve�lmmt — — — — — 5,015,181 �
dpiulou[lay — 3.613,021 — 22A{Y,028 27,655,Ot9 � 23,1l7.I53
Edwational Reveuue
AugmentationFund — — 781.872 — 781,872 781,686
Paymentloother�gnnda — — 6,504,102 — 6,504,102 5,637,629
Debt wma:
Bond diswunt — — 318,9�5 — S'/6,9�5 —
Boudie�ueooan — — 969,097 — 969,097 —
Intero���nd fuulehardee — �171,OD5 10,192,010 — 10,963,015 30,161,385
Prindpal retircment — 260,000 2,54&980 — 2,80&980 2,315,000
Repaymeoto(�dvanaa 334,000 334,000 3.303.332
TO'CAL EXPENDfCURES 17,544.825 13,521,762 22,207,006 23,538,644 76,812 237 78,950,838
EXCESS OF REVENUES OVER
(UNDER)EXPENDfCURES 3.663,398 (7,243,8621 6,18�,189 (15.139.514) (12,357.7891 (15.892.3181
OTHER F(NANCING SOURCES
(USES}
Opentios lnnaten in 855.671 6.669,933 8,623,166 2,165,733 I8,311,503 13,657.f27
Opentin6tronafcraout (32,234) (392,160) (13.3M,103) (2,283,686) (18,314.503) (13,657,42�
Adv�nm from other fundt(Note 6) — — — B4O00,000 B.00Q000 5,000,000
Praaeds from 6ouds(Nole 6) — — 21,303,816 17,288,156 38,392.000 —
TOI'qI.00HER PINANCINO �
SOUACES(USES) 803.{37 6,077.673 16,312,909 25,168,201 463ff2,000 5,000,000
E?CCESS OP REVENUES
AND 07'F1ER FINANCING
SOURCESOVER(UNDER)
EXPENDLI'URES AND
O'I7iERPINANCIN6USE5 1,466,815 (1,168,389) 20.527,098 10,006,687 33,834,211 (30,892.318)
FUND BAIANCES—BEGIIiNING
OFYFAR 15,708,674 16.787,086 42,862,147 66,198,176 141,336,083 132,M8,401
FLJNDBAIANCES—ENDOPYFAR S 20.175.489 S 15.618.697 S 63389.263 S 76.206.863 S 1'/5390.291 S 101.356.083
See independent auditors'report aad notes to finamial statements. �
—4—
�- CITY OF PALM DESERT �
I:\1995\CAFR\PALI�ES�_ .i.WKl
COMBINED STATEMENT OF ItEVENUES,EXPENDTPURES AND
CHANGES IN FUND BALANCES—BUDGET AND ACfUAL
GENERAL AND SPECIAL REVENUE FUND TYPES
For the year ended June 30, 1995
General Fund
Variance
Favorable
Budget Actual (Unfavorable)
REVENUES:
Taxes $ 15,081,300 $ 16,358,806 S 1,277,506
Special assessments collected — — _
Licenses and permits 549,500 775,795 226,295
Intergmernmental revenues 1,527,800 1,665,010 137,210
Charges for services 425,000 534,354 109,354
Fines and forfeitures 50,000 53,470 3,470
Use of money and property 774,000 1,661,499 887,499
Recovery of investment loss — 75,087 75,08'7
Otherrevenues — 84,202 84,202
TOTALREVENUES 15,407,600 21,208,223 2,800,623
EXPENDITURES:
Curreut:
Generalgovernmental—departmental 8,006,038 7,124,525 881,513
General governmental—nondepartmental 139,448 138,931 517
Public safety 7,153,425 6,788,829 364,596
Public works 3,525,088 2,158,088 1,367,000
Parks,recreation and culture 1,710,450 1,334,452 375,998
Capital outlay — _ _
Debt service:
Interest and fiscal c6arges — — —
Principal retirement _ _ _
TOTAL EXPENDITURES 20,534,449 17,544,825 2,989,624
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES (2,126,849) 3,663,398 5,790,247
OTI-IER FINANCING SOURCES(USES):
Operating trans[ers in 485,000 855,671 370,671
Operating transters out — (52,254) (52,254)
TOTAI.OTHER FINANCING SOURCES(USES) 485,000 803,417 318,417
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER FINANCING USES (1,641,849) 4,466,815 6,108,664
FUNDBALANCES—BEGINNINGOFYEAR 15,708,674 15,708,674 —
FUND BALANCES—END OF YEAR S 14,066,825 S 20,175,489 $ 6,108.664
See independent auditors'report and notes to Snancial statements.
—5—
Special Revenue Funds Totals
Variana Variancc
Favorabie Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ 7,595,000 $ 3,955,302 $ (3,639,698) S 22,676,300 $ 20,314,108 $ (2,362,192)
459,837 432,872 (26,96� 459,837 432,872 (26,96�
- - - 549,500 775,795 226,295
646,183 973,491 327,308 2,173,983 2,638,501 464,518
- - - 425,000 534,354 109,354
, - 24,802 24,802 50,000 78,272 28,272
3'79,500 686,253 306,753 1,153,500 2,347,752 1,194,252
- 165,018 165,018 - 240,105 240,105
800,000 38,162 (761,838) 800,000 122,364 (677,636)
9,880,520 6,275,900 (3,604,620) 28,288,120 27,484,123 (803,99n
- - - 8,006,038 7,124,525 881,513
5,228,123 5,112,016 116,107 5,367,571 5,250,947 116,624
2.706,598 1,709,871 996,727 9,860,023 8,498,700 1,361,323
718,413 355,849 362,564 4,243,501 2,513,937 1,729,564
- - - 1,710,450 1,334,452 375,998
10,877,363 5,613,021 5,264,342 10,877,363 5,613,021 5,264,342
472,000 471,005 995 472,000 471,005 995
260,000 260,000 - 260,000 260,000 -
20,262,497 13,521,762 6,740,735 40,796,946 31,066,587 9,730,359
(10,381,97'n (7,245,862) 3,136,115 (12,508,826) (3,SS2,464) 8,926,362
- 6,669,933 6,669,933 485,000 7,525,604 7,040,604
(457,000) (592,460) (135,460) (457,000) (644,714) (187,714)
(457,000) 6,077,473 6,534,473 28,000 6,880,890 6,852,890
(10,838,97� (1,168,389) 9,670,588 (12,480,826) 3,298,426 15,779,252
16,787,086 16,787,086 - 32,495,760 32,495,760 -
$ 5,948,109 $ 15,618,697 $ 9,670,588 $ 20,014,934 $ 35,794,186 $ 15,779,252
-6-
NOTES TO FIlVANQAL STATEMENTS
— CITY OF PALM DESEitT
NOTES 'll� FINA!dCIAL STATE1vfENlS
June 30, 1995
1. SUMMARY OF SIGIVIFICANT ACCOUNTING POLICIES:
A. Description of the Reporting Entiry:
The financial statements of the City of Palm Desert includes the financial activities of the City,
the Palm Desert Redevelopment Agency and the Palm Desert Financing Authority.
The City of Palm Desert wds incorporated on Nwember 26, 1973 as a General Law City. The
City operates under a Council-Manager form of govemment and provides the following
services: public safery (police and fire), highways and streets, sanitation, public improvements,
community development (planning, building and zoning) and general administrative services.
The Palm Desert Redevelopment Agency (the Agency) was established October 24, 1974,
pursuant to California Health and Safety Code Section 33000 entided "Community
Redevelopment Law". The purpose of the Agency is to prepaze and execute plans for the
improvement, rehabilitation and redevelopment of blighted areas within the limits of the City.
The Palm besert Financing Authority (the Authority) wes formed on January 26, 1989. The
purpose of the Authority is to issue debt and loan the proceeds to the Agency.
The criteria used in determining the scope of the reporting entity aze based on the provisions
of Gwemmental Accounting Standazds Boazd Statement 14. The City of Palm Desert is the
primary government unit. Component units aze those entities which are financially accountable
to the primary gwemment, either because the City appoints a voting majority of the component
unit's boazd, or because the component unit will provide a financial benefit or impose a
financial burden on the City. The City has accounted for the Agency and Authority as
"blended" component units. Despite being legally sepazate, these entities are so intertwined
with the City tha[ they are, in substance, part of the City's operations. Accordingly, the
balances and transactions of these component units are reported within the funds of the City.
Accounts for the Agency are reported in sepazate funds in the Special Revenues Debt Service
and Capital Project Fund Types. The Authority transactions are reported in a separate Debt
Service fund.
There are other grnernmental agencies prwiding services within the City of Palm Desert.
These other gwernmental agencies have independently elected gwerning boazds.
Consequently, financial information for these agencies is not included in the accompanying
financial statements.
B. Fund Accounting:
The acwunts of the City are organized on the basis of funds and account groups, each of which
is considered a sepazate accounting entity. The operations of each fund are accounted for with
a sepazate set of self-balancing acwunts that comprise its assets, liabilities, fund equity,
revenues and expenditures. Gwernment resources aze allocated to and accounted for in
individual funds based upon the purposes for which they are to be spent and the means by
which spending activities are controlled. The City maintains the following fund types.
See independent auditors' report.
-�-
— CTTY OF PALM DESSKt —
NOTES TO FINANCIAL STATEMEN'IS
(CONTINUED)
June 30, 1995
1. SLTMMARY OF SIGIJIFICANT ACCOUNTING POLICIES (CONTINUED):
B. Fund Accounting (Continued):
Gwernmental Fund Types:
General Fund - The General Fund is the general bperating fund of the City. It is used to
account for all financial resources except those required to be accounted for in another fund.
Snecial Revenue Funds - Special Revenue Funds aze used to account for the proceeds of
specific revenue resources (other than major capital projects) that are legally restricted to
expenditures for specified purposes.
Debt Service Funds - Debt Service Funds aze used to account for the accumulation of resources
for, and the payment of, general long-term obligation principal, inrerest and related costs.
Capital Project FLnds - Capital Project Funds are used to account for financial resources to be
used for the acquisition or construction of major capital facilities.
Fiduciary Fund Types:
Aeencv Funds - Agency Funds are used to account for assets held by the City in an agency
capaciry for individuals, private organizations, othet gwemments and/or other funds. Agency
Funds aze custodial in nature (assets equal liabilities) and do not imrolve measurement of resulu
of operations.
C. Fixed Assets and Long-Term Liabilities:
The accounting and reporting treatment applied ro the fixed assets and long-term liabilities
associated with a fund are determined by its measurement focus. All gwernmental funds aze
accounted for on a spending or "financial flow" measurement focus. This means that only
current assets and current liabilities aze generally included on their balance sheets. Their
reported fund balance (net current assets) is considered a measurement of "available spending
resources". Gwernmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net cunent assets.
Accordingly, they are said to presem a summary of sources and uses of "available spending
resources" during a period.
Fi�ced assets used in govemmental fvnd type opetations (general fixed assets) aze accounted for
in the General Fized Asset Account Group, rather than in governmental funds. Public domain
(infrastructure) general fixed assets consisting of certain improvements other than buildings,
including roads, bridges, curbs and gtttters, streets and sidewalks, drainage systems, and
lighting systems are not capitalized as general Fixed assets. The City does not capitalize
interest costs incurred on the construction of fixed assets. No depreciation has been provided
on general fixed assets.
See independent auditocs' report.
-8-
— C1TY OF PALM bESERT _
NOTES 'PD FINANCIAL STATEMEN'IS
(CONTINUED)
June 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
C. F"viced Assets and L.ong-Term Liabilities (Continued):
All general fixed assets aze valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated fixed assets aze valued at their estimated fair market
value on the date donated.
Long-term liabilities expected to be financed from governmental funds aze accounted for in the
General Long-Term Debt Account Group, not in the governmental funds.
The two account groups aze not "funds". They aze concerned only with the measurement of
financial position. T'hey are not imolved with measurement of resulu of operations.
Noncurrent portions of long-term receivables due to govemmental funds are reported on their
balance sheet, in spite of their spending cheasurement focus. Special reporting treatments are
used to indicate, however, that they should not be considered "available spendable resources",
since they do not represent net current assets. Rewgnition of gwemmental fund type revenues
represented by noncurrent receivables is deferred until they become current receivables.
Noncurrent portions of long-term loans receivable aze offset by fund balance reserve accounts.
Special reporting treatments aze also applied to govemmental fund ptepaid expenses to indicate
that they do not represent "available spendable resources", even though they aze a component
of net current assets. Such amounts aze generally offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for grnemmental fund
types is limited to exclude amounts represented by noncurrent liabilities. Since they do not
affect net current assets, such long-term amounts are not recognized as gavernmental fund
expendimres or fund liabilities. They are instead reported as liabilities in the General Long-
Term Debt Account Group.
D. Basis of Accounting:
Basis of accounting refers to when revenues and expenditures aze recognized in the accounts
and repotted in the financial statements. Basis of accounting relates to the timing of the
measurements made, regazdless of the measurement focus applied.
Al1 governmental funds are accounted for using the modified accrual basis of accounting.
Their revenues aze recognized when they become measurabie and available as net current
assets. T�.xpayer-assessed income, gross receipts and sales taxes are considered "measurable"
when in the hands of intermediary collection gwernments and are recognized as revenue at that
time. Anticipated refunds of such taxes are recorded as liabilities and reductions of revenue
when they are measurable and their validity seems certain.
See independent auditors' report.
-9-
CITY OF PALM DESERT —
N07'ES '1�0 FINANCIAL STATEMENIS
(CONTINUED)
June 30, 1995
1. SUMMARY OF SIGIIIFICANT ACCOUNTING POLICIES (CONTINUED):
D. Basis of Accounting (Continued):
Expenditures aze generally recognized under the accrual basis of accounting except (1)
disbucsements for irnentory type items aze considered expenditures at the time of purchase and
(2) principal and interest on general long-term obligations aze recognized when due.
E. Budget and Budgetary Accounting:
The City uses the following procedures in establishing the budgetary data reflected in the
financial statements:
1. Before the beginning of the fiscal yeaz the City Manager submirs ro the Ciry Council a
proposed budget for the yeaz commencing the following July I.
2. Public hearings aze conducted to obtain tazpayer comments.
3. The budget is subsequently adopted through passage of a resolution.
4. Original appropriations are modified by supplementary appropriations and transfers among
budget categories. The City Council approves all significant changes. Annual
appropriation amounts lapse at yeaz end.
5. Encumbrances and continuing appropriations aze rebudgeted as of July 1 by Council action.
6. Formal budgetary integration is employed as a management conaol device during the yeaz
for the General, Speciai Revenue and Capital Project Funds. Formal budgetary integration
is not employed for Debt Service Funds because effective budgetary control is altematively
achieved through debt indenture provisions.
7. Budgets for General and Special Revenue Funds aze adopted on a basis consistent with
generally accep[ed accounting ptinciples. Budgetary data for Capital Project Funds is not
presented herein, as such data is long-term in nature.
F. Appropriations Limit:
Under Article XIIIB of the California Constitution (the Gann Spending L'unitation Initiative),
the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and
if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the
State Controller or remrned to the taxpayers through revised tax rates, revised fee schedules
or other refund arrangements. For the fiscal year ended June 30, 1995, proceeds of taxes did
not exceed appropriations.
See independent auditors' report.
-ia
.- CITY OF PALM DESERT _
N(7TES TO FINANCIAL STATEMEN'IS
(CONTINUED)
June 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
G. Encumbrances:
Encumbrance accounting, under which purchase orders, contracts and other commitments for
the expenditure of monies are recorded in order to reserve that portion of the applicable
appropriation, is employed as an extension of formal budgetary integration in the Gwernmental
Fund Types. Encumbrances outstanding at yeaz-end aze reported as reservations of fund
balatices since they do not constitute expenditures or liabilities.
H. Invesunents:
� Investments aze stated at cost, which approximates market value (Note 2). If market values
decline below cost, no loss is recorded if such declines aze considered temporaty. Deferred
compensation plan irnestments are stated at market values (Note 2).
I. Compensated Absences:
It is the policy of the City to record the cost of vested vacation and sick leave as expenditures
when paid. At June 30, 1995 the unfunded liabiliry for accumulated vacation and sick leave
was $848,454. The City has recorded this amount in the General Long-Term Debt Account
Group because the City expects to pay such amounts with future financial resources rather than
currently available expendable resources.
J. Comparative Data:
Comparative total data for the prior yeaz have been presented in the accompanying financial
statements in order to prrnide an understanding of changes in the City's financial position and
operations. However, compazative (i.e., presentation of prior year rotals by fund type) data
have not been presented in each of the statements since their inclusion wvuld make the
statements unduly complex and difficult to read.
K. Total Columns on Combined Statements:
Total columns on the Combined Statements aze captioned "Totals Memorandum Only" to
indicate that they aze presented only to facilitate financial analysis. Data in these columns is
not compazable to a consolidation. Interfund eliminations have not been made in the
aggregation of this data.
See independent auditors' report.
-11-
_ CITY OF PALM DESERT _
NOTE� 'll� FINANCIAL STATEMENIS
(CONTINUED)
June 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
L. Property 'Pex Calendar:
Property taxes aze assessed and collected each fiscal year according to the following property
tax calendaz:
Lien date March 1
Levy date July 1 to June 30
Due date November 1 - lst installment, Mazch 1 -2nd installmem
Delinquent date December 10- 1 st installmem, April 10-2nd installment
Under California law, property taxcs aze assessed and collected by the counties up to 1� of
assessed value, plus ocher increases apprwed by the wters. The property taxes go into a pool,
and are then allocated to the cities based on complex formulas prescribed by state statutes.
2. CASH AND INVESTMENIS:
T'he City of Palm Desert maintains a cash and imestrnent pool that is available for use for all funds.
Each fund type's position in the pool is reported on the combined balance sheet as cash and
irnestments.
The City has adopted an imestment policy which autttorizes it to imest in Securities of the U.S.
Gwernment or its agencies, and the Local Agency Investment Fund (LAIF). The City selects ics
i�rvestments based on safety, liquidity and yield.
See independent auditors' report.
-12-
— CITY OF PALM DESERT _
NOTES 'PD FINANCTAL STATEMFN'IS
(CONTII�UED)
June 30, 1995
2. CASH AND INVESTMENIS (CONTINUED):
Classification of Deposits and Imestments by Credit Risk:
Gwernmental Accounting Standards Board Statement 3 requires that deposits and imestments be
classified into three categories of credit risk. Theses categories are as follows:
DEPOSI'IS:
Category 1 - Deposits which aze insured by the FDIC.
Category 2 - Deposits which are collateralized. The California Gavernment Code requires California
banks and savings and loan associations to secure a City's deposits by pledging
gwemment securities with a value of 110% of the deposits. California law also allows
financial instirutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150% of a City's total deposits. The City Treasurer may waive the
collateral requirement for deposits which are fully insured up to $100,000 by the FDIC.
The collateral for deposits in federal and state chartered banks is held in safekeeping by
an authorized Agent of Depository recognized by the State of California Department of
Banking. 'I'he collateral for deposits with savings and loan associations is generally held
in safekeeping by the Federal Home Loan Bank in San Francisco, Califomia as a third-
party trustee. These secunties aze physically held in an undivided pool for all California
public agency depositors. U�er Gwernment Code Section 53655, the placement of
securities by a bank or savings and loan with an "Agent of Depository" has the effect of
perfecting the security interest in [he name of the local governmental agency.
Accordingly, all collateral held by California Agents of Depository are considered to be
held for, and in the name of, the local gwemmental agency.
Category 3 - Deposits which are uninsured or uncollateralized.
INVESTMENIS:
Category 1 - Investments which are insured by the Securities Investors Protection Corporation (SIPC),
or invesunents which are held in definitive (i.e. physical) fortn by the City or the City's
agent in the City's name, or irnestrnents acquired through the federal reserve book-entry
systetn where the financial instiwtion or broker/dealer associated with the purchases is
sepazate from the custodial safekeeping agent on the same irnestments and where the
imestments aze recorded on the books and records of the financial institution or
broker/dealer in the name of the City..
Category 2 - Investrnents which aze uninsured, where the imestments are acquired through a financial
institution's irnestment or trading departrnent, but are held in the same financial
institution's trust department and are recorded in the City's name in the trust department's
systems and records.
Category 3 - Investrnents which are uninsured, 1) where the irnestments ue acquired t}uough a
financial instimtion's irnestment department but aze held for custodial purposes in the
same financial institution's safekeeping department, or 2) where the imestments are
acquired through a financial institution's trust department, and held for custodial
safekeeping by the same trust depaztrnent, or 3) where the imestments are acquired
through, and held for safekeeping by, the same broket/dealer or 4) where icrvestments are
not held in the City's name in the systems and records of the financial institution or
broker/deater.
See independent auditors' report.
-13-
— CITY OF PALM DESERT —_
NOTES TO FINANCIAL STATEMEN'I5
(CONTINUED)
June 30, 1995
2. CASH AND INVESfMEN'IS (CONTINUED):
Classification of Deposiu and Investments by Credit Risk (Continued):
Deposits and imestrnents were categorized as follows at June 30, 1995
Cateaory Bank Carrying
Deposits: 1 2 3 Balances Amount
Demand
accounts $ 100,000 $ 3,699,323 $ - $ 3,799,323 $ 2,466,901
Certificates
of deposit 300,000 13,200,000 - 13,500,000 13,500,000
Cash with
fiscal agent - - 9,322 9,322 9,322
Petty cash 1.600 - - 1.600 1.600
401 600 $ 16,899,323 $ 9,322 $ 17,310,245 15,977.823
Not Required
Cateeory ro be Mazket
Investments: 1 2 3 Cate¢orized Ualue
U.S.
Government
Securities $13,557,736 $ - $ - $ - 13,557,736 $ 13,911,594
Held by
fiscal agent:
U.S.
Gwemment
Securities - - 63,461,826 - 63,461,826 64,298,087
Mutual Funds - - 17,658,763 - 17,658,763 17,658,763
Deferred
compensation - - - 2,410,327 2,410,327 2,410,327
California Local
Agen�y
Invesvnent
Fund - - - 42,369,627 42,369,627 *
Investments in
Litigation
(Note IS) - - 4.212.144 4.212.144 "`
3 557 736 � - $ 81.120.589 $ 48,992.098 143.670.423
•Infolmation not available.
TOTAL CARRYING AMOUNT (BOOK BALANCES) $159.648.246
Cash and imestments are reported in the accompanying
combined balance sheet as follows:
Cash and investments $ 76,108,008
Cash with fiscal agems 83.540.238
$159.648.246
See independent auditocs' report.
-14
— CITY OF PALM DESEIt1' —
NOTES 1'O FINANCIAL STATEMEN'13
(CONTINUED)
June 30, 1995
2. CASH AND INVESTMENTS (CONTINUED):
Local Agency Investrnent Fund (LAIF):
The LAIF is a special fund of the California State Treasury through which local gwernments may
pool invesanents. Each city may imest up to $20,000,000 each in the Fund for the city and
redevelopment agency and may also imest without limitation in special bond proceeds accounts.
Investments in LAIF aze highly liquid, as deposits can be comerted to cash within twenty-four houcs
without loss of interest. Included in LAIFs imestment portfolio aze certain derivative securities in
the fozm of structured notes and asset-backed securities. LAIF's, and the City's, esposure to credit,
mazket or legal risk is not available.
3. RECENABLES:
Receivables consisted of the following at June 30, 1995:
Special Debt Capital
General Revenue Service Project
Fund Funds Funds Funds 'Ibtals
Accounts $ 564,059 $ 32,540 $ - $ 95,293 $ 691,892
Interest 380,715 3,481 450,443 481,398 1,316,037
Other
Gwemment Agencies 693,404 269,445 193,419 4,249,801 5,406,069
Loans 65.000 1.821.601 5.899.000 7.785.601
1 703 178 $ 2.127.067 6 542 862 4 826 492 $ 15.199.599
Included in loans receivable of the Debt Service Funds is a $5,899,000 loan to "The Brothers", a
California partnership which developed a portion of the Civic Center Site. The Redevelopment
Agency funded the loan by paying the Palm Desert National Bank $5,899,000 to set up a
construction loan to The Brothers. The loan is payable to the Palm Desert National Bank but has
been assigned to the Redevelopment Agency. Interest accrues on the unpaid principal balance atthe
rate of 10% and 8% on balances of $3,415,000 and $2,484,000, respectively. Monthly payments
of interest only are payable until June 1, 1996, or five yeazs after the issuance of a certificate of
completinn at which time principal and interest shall be paid in equal monttily installments in an
amount sufficient to repay all principal and interest in full within 25 years of the issuance of a
certificate of completion.
See independent auditors' report.
-15-
_ CITY OF PALM DESER�`
NOTES 'PO FINANCIAL STATEMEN'IS
(CONTINIT�D)
June 30, 1995
4. INTERFUND RECENABLES AND PAYABLES:
Interfund receivables and payables at June 30, 1995 were as follows:
Due From Due To
Fund Other Funds Other Funds
General Fund $ 296,408 $ -
Debt Service Fund 2,851,423 -
Capital Project Funds:
Assessment District 941 - 38,329
Assessment District 942 - 102,055
Assessment District 94-3 156,02A
Redevelopment Agency - 2.851,423
$ 3.147.831 $ 3.147.831
Advances To Advances From
Other Funds Other Funds
General $ 5,581,000 $ -
Special Revenue Fund:
New construction tax 654,000 -
Capital Project Funds:
Capital Project Reserve 8,000,000 -
Park and Recreation Facilities 4,765,000 -
General Long-Term Debt
Account Group (see Note 6B) - 19.000.000
$ 19.000.000 $ 19.000.000
5. GENERAL FIXED ASSETS:
A summary of changes in General Fixed Assets at June 30, 1995 is as follows:
Balance at Balance at
June 30. 1994 Additions Deletions June 30. 1995
Land $ 49,537,848 $ 3,796,821 $ 655,100 $ 52,679,569
Building 13,908,908 1,478,198 - 15,387,106
Imprrnements 11,595,884 410,583 - 12,006,467
Equipment 2,735,913 368,660 16,831 3,087,742
Construction in
progress 1.801.978 4.104.172 1.074.498 4.831.652
Total � 79.580.531 $ 10.158.434 $ 1.746.429 $ 87,992.536
See independent auditors' report.
-16-
— CITY OF PALM DESERT __
NOTES TU FINANCIAL STATEMEN'IS
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DEBT:
1'he changes in the General Long-Term Debt for the year ended June 30, 1995 were as follows:
Balance at Balance at
June 30. 1994 Additions Pavments June 30. 1995
Compensated
absences $ 752,775 $ 95,679 $ - $ 848,454
Advances from
other funds 11,334,000 8,000,000 334,000 19,000,000
'Pdx Allocation Bonds 121,395,000 28,115,000 1,880,000 147,630,000
� Special Assessment
Bonds 24.473.980 10.277.000 928 980 33.822.000
Total $ 157.955.755 $ 46.487.679 $ 3.142.980 $ 201300.454
A. Compensated Absences Payable:
There is no fixed paymem schedule to pay the gwernmental fund types' outstanding liability
for compensated absences earned at June 30, 1995 of $848,454.
B. Advances From Other Funds:
The Redevelopment Agency has received advances from the City which have been recorded as
an "Other Financing Sources" in the Agency's Capital Project Funds. Since payment by the
Agency back to the City will be made from taz increment revenues in furure years, the debt
from the Agency to the City has been classified in the Long-Tetm Debt Account Group.
Below is a summary of the activity for the advances from the City to the Redevelopment
Agency:
Date of Rates of Ampunt Balance Balance
Issue Interest Authorized Julv 1. 1994 Additions Retirements June 30. 1995
12/OS/86 Varies $6,000,000 $ 6,000,000 $ - $ - $ 6,000,000
12/12/91 Varies 120,000 120,000 - 120,000 -
O1/14/93 Varies 164,000 164,000 - 164,000 -
06/24/93 Varies 50,000 50,000 - 50,000 -
09/23/94 Uaries 5,000,000 5,000,000 - - 5,000,000
03/23/95 Varies 5,000,000 - 8.000.000 - 8•000•000
Principal Balance 11,334,000 8,000,000 334,000 19,000,000
Accrued Interest 327.514 327,514 -
11 334 000 8 327 514 661 514 19 000 000
See independent auditors' report.
-17-
— C1TY OF PALM DESERT —
NOrl'ES TO FINANCIAL STATEMEN'15
(CUNTINUED)
June 30, 1995
6. GENERAL LONG TERM DEBT (CONTINUED):
C. Tex Allocation Bonds:
Tnx Allocation bonds aze special obligations of the Redevelopment Agency and the Financing
Authority, (a component unit of the Redevelopment Agency) and aze secured by an irrevocable
pledge of tax revenues and other funds as pmvided under the Bond Resolution. The Bonds, and
any interest thereon aze not a debt of the City, the State of California or any of its political
subdivisions and neither the City, the State of Califomia nor any of its political subdivisions is
liable on the Bonds, nor in any event shall the Bonds, and interest thereon be payable out of any
funds or properties other than those prwided under the Bond Resolution.
1995 Series Tax Allocation Revenue Bonds (Project Ama No. 11
In June 1995, the Palm Desert Financing Authority issued $24,025,000 of Tdx Alloca[ion
Bonds, (Project Area No. 1) Series 1995. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to finance certain redevelopment
activities of the Agency in Project Aiea No. 1. Interest rates on the bonds vary from 4.0% to
5.2% per annum payable semiannually on April 1 and October 1 with principal maturing
annually.
T'he future debt service requirements on the 1995 Series 'Pdx Allocation Revenue Bonds(Project
Area No. 1) are as follows:
Year Ending
June 30. Princioal Interest Total
1996 $ - $ 1,169,848 $ 1,169,848
1997 160,000 1,403,818 1,563,818
1998 170,000 1,396,778 1,566,778
1999 180,000 1,388,873 1,568,873
2000 185,000 1,380,323 1,565,323
Thereafter 23,330.000 22,497,0_15 45.827A15
$ 24,025.000 $ 29.236.655 $ 53.261.655
See independent auditors' report.
-18-
-- CITY OF PALM DESERT —
NOTES TO FINA'.VCIAL STATEIN_ENT3
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DEST (CONTINUED):
C. Taz Allocation Bonds (Continued):
1995 Series Taz Allocation Reveaue Bonds (Project Area No. 21
In June 1995, the Palm Desert Financing Authority issued $4,090,000 of Tax Allocation Bonds,
(Project Area No. 2) Series 1995. The Palm Desert Financing Authority loaned the bond
proceeds to the Paim Desert Redevelopment Agency to finance certain redevelopment activities
of the Agency in Project Area No, 2. Interest rates on the bonds vary from 4.75% to 5.2% per
annum payable semi-annually on February 1 and August 1 with principal maturing annually on
August 1.
The future debt service requirements on the 1995 Series Tex Allocation Revenue Bonds (Project
Area No. 2) aze as follows:
Yeaz Ending
June 30 Princpal Interest Total
1996 $ - $ 159,957 $ 159,957
1997 - 239,935 239,935
1998 - 239,935 239,935
1999 - 239,935 239,935
2000 25,000 239,342 264,342
Thereafrer 4.065.000 4,009.455 8.074,455
$ 4.090.000 $ 5.128.559 $ 9.218.559
See independent auditors' report.
-19-
-- CITY OF PALM DESERT —
NOTES 'PD FINANCIAL STATEMEN'IS
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DESf (CONTINUED):
C. Tax Allocation Bonds (Continued):
1992 Series A Tex Allocation Revenue Bonds (Project Area No. 1 as Amended)
In April 1992, the Palm Desert Financing Authority issued $100,000,000 in Palm Desert
Financing Authority Tdx Allocation Revenue Bonds (Project Area No. 1 as Amended) 1992
Series A. $42,764,'702 of the $100,000,000 wes loaned to the Agency to advance refund the
1985 Tax Ailocation Bonds, 1985 'Pax Allocation Refunding Bonds and the 1989'Pax Ailocation
Bonds. $40,844,733 was loaned to the Redevelopment Agency to fund additional projects in
the project area. Interest on the Current Interest Bonds (the "Current Interest Bonds") (which
consist of the portion of the Bonds not constituting the Dutch Action Floating Securities and the
Inverse Floating Securities, described later), varies from 4.00% to 6.625% and is payable on
October 1, 1992, and semiannually thereafrer on April 1 and October 1. The Bonds maturing
on April 1, 2022 consist of $39,350,000 Dutch Auction Floating Securities and $39,350,000
Inverse Floating Securities. Interest on the Dutch Auction Floating Securities and Inverse
Floating Securities was initially paid on June 4, 1992 and is due generally every 35 days from
that date.
The future estimated debt service requirements on the 1992 Series A 'Pex Allocation Revenue
Bonds (Project Area No. 1 as Amended) aze as follows:
Yeaz Ending
June 30. Principal Interest 1bta1
1996 $ 1,425,000 ' $ 5,852,563 $ 7,277,563
1997 1,580,000 5,777,751 7,357,751
1998 1,670,000 6,170,479 7,840,479
1999 1,760,000 5,595,557 7,355,557
2000 1,860,000 5,9�4,935 7,834,935
Thereafter 87.795.000 77.056353 164.851353
$ 96.090.000 $ 106.427.638 $ 202.517.638
See independent auditocs' report.
-Za
— CITY OF PALM DESERf —
NOTES TO FINANCIAL STATEMEN'IS
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DESI' (CONTINUED):
C. 'Pdx Allocation Bonds (Continued):
1992 Series A 'Pdx Allocation Revenue Bonds (Project Area 2)
Tn August 1992, the Palm Desert Financing Authority issued $17,505,000 of Tax Allocation
Bonds, (Project Area No. 2) 1992 Series A. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to finance certain redevelopment
activities of the Agency in Project Area No. 2. Interest rates on the bonds vary from 2.7R6 to
6.1259b per annum payable semiannually on February 1 and August 1 with principal maturing
annually on August 1 from 1993 to 2002.
The future debt service requirements on the 1992 Series A Tax Allocation Revenue Bonds
(Project Area No. 2) are as follows:
Year Ending
June 30 Principal Interest Total
1996 $ 265,000 $ 1,003,713 $ 1,268,713
1997 280,000 992,462 1,272,462
1998 290,000 979,988 1,269,988
1999 300,000 966,337 1,266,337
2000 315,000 951,338 1,266,338
1'hereafter 15.545.000 13.341.291 28.886.291
$ 16.995,000 $ 18.235.129 $ 35,230.129
See independent auditors' repoR.
-21-
- CITY OF PALM DESERT -
NOrl'ES TO FINANCIAL STATEMEN'IS
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DEBT (CONTINUED):
C. Tax Allocation Bonds (Continued):
1988 Tez Allocation Bonds
The Bonds were issued in an'original amount of $7,800,000 on September 1, 1988 to finance
imprwements in Project Area 1 as amended. Interest rates on the Bonds vary from 5.75� to
730% with interest payable semi-annually on Mazch 1 and September 1 with principal maturing
annually on September 1. Debt service requirements to maturity ate as follows:
Yeat Endit�g
June 30. Princioal Interest Total
1996 $ 280,000 $ 453,045 $ 733,045
1997 295,000 433,635 728,635
1998 320,000 412,565 '732,565
1999 340,000 389,625 729,625
2000 365,000 364,768 729,768
2001 390,000 337,965 727,965
2002 420,000 308,790 728,790
2003 455,000 276,853 731,853
2004 490,000 242,360 732,360
2005 525,000 205,313 730,313
2006 570,000 165,345 735,345
2007 610,000 122,275 732,275
2008 660,000 75,920 735,920
2009 710.000 25.915 735.915
$ 6.430.000 $ 3.814374 $ 10.244.374
Below is a summary of the changes in Tax Allocation Bonds:
Balance at Balance at
Julv 1. 1994 Additions Pavments June 30. 1995
1995 Tax Allocation Bonds
(Project A�ea No. 1
as Amended) $ - $ 24,025,000 $ - $ 24,025,000
1995 Taz Allocation Bonds
(Project Area No. 2) - 4,090,000 - 4,090,000
1992 Tez Allocation Bonds
(Project Area No. 1
as Amended) 97,450,000 - 1,360,000 96,090,000
1992 T�c Allocation Bonds
(Project Area No. 2) 17,255,000 - 260,000 16,995,000
1988 Taac Allocation Bonds 6.690.000 260.000 6.430.000
$ 121.395.000 $ 28.115.000 $ 1.880.000 $ 147.630.000
See independent auditors' report.
-22-
— CITY OF PALM DESERT _
NOTES 'P� FINANCIAL STATEMENTS
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DEBT (CONTINUED):
D. Special Assessment Bonds Payable:
The Ciry has Special Assessment Bonds Payable issued under the 1911 and 1915 Special
Imprwement Acts and the 1982 Me1lo-Roos Communiry Facilities Act (1982 Bonds). The City
has no liability to 1911 Act bondholders until assessments have been collected from the property
owner. Such liabiliry is then recorded in the Agency Funds. Therefore, the 1911 Bonds are not
recorded as liabilities in the accompanying financial statements.
The City also has no liability to the 1915 Act bondholders or the bondholders of bonds issued
under the 1982 Mello-Roos Community Facilities Act until assessments ue collected on the tax
' rolls. However, the City may take certain actions to assume secondary liability for all or part
of 1915 Act Bonds and the 1982 bonds until such time as foreclosure proceeding are
consummated. Assessments collected on the 1915 Act Bonds and the 1982 Bonds will be
recorded as liabilities in Debt Service Funds pursuant to the Gwernmental Accounting Standazds
Board Statement relating to Accounting and Financial Reporting for Special Assessments.
Special assessment bonds payable, as described below, aze recorded in the General Long-Term
Debt Account Group, as the City is obligated as a secondary source of funds for repayment in
the event of default by the assessed property owners.
Assessment District No. 83-1
The Bonds were issued in an original amount of $2,243,566 on October 2, 1986 to help fund
the construction of streets, curbs, gutters, sidewalks, storm facilities and driveways in the
assessment District. Interest rates on the bonds vary from 7.00% to 12.00% with interest
payable semi-annually on March 2 and September 2 with principal maturing annually on
September 2. Debt service requiremems to marurity are as follows:
Year Ending
June 30. Principal Interest Total
1996 $ 95,000 $ 75,142 $ 170,142
1997 105,000 66,090 171,090
1998 115,000 56,022 171,022
1999 125,000 45,051 170,051
2000 140,000 32,661 172,661
Thereafter 320.000 24.875 344.875
$ 900.000 $ 299.841 $ 1.199.841
See independent audito�' report.
-23-
-- CTfY OF PALM DESERT —
NC`TES 'PO FINANCInL STATEMENTS
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DEBT (CONTINUED):
D. Special Assessment Bonds Pa}able (Continued):
Assessment District 84-1 Refundin¢
The Bonds were issued in an original amount of$8,275,000 on Mazch 29, 1988 pucsuac�t to the
Refunding Act of 1984 for 1915 Act Imprwement Bonds to refund the City's $8,853,994, 1915
Act Assessment Bonds, North Sphere Assessment District No. 84-1, dated November 2, 1985
which matured on or afrer September 2, 1988. The proceeds for the original bonds were used
to help fund the opening of and construction and installation of streets, sanitary sewers, and
domestic water improvements, including the acquisition of land in the Coachella Valley
Ecological Reserve. Interest rates on the bonds vary from 5.25% to 7.90% with interest
payable semi-annually on Mazch 2 and September 2 with principal maturing annually on
September 2. Debt service requirements to maturity are as follows:
Yeaz Ending
June 30. Princioal Interest Total
1996 $ 350,000 $ 411,492 $ 761,492
1997 370,000 386,643 756,643
1998 395,000 359,473 754,473
1999 425,000 329,527 754,527
2000 455,000 313,803 768,803
1'hereafter 3.580.000 888.193 . 4,468,193
$ 5.575.000 $ 2.689.131 � 8.264.131
Assessment District No. 87-1
The Bonds were in an original amount of $4,135,123 on September 2, 1989 to help fund the
construction of unprovements in the Assessment District. Interest rates on the bonds vary from
5.75% to 7.70% with interest payable semi-annually on March 2 and September 2 with principal
maturing annually on September 2. Debt service requirements to maturity are as follows:
Year Ending
June 30 Princinal Interest '[btal
1996 $ 135,000 $ 237,493 $ 372,493
1997 150,000 227,368 377,368
1998 160,000 216,126 376,126
1999 170,000 203,997 373,997
2000 180,000 190,958 370,958
Thereafter 2.405.000 921.145 3.326.145
� 3.200.000 $ 1.997.087 $ 5.197.087
See independent auditors' report.
_�
— CITY OF PALM bBSBTtT —
NdTES TO FINANCIAL STATEMEN'I5
(CONTRdUED)
June 30, 1995
6. GENERAL LONG TERM DEBf (CONTINUED):
D. Special Assessment Aonds Payable (Continued):
Assessment District No. 92 - 1
The bonds were issued in an original amount of $2,298,980 in December, 1992 to finance the
acquisition of water, sewer and street impmvements associated with the Sierranova residential
development. The bonds aze secured by unpaid assessments on certain pazcels within
Assessment District No. 92 - 1 which was created by the City specifically to finance the Project.
Under the 1915 Act, annual installments of the unpaid assessments sufficient to meet scheduled
debt service on the bonds aze to be included on the regulaz county tax bills for the assessed
pazcels against which there aze unpaid assessments. Interest rates on the bonds vary from
4.70� to 7.60% with interest payable semiannually on Mazch 2 and September 2 of each yeaz
with principal tnahtring annually on September 2. Debt service requirements to maturity aze
as follows:
Year Ending
June 30. Principal Interest lbtal
1996 $ 70,000 $ 159,553 $ 229,553
1997 75,000 155,506 230,506
1998 80,000 150,950 230,950
1999 85,000 145,915 230,915
2000 90,000 140,400 230,400
Thereafter 1.855.000 1.048.071 2.903.071
$ 2.255.000 $ 1.800395 $ 4.055395
Communitv Facilities District No. 91-1
The Bonds were issued in an original amount of $11,870,000 in July, 1992 pursuant to the
Mello-Roos Community Facilities Act of 1982, as amended, to finance the acquisition,
construction and installation of certain public imprwements in the District. 'The debt service
payments are payable from the proceeds of an annual special tax to be levied on and collected
from property within the District. The special taz is to be levied according to annual rate
apprwed by the City Council of the City of Palm Desert. Interest rates on tha bonds vary from
5.00% to 7.60% with interest payable April 1 and October 1 of each yeaz with principal
maturing annually on October 1. Debt service requirements to maturity are as follows:
See independent auditors' report.
-25-
_. CITY OF PALM DESERT _
NOTES 'PD FINANCIAL STATEMENIS
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DESI' (CONTINUED):
D. Special Assessment Bonds Payable (Continued):
Community Facilities District No. 91-1 (Continuedl
Year Ending
June 30. Princival Interest Total
1996 $ 220,000 $ 848,167 $ 1,068,167
1997 235,000 835,361 1,070,361
1998 250,000 821,105 1,071,105
1999 265,000 805,323 1,070,323
2000 280,000 784,942 1,064,942
Thereafrer 10.410.000 8.582.162 18.992.162
$ 11.660.000 $ 12.677.060 $ 24.337.060
Assessment District No. 94-1
The bonds were issued in an original amount of $6,945,000 in August 1994 to finance the
design, acquisition and construction of certain public improvements for the benefit of
Assessment District No. 94-1 (Bighorn). The bonds are secured by unpaid assessments on
pazcels with the Assessment District 94-1 which was created by the City specifically to finance
the project. Under the 1915 Act, annual assessments of the unpaid assessments sufficient to
meet the schedule debt service on the bonds are to be included on the regulaz county tax bills
for the assessed pazcels for which there are unpaid assessments. Interest rates on the bonds vary
from 5.20% to 7.625% with interest payable Semiannually on March 2 and September 2 of each
year with principal maruring annually on September 2. Debt service requirements to marurity
are as follows:
Yeaz Ending
June 30. Princioal Interest Total
1996 $ - $ 501,771 $ 501,771
1997 125,000 498,521 623,521
1998 130,000 491,566 621,566
1999 140,000 483,696 623,696
2000 145,000 475,019 620,019
Thereafrer 6360.000 6.017.929 12377.929
$ 6.900.000 $ 8.468.502 $ 15.368,502
See independent audito:s' report.
-26-
_ CITY OF PALM DESERT _
NOTES TO FINANCIAL STATEMEN'1$
(CONTINUED)
7une 30, 1995
6. GENERAL LONG TERM DEBT (CONTINUED):
D. Special Assessment Bonds Payable (Continued):
Assessment District No. 94-2
The bonds were issued in an original amount of $1,832,000 in December 1994 to finance the
acquisition of certain public imprrnements with Assessment District No. 94-2 (Sunterrace) (the
District). The bonds aze secured by unpaid assessments on pazcels with the District. Under the
1915 Act, annual assessments on the unpaid assessments sufficient to meet the scheduled debt
service requirements aze to be included on the regulaz counry tax bills for the assessed pazcels
for which there aze unpaid assessments. Interest rates on the bonds vary from 5.75% to 8.20%
with interest payable semiannually on Mazch 2 and September 2 of each year with principal
maturing annually on September 2. Debt service requirements to maturity are as follows:
Yeaz Ending
June 30. Frincival Interest 'Ibtal
1996 $ - $ 143,105 $ 143,105
1997 47,000 141,754 188,754
1998 50,000 138,840 188,840
1999 55,000 135,421 190,421
2000 60,000 131,640 191,640
Thereafter 1.620.000 1.174.067 2.794.067
$ 1.832.000 $ 1.864.827 $ 3.696.827
Assessment District 943
The bonds were issued in an original amount of $1,500,000 in May 1995 to finance the
acquisition and construction of certain public improvements within Assessment District No. 943
(Merano) (the District). The bonds are secured by unpaid assessments on parcels within the
District. Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet
the scheduled debt service requirements aze to be included on the regulaz county tax bills for
the assessed pazcels for which there aze unpaid assessments. Interest rates on the bonds vary
from 4.70% ro 6.80� with interest payable semiannually on Mazch 2 and September 2 with
principal maturing annually on September 2. Debt service requirements to maturity are as
fallows:
See independent auditors' report.
_27_
_ CITY OF PALM DESERT _
NOTES 'PD FINANCIAL STATEMEN'I3
(CONTINUED)
June 30, 1995
6. GENERAL LONG TERM DEBT (CONTINUED):
D. Special Assessment Bonds Payable (Continued):
Assessment District 94-3 (Continuedl
Year Ending
June 30. Princinal Interest Total
1996 $ - $ 98,220 $ 98,220
1997 25,000 97,033 122,033
1998 30,000 95,458 125,458
1999 30,000 93,808 123,808
2000 30,000 92,083 122,083
Thereafter 1385.000 1.148.813 2.533.813
$ 1.500.000 $ 1.625.415 $ 3.125.415
Below is a summary of the changes in the Assessment Bonds Payable:
Balance at Balance at
Julv 1. 1994 Additions Deletions June 30 1995
Assessment District 83-1 $ 1,015,000 $ - $ 115,000 $ 900,000
Assessment District 84-1
Refitnding 5,915,000 - 340,000 5,575,000
Assessment District 87-1 3,375,000 - 175,000 3,200,000
Assessment District 92-1 2,298,980 - 43,980 2,255,000
Community Facilities
District 91-1 11,870,000 - 210,000 11,660,000
Assessment District 94-1 - 6,945,000 45,000 6,900,000
Assessment District 94-2 - 1,832,000 - 1,832,000
Assessment District 943 1.500.000 1.500.000
$ 24.473.980 $ 10.277.000 $ 928.980 $ 33,822.000
See independent auditors' report.
-28-
_ CITY OF PALM DESERT _
NOTES 'PO FINANCIAL STATEMEN'IS
(CONTINUEDj
June 30, 1995
7. DEFERRED COMPENSP+TION PLAN:
The City offers its employees a defeaed compensation plan created in accordance with Intemal
Revenue Code Section 457. The plan, available to all City employees, pernrits them to defer a
portion of their salary until future years. The deferred compensation is not available to employees
until termination, retirement, death or unforeseeable emergency.
All amoums of compensation deferred under the plan, all property and rights purchased with those
amoums, and all income attributable to those amounts, property or rights aze (until paid or made
available to the employee or other beneficiary) solely the property and rights of the City (without
being restricted to the provisions of benefits under the plan), subject only to the claims of the City's
general creditors. Participants' rights under the plan aze equal to those of general creditors of the
' City in an amount equal to the fair market value of the deferred account for each participant.
The City has the duty of due caze that wnuld be required of an ordinary prudent imestor. The City
believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the
future.
The following is a summary of the increases and decreases of the fund for the year ended June 30,
1995.
Fund Assets (at Mazket Value), Beginning of Year $ 1,972,070
Contributions 263,166
Additions - Income Changes in Market Ualue 226,922
Withdrawals and expenses (51.8311
Fund Assets (at Mazket Value), End of Yeaz $ 2.410.327
8. DEPOSI'IS PAYABLE:
Property ta�ces related to the incremental increase in assessed values after the adoption of the
Redevelopment Plan are, except where otherwise provided by specific agreement, allocated to the
Agency. All taxes on the "frozen" assessed valuation of the property are allocated to the City and
other talcing agencies. The Agency has entered inro various pass-through agreements with other tax
agencies to allocate their tax increment resulting from the increase in assessed values afrer the
adoption of the Redevelopmern Plan. At June 30, 1995, the Agency is holding $10,579,574 in trust
on behalf of other taxing agencies related to specific pass-through agreements which is included in
the total deposits of$11,745,629.
See independent auditors' report.
-29-
_ CITY OF PALM DESERT __
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
June 30, 1995
9. BOND REQUIREMENTS:
At June 30, 1995 the fund balance reserve requirements and actual reserve balances are presented
as follaws:
Reauirement Actual
1988 Tdx Allocation Bonds $ 643,000 $ '773,359
Assessment District No. 83-1 Bonds 88,016 384,493
Assessment District No. 84-1 Refunding Bonds 359,997 1,802,'740
Assessmem District No. 87-1 Bonds 338,295 1,872,481
1992 Series A 'Pex Allocation Bonds
(Project Area No. 1 as Amended) 7,841,271 16,189,558
1992 Series A'Pnx Allocation Bonds
(Project Area No 2) 1,278,556 1,448,992
Assessment District No. 92-1 229,898 436,489
Community Facilities District No. 91-1 1,078,930 1,813,612
Assessment District 94-1 628,906 1,252,734
Assessment District 94-2 183,200 359,041
Assessment District 943 127,500 191,907
1995 Series Tax Allocation Bonds
(Project Area No. 1 as Amended) 1,955,525 15,357,950
1995 Series Tax Allocation Bonds
(Project Area No. 2) 343,900 2,560,087
These acrual amounts are included in Fund Balance Reserved or Designated for Debt Service (see
Note 12).
10. DEFEASED OBLIGATIONS:
The City defeased certain Redevelopmem obligations by placing the proceeds of new obligations
in an irrevocable trust to prwide for all future debt service payments on the old obligations.
Accordingly, the tmst account assets and the liability for the defeased obligations aze not included
in the accompanying financial statements.
At June 30, 1995, the following obligations are considered defeased.
Amount of Defeased
Issue Debt Still Outstandine
1982 Tdx Allocation Bonds $ 5,290,000
1985 Refunding Ta�c Allocation Bonds 13,000,000
1985 T� Allocation Bonds 20,095,000
1989 Tax Allocation 4,935,000
See independent auditors' report.
-30-
__ CITY OF PALM DESERT _
NdTES 'In FINANCIAL STATEMEII'IS
(CONTINU£A)
June 30, 1995
11. CITY EMPL�YEES' RETIREMENT PLAN:
A. Plan Description:
'fhe Ciry of Palm Desert contributes to the Califomia Public Employees' Retiremen[ System
(PERS), an agent multiple-employer public employee retirement system that acts as a common
imestment and administrative agent for participating public entities within the State of
California.
The City's payroll for employees covered by the system for the year ended June 30, 1995 was
$4,476,295 for miscellaneous members.
All full-time City employees aze eligible to participate in the system. Benefits vest afrer five
years of service. Miscellaneous employees who retire at or after age 60 are entitled to an
annual retirement benefit payable montlily for life in an amount equal to twa percent (2%) of
their highest annual salary for each yeaz wer five (5) yeazs. The system also prwides death
and disability benefits.
The City employees' required contribution to the System of seven percent (7%) of annual salary
for miscellaneous members is curren8y paid by the City. Additionally, the City of Palm Desert
is required to contribute the remaining amounts necessary to fund the benefits for its members,
using the actuarial basis recommended by the PERS acmazies and acruarial consultants and
adopted by the Boazd of Administration.
B. Funding Status and Progress:
The amount shown below as the "peasion benefit obligation" is a standardized disclosure
measure of [he present value of pension bene£its, adjusted for the effects of projected salary
increases and step-rate benefits, estimated ro be payable in the future as a result of empioyee
service to date. The measure is intended to help users assess the funding status of the system
on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits
when due, and make comparisons among employers. 'fhe measure is the acruarial present value
of credited projected benefits and is independent of the funding method used to determine
contributions to the System.
The pension benefit obligation was computed as part of an actuarial valuation performed as of
June 30, 1994. Significant acaazial assumptions used in the valuation include: a) a rate of
return on the investment of present and future assets of 8.50% a yeu compounded annually,
b) projected salary increases that vary by length of service, c) an inflation rate of 4.50%, d)
merit increases for salary that vary by length of service.
See independent auditors' report.
-31-
- CITY OF PALM DESERT —
NOQ'ES TO FINANCIAL STATEMENIS
(CONTINUED)
June 30, 1995
11. CITY EMPL�i'EES' RETIItEMENT PLAN (CONTINUED):
B. Funding Status and Progress (Continued):
Asseu in e�ess of the pension benefit obligation applicable to the Ciry's employees was
$2,914,113 at June 30, 1994:
PENSION BENEFIT OBLIGATION:
Retirees and beneficiazies currently receiving benefits
and terminated employees not yet receiving benefits $ 1,740,783
C�rrent employees - accumulated employee contributions
including allocated imestment earnings 2,905,072
Employer - financed vested 2,645,433
Employer - financed nomested 153.624
'POTAL PENSION BENEFIT OBLIGATION 7,444,912
AGTUARIAL UALUE OF ASSE'IS
(MARKET VALUE IS $10,327,948) 10.359.025
ASSE'IS IN EXCESS OF PENSION BENEFIT OBLIGATION $ 2.914.113
CHANGES IN THE PENSION BENEFIT OBLIGATION
FROM LAST YEAR INCREASE (DECREASE) DUE 'P0:
Changes in benefit provisions $ -
Changes in actuarial assumptions $ (614,619)
Actuarial infotmation relating to the plan was not available from PERS for the yeaz ended
June 30, 1995.
C. Contributions Required and Comributions Made:
PERS uses the Entry Age Norma! Actuazial Cost Method which is a projected benefit cost
method. That is, it takes into account those benefits that aze expected to be eamed in the future
as well as those already accrued.
According to this cost method, the normal cost for an employee is the level amount which would
fund the projected benefit if it were paid annually from date of employment until retirement.
PERS uses a modification of the Entry Age Cost Method in which the employers' total notmal
cost is expressed as a level petcentage of payroll. PERS also uses the level percentage of
payroll method to amortize any unfunded actuarial liabilities. The amortization period of the
unfunded acmazial liability ends on June 30, 2000 for prior service benefits and June 30, 2005
for other benefits.
See independent auditors' report.
-32-
- CITY OF PALM DESER'i'. —
N�fES 'PD FINANCIAL STATEMENTS
(CONTINUED)
June 30, 1995
11. CITY EMPLQi'EES' RETIREMENT PLAN (CONTINLTED):
C. Contributions Required and Contributions Made (Continued):
The significant actuazial assumptions used to compute the actuazially deternuned contribution
requirements are the same as those used to compute the pension beneFit obligations, as
previously described.
The contribution to the System for 1995 was made in accordance with actuarially determined
requirements computed through an actuarial valuation performed as of June 30, 1994. The total
contribution to the system of$747,091 consisted of the employers share of $422,428 (9.4% of
covered payroll), the employee portion paid by the employer of $315,910 (7.00% of covered
payroll) and employee paid contributions of $8,753 (.02� of covered payroll).
D. Trend Infomiation:
Trend information gives an indication of the progress made in accumulating sufficient assets to
pay benefits when due. System-wicle ten-yeaz trend information is not yet available.
Wlthin the City's financial statement, ten yeazs of historical trend information aze required.
Therefore, the trend information is summarized as follows:
1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94
Net assets available for
benefits expressed as a
percentage of the pension
benefitobligation 130.6% 129.0% 111.5% 112.9% 111.5% 112.0% 139.1%
Unfunded (assets in �
excess o� pension benefit
obligadon expressed as a
percentage of annual
cmered paymll (33.9) (33.5) (15.0) (16.0) (15.7) (I8.1) (62.6)
Employer connibutions
expressed as a percentage
of annual coveced payroll.
These conuibuUons were
made in accordance with
actuarialty detetmined
requiremens. 7.66 8.47 8.51 10.1'7 8.66 8.44 9.44
See independent audito�' report.
-33-
-- CITY OF PALM DESERT —
NOr1'ES 'PD FINANCIAL STATEMENTS
(CONTINUED)
June 30, 1995
12. FUND BALANCE RESERVES AND DESIGNATIONS:
Reserves segregate portions of fund balance that aze not available spendable resources. The various
reserve established as of June 30, 1995 were as follows:
Special Debt Capital
General Revenue Service Project
RESERVED: Fund Funds Funds Funds
Encumbrances $ 3,095,063 $ 2,606,051 $ - $ 3,684,729
Receivables 65,000 429,000 5,899,000 -
Advances 5,581,000 654,000 - 12,765,000
Prepaid expenses 48,434 - 5,304 3,157
Debt service - 643,000 14,453,994 -
Specific projects
and programs 1,474,478 - - 200,000
Continuing
appropriations - 3,557,845 - 24,152,047
Low income purposes - 1.786.587 - -
10 263 975 $ 9.676.483 $ 20.358,298 $ 40.804.933
DESIGNATED:
Special revenue purposes $ - $ 5,811,855 $ - $ -
Debt service - 130,359 43,030,317 -
Capital outlay - - - 35,401,930
General contingencies 9.911.514 - - -
$ 9.911.514 $ 5.942.214 $ 43.030317 $ 35.401.930
Reserved for Encumbrances - These reserves represent the portion of purchase orders awarded for
which the goods or services had not yet been received at June 30, 1995. Although all
appropriations lapse at yeaz-end, even if encumbered, the City intends either to honor the contracts
in progress or to cancel them. Reserve for encumbrances aze rebudgeted on July 1, by Council
action.
Reserved for Receivables - This reserve is set up to reflect the non-current portion of receivables
so that they will not be considered as current funds available.
Reserved for Advances - 1'his reserve is set up to reflect the advances to the Redevelopment Agency
so that they will not be considered as cunent funds available.
Reserved for Preoaid Exoenses - This reserve represents contractual obligations for cash payments
made before June 30, 1995, but not recagnized as an ea�pendimre until afrer July 1, 1995.
See independent auditors' report.
-34-
_ CITY OF PALM DESERT �
NOTES 1� FINANCIAL STATEMENIS
(CONTINUED)
June 30, 1995
12. FUND BALANCE RESERVES AND DESIGNATIONS (CONTINUED):
Reserved for Debt Service - These reserves for Debt Service represent reserves accumulated by the
City and the Redevelopment Agency that aze legally restricted to the payment of long-term debt
principal and interest amounts that mature in future years.
Reserved for Specific Proiects and Pro�runs - These reserves represent specific projects and
programs for which the City has made a commitment towards completion.
Reserved for Continuing Apnrouriations - This reserve is for appropriations for capital projects
which are unexpended as of June 30, 1995 and aze cazried forward as continuing appropriations to
be expended in 1995-96.
Reserved for Low Income Purooses - This reserve is for amounts set aside from t� increment
money received by the Redevelapment Agency and is to be spent on projects benefitting low income
fanulies.
Designated for Soecial Revenue Pumoses - These funds are designated for specific special revenue
purposes as restricted by law or administrative action.
DesiQnated for Debt Service - 1'hese funds are designated for payment of principal and interest on
General Long-Term Debt.
Designated for C�ital Outlav - These funds aze designated for capital outlay for future projects.
Designated for General Contin eg ncies - These funds in the General Fund are designated for general
contingencies.
13. INSURANCE:
The Ciry is a member of the Coachella Yalley Joint Powers Insurance Aut6ority (CVJPIA), a joint
powers authoriry formed under Section 990 of the California Gwemment Code for the purpose of
jointly funding programs of insurance coverage for its members. The Authority is currently
comprised of twenty-six participating member agencies, twenty-three cities with populations ranging
from 1,500 to 130,000, a transit agency with a fleet of sixty revenue vehicles and twn special
district.
The City participates in the liability, urorker's compensation and long-term disability insurance
programs of CVJPIA.
See independent auditors' report.
-35-
- CITY OF PALM DESERT _
NO�'ES TO FINANCIAL STATEMENIS
(CONTINUED)
June 30, 1995
13. INSURANCE (CONTINUED):
The Liabilitv Proeram consists of a banking pool, a risk sharing pool and insurance purchasing
pool. At June 30, 1995 coverage is provided from $125,000 to $10,000,000 per occurrence. This
risk sharing pool pmvides coverage from $125,000 to $1,000,000 per occurrence. T'he insurance
purchasing pool is ezcess cwerage purchased by the authority to cover losses from $1,000,000 to
$10,000,000 per occuaence. The City has a SIIt of $125,000. Cwered losses include losses
resulting from any one occunence because of personal injury, property damage or public officials
enors and omissions. Member premiums aze subject to retrospective rating adjustments.
For those members choosing to establish deductibles under the liability program (banking pool),
losses in excess of the deductible amounts are paid by the Authoriry from separate accounts
maintained for each participant. 1'he deductible feature of the program acts as a claims servicing
type of public entity risk pool and dces not represent an additional transfer of risk. The City does
not participate in the deductible pool.
The Workers' Comnensation Insurance Pro¢ram is a clai[ns servicing pool, a banking pool and an
insurance purchasing pool. As an insurance purehasing pool, the program allows participating
members to obtain the benefits of the economies of scale in securing excess wurkers' compensation
cwerage. Coverage is provided from$250,000 to the statutory limit for each accident or employee.
T'he program, as a claims servicing pool maintains sepazate accounts for each program member from
which that member's losses are paid. The workers' compensation insurance program does not
provide for a transfer of risk and therefore, each member is responsible individually for its own
losses. The pool will advance funds to pay member losses in excess of inember funds on deposit
in the manner of a banking pool. Pdrticipant premiutn deposits are subject to tetrospective rating
adjustments.
See independent auditors' report.
-36-
— CITY OF PALM DESERT —
NOTES TO FINPNCIAL STATEMEN'IS
(CONTL'VUED)
June 30, 1995
13. INSURANCE (CONTINUED):
The Long-Term Disabilitv Proeram is an insurance purchasing pool under which participating
members obtain the benefits of the economies of scale while securing the coverage. T'here is no
transfer of risk under this program.
Summary financial information for the programs for the yeaz ended June 30, 1995 is presented as
follows:
Workers' I.oc�g-Term
Compensation Liabilicv Disabilitv Administration 1bta1
Total assets $ 20.000 $ 9.789.220 146 368 $ 167.977 10 123 565
Total liabilities $ 20,000 $ 8,290,585 $ 146,368 $ 167,977 $ 8,624,930
Total equity - 1.498.635 - - 1.498.635
Total liabilities
and equity $ 20.000 $ 9.789.220 146 368 $ 167.977 10 123 565
Operating revenues $ - $ 3,039,446 $ - $ - $ 3,039,446
Openting expenses - 1.704.559 - 1.704.559
Operating income (loss) - 1,334,887 - - 1,334,887
Nonoperating
revenues (expenses) - 355,136 - - 355,136
Extraordinary gain - 108.156 - - 108 156
Net income (loss) - 1,798,179 - - 1,798,179
Retained eaznings -
beginning of year - (299.5441 - (299.5441
Retained earnings -
(deficit) end of yeaz$ - 1 498 635 � $ - 1 498 635
The authority has no long-term debt as of June 30, 1995.
The aforementioned information is not included in the accompanying financial statements.
14. ASSESSMENIS RECEIYABLE:
The receivable represents future assessments to be received from property owners in Assessment
Districts 83-1, 84-1, 87-1, 92-1, 94-1, 942, 94-3 and Community Facilities District (CFD) No.
91-1 to pay for long-term obligations incurred in making capital improvements to each Assessment
District. (See Note 6D). Recognition of the revenue from the assessments has been defened until
it becomes available. Once received, the monies will be used to make annual debt service
payments.
See independent auditors' report.
-37-
-- CITY OF PALM DESERT —.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
June 30, 1995
15. INVESTMEN'IS IN LITIGATION:
In December 1991, it was learned that the Securities and E�hange Commission (SEC) conducted
an imestigation of Institutional Treasury Management (ITIVn and froze cectain assets administered
by ITM including the Redevelopment Agency's. It was subsequendy announced that ITM had
diverted funds and/or securities in client accounts to other accounts without the clienYs Imowledge.
The Redevelopment Agency internal records identify $4,212,144 being urvested with ITM but the
imestments have not been verified with a third party. At June 30, 1995, the financial statements
reflect the aznounts invested with ITM which have not been confirmed with a third pazty.
The Agency has retained counsel to diswver the facts in this case and to take appropriate legal
action to protect the interests of the Agency. Management is confident that the actions legal counsel
has taken to date will result in the best possible retum of the funds. As of June 30, 1995,
management dces not lrnow the amount of funds the court may awdrd from the imestment principal
of$4,212,144. The Agency will pursue recovery from third parties of any amounts not recovered.
16. MORTGAGE REVENUE BONDS:
In August 1994, the Palm Desert Redevelopment Agency issued $15,100,000 in Uariable Rate
Demand 1994 Multifamily Housing Revenue Bonds (Bonds). The Agency issued the bonds to
finance a loan to Civic Center Barrio Housing Corporation (Corporation), a Califomia Non-Profit
Public Benefit Corporation pursuant to a financing agreement between the Agency and the
Corporation dated August 1, 1994 to prwide funds to provide permanent financing for 161 newly
constructed residences and related imprwements in the City of Palm Desert to be owned by the
Corporation and sold or leased, with an option to purchase, to low and moderate income persons
and families. The Bonds aze limited revenue bbligations of the Agency payable solely from the
revenues (with respect to the Bonds other than the Tdx Allocation Bonds), the pledged t� revenues
(with respect to the 'Pdz Allocation Bonds), and the fitnds and accounts pledged under the indenture.
The Agency has pledged tax revenues in a sum not to exceed $600,000 per annum to pay debt
service on any bonds converted to 'Pax Allocation Bonds.
See independent auditors' report.
-38-
CITY OF PALM DESERT _
NOTES TO FINANCIAL STATEMEN'IS
(CONTINLIED)
June 30, 1995
17. SUBSEQUENT EVEN'I3:
a. 1'� Allocation Revenue Refunding Bonds 1995 Series A:
In August 1995, the Palm Desert Financing Authority issued $6,305,000 in Tez Allocation
Revenue Refunding Bonds 1995 Series A. The proceeds from the ta�c allocation bonds were
loaned to the Agency to provide funds to refund in advance $6,430,000 in the 1988 Tax
Allocation Bonds (See Note 6). The advance refunding resulted in an economic gain of
$907,760 (difference between the present value of the annual debt service payments between
the old debt and new debt) and a decrease in aggregate debt service payments of$1,441,052.
b. 1995 Revenue Bonds:
In September 1995, the Palm Desert Financing Authoriry issued $7,540,000 1995 Revenue
Bonds. The proceeds from the revenue bonds �re loaned to the City to provide funds to
refund in advance $900,000 Assessment District No. 83-i Bonds, $5,575,000 in Assessment
District 841 Refunding Bonds and $3,200,000 in Assessment District No. 87-1 Bonds. (See
Note 6). The advance refunding resulted in an economic gain of$612,476 (difference between
the present value of the annual debt service payments between old debt and new debt) and a
decrease in aggregate debt service payment of$4,353,724.
c. Proposition 62:
On September 28, 1995, the California Supreme Court affirmed a Court of Appeals decision
which reinstated prwisions of Proposition 62 originally enacted in 1986 and then reversed by
a lower court. Under these provisions of Prpposition 62, Califomia gwemmental agencies are
required to obtain a majoriry voter approval for any ta�c to be enacted. It is uncleaz whether the
Supreme Court ruling will be made rettoactive to 1986, thus causing California cities and
districts to refund to taxpayers such taxes collected as utility, business license or hotel
occupancy taxes. At this time, it is uncertain as to the outcome or the possible financial impact
to the City.
See independent auditors' report.
-39-
SUPPLIII�NTAL INFORMATION
SUPPLEMENTAL INFORMATION
- CITY OF PALM DESERT �
I:11995\CAFR\PALMI)ES\nti2.WK1
STATEMENT OF REVENUES-BLTDGET AND ACI'UAL-GENERAL FUND
For the year ended June 30, 1995
Budget Actual
Propertytaxes S 1,630,300 S 1,923,273
Property transfer tax 200,000 191,808
Timeshare mitigation fee 200,000 450,150
Sales tax 6,850,000 7,222,169
Business licensc tax 580,000 588,129
Job valuation fees 13,000 26,981
Transieut occupancy tax 4,450,000 4,653,958
Franclrises 1,150,000 1,287,902
Penalties and interest on taxes 8,000 14,436
Building permits 490,000 709,570
Grading permits 35,000 19,305
Valet parking permits 500 475
Encroachment permits 3,000 9,301
Golf permits - 30
Miscellaneous permits 1,000 2,854
Businessregulatory permits 20,000 34,261
State grants - 2,875
Trailer coach fees - 3,846
Motor vehicle in-lieu fees 950,000 971,836
Off highway in-iieu fees 500 151
Subventionsfrom state - 41,077
Monthly parking bail 12,000 9,533
Subdivision fees 95,000 115,584
Znning fees I5,000 10,745
Plan checkfees 300,000 320,955
Sale of maps and publications 5,000 19,949
Microfilm fees 10,000 17,031
Otherfees - 50,000
Code compliance 10,000 10,725
Strong motioa instrument fee 12,000 13,490
Buildinginspeclion service - 400
Specialinvestigation fee 10,000 1,132
Certificate of compliance fee - 2,575
Nuisance abatement tax 15,000 7,156
ReimbursementRDAwsts 450,000 394,563
Other reimbursements 68,300 205,650
Vehicle code fines 30,000 45,161
Recovery of investment loss - 75,087
Municipal court 5nes 20,000 8,309
Interestiuwme 750,000 1,304,192
Intereston advances - 327,812
Rental income 24,000 29,495
Otherrevenue - 84,292
Transfer in 485,000 855,671
TOTALS $ 18.892.600 $ 22,063,894
See independent suditors report.
-40-
, - CTfl'OF PALM DESERT -
I:\1995\CAFR\PALMCES , _,i3.WK1
STATEMENT OF EXPENDITURES-BUDCET AND ACfLJAL-GENERAL FUND
For the year ended June 30, 1995
Budget Actuat
City council S 96,710 S 101,100
City clerk 374,090 331,365
I,egislative advceacy 31,280 26,500
City attoruey 133,850 132,000
Legal special services 524,700 644,623
City manager 493,155 477,505
Finance 485,254 401,066
Auditing 45,540 39,919
Human resources 328,278 267,642
General services 544,219 549,841
Data processing 207,500 133,891
Unemployment insurance 6,900 7,838
Insurance 302,500 214,391
Refund prior year revenue - 11,564
Interfund transfers - 52,254
Police services 5,270,672 5,050,900
Animal regulation 86,160 73,340
Nuisance abatement 10,000 1,741
Traffic safety 595,829 372,525
Disasterpreparedness 216,232 193,110
Public works administration 1,647,969 1,330,248
Street maiatenance 1,597,947 1,177,970
Street resurfacing 686,633 257,430
Public works curb and gutter 154,359 73,445
Public works cross cutter 294,220 155,771
Public works tie in paving 19,300 -
Public works stripping 165,800 114,706
Public works wrporate yard 63,490 27,213
Public works equipment 162,451 109,900
Public works building maintenance 249,419 228,939
Public works auto 117,320 111,330
Public works storm water permit 1,000 -
Golf cart transportation improvement - 4,500
Community promotions 1,429,392 1,304,394
Hautline 30,000 14,404
Art committee 59,700 31,598
Building and safety 915,027 868,344
Buildi¢g safety demolition 9,000 -
Code enforcement 549,361 503,339
Economic development 139,448 135,210
Community developmeut 672,321 627,253
Healt6 and welfare 106,973 99,797
Park maintenance 1,061,821 800,526
Civic center park 362,029 280,204
Contributions to other agencies 286,600 253,723
Retiree - 3.�2�
TOTALS S 20,534,449 $ 17,597,079
See independent auditars' report.
-41-�
� � CITY OF PALM DESERT �
I:\1995\CAFR\PALMDES\bs.V✓Kl
COMBINING BALANCE SHEET—ALL SPECIAL REVENUE FUNDS
June 30, 1995
Housing
Traffic Gas Mitigation Community
Safety Tax Measure A Fee Development
ASSETS
Cash and investments S — $ — S 3,739,164 $ 771,619 $ 256
Cash with fiscal agent — — — — —
Accounts receivable — — — — —
Interest receivable — — — — —
Due from other
governmental agencies 6,129 — 125,428 — —
Loans receivable — — — — —
Advances to other funds — — — — —
Prepaid expenses — — — — —
TOTALASSETS $ 6,129 $ — $ 3,864,592 $ 771.619 $ 256
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts payable $ — $ — $ 20,554 $ — S 256
FUND BALANCES:
Reserved — — 3,844,038 — —
Unreserved—designated 6,129 — — 771,619 —
TOTAL FUND BAI.ANCES 6,129 — 3,844,038 771,619 —
TOTAL LIABILITIES
AND FUND BALANCES $ 6,129 $ — $ 3,864,592 $ 771,619 $ 256
See independent auditors'report.
—42—
New Park and Fire
Prop A Construction Planned Recreation Traffic Facilities People
FireTax Tax Drainage Facilities Signals Restoration Mover
3 303,177 3 2,663,395 $ 1,542,925 $ 1,405,809 $ 1,221,471 $ 25,591 $ 8,844
— — — — 32,540 — —
89,977 — — — — — —
— 654,000 — — — — —
$ 393,154 $ 3,317,395 $ 1,542,925 $ 1,405,809 $ 1,254,011 S 28.591 $ 8,544
s 3so.000 s — s — s — s — a — s :�,soo
— 659,456 1,542,925 12,991 727,430 — 1,500
43,154 2,657,939 — 1,392,818 526,581 28,591 3,844
43,154 3,317,395 1,542,925 1,405,809 1,254,011 28,591 5,344
$ 393,154 $ 3,317,395 $ 1,542,925 $ 1,405,809 $ 1,254,011 $ 28.591 $ 8,844
' (Coutinued)
—43—
. — CITY OF PALM DESERT —
I:\1995\Cs1FR\PAL,IvIDES\_....WKl
COMBINING BALANCE SHEET—ALL SPECIAL REVENUE FUNDS
(CONTINUED)
Juno30, 1995
Street Couatry
E1Paseo Lighting Club Landscape
Assessment Maintenance Maintenance and Lighting
District District . District District Na2
ASSETS
Cash and investments $ 25,612 $ 2,036 $ 36,766 $ 2,746
Cash with fiscal agent — — — —
Accounts receivable — — — —
Interestreceivable — — — —
Due from other
governmental agencies — 169 5,562 1,149
Loans receivable — — — —
Advances to other funds — — — —
Prepaid expenses — — — —
TOTAL ASSETS $ 25.612 S 2 205 $ 42 328 $ 3,895
LTABILITIES AN17
FUND BALANCES
LIABTLITIES:
Accounts payable $ 5,811 $ — $ 4,737 $ 2,746
FUND BALANCES:
Reserved — — — —
Unreserved—designated 19,801 2,205 37,591 1,149
TOTAL FUND BAL,ANCES 19,801 2,205 37,591 1,149
TOTAL LIABILITIES
AND FUND BALANCES $ 25,612 $ 2,205 $ 42,328 $ 3,895
See independent auditors'report.
—44—
Parking Lot Landscape Landscape Air City Wide Landscape
Maintenance and Lighting and Lighting Quality Business and Lighting
District District No.3 District No.6 Management License District No.7
S 29,410 $ 8,475 $ 19,438 S 54,008 S 39,239 S 5,797
• 7,196 54 9,341 5,064 14,420 789
$ 36,606 $ 8,529 $ 28.779 $ 62,072 $ 53,659 $ 6,586
$ 645 $ 79 $ 1,506 $ 5,194 $ - $ 204
- - - - 276 -
35,961 8,450 27,273 56,878 53,353 6,382
35.961 8,450 27,273 56,878 53,659 6,382
$ 36,606 $ 8,529 $ 28,779 $ 62,072 $ 53,659 $ 6 586
(Continued)
-45-
� CITY OF PALM DESERT "
I:\1495\CAFR\PALMDES\b�.WKl
COMBINING BALANC� SHEET—ALL SPECIAL REVENUE FUNDS
(C:ONTINUED)
June 30, 1995
Landscape Landscape Landscape Landscape
and Lighting and Lighting and Lighting and Lighting
District No.8 District No.9 District Na 10 District No. 11
ASSETS
Cash and investments $ 1,372 $ 10,673 $ 13,199 $ 3,958
Cash with Sscai agent — — — —
Accounts receivable — — — —
Interestreceivable — — — —
Due from other
governmental agencies 221 921 — —
L,oans receivable — — — —
Advances to other funds — — — —
Prepaid expenses — — — —
TOTALASSETS $ 1.593 $ 11,594 S 13,199 $ 3,958
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accountspayable S 200 $ 570 $ 126 S 226
FUND BALANCES:
Reserved — — — —
Unreserved—designated 1,393 11,024 13,073 3,732
TOTAL FUND BALANCES 1,393 11,024 13,073 3,732
TOTAL LIABILITIES
AND FUND BALANCES $ 1,593 $ 11,594 $ 13.199 $ 3,958
See independent auditors'report.
—46—
Landscape
and Lighting Redevelopment Totals
District No.26 Agency 1995 1994
S 106,019 $ 746,888 $ 12,790,887 $ 12,835,634
— 782,681 782,681 760,738
— — 32,540 55,578
— 3,481 3,481 2,274
25 — 269,445 301,375
— 1,821,601 1,821,601 2,592,249
— — 654,000 654,000
— — — 708
S 106,044 S 3,354,651 $ 16,354,635 S 17,202,556
$ 310 $ 339,274 $ 735,938 $ 415,470
2,849 2,885,018 9,676,483 10,441,493
102,885 130,359 5,942,214 6,345,593
105,734 3,015,377 15,618,697 16,78�,086
$ 106,044 $ 3,354,651 $ 16,354,635 $ 17,202,556
—47—
- CITY OF P.4LM DESERT ^
I:\1995\C/�FR\PAL.lvff)ES\kS.WKl
COMBINING STATEMEN'I'OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES-ALL SPECIAL REVENUE FUNDS
For the year ended June 30, 1995
Housing
Traflic Gas Mitigation Community
Safety Tax Measure A Fee Development
REVENUES:
Taxes $ - S - S 889,759 $ 568,412 S -
Special assessments collected - - - - -
Intergovernmental revenues - 498,954 316,712 - 2,474
Fines and forfeitures 24,802 - - - -
Use of money and property - 11,281 136,330 23,834 -
Recovery of investment loss 967 5,783 19,814 582 -
Otherrevenues - - - - -
TOTAL REVENUES 25,769 516,018 1,362,615 592,828 2,474
EXPENDITURES:
Current:
Generalgovernmental-
nondepartmental - - - - 255
Public safety - - - - -
Public works - - - - -
Loss on investment - - - - -
Capital outlay - - 388,609 - -
Debt servue:
Interest and fiscal c6arges - - - - -
Principal retirement - - - - -
TOTAL EXPENDITURES - - 388,609 - 255
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 25,769 516,018 974,006 592,828 2,219
OTHER FI�IANCING
SOURCES(USES):
Operating transfers in - - - - . �5�
Operating transfers out 2( 0,707) 516,018 - - (2,576)
TOTAL OTE�R FINANCING
SOURCES(USES) 2( 0,707) 516,018 - - (2,219)
EXCESS OF REVENUES AND
OTf�R FINANCING
SOURCES OVER(UNDER)
EXPENDITURES AND
OTHER FINANCING USES 5,062 - 974,006 592,828 -
FUND BALANCES-
BEGINNING OF YEAR 1,067 - 2,870,032 178,791 -
FUND BALANCES-END OF YEAR$ 6,129 $ - S 3,844,038 $ 771,619 $ -
See independent auditors'report.
-48-
New Park and Fire
Prop A Construction Planned Recreation Traffic Facilities People
Fire Tax Tax Drainage Facilities Signals Restoration Mover
$ 1,274,473 $ 531,126 $ 439,516 � 145,046 $ 57,630 S - S -
27,637 139,416 63,578 54,735 49,693 1,047 1,485
15,195 28,318 57,942 16,721 14,125 3,673 1,874
- 16,512 - - - - -
1,317,305 715,372 561,036 216,502 121,448 4,720 3,359
17,102 - - - - - -
1,709.871 - - - - - -
- 110,961 1,228.260 1,342 - - 54,500
1,726,973 110,961 1,228,260 1,342 - - 54,500
(409,668) 604,411 (667,224) 215,160 121,448 4,720 5( 1,141)
_ _ - - - - 18,000
- (35.699) - - - - -
- (35,699) - - - - 18,000
(409,668) 568,712 (667,224) 215,160 121,448 4,720 (33,141)
452,822 2,748,683 2,210,149 1,190,649 1,132,563 23,871 38,485
$ 43,154 S 3.317,395 S 1.542,925 $ 1,405,809 $ 1,254,011 $ 28.591 S 5,344
(Continued)
-49-
• - CITY OF PAI,IrI b�3'�� -
I:\1995\CAFR�PALMDES\ko.WKl
. COMBINING STATEMEN'F OF REV&NUESt E}LPENDTCURES�4ND
CFiANGES IN FUND BALANCES-ALI.5PECIAL REVENUE FUNDS
(CONTINUED)
For t6e year ended 7une 30, 1995
Caok
Street Country
El Pasw Lighting Qub Landscape
Assessment Maintenance Maintenance and Lighting
District District District District No.2
REVENiTES:
Taxes S - S - S - S -
Specialassessmentscdlected 111,166 2,635 108,927 15,944
Intergovernmentalrevenues - - - -
Fines and forfeitures - - - -
Use of money and property - - - -
Recovery of investment loss - - - -
Otherrevenues 2,635 - 5,615 -
TOTAL REVENUES 113,801 2,635 114,542 15,944
EXPENDITURES:
Current:
General governmental-
nondepartmental 99,347 - - -
Public safety - - - -
Public works - 2,676 90,183 67,572
Loss on investment - - - -
Capital outlay - - - -
Debt service:
Interest and Sscalcharges - - - -
Principal retiremeut - - - -
TOTAL EXPENDTTURES 99,347 2,676 90,183 67,572
EXCESS OF REVENUES OVER
(UNDER)EXPENDIT'[JRES 14,454 (41) 24,359 (51,628)
OTHER FINANCING
souxcEs�usEs):
Operating trausfers in - - - 51,897
Operating transfers out - - - -
TOTAL OTHER FINANCING
SOURCES(USES) - - - 51,897
EXCESS OF REVENUES AND
OTHER FINANCING
SOURCESOVER(UNDER)
EXPENDITURES AND
OTHERFINANCINGUSES 14,454 (41) 24,359 269
FUND BALANCES-
BEGINNINGOFYEAR 5,347 2,246 13,232 880
FUND BALANCES-END OF YEAR $ 19,801 $ 2,205 $ 37,591 $ 1,149
Seeindependentauditors'report.
-50-
Parking Lot Landscape Landscape Air City Wide Landscape
Maintenance and Lighting aad Lighting Quality Business and Lighting
District District No.3 District No.6 Management License District No.7
S - $ - $ - S - S 49,340 $ -
110,786 2,479 38,571 - - 6,309
- - - 30.126 - -
- - - 1,936 - -
' - - - 24 - -
5,400 - - - - -
116,156 2,479 38,571 32,086 49,340 6,309
- - - 21,872 38,723 -
110,805 4,445 37,545 - - S,lOS
110,805 4,445 37,545 21,872 38,723 5,108
5,381 (1,966) 1,026 10,214 10,617 1,201
- - - - (17,460) -
- - - - (17.460) -
5,381 (1,966) 1,026 10,214 (6,843) 1,201
30,580 10,416 26,247 46,664 60,502 5,181
S 35,961 $ 8,450 $ 27,273 $ 56,578 S 53,659 $ 6,382
(Continued)
-51-
' CITY OF PALM DESERT
I:\1995\CAI�'R\PAI.MDES\i.�.WKl
COMBINING STATEMENT OF REVENUES,EXPENDITUI2ES AND
(,'EiANGES IN FUND BALANCES—ALL SPECIAL REVENUE FUNDS
(CONTINUED)
For the year ended June 30, 1995
Landscape Landscape Landscape Landscape
and Lighting and Lighting and Lighting and Lighting
District No.8 District No.9 District No. 10 District No. 11
REVENUES:
Taxes S — S — S — S —
Special assessments collected 1,485 19,349 9,274 5,947
Intergovernmeatalrevenues — — — —
Fines and forfeitures — — — —
Use of money and property — — — —
Recovery of investment loss — — — —
Otherrevenues — — — —
TOTAL REVENUES 1,485 19,349 9,274 5,947
EXPENDITURES:
Current:
General governmental—
noudepartmental — — — —
Public safety — — — —
Public works 1,108 11,473 3,228 2,215
Loss on investment — — — —
Capital outlay — — — —
Debt service:
Interest and fiscal charges — — — —
Principal retirement — — — —
TOTAL EXPENDITURES 1,108 11,473 3,228 2,215
EXCESS OF REVENUES OVER
(UNDER)EXPENpITURES 377 7,876 6,046 3,732
OTI�R FINANCING
SOURCES(USES):
Operating transters in — — — —
Operating transfers out — — — —
TOTAL OTI-IER FINANCING
souxcEs�crsEs) - - - -
EXCESS OF REVENUES AND
OTHER FINANCING
SOURCES OVER(UNDER)
EXPENDITURES AND
OTHER FINANCING USES 377 7,876 6,046 3,732
FUND BALANCES—
BEGINNING OF YEAR 1,016 3,148 7,027 —
FUND BALANCES—END OF YEAR S 1,393 $ 11,024 $ 13,073 $ 3,732
See independent auditors'report.
—52—
Landscape
and Lighting Redevelopment Totals
District No.26 Agency 1995 1994
$ - S - $ 3,955,302 $ 7,281,534
- - 432,872 383,420
125,225 - 973,491 777,792
- - 24,802 9,915
- 175,281 686,253 472,999
- - 165,018 -
- 8,000 38,162 98,828
125,225 153,281 6,275,900 9,024,488
- 4,934,717 5,112,016 2,161,862
- - 1,709,871 1,569,118
19,491 - 355,849 524,248
- - - 1,449,565
- 3,829,349 5,613,021 3,735,927
- 471,005 471,005 487,548
- 260,000 260,000 245,000
19,491 9,495,071 13,521,762 10,173,268
105,734 (9,311,790) (7,245,862) (1,148,780)
- 6,599,679 6,669,933 64,985
- - (592,460) (903,365)
- 6,599,679 6,077,473 (838,380)
105,�34 (2,712,111) (1,168,389) (1,987,160)
- 5,727,488 16,787,086 18,774,246
$ 105,734 $ 3.015,377 $ 15,618.697 $ 16,787,086
-53-
— CITY OF PALM DESERT —
I:\1995\CAFR\PAL1vIDES\...�.R'Kl
COMBINING BALAN(�SHEET-ALL DEBT SERVICE FUNDS
June 30, 1995
Assessment
Assessment District Assessment
llistrict No. 8�1 District
No.8�1 Refunding No. 81-1
ASSETS
Cash and investments S 378,182 $ 1,651,625 S 1,509,828
Cash with fiscat agent - - 348,964
Interestreceivable - - 1,571
Due from other grnernmental agencies 8,986 I51,115 18,718
Prepaid ezpenses - - -
Loan receivable - - -
Due from other funds - - -
Long-tamassessmeutsreceivable 980,765 5,176,991 3,041,185
TOTALASSETS S 1,367,933 $ 6,979,731 $ 4,920,266
LIABII,ITIES AND FUND BALANCES
LIABILITIES:
Accounts payable $ 2,675 $ - $ 6,600
Deferred revenue 980,765 5,176,991 3,041,185
Deposits payable - - -
TOTAL LIABILITIES 983,440 5,176,991 3,047,785
FUND BALANCES:
Reserved 88,016 359,997 338,295
Unreserved-designated 296,477 1,442,743 1,534,186
TOTAL FUND BALANCES 384,493 1,802,740 1,872,481
TOTAL LIABILITIES AND FUND BAI.ANCES $ 1,367,933 $ 6,979,731 $ 4,920,266
See independeat auditors'report.
-54-
CFD Assessment Assessment Assessment Assessment
Indian District District District District Redevelopment
Ridge No. 9�1 No. 94-1 No. 94-� No. 94 3 Agency
$ 640,209 S 187,065 S 395,567 S 19,681 $ 6,833 $ 22,039,498
1,156,137 248,679 855,591 337,727 186,620 -
3,006 1,212 1,576 1,633 910 90,037
14,600 - - - - -
2,386 - - - 2,918 -
- - - - - 5,899,000
- - - - - 2,851,423
11,660,000 2,185,000 6,821,929 1,832,000 1,475,000 -
$ 13,476,338 S 2,621.956 S 8.074,663 S Z.191.041 $ 1,672,281 $ 30,879,958
$ 340 $ 467 $ - $ - $ 2,456 $ 2,163
11,660,000 2,185,000 6,821,929 1,832,000 1,475,000 584,364
- - - - - 10,579,574
11,660,340 2,185,467 6,821,929 1,832,000 1,477,456 11,166,101
1,081,316 229,898 628,906 183,200 130,418 5,899,000
734,682 206,591 623,828 175,841 64,407 13,814,857
1,815,998 436,489 1,252,734 359,041 194,825 19,713,857
$ 13,476,338 S 2,621,956 S 8,074,663 $ 2,191,041 $ 1,672,281 $ 30,879,958
(Continued)
-55-
' CITY OF PALM DESERT '
I:\1995�CAFlt�PAI.hII)ES�,.D.WKl
COMBINING BALAN(E SHEET—AI.L DEBT SERVICE FUNDS
(CONTINUED)
June 30, 1995
Financing . Totals
Authority 1995 1994
ASSETS
Caah aad investments S — S 26,828,488 S 13,378,694
Cash with fiscal agent 35,265,445 38,399,163 18,898,241
Interest receivable 350,498 450,443 47,643
Due from other governmental agencies — 193,419 221,270
Prepaid expenses — 5,304 480,528
Loan r«eivable — 5,899,000 5,899,000
Due from other funds — 2,851,423 11,280,084
Long-term assessmentsreceivabie — 33,172,870 23,806,600
TOTALASSETS $ 35,615,943 $ 107,800,110 $ 74,012,060
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable S 59,356 S 74,057 S 1,749
Deferred revenue — 33,757,234 23,904,600
Deposits payable — 10,579,574 7,243,564
TOTAI.LIABILITIES 59,356 44,410,865 31,149,913
FUND BALANCES:
Reserved 11,419,252 20,358,298 17,180,261
Unreserved—designated 24,137,335 43,030,947 25,681,886
TOTAL F[JND BALANCES 35,556,587 63,389,245 42,862,147
TOTAL LIABILITIES AND FUND BAI.A.N(�S S 35,615,943 $ 107,800,110 S 74,012,060
See independent auditors'report.
—56—
" CITY OF PALM DESERT —
I:\1995\CAFR\PAL.IvIDES\.-.�.�'Kl
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CfiANGES IN FUND BALANCES-ALL DEBT SERVICE FUNDS
For the year ended June 30, 1995
Assessment
Assessment District Assessment
District No.84-1 District
Na 83-1 Refunding Na 87-1
REVENiJES:
Taxes S - S - $ -
Special assessments collecud 239,627 766,570 414,653
Interest income 11,521 57,802 74,291
Otherrevenues - - -
TOTALREVENUES 251,148 824,372 488,944
EXPENDITURES:
Educational revenue augmentation fund - - -
Bond disoount - - -
Bondissuancecosts - - -
Interestand Sscalcharges 110,923 470,123 291,199
Payments to other agencies - - -
Principal retirement I15,000 340,000 175,000
Repayment of advances - - -
TOTALEXPENDITURES 225,923 810,123 466,199
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 25,225 14,249 22,745
OTHER FINANCING SOURCES(USES):
Operating transfers in - - -
Operating transfers out - - -
Proceedsfrom bonds - - -
TOTAL OTHER FINANCING SOURCES(USES) - - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTf�R
FINANCINGUSES 25,225 14,249 22,745
FLTNDBALANCES-BEGINNINGOFYEAR 359,268 1,785,491 1,849,736
FiJND BALANCES-END OF YEAR S 384,493 $ 1,802,740 $ 1,872,481
See independent suditors'report.
-57-
CFD Assessment Assessment Assessment Assessment
Indian District District District District Redeve►opment
Ridge No. 92'-1 Na 94-1 Na 94-�2 No. 943 Ageacy
S - S - $ - S - $ - S 22,822,814
1,089,440 249,005 393,417 19,723 - -
91,991 16,058 29,535 10,543 1,523 1,134,928
- - - - 12,500 461,799
1,181,431 265,063 422,952 30,266 14,023 24,419,541
- - - - - 781,872
- - 151,922 54,960 20,625 -
- - 173,998 109,247 72,229 -
872,349 172,268 274,680 36,732 2,749 837,995
- - - - - 6,502,102
210,000 43,980 45,000 - - -
- - - - - 334.000
1,082,349 216,248 645,600 200,939 95,603 8,455,969
99,082 48,815 (222,648) (170,673) (81;580) 15,963,572
- - - 75,474 - -
- - (1,618) (45,646) - (15,336,839)
- - 1,477,000 499,886 276,405 -
- - 1,475,382 529,714 276,405 (15,336,839)
99,082 48,815 1,252,734 359,041 194,825 626,733
1,716,916 387,674 - - - 19,087,124
S 1,815,998 $ 436,489 S 1,252,734 $ 359,041 S 194,825 $ 19,713,857
(Continued)
-58-
• — CITY OF PALM DESERT —
I:\1995\CAI'R\PAI,1vIDES\1u�.R'Kl
COMBINING STATEMENI'OF REVENUES.EXPENDITURES AND
CHANGES IN FUND BALANCES—AI.L DEBT SERVICE FUNDS
(CONTINUED)
For the year ended June 30, 1995
Finandng Totals
Authority 1995 1994
REVENUES:
Taxes S — $ 22,822.814 $ 16,766,222
Special assessments collectcd — 3,172,435 3,001,534
Interest income 493,455 1,921,647 2,812,222
Other revenues — 474,299 491,571
TOTALREVENUES 493,455 28,391,195 23,071,549
EJ�ENDITURES:
Educational revenue augmentation fund — 781,872 781,686
Bond disoount 351,438 578,945 —
Bond issuance costs 613,623 969,097 —
Interest and fiscal cLarges 7,422,992 10,492,010 9,973,837
Payments toot6er agencies — 6,502,102 5,637,629
Principal retirement 1,620,000 2,545,980 2,070,000
Repayment of advances — 334.000 3,305,532
TOTAL EXPENDITURES 10,008,053 22,207,006 21,768,684
EXCESS OF REVENUES OVER
(LTNDER)EXPENDII'LJRES (9,514,598) 6,184,189 1,302,865
OTHER FINANCING SOURCES(USES):
Operating transters in 8,547,692 8,623,166 12,0'71,871
Operatiugtransfersout — (15,384,103) (9,424,456)
Proceedsfrom bonds 18,850,555 21,103,846 —
TOTAL OTI-IER FINANCING SOURCES(USES) 27,398,247 14,342,909 2,647,415
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCINGUSES 17,883,649 20,527,098 3,950,280
FUNDBALANCES—BEGINNINGOFYEAR 17,672,938 42,862,147 38,911,867
FUNDBALANCES—ENDOFYEAR S 35,556,587 $ 63,389,245 $ 42.862,147
See indepeadent auditors'report.
—59—
CITY OF PALM DESERT '
I:\1995\CAFR\PALIvIDES\�sr.WKl
COMBINING BAIANCE SHEET—ALL CAPITALPROJEGTF[JNDS
June 30, 1995
Arts in Capital
Public Projects Ordinance
Places Reserve Streets No.416
ASSETS
Cash and investments $ 1,025,967 $ 2,713,505 $ 1,449,476 $ 474,659
Cash with fiscal agent — — — —
Accounts receivable — — — 95,293
Interestreceivable — — — —
Due from other governmental agencies — — — —
Advances to other funds — 8,000,000 — —
Prepaid expenses — — — —
TOTALASSETS $ 1,025,967 $ 10,713,505 $ 1,449,476 $ 569,952
LIABILTTIES AND FUND BALANCES
LIABILITIES:
Accoun[s payable $ 120 $ 139,958 S — $ —
Accrued liabilities 1,307 — — —
Due to other funds — — — —
Deposits payable — — 225,000 —
TOTAL LIABILITIES 1,427 139,958 225,000 —
FUND BALANCES:
Reserved 216,300 10,079,973 534,515 329,333
Unreserved—designated 808,240 493,574 689,961 240.619
TOTAL FUND BALANCES 1,024,540 10,573,547 1,224,476 569,952
TOTAL LIABILITIES
AND FUND BALANCES $ 1,025,967 $ 10,713,505 $ 1,449,476 S 569,952
See independent suditors'report.
—60—
Parlc and
Drainage Recreation Corporation
Facilities Facilities Signalization Buildings Museum Library Yard
$ 4,625,119 $ 2,540,096 $ 289,980 $ 1,753,536 $ 87,676 $ 556,588 $ 263,030
— 4,765,000 — — — — —
$ 4,625,119 $ 7,305,096 $ 289,980 $ 1,753,536 $ 87,676 $ 556,588 $ 263,030
s — s — s zszs — s — a — s —
— — zsz — — — —
— 5,379,470 179,205 — — — —
4,625,119 1,925,626 110,493 1,753,536 87,676 556,588 263,030
4,625,119 7,305,096 289,698 1,753,536 87,676 556,588 263,030
$ 4,625,119 $ 7,305,096 $ 289,980 $ 1,753,536 $ 87,676 S 556,588 $ 263,030
(Continued)
—61—
- — CTTYOFPAI.MDESERT — '
I:\1995\CAFA\PALbIDES\br.WKl
COMBINING BALANCE SHEET—ALL CAPITAL PROJEGT FUNDS
(CONTINUED)
June 30, 1995
CFD Assessment
YMCA Indian District Sports
Building Ridge Na 91-1 Complez
ASSETS
Cash and investments S 175,354 $ 10,345 $ 327,151 $ 597,825
Cash with 5scal agent — 3,892,992 — —
Accounts receivable — — — —
Interestreceivable — 12,849 — —
Due from other governmental agencies — — 548,19'1 —
Advances to other funds — — — —
Ptepaid expenses — — — —
TOTALASSETS S 175,354 $ 3,916,186 S 875,348 $ 597,825
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable $ — S — S 31,427 S —
Accruedliabilities — — — —
Due to other funds — — — —
Deposits payable — — — —
TOTAL LIABILITIES — — 31,427 —
FUND BALANCES:
Reserved — — 843,921 —
Unreserved—designated 175,354 3,916,186 — 597,825
TOTAL FUND BALANCES 175,354 3,916,186 843,921 597,825
TOTAL LIABILITIES
AND FUND BALANCES $ 175,354 S 3.916,186 $ 875,348 $ 597,825
See independent auditor�report.
—62—
, -- _
Assessment Assessment Assessment
District District District Rcdevelopment Totals
No. 94-1 No. 9�2 No. 94-3 Agency 1995 1994
S 90 $ - $ - S 3,702,513 S 20,592,910 $ 24,743,209
47,053 139,035 996,319 36,872,668 41,948,067 48,313,723
- - - - 95,293 115,792
3,594 853 4,854 459,248 481,398 193,225
685 - - 3,700,919 4,249,801 296,064
• - - - - 12,765,000 4,885,000
- - - 3,157 3,157 7,417
$ 51.422 $ 139,888 $ 1.001.173 $ 44.738,505 $ 80.135,626 $ 78,554,430
$ 102 S 7,232 $ 129,187 $ 237,134 $ 545,442 $ 846,535
- - - 9,183 10,490 -
38,329 102,055 156,024 2,851,423 3,147,831 11,284,719
- - -- - 225,000 225,000
38,431 109,287 285,211 3,097,740 3,928,763 12,356,254
- - - 23,242,216 40,804,933 33,000,551
12,991 30,601 715,962 18,398.549 35,401,930 33,197,625
12,991 30,601 715,962 41,640,765 76,206,863 66,198,176
S 51.422 S 139,888 $ 1,001,173 $ 44,738,505 $ 80,135,626 $ 78,554.430
-63-
° � CIT'Y OF PALM DESERT -
I:\1995\CAFR\PAI.IUIDES\►�1'.WKl
COMBINING STATEMENT OF REVENUFS,EXPENDITURES AND
CHANGES IN FUND BALANCES-ALL CAPITAL PROJECl'FUNDS
For the year ended June 30, 1995
Arts in Capital
Public Projects Ordinance
Places Reserve Streets Na 416
REVENUES:
Licenses and permits $ 230,269 $ - S - $ -
Intergovernmentalrevenues - 654,000 - -
Use of money and property 45,760 3,111 - 20,926
Sale of land - - - -
Recovery of investment loss 19,120 181,902 30,102 7,452
Other revenues 6,000 - - 75,063
TOTALREVENUES 301,149 839,013 30,102 103,441
EXPENDITURES:
Current:
General governmental-departmental 168,464 - - -
Cost of land - - - -
Loss on investment - - - -
Capitaloutlay 85,258 1,053,186 184,887 40,667
TOTAI.EXPENDITURES 253,722 1,053,186 184,887 40,667
EXCESS OF REVENUES OVER
(L)NDER)EXPENDITURES 47,427 (214,173) (154,78� 62,774
OTHER FINANCING SOURCES(USES):
Operating transfers in - - - -
Operating transfers out - (21,111) - -
Advancefrom otherfunds - - - -
Proceedsfrom bonds - - - -
TOTAL OTHER FINANCING
souxcss�usss� - �2i,iii� - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCINGUSES 47,427 (235,284) (154,78� 62,774
FUNDBAIANCES-BEGINNINGOFYEAR 977,113 10,808,831 1,379,261 507,178
FUND BAIANCES-END OF YEAlt $ 1,024,540 $ 10,573,547 $ 1,224,476 $ 569,952
See independent auditor� roport.
-64-
- , = _
Park and
Drainage Recreation Corporation
Facilities Facilities Signalization Buildings Museum Library Yard
S - S - S - S - S - $ - S -
194,092 370,450 12,335 - - - -
4,924 9,188 5,213 30,208 1,510 9,598 4,531
- 25,000 - - - - -
199,016 404,638 17,548 30,205 1,510 9,598 4,531
- 130,630 10,794 - - - -
- 130,630 10,794 - - - -
199,016 274,008 6,754 30,208 1,510 9,598 4,531
- (260,101) - - - - -
- (260,101) - - - - -
199,016 13,907 6,754 30,208 1,510 9,598 4,531
4,426,703 7,291,189 282,944 1,723,328 86,166 546,990 258,499
$ 4,625,119 $ 7,305,096 $ 289,698 $ 1,753,536 $ 87.676 $ 556,588 $ 263,030
(Contiaue�
-65-
� C11Y OF PAI.M DESERT —
I:\1995\CAFR\PAI.NIDES\lu'.WICl
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES—ALL CAPITAL PROJECT FCJNDS
(CONTINUED)
For the year ended June 30, 1995
CFD Assessment
YMCA Indian District Sports
Building Ridge Na 91-1 Complea
REVENUES:
Licenses and permits S — . S — S — S —
Intergovernmentalrevenues — — 1,640,810 —
Use of money and property — 188,679 — —
Sale d land — — — —
Recovery of investment loss 3,021 302 — —
Otherrevenues — — — —
TOTAI.REVENUES 3,021 188,981 1,640,810 —
EXPENDITURES:
Current:
General governmental—departmental — — — —
Cost of land — — — —
Loss on investment — — — —
Capital outlay — 1,065,119 955,873 —
TOTAL EXPENDI7'LIItES — 1,065,119 955,873 —
EXCESS OF REVENUES OVER
(UNDER)EXPENDITURES 3,021 (876,138) 684,937 —
OTHER FINANCING SOURCES(USES):
Operating transfers in — — — —
Operatiug transfers out — — — —
Advancefrom otherfunds — — —
Praceedsfrom bonds — — —
TOTAL OTHER FINANCING
souxcEs�usEs� - - - -
E}CCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCINGUSES 3,021 (876,138) 684,937 —
FUNDBAI.ANCES—BEGINNINGOFYEAR 172,333 4,792,324 155,984 597,825
FUND BALANCES—END OF YEAR $ 175,354 $ 3,916,186 $ 843,921 $ 597,825
See independent auditor�report.
—66—
Assessment Assesament Assessment
District District District Redevelopment Totals
Na 94-1 Na 94-2 No. 9�3 Agenc� 1995 1994
S - S - $ - S - S 230,269 S 110,506
- - - 3,697,028 5,991,838 1,074,462
83,372 31,238 8,349 784,464 1,742,776 4,324,142
- - - - - 5.969,999
- - - - 307,071 -
- - - 1,113 107,176 400,478
83,372 31,238 8,349 4,482,605 8,379,130 11,879,587
- - - 1,328,152 1,496,616 2,349,814
- - - - - 5,031,432
- - - - - 2,878.819
5,539,999 1,302,922 515,982 11,156,711 22,042,028 19,451,526
5,539,999 1,302,922 515,982 12,484,563 23,538,644 29,711,591
(5,456,62'n (1,271,684) (507,633) (8,002,25� (15,159,514) (17,832,004)
1.618 45,645 - 2,118,470 2,165,733 402,851
- (75,474) - (1,929,000) (2,285,686) (3,264,621)
- - - 5,000,000 8,000,000 5,000,000
5,468,000 1,332,114 1,223,595 9,264,445 17,288,154 -
5,469,615 1302,285 1,223,595 17,453,915 25,168,201 2,138,230
12,991 30,601 715,962 9,451,657 10,008,687 (15,693,774)
- - - 32,189,108 66,198,176 81,891,950
$ 12,991 $ 30,601 $ 715,962 $ 41,640,765 $ 76,206,863 $ 66,198,176
-67-
' S CTI'Y OF PALM DESIItT —
I:\1995\CAFR\PALIvIDES\;:.WKl
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABII,TTIES
ALL AGENCY FUNDS
June 30, 1995
Balance Balance
July i, June 30,
1994 Additions Deletions 1995
AGENCY FUND
ASSETS:
Cash and investments S 847,998 S 1,219,504 S 1,136,739 S 930,763
Cash with fiscal agent 1,972,070 490,088 51,831 2,410,327
Due from other governments 5,000 — 5,000 —
TOTALASSETS S 2.825,068 $ 1,709,592 $ 1,193,570 $ 3,341,090
LIABILITIES:
Deposits payable S 852,998 $ 1,219,504 $ 1,141,739 S 930,763
Deferred compensatioa payable 1,972,070 490,088 51,831 2,410,327
TOTAL LIABILITIES $ 2,825,068 S 1,709,592 $ 1,193,570 $ 3,341,090
TREASURERS 1991 BOND ACT
ASSETS:
Cash and investments $ 8,489 $ 903 $ — S 9,392
LIABILITIES: -
Deposits payable S 8,489 S 903 $ — S 9,392
TOTALS
ASSETS:
Cash and investments S 856,487 $ 1,220,407 $ 1,136,739 $ 940,155
Cash with fiscal agent 1,972,070 490,088 51,831 2,410,327
Due from other governments 5,000 — 5,000 —
TOTALASSETS $ 2,833,557 S 1,710,495 $ 1,193,570 S 3,350,482
LIABILITIES:
Deposits payable $ 861,487 $ 1,220,407 $ 1,141,739 S 940,155
Deferred compensation payable 1,972,070 490,088 51,831 2,410,327
TOTALLIABILITIES $ 2,833,557 $ 1,710,495 $ 1,193,570 $ 3,350,482
Seeindependentauditors'report.
—68—
12/O6%i995 City of Palm De9eTt ' . PM - 1
PORTFOLIO MASTEA SUMAhRY CITY
NOVEPIDER 30, 1995 - CASH+ACCINT
AVERAGE ""YIELD TO MATURITY""
P$RCENT OF AVERAGE DAYS TO 360 365
INVESTMENTS BOOR VALUE PORTFOLIO TERM MAT[1AITY EQUIVALENT EQOIVALENT
Cectifica[es of Depoeit - S S L..............$ 11,500,000.00 23.10 '/B 45 5.517 5.593
Managed Pool Accounte........................$ 26,066,19'/.B6 52.3'! 1 1 5.691 5.770
Paesbook/Checking Accoun[s...................$ 655,737.90 1.32 1 1 0.000 0.000
Tieasury Securitiee - Coupon.................$ 9,550,250.00 19.19 733 333 6.612 6.704
Treasury Securities - Diacount...............$ 2,004,504.09 4.03 567 16'! 6.88] 6.983
'_"' ""'_""'____""""'_"
TOTAL ZNVESTMENTS and AVERAGES.............$ 49,'/'l6,6B9.80 100.00} 192 82 5.801k 5.801&
��.aDasv.�....�.«���������.��........vamaaaa����.�.���esaaseea�a��aeaea�����_
MONTH QiDING FISrnT.
TOTAL EARNINGS NOV6FID�t 30 YEAR TO DATE
CUYYent Year $ 241,381.84 5 909,371.98
AV6RAGE DAILY BALANCE S 49,829,541.19 S 0.00
fiFFECTIV6 RATE OP RETUItN 5,89} 0.006
The invee[ment portfolio of [he City of Palm Deaezt complies with ita Investment
Paul 5. GibsDn Policy and the California Governmen� Code 9eCtions peztaining to the inVestmeRt
Treasurer of local agency funda. Pending any Euture actiona by ehe City Council or any
unforeecen catastzophy the City hae an adequa[e cash flow to meet ita
expenditure requirementa far the next aix months.
DATE
12/06/1995 City of Palm Deaert ' � PM - 2
INVESTFgNT PORTFOLIO DBTAILS - INVESTMBNTS CITY
NOVEI�ER 30, 1995 CASH+ACCINT
INV&STMENT AVERAGE PURC7VS& STATBD --- YTM --- hII�TORITY DAYS
NOMBER ISSUER BAIANCE DATE BOOK VALIIE FACE VALIIE MARRST VALOE RAT6 360 365 �ATS TO MAT
CERTIFICATES OF DEYOSZT - S 6 L
11011 GLENDALE FEDERAL 11/20/95 1,500,000.00 1,500,000.00 1�500,000.00 5.560 5.560 5.63'/ 02/20/96 81
11000 Great Western Bank 10/26/95 1.500,000.00 1,500,000.00 1,500,000.00 5.500 5.500 5.576 O1/25/9fi 55
11001 Gieat Western Bank 10/26/95 1,500,000.00 1,500,000.00 1,500,000.00 5.500 5.500 5.576 O1/25/96 55
11002 Great Weatern Bank SO/26/95 1,000,000.00 1,000,000.00 1,000,000.00 5.500 5.500 5.5"/6 O1/25/96 55
11003 Great Weatern Bank 10/26/95 1,000,000.00 1,000,000.00 1,000,000.00 5.500 5.500 5.576 OS/25/96 55
11009 Home Savings of America 30/26/95 1,500,000.00 1,500,000.00 1,500,000.00 5.520 5.520 5.597 12/26/95 25
1100] Home Savings of America 10/26/95 1,500,000.00 1,500,000.00 1,500,000.00 5.520 5.520 5.597 12/26/95 25
13008 Home Savin9s of America 10/26/95 1,000,000.00 1,000,000.00 1,000,000.00 5.520 5.520 5.59"! 12/26/95 25
11009 Home Savinge oF Ivnerica 30/26/95 1,000,000.00 1,000,000.00 1,000,000.00 5.520 5.520 5.59"/ 12/26/95 25
_'____'_______"'_ '_"_"_'__'_' """'_'_"'" _"_"'_""" """ '_"" ""'"
SVBTOTALS and AVERAGES 11,500,000.00 11,500,000.00 11,500,000.00
11,500,000.00 5.51] 5.593 45
MANAGE� POOL ACCOf1P1TS
12000 Local Agency Inveetment bLn '/,066,19'1.86 7,066,197.86 7,066,197.86 5.770 5.691 5.7'10 1
12001 Redevelopment Agency-Loan 19,000,000.00 19,000,000.00 19,00O,OOD.DO 5.770 5.691 5.770 1
___"'_"_""__" """"'""" _"__'""""'"' __'__""__"_ '_"" ""'_ _""'
SUBTOTALS and AVERACES 26,O6fi,197.86 26,066,197.86 2fi,066,197.86
� 26,06fi�197.86 5.691 5.770 1
PASSBOOK/CEffiCKING ACCOI7NL5 �
13000 Bank of America 655,737.90 655,737.90 655,737.90 0.000 0.000 0.000 1
AVERAGSS 240,437.23
TRP.ASURY 56CURITIES - COUPON
16000 United States Tieaeury 10/27/94 3,983,'/50.00 4�000�000.00 4�091,250.00 6.500 6.SB8 6.6"/9 11/30/96 365
76001 United Statea Treasury 10/27/94 1,996,8'/5.00 2,000,000.00 2,031,875.00 6."/50 6.726 6.819 02/28/97 455
160�2 United States Treasury 10/2'//94 1,782,562.50 1,801,692.00 1,805,070.17 5.875 6.361 6.449 OS/31/96 182
160�3 UniGed Staees Treasury 10/2'//94 1,787,062.50 1,BOB,154.00 1,817,759.82 6.250 6.790 6.884 OB/31/96 2'!4
"""'""'_________ _'__'____'____ ______________ _______'"""' ""'_ ""_' _'___'
SUBTOTN.S and AVERAGES 9,550,250.00 9,550,250.00 9,695,954.99
� 9,609,846.00 6.612 6.'!04 333
'PREASUAY SECURITIES - DISCOUNT
17001 United Sta[es Treaeury 10/27/94 1,000.566.42 1,097,000.00 1,OB5,001.56 6.648 7.088 7.186 02/15/96 76
17002 Uni[ed States Treasury 10/27/94 1,003,937.fi2 1,132,000.00 1,090,965.00 6.189 6.60"! 6.780 OB/15/9fi 258
_""""""___'_ '"_"""'__'__ _'__"'"""" __'_'""_""' """ "'_'" ___'__
SUBTOTALS and AVERAGES 2,472,656.10 2,004,504.04 2,1]5,966.56
2,229,000.00 6.887 6.983 167
'"'""_______________'____"_'"_____________________"""""_""'"___________________"'"""""""___
TOTAL INVESTMEN'CS and AVG. 5 99,'/'/6,689.80 50,093,B57.31
49,829,541.19 50,060,781.76 5.BOli S.BBlt 82
"""""'.�n a e.��..':"""""'."""""'."`........��.....""'."."."'."'..a.s�a�""""'.:.�
12/Ofi%1995 City of Palm Desert ' . PM - 3
. PORTFOLIO MASTER INVESTTffiNC ACfIVITY HY TYPE CITY
NO'7HN�F.R 1, 1995 - NOV6DIDER 30, 1995 � CASHyACCINT
STATED 1RANSACTION PURCHASES SALES/MATOAITIES
TYPE INVESTMENT p ISSUER RATE DATE OR DEPOSITS OR WITHDRAWp[�S BALANCE
CERTSFICATES OF DEPOSIT - S 5 L
11011 GL&NDALB FEDERAL 5.560 11/20/1995 1,500,000.00
11010 Glendale Federal 5.480 11/20/1995 1,500,000.00
SOBTOTALS and IISDING BALANCE 1,500,000.00 1,500,000.00 11,500,000.00
MANAGED POOL ACCOUNTS (Monthly Suimmary)
12000 Local Agency Investment PLnd 5.'/70
12001 Redevelopment Agency-Loan 5.770
SUBTOTALS and INDING HALANCE 0.00 0.00 26,066,197.86
PASSHOOK/C7IECKING ACCOUNTS (Monthly Sunvnary) ,
13000 Bank o£ America 0,000 655,737.90 655,737.90
TREASURY 56CURITIES - COUPON
9,550,250.00
TREAS7IRY SECVRITZES - DISCOVN'C
17003 United Statea Treasury 6.507 li/15/1995 1,003,182.98 '*••
SVBTOTALS end IIiDING BALANCE 0.00 1,003,182.98 2,004,509.04
'_""""_"_"_""'""""""""'_"""_'_""_"_""""'_"""""
1C7TN.4 2,155,737.90 2,503,182.98 49,776,689.80
•�"' - Indicates incomplete recording of maturity redemption.
12/06/1995 ' . PM - 4
� City of Palm Deaert CITY
SNV65TMENT ACfIVITY SU�TIARY �
NOVEPIDER 1995 � .
YIELD TO MAT[1AITY IM[7AGED NUhID6R OF NOPIDSR OP AVERAGE
MONTH NUhIDER OF TOTAL 360 365 POOL S6CUAITSES 56CUAITIES AVBRAGE DAYS TO
END YEAR S6CURITIES INVBSTID EQUIV 6QIIIV RATE P[Jf2CHA56D MATfJRqp/SOLb TERM MATURITY
__""'___"_"""""___________'__"____________"'___""""_______"_""________'"_'_""_""_'_"""'_"_"'_
November 95 18 49,776,689.80 5.906 5.881 5.770 1 2 1B2 82
AVERAGES 18 $ 49,776,689.80 5.806$ S.BBlt 5:770k 1 2 182 B2
_"`�"_"���������������".".""��"����a���'�"����'...������'���'��������`���'���'...�.�������
12/06/1995 PM - 5 .
City of Palm Deeeit CITY
DISTRIHUTION OF INVESIMENTS BY TYPE -
NOVEbIDER 1995 ' .
MONTH "'_""""'____ 17PE5 OF INVESIMENTS "_"_"_____"""
END YEAR HCD SCD LA1 PA1 PAC FAD TRC TRD
_""""______'"'"'_""'__'_""_""_'_"""""""'_'_"""_""'
November 95 23.1 52.4 1.3 19.2 4.0
"""_"""'_"__"_"__'__""__'_""""""""_""
AVBRAGES 23.1} 52.4} 1.3} 19.2t 4.0k
.������������.....��`..�'.......�'�.�.��.����'���'....� �
Bm - Certifica[ee of Depoait - Bank SCD - Certificatea of Depoait - S 6 L
LA1 - Managed Pool Accounts � PA1 - Paeebook/Checking Accounta
FAC - Federal Agency Isauea - Coupon FAD - Fedezal Agency Isaues - Discount
TRC - Treaeury Securitiea - Coupon TRD - Treasury Securitiea - biacount
rwv96
PnYn Deeit Rdevdqse�A�mry 7 y7/95
Im�Woat Pattdb DeaiY-Ima�aes
11/lOI95
Pumhue Book Faa MukH SlatW Ma�urR Fund To[al CUSIP
Dascription Dats Valus Valus Valw pab Drt� InvaatM Invest-US
��.US Tromune�
US Troasury-S[rip 100 Mil�
AccIl301-8019000 5,424.083.61 5390000 5,479,258.40 8.88% 3/31/97 EscrowFDS
148.225.25 205000 191,182.50 5.90% 2/15/97 Pro#1
393,827.48 400000 399,000.00 4.30% 12/31/95
392,086.00 400000 398,370.00 4.00% 1/31/9B
1,359,305.94 1497000 1,473,801.89 5.73% 2/15/9B
393,752.48 400000 398,752.00 4.80% 2/15198
394.757.46 400000 399,378.00 5.10% 3/37/98
298,818.71 300000 ]99,907.00 5.50% 4/30/9B
398,782.46 400000 400,500.00 5.90% 5131/eB
9,988.22 11000 10,848.07 5.50% 2115/9B
FHLB Diacount Note il/9/95 4,934,4)9.75 5000000 5.70% 2/Y/96 3133845P5
FHLMDiswuniNote il/9/95 4,932,188.87 5000000 5.70% 2/5/98 313398553
FNMA Discount Note 11/9/95 4.898,4B8.89 5000000 5.85% 3125/98 313588UT0
301-80190B0 248,251.55 150000 748,375.00 4.30% 72131/95
245,079.68 250000 248,985.00 4.00% i/31/98
248,173.43 260000 248,220.00 4.80% 2/75/9B
248,734.38 250000 249,810.00 4.80% 2129198
248,879.68 250000 '24,992.50 5.70% 3/31/98 ,
247,582.80 250000 246,202.50 5.50% 4l30/9B
243,798.88 250000 260,312.50 4.30% 5/15/9B
248,5]3.43 250000 250,325.00 5.90% 5/31I98
248,5BT.50 250000 250,625.00 8.00% 6/30/98
248,798.88 250000 260,937.50 8.10% 7/31/88
249.023.43 250000 I51,172.50 8.20% 8/37/9e .
249,BBI.80 250000 ]51,952.50 8.50% 9/30180
241,057.80 250000 $48,875.00 4.40% 71/15/98
249,851.55 250000 252.787.50 8.60% 11/30/88
248,128.13 250000 251,485.00 8.10% 12/31l98
246,388.75 250000 261,797.00 B.TO% 1/31/97
248,837.50 250000 253,047.50 8.40% 5/15/97
248,095.30 260000 •252,970.00 8.30% e/30/97
Fed Natl Mf0�+san 4.378.437.02 6390000 4,378.437.02 8.10% 11/e/95
304,780.23 359000 329,325.OB 8.70% 5/15197
NewProjectSl Bonda•••
AcetN301�8078000 8/1/95 538,718.75 540000 5.84% 11/30/95
500,312.50 500000 5.81% B/30/9B
5,597,109.38 5500000 8.05% 11/30/98
999,843.75 1000000 8.17% 71/30/97
708.360.82 892000 8.35% 5I31/99
14,233,482.68 14342000 8.20% 1/31/98
Su6lotsl.:US Tt�m�eise '. �; 6E.BF7;$23.16 69�29:SYQQ.Op i$.`.. 886.94 �1 55,877.822''�74'�..
U8 haewlw
Pra eet Ana#2 Pro'Y2
AcctN301-8023000's
11,H04.28 13,000.00 12,796.81 6.60% 2/15/98
908.02 1,000.00 984.37 5.50% 2/15/98
12,772.26 14,000.00 13,781.18 5.50% 2f15188
381,984.75 39�,000.00 390,925.90 5.40% 2l15/98
40,359.15 45,000.00 43,886.70 5.80% 5/75/98
885.47 1,000.00 958.59 5.50% 6It5/98
87,982.90 70.000.00 87,101.30 5.50% 8/15/96
88,187.19 77,000.00 73,811.43 5.50% 8/15/98
190,378.05 215.000.00 208,208.50 5.40% e/15/98
243.582.50 250.000.00 248.202.50 4.30% 5/i6/88
248,210.93 P50.000.00 260,825.00 8.00% 8/30/9B
248,387.78 250.000.00 260,937.50 B.10% 7/31/98
248,554.88 250,000.00 251,172.50 8.20% 8/37/98
299,250.00 300,000.00 302.343.00 8.50% 9/30198
Pape 1
nov95
PaYn Due�t Redevekpewt Aeem.y . 12/7195
Inre�ert Patfollo DdnW.Io���Ma
11/30/95
Purchae Book Faa Mukat Strtd MaWrit Fund Total CUS�
Deacription Date Valu� Valw Valus Fri� Dab Inv�a�ed Invaat-US
New Praleet Arsa#2119951"'
AcR A301-8078100
1,311,781.25 1300000 8.10% 8/30/97
110,207.50 704000 8.40% 11/30/99
232,407.88 231000 6.77% 11/30/97
2,128,H98.88 2115000 8.29% 12/1/97 �
0.00
SuEWNFdUS Troasm'i�t '�i 5,878,A�12.66 5,.978';033.dQ 2.l'�13,537.88 �. � � 5.8i8;412.85
B�nk of AmericaSavinBs 0.00 - 0.00
Stata LAIF 23,655,398.14 23,855,398.14 23,855,396.14 5.78% 23,855,398.14
Des�K Ra�e eand bew r�.
es
US Troauries Nob W/int Hausing
ACCTC117507400's
298,896.25 286000 299,OB9.82 8.13% 7131/9B
Fidelit Tnasur Fund 886,OB8.17 885,088.17 886,088.77 5,80%
SubteW�EkNrcFwa �� R eP3�;G88.R .;.e �f8 .88 861i786:42��.
TIWSIlM fitl?4 YNtltlipMI.US1'f#aiUkllf���..RATED AAA
7.8 Mil Law/Mod Housin 4.838.26 4,638.Z6
100 MilBondlsaua 6,592,501.91 8,592,601.91 8,592,501.91 5.80%
1995P�o p1 Bonds•" 807J76.37 807,775.37 5.60%
1995 Pro N2 Bonds"' 182,896.73 1 B2,885.73 5.80%
17 MilBondinua 2.890,83E.13 2,890,838.13 2,913,297.19 5.80%
Subtak�l.�fiwsa Accf 12.4 8,0$i.$9 7$i7B�.t147.38 fl�.5� ,789.t9�'. 12,475:047:38��.
0.00
0.00
TOTAL POOLED CASH 98J91,442J4 99,440,544.70 58,878,480.85 98,781,442J4
•Monthty mports typicall ara ncsiv�d u m om full rtronth after curront month enE infortnation contained in this roport ia
• tM most rocent rocsived.
'•Th�moat rownU mcieved r�port for this iasw ia drt�d Jul 31. 1995. Ws hm d'ucuaae0 ths problem with Bmk of America.
They will b�sendin cun�nt atrtemenb n�oon a po�eible.
I cenify Ihat theae inveacrosnb wm ly with dl State laws p�rtNninp ta the inveafinent ot Locd A ency funds.
Paul S.Gi6san,Tremurer
Pape 2
- � r''� -
12/�fi/1995 PD Redev ment Agency . PM - 2
INVBSTMENI' PORTFOLIO DETAILS - INVESTM6NTS RDA
DECEMBER 12� 1995 � QA$H
INVESTMENT PURCHASE STATED --- Y1M --- MATRRITY DAYS
NOMHER ISSUER DATE BOOR VALVE FACE VALVE MARI(fiT VALVE RATE 360 365 DATE TO MAT
___'"'_'__'_'_______'______""__"""""__"___'_________'__"'"'___'___'_____"""'_""'_"""___'___________'__"""""______
PE�ERAL AGENCY ISSUES - COUPON
15000 FEDERPS. HOME LOAN HANA 12/12/95 1,000,312.50 1,000,000.00 1,000,312.50 5.420 5.39'/ 5.472 O1/25/97 409
15004 FEDERAL HOME LOAN BANK 12/12/95 3,027,187.50 1,000,000.00 1,027,187.50 6.285 5.651 5.730 07/28/00 1,689
. 15001 FEDSRPS. NATIONAL MORTGAGE A 12/12/95 1,004,630.00 1,000,000.00 1,004,630.00 5.650 5.400 5.4]5 10/20/97 6']'!
15002 FBDERAL NATIONAL MORTGAGE A 12/12/95 1,093,330.00 1,000,000.00 1,093,330.00 8.450 5.'/92 5.8'13 0'//12/99 1,30'!
15003 FfiDERAL NATIONAL MORTGAGE A 12/12/95 1,130,000.00 1,000,000.00 1,130,000.00 9.050 5.'/21 S.BO1 04/SO/00 1,580
' "'" ' _"'__
SVBTOTALS and AVERAGES 5,255,460.00 5,255,460.00
� -- � 5,000,000.00 5.599 5.677 1,149
TREASURY SECURITZES - COUPON
17000 Unites Statea Tieasury 12/12/95 391,978.13 385,000.00 391,978.13 6.780 5.415 5.490 02/28/97 443
17001 Uni[ee States Treasury 12/12/95 294,182.81 291,000.00 294,182.81 6.000 5.336 5.410 OB/31/97 627
1'/002 Unitea States Treasury 12/12/95 490,655.00 484,000.00 490,655.00 5.875 5.296 5.370 OB/15/98 9'/6 �
17003 Unitea States Treasury 12/12/95 483,798.44 945,000.00 483,798.44 8.000 5.455 5.531 OB/15/99 1,391
17004 Vnitea Statea Tzeasury 12/12/95 1,056,250.00 1,000,000.00 1,056,250.00 'l.875 5.212 5.284 04/15/98 854
17005 Unites Statee Tzeasury 12/1z/95 1,046,250.00 1,000,000.00 1,046,250.00 7.125 5.272 5.345 10/15/98 1,037
17006 Uni[ea Statee Treasury 12/12/95 1,034,893.75 1,000,000.00 1,034,843.75 6.375 5.412 5.487 01/15/00 1,494
"_'_""""' """_'__"" """"""" """ "_"' _""'
SUBTOTALS and AVERAGES 4,'/9'/,958.13 4,'/9'i,956.13
4,605,000.00 5.326 5.400 1,046
TREASVRY 56C[RiITI6S - DISCOONT
18000 Unites States Treasury 12/12/95 249,S6B.69 253,000.00 249,605.59 5.250 5.322 5.396 03/14/9fi 92
18001 Unitea S[ates Treasuxy 13/12/95 399,543.73 416,000.00 399,602.09 5.050 5.235 5.308 09/19/96 281
__'__"'______ _____""""" "_"'"'_'""" "'__" "_"' ______
SVBTOTALS and AVERAGES 649,112.42 649,207.68
669,000.00 - 5.269 5.342 208
_"""'"_"'_'_""""""""""""""""""""""""_""_"__"____'"
TOTAL INVESTMENTS and AVG. $ 10,702,530.55 10,702,625.81
10,274,000.00 5.456k 5.532} 1,046
"""""""...""""""."'ese�"""'��"""""'����e�e�e��a e�»�«e�..«..
� C�l�-c(
• � / .,. ^ _ . 1/ .
' �
i'�j�� Stone & Youngberg �/� ,
�� Established �9)� `�
MEMORANDUM
To; puul S.Gi6son—Ciry of Pulm Desert • '
Carlos Ortega— Ciry of Palm DeseR J � � / �
David Yrigoyen—Ciry of Palm Desert �
David J.Grwin-- Best, Best& Krieger
Jack M.Conlon -- Sunrise Company
Harney A.Allison--Nossaman, Guthner, Knox&Elliett � � � /
Pat Perinich-- Muni Financial Services, Inc. ,
Robert Schneider—Bank of America
Jeff Rovner--Morrison Foerster
Ka[hryn Lyddui--Cox,Castle&Nicholson /J� n � / � S
Geoff Geddes--Cox,Castle&Nicholson ��/ (!
Carla Campodonico, Stone& Youngberg .
From: Steve Heanry �r� /'� U S� � �� �,,.�
Dawn V incent / / � �
Stone &Youngberg '
Date: November 22, 1995 � �+'� �j � CJ �
Ka: 512�85,000 / j
City ofPAlm Dcsert
Community Facilities District No.91-1 �j Z � r�
(InJian Ridge Public Improvements) �/ J
Series 1995 Spccial Tuz Bauds
On Novertiber 21, 1995 Stona & Youngberg priced the above issue for Ihc City of Palm Descrt. The
Purchase Conaact was executed today. Tliis memorandum summarizes the infotmation required for a
smcwth closing on December 12, 1995. The location of the pre-closing and closing will be
communicated by Barney Allison when he distributes finel documents. P!ease refer eny questions on the
encloseJ to me or Steve Heaney at(818)906-0315.
I, x�.:•...�trd ('��crs ofiavvance
The following summerEzes the estimated costs of issuance for the Bonds.
�� RoleR'�mace �9SI
Nossamun,Guthner et al Bond Counsel S 77,500.00
Ciry of Palm Desert City Administrati�n SO,OOO.OQ
Bes� Best&Krieger District Counscl 10,000.00
Muni Financial Services Special Tax Consultant 5,000.00
Metzeer& Associaces APPraiser 12.500.00
Bank of America Fiscal Agent&Legal Counsel 7,500.00
Bowne Official Statement Printing 15,000.00
Miscellaneous 2331.46
Aliscellaneous 5179,831.46
�Svtiu vLNTURA '�!1UlFVeR� • SHERMnN OAKS, :.AL1FOdV;A 914=7 - TEIEPY.VNe A�8 �B9 2667
IY9'
Ciry of Palm Desert
.November 11, 1995
Pag¢1
II. �^��rces •�nd Uce� nf Bond Proceeds
The table below summarizes The sourees and uses of Bond proceeds.
So , :
Principal Amount of Bonds $12,385,000.00
Plus: Accrued Interest(a) 25,517.29
Less: Underwriter's Discount(b) _(210.775.001
Total Sources 512,199,742.29
IZS&S�
BondFund(c) S 1,378,436.35
Reserve Fund(d) 1,092,786..'.5
Impro�ement Fund(e) 9 '128'519.69
Total Uses S�Z+�`�9��42�9
?�totes for Sources und Uses of Funds:
(a) Raprecrnts accrued imerest on the Bonds from the Deaember I, i995 darod due through the December i2, t995 delivery
dau.
(b) The undecwriting discount equals 1.701%of the par omount of ihe Honds and includa S25,OOU for Underwri�efs Counsel
(sce Aanchmcnc A-7j.
(c) EquuLr accmed interese and capitdimf intaest duough Ouoba 1,1997.
(d) Equal to maximum annual deb[servicc
(<) lncludes 59,548,688�1 far pmject costs(m Altachment A•7)wul 5179,8]I.S6 for tusts of issuance(see Section f).
III. Fin1l PricinE lnformation
• Series 1995 Speciul Taz Bonda Attachment A
Bond Summary Statistics :'' .
Bond Pricinb Report
Uuderwrite�'s Discount
Debt Servicc Sohedu;es
Capitalized Incercst Account
Net Debt Service Schedule
ProjectFund Draw Schedule
Tax Yield Calculation
k'orm 8078 Repun
Muliiple Series Bond Debt Service (1991 & 1995 Bonds)
. Net[nterest Cost: 7.0359ti5%
• True interest Cost: 7.068339%
. Tax Yield: 6.8843892°,�0
• Average Life: 16.538 ycars
. Financing Team llistributiou Lu[ Attactunnnt$
_ .
199i . . . . . .. __ . . . . . .. . .
_ A_2 -
wwo vntciwc
� CFD M0. 91•1 (lndtan Ridp� iWliC laproven�nts)
� t995 Spaetal r�x eonds
FiNAL DEiT SERVlCE •• YOVElIBEA 21� 1995
� M�twi ty - .
lord toay«xnc O�t� ! Berds llmowt R�ta Yield aric�
SERIAI BONOS (1990-2011): �
70/Oi/199! S7 255,000 5.000X 5.000% 100.000 �
10/O1/1999 54 270,000 5.250x 5.250X t00.000
10/O1/2000 56 280,000 S.SOOX 5.500% 100.000 '
10/01/2001 60 300,000 5.7D0% 5.700X 100.000
70/O1R002 63 315,000 5.900X 5.900X f00.000
70/07/2003 6T SSS,000 6.00OX 6.00OL 10�.000
10/O1/200i 71 3SS,000 6.15Wt 6.150X 100.000 .
10/O1R005 75 375,000 6300X 6.300Y 100.000
70/O1/2006 SO 400,000 6.4501C(,,`� 6.450% 100.000
10/01/2007 sS L25,000 6.600X ij.� 6.600i 700.000
10/01/2008 91 455,000 6.700% u�' 6.T00% 100.000
10/01/Z009 97 ' iE5,000 6.B00X(,x 6.lOOX 100.000 ,
10/01/2010 103 515,000 6.900%�:�> 6.900X 700.000
10/O1/2071 it0 550.000 6.950% ; . �.6.950Y 100.000
1,063 S,S15,000 `� �
2015 TERM YONDS:
� f0/O1/2012 , 718 590,000 7.00OX L' - 7.0]O% 700.000
10/O1/2013 126 630,000 7.000X�, 7.000X 100.000
f0/Oi/2014 1'JS 675,OG0 7,000% , 7.000% 100.000
t0/01/2015 � 14G 720,000 7.00OK � 7.00OX 100.000
523 2�615�000
� 2D20 TEAM 60N05:•
70/01R016 155 775,000 7.125X n'� 1.125X 100.000 �
1,,�t�`�� 10/O1/2017 166 E30,000 7.125X 7.125Y 100.000
I`�" 10/O1/2018 177 8lS,OW � 7.125X 7.125x 100.000
�''p 10/01/Z019 ':� 790 950,000 7.125X 7.?25X 100.000
� J 5 � �oio�izoxo +' �os �.ois.000 �.izsx �.Szsx ioo.000
� � � � 891 4,455,400
�I Q
�;� z.�n iz,3ns.000 . ���,;,�,�>
1,.,
'el U�cd D�te 12/Otl1995
Oelivery D�u 12/12/1993
fint Co�pon 4/01/1996
►ar A�nunt 12,585�000.00
Oiacant •
Produetion 12,385,OOC.00 100.000000x.
Utdtrwrit�r�s Olawuit (210,775.00) __.(1.701857)�'� � �
Gurch��e Pric� 12,17G,225.00 98.298143X
AccruW Interest 25,517.29
Nec PraceWe . 12,199,7C2.29
21-Mov-95 3:03 p� Preparetl Cy Stona i �oungherp (finsrce 2.SN.d GALNDSRT:CFD91�1-19951 Po9e 1
' � � hcAL ESTATE ANALYSI;, SERVICES CO.
- page 1 of 5 - oa-Dec-95
05:56 PM
December 4, 1995 - _ �--
- :_ �;��, ��CcD 03-�1-�5
—_ —= i' � �� LfcTt`t-�Z- yA,.� . `..
Mr. Carlos L. Ortega �� COpV to: David Yrigoyen
Executive Director - �J �v�'J � �
PALM DESERT REDEVELOPMENT AGENCY �� ��' I��
I
CIN OF PAIM DESERT (__ �
73-510 Fred Waring Drive �I
Palm Desert, California 92260
REFERENCE: IntrawesYs 1994 Annual Reaort And Other Relevant Data
SUBJECT: Summary Report Of The Referenced Data
Dear Mr. Ortega,
At your request, I have reviewed IntrawesYs 1994 Annual Report and also, a detailed, comprehensive, report
on Intrawest that was recently compiled for you from several computer data bases.
This summary report is a distillation of the information in those reports and also includes my personal knowledge
of Intrawest.
I. BACKGROUND:
Intrawest Corporation, a Canadian company, is headquartered in Vancouver, British Columbia, and its shares are
listed on the Toronto, Montreal and Vancouver stock exchanges. Early in 1994, Intrawest decided to become a
pure resort company and embarked on an 18-month program to divest itself of its non-resort assets and reinvest
the funds from the sale of these assets, to accelerate the growth of their resort businesses.
Intrawest now consists of three independent divisions: Resort Operations, Resort Development, and Resort
Club, all independently managed but all working toward the same goal of profitably growing Intrawest's core
resort business.
By December of 1994, Intrawest had succeeded in selling 23 non-resort properties representing 158 M,�"OtB �
or 49% of their total non-resort assets. In the past 12 months, they have already reinvested $65 M in Resort
Operations, and a further$71 M in Fiesort Development and the Resort Club.
II. SUMMARY OF INTRAWEST'S FINANCIAL POSITION:
At year end 1994 (September 30), Intrawest had assumed its righttul place as a major growth company with total
asset value of $629 M and shareholders' equity of $266 M, a 23% increase from the previous year. Total revenue
was $332 M, a twofold increase, and cash flow was $29.4 M, a 16% increase. Intrawest has tunded the growth of
its resort business mostly by the sale of non-resort assets and the issuance of common stock, and has thus
reduced its debt to equity ratio to 1.13 to 1, an enviable retio for an agressive growth company. As further
evidence of IntrawesYs commitment to profitable growth, financial results for the 6 months ending March 30, 1995
show substantial increases over the same period last year.
NOTE �: All dollar figures in this report are in Canadian dollars.
'FA IROC7'/15
Post Office Box 2809, Palm Desert, California 92261; Tel: (619) 340-1429; Fax: (619) 340-2041.
— page 2 of 5 — o4—Dec-95
05:24 PM
December 4, 1995
TO: Carlos L. Orteqa Copv to: David Yrigoyen
FROM: Leonard R. Wolk
REFERENCE: IntrawesYs 1994 Annual Report And Other Financial Data
SUBJECT: Summary Report Of The Referenced Data
III. RESORT OPERATIONS:
Intrawest owns and operates resorts at Blackcomb and Panorama mountains in British Columbia, at Tremblant,
�uebec and at Stratton Mountain, Vermont. In a joint venture with Ralston Resorts, Intrawest is also creating a new
village and resort accomodations facility at Keystone Resort in Colorado. In November of 1995, Intrawest acquired
all the assets of Snowshoe Mountain and the adjacent Silver Creek Mountain Resort in West Virginia. Snowshoe is
the largest ski resort in the Mid—Atlantic and Southeastern regions of the United States, and in the coming season
is expected to become the second largest contributor to resort operations cash flow, after Blackcomb. Over the
next two years, Intrawest plans to acquire and/or build additional resort facilities in the United States. In 1994,
Intrawest entered the vacation resort interval ownership business, with the opening of the Intrawest Resort Club at
Blackcomb.A resort club was opened this year at Tremblant, and another club is planned for Keystone. During the
next few years, Intrawest intends to establish a nehvork of similar, five—star resort clubs in North and South
America and across the Pacific Rim.
Since Intrawest acquired Blackcom6 Mountain in 1986, more than $500 M has been invested both on and at the
base of the mountain. Skier visits have grown from 278,000 to 972,000 in 1995, and summer visits are rapidly ,
approaching those in winter. In recognition of the improved resort experience, both Ski and Snow Country
magazines have ranked Whistler/Blackcomb �umber one in North America for 1995. Intrawest has led a similar
renaissance at Tremblant, acquired in 1991. The resort was recognized this year by Ski magazine's reader survey
as number one in Eastern North America. In September of this year, Intrawest announced that it has formed a
partnership with Canadian Pacific Hotels & Resorts to construct the "Chateau Mont TremblanY' a word—class, •
luxury, conference hotel scheduled to open in time for the 1996/1997 ski season at Tremblant. The cost of
consVuction is estimated at $57 M, part of IntrawesYs $467 M five—year investment plan. This will make Tremblant
the premier four—season destination resort in Eastern North America, and one of the continenYs major tourist
centers. Canadian Pacific Hotels & Resorts is the largest owner—operated hotel company in Canada, with 26 luxury
hotels and resorts across the country.
Intrawest has formed a wholly—owned subsidiary, Intrawest Resort Ownership Corporation (IROC), to own and
manage its resort club business. IROC's first three properties, at Blackcomb, Tremblant and Keystone, are
currently in various stages of completion, construction and pre—development.
_ �
"FA IROC7'/16 !
— page 3 of 5 — os—Dec—s5
04:30 PM
December 4, 1995
TO: Carlos L. Orteqa Copv to: David Yrigoyen
FROM: Leonard R. Wolk
REFERENCE: IntrawesYs 1994 Annual Report,And Other Financial Data
SUBJECT: Summary Report Of The Referenced Data
IV. DEVELOPMENT OF AN INTRAWEST RESORT CLUB PROJECT-
The development of an Intrawest Resort Club project is similar to the development of other forms of residential real
estate. The major differences arise when units are completed and available to be sold. After completion of
construction, each resort club unit will be transferred free and clear of all financial charges to a trustee for the
Intrawest Resort Club, a non—profit, non—stock corporation. The Intrawest Resort Club will operate as a
multi—location club whose owners and members are the resort club purchasers.
V. INTRAWEST'S RESORT INTERVAL OWNERSHIP CONCEPT:
IROC's sales program has been designed around a "points" system, rather than the sale of fixed weeks, as in the
traditional timeshare business. This approach provides purchasers with maximum flexibility in terms of their
vacation choices. Each accomodation type in a project has been assigned a fixed point value for each day of the
week and in each season. When IROC transfers a unit to the Intrawest Resort Club, it �eceives in exchange the
pointvalue assigned to that unit, which it in turn sells to the public. The dollar value per point is controlled by IROC,
depending on market conditions. IROC will sell equity membership interests in the Intrawest Resort Club to the
general public. Each membership interest will consist of a fixed number of "points" (instead of "weeks").
A purchaser will become an equity member of the Intrawest Resort Club and will receive an annual allotment of
points in perpetuity. This point package entitles the purchaser to use and occupy the accomodations at any current
or future Intrewest Resort Club location, or at more than 175 international resorts which are part of an Intrawest
resort partnership program. Each year, the points can be utilized in different denominations to vary the time,
duration and location of a member's vacation.
VI. OTHER MAJOR PLAYERS IN THE RESORT INTERVAL OWNERSHIP BUSINESS:
In response to consumer demand for a higher quality vacation experience, more refined service and a more
streightforward marketing and sales approach, the focus of the resort ownership industry has been moving quickly
from numerous small developers and operators to the stability and sophistication of major corporations such as
Disney, Marriott and Hilton. Intrawest has developed and is implementing strategic plans, which if successfully
completed, will allow it to become the fourth world—class player in the industry.
"FA IROC1" 17
- page 4 of 5 - oa-Dec-95
05:24 PM
December 4, 1995
TO: Carlos L. Orteqa Copy to: David Yrigoyen
FROM: Leonard R. Wolk
REFERENCE: IntrawesYs 1994 Annual Renort And Other Financial Data
SUBJECT: Summary Report Of The Referenced Data
VII. FIVE—YEAR HISTORICAL FINANCIAL OVERVIEW:`^ot°Z
All results reflect vear—end of September 30 �sso issi 7992 1993 t994
A. Consolidated oaerations:
1. Revenue gs2,eao $ioe,si2 $i2e,azs $i5s,oao $332,106
2. Less expenses ($n ea2) ($i o�i za) ($i oe 2�a) ($�ao esz) ($si�osi)
3. Net income Es,00a (g2i i) $2o,i 52 $i 5,��s $i S,oss
B. Cash flows & er share data:
1. Cash flows, total $ta,se� g�a,a2o $�s,ns $zs.aoo $2s,az�
2. OutsYnd'nq shares(in 000's)'^ote 3 �p 315 15 740 19 101 20 119 21 405
3. Cash flow per share'"�te a i�,37 $0.8o So.so $� �5 Si 2e
4. Net income (loss) per share So.a� ($o.oi) $i.os go.�s $o.�o
5. Dividends per share n/a go.is So.16 $o ie $o �e
6. Book value per share $s.3a $s.0o $t o.00 $10.90 $11.63
C. Consolidated balance sheets:
1.Totalassets $395,e05 $ai2,soi $soi,s�e $sia,ss2 $629,002
2. Liabilities &shareholders' equiN
a. Bank 8�other indebtedness $ie7,zsz $2ta,sos $25a,7�a $346,316 $300,629
b. Otherliabilities $40,z16 $38,705 $4s,791 $5i,996 $6z,93a
c. Shareholders� OqUity $128299 $154993 $200113 $216480 $265539
d. TO�� $335,807 $412,601 $501,618 $614,692 $629,002
e. Debtto equity ratio 1.30 1.41 1.27 1.60 1.13
♦ Note that revenues, cash flows, shareholders' equity and book values have increased sign'rficantly
during the period, and the debt to equity ratio is naw at a very acceptable level.
♦ Results for the six months ending March 30, 1995 show substantial increases over the same period
in 1994.
NOTE 2: All dollar amounts except per share amounts are in thousands of Canadian dollars.
NOTE 3: Weighted average of common shares
NOTE 4: After providing for non-controlling interest.
. . . . . . . . . .. . "FA IROC7"/18
— page 5 of 5 — oa--Dec-95 �
December 4, 1995 o5:2a PM
TO: Carlos L. Qrteqa Copv to: David Yrigoyen
FROM: Leonard R. Wolk
REFERENCE: IntrawesYs 1994 Annual Reoort And Other Financial Data
SUBJECT: Summary Report Of The Referenced Data
i
VIIL GRAPHICAL REPRESENTATION OF FIVE—YEAR HISTORICA�FINANCIAI OVERVIEW: II
REVENUE �I
S400 5400
§350 5350 ��
$300 5300
� $250 5250
m
o $200 5200 0 �
$15 040 •-
� $150 E10 912 5750 �
v 5100 5100
$50 550
EO SO
1990 1991 1992 1993 199M1
NET INCOME II
aao aao I
535 S35
$30 530
L25 20 152 S25
0 520 15 178 7 5 05 E20 �
_ $15 575 °
� $10 5 OB Z10 �
SS a5
ao ao
(SS) (S5)
� 1990 1991 1992 1993 1994
CASH FLOW
gqp Sao
g35 E35
$25 $25 400 S25 �
N H
o a2o szo 0
� $15 S15 �
$10 S10
gs E5
go ao
1990 1991 1992 1993 1994
Yours truly,
cr�?" "" `� ���
Leonard R.Wolk, President
Real Estate Anal sis Services Com an flEASCO) ^Fq_iqoci^�is
Post O�ce Box 2809, Palm Desert, California 92261; Tel: (619) 340-1429; Fax: (619) 340-2041.
' nov95 . ���\�f/
`
PoYo Dnat Rdays7opmot Ase�y 12/7/95
InveAmeot Paf[atlo DRai-Imdments
llrlON6
Purchasa Book Faw Mrttl Sbtad Matunt Fund Total CUSN
Deacriptian �aro Value Value Valu Rats Dau Investetl Invest-US
tlSTrosUAa
US Trsasury�Strip 100 Mil
AcctJt301-6019000 5,424,083.81 5390000 5,479,258.40 B.es% 3/37/97 Escrow FDS
148,2Y5.25 205000 197,782.50 5.90% 2/15/97 ProA`1
393.627.48 400000 398,000.00 4.30% 12l31f95
392,OB5.00 400000 386,378.00 4.00% 1/31/98
1,359,305.94 1497000 1,473,801.89 5.73% 2/15/9B
393,757.48 400000 396,752.00 4,80% 2/15/98
394,75�.48 400000 399,378.00 5.70% 3/37/98
298,818.11 300000 299,807.00 5.50% 4/30/BB
388,782.68 400000 400.500.00 5.90% 5/31I98
9,988.22 11000 10,828.07 5.50% 2/15/98
FHLB D'ucount Nots 71/9/95 4,834,479.15 5000000 5.70% 2/2/96 3133845P5
fHLMDiscountNote 11/9/95 4,932.188.87 5000000 5.70% 2/5/98 373398553
FNMA Diacaunt Nate 11/9/95 �4,898,488.89 5000000 5.85% 3/25/98 37358BUT0
301-80190B0 248.451.55 250000 249,375.00 4.30% 12/31/95
245,079.88 250000 248,985.00 4.00% 1/31/96
� 248,173.43 250000 249,720.00 4.60% 2/15/98
248,134.38 250000 249,810.00 4.80% 2129196
248,879.88 250000 '24,992.50 5.70% 3/31/98
247,582.80 250000 248,202.50 5.50% 4/30/98
243,798.88 250000 250,312.50 4.30% 5175I98
248,523.43 250000 250,325.00 5.90% 5/31/98
248,5B2.50 260000 250,625.00 8.00% 8/30/98
248,798.88 250000 250.931.50 8.10% 7/31/9B
� 248,033.43 250000 251,172.50 8.20% 8/31/98
249.882.80 250000 251,952.50 8.50% 9/30/9B
247,057.80 250000 246.875.00 4.40% 11/15/98
249,851.55 260000 252,787.50 8.50% 17/30/98
246,128.73 250000 I51,485.00 8.10% 12/31/98
248,388.75 250000 257,797.00 6.20% 1/31/97
248,837.50 250000 253,047.50 8.40% 5/15/97
248.095.30 250000 252,970.00 8.30% 6/30/97
Fd Natl Mtg Assn 4,378,437.02 4390000 4,378,437.02 8.70% 17/9/95
304,780.23 359000 329.325.08 6.10% 5/15/97
New Pro' ct X7 Bonda•••
Accti301-BD7B000 9l1/95 538,118.75 540000 5.64% 11130/95
500,314.50 500000 5.91% 8/30/96
5,597,709.38 5500000 8.05% 11/30/98
� 999,843.75 1000000 8.17% 11/30/97
708,380.82 892000 8.35% 5/37/99
14,233,492.88 74342000 6.20% 1l37/98
&36tatN US 7nrvie� ��i 66.677:8RZ.14 88.220�FqQ0.00 18 A:4p,586.94 . I 56.877:82Z.14��..
3
US rnwtvia
�Pro'ae[Area A2 Prol l2
Aca�t'301-8023000's
11,804.28 13.000.00 12.798.81 5.50% 2/15198
908.02 1.000.00 984.37 5.50% 2/15/98
11,712.28 14,000.00 13,787.18 5.50% 2/15/98
381,984.75 397.000.00 390,975.90 5.40% 2/tfi/98
40,359.15 45,000.00 43.885.10 5.60% 5/15/98
885.47 7,000.00 958.59 5.50% 6115/98
87.982.90 70,000.00 87.101.30 5.50% 8115/98
68.181.19 77.000.00 73,811.43 5.50% 8/15/98
190.378.05 115,000.00 206,208.50 5.40% 8/15196
243,582.50 250,000.00 248,202.50 4.30% 5/15/98
246.270.93 I60,000.00 250,825.00 6.00% 6/30/98
248.387.18 250,000.00 250,937.50 8.10% 7/31/98
248,554.88 250,000.00 257,772.50 8.20% 8/31/96
299,250.00 300.000.00 302,343.00 8.50% 9/30/98
Ppai
mv95
PoYn DaeR Aaderelap��A�m�y 12/7/85
InveebneK Pwftdb D9aW.imetmnfa
iv3ax
Purchav� Book Faca MrGt Stated MNunt WrM Tolal CUSIP
Description Dab VaW� Valw Valw Rrts Dab Invwbd InvnbUS
New Prolect Arsa#2�19951"'
Acct k301�H076100
1.311.781.25 1300000 8.10% e/30/97
H0,207.50 104000 8.40% 11/30/99
432.407.88 231000 B.V% 11130/97
2J28.898.88 217fi000 8.29% lI/t/97
0.00
Subtotal..:US Tnaurra�,:., S.S18.M12.B8 S 918':033.4p 3k3.631.86 ,97$,M112�:85��.
Bank of Ameriea-Savin a 0.00 � 0.00
Sbte LAIF 23,855,398.14 23,855,398.14 23,H55,398.14 SJ8% 23,655,398.14
Desert RoN 8nnd 4tuel:
US Trsuuri�s Note W/int Howinp
ACGTC117507400's
298,898.25 298000 299,089.BY 8.73% 1/31/98
Fidalit TnasuryFund 865,088.17 885,089.17 BE5,OBe.V 5.80%
SuCtatd..DaseetAm� $Gl ��44�iS 8S! '.� 8�57 S �98 R1. kl4R,, .
husF�.fiEiYM�MdIRaMI•U$Ttsw4tipt-�.RATFD AAA
7.8 Mil Low/Mod Mowiep 4.838.35 4.838.25
100 Mil Bond Usus 8,592,501.91 8,592,501.91 8,694,501.91 5.80%
1995 Pro'i 1 Bonda••• 807,175.37 807,775.37 5.80%
1995Pro'X28onda••• 162.B86.73 182.885.73 5.80%
17 MilBondlasua 2,890,838,13 2,890,838.13 2,913,287.19 6.80%
SubtaW';8w�a Axt .. 12.C78�Q47.S9 14.d 8;04 , tY; �. 799. U '.. 12.# d}Ti34
0.00
0.00
TOTAL POOLED CASH 9H,791,MI.74 99,440,544.70 58,879,480.85 98,�97,443.74
"Manthly roports typicalty ars rocsived u to orro full monih afbr cumnt month mA infortnation wnbined in t�w rs rt is
th�moat mcent roceiv�d.
'•Ths moat reeently recisved n rt for thi�iasu�i�datW Jul 37,1985. Wa hm d'ncuw�d th� bWn with Bank of Amencs.
Tha will bs asndin current etatamente u aoon r poa�ibls.
I cartify that theas invastments com ly with all Sbb lawe rtainin �o ths investm�nt of Local Aqency funds.
Paul S.Gibeon, Treasurer
Pape 2
. Ncv95
City o}Palm Desert
Schedule oi Investments
As ot November 30,1995
� CUSIP Purchase Investment Faee MarkeC Stated Maturity
Investmmt Descri 'on: Number Date Value Value Value Rate Date
1J57ie8surias�.�J}:WTClfUB099U'-l:
._.._. . ... . .... ._.._.....
US T�easu -Note 912827D41 1W27/94 3,983,750.00 4,000,000.00 4,035,000.00 6.50°b 11/30196
US Treasu -Note 912827E57 10/27/94 1,986,875.00 2,000,000.00 2,028,120.00 6.75% 2/28/97
US Treasu •Note 912827P97 10/27/94 1,782,562.50 1,801,692.00 1,802,538.00 5.875% 5/31/96
US Treasu -Note 912827�96 10127/94 1,787,062.50 1,808,154.00 1,808,442.00 6.25% 8/31/86
US Treasu -Stn 912833BT6 1W27/94 1,000,566.42 7,097,000.00 1,079,852.62 2/15/96
US Treasu •Stri 912833BU3 t0127/94 1,003,937.62 1,732,000.00 1,085,203.12 B/15/96
3Ub:Tatel • 11&IYeesluiBS 3a�.-654 T5�i Qi ::41898:BA8-AO i'!838;2S5.7k::
BankdRmencaeSa�Vi�- s
$ub7aEal • S�vlrl9s���:� ���- 0�2&¢�,,95222 �$53�jM8,1d'�., 2.00%
.�,lete-G11.I.F.
u Ctal - J_F. ��.t 21:�.�. ,Y �i 5J8% �
GW�atsrmizea:cartremtas M oo �
Great Westem � 384608937-6 10/28/95 1,500,000.00 5.50°b 1/25/% -
Great Westem 389-607877-5 10/26I95 7,500,000.00 S.SO% 1I25196
Great Wastem 389-807878•3 10/26l95 7,000,000.00 5.50% 1I25/96 .
Great Wastem 389-608458-3 70126/95 7,000,000.00 5.50% t/25/96
Home Savin s 594•000593-6 10l2&95 1,500,000.00 5.52% 12128/95
Home Sevin s 594-000592-8 10/26/95 1,500,000.00 5.52% 12/26/85
WomeSavin s 594-OW594-4 iN26195 1,000,000.00 5.52% 72/26/95
HomeSavin s 594-000591-0 10l2B�% 1,000,000.00 5.52% 12/26/85
Glendale Federsl 887-037083-5 11l20/85 1,500,000.00 5.56% 2RW96
$ub TAtel • C?aitificatea Df£1e O�k ��.�: N:'�640 000.04�:
FuntlS�tiYYtteU Ce RDA: ��.'!&��000:0�" Rata e to LAIF 5.832%
:.{Mi>,t rt:u1,';1 ii:Y1tl:(o�'::tlR:
. .: .. .:...........�.n....v::::�x>:::�:..: .......y^.:Yi$':y`'4:.:0:..:::»:.�):::G::'
+o)):..:<p..
�v... , y ••ii::i���n`:`T: ... .... ..
.: :. .. ':' .:...G..... ......?....:::.n::Ri''...i.::�::��:.:..'....rc...:. i::.:w:..n..�n..n..... . :: .f�N,..: �)iAPi�iu:t!`::G.S::�.,..
2.':,..
S90d 1561l8&:
�/+df9rt:'RI CF�921 '�.: 3Q1�a1.5Q0 ';�.
ResolutlonFDG-Stri 307-6021580 11/19/93 539,165.48 733,000.00 667,257.23 6.20% 7/15/97
Bank of America-Fideli Treasu
301-6021575 1,040.60 1,040.60 1,040.60 5.60%
301-8021580 534,041.59 534,041.59 534,041.59 5.60%
301r021577 2,793,9&1.46 2,193,980.46 2,193,980.46 5.60%
S�6Total - Ihdian-.R..� a �3i2@8,2Z8.13 �,���,: 3.+k33:A82iBS' S,9 �.�:915.98��:�:
Starra�Nava9P-i ��;��. 3kt-8(�t84tl0 :��:
Bank of Amarica-Fideli Treasu
301�6028478 42.41 42.47 42.41 5.60%
301-6028480 243,307.62 243,301.62 243,301.92 5.60%
301-6028481 71.75 7175 7175 5.60%
301-6028482 62.12 62.12 62.12 5.60%
sudToEat . Sierra-Nova :i243�4T7.90 ��. 293R77i9D 2 '.:s.2U�:':
, Page 1
Nov95
Ciry af Palm Desert
Preliminary Schedula ot Investments
As of November 1995
Continued �
, AccowA Purehase Inveatment Face MarkeC' Stated Maturity
Inveatment Descri tion: Number Drte Value Value Value Rah Date
BbMI 158U65:Cbltti�uetl
AQs7.y.
B of A-Pecific Horizon Treasu Fund� 117178400 220.71 220.71 220.71
117178401 16,323.04 16,323.04 16,323.04
AQ87-Y:::_ SubT0Y34.:��. :-�.185A3,35 ��.��.� 16.5-03;ZS 16;3A375;:
61 FMt„:9A-1 ��.��. 3F11�-8S0f1000 -;
US Treasu •SM 301•8200080 222,059.23 275,000.00 242,000.00 5.30% 2/75/98
US Treasu -Stri 307-8200D80 311,122.00 350,000.00 335,685.00 6.30% 8/15/96
Bank of America•Fidel' Treasu
301$200W7 47,022.70 47,02270 47,022.70 � 5.60% �
301-8200075 289.64 2&9.64 289.64 5.60%
307-8200080 101,835.32 701,935.32 101,935.32 5.60%
u a�t - am.-< ;�:8 38.89 �.'�.'� 4.2<7'�:&8 �lBfi
suttt0tf�pCa 9A-2 ��:�. 3D£�18W �:
Bank M Amaries-Fidel" Trensu
301-6064875 80,403.09 80,403.09 80,403.09 5.60%
301-6084877 39,039.34 39,039.34 39,039.34 5.60%
301-8084880 191,�26.20 191,726.20 191,72610 5.60°.5
SubTcC51 . 5Untarsace ;�.31t i9B,S3 ��.� 311,t68:&1 311�;468�;63
fAermo.�84w1 .'�.�:: 30f�600 z
����: ........_. ......_.........: �
Bank M Amenca•Fldal' Tressu
301�6075876 26,898.40 26,898.40 26.898.40 5.60%
3013075877 701039.07 701,039.01 701,IXi9.01 5.60%
307-6075680 130,218.70 130,278.70 130,218.70 5.60°.L
� 301-6075682 169.55 169.55 769.55 5.60%
SubtT�al • Mnano " " :�858,325.66 '�'� 858;335166 856;3?S.6fi���
Palm>i;7p$artFlnancio ��R � -85���RevenwBcntls Issw��[hto: emper2B,1895.
. �
., .::» , >��qS4.NA#�kG
:x:ri:.�e„�,. :rw ;
"Monthly reports are lypicalty received up to one lull month aRer current month end.
Infortnation wntained in this repoR is most recent received.
I ceRiy that these investments eamply with all5tale laws pertaining to the investme Local Agency funds.
Paul 5.Oibson,Treasurer
cc:11/Ot195
Paul S.Gibwn
8.Wright
Invastment File
uhedule.xls
Paga 2