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HomeMy WebLinkAbout2002-12-18 IFC Regular Meeting Agenda Packet • • COMMITTEE MEETING WORKSHEET Meeting Description Investment Committee Meeting Date 12/18/02 Time 2:00 p.m. Location North Wing Conference Room Mailed Agenda 12/12/02 Posted Agenda 12/12/02 Time Convene Adjournment 2= Oo -', 00 Staff Members Ye/s No «Others Attending Yes No 1 Paul Gibson, ✓ /✓ 11 Dennis Coleman 2 Council Member V J Q 12 Justin McCarthy 3 Council Member / 9(.8- 13 Rodney Young 4 Dave Erwin, City 14 Recording Secretary 5 Carlos Ortega, City 6 Thomas Jeffrey Public Members Guests Attending 7 Russ Campbell ✓ 7/ 15 8 Murray Magloff ✓ ✓ 16 9 Bill Veazie (✓ 17 10 Everett Wood 11 v 18 19 20 Follow-Ups/Tasks Assigned Person Due Date 1 m(nA1 2 tf a Q,l) m 7Y fo tvicrikeol 5 piof,e� �9 l� l `4- ,ram (�) tip l/l 477N, 6 bfOA) 1 ` LO (nif Li Y 7 t/)0 C� `' 1 v ""' ' irt/ti • • Spok Mtn Mtn MEETING NO1'tS 1 � Colt Vx4 --1 (>346r0 (17-177 Jo? 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Thank you for your assistance. Attachments (1) • G:\Finance\Diana Leal\Wpdocs\Investment Committee\2002 Memos\City Clerk\I 1-20-02attendance.wpd 00 -1 C\ U a w N .~-- p U' 00 �l CP, vi A W N --- , i ,--,Ir \ i, , „.. . , ..1-- !' ,i c, ...0 ..., v ,,p _\_, \„ Cc Z• con , z � � � z `-t• ''' ^,- t L .-- . Z < ))i ' 0 cm. cin _ tt y� 2 n C t7 o c t © a 0 10 Ar, "it a mm -y' N n 0 , 0 0 0 H A sy• ft - o O a o_ mLet y a y• cot a �' • w a u m m oa a a CITY OF PALM DESERT AK tit INVESTMENT & FINANCE COMMITTEE AGENDA !C" M h ' December 18, 2002, 2:00 p.m. North Wing Conference Room 94. -7E�oE �3 I. CALL TO ORDER II. ROLL CALL III. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not on the agenda may address the Investment and Finance Committee at this point by giving his/her name and address for the record. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. B. This is the time and place for any person who wishes to comment on agenda items. It should be noted that at the Investment and Finance Committee's discretion, these comments may be deferred until such time on the agenda as the item is discussed. Remarks shall be limited to a maximum of five minutes, unless the Investment and Finance Committee authorizes additional time. IV. COMMITTEE MEMBER REPORTS V. CONSENT CALENDAR ALL MATTERS LISTED ON THE CONSENT CALENDAR ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE ROLL CALL VOTE. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS MEMBERS OF THE INVESTMENT & FINANCE COMMITTEE OR AUDIENCE REQUEST ITEMS BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION AND ACTION UNDER SECTION V. CONSENT ITEMS HELD OVER, OF THE AGENDA. A. Approval of Minutes Rec: Approve minutes of the regular meeting of November 20, 2002, as submitted. Action: 1 121802.wpd INVESTMENT & FINANCE COMMITTEE AGENDA December 18, 2002 VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for November 2002 Rec: Review and submit for the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity for November 2002. Action: B. State of California Local Agency Investment Fund Balance for the month of November 2002 Rec: Informational item for the Committee to review. No action required C. California Asset Management Program (CAMP) November 2002 Statement Rec: Informational item for the Committee to review. No action required D. Comprehensive Annual Financial Report 6/30/02 Rec: Report and submit to City Council Action: E. City and Redevelopment Agency Monthly Financial Reports for City Council for November 2002 Rec: Report and submit to City Council Action: 2 121602.wpd INVESTMENT & FINANCE COMMITTEE AGENDA December 18, 2002 F. Parkview Professional Office Buildings - Financial Report for November 2002 Rec: Review and file report Action: G. Palm Desert Golf Course Facilities Corporation Financial Information for October 2002 Rec: Review and file report Action: VIII. CONTINUED BUSINESS None. IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks Rec: Status report on background checks Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status report on issuing new bonds Action: X. NEXT MEETING - Wednesday, January 22, 2003 at 2:00 p.m. XI. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 12", day of December, 2002. Dia a eal, Rec ng S cretary 3 121802 wpd •• h Finance Department � '; MEMORANDUM To: Rachelle Klassen, City Clerk From: Diana Leal, Administrative Secretary Subject: Investment and Finance Committee Date: December 26, 2002 Attached is a copy of the November 20, 2002 minutes of the Investment and Finance Committee approved by the Committee on December 18,2002. Please place on the next City Council agenda for approval thereof Thank you for your assistance. Attachments (1) • G:\Finance\Diana Leal\Wpdocs\Investment Committee\2002 Memos\City Clerk\I I-20-02.wpd CITY OF PALM DESERT �l INVESTMENT & FINANCE COMMITTEE I Wei' Ea Minutes ';. 1/j SA / November 20, 2002, 2:00 p.m. $� Nigh North Wing Conference Room AI JED V• .f I. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, November 20, 2002 at 2:05 p.m. II. ROLL CALL Present: Absent: Paul Gibson, Director of Finance David Erwin, City Attorney Dick Kelly, Mayor Jean Benson, Mayor Pro-Temp Thomas Jeffrey, Deputy City Treasurer Carlos Ortega, City Manager Everett Wood Bill Veazie Murray Magloff Russ Campbell Also Present: Justin McCarthy, ACM Redevelopment Dennis Coleman, Redevelopment Finance Manager Rodney Young, Desert Willow General Manager Diana Leal, Recording Secretary Guests: None III. ORAL COMMUNICATIONS None. IV. COMMITTEE MEMBER REPORTS None. 1 I12002.wpd INVESTMENT & FINANCE COMMITTEE MINUTES November 20, 2002 V. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Campbell and seconded by Mr. Magloff to approve the Minutes of the October 23, 2002 meeting as submitted. Mr. Kelly abstained. Motion carried. VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for October 2002 Mr. Jeffrey reported that for the month ended October 31, 2002, the book value of the City Portfolio was approximately $144 million. This represented a $26 million decrease from prior month. Twenty-two million was due to a City municipal bond being called; another $2.2 million was due to Westfield Shopping Center being paid for the parking structure. The City earned approximately $271,000 in interest. The portfolio yield-to-maturity was 2.15%. For the month ended October 31, 2002, the book value of the RDA Portfolio was approximately $94.9 million. The RDA earned approximately $185,000 in interest. The portfolio yield-to-maturity was 2.23%. Mr. Jeffrey stated that he had recently attended a conference sponsored by the California Debt Investment Advisory Commission Conference and the California Municipal Treasurers's Association. At the conference, A Wells Fargo economist had indicated that the fundamentals for economic recovery were in place and that an economic recovery would occur during 2003/04. However, a very mild recovery is expected because the recession was relatively mild. That recession was not driven by a decline in housing starts or auto sales; rather, it was led by a decline in business spending. Consequently, pent-up demand in housing and autos will probably not be available to further stimulate the recovery. B. State of California Local Aaency Investment Fund Balance for the Month of October 2002 Mr. Gibson said that the accounts remain maxed out for both the City and Redevelopment Agency. 2 112002 wprl INVESTMENT & FINANCE COMMITTEE MINUTES November 20, 2002 C. California Asset Management Program (CAMP) October 2002 Mr. Gibson said that the account contains approximately $23 million. D. City and Redevelopment Agency Monthly Financial Reports for City Council for October 2002 Mr. Kelly said that the year-to-date budget is .6 million and the actual is 1.077 million. Mr. Gibson said that the reason it is higher is due to the timing of the payment received from the Marriott. The payment is paid on a 13-payment period instead of a monthly payment period. Thus, two payments can be received on the same month which is what occurred. The Marriott payment is roughly about $250,000. Mr. Gibson said that the year-to-date compared to last year has some time issues with regard to posting of accruals. Mr. Wood asked when the accruals were done. Mr. Gibson said that the accruals are based on a fiscal year. The fiscal year ends on June 30. Accruals are done in July and August. Some of the payments are for June. The increases are reversed and are shown in October or November, depending on when the audit is completed. Mr. Wood asked if the audit was complete. Mr. Gibson said that the audit was complete, however, because they were attempting to form a new corporation from the Golf Course operations and the Internal Revenue Service said that they were unable to do so as golf courses are not considered non-profit. Therefore, staff re-did the books to reflect the former methodology so that it would be consistent from year to year. Staff is in the process of having the figures reviewed once more before the audit is finalized. Mr. Kelly said that when there is a significant change in the amount indicated on the monthly financial reports, staff should include a footnote explaining the reason for the difference. E. Parkview Professional Office Buildings - Financial Report for October 2002 Staff is in the process of bidding the roof which will include the seal similar to that of the City hall buildings. Bids are expected to be received next week. All spaces are occupied. The remaining space was that of Kelly. It will be occupied by Battin and Benoit. F. Palm Desert Golf Course Facilities Corporation Financial Information for October 2002 Mr. Gibson said that the necessary information was not received on time, therefore, Mr. Young presented pertinent information. 3 112002.wpd INVESTMENT & FINANCE COMMITTEE MINUTES November 20, 2002 Mr. Young said that October was a good month. The expenses were under by $111,000. A part of this amount will be offset in November due to the purchase of seed and additional expenses for the north golf course, Firecliff. They will be seeding in November. They will probably be $70,000 - $75,000 over in November. In the Food and Beverage department they were short in revenues. They were over budget on payroll as they had an unusual amount of turnover. They had training issues as well. Mr. Campbell asked when they would break even. Mr. Young said that October was slow. He expects that business will pick up in the months to follow. Mr. Kelly asked when Firecliff would open. Mr. Young said that it would open on December 26. Mr. Kelly said that he wanted to compliment Mr. Young for doing a great job in keeping Desert Willow in good condition from the clubhouse to the 9`h and 18th fairway. Mr. Young said that they worked on hole 1-8, skipped to 11-17 and worked on 18 and 9. The water was kept on a little longer this year so that the grass could stay greener. Mr. Kelly asked if Desert Willow had a flag system such as the one that was used at Monterey. Mr. Young said that not officially, however, he would like to incorporate it. He will call to find out where the miniature handicap flags were obtained. Mr. Magloff asked about the lighting for the handicap at the parking area. Mr. Young said that they are in the process of re-doing the entire parking lot. They will be pouring concrete tomorrow. They are waiting for the fixtures to come in. The fixtures should be received shortly after Thanksgiving and should be up by Christmas. Mr. Young said that the receiver for the speaker system's closed microphone was on one of the speakers and is transferred into two speakers. A few bad episodes were seen when the room was full. This was due to dead spots where the microphone would not reach the receiver. They fixed that by adding two more speakers with receivers and placing them in opposite sides of the room. Either of the receivers can pick up the microphone and is spread through all of the speakers. This has solved the problem. The blinds will be placed on the windows similar to the blinds in the private dining room. The view of the golf course is still visible yet the blinds break the sun. At the south end, there is a window that will have two shades. One shade will be like the others, however, the window will also have a dark shade which will be used when power point presentations are done. The blinds are expected to be delivered within the next couple of weeks. 4 112002.wpd INVESTMENT & FINANCE COMMITTEE MINUTES November 20, 2002 Mr. Kelly asked about the rounds. Mr. Young said that the report does not include the number of rounds. In October they had approximately 5,000 rounds of golf. Mr. Wood asked about the income that was mentioned at the last meeting that was received from another source. Mr. Gibson said that Mr. Wood was referring to Intrawest which is a timeshare project that is located next to the golf course. Intrawest pays fees to have the ability to play on the golf course as well as a fee for additional players that they bring on that are members. Intrawest receives a 20% discount. Mr. Gibson said that Mr. Young does not include that figure as he is not privy to that information. Unfortunately, because the Investment Committee meeting was held a week earlier, the accounting technician did not receive the reports on time. Therefore, the report that includes this information was not prepared. Mr. Gibson said that Intrawest monies received are used for the construction purposes of the golf course. All of the various capital projects that are done by • Mr. Young are funded by the Intrawest monies instead of having depreciation to do the improvements. Mr. McCarthy asked if the transient occupancy tax (TOT) is also utilized. Mr. Gibson said that TOT goes into the general fund. Mr. Gibson said that once the other hotel sites are in place, true monies will be received. At this time, if depreciation is included, Desert Willow breaks even, or there is a small profit. Mr. Wood asked what would be depreciated besides the equipment. Mr. Gibson said that the equipment and the golf carts are the two big ticket items with the clubhouse coming in last. Mr. Wood said that this month last year was 599,927 as opposed to 477,679 this year. There are fewer rounds. Mr. Young said that last month there were 31 golf course days. Last year, there were 45 golf course days because the Mountain View golf course was open in September. They chose not to do the same this year because it caused some issues with overseeding too early and they had to reseed areas. Mr. Young said that on another note, after checking numerous references, he hired a new director of sales and marketing. His name is Mike Osgood. He is a Palm Desert High School graduate and he has worked for Indian Wells Golf Resort and the Marriott. VIII. CONTINUED BUSINESS - None. 5 112002.wpd INVESTMENT & FINANCE COMMITTEE MINUTES November 20, 2002 IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no business issues to report, discussion ensued to the next agenda item. B. Bond Issuance by Palm Desert Financing Authority Mr. Coleman said that they are on schedule. The housing report has been submitted to the City Council. They have 60 days from the day the report was submitted to the City which is November 14 for review and for anyone to challenge it. They will be able to price bonds on the 61s1 day. They have a report being prepared by their fiscal consultant. They will verify the revenue that is coming in and will show what the net revenue is for housing set aside. Preliminarily, given the bond market which has been fluctuating, there was one period where it actually moved 60 days from 6/10 of 1% of interest back and forth. However, given where the rates are, they can do somewhere in the neighborhood of 28 to about 35-38 depending upon the millions of dollars in Project Area No. 2. This also depends upon whether or not they do escrow bonds. They are going to be a little more conservative as they have some unknowns that they want to take into effect. One of the things that they wanted to size for was ERAF which even though it was only what the state did in last year's budget as was done back in 1993, 1994 and 1995. When they had problems with their budget, they shifted funds in property tax revenues from cities, agencies and special districts to the school districts. They did this because their portion that they had to backfill was lowered. The 2001/2002 bill was basically a trailer bill to the budget that was passed last year they called for ERAF. Now that things are coming out and the actual budget deficit that was projected to be $6 billion at the end of this year carried over with next year's projected $15 billion. Staff feels that ERAF is going to continue. They have always felt that it would continue in their projections and cash flow. Now the word is that the $75 million they took from Redevelopment Agencies collectively may not be all that it is going to cost, it may be higher because the legislative analyst said that the budget deficits projected over the next 5 to 6 years can be $12 to $16 billion. The worry that staff has is that $75 million may not be enough for what they need. The other thing to point out is that the ERAF is spread proportionately amongst redevelopment agencies based on the gross and net increment. The Palm Desert Redevelopment Agency is the fourth largest redevelopment agency in terms of tax increment. Of the $75 million in this year's budget, they are into it for about $1.2 million given the agency's size. They are going to take a more conservative approach and size around that to make sure they have sufficient money available. 6 112002 wpd INVESTMENT & FINANCE COMMITTEE MINUTES November 20, 2002 Mr. Kelly said that some of the other agencies would have a much more difficult time taking a hit than the City of Palm Desert. Other redevelopment agencies may have to default if they are unable to service the bonds. Mr. Coleman said that the redevelopment agencies must be more careful now because the state has said that if a City cannot make the payments, that they will be forced to do so from that City's general fund. Mr. Coleman said that they are looking at the end of January to get this bond issue completed. The next bond will be for Project Area No. 1. X. NEXT MEETING - Wednesday, December 18, 2002 at 2:00 p.m. Xl. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 2:35 p.m. Respectfully submitted, 7tfo Inal, ord' g Secretary 7 112002.wpd ' w reton .City:of.Pitpv #lif esartrn ' ` �' ,a i a i` City�and�Redeuel042.opment Agency Porttfohosd \'� � �GOMPLiANCE Ai ANALYSIS ANC INUESTM£NT POR ,y � r 1; . egi -oat-%d ..November2p02 Paul S. Gibson, C.C.M.T., Treasurer Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer Treasurer's Commentary The Federal Open Market Committee (FOMC) met on 10 December and left interest rates unchanged. The U.S. economic recovery is currently in a holding pattern, with the recovery neither gaining nor losing momentum. The greatest source of risk aversion is the continued possibility of U.S. involvement in an armed conflict in the Middle East. Businesses continue to discharge employees in an effort to improve profitability since they cannot raise prices. Overcapacity continues to plague industry--factory utilization is at 74 percent. Consequently, business investment remains weak. Those business sectors that do have high utilization rates tend to be in mature industries with low rates of technological change. As such, there is little incentive for additional fixed investment. There is also an open question if small investors will re-enter the stock market, based upon the collapse of the tech stocks,the risk of terrorist attacks in the U.S., and the corporate scandals of last summer. If they don't re-enter the stock market, then any stock rallies will be short-lived,due to a lack of momentum and to sell-offs at various market levels. The State of California will be making sharp budget cuts in order to reduce a$25 billion deficit. Massive reductions at the state level will eventually ripple down to local agencies. Tax increases will further dampen economic activity in California. Pis Qiinorti c.c.M r. Treasurer PORTFOLIO STATISTICS Dollars in Thousands NOV-02 OCT-02 SEP-02 AUG-02 JUL-02 JUN-02 CITY Month-End Book Value"' $ 142,520 $ 144,054 $ 170,423 $ 180,743 $ 189,368 $ 195,867 Month-End Market Value*** $ 142,742 $ 144,259 $ 170,723 $ 181,096 $ 191,228 $ 197,955 Paper Gain (Loss) $ 222 $ 205 $ 300 $ 353 $ 1,860 $ 2,088 Interest Earnings $ 238 $ 271 $ 390 $ 428 $ 462 $ 453 Yield-To-Maturity 2.00% 2.15% 2.22% 2.64% 2.88% 2.86% Weighted Maturity(Days) 50 52 70 222 285 295 Effective Duration 0.03 0.04 0.04 0.06 0.08 0.11 RDA Month-End Book Value*** $ 92,761 $ 94,884 $ 99,221 $ 100,125 $ 115,066 $ 92,648 Month-End Market Value*** $ 94,996 $ 97,147 $ 101,468 $ 102,313 $ 119,206 $ 94,673 Paper Gain (Loss) $ 2,235 $ 2,263 $ 2,247 $ 2,188 $ 4,140 $ 2,025 Interest Earnings $ 162 $ 185 $ 191 $ 199 $ 216 $ 198 Yield-To-Maturity 2.06% 2.23% 2.26% 2.27% 2.23% 2.37% Weighted Maturity(Days) 150 147 141 142 139 166 Effective Duration 0.13 0.13 0.13 0.14 0.13 0.16 City of Palm Desert- Portfolio Characteristics 30 November 2002 Dolleie in Thousands • Ageing Interval Market Value I' < 1 M $ 50,512 General Fund Ageing' <2M 8,006 <3M 2,029 80 7e <6M voiA < 1YR 60- SO aE <2YR - 0 ;/J - a 40- Fto <3YR µq, <4YR a <5YR - ` 4i 12 12 ' 3 >SYR 0 „'1 r4 0 0 Total: $ 68,641 <1M <2M <3M <6M <1YR <2YR \ 1 Ratinort* Market Value Credit Quality' A A1/P1 MA $ 25,123 AAA 3% 6% AA 21,a: A 4,128 A1/P1 10,039 0% Unrated** 80,638 Unrated" Total: $ 119,928 68% Sector Market Value Asset Allocation' MTNs LAIF U.S.Treasury $ - Comm P er 3% 34% Federal Agency 6,095 7% Money Market Funds 26,981 Commercial Paper 10,039 Money Market MTNs 4,028 Funds U.S.Treasury LAIF 40,000 223/0 0% RDA Loan 32,785 Fed Agency RDA Loan Total: $ 119,928 6% 28% \ Month City Yield LAIF Yield Variance PertormanceI Dec01 3.54 3.26 0.28 Jan02 3.27 3.07 0.20 3.6 Feb 3.27 2.97 0.31 ,4, Mar 3.17 2.86 0.31 _ t ,J4' k Apr 3.18 2.85 0.34 e nia :"� '� May 3.06 2.74 0.322 8 44' A A - Jun 2.86 2.69 0.18 PI, , « ii �' A - Jul 2.88 2.71 0.17 x Aa `Y a , 1 Aug 2.64 2.59 0.04 t.s r u Sep 2.22 2.60 -0.38 Dec0Uan02 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Oct 2.15 2.49 -0.33 Nov2.00 2.30 -0.31 O LAIF Yield ®City Yield \ J * Standard and Poor's Credit Ratings ** LAIF, HighMark, and City Loan to RDA Page 2 al a y City of Palm Desert Portfolio Holdings 30 November 2002 Market Ratings I Par Value I Issuer I Coupon I Maturity I Cost I YTM Price 1 Value Moody's! S&P Medium-Term Notes $ 4,000,000 GENERAL MOTORS 5.95 3/14/03 $ 3,999,957 5.94 100.70 $ 4,027,856 A2 BBB $ 4,000,000 Subtotal $ 3,999,957 5.94 $ 4,027,856 Commercial Paper-Unsecured $ 2,030,000 GENERAL ELECTRIC 2.08 1/15/03 $ 1,999,036 2.14 99.83 $ 2,026,498 Ma AAA $ 6,000,000 GENERAL ELECTRIC 1.76 1/6/03 $ 5,943,387 1.81 99.86 $ 5,991,737 Ma AAA $ 2,023,000 WELLS FARGO BANK 2.01 12/26/02 $ 1,999,167 2.07 99.90 $ 2,021,042 Aa2 A+ $ 10,053,000 Subtotal $ 9,941,590 1.95 $ 10,039,277 Agencies- Discount $ 4,080,000 FED NATIONAL MTG ASSOC 2.21 3/14/03 $ 3,999,350 2.28 99.65 $ 4,065,720 Aaa AAA $ 2,034,000 SALLIE MAE 2.13 2/7/03 $ 1,999,461 2.19 99.77 $ 2,029,322 Aaa AAA $ 6,114,000 Subtotal $ 5,998,811 2.28 $ 6,095,042 LGIP $ 40,000,000 L.A.I.F. 5.66 12/1/02 $ 40,000,000 2.30 100.00 $ 40,000,000 NR NR $ 40,000,000 Subtotal $ 40,000,000 2.30 $ 40,000,000 LGIP $ 23,283,142 C.A.M.P. 1.88 12/1/02 $ 23,283,142 1.52 100.00 $ 23,283,142 N/A AAA $ 23,283,142 Subtotal $ 23,283,142 1.52 $ 23,283,142 Pooled Funds-AIM $ 19,028,509 PRIME PORTFOLIO 0.00 12/1/02 $ 19,028,509 1.11 100.00 $ 19,028,509 Aaa AAA $ 19,028,509 Subtotal $ 19,028,509 1.11 $ 19,028,509 Pooled Funds-HighMark $ 5,907,680 CITY MAIN SWEEP 0.00 12/1/02 $ 5,907,680 0.56 100.00 $ 5,907,680 NR NR $ 34,000 DESERT WILLOW SWEEP 0.00 12/1/02 $ 34,000 0.56 100.00 $ 34,000 NR NR $ 147,228 GOLF COURSE SWEEP 0.00 12/1/02 $ 147,228 0.56 100.00 $ 147,228 NR NR $ 1,764,007 OFFICE COMPLEX SWEEP 0.00 12/1/02 $ 1,764,007 0.56 100.00 $ 1,764,007 NR NR $ 7,852,915 Subtotal $ 7,852,915 0.56 $ 7,852,915 City Loan to RDA $ 32,785,480 CITY OF PALM DESERT 5.18 12/1/32 $ 32,785,480 2.30 100.00 $ 32,785,480 NR NR $ 32,785,480 Subtotal $ 32,785,480 2.30 $ 32,785,480 Total Investments $143,117,047 $142,890,404 2.00 $143,112,221 NR= Not Rated Page 3 of 7 4 City of Palm Desert Portfolio Holdings 30 November 2002 Market Ratings Par Value I Issuer I Coupon I Maturity I Cost I YTM Price -I Value Moody's1 S&F Cash $ 52,540 OFFICE COMPLEX CHKG 0.00 12/1/02 $ 52,540 0.00 100.00 $ 52,540 NR NR $ (700,549) CITY MAIN CHKG 0.00 12/1/02 $ (700,549) 0.00 100.00 $ (700,549) NR NR $ 175,209 DESERT WILLOW CHKG 0.00 12/1/02 $ 175,209 0.00 100.00 $ 175,209 NR NR $ 35,638 CPDGOLFCOURSE 0.00 12/1/02 $ 35,638 0.00 100.00 $ 35,638 NR NR $ 30,181 OFFICE COMPLEX TRUST 0.00 12/1/02 $ 30,181 0.00 100.00 $ 30,181 NR NR $ 36,954 RECREATIONAL FAC CHKG 0.00 12/1/02 $ 36,954 0.00 100.00 $ 36,954 NR NR $ - VACATION INN CHKG 0.00 12/1/02 $ - 0.00 100.00 $ - NR NR 370,027) Subtotal $ 370,027) 0.00 370,027) Total Cash and Investments $142,747,020 $142,520,378 $142,742,195 NR=Not Rated Page 4 of 7 Palm Desert Redevelopment Agency- Portfolio Characteristics 30 November 2002 Dollars in Thousands Ageing Interval Market Value l 1 <1 M $ 68,882 Portfolio Ageing w/o SLGSsI <2M - <3M - too 89 <6M 197 < 1YR 868 ?' 70- r-ti c 2YR 7,089 0 60 - 3 50 c 3YR ° 40- cIla IL<4YR - 30- .' <SYR 20 " 1 9 >5YR 10- ;yti o 0 0 _ pi 0 0 Total: $ 77,036 <1M <2M <3M <6M <1YR <2YR <3YR <4YR A7/P7 Quality* Market Value Credit Quality' I , AAA $ 34,330 . AA - AAA A - 36% Unrated" 64% At/P1 - Unrated" 60,561 AA A Total: $ 94,891 . 0% o°i Federal Agency Sector Market Value Asset Allocation 0% U.S.Treasury $ 8,155 Federal Agency - Money Market Funds Money Market Funds 32,340 34% LAIF 54,396 LAIF Commercial PaperIr. 57% Corporate Bonds - U.S.Treasury Total: $ 94,891 9% 2 / \ Month RDA Yield LAIF Yield Variance Performances ' Dec01 • 2.59 3.26 -0.67 Jan02 2.46 3.07 -0.61 3.6 Feb 2.51 2.97 -0.46 Mar 2.28 2.86 -0.59 - Apr 2.42 2.85 -0.43 m _ r, May 2.38 2.74 -0,36 2.s sJun 2.37 2.69 -0.32 T " r Jul 2.23 2.71 0.48 .V Aug. 2.27 2.59 -0.33 1.6 . '1- -ti `4 *T . k Sep 2.26 2.60 -0.35 DecOUan02 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Oct 2.23 2.49 -0.25 Nov 2.06 2.30 -0.25 O LAIF Yield®RDA Yield Standard and Poor's Credit Ratings " LAIF and HighMark Sweep Page 5 of 7 1. r. Palm Desert Redevelopment Agency Portfolio Holdings 30 November 2002 Par Value Issuer Coupon] Maturity Cost YTM Price Value Moody's S&P U.S.Treasury-Discount • $ 198,000 UNITED STATES TREASURY 4.70 2/15/03 $ 150,793 5.45 99.74 $ 197,479 Aaa AAA $ 181,000 UNITED STATES TREASURY 4.63 2/15/04 $ 130,168 5.51 97.98 $ 177,351 Aaa AAA $ 7,143,000 UNITED STATES TREASURY 4.59 8/15/04 $ 4,989,671 5.54 96.77 $ 6,911,995 Aaa AAA $ 532,400 UNITED STATES TREASURY 4.66 8/15/03 $ 394,279 5.47 99.02 $ 527,204 Aaa AM $ 344,600 UNITED STATES TREASURY 4.66 8/15/03 $ 255,200 5.47 99.02 $ 341,237 Aaa AM $ 8,399,000 Subtotal $ 5,920,112 5.53 $ 8,155,265 LGIP $ 40,000,000 L.A.I.F. 0.00 12/1/02 $ 40,000,000 2.30 100.00 $ 40,000,000 NR NR $ 4,894,821 L.A.I.F.BOND PROCEEDS 0.00 12/1/02 $ 4,894,821 2.30 100.00 $ 4,894,821 NR NR $ 9,500,829 L.A.I.F. BOND PROCEEDS 0.00 12/1/02 $ 9,500,829 2.30 100.00 $ 9,500,829 NR NR $ 54,395,649 Subtotal $ 54,395,649 2.30 $ 54,395,649 • Pooled Funds-AIM $ 26,174,713 PRIME PORTFOLIO 0.00 12/1/02 $ 26,174,713 1.11 100.00 $ 26,174,713 Aaa AM $ 26,174,713 Subtotal $ 26,174,713 1.11 $ 26,174,713 Pooled Funds-HighMark $ 5,957,126 HOUSING AUTH CHK SWEEP 0.00 1211/02 $ 5,957,126 0.56 100.00 $ 5,957,126 NR NR $ 207,831 HOUSING AUTH TRT SWEEP 0.00 12/1/02 $ 207,831 0.56 100.00 $ 207,831 NR NR $ 6,164,957 Subtotal $ 6,164,957 0.56 $ 6,164,957 Total Investments $ 95,134,319 $ 92,655,431 2.06 $ 94,890,585 Cash $ 53,629 HOUSING AUTH CHKG 0.00 12/1/02 $ 53,629 0.00 100.00 $ 53,629 NR NR $ 51,753 HOUSING AUTH TRUST 0.00 12/1/02 $ 51,753 0.00 100.00 $ 51,753 NR NR $ 105,382 Subtotal $ 105,382 0.00 $ 105,382 Total Cash and Investments $ 95,239,701 $ 92,760,813 $ 94,995,966 NR=Not Rated Page 6 of 7 STATEMENT OF COMPLIANCE The investment portfolios of the City of Palm Desert('City°)and the Palm Desert Redevelopment Agency("RDA')are governed by federal, state,and local law. The City Treasurer's"Statement of Investment Policy" is more restrictive than the California Government Code. The Palm Desert Investment Committee and the Palm Desert City Council review the Statement of Investment Policy annually. For the month ended 30 November 2002,the City and the RDA investment portfolios were in compliance with all applicable federal,state,and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity, and yield (in order of priority). Barring unforeseen events,the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert and the Palm Desert Redevelopment Agency over the next six months. In addition,portions of either the City or the RDA portfolio could be liquidated in order to meet any significant, unexpected cash requirements. Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the market value of all securities in the City and the RDA investment portfolios. State and Local Government Series securities are held in escrow accounts and are therefore not included in this report as assets. All balances are bank balances. Respectfully submitted on 18 December 2002, PauulS riebsons C.C.H.T. City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS ICalifornia Government Code I City Investment Policy CA Govt Maximum Maximum Quality Maximum Maximum Quality %of City %of RDA Code Investment Category Maturity Limit S&P/Mdys Maturity Limit S&P/Mdys Portfolio Portfolio 53601(a) Palm Desert Bonds 5 Years No Limit Not Authorized 1) ., "53601(b), ;,�� ,US.Tieasunes, ;"E, ,5Years� ,NoL"imit=v,7,?..v,.+�,�x>'.. a5°Years*NoL^imit2rM,,AZ, „";0:0%arbg5.5%°4°, 53601(c) CA State Debt 5 Years No Limit Not Authorized 53601(d) CA Local Agency Debt 5 Years No Limit Not Authorized 5360,1(e) ;' F.ed'eial=Agencies;' ' Srt5Years` ,t5,Yearsr 30`.4'_ W° ', r4'2%Mwi0;0%1'. 53601(1) Bankers's Acceptances .180.Daysl _"K40%=iN ,".WW.4 r1801)ay6& t, 40%, A,1 &'P"1p ,, s" ', 4,,, `53601(g) ,:--:CorTimetcial Paper.#, :270;Days 25% :,;; ,A 1+or;P'1; 2707Days, s 25%ate 70% 53601(h)' ;` f Neg"`oiiable CDs S,Yeais:, 30%: rAZ40);;;\ t",30% . AA*o Aa3 53601(i)", e:` . .u':Repos 1+Year,< tNoLirrrt= `, s .x30-Days_ i‘ 20%fir., AAA;&Aaa 53601(0 Reverse Repos 92 Days 20% Not Authorized '53601(I) Medium Teim Notesr`t a 5,Years ,t30%<d'?: Mgiregcn44 7g30%e'",, -`,"AK,K, 42 8%4t 53601(k). ;*. ,*Mutual Funds , ;;;': :90.Days' 20%. wAAA'&'Aaa; ,90.Days; sac;20% ,= AAA,&}Aaa 53601(1) Trust Indenture Debt Not Authorized 53601(m) Secured Bank Deposits 5 Years No Limit Not Authorized 53601(n) Mortgage-Backed 5 Years 20% A(Issuer)& Not Authorized Securities AA(Security j.16429 . •,;�K?x . `LAIFz 4.- x a is ,No'Li rilt' ti°, P!tee: ,aa,s„;:+01,1ratkNv'Limit'f ' °<s .028:0%i ."158i7% 77.1% I 100.0% (1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. Certified California Municipal Treasurer Page 7 of 7 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER �,.� SACRAMENTO _ �+' Local Agency Investment Fed = , PO Box 942809 Sacramento, CA 94209-0001s (916) 653-3001 November, 2002 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attu: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 40,000,000.00 Total Withdrawal : 0.00 Ending Balance : 40,000,000.00 • Page : 1 of 1 STATE OF CALIFORNIA PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO f Local Agency Investment Fund 1, \r PO Box 942809 Sacramento, CA 94209-0001 "Th (916) 653-3001 November, 2002 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Alta: TREASURER 73-5I0 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 40,000,000.00 Total Withdrawal : 0.00 Ending Balance : 40,000,000.00 Page : 1 of 1 CALIFORNIA ASSET CONFIRMATION MAN AGEMENT PROGRAM - 1OINT POWERS At;TI90R1'P\" 50 C ALIFORNIA STi28FT 2512D FLOOR - SAN FRANCISCO CALIFORNIA 9411 I FOR ACCOUNT INFORMATION: 800-729-7665 STATEMENT DATE: 12/5/2002 CITY OF PALM DESERT OPERATING FUND ACCOUNT NUMBER: 553-00 73-510 FRED WARING DRIVE PALM DESERT,CA 92260 FUND NAME: Cash Reserve Portfolio Page 1 of 1 Account Summary as of 12/5/2002 Statement Income Dividends Capital Gains Total Shares Account Date Paid This Year Paid This Year Owned Value 12/5/2002 $212,115.23 $0.00 18,283,142.270 $18,283,142.27 Transaction Summary for 12/5/2002-12/5/2002 i 4 Beginning Balance Purchases Reinvestments Redemptions Ending Balance $22,283,142.27 $0.00 $0.00 $4,000,000.00 $18,283,142.27 ';-TRADE POSTING = ,= ' 'DOT-LAR/EMOUNT =SHARE` "sFfhRES THI§ `..- ,.TOTAL:'. ,-- DATE' _ DATE TRANSACTION . 'SHARES OWNED;, .,..__ � : QFTRANSACTION PRICE TRANSACTION 12/05/02 12/05/02 Beginning Balance 22,283,142.270 12/05/02 12/05/02 , Redemption-Wire Red. $4,000,000.00- $1.00 4,000,000.000- 18,283,142.270 Message Line: N 0 ^' Z O n -O ' o.n '0 Y! O V) p � 'b ty r] f.0 r C 0 -• '0 G C i! •- G C cnutrri z , n d0 C0 - 0 0. -j `G X < y .m ' -eL Atznn d `� 9 c o' o a < - Cm . o � m 3 t 7 . r w . rn K7 o m c 0 4;Fq • - : :fn p y a Ccn ,R 0 , izsb C g .. as i-3 0 5 0- a ,rt 0 O CJ 0 , o m N d 0 O O w W to a In co a, -4 .-� A a. 0) c 0 O N N (0 (0 W O N t..1 "'� - • .Z7 O ?? 0 W -a co b W '0 W - -0 O, 0J A -a 10 b W 0 0 II> el O 06 w n- O 3 0 0 O O O O O '; C. 4n -- 'N N N N W 3. W A Q 0' 0 0 0 C 0 0 0 0 ° a N J GT to -- W A o w tp (0 -n 0 0 0 0 0 0 O O .p 0 00 0 w Ov P to W O+0 — a O y 0 0 O O O O O • O ON 00 4 N 0 0 0' O 0 d oz 5. E. 4G44. 4 4.44 (55 o 0 C 0 " 0 _ IQ < �- A O N .- w w !ea - P -- P 4 0 O r al td F. co ^ 0 4, 0 -4 -4 A 00 -- G C to U) '0 IN '0 L0 O 0 G: -On 0 0000 0 C w b A 01 A 44C A OWO b 0 0 0 0 r0 A 0 4 4 4 4 4 4 4CD 4 g 4 4 X 4 4 A _ C coO -- NJ -- iv w W -- n J 0 t-` P 0 4 r- .-+ N C 6 m C CO A P 00 0J a00 L. to SO iA iA A FS O 0 to 0 A J A T ., N 0 0000 P � -4 W P4 N .ma cZ N y e Tho. 0 000000. p - 1 n .co O �O LA 00 IQ L.) ' T 0 00< O < 00 0 0to 1 ,1 CD Oil O la b CO00 IQ Frz • Ei b ro n 91 w m _ _ �1 v `< 0 tD O .-- co N N N k N P O l O 4 O -- -+ N 0 A. w 01 O J to U O. A k° A IA m r a, N 01 0 W -4 N d a .-- '0 LA a OD 00 to .A 2 Ti - 0 D C w a- O o` w w A rn O,t.�. 0 tO A ON (-4 %V 0' a .. - -- rn w 0 0 ...I torp „, H+ ... , tel E o 00 -4 -4 0 00 to G 00 m taL 'C is W to J fl 1'0 t0 00 000 0 0 N W G m o 0000 eo # eeo a ! m ri co ^ O O O O O O Q O O p 0 0 0' 0 Q a m 9 9 0 0 0. by t mT 'O w fa "� O ~ I o. m -. 0 f4 W Y H. a p �'.. rt Q p' E -fin M % 415 4:5 n m ce B no n 0 t- 0 0 w City of Palm Desert Parkview Office Complex r Financial Statement for Fiscal Year 2002-2003 November-02 November-02 # % YTD YTD # % Budget Actual Variance Variance Budget Actual Variance Variance 1 '. Revenues r`.... : Rental $ 68,500 $ 70,513 $ 2,013 102.94% ', `m $ 342,500 $ 352,494 $ 9,994 102.92% Dividends/Interest $ - 4,375 $ 981 $ (3,394) 22.42% ,,."a";`-; $ 21,875 $ 4,952 $ (16,923) 22.64% ' Total Revenues $ 72,875 $ 71,494 $ (1,381) 98.11/° - .', )° a e. ;.. (6,929$ 364,375 $ 357,446 $ 98.10% Expenses Professional-Accounting&Auditing $ 7,000 $ 7,000 $ - 100.00% $ 35,000 $ 35,000 $ - 100 00% Professional-Consultants $ 6,000 $ 5,552 $ 448 92.54% '_;' tea $ 30,000 $ 28,363 $ 1,637 94.54% Tenant Improvements $ 2,500 $ - $ 2,500 0.00% $ 12,500 $ 11,818 $ 682 94.55% Repairs&Maintenance Building $ 8,000 $ 4,533 $ 3,467 56.66% $ 40,000 $ 37,638 $ 2,362 94.10% Repairs&Maintenance-Landscaping $ 2,300 $ - $ 2,300 0.00% $ 11,500 $ - $ 11,500 0.00% Utilities-Water $ 250 $ 107 $ 143 42.70% . " ''- $ 1,250 $ 430 $ 820 34.42% Utilities-Gas/Electric $ 7,500 $ 6,167 $ 1,333 82.22% '.:.w $ 46,000 $ 42,186 $ 3,814 91.71% Utilities-Trash $ 700 $ - $ 700 0.00% "' $ 3,500 $ 1,578 $ 1,922 45.08% Telephone $ 150 $ - $ 150 0.00% $ 750 $ 621 $ 129 82.86% Insurance $ 521 $ - $ 521 0.00% .' $ 2,603 $ - $ 2,603 0.00% Total Expenses $ 34,921 $ 23,359 $ 11,563 66.89% 7i d; $ 183,103 $ 157,635 $ 25,468 86.09% PPerrtt r.l»rmne :b. -- _.5. 37_ _ S . 4#; 3 s',1 is .1 G.P116 , `$ 1&10 _ $ L9s s11'J 18,539 11So.23°fy Equipment Replacement Reserve $ 13,000 $ 13,000 $ - 100.00% $ 65,000 $ 65,000 $ - 100.00% OWncoriet .., _ w a r f_, 249 .:.$` „ 'S$$I.,4$ VW: s ,*. ,, 4 Ff',..a$_. w., :'._S 234$1*1__.,,. $ , $- I15.944/4 2003 Investment Reportlnv Report 2003 City of Palm Desert Parkview Office Complex _t Vacancy Rate Schedule by Suite November 2002 Suite Square No. Tenant Feet 73-710 Fred Waring Drive-Two (2) Story Building • 100 Hanover 1,915 100A EPA 645 102 Bergren • 1,360 103 Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Coachella Valley Economic Partnership 928 108 Assemblyman Kelly 785 112 Senator Battin 1,406 114 Chamber of Commerce 1,478 118 Goodwill Industries 1,250 119 City/CVAG Conference Room 1,380 120 Duke Gerstal 1,750 200 CVAG 4,292 200A University of California Riverside 841 201 University of California Riverside 604 203 Property Manager is Currently Negotiating with Mountain 480 Conservency (State Agency) 205 Vacant 700 208 Alzheimer's Association 960 2003 Investment ReportVacancy Report City of Palm Desert Parkview Office Complex 5 Vacancy Rate Schedule by Suite November 2002 210 Wilson,Pesota&Pichardo 3,040 211 State of California Department of Food &Agriculture 937 217 Joe B. McMillan,. Esq. 775 220 CA.State Dept. of Agriculture 1,607 222 Cove Commission-Fire Marshal 1,900 222 CITY Storage-Vacant 1,081 Total square footage(2 story Building) 31,562 Vacancy Rate-2,261/31,562= 7.16% 73-720 Fred Waring Drive- One Story Building 100 State of California-Water Resources 15,233 102 State of California-Rehabilitation Department 4,396 Total Square Footage 19,629 Vacancy Rate-0.00% 0.00% Overall Vacancy Rate for Both Buildings: Vacancy Rate--2,261/51,191 4.42% Occupancy Rate-48,930/51,191 95.58% 2003 Investment ReportVacancy Report City of Palm Desert Desert Willow Budget Vs Actual For the month of . October 2002 Budgeted Actual Budgeted Actual . October October 5 Percentage Year to Year to $ Percentage Revenue 2002 2002 Variance Variance Date Date Variance Variance Course&Ground $ 304,405 $ 334,180 S 29,775 109.78% $ 700,181 $ 696,139 $ (4,042) 99.42% Carts $ 22,533 $ 24,900 $ 2,367 110.50% $ 73.034 $ 74,005 S 971 101.33% Golf Shop S 59,914 Si 61,768 S 1,854 103.09% $ 160,617 $ 136,574 S (24,043) 85.03% Range $ 1,900 $ , 2,710 S 810 142.63% $ 3,550 $ 4.285 S 735 120.70% Food&Beverage $ 123,635 $ 110,990 $ (12,645) 89.77% $ 296,456 $ 302,443 $ 5.987 102.02% Interest Income S 450 $ 224 S (226) 49.78% $ 3,050 $ 1,088 $ (1,962) 35.67% Total Revenues 512 8 7 534 772 21 9 5 104.2 % 1 236 888 214 4 22 354 98.19 Payroll Proshop $ 6,634 S 4,653 S 1,981 70.14% $ 7.450 $ 6,614 S 836 88.78% Can S 20,839 $ 17,213 $ 3,626 82.60% S 77,561 S 67,357 S 10.204 86.84% Course&Ground $ 139.419 $ 133,819 $ 5,600 95.98% $ 507,960 $ 504,325 S 3.635 99.28% Golf Operations $ 28,488 $ 24,814 $ 3,674 87.10% $ 97,226 $ 95.743 $ 1.483 98.47% General&Administration $ 41,204 $ 30,713 $ 10,491 74.54% $ 162,171 $ 145,745 S 16,426 89.87% Food&Beverage $ 54,552 $ 63,219 $ (8,667) 115.89% $ 185,378 S 211,707- $ (26.329) 114.20% Total Payroll 291 136 274 43 16 705 94.26°° 1 037 746 5 1 031 491 6 255 99.40% Other Expenditures ' Perimeter Landscaping S - $ - $ - 0.00% $ - $ - $ - 0.00% Proshop $ 6,305 $ 1,592 S 4,713 25.25% $ 9,675 S 4,433 $ 5,242 45.82% Proshop-COGS $ 30,668 $ 24,189 $ 6,479 78.87% S 87,970 $ 65,777 S 22,193 74.77% Cart $ 18,345 $ 12,646 $ 5,699 68.93% $ 57,330 $ 53,895 $ 3,435 94.01% Course&Ground-North Course $ 142,707 $ 42,107 $ 100,600 29.51% $ 316,973 $ 221,085 $ 95.888 69.75% Course&Ground-South Course $ 60,940 $ 63,609 $ (2,669) 104.38% $ 317,396 $ 319,428 $ (2.032) 100.64% Course&Ground-Desert Pallet-N $ 1,550 $ 958 $ 592 61.81% $ 4,980 $ 2,877 S 2.103 57.77% Course&Ground-Desert Pallet-S $ 940 S 1,156 S (216) 122.98% $ 5,680 $ 3,684 S 1.996 64.86% Golf Operations $ 7,055 8 414 $ 6,641 5.87% S 7,895 $ 5,532 $ 2,363 70.07% General&Administration $ 76,383 $ 75,538 $ 845 98.89% S 263,740 $ 277,505 S (13.765) 105.22% • Range $ 8,600 $ 7,370 S 1,230 85.70% $ 9,100 $ 7.667 8 1,433 84.25% Food&Beverage S 14,833 $ 16,249 S (1,416) 109.55% $ 48.682 $ 42,852 $ 5,830 88.02% Food&Beverage COGS S 39.296 $ 35,763 $ 3,533 91.01% $ 94,088 $ 99.517 S (5429) 105.77% Management Fee S 25,000 $ 25,000 S - 100.00% $ 100,000 S 100,000 S - 100.00% Financing/Lease $ 383 $ 1,822 $ (1,439) 475.72% $ 1,874 $ 8,685 $ (6,811) 463.45% Total Other Ex enditures 4 3 05 308 413 1 4 2 71.23°/ 1 25 83 1 212 937 112 446 91 52% Desert Willow Golf Academy • Desert Willow Golf Academy $ 11,200 $ 2,937 S (8,263) 26.22% $ 25,900 $ 20,655 $ (5.245) 79.75% COGS-Merchandise S (3,878) S (4,938) S (1,060) 127.33% S (21,139) 5 (19,708) S 1.431 93.23% Other Expenditures $ (3,630) $ (2,478) $ 1,152 68.26% $ (9,918) $ (10,033) $ (115) 101.16% S Learning Center Income(Loss) S 3,692 $ (4,479) $ (8,171) -121.32% $ (5,157) $ (9,086) $ (3,929) 176.19% ' Operating Income(Loss) $ (207,612) $ (52,551) $ 155,061 25.31% S (1,131,398) $ (1.038,980) $ 92,418 91.83% Equipment Reserve Replacement $ 71,955 $ 66,734 $ (5,221) 92.74% $ 287,820 $ 266,936 $ (20,884) 92.74% Net ncome Loss 279.567 119 285 160 282 42.67% 1 419,218 1 05 916 113 02 92.02° Snapshot of Golf Rounds Budgeted(mo) Actual(mo) Variance Variance% Budgeted(vtd) Actual(vtd) Variance Variance% Resident 1,500 1,893 393 126% 3,115 3,224 109 104% Non Resident 3,064 2,854 (210) 93% 11,081 10,935 (146) 99% Other - - - 0% - 177 177 100% Complimentary 160 285 125 178% 1,365 1,085 (280) 79% ' Total 4,724 5,032 308 107% 15,561 15,421 (140) 99%I Folder;Desert Willow 2001:Dw2003;Financial Statement Page 1 rn in O. in M InCI MO O. ‘I' MGO a� 0 W 0lb O . 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G N ^ gib Q V - 00 - c `. �, O j ^ C ` `-' 3 w C v i > Y E > 0 U ml ry - oea en r, O ,�,� _ oon , u n 91 $ .?n o a o " rN m m e c — — r . o au C4-C [pq[.,. e - F u0 C o� .. YZ PCm > a 7 f 'n O_ vei v V OO N e _ O 09 pO O - .n es p0v = N S v V= — & -- S N m b 0. _ L 74 N �- N b N etIXZ. a E. F F o y >.. s } i F g 6 g >.X -i. 0 C 0 0 ; aeX6 U ; ado` U ; a �, o` U ; a' ;XO` U Z 0 I • : a � ! ; ) \ \ i� t g | ®< ( { * f f O , _ H t ;1' ] - Ln f � �_ � ! C6 ( CO i M. % 8§ b � In U| 0. - & 21 2 _ § \ \ R Q, , . § � I | . 2] ! 0 .. | � ) co ` CO , f k i A ; ; � | , 2 f _ / \ k 2 ma - /! 2 � . |liii u .`! ! ) , a \ ; ) / - \) Desert Willow Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- October 2002 Resident 1,893 $ 85,165 $ 44.99 37.62% Non-Resident 2,854 $ 273,807 $ 95.94 56.72% Other - $ - $ - 0.00% Complimentary 285 $ 1,245 _ $ 4.37 5.66% Desert Willow Totals 5,032 • $ 360,217 $ 71.59 100.00% • Dw2003;POS AVG RD Page 9 Desert Willow Breakdown of Rounds per point of sale system FIRECLIFF COURSE- OCTOBER 2002 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 573 $ 25,785 $ 45.00 11.48% Resident Fee-Weekday 1,245 $ 56,025 $ 45.00 24.95% Resident Fee - Twilight 73 $ 3,265 $ 44.73 1.46% Total Resident 1,891 $ 85,075 $ 44.99 37.90% Non Resident Posted Weekend 288 $ 38,785 $ 134.67 5.77% Posted Weekday 445 $ 60,348 $ 135.61 8.92% IROC Member- Weekend 34 $ 3,672 $ 108.00 0.68% IROC Member- Weekday 62 $ 6,696 $ 108.00 1.24% IROC Des. PRTY - Weekday 193 $ 12,937 $ 67.03 3.87% IROC Des. PRTY - Weekend 120 $ 8,100 $ 67.50 2.40% Wholesale Weekend 168 $ 17,465 $ 103.96 3.37% Wholesale Weekday 795 $ 69,354 $ 87.24 15.93% Twilight 406 $ 30,586 $ 75.34 8.14% Fee Special Event Variable 310 : $ 23,934 $ 77.21 6.21% Total Non Resident Rounds 2,821 $ 271,877 $ 96.38 56.53% Other Rounds Junior Walking - $ - _ $ 0.00% Total Other - $ - $ - 0.00% Complimentary VIP 75 $ 100 $ 1.33 1.50% PGA Member 87 $ 950 $ 10.92 1.74% Donation 5 $ - $ - 0.10% PDHS/COD 16 $ - 0.32% Employee 95 $ - $ - 1.90% Total Complimentary 278 $ 1,050 $ 3.78 5.57% Total Round (FireCliff) 4,990 $ 358,002 $ 71.74 100.00% 1 Dw2003;POS AVG RD Page 10 Desert Willow Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- OCTOBER 2002 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 1 $ 45 $ 45.00 2.38% Resident Fee-Weekday 1 $ 45 $ 45.00 2.38% Total Resident 2 $ 90 $ 45.00 4.76% Non Resident • IROC Des. PRTY- Weekend 2 $ 135 $ 67.50 4.76% Wholesale Weekend 13 $ 835 $ 64.23 30.95% Wholesale Weekday 5 $ 320 $ 64.00 11.90% Fee Special Event Variable 13 $ 640 $ 49.23 30.95% Total Non Resident Rounds 33 $ 1,930 $ 58.48 78.57% Other Rounds • Junior Walking - $ - $ - 0.00% Total Other - $ - $ - 0.00% Complimentary —- PGA Member 7 $ 195 $ 27.86 16.67% Total Complimentary 7 $ 195 $ 27.86 16.67% Total Round (Mountainview) 42 $ 2,215 $ 52.74 100% Pag e11 D�x/1003;POS AVG RD City of Palm Desert Desert Willow Cash Reserve Analysis for the month of October 2002 Cash Reserve Analysis One Month Required Reserve $ 500,000.00 Cash on Hand $ 498,551.00 Variance- Favorable ( Unfavorable) ` $ 1,449.00) • Page 12 PalmDesert Recreation Facilities Corporation Income Statement Oct-02 Oct-02 N %a Budget Actual Variance Variance Food & Beverage Revenues $123,635 $110,990 ($12,645) 89.77% Total Revenues $123,635 $110,990 ($12,645) 89.77% Salaries $54,552 $63,219 ($8,667) 115.89% Cost of Goods Sold-F&B $39,296 $35,763 $3,533 91.01% Food & Beverage Expense $14,833 $16,249 ($1,416) 109.55% Total Expenses $108,681 $115,231 ($6,550) 106.03% Net Income (Loss) $14,954 ($4,241) ($19,195) -28.36% Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2003;PDRFC Budget Page 1 CITY OF PAH DESERT 73-510 FRED WARING DRIVE ISW� PALM DESERT, CALIFORNIA 92260-2578 0.w / e4 / TEL: 760 346-061 1 FAX: 760 340-0574 ?•.................. :n Fo@palm-dcsec.ocg NOTICE OF INTENTION TO AMEND THE APPENDIX OF THE CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT NOTICE IS HEREBY GIVEN that the City of Palm Desert(the"City")intends to amend the Appendix of its Conflict of Interest Code (the "Code") pursuant to Government Code Section 87306. The Appendix of the Code designates those employees, members, officers, and consultants who are subject to the City's Code. The City's proposed amendment changes the titles of Officials Who Manage Public Investments, changes the titles of some designated positions, includes new positions that must be designated, and deletes positions no longer used by the City. The proposed amended Appendix will be considered by the City Council on December 12, 2002, at 4:00 p.m. in the Civic Center Council Chamber, 73-510 Fred Waring Drive, Palm Desert, California. Any interested person may be present and comment at the public meeting or may submit written comments concerning the proposed amendment. Any comments or inquiries should be directed to the attention of Rachelle Klassen, City Clerk, City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, CA 92260-2578; (760)346-0611. Written comments must be submitted no later than December 12, 2002. The proposed amended Appendix may be reviewed at, and copies obtained from, the Office of the City Clerk. RA ELLE D. KLASSEN, ITY CLERK CITY OF PALM DESERT, CALIFORNIA DECEMBER 6, 2002 ��..ximox.mrnm n.. ' LAW OFFICES OF BEST BEST & KRIEGER LLP LEGISLATIVE VERSION APPENDIX CONFLICT OF INTEREST CODE OF THE CITY OF PALM DESERT (Amended December 12, 2002) EXHIBIT "A" The Mayor, Members of the City Council and Planning Commission, the City Manager, the City Attorney, the City Treasurer, and All Other City Officials who manage public investments, as defined by 2 Cal. Code of Regs. § 18701(b), are NOT'subject to-theCity'sCode but are subject to the_disclosure requirements of the Act(Government Code Section 87200 et seq.) . [Regs. § 18730(b)(3)] OFFICIALS WHO MANAGE PUBLIC INVESTMENTS It has been determined that the positions listed below are Other City Officials who manage public investments "L These positions ware listed:here for informational purposes only.: Investment and Finance Committee Investment Manager Deputy_CIty.Treasprei Financial Consultants 4-� 3/ Individuals holding one of the above-listed positions may contactrthe FPPC;for assistance or written advice regarding their,filing obligations if they believe that their position has been categorized incorrectlyr'The.FPPC makes the final determination whether a_position is covered by§:87200. RVLITCJ01643419 LAW OFFICES OF BEST BEST & KRIEGER LLP DESIGNATED POSITIONS GOVERNED BY THE CONFLICT OF INTEREST CODE DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNED Administrative Fire Captain (Fire Marshal) 2, 3, 6 Architectural Review Commission 1, 2 Art in Public Places Commission 2, 6 Assistant City Manager, Community Services 2, 3, 6 Assistant City Manager, Development Services 2, 3, 6, 7 Assistant City Manager, RDA/Housing/Economic Development 1, 2 Assistant Engineer 2, 3, 6, 7 Assistant Planner 2, 3, 6, 7 Assistant to the City Manager 5 Associate Engineer 2, 3, 6, 7 Associate Planner 2, 3, 6, 7 Associate Transportation Planner 2, 3, 6, 7 Battalion Chief 6, 7 Building and Safety Director 2, 3, 6, 7 Building Board of Appeals and Condemnation 1, 2 Building Inspector (ALL) 2, 3, 6, 7 Building Inspector Manager 2, 3, 6, 7 Building Maintenance Coordinator 6 Building Permit Specialist (ALL) 2, 3, 6, 7 RVLITCJO\643419 S LAW OFFICES OF BEST BEST & KRIEGER LLP DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNED Business Support Manager 3, 5 Business Support Technician (ALL) 6 City Attorney (not filing under Gov Code 87200) 1, 2 City Clerk / Director of Community Affair + 2.6 Civic Arts Committee 2, 3, 6 Code Compliance Officer (ALL) 2, 3, 6, 7 Code Compliance Manager 2, 3, 6, 7 Community Affairs Specialist 6 Community PublicArts Manager 2, 3, 6 Construction Contract Specialist Housing Programs Coordinator 2, 3, 6 Contracts Administrator 5 Deputy City Clerk 6 Development Manager 1, 2 Director of Community Affair's 1, 2 Director of Community Development 1, 2 Director of Housing 2, 3, 6 Director of Human Resources 6 Director of Public Works/City Engineer 2, 3, 6, 7 Director of Redevelopment 1, 2 Director of Special:Programs 1;£2 Directors, El Paseo Business Association 1, 2 RVLIT\CIO\643419 LAW OFFICES OF BEST BEST & KRIEGER LLP DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNED Engineer, Senior 2, 3, 6, 7 Engineering Manager 2, 3, 6, 7 Engineering Technician (ALL) 2, 3, 6, 7 Environmental Conservation Manager 1, 2 Finance Operations Manager 2, 3, 6 Fire Chief 2, 3, 6, 7 Housing Commission 1, 2 Housing Manager 1, 2 Human Resources Manager 6 information.Systems:Analysf Information Systems Manager 6 Information Systems Technician 6 Landscape Inspector 3, 6 Landscape Manager 3, 6 Landscape Specialist 3, 6 Maintenance Services Manager 6 Management Analyst (ALL) 6 Marketing Manager 6 Parks and Recreation Commission 1, 2 Parks and Recreation Planning Manager 1, 2 Parks and Recreation Planning Technician •2, RVLITCIO\643419 • LAW OFFICES OF BEST BEST & KRIEGER LLP DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNED Parks Maintenance Supervisor 6 Planning Manager 2, 3, 6, 7 Planning Technician 2, 3, 6, 7 Plans Examiner 2, 3, 6, 7 Police Captain 6, 7 Police Chief 6, 7 Police Lieutenant 6, 7 Project Area Committee 1, 2 Project Administrator 2, 3, 6 Promotion Committee 6 Public ArtCoordinator 6 PublicftelationsCoordinator 6 Public Safety Commission 1, 2 Public Works Inspector (ALL) 2, 3, 6, 7 Redevelopment Agency Executive Director 1, 2 Redevelopment Finance Manager 2, 3, 6 Redevelopment/Housing Construction/ Maintenance Inspector 2, 3, 6, 7 Redevelopment Manager 2, 3, 6 Rehabilitation Construction Specialist (ALL) 2, 3, 6 Rent Review Commission 1, 2 RVLITCIO\643419 LAW OFFICES OF - BEST BEST & KRIEGER LLP DESIGNATED EMPLOYEES' DISCLOSURE CATEGORIES TITLE OR FUNCTION ASSIGNED Risk Manager 6 Senior Engineer/City Surveyor 2, 3, 6, 7 Special Projects Administrator 3, 6 Streets Maintenance Supervisor 6 Supervising Plans Examiner 2, 3, 6, 7 Technology Committee 6 Traffic Signal Technician (ALL) 6 Transportation Engineer (ALL) 2, 3, 6 Visitor Information Center Manager 6 Consultanel 4/ Consultants shall be included in the list of Designated Employees and shall disclose pursuant to the broadest disclosure category in this Code subject to the following limitation: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that are limited in scope and thus is not required to fully comply with the disclosure requirements described in this Section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. RVLITTCIO\643419 LAW OFFICES OF BEST BEST & KRIEGER LLP EXHIBIT."B" DISCLOSURE CATEGORIES The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property which the Designated Employee must disclose for each disclosure category to which he or she is assigned. Category 1: All investments and business positions in, and sources of income from, business entities that do business or own real property within the jurisdiction of the City, plan to do business or own real property within the jurisdiction of the City within the next year, or have done business or owned real property within the jurisdiction of the City within the past two (2) years. Category 2: All interests in real property which is located in whole or in part within, or not more than two (2) miles outside, the jurisdiction of the City. Category 3:All investments and business positions in,and sources of income 9 ry from, business entities that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the City, plan to engage in such activities within the jurisdiction of the City within the next year, or have engaged in such activities within the jurisdiction of the City within the past two (2) years. Category 4: All investments and business positions in, and sources of income from, business entities that are banking, savings and loan, or other financial institutions. Category 5: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the City. Category 6: All investments and business positions in, and sources of income from, business entities that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the Designated Employee's Department. Category 7: All investments and business positions in, and sources of income from, business entities subject to the regulatory, permit, or licensing authority of the Designated Employee's Department, will be subject to such authority within the next year or have been subject to such authority within the past two (2) years. RVLITCIO\643419 1; November 4, 2002 CITY OF PALM DESERT SUMMARY OF SUBSTANTIVE REVISIONS TO THE PROVISIONS AND DEFINITIONS OF THE CONFLICT OF INTEREST CODE This is a brief summary of the recent revisions made to the provisions and definitions of the City's Conflict of Interest Code (the "Code"). This summary is to notify you of these changes and to aid in reviewing the revisions. Many of the recent changes are the result of the streamlining done by the FPPC. Some revisions resulted in only clerical and reorganizational changes and make no real substantive revisions. However, some of the revisions were quite substantive. These substantive statutory revisions are reflected below by section: SECTION DESCRIPTION D MANNER OF REPORTING D2 Contents of Reports of Personal Income: [Please note, as of January 1, 2003, Income will not include loans and other indebtedness incurred by an individual that are made in a lender's regular course of business.] R VPUB1C1O1643695 -1- \3/4....3 G DISQUALIFICATION: G(2) Disclosure of Disqualifying Interest: Previously there were specific procedures to be followed in the event an Official or Designated Employee had a disqualifying interest which included the disclosure in writing or on the record of the disqualifying interest. As of February 1, 2001, these procedures are no longer required. [Please note, as of January 1,2003,these procedures will change for Officials who are subject to the Act] APPENDIX Ex. A. Officials Who Manage Public Funds: The FPPC has just approved language for the notation on these officials to clarify that these officials are covered by the Act and NOT the Code. ADDENDUM -- DEFINITIONS Attached to the Code is an Addendum of certain defined terminology and phrases contained in the Act and the FPPC Regulations. It is important to review these definitions to facilitate familiarization with the Code. There have been many clerical and non-substantive technical changes due to the FPPC's ongoing Improvement Project. However,the following reflects the substantive statutory revisions made to these terms and phrases. DEFINITION DESCRIPTION 3(a) PUBLIC OFFICIAL: This term has been revised to specifically include members of committees,as well as boards and commissions. 3(b) PUBLIC OFFICIAL-CONSULTANT: Clarified to specify that Public Official Consultants include those to "participate in the making of governmental decisions" as defined. RVPUB\C1O1643695 -2- d4 ,1 4 MAKING GOVERNMENTAL DECISION: Language requiring an official with a disqualifying interest to disclose that disqualifying interest and the procedures to be followed depending on the type of official has been deleted. When an official has a disqualifying interest and abstains from making a decision in open session and remains on the dais or seated, the official is not to be counted for reaching a quorum for deliberations. Further, a disqualified official is not to be present when the decision is in closed session nor obtain/review any non-public information regarding the decision. [Please note, as of January 1, 2003, these disqualification procedures will change for Officials who are subject to the Act.] NEW 9 DOING BUSINESS IN THE JURISDICTION: This phrase is defined to mean when a person/entity has business contacts on a regular basis with a person/entity located in the jurisdiction. "Business contacts" does not include marketing via internet, telephone, television, radio or printed media. 12 INCOME: [Please note, as of January 1, 2003, Income will not include loans and other indebtedness incurred by an individual that are made in a lender's regular course of business.] NEW 13 SALARY AND REIMBURSEMENT FOR EXPENSES OR PER DIEM RECEIVED: These newly defined terms address these items as received from a government agency. Salary is any payment or accrued benefit to an official as consideration for services to the agency, including wages, consultant fees, and various benefits; Per Diem is payment to an official when required to incur increased living expenses;and Reimbursement is payment in compensation for actual expenses incurred in the course of official duties. 14 GIFTS: As of January 1, 2003, the maximum allowed value of reportable gifts from a single source will be raised to $340. RVPUB\C1O\643695 -3- 0' 1:° ---/ NEW 16 ECONOMIC INTERESTS: To clarify the economic interest of an official, this phrase has been created to include very specific definitions of interests in business entities, real property, sources of income and gifts, and personal finances (personal financial effect). 17 DIRECTLY OR INDIRECTLY INVOLVED: For determining if a decision will directly or indirectly have a reasonably foreseeable financial effect on various interests and the materiality standards to be applied for each type of interest. 17(b) DIRECTLY OR INDIRECTLY INVOLVED - INTEREST IN REAL PROPERTY: Real property is directly involved if the property is "the subject of the governmental decision" or is located within 500' of the boundaries of the subject property. "Subject of the governmental decision" is further specifically defined. The financial effect on property that is directly involved is presumed to be material. Property that is not directly involved is presumed not to be material. Please note: The previous 300'-2500' rule no longer exists. 17(c) DIRECTLY OR INDIRECTLY INVOLVED-PERSONAL FINANCES: Personal financial effect has been revised to specifically mean personal finances and an official has an interest directly involved in a governmental decision is there is any effect on his/her personal finances or of the immediate family. 18(a) MATERIALITY STANDARDS: Clarification and clerical changes for applying the FPPC regulations to determine reasonably foreseeable financial effect on an interest under the Specific and Special Rules. 19 PUBLIC GENERALLY: Clarification of this exception to disqualification under the Public Generally rule to include the 4-Step process to determine if the rule applies. NEW 20 DETERMINING IF MATERIAL FINANCIAL EFFECT IS REASONABLY FORESEEABLE: "Reasonably Foreseeable"means "substantially likely" that a materiality standard will be met as a result of the decision. RVPUB\CIO\643695 -4- ai To help make this determination the FPPC has created a list of factors to be considered. These factors are not exclusive but are included as general guidelines. BEST BEST & KRIEGER LLP RVPUB\CJ0\643695 -5- • • • ...........• ........ / i 0 i . '4 11-N ' • • { tr- � m • *•:?:,) ? yi %sec C` • '•• • • COMPREHENSIVE ANNUAL FINANCIAL REPORT • • of the • • CITY OF PALM DESERT, CALIFORNIA • For the Fiscal Year Ended • • JUNE 30, 2002 • Prepared b9 the Finance Department • City Treasurer/Director of Finance • Paul S. Gibson • Finance Operations Manager • • Jose Luis Espinoza, CPA • Finance Staff • (in alphabetical order by positions and names) • • Accountant Accounting Technician Information Systems • Anthony Hernandez Barbara Wright Technician Accounting Technician Administrative Secretary Troy Kulas • James Bounds Diana Leal Information Systems • Accounting Technician Deputy City Treasurer Technician • Ryan Gayler Thomas Jeffrey Clay Von Helf • Accounting Technician G.I.S. Technician Office Assistant II Veronica Tapia Robert Riches Cora Salas • Accounting Technician Information Systems Senior Office Assistant • Alan Townsend Manager Rob Bishop • Doug Van Gelder • • • Introductory Section • • City of Palm Desert • Comprehensive Annual Financial Report • TABLE OF CONTENTS • June 30, 2002 • • • INTRODUCTORY SECTION • • Table of Contents • Letter of Transmittal GFOA Certificate of Achievement for Excellence in Financial Reporting xii • CSMFO Certificate of Award for Outstanding Financial Reporting xiii • List of Principal Officials xiv • Organization Chart xv • • FINANCIAL SECTION • Independent Auditors' Report 1 • Management Discussion and Analysis 3 • Basic Financial Statements: • Statement of Net Assets 15 Statement of Activities 16 • Balance Sheet - Governmental Funds 18 • Reconciliation of the Balance Sheet of Governmental Funds • to the Statement of Net Assets 21 • Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds 22 • Reconciliation of the Statement of Revenues, Expenditures and • Changes in Fund Balances of Governmental Funds to the • Statement of Activities 24 • Statement of Net Assets - Proprietary Funds 25 • Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 26 • Statement of Cash Flows - Proprietary Funds 27 • Statement of Net Assets - Fiduciary Funds -Agency 28 • • Notes to Basic Financial Statements 29 • • • • • • • • • Continued • REQUIRED SUPPLEMENTARY INFORMATION: • Schedule of Revenues, Expenditures and Changes in Fund • Balance - Budget to Actual - General Fund 67 • Schedule of Revenues, Expenditures and Changes in Fund • Balance - Budget to Actual - Prop A Fire Tax Special • Revenue Fund 68 • • SUPPLEMENTARY SCHEDULES • General Fund: 69 • Schedule of Revenues and Transfers In - Budget and Actual 70 • Schedule of Expenditures and Transfers Out - Budget and Actual 72 • Other Governmental Funds - Combining Statements: • Combining Balance Sheet - Other Governmental Funds 75 • Combining Statement of Revenues, Expenditures and Changes • In Fund Balances - Other Governmental Funds 76 • Other Governmental Funds - Nonmajor Special Revenue: 77 • Combining Balance Sheet - Nonmajor 80 • Combining Statement of Revenues, Expenditures and Changes In Fund Balances - Nonmajor 86 Schedules of Revenues, Expenditures and Changes In Fund • Balance - Budget and Actual: Traffic Safety Fund 92 • Gas Tax Fund 93 • Housing Mitigation Fee Fund 94 • Community Development Block Grant Fund 95 • El Paseo Assessment District Fund 96 • City-Wide Business License Fund 97 Landscape and Lighting Districts No. 1-15 98 • • Other Governmental Funds - Nonmaior Debt Service: 99 • Combining Balance Sheet - Nonmajor 100 • Combining Statement of Revenues, Expenditures and Changes • In Fund Balances - Nonmajor 104 • Other Governmental Funds - Nonmajor Capital Projects: 109 • Combining Balance Sheet - Nonmajor 112 Combining Statement of Revenues, Expenditures and Changes • In Fund Balances - Nonmajor 116 • • 11 • • • • • Continued • Agency Funds: 121 • Combining Statement of Net Assets 122 STATISTICAL SECTION • • Revenue and Expenses Statistics • Government-Wide Expenses by Function 123 • Government-Wide Revenues 124 • Revenue and Expenditures Statistics • Graphs - Historical Revenue & Expenditures Combined General, • Special, Debt Service and Capital Project 125 • Historical Revenue and Expenditures Combined General, Special, • Debt Service and Capital Project 126 Historical General Revenue and Expenditures 128 • Historical General Fund Actual Statement of Revenues 130 41 Graph - Historical General Fund Actual Statement of Revenues 131 • Historical General Fund Actual Statement of Expenditures 132 • Graph - Historical General Fund Actual Statement of Expenditures 133 • Historical General Revenue and Expenditures Per Capita 134 Top 40 Sales Tax Generators Graph - Historical Sales Tax Trends 135 • FY 2001-02 and FY2000-01 Breakdown of Basic 1% Property • Tax Rate (Not in Redevelopment Project Area) 136 • Graph - FY 2001-02 Breakdown of Basic 1% Property Tax Rate • (Not in Redevelopment Project Area) 137 Historical Net Assessed Taxable Values City-wide 138 • Change in Taxable Value City-wide - FY 2001-02 and FY 2000-01 139 • Assessed Value by Economic Category FY 2001-02 140 • Graph - Assessed Value by Economic Category FY 2001-02 141 • Property Tax Levy and Collections 142 i Special Assessment Levy and Collections 143 FY2001-02 Top Ten Property Tax Payers 144 • Historical Net Assessed Taxable Values Citywide Graph - Assessed Valuation Growth 145 • Demographic Statistics 146 • Building Permits and Taxable Transactions 147 • Miscellaneous Statistics 148 • Bonded Debt Statistics • Computation of Legal Debt Margin 149 • Direct and Overlapping Bonded Debt 150 • Revenue Bond Coverage 151 Ratio of Annual Debt Service Expenditures for General Bonded Debt • to Total General Governmental Expenditures 152 • • • -iii- • • Continued • • Ratio of Net General Obligation Debt to Assessed Value and Net • General Obligation Debt Per Capita 153 • Special Assessment Information 154 • • Revenue Statistics Redevelopment Agency • • Project Area Statistics 155 Tax Allocation Bond Issue Information 156 • FY 2001-2002 Breakdown of Basic 1% Property Tax Levy Rates 157 OD Historical Tax Increment Summary • Redevelopment Project Area #1 - Original 158 Historical Tax Increment Summary • Redevelopment Project Area #1 - Amended 159 Historical Tax Increment Summary • Redevelopment Project Area #2 160 A Historical Tax Increment Summary Redevelopment Project Area #3 161 • Historical Tax Increment Summary P Pr oject Redevelopment Project Area #4 162 0 Historical Net Assessed Taxable Values • Redevelopment Project Area #1 - Original 163 A Change in Taxable Value • Redevelopment Project Area #1 - Original 164 • Historical Net Assessed Taxable Values Redevelopment Project Area#1 -Amended 165 • Change in Taxable Value • Redevelopment Project Area #1 -Amended 166 • Historical Net Assessed Taxable Values • Redevelopment Project Area #2 167 Change in Taxable Value i Redevelopment Project Area #2 168 • Historical Net Assessed Taxable Values • Redevelopment Project Area #3 169 • Change in Taxable Value • Redevelopment Project Area #3 170 Historical Net Assessed Taxable Values • Redevelopment Project Area #4 171 • Change in Taxable Value • Redevelopment Project Area #4 172 • • • • • -iv- • • CITY Of PflLDI DESERT • 73-510 FRED WARING DRIVE • � �' •• PALM DESERT, CALIFORNIA 92260-2578 was? F — r� ,4.,,,. TEL: 760 346-061 s • 't Y' FAX: 760 341-6372 ' nr^ info@palm-deserr.og • • • • November 25, 2002 • • Citizens of the City of Palm Desert, • Honorable Mayor and Members of the City Council • • The Comprehensive Annual Financial Report (CAFR) of the City of Palm Desert for the fiscal • year ended June 30, 2002, is submitted herewith. This report was prepared by the City's Finance • Department. Responsibility for the accuracy of the data, the completeness and fairness of the • presentation, including all disclosures, rests with the City. To the best of our knowledge and • belief,the enclosed data is accurate in all material respects, reported in a manner designed to present fairly the financial position and results of operations of the various funds and all • disclosures necessary to enable the reader to gain an understanding of the City's financial • activities have been included. • For the fiscal year ended June 30, 2002,the City once again complied with the new financial • reporting model developed by the Governmental Accounting Standards Board (GASB) Statement • 34. In addition to the customary fund statements included in the CAFR, Statement 34 requires • that the City prepare government-wide financial statements which include, a Statement of Net • Assets and a Statement of Activities. These statements are prepared using the accrual basis of • accounting,which is consistent with private business accounting, in contrast to the modified basis of accounting that is used in accounting for fund financial statements. In the financial • section of this report,the reader is provided with reconciliation statements that will take the • reader from the Fund Financial Statement to the Statements of Net Assets and Activities. • GASB Statement 34 also requires that management provide a narrative introduction, overview, • and analysis to accompany the basic financial statements in the form of Management's • Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the • MD&A and should be read in conjunction with it. The City of Palm Desert MD&A can be found • immediately following the report of the independent auditors. • • • • • • • - • . • 0 PAINTED ux.rtrtuo MPH • • • • Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council • November 25, 2002 • CAFR Structure • The format and content of this report comply with the principles and standards of accounting and • financial reporting adopted by the Governmental Accounting Standards Board. It is presented in • three sections: • Introductory Section,provides the reader with the organizational structure of the City, its • services and operating environment. This section includes a title page, table of contents, a • letter of transmittal, an organizational chart, a list of the City of Palm Desert's elected and appointed officials, and the certificates of award from the California Society of Municipal • Finance Officers and the Government Finance Officers Association of the United States • and Canada. • Financial Section, presents the City's independent auditor's report on the Basic Financial • Statements,the Management's Discussion and Analysis (MD&A), the Basic Financial • Statements,the notes to the financial statements, the Required Supplementary • Information(RSI), and the non-major supplementary schedules. • Statistical Section, provides the reader with additional historical financial data and other • information concerning the City. . • GENERAL INFORMATION ABOUT THE CITY OF PALM DESERT • • The City of Palm Desert is located in the geographical center of the Palm Springs Desert Resorts • area, also known as the Coachella Valley area, in the County of Riverside. It was incorporated • on November 26, 1973, as a General Law City; however, on November 4, 1997, the voters • overwhelmingly approved Measure LL adopting a city charter. Under the provisions of the charter,the City has full authority over its own municipal affairs which can include but are not • limited to bidding and contracting procedures, regulation of parks, libraries and other facilities, • certain franchise fees and other fees, imposition of taxes, zoning for municipal purposes, salaries • of officials and employees, municipal utilities and municipal election procedures. The City is subject only to such limitations and restrictions under state laws on matters of statewide • importance, examples of which are environmental regulations, general plan requirements, open • meeting laws and redevelopment. • The City of Palm Desert operates under a Council-Manager form of Government. The City • Council consists of five members elected by the residents of the City. Council terms are for four • years and in October of 1998, the City Council approved to shift elections every two years in • November of even-numbered years. The County of Riverside at its Board of Supervisors • meeting on November 24, 1998 approved it. Prior, elections were held every two years in • November of odd-numbered years in conjunction with the Unified School District elections. The • vi • • • • • • • • Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council • November 25, 2002 • • City Council selects the Mayor from its own members for a one-year term. The City Council • appoints the City Manager and the City Clerk. • The City operates as a"contract city"utilizing, primarily, agreements with other governmental • entities,private firms and individuals to provide services. Contracted services include: police • and fire protection through the County of Riverside, animal control, health services, legal • services and landscape maintenance. • The City provides traditional municipal and public enterprise services as shown below: • • Municipal Services Public Enterprise Services Public improvements, infrastructure and maintenance Golf Course • Public art and community promotion Office Complex • Planning, zoning,building and engineering • Housing and community development • Code enforcement and inspections Economic development and business support • Legislative, city clerk and public information • General administration and fiscal services • ECONOMIC OUTLOOK • Local Economy • • The City encompasses an area of approximately 26 square miles. As of January 1, 2002, according to data provided by the State Department of Finance, the City has a population of • 42,863. In addition to permanent residents, the City has approximately 15,000 seasonal residents • who live three to six months in the city. The City of Palm Desert has cultivated a sound foundation of general fund revenue including • sales tax, transient occupancy tax, licenses and permits,property tax and investment earnings. • The City's main sources of revenue are derived from tourism and sales tax. Tourism,retail, • culture and education are part of the City's many facets. Palm Desert is the ideal getaway • destination for families and friends. • It is home to numerous attractions which include: the Bob Hope Cultural Center/McCallum • Theater, a 1,166 seat theater which hosts some of the biggest names and well-known productions • in show business; the Living Desert Wildlife &Botanical Park, a 1,200-acre facility containing a • wide array of plants and animals from desert regions around the world; Art in Public Places, a museum without walls, features more than 100 works of art on permanent display throughout the • City; the Westfield Shopping Town Palm Desert,Desert Crossing; the Gardens, a collection of • • vii • CITY Of HMI OESERM • • • • • Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council • November 25, 2002 • fine stores, adding to the upscale shopper paradise known as El Paseo;the Desert Willow Golf • Resort, a unique and premier 36-hole golf course; the College of the Desert, a community • college; first class hotel accommodations and fine dining restaurants. • Currently, the City's labor force is as strong as the economy. The State of California • Employment Development Department Labor Market Information Division reported that the City • of Palm Desert had an unemployment rate of 3.4% compared to Riverside County, which had a • rate of 5.8%. Our balanced foundation of tourism, culture and education has strengthened the City's labor force. • • Outlook for the Future • In June 2002, the City Council approved a total of$34.32 million in funding for various capital • improvement projects for the fiscal year of 2002-2003. Projects include traffic signals, sidewalk • repairs and implementation, street widening, construction of landscaping medians where none • existed, improving drainage areas, construction of a bridge, purchase of land for future development, construction of a parking structure at the Westfield Shopping Town Palm Desert and the development of vacant land on a major thoroughfare. • • With all these projects slated for the coming fiscal year, it is evident that the City of Palm Desert • is committed to promoting tourism,business, culture and education in an effort to maintain the • high quality of life that the private and business community enjoys. • Annual and Independent Audit • • It is the policy of the City of Palm Desert to have an annual audit performed by an independent certified public accountant. The independent audit of the City's financial statements for fiscal • year ended June 30, 2002,was conducted by Lance, Soll &Lunghard, LLP as appointed by the • City Council. The auditor's unqualified opinion on the basic financial statements is included in • the Financial Section of this report. • As part of the City's annual audit engagement, the auditors review the City's internal control • structure, as well as compliance with applicable laws and regulations. The results of the City's • annual audit for fiscal year ended June 30, 2002, provided no instances of material weaknesses in • connection with the internal control structure or significant violations of applicable laws and • regulations. • As recipients of federal, state and county financial resources,the City of Palm Desert is required • to undergo an annual single audit. When applicable, information related to this single audit, • including the schedule of federal financial assistance, findings and recommendations and • auditor's reports on the internal control structure and compliance with applicable laws and • viii • • • • • • • • Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council November 25, 2002 • regulations are included in a separately issued report. For the fiscal year ended June 30, 2002, the • City is required to have a single audit performed. • Internal Accounting Controls • • Management of the City is responsible for establishing, maintaining and evaluating the City's accounting system with great consideration to the adequacy of an internal control structure. The • internal accounting controls are designed: 1)to ensure that the assets of the government are • protected against loss, theft or misuse, 2) to ensure the reliability of adequate accounting data for • the preparation of financial statements in conformity with generally accepted accounting • principles and, 3) to provide reasonable,but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the costs of control should not exceed the • benefits likely to be derived from it and that the evaluation of costs and benefits require estimates • and judgment be made by management. • The City's internal control evaluations occur within the above framework, which ensure adequate • safeguard of the City's assets and reasonable assurance of proper recording of financial • transactions. • • Budgetary Controls • In addition, the City maintains budgetary controls. The objective of these budgetary controls is • to ensure compliance with legal provisions embodied in the annual appropriated budget approved • by the City Council. Activities of the General, Special Revenue, Debt Service and Capital • Project Funds are included in the annual appropriated budget. Budgetary amounts for Debt Service, Capital Projects, and Certain Special Revenue Funds are adopted annually,however, • budgets are considered to be long-term in nature. •• The City also maintains an encumbrance accounting system of purchase orders and contracts at the fund level as a means of accomplishing budgetary control. Open encumbrances are reported as a reservation of fund balance at the end of the fiscal year. Purchase orders are reviewed to • ensure that funds are available and that requests are properly authorized prior to being released to • vendors. • The adopted budget for fiscal year 2001-2002 was prepared in accordance with accounting • principles generally accepted in the United States of America. As reflected in the statements and • schedules included in the financial section of this report, the City continues to meet its • responsibility for sound financial management. • • • • ix • CITY Of PRERI RESERI • • • • • Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council • November 25, 2002 Cash Management • Cash resources of the individual funds are combined to form a pool of cash and investments. • Cash which maybe temporarily idle during the year, is invested in various instruments consistent • with the City's and Redevelopment Agency's(the "Agency") adopted investment policy, with the • majority of the maturities under one year. The investment policy authorizes investments in • United States treasury bills, bonds and notes, obligations issued by the United States Government • Agencies,bankers acceptances, commercial paper, medium term notes, certificates of deposit, demand accounts and in Local Agency Investment Fund. The City and Agency's portfolio at • June 30, 2002 is $221,581,736. • • The City and Agency continue to maintain an investment policy,which is submitted annually to the City Council. Monthly Treasurer's Reports reporting investment activities and portfolio • balances are also submitted to the Investment/Finance Committee and forwarded to the City • Council. The primary goal of the City's and Agency's investment policy is to invest public funds • in a manner which will provide the highest investment return with the maximum security,while • meeting the daily cash flow demands of the City and Agency, and conforming to all State and local statutes governing the investment of public funds. Accordingly, deposits are either insured • by federal depository insurance or collateralized. Criteria for selecting investments and the order • of priority are safety, liquidity and yield. At all times,there was compliance with the City and • Agency's investment policy. • Risk Management • • The City joined the California Joint Powers Insurance Authority(the"Authority") on September • 1, 1995 to arrange and administer programs of insurance for the pooling of self-insured losses • and to purchase excess insurance coverage. Additionally, the City has all the risk property insurance with Robert Driver, an insurance company sub-contracted by the Authority to provide • replacement cost coverage with varying deductibles as scheduled. The City's Workers • Compensation program is covered both under the Public Entity Risk Management Authority for • old claims and the Authority for new claims. • The Authority is a pool of cities and organized under a Joint Powers Agreement pursuant to the • California Government Code. Each member city has a representative on the Board of Directors • with officers of the Authority being elected annually by the Board Members. Annual deposits are • paid by member cities and adjusted retrospectively to cover costs. Each member city self-insures for the first$20,000 of each loss. Participating cities then share in claims from $20,000 to • $500,000 per loss occurrence. In addition, various risk control techniques, including annual • safety audits and employee accident prevention training,have been implemented to minimize • loss. All claims are investigated, valued, reserved, defended and/or settled in accordance with generally accepted insurance industry practices. There are no known existing claims,which • • • • • • • • I . • Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council November 25, 2002 • • would exceed the City's applicable coverage. • Certificates of Awards for Outstanding Financial Reporting • • The Government Finance Officers Association of the United States and Canada(GFOA) and the • California Society of Municipal Finance Officers (CSMFO)have awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Palm Desert for its • comprehensive annual financial report for the fiscal year ended June 30, 2001. This was the fifth • consecutive year that the government has achieved this prestigious award. In order to be awarded • a Certificate of Achievement, a government must publish an easily readable and efficiently • organized comprehensive annual financial report. This report must satisfy both general accepted accounting principles and applicable legal requirements. • • A Certificate of Achievement is valid for a period of one year only. We believe that our current • comprehensive annual financial report continues to meet the Certificate of Achievement • Program's requirements and we are submitting it to both the GFOA and CSMFO to determine its eligibility for another certificate. • • Acknowledgments The preparation of this report could not have been accomplished without the efficient and • dedicated services of the entire staff of the finance department whose names are listed • individually in the title page. Due credit is given to the Mayor and the City Council Members for • their interest and support in planning and conducting the operations of our City in a responsible • and progressive manner. Recognition is also given to all employees of the City of Palm Desert who continue to serve our community with commitment and dedication throughout the year, and • to the citizens of Palm Desert our greatest appreciation for your continued support, input and • guidance in helping us serve you better, thus preserving our City's quality of life and reputation • for innovation and leadership! • Respectfully submitted, • • • aa/10:._ • Carlos L. a Paul S.Gibson • City Manager Director of Finance/City Treasurer •• JLE:jle • • • CITY OT PRIM DESERT xi • I . • P1111110 ON IMMO1MMEI • • • • • • Certificate of • Achievement • r • fo r Excellence • in Financial • • Reporting • • Presented to • • City of Palm Desert, • California • • • For its Comprehensive Annual • Financial Report • for the Fiscal Year Ended • June 30, 2001 • A Certificate of Achievement for Excellence in Financial • Reporting is presented by the Government Finance Officers Association of the United States and Canada to • government units and public employee retirement systems whose comprehensive annual financial • reports(CAFRs) achieve the highest • standards in government accounting and financial reporting. • • • et!Oftes 'rap* • _ a10 President • hin," • ye SEAL 1, mom President rwet Executive Director • • • • • xii • • • • • • • � • • • • • �� CaliforniaSociet o I • Calf p f. unicipal finance Officers • • • Certificate of Award • Outstanding Financial Reporting 2000-2001 • Presented to the • City of Palm Desert „o,i i;vi���., ' This certificate is issued in recognition of meeting professional standards and criteria in reporting • which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared. • February 20, 2002 • • v Ara-& Chair,PnhuiovJ&Technical Standards Committee • • Dedicated to Excellence in Municipal Financial Management • • • • • • • • • • I • • xiii • • • • • CITY OF PALM DESERT • List of Principal Officials • as of June 30, 2002 • City Council - Manager Form of Government • • • CITY COUNCIL • • RICHARD S. KELLY • Mayor • JEAN M. BENSON • Mayor Pro-Tempore • • BUFORD A. CRITES JIM FERGUSON ROBERT A. SPIEGEL • Council Member Council Member Council Member • • • • CITY ADMINISTRATION • • CARLOS L. ORTEGA • City Manager • • • City Attorney - Best, Best F? Krieger David J. Erwin • Assistant City Manager for Community Services/City Clerk Sheila S. Gilligan • Assistant City Manager for Development Services Richard J. Folkers • Assistant City Manager for Redevelopment Agency/Housing Justin McCarthy Director of Community Development Phil A. Drell • Director of Finance/City Treasurer Paul S. Gibson • • REDEVELOPMENT AGENCY • • Executive Director • CARLOS L. ORTEGA • • • • • xiv • • 0 Hz 1 s 9t II g3^ i 0 g E limos E• E u `E U P 8 _eri° ie.• E E °a n f: $Ei}p •ac E 2e fldiI w i¢e -UeGgC :mO •-to " °Ots e2821 w i s° _3 ti�x oE Z' eE .vefg mF e G pp e—eg 273.a. m¢¢m L'i !i 1w 41 € u . 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W 1 1 I • 1 • • • • _ �Htlia • • a i _ 1I Z O • Iitili z 1 I I I 1 I I I • • 3 --- c 1 II • o lhdillili • 1 1 1 1 1 1 1 1 1 1 1 • s E a • ALT a 8 1 jib a I h I J 1 1 1 1 1 , 1 1 1 1 1 , 1 1 , • 0 a it • I L tgm • IF ' H a n : 1 . ! ! a $� i � • 4I1UI pp b + A y i Gt O y!tta 3 ,21 '^ t i II I I i _S �I t I •• C -E b a c � 1 1 1 1 I • xvi • Financial Section • • • 203 North Brea Boulevard Lance Suite 203 _k • SOH & Brea, CA92821-4056 � Q � Lunghard (714) 672-0022 1 !l U • LLP Fax (714) 672-0331 41 CERTIFIED PUBLIC ACCOUNTANTS W'Aw•Islcpas.com E4 mailVER ? i 1929.1999• Brandon W.Burrows • Donald L.Parker. Michael K.Chu David E.Hale• A Probssionrl Carporspon Donald G.Slater• Richard K.Kikuchi Retired• Robert C.Lance 191A 1991 • Richard C.Soil Fred J.Lunghard,Jr. 193L1999 • • INDEPENDENT AUDITORS' REPORT • To the Honorable Mayor and Members of the City Council The City of Palm Desert, California • • We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund • information of the City of Palm Desert, California, as of and for the year ended June 30, 2002, which collectively comprise the City's basic financial statements as listed in the table of contents. These • financial statements are the responsibility of the City of Palm Desert's management. Our responsibility is • to express opinions on these financial statements based on our audit. • We conducted our audit in accordance with auditing standards generally accepted in the United States of • America and the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Comptroller General of the United States. Those standards require that we • plan and perform the audit to obtain reasonable assurance about whether the financial statements 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 financial • statement presentation. We believe that our audit provides a reasonable basis for our opinions. • In our opinion, the financial statements referred to above present fairly, in all material respects, the • respective financial position of the governmental activities, the business-type activities, and the aggregate discreetly presented component units, each major fund and the aggregate remaining fund information of • the City of Palm Desert, California, as of June 30, 2002, and the respective changes in financial position • and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. • • In accordance with Governmental Auditing Standards, we have also issued our report dated September 5, 2002 on our consideration of the City of Palm Desert's internal control over financial • reporting and our tests of its compliance with certain laws,regulations,contracts and grants. • • • • • • MEMBER• CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • • • anghard ce • Lance Soil s LU •CERTIFIEDCERTIFIEDPUBLIC9l/C ACCOUNTANTS • To the Honorable Mayor and Members of the City Council The City of Palm Desert, California • • The accompanying management's discussion and analysis and budgetary comparison information on • pages 3 through 14 and 67 through 68 are not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied • certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit • the information and express no opinion on it. • Our audit was conducted for the purpose of forming opinions on the financial statements that collectively • comprise the City of Palm Desert% basic financial statements. The accompanying introductory section, • the combining and individual fund statements, schedules and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying • combining and individual nonmajor fund financial statements have been subjected to the auditing • procedures applied in the audit of the basic financial statements and in our opinion are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The accompanying introductory section and statistical tables have not been subjected to the auditing procedures applied in • the audit of the basic financial statements and accordingly,we express no opinion on them. Ceara, afhe 5V-44144,ge • • • September 5, 2002 • • • • • • • • • • • • • • • • • • • • • • • • • MANAGEMENT'S DISCUSSION AND ANALYSIS • • Our discussion and analysis of the City of Palm Desert financial performance for the fiscal year ended • June 30, 2002 provides a comparison of current year to prior year ending results based on the • government-wide statements, an analysis on the City's overall financial position and results of • operations to assist users in evaluating the City's financial position, a discussion of significant changes that occurred in funds and significant budget variances. In addition, it describes the activities during • the year for capital assets and long-term debt. We end our discussion and analysis with a description of • currently known facts, decisions, and conditions that are expected to have a significant effect on the • financial position or results of operations. Please read it in conjunction with the transmittal letter and • the City's financial statements. • FINANCIAL HIGHLIGHTS • The City's governmental activities net assets increased $13.40 million, or 6.7 percent, while net assets of the business-type activities decreased by$.54 million, or 1 percent. • • During the year, the City had revenues that were $13.40 million more than the $91.85 million • expenses recorded by the City in its governmental activities. Compared to the prior year, • revenues were $25.54 million greater than its expenses. • In the City's business-type activities, expenses were $.54 million more than the $6.62 million • generated in green fees, merchandise sales, rental income, capital contributions and other • revenues. Compared to the prior year, the business-type activities losses were $1.01 million. • • The City's governmental activities program revenues and general revenues decreased $1.34 • million, or 1.2 percent from the prior year, while program expenses increased $10.8 million, or 13.3 percent. • • Business-type activities revenues decreased by $.75 million from $7.37 million to $6.62 • million. This was due to the lower rounds played at Desert Willow Golf Course. Expenses • increased $1.22 million from$8.38 million to $7.16 million. • The revenues available for expenditure were $.93 million more than budgeted for in the • General Fund. The City kept expenditures within spending limits by$4.48 million. • • USING THIS ANNUAL REPORT • This annual report consists of a series of financial statements. The Statement of Net Assets and • Statement of Activities (on pages 15, 16 and 17) provide information about the activities of the City as • a whole and present a long-term view of the City's finances. Fund financial statements start on page • 18. For governmental activities, these fund statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the • City's operation in more detail than the government-wide statements by providing information about • the City's most significant funds and other funds. The remaining fiduciary fund statement provides • financial information about activities for which the City acts solely as a trustee or agent for the benefit • of those outside of the government. • • • • -3 • • • • • REPORTING THE CITY AS A WHOLE • The Statement of Net Assets and the Statement of Activities: • ' Our analysis of the City as a whole begins on page 15. One of the most important question asked about • the City's finances is, "Is the City as a whole better off or worse off as a result of the year's activities?" • The Statement of Net Assets and the Statement of Activities report information about the City as a • whole and about its activities in a way that answers this question. These statements include all assets • and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used • by most private-sector companies. All of the current year's revenues and expenses are taken into • account regardless of when cash is received or paid. • These two statements report the City's net assets and changes. Net assets are the difference between • assets and liabilities, which is one way to measure the City's financial health, or financial position. • Over time, increases or decreases in the City's net assets are an indication of whether its financial health is improving or deteriorating. You will need to consider other non-financial factors, however, • such as changes in the economy due to external factors that will cause a decrease in consumer • spending. • In the statement of Net Assets and the Statement of Activities, we separate the City Activities as • follows: • Governmental activities — Most of the City's basic services are reported in this category, including the general administration (city manager, city clerk, finance, etc.), police and fire protection, public • works, parks, recreation and culture departments. Property taxes, sales tax, transient occupancy tax, • user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, • and other revenues finance these activities. • Business-type activities — The City charges a fee to customers to cover all or most of the cost of • certain services it provides. The City's municipal golf course, Desert Willow, and the City's Office • Complex,Parkview, activities are reported in this category. • Component unit activities—The City includes one separate legal entity in its report—the Palm Desert • Recreation Facility Corporation. Although legally separate, this "component unit"is important because • the City is financially accountable for it. • REPORTING THE CITY'S MOST SIGNIFICANT FUNDS • • Fund Financial Statements: • • The fund financial statements provide detailed information about the most significant funds and other funds —not the City as a whole. Some funds are required to be established by State law and by bond • covenants. However, management established many other funds to help it control and manage money • for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, • and other resources. The City's two types of funds are governmental and proprietary. • • -4- • • • • • • • Governmental funds — Most of the City's basic services are reported in governmental funds, which • focus on how money flows in and out of those funds and the balances left at year-end that are available • for spending. These funds are reported using an accounting method called modified accrual • accounting, which measures cash and all other financial assets that can readily be converted to cash. • The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether • there are more or fewer financial resources that can be spent in the near future to finance the City's • programs. The differences of results in the Governmental Fund financial statements to those in the • Government-Wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. • • Proprietary funds — When the City charges customers for the services it provides, these services are • generally reported in proprietary funds. Proprietary funds are reported in the same way that all • activities are reported in the Statement of Net Assets and the Statement of Activities. In fact, the City's enterprise funds are the same as the business-type activities we report in the government-wide • statements but provide more detail and additional information such as a statement of cash flows. • • THE CITY AS TRUSTEE • Reporting the City's Fiduciary Responsibilities: • • The City is the trustee, or fiduciary, for certain funds held on behalf of developers and its employees • retiree service stipend fund. The City's fiduciary activities are reported in separate Statements of Fiduciary Net Assets. We exclude these activities from the City's other financial statements because • the City cannot use these assets to finance its operations. The City is responsible for ensuring that the • assets reported in these funds are used for their intended purposes. • THE CITY AS A WHOLE • • The City's combined net assets increased $13.40 million from $197.78 million to $211.18 million. A • separate review of the net change in the governmental and business-type activities depicts two different • stories. Our analysis below focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City's governmental and business-type activities. • • • • • • • • • • • • -5- • • • . • TABLE 1 • NET ASSLIN • (IN MILLIONS) • As of June 30,2002 and 2001 • • Gm,mirutal Business Type • Activities Activities Total • 2002 2001 2002 2001 2002 2001 • Current and restricted assets $ 287.10 $ 269.21 $ 2.35 $ 2.01 $ 289.45 $ 271.22 • Capital assets 210.58 199.28 64.19 65.07 274.77 264.35 • • TOTAL ASSETS 497.68 468.49 66.54 67.08 564.22 535.57 • Long-term liabilities • outstanding 258.71 249.18 0.11 0.37 258.82 249.55 0 Other liabilities 27.79 21.53 0.85 0.59 28.64 22.12 • lUlALLIABILrr1ES 286.50 270.71 0.96 0.96 287.46 271.67 • • Net assets: • Invested in capital assets,net of • related debt 44.18 42.96 64.09 64.70 108.27 107.66 • Restricted 78.73 74.81 - - 78.73 74.81 • Unrestricted 88.27 80.01 1.49 1.42 89.76 81.43 • lUTAL NET • ASSETS $ 211.18 $ 197.78 $ 65.58 $ 66.12 $ 276.76 $ 263.90 • • Compared to the prior year,net assets of the City's governmental activities increased by 6.7 percent, or • $13.40 million. The City's Net Assets is made-up of three components: Investment in Capital Assets, • Net of Related Debt, Restricted Net Assets and Unrestricted Net Assets. Unrestricted net assets, the part of net assets that can be used to finance day-to-day operations, accounted for the majority change • in the City's governmental activities net assets. It increased from $80.01 million to $88.27 million, or • 10.3 percent. This is an indication that the City's financial position improved from the prior year. The • City as a whole now has $8.26 million more unrestricted funds that can be used to finance its • operations. • • The increase in the City's unrestricted net assets is a result of the City's ability to manage its • .• operations so its expenses do not exceed its revenues. Even though sales tax, transient occupancy tax and investment earnings, three of the City's highest revenue sources, decreased $6.10 million, due to • the nationwide slow down in the economy, the City's popularity and strong economic structure in retail, tourism and commercial development assisted in minimizing the financial impact on the overall • position of the City. • • -6- • • • • • • • The net assets of the business-type activities decreased by $.54 million, or 1 percent. The decrease is • primarily due to depreciation of the business-type activities capital assets and lower golf rounds. • The major change in the City's governmental activities total assets was the increase in cash and • investments. The increase of $6.45 million in tax increment and decrease in project costs were the • main factors in the increase of cash and investments. 'Capital assets, which include land, building and improvements, equipment, and infrastructure, increased by $11.30 million, or 5.6 percent. Further • discussion on capital assets will be found later in this Management's Discussion and Analysis. • • Total liabilities increased by $15.79 million, the majority of the increase is due to the issuing of new debt. In other liabilities, an increase of$5.39 million in amounts due pass-through agreements was part• of the total increase of$6.26 million. This was due to the increase in the Redevelopment Agency's tax • increment. • TABLE 2 • CHANGES IN NET ASSETS • (IN MILLIONS) • As of June 30,2002 and 2001 • • Governmental Business-Type • Activities Activities Total 2002 2001 2002 2001 2002 2001 • REVENUES: • Program Revenues: Charges for services $ 10.42 $ 10.29 $ 6.62 $ 6.83 $ 17.04 $ 17.12. • Operating grants and contributions 5.57 4.61 - - 5.57 4.61 • Capital grants and • contributions 4.44 5.30 - 0.54 4.44 5.84 General Revenues: • Property taxes 3.25 3.06 - - 3.25 3.06 Tax increment 45.29 38.84 - - 45.29 38.84• Sales tax 13.03 13.62 13.03 13.62 • Transient occupancy tax 7.04 7.39 - - 7.04 7.39 Other taxes 4.65 4.07 - - 4.65 4.07 • Other revenues 5.34 8.03 - - 5.34 8.03 • Investment earnings 6.22 - 11.38 - - 6.22 11.38 TOTAL REVENUES 105.25 106.59 6.62 7.37 111.87 113.96 • EXPENSES: i • General government 20.83 18.63 - - 20.83 18.63 • Public safety 14.55 12.74 - - 14.55 12.74 Public works 19.69 15.60 19.69 15.60 • Parks,recreation and culture 3.78 3.54 - - 3.78 3.54 Payments to other agencies 17.73 14.32 - - 17.73 14.32• Interest on long-term debt 15.27 16.22 15.27 16.22 • Golf Course-Desert Willow - - 6.63 6.90 6.63 6.90 Office Complex-Parkview 0.53 1.48 1.48 • TOTAL EXPENSES 91.85 81.05 7.16 8.38 99.01 89.43 • INCREASE (DECREASE) • IN NET ASSETS 13.40 25.54 (0.54) (1.01) 12.86 24.53 • • -7 • • • • • Governmental Activities • • Total revenue decreased from $106.59 million to $105.25 million, a 1.3 percent decrease. Contributors • to the decrease were sales tax, transient occupancy tax and investment earnings. Factors that either • increased or decreased revenues are as follows: • • Increase in property values in project areas 1, 2 and 4. The increase in property value provided • additional tax increment, • • Decrease in sales tax, which is due to the nationwide slow down in the economy, • • Decrease in transient occupancy tax due to a reduction in tourism, as a result of the terrorist • attack, and • • Decrease in investment earnings due to lower market returns. • Total expenses increased from $81.05 million to $91.85 million, a 13.32 percent increase. A major • factor in this increase was the cost. of the public work-governmental activity and an increase in • payment to other agencies. This was due to the cost of construction on private development at the Canyons at Bighorn. The City issued a special assessment bond on behalf of the developer for capital • improvements. The City is not responsible to maintain the capital improvements that were paid for by • this bond. Payment to other agencies increased due to the increase in tax increment. The • Redevelopment Agency has several agreements with other entities whereby the Agency is required to pay the other entities a portion of the tax increment. The following schedule represents the net cost of • providing services: • • Governmental Activities Net(Expense)Revenue • (In Millions) • 2002 2001 • General Government ($13.81) ($11.45) • Public Safety (11.38) (9.69) Public Works (12.45) (8.20) • Parks,recreation and culture (.77) (.97) • Payment to other agencies (17.74) (14.32) • Interest on long-term debt (15.27) (16.22) Total ($71.42) ($60.85) • • Business-type Activities • Business-type activities revenues decreased $.75 million, a 10.12 percent decline. Fewer golf rounds • played, and industry pressure to lower the green fees charges were the major reasons for the decline in • revenue for the business-type activities. • • Operating expenses for the business-type activities decreased by $1.22 million or 14.55 percent. The main factor for the decrease was a prior year contribution of $1 million from the Office Complex • (Parkview)to the City for park maintenance. • • • • -8- • • • • • • • THE CITY'S FUNDS • On page 18, the governmental funds balance sheet is shown. The combined fund balance of$217.21 • million increased from $200.63 million, or 8.26 percent. This total includes the general fund balance of • $51.33 million. It increased by 3.96 million from the prior year. The City's general fund balance has reserved $27.51 million for advances, encumbrances, loans, debt service, etc. More detailed • information about the combined fund balance reserves is presented in Note 12 to the financial • statements. • • Other major funds balance changes are noted below: • • For the Prop A Fire Tax fund, fund balance increased due to the transfer from the City. • • For the Redevelopment Agency Financing Authority Debt Service fund, fund balance decreased due to the transfer of cash to the capital projects fund, and refunding debt. •' • The Redevelopment Agency Debt Service funds, fund balance increased as a result of an • increase in tax increment. The development in project area#1, project area#2, and project area • #4 increased the tax increment the Agency received. • • • The Redevelopment Agency Capital Projects funds, fund balance increase was due to projects • not beginning construction, results of various delays, and issuing of new debt. • More detailed information on the fund financial statements balances is presented in the Notes to the • financial statements. • General Fund Budgetary Highlights • • During the year, with the recommendation from the City's staff, the City Council revised the City • budget several times. Adjustments were made on a monthly basis as the City's staff requested • additional appropriations to cover the cost of projects that either had change orders for additional work, or the estimated cost at the beginning of the project was underestimated. At mid-year, adjustments • were made as department heads requested increases or decreases to their budgets to maintain their • current level of.services. At year-end, budgets were adjusted for unanticipated expenditures. All • amendments that either increase or decrease appropriations are approved by the City Council. • For the City's general fund, actual ending revenues of$36.16 million were $.94 million more than the • final budgeted revenues of$35.22 million. The majority of the variance was in property tax revenues, • which was budgeted to be $2.44 million; however, the actual was $2.77 million. The other significant • variance was in motor vehicle in-lieu fees. The City budgeted $2.38 million, and the actual was $2.52 million. • • • • • • • • • -9 • • • • • • The general fund actual ending expenditures of $32.51 million were $4.48 million less than the final • budget of$36.99 million. There were significant changes in the original budget compared to the final budget during the year. The original expenditure budget was $33.50 million compared to the final • budget of$36.99 million, a $3.49 million increase. The major changes are as follows; • • Increase of$1.45 million for street resurfacing was due to the re-appropriations of prior year encumbrances to the fiscal year ending June 30, 2002, and • Under the general government- departmental category there was an increase of$1.44 million. • Community promotion increased $.24 million due to increase in citywide promotions and • conununity events. • Even though, the City's general fund appropriations increased by $3.49 million to $36.99 million, • final expenditures were only$32.51 million. The City's general fund still had a net increase in fund • balance of$3.65 million. • CAPITAL ASSET AND DEBT ADMINISTRATION • • Capital Assets • • At the end of 2002, the City had $274.77 million invested in a broad range of capital assets, including • land, streets, bridges, drainage systems, traffic lights, parks, buildings, art work, vehicles and • equipment. (See Table 3). This amount represents a net increase (including additions and deductions) I • of$12.05 million, or 4.5 percent over last year. • TABLE 3 • CAPITAL ASSETS AT YEAR-END • (NET OF DEPRECIATION,IN MILLIONS) • For the years ended June 30,2002 and 2001 • • Governmental Business Type • Activities Activities Total • 2002 2001 2002 2001 2002 2001 • Land $ 65.12 $ 60.92 $ 52.17 $ 52.17 $ 117.29 $ 113.09 • Construction in progress 10.33 3.73 - - 10.33 3.73 • Buildings and improvements 63.18 64.48 10.60 11.01 73.78 75.49 • Equipment 2.24 2.09 1.42 1.89 3.66 3.98 Infrastructure 69.71 66.43 - - 69.71 66.43 • TOTALS $ 210.58 $ 197.65 $ 64.19 $ 65.07 . $ 274.77 $ 262.72 • • • • • • • -10- • • • • • • • This year's major additions included(in millions): • Property acquisition,relocation cost, and construction along Fred Waring Drive • for the widening of the street to three lanes each way, funding coming • from the City's Capital Project Fund, $4.69 • • Various street improvement projects (widening, new construction, improvements), paid by various special revenue funds, $2.98 • Purchase of open space paid by the Redevelopment Agency, $1.78 • Property acquisition, relocation cost, and demolition along Portola Avenue for • the widening of the street, funding coming from the Measure A Fund $ .67 Construction of a beginner Skate Park and Community Gardens, funding • coming from the City's park and special revenue funds, and $ .96 • Three new traffic lights,paid for by the City' special revenue Measure A Fund $ .44 • $11.52 • The City's fiscal year 2003 capital budget calls for it to spend $34.32 million plus continuing project of • $75.52 million for capital projects. The majority being the construction of Fred Waring Drive, land • development to include a visitor center, construction of a regional park, construction of low-income • family housing, and the improvements of various streets in the City. The City's Redevelopment Agency will issue a bond to fund some of the capital projects proposed, other projects will be funded • with existing bond proceeds or funds that have been designated by an outside party for specific use. • More detailed information about the City's capital assets is presented in Note 1D and Note 5 to the • financial statements. • Debt • • At year-end, the City's governmental activities had $258.71 million in bonds, notes, contracts, and • compensated absences verses $249.18 million last year, an increase of $9.53 million, or 3.8 percent as shown in Table 4. • • • • • • • • • • • • • • • -11- • • • . • • TABLE 4 • • OUTSTANDING DEBT, AT YEAR-END (IN MILLIONS) • • For the years ended June 30, 2002 and 2001 • • Governmental Business Type • Activities Activities Total • 2002 2001 2002 2001 2002 2001 . • Compensated absences $ 1.41 $ 1.28 $ - $ - $ 1.41 $ 1.28 • Special assessments debt with • governmental commitment 43.14 48.42 - - 43.14 48.42 • Notes payable 0.85 0.90 - - 0.85 0.90 Contract and leases payable 5.32 5.56 0.11 0.37 5.43 5.93 • Revenue bonds and notes • (backed by specific tax • and fee revenues) 207.99 193.02 - - 207.99 193.02 • TOTALS $ 258.71 $ 249.18 $ 0.11 $ 0.37 $ 258.82 $ 249.55 • • Two new bonds were issued during the fiscal year ended June 30, 2002. The City was able to meet its current year debt obligation in a timely manner. Debts issued in the prior year have been used to • finance various capital projects. An example of this would be the purchase of land, and construction of • the City's golf course. As part of the bond covenant, the City can call bonds early if prepayments were • made during the year. For the fiscal year ending June 30, 2002, the City called $2.97 million. In an • effort to increase its cash flow for additional capital projects, the City's Redevelopment Agency was able to refund an existing bond and lower their annual principal and interest payment. • • The City's business-type activities debt decreased $.26 million from $.37 million to $.11million. Debt • in the business-type activities is for capital leasing of equipment. The City's golf course used leasing • as an alternative to purchasing maintenance equipment to maintain a cash flow to operate the day-to- day activities. In the current year, the City has changed its method of fmancing equipment from leasing • to purchasing. More detailed information about the City's long-term liabilities is presented in Note 6 to • the financial statements. • • • • • • • • • -12- • • • • • ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS • • In preparing the budget for 2003, management looked at the following economic factors: • • • Energy and fuel cost: Currently California is still in an energy crisis, the City does not know the • extent of impact that the energy crisis will have on sales or tourism, which are the two largest revenue sources for the City. The City's 2003 budget reflects the increase in energy and fuel. • • Sales tax bill: Possible legislation that would reallocate sales tax revenue. The idea is that cities • would receive a base amount and the remaining portion would be allocated based on the City's • populations. Since sales tax is the City's highest revenue source at $13.02 million, the fiscal impact on the current level of service would have a direct effect if sales tax legislation passes. • • In prior years, the City had unallocated reserves in its capital projects and special revenue • funds. In the five-year capital improvement program, all restricted capital funds have been • allocated to various projects. Any additional projects would require a transfer from the general fund, which would mean that the City's unobligated general fund reserve would start to • decrease. • • The loss of sales tax revenue due to E-Commerce sales. Revenue losses due to E-Commerce • sales also have a direct effect on current levels of services. Sales that were once accounted for • in local merchants sales are now tax-free. • Motor Vehicles License fee is currently being back filled by the State's General Fund, which • could be eliminated in the State's budget process. This would cause a reduction in General • Fund revenues for the City. • Compared to prior year's budget, the City's general fund expenditures are projected to increase by • $1.77 million. Staff salaries and benefits increased due to the annual CPI increase of 2.8 percent, an • average increase of 22.03 percent in health care premiums, additional staffing, and funding of the • unfunded retiree health benefits. In addition, the City's contracts with the Riverside County Sheriffs • Department for police services and the contract with the Fire Department for fire protection increased. All other levels of support remained virtually unchanged. • • The City continues to grow with new hotels, commercial and residential development, construction of • a four-year university, street improvements, park construction, and various other projects. The 2003 budget is a reflection of the City's commitment to the residents of Palm Desert. The City's • conservative approach has provided for a consistent high level of services. The City has made a • commitment to allocate resources for public safety, cultural/social programs, and infrastructure • improvements. A copy of the City's 2002-2003 financial plan can be obtained by contacting the City • finance department(See below). • • • • • • • • • -13- • • • • • • CONTACTING THE CITY'S FINANCIAL MANAGEMENT • This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors • with a general overview of the City's finances and to show the City's accountability for the money it • receives. If you have questions about this report or need additional financial information, contact the • City's Finance Department, at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, • California 92260-2578, or(760) 346-0611. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • -14- • • Governmental-wide Financial Statements • • • CITY OF PALM DESERT Exhibit A • • STATEMENT OF NET ASSETS • June 30,2002 • • Primary Government • Governmental Business-Type Component • Activities Activities Total Unit ASSETS: • Cash and investments $ 159,440,564 $ 2,381,469 $ 161,822,033 $ 41,756 • Receivables 20,295,952 282,546 20,578,498 8,119 Internal balances 654,434 (654,434) - - • Due from component unit 480,000 17,338 497,338 - • Assessments receivable 40,805,257 - 40,805,257 - • Property held for resale 210,473 - 210,473 - Inventory 25,970 257,252 283,222 27,225 • Prepaid items and deposits 1,005,125 34,319 1,039,444 3,377 • Start-up costs - 27,700 27,700 - Deferred charges 2,036,902 - 2,036,902 • Restricted net assets: • Cash with fiscal agent-restricted 62,141,172 - 62,141,172 - • Capital assets(net of • accumulated depreciation) 210,578,572 64,191,936 274,770,508 6,030 • TOTAL ASSETS $ 497,674,421 $ 66,538,126 $ 564,212,547 $ 86,507 • • LIABILITIES: • Accounts payable $ 7,215,548 $ 439,182 $ 7,654,730 $ 80,095 Accrued liabilities 403,241 322,321 725,562 • Interest payable 3,650,101 - 3,650,101 - • Deposits payable 392,357 21,338 413,695 - Due to primary government - 497,338 • Deferred revenue 83,663 68,623 152,286 17,100 • Amounts due pass-through agreement 16,036,984 - 16,036,984 - Non current liabilities: • Due within one year 6,375,000 100,317 6,475,317 - • Due in more than one year 252,338,495 6,056 252,344,551 - • TOTAL LIABILITIES $ 286,495,389 $ 957,837 $ 287,453,226 $ 594,533 • NET ASSETS:• Invested in capital assets, • net of related debt $44,179,223 $ 64,085,563 $ 108,264,786 $ 6,030 • Restricted for: Capital projects 44,625,520 - 44,625,520 • Debt service $1,255,304 - 1,255,304 - • Special projects 32,852,052 - 32,852,052 - • Unrestricted(deficit) 88,266,933 1,494,726 89,761,659 (514,056) • TOTAL NET ASSETS $ 211,179,032 $ 65,580,289 $ 276,759,321 $ (508,026) 1 • • See independent auditors'report and notes to basic financial statements. • 15 • ' • • • CITY OF PALM DESERT • STATEMENT OF ACTIVITIES • For the year ended June 30,2002 • • Program Revenues • Operating Capital • Charges for Grants and Grants and • Functions/Programs Expenses Services Contributions Contributions PRIMARY GOVERNMENT: • Governmental Activities: • General government $ 20,830,544 $ 6,166,557 $ 284,132 $ 566,129 • Public safety 14,547,981 2,903,623 269,990 - . Public works 19,686,164 394,263 5,014,044 1,824,536 • Parks,recreation and culture 3,775,417 959,412 800 2,044,057 • Payments to other agencies 17,734,171 - - - Interest on long-term Debt 15,271,200 - - - • 1 Total Governmental Activities 91,845,477 10,423,855 5,568,966 4,434,722 • Business-Type Activities: • Golf Course-Desert Willow 6,629,866 5,753,581 - 8,195 • Office Complex-Parkview 534,865 861,405 - - • Total Business-Type Activities 7,164,731 6,614,986 - 8,195 • TOTAL PRIMARY GOVERNMENT $ 99,010,208 $ 17,038,841 $ 5,568,966 $ 4,442,917 • COMPONENT UNIT: • Palm Desert Recreational Facilities Corp $ 1,429,527 1,470,654 $ - $ - • GENERAL REVENUES: • Taxes: • Property taxes,levied for general purposes • Tax increment Franchise taxes • Sales tax • Transient occupancy tax Motor vehicle in-lieu • Rental income • Sale of land Contributions from other agencies • Other revenues • Investment earnings • Total general revenues • CHANGE IN NET ASSETS • • NET ASSETS(DEFICIT)-BEGINNING OF YEAR • NET ASSETS(DEFICIT)-END OF YEAR • • See independent auditors'report and notes to basic financial statements. • 16 • 0 • • • Exhibit B • • • • • Net(Expense)Revenue and Changes in Net Assets • Primary Government • Governmental Business-Type Component Activities Activities Total Unit • • $ (13,813,726) $ - $ (13,813,726) $ - • (11,374,368) - (11,374,368) • (12,453,321) - (12,453,321) - (771,148) (17,734,171) (17,734,171) - • (15,271,200) - (15,271,200) - • (71,417,934) - (71,417,934) - • • - (868,090) (868,090) - 326,540 326,540 - • - (541,550) (541,550) - • (71,417,934) (541,550) (71,959,484) - • • - - - 41,127 • • 3,250,818 - 3,250,818 - • 45,288,509 - 45,288,509 - • 2,131,820 - 2,131,820 - 13,027,395 - 13,027,395 - • 7,043,454 - 7,043,454 - • 2,515,214 - 2,515,214 - 166,840 - 166,840 - • 204,000 - 204,000 - • 262,193 - 262,193 - • 4,709,580 - 4,709,580 - 6,221,394 6,221,394 • • 84,821,217 - 84,821,217 - • 13,403,283 (541,550) 12,861,733 41,127 • 197,775,749 66,121,839 263,897,588 (549,153) • • $ 211,179,032 $ 65,580,289 $ 276,759,321 $ (508,026) • • • 17 • • • • • • • • • • • • • • • This page intentionally left blank • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Fund Financial Statements • • • • • • • • • • • • • • • Fund Financial Statements • • • • • • • • • • • • • • • • • • • • • • • • • • • • . •• • CITY OF PALM DESERT • BALANCE SHEET • GOVERNMENTAL FUNDS • June 30,2002 • • I ' Redevelopment • Agency • Financing Authority • Prop A Debt • ASSETS General Fire Tax Service Cash and investments $ 30,407,699 $ 2,676,126 $ Cash with fiscal agent-restricted - - 6,390,742 0 Receivables 6,788,942 42,663 1,930 • Due from other funds 654,434 - - Due from component unit 480,000 - - • Assessments receivable - - - Property held for resale - - - • • Inventory 25,970 - - • Advances to other funds 19,366,480 - - Prepaid items and deposits 801,572 - - • TOTAL ASSETS $ 58,525,097 $ 2,718,789 $ 6,392,672 • LIABILITIES AND FUND BALANCES • LIABILITIES: Accounts payable $ 4,333,077 $ 14,435 $ 6,591 • Accrued liabilities 311,651 - - Deposits payable - - - • Due to other funds - - - • Deferred revenue 2,546,188 - - Advances from other funds - - - • Amounts due under pass-through agreements - - _ - TOTAL LIABILITIES 7,190,916 14,435 6,591 FUND BALANCES(DEFICITS): Reserved for: • Loans and notes receivable 2,100,000 - - Property held for resale - - - • Advances 17,311,480 Prepaid items 797,937 - - Deposits - - • Encumbrances 422,837 - - Continuing appropriations 2,543,834 - - • Equipment replacement 2,894,478 - - Debt service 1,410,087 - 630,500 Inventory 25,970 - - • Unreserved reported in: General fund 23,827,558 - • Special revenue funds - 2,704,354 - Debt service funds - - 5,755,581 • Capital projects funds - - - • TOTAL FUND BALANCES(DEFICITS) 51,334,181 2,704,354 6,386,081 TOTAL LIABILITIES • AND FUND BALANCES $ 58,525,097 $ 2,718,789 $ 6,392,672 • • See independent auditors'report and notes to basic financial statements. • • 18 • • I • • • Exhibit C • • • • • • IRedevelopment Redevelopment Agency Agency Other Total • Debt Capital Governmental Governmental • Service Projects Funds Funds $ 40,774,362 $ 4,899,841 $ 80,682,536 $ 159,440,564• 36,499,909 19,250,521 62,141,172 773,433 6,150,444 6,538,540 20,295,952 • - - 101,050 755,484 • - - - 480,000 • - - 40,805,257 40,805,257 210,473 210,473 - - 25,970 • 13,419,000 32,785,480 • 17,383 186,170 1,005,125 $ 41,547,795 $ 47,567,577 $ 161,193,547 $ 317,945,477 • • $ $ 211,465 $ 2,649,980 $ 7,215,548 • - 32,375 59,215 403,241 • - - 392,357 392,357 • 101,050 - 101,050 271,644 40,979,611 43,797,443 0 32,785,480 - 32,785,480 16,036,984 16,036,984 • 48,822,464 616,534 44,081,163 100,732,103 • • - 5,615,040 3,992,542 11,707,582 • - - 210,473 210,473 • - - 13,419,000 30,730,480 • - 17,383 - 815,320 - - 104,325 104,325 • - 1,335,085 7,527,379 , 9,285,301 • - 26,598,135 25,059,311 54,201,280 - - - 2,894,478 • - - 4,714,214 6,754,801 • - - - 25,970 • - - - 23,827,558 - - 21,518,261 24,222,615 • (7,274,669) - 7,322,241 5,803,153 13,385,400 33,244,638 46,630,038 • (7,274,669) 46,951,043 117,112,384 217,213,374 • • $ 41,547,795 $ 47,567,577 $ 161,193,547 $ 317,945,477 • I • I • 19 • • • • • • • • • • • • • • This page intentionally left blank • • • • • • • • • • • • • • • • • • • • • • • • • 20 • • • • • • CITY OF PALM DESERT Exhibit D • GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS • TO THE STATEMENT OF NET ASSETS • June 30,2002 • Amounts reported for governmental activities in the statement of net assets are different because: • • Fund balances for governmental funds $ 217,213,374 • When capital assets(land,buildings,equipment)that are to be used in • governmental activities are purchased or constructed,the costs of those assets are reported as expenditures in governmental funds.However,the • Statement of Net Assets includes those capital assets among the assets • of the City as a whole. • Beginning Balance,net depreciation $ 199,284,429 • Current year additions 17,159,885 Current year depreciation (5,865,742) • Ending Balance,net depreciation 210,578,572 • Long-term liabilities applicable to the City's governmental activities are not due • and payable in the current period and accordingly are not reported as fund • liabilities.All liabilities,both current and long-term,are reported in the Statement of Net Assets • • • Long-Term Debt (257,303,408) Compensated absences (1,410,087) • (258,713,495) • Interest on long-term debt is not accrued in governmental funds,but rather • is recognized as an expenditure when due. (3,650,101) • Cost of issuing bonds are recognized as an expenditure in the period paid, • however in the Statement of Net Assets it is amortized over the life of the bond. 2,036,902 • Because the focus of governmental funds is on short-term financing,some • assets will not be available to pay for current-period expenditures.Those • • assets(for example,receivables)are offset by deferred revenues in the governmental funds and thus are not included in fund balance. • Amounts receivable from property owners to pay special assessments. 40,805,257 • Palm Desert Recreational Facilities Corporation-Relates to the amount of rent owed by component unit to City's General Fund. 480,000 • Community Development Block Grant-Relates to loans given to low to moderate income families. 98,851 • Nuisance Abatement Loan 3,028 • Desert Community College-Relates to amounts due for construction of a regional library. 271,644 • Redevelopment Agency land purchase from City. 2,055,000 • 43,713,780 • Net assets of governmental activities $ 211,179,032 • • See independent auditors'report and notes to basic financial statements. • 21 _• • ' • CITY OF PALM DESERT • • STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES • GOVERNMENTAL FUNDS • For the year ended June 30,2002 • Redevelopment • Agency • Financing Authority • Prop A Debt • General Fire Tax Service • REVENUES: Taxes $ 26,676,756 $ 1,420,321 $ - • • Special assessments collected - - - Licenses and permits 1,133,922 - - • Intergovernmental revenues 3,778,651 - - • Charges for services 975,841 - - • Fines and forfeitures 170,534 - - Investment income 2,379,764 59,389 135,299 • Rental income - - - • Other income/revenues 172,397 - - TOTAL REVENUES 35,287,865 1,479,710 135,299 • EXPENDITURES: • Current: • General government 11,047,028 11,131 - • Payments to other agencies - - - Public safety 12,119,147 2,084,190 - • Public works 4,612,488 - - • Parks,recreation and culture 2,580,841 - - Capital outlay 581,652 - - • Debt Service: • Interest and fiscal charges - - 13,010,812 Principal retirement - - 22,790,000 • TOTAL EXPENDITURES 30,941,156 2,095,321 35,800,812 • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES 4,346,709 (615,611) (35,665,513) • OTHER FINANCING SOURCES(USES): • Sale of property - - - • • Bond Proceeds - - 37,765,000 Transfers in 870,624 1,428,605 11,967,146 0 Transfers out (1,566,863) - (17,815,652) • TOTAL OTHER FINANCING SOURCES(USES) (696,239) 1,428,605 31,916,494 • NET CHANGE IN FUND BALANCES 3,650,470 812,994 (3,749,019) • • FUND BALANCES(DEFICIT)- • BEGINNING OF YEAR 47,683,711 1,891,360 10,135,100 • FUND BALANCES(DEFICIT)-END OF YEAR $ 51,334,181 $ 2,704,354 $ 6,386,081 • See independent auditors'report and notes to basic financial statements. • 22 • • •- L. • • Exhibit E • • I • • • Redevelopment Redevelopment • Agency Agency Other Total • Debt Capital Governmental Governmental • Service Projects Funds Funds • $ 45,288,509 $ - $ 5,245,777 $ 78,631,363 - - 6,684,402 6,684,402 • - - 283,090 1,417,012 • - 832,375 5,970,025 10,581,051 975,841 • - - 134,663 305,197 • 717,519 1,366,526 3,012,861 7,671,358 - 2,671 4,183,936 4,186,607 O 511,116 ,951 715,834 1,405,298 • 46,517,144 2,207,523 26,230,588 111,858,129 • , • 23,538 1,655,513 6,456,886 19,194,096 • 17,734,171 - - 17,734,171 • - - 165,062 14,368,399 5,743,685 7,300,947 17,657,120 • 2,580,841 • - 2,766,320 13,811,913 17,159,885 • 1,114,575 - 2,937,587 17,062,974 • 50,000 - 5,520,000 28,360,000 • 18,922,284 10,165,518 36,192,395 134,117,486 • • 27,594,860 (7,957,995). (9,961,807) (22,259,357) • i • . - - 766,279 766,279 - - 37,765,000 1 • - 21,779,854 24,848,714 60,894,943 • (21,202,234) (3,956,897) (16,353,297) (60,894,943) • 1 • (21,202,234) 17,822,957 9,261,696 38,531,279 O 6,392,626 9,864,962 (700,111) 16,271,922 • • (13,667,295) 37,086,081 117,812,495 200,941,452 • • $ (7,274,669) $ 46,951,043 $ 117,112,384 $ 217,213,374 • • 23 -• • • • CITY OF PALM DESERT Exhibit F • • RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS • TO THE STATEMENT OF ACTIVITIES • For the year ended June 30,2002 • • • • Amounts reported for governmental activities in the statement of activities are different because: Net Change in fund balances-total governmental funds $ 16,271,922 • When capital assets that are to be used in governmental activities are purchased or constructed, • the resources expended for those assets are reported as expenditures in governmental funds. • However,in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.This is the amount by which • capital expenditures($17,159,885)exceeded depreciation$(5,865,742)in the current period. 11,294,143 • Repayment of long term debt is reported as expenditures in governmental funds,and,thus,has • the effect of reducing fund balance because current financial resources have been used. For • the City as a whole,however,the principal payments reduce the liabilities in the Statement of Net Assets and do not result in an expense in the Statement of Activities. 28,360,000 • Proceeds of bond are reported as revenue in governmental funds,however,the reciepts of bonds • increase liabilties in the Statement of Net Assets and does not result in revenues in the • Statement of Activities. (37,765,000) • Cost of issuing bonds are recognized as an expenditure in the period paid, • however in the Statement of Net Assets it is amortized over the life of the bond. 2,036,902 • Some expenses reported in the Statement of Activities do not require the use of current financial • resources and therefore are not reported as expenditures in governmental funds: • Net change in accrued interest for the current period. (245,128) Net change in compensated absences for the current period. (131,135) • Collection of deferred revenues are reported as revenues in governmental funds,and,thus has the • effect of increasing fund balances.For the City as a whole,however,the collection of these • receipts reduces the net assets in the Statement of Net Assets and does not result in revenues • in the Statement of Activities: Deferred loans 53,260 • Special assessments (6,490,494) • Revenues will not be collected within 60 days of the City's fiscal year end and therefore are not • considered available in the governmental funds: Property taxes (11,110) • • Rental income due from Palm Desert Recreational Facilities Corporation 96,000 • Reimbursement revenue related to principal payments (143,173) Reimbursement revenue related to repairs completed by the City on behalf of the public library 77,294 • Repayment of Loans made to individuals (198) • Change in net assets of governmental activities $ 13,403,283 • • See independent auditors'report and notes to basic financial statements. • • • 24 • • • • • CITY OF PALM DESERT Exhibit G • STATEMENT OF NET ASSETS • PROPRIETARY FUNDS • • June 30,2002 • • Business-type Activities • Enterprise Funds Desert Other Totals • Willow Enterprise Enterprise • Golf Course Fund Funds • ASSETS: Current assets: • Cash and investments $ 690,325 $ 1,691,144 $ 2,381,469 • Receivables 207,401 75,145 282,546 Due from PDRFC 17,338 - 17,338 • Inventory 257,252 - 257,252 • Prepaid items and deposits 34,319 - 34,319 Total current assets 1,206,635 1,766,289 2,972,924 • Noncurrent assets: • Start-up costs 27,700 - 27,700 • Capital assets(net of (accumulated depreciation) 60,781,141 3,410,795 64,191,936 • TOTAL ASSETS $ 62,015,476 $ 5,177,084 $ 67,192,560 • LIABILITIES • LIABILITIES: Current liabilities: • Accounts payable $ 331,656 $ 107,526 $ 439,182 • Accrued liabilities 322,321 - 322,321 Deposits payable - 21,338 21,338 • Due to primary government 654,434 - 654,434 • Deferred revenue 55,546 13,077 68,623 Capital leases-current portion 100,317 - 100,317 • Total current liabilities 1,464,274 141,941 1,606,215 • Noncurrent liabilities: • Capital leases payable 6,056 6,056 TOTAL LIABILITIES 1,470,330 141,941 1,612,271 1 • • NET ASSETS: • Invested in capital assets,net of related debt 60,674,768 3,410,795 64,085,563 • Unrestricted (129,622) 1,624,348 1,494,726 I • TOTAL NET ASSETS $ 60,545,146 $ 5,035,143 $ 65,580,289 • • • • See independent auditors'report and notes to basic financial statements. • • 25 -• • • CITY OF PALM DESERT Exhibit H • • STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET ASSETS • PROPRIETARY FUNDS • June 30,2002 • • Business-type Activities • Enterprise Funds • Desert Other Total Willow Enterprise Enterprise • 1 Golf Course Funds Funds • OPERATING REVENUES: Fees and rentals $ 4,894,583 $ 837,179 $ 5,731,762 • .Merchandise sales 852,786 - 852,786 • TOTAL OPERATING REVENUES 5,747,369 837,179 6,584,548 • •. OPERATING EXPENSES: • Cost of merchandise 432,759 - 432,759 Maintenance and operations 4,060,726 227,826 4,288,552 • General and administrative 1,222,278 155,308 1,377,586 • Depreciation and amortization 872,315 151,731 1,024,046 • TOTAL OPERATING EXPENSES 6,588,078 534,865 7,122,943 • OPERATING INCOME(LOSS) (840,709) 302,314 (538,395) • NONOPERATING REVENUES(EXPENSES): • Investment income 6,212 24,226 30,438 • Interest expense (41,788) - (41,788) • TOTAL NONOPERATING REVENUES(EXPENSES) (35,576) 24,226 (11,350) • • NET INCOME(LOSS) • CAPITAL CONTRIBUTIONS (876,285) 326,540 (549,745) • CAPITAL CONTRIBUTIONS 8,195 - 8,195 • CHANGES IN NET ASSETS (868,090)• 326,540 (541,550) • • TOTAL NET ASSETS-BEGINNING OF YEAR 61,413,236 4,708,603 66,121,839 • TOTAL NET ASSETS-END OF YEAR $ 60,545,146 $ 5,035,143 $ 65,580,289 • • • • See independent auditors'report and notes to basic financial statements. • • • • 26 • • • • • CITY OF PALM DESERT Exhibit I • • STATEMENT OF CASH FLOWS • PROPRIETARY FUNDS • For the year ended June 30,2002 • • Business-type Activities • Enterprise Funds Desert Other Totals • Willow Enterprise Enterprise • Golf Course Fund Funds CASH FLOWS FROM OPERATING ACTIVITIES: • Receipts from customers $ 5,882,316 $ 793,321 $ 6,675,637 • Payments to suppliers (5,463,034) (306,171) (5,769,205) Internal activity-payments to other funds - (81,734) (81,734) • Net cash provided(used)by operating activities 419,282 405,416 824,698 • CASH FLOWS FROM CAPITAL AND• RELATED FINANCING ACTIVITIES: • Purchases of capital assets (37,401) (19,128) (56,529) • Principal paid on leases (291,829) - (291,829) Interest paid on leases (41,788) (41,788) • Net cash(used)by capital and related financing activities (371,018) (19,128) (390,146) • CASH FLOWS FROM INVESTING ACTIVITIES: • Interest and dividends 6,212 24,226 30,438 • Net cash provided by investing activities 6,212 24,226 30,438 • NET(DECREASE)IN CASH AND CASH EQUIVALENTS 54,476 410,514 464,990 • • CASH AND CASH EQUIVALENTS-BEGINNING OF YEAR 635,850 1,280,630 1,916,480 • CASH AND CASH EQUIVALENTS-END OF YEAR $ 690,326 $ 1,691,144 $ 2,381,470 • • Reconciliation of Operating Income(Loss)to Net Cash Provided(Used)by Operating Activities: • Operating income(loss) $ (840,707) $ 302,314 $ (538,393) • Adjustments to reconcile operating income(loss)to net cash provided(used)by operating activities: • Depreciation expense 872,315 151,731 1,024,046 • Changes in Assets and Liabilities: Receivables 172,632 (42,156) 130,476 • Prepaids and deposits (17,432) - (17,432) • Inventory (41,795) - (41,795) • Accounts, accrued liabilities and deposits payables 311,955 (6,473) 305,482 Deferred revenue (37,686) (37,686) • Net cash provided(used)by operating activities $ 419,282 $ 405,416 $ 824,698 • Noncash items included$8,195 of capital assets contributed by the City of Palm Desert. • • See independent auditors'report and notes to basic financial statements. • • 27 • . • • • CITY OF PALM DESERT Exhibit J STATEMENT OF NET ASSETS • FIDUCIARY FUNDS-AGENCY • I June 30,2002 • • ASSETS • • Cash and Investments $3,814,373 • I • LIABILITIES Deposits Payable $3,814,373 • • • • • • • • • • • • • • • • • • • • • • • • See independent auditors'report and notes to basic financial statements. • • • 28 • • Notes • • • CITY OF PALM DESERT • • NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2002 • • Note 1: Summary of Significant Accounting Policies • • a. Description of the Reporting Entity • The City of Palm Desert was originally incorporated on November 26, 1973 as a General Law City. In December 1997, the voters in the City passed Measure LL which adopted a • City Charter. The City operates under a Council-Manager form of government and • provides the following services: public safety (police and fire), highways and streets, sanitation, public improvements, community development (planning, building and zoning) • and general administrative services. • The City has defined its reporting entity in accordance with accounting principles • generally accepted in the United States of America which provide guidance for • determining which governmental activities, organizations, and functions should be included in the reporting entity. The Basic Financial Statements present information on • the activities of the reporting entity, including all of the fund types and account groups of • the City(the primary government) and its component units. • Accounting principles generally accepted in the United States of America requires that • the component units be separated into blended or discretely presented units for reporting purposes. Although legally separate entities, blended component units are, in substance, • part of the City's operations. Therefore, they are reported as part of the primary government. Discretely presented component units are reported in a separate column in • the basic financial statements to emphasize that they are legally separate from the City. • Blended Component Units • The Palm Desert Redevelopment Agency (the Agency)was established October 24, • 1974, pursuant to California Health and Safety Code Section 33000 entitled • "Community Redevelopment Law." The purpose of the Agency is to prepare and • execute plans for the improvement, rehabilitation and redevelopment of blighted areas within the limits of the City. The Agency's transactions are reported in the • governmental fund financial statements as debt service, capital projects and other • governmental funds. • The Palm Desert Housing Authority (Housing Authority) was established by the City Council in January 1998 and is partly responsible for the administration of providing. • affordable housing in the City. The Housing Authority transactions are reported in the • governmental fund financial statements under other governmental funds. • The City Council of Palm Desert is the governing body for the Agency and Housing • Authority. • The Palm Desert Financing Authority (Financing Authority) was formed on January 26, 1989. The purpose of the Financing Authority is to issue debt and loan the • proceeds to the City and Agency. The Financing Authority's transactions are • reported in the governmental fund financial statements in the debt service funds and other governmental funds. • • • • 29 • • City of Palm Desert • Notes to Financial Statements(Continued) • • Note 1: Summary of Significant Accounting Policies (Continued) • The financial statements of the Agency can be obtained at the administrative offices • of the City. Separate financial statements are not issued for the Housing Authority and Financing Authority. • Discretely Presented Component Unit: • • The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on February 25, 1997. The purpose of the Corporation is to lease, operate and manage a restaurant and bar in the Desert Willow Golf Course in • Palm Desert, California. The Board of Directors of the Corporation appoints an executive director to administer operations. • The Corporation is in a separate column to emphasize that it is legally separate • from the City and is financially accountable to the City. The two-member board • governing the Corporation is appointed by the City Council and the City has • authority to control the Corporation's budget. • Complete financial statements of the Component Unit can be obtained from the • City's administrative offices. b. Basis of Presentation • • Government-Wide Financial Statements • The govemment-wide financial statements (i.e., the statement of net assets and the • statement of activities) report information on all of the nonfiduciary activities of the • primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, • which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and • charges for support. Likewise, the primary government is reported separately from • certain legally separate component units for which the primary government is • financially accountable. The statement of activities demonstrates the degree to which the direct expenses of • a given function or segment are offset by program revenues. Direct expenses are • those that are clearly identifiable with a specific function or segment. Program • revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or • segment and 2) grants and contributions that are restricted to meeting the • operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as • general revenues. • Separate financial statements are provided for governmental funds, proprietary funds • and fiduciary funds, even though the later are excluded from the government-wide financial statements. Major individual governmental funds and major individual • enterprise funds are reported as separate columns in the fund financial statements. • • • • • • 30 • • • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 1: Summary of Significant Accounting Policies(Continued) • • Fund Financial Statements • The accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. • Each fund is accounted for by providing a separate set of self-balancing accounts • that constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: • governmental, proprietary, and fiduciary. An emphasis is placed on major funds • within the governmental and proprietary categories. A fund is considered major if it is the primary operation fund of the City or meets the following criteria: • ! • a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total • for all funds of that category or type; and • b. Total assets, liabilities, revenues, or expenditures/expenses of the individual • govemmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. • • c. The government has determined that a fund is important to the financial statement user. • The funds of the financial reporting entity are described below:• • Governmental Fund Types • General Fund - The General Fund is the general operating fund of the City. It is • used to account for all financial resources except those required to be accounted for in another fund. • • Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue resources (other than major capital projects) that • are legally restricted to expenditures for specified purposes. • Debt Service Funds - Debt Service Funds are used to account for the • accumulation of resources for, and the payment of, general long-term obligation • principal, interest and related costs. • Capital Proiects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. • • Proprietary Fund Type • Enterprise Funds - The Enterprise Funds account for operations that are • financed and operated in a manner similar to private business enterprises, where the intent of the City Council is that the costs (expenses including depreciation) • of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. The Primary Government's • Enterprise funds consist of the Parkview Office Complex and the Desert Willow • Golf Course, which are operated by a management company. The Component Unit's Enterprise fund consists of the Palm Desert Recreational Facilities • Corporation. • • • • 31 • • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 1: Summary of Significant Accounting Policies(Continued) • Fiduciary Fund Type • Agency Fund - This fund is used to account for assets held by the City in a • custodial capacity (assets equal liabilities) and does not involve measurement of • results of operations. • The major funds are as follows: • Governmental Funds • The General Fund is the general operating fund of the City. It is used to account • for all financial resources except those required to be accounted for in another • fund. • The Prop A Fire Tax Special Revenue Fund is used to account for all revenues • derived from tax collected within the City for upgrading fire protection and prevention. Its use is restricted for obtaining, furnishing, operating and • maintaining fire protection and prevention services (currently under contract with • Riverside County Fire Department)equipment or apparatus. The Redevelopment Agency Financing Authority Debt Service Fund is used to • account for the resources and payment of the debt issued by the Palm Desert • Financing Authority and loaned to the Redevelopment Agency. • The Redevelopment Agency Debt Service Fund is used to account for resources • and payments of debt issued by the Redevelopment Agency. • The Redevelopment Agency Capital Protects Fund is used to account for the • fiscal activities of the Palm Desert Redevelopment Agency. • Proprietary Fund • The Desert Willow Golf Course Fund is used to account for the fees collected • and expenses incurred in connection with operating the golf course in the City of • Palm Desert. • c. Measurement Focus and Basis of Accounting • Measurement focus is a term used to describe "which" transactions are recorded within • the various financial statements. Basis of accounting refers to "when" transactions are • recorded regardless of the measurement focus applied. Measurement Focus • • On the government-wide Statement of Net Assets and the Statement of Activities, both governmental and business-like activities are presented using the economic resources measurement focus. The accounting objectives of the economic • measurement focus are the determination of operating income, changes in net assets • (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent)associated with their activities are reported. • • • • • • 32 • • • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 1: Summary of Significant Accounting Policies(Continued) • • In the fund financial statements, the "current financial resources" measurement focus or the"economic resources" measurement focus is used as appropriate: • a. All governmental funds utilize a "current financial resources" measurement focus. • Only current financial assets and liabilities are generally included on their • balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use • fund balance as their measure of available spendable financial resources at the • end of the period. • b. The proprietary fund utilizes an "economic resources" measurement focus. • Proprietary fund equity is classified as net assets. • c. Agency funds are not involved in the measurement of results of operations; • therefore, measurement focus is not applicable to them. • Basis of Accounting • In the government-wide Statement of Net Assets and Statement of Activities, both • governmental and business-like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when • earned and expenses are recorded when the liability is incurred or economic asset • used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes • place. • In the fund financial statements, governmental funds are presented on the modified • accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available". Measurable means • knowing or being able to reasonably estimate the amount. Available means • collectible within the current period or soon enough thereafter to pay current liabilities. Revenues which are susceptible to accrual include property taxes and • special assessments that are levied for and due for the fiscal year and collected • within 60 days after year-end. Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as govemmental fund type revenues when • received in cash because they are not generally measurable until actually received. • Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the accounting period in which they became both measurable and available to finance • expenditures of the fiscal period. Grant funds and reimbursements of expenses • under contractual agreements are reported in governmental fund types and are recorded as a receivable when earned rather than when susceptible to accrual. • Generally, this occurs when authorized expenditures are made under the grant program or contractual agreement. Expenditures are recognized when the fund • liability is incurred, if measurable, except for unmatured interest on long-term debt, • which is recognized when due. • Interfund activity in the amount of $957,227 has been eliminated from the general • government function for the government-wide financial statements except for charges between the government's Desert Willow Golf Course and Parkview Office Complex • funds and various other functions of the government. Elimination of these charges • would distort the direct costs and program revenues for the various functions considered. • • • • 33 • • • City of Palm Desert • Notes to Financial Statements (Continued) Note 1: Summary of Significant Accounting Policies(Continued) • The accrual basis of accounting is followed by the proprietary fund and fiduciary • funds. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. • Proprietary funds distinguish operating revenues and expenses from nonoperating • items. Operating revenues and expenses generally result from providing goods and • services in connection with a proprietary fund's principal ongoing operations. The • principal revenue of the Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges to customers for use of the golf course and rental fees. • Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and • expenses not meeting this definition are reported as nonoperating revenues and • expenses. • In accordance with GASB Statement No. 20, for Proprietary Fund accounting, the • City applies all applicable GASB pronouncements as well as the following pronouncements issued on or before November 30, 1989, unless those • pronouncements conflict with •or contradict GASB Pronouncements: Financial • Accounting Standards Board Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins of the Committee on Accounting • Procedures. • When both restricted and unrestricted resources are available for use, it is the • government's policy to use restricted resources first, and then unrestricted resources as they are needed. • d. Capital Assets and Depreciation • • Capital assets, which include property, plant, equipment and infrastructure assets (e.g., • roads, traffic signals, drainage systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial • statements. Capital assets are defined by the City as assets with an initial cost of more than $500 and an estimated life in excess of one year. Such assets are recorded at • historical cost or estimated historical cost if purchased or constructed. Donated capital • assets are recorded at estimated fair market value at the date of donation. • The cost of normal maintenance and repairs that do not add to the value of the asset or • materially extend asset lives are not capitalized. • Property, plant and equipment of the primary government as well as the component units, • are depreciated using the straight-line method over the following estimated useful lives: • Assets Years • Buildings 40 • Improvements other than buildings 20 Machinery and equipment 5-8 • • Infrastructure 20-75 • • • • • 34 • • • • • City of Palm Desert Notes to Financial Statements(Continued) • Note 1: Summary of Significant Accounting Policies(Continued) • • e. Budget and Budgetary Accounting • The City uses the following procedures in establishing the budgetary data reported in the • financial statements: • 1. Before the beginning of the fiscal year the City Manager submits to the City Council a • proposed budget for the year commencing the following July 1. • 2. Public hearings are conducted to obtain taxpayer comments. • 3. The budget is subsequently adopted through passage of a resolution. • 4. Expenditures for the General Fund cannot exceed amounts budgeted at the • departmental level. • For other funds, expenditures cannot exceed the total amount budgeted for each • fund. The City Manager is authorized to transfer appropriations (without council • approval) within an object of a General Fund Department and within total fund appropriations for other funds. The City Council approves all other changes. Annual • appropriation amounts lapse at year-end. • 5. Encumbrances and continuing appropriations are rebudgeted as of July 1 by Council • action. • 6. Annual budgets are adopted on a basis consistent with accounting principles • generally accepted in the United States of America for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project- • length budgets and debt service funds which are not budgeted as effectively • budgetary control is achieved through debt indenture provisions. • f. Appropriations Limit • Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), • the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be• refunded to the State Controller or returned to the taxpayers through revised tax rates, • revised fee schedules or other refund arrangements. For the fiscal year ended June 30, 2002, proceeds of taxes did not exceed appropriations. • • • g. Investments • Investments are stated at fair value (quoted market price or the best available estimate • thereof). • h. Cash and Cash Equivalents • For purposes of the statement of cash flows, the City has defined cash and cash • equivalents to include cash on hand, demand deposits and investments held in the California Local Agency Investment Fund (LAIF). • • • • • • 35 • • • City of Palm Desert Notes to Financial Statements(Continued) • Note 1: Summary of Significant Accounting Policies (Continued) • • I. Employee Compensated Absences • It is the government's policy to permit employees to accumulate earned but unused • vacation and sick leave (compensated absences). Vacation pay and sick leave, which is • expected to be liquidated with expendable available resources, is reported as an expenditure and liability of the governmental fund that will pay it. Compensated • absences in the amount of $1,410,087, which are not expected to be liquidated with . expendable available financial resources are reported in long-term debt. • j. Property Held for Resale • • The Agency purchased land within the Agency's project area. The land held for resale is • recorded in the Redevelopment Agency Special Revenue Fund as property held for resale, at the lower of acquisition cost or net realizable value. At June 30, 2002 the cost • of the property held for resale for various housing properties in Palm Desert totaled $210,473. • k. Inventories and Prepaid Items • • Inventory in the amount of $257,252 and $27,225 for the Desert Willow Golf Course • Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities Corporation (Component Unit), respectively, are stated at lower of cost or market with • cost determined using the weighted average cost method. Inventory in the amount of • $25,970 in the general fund is stated at cost. Inventory is recorded as an expenditure when consumed rather than purchased. • Certain payments to vendors reflect costs applicable to future accounting periods are • recorded as prepaid items in the government-wide and fund financial statements. • I. Property Tax Calendar • Property taxes are assessed and collected each fiscal year according to the following • property tax calendar: • Lien date January 1 • Levy date July 1 to June 30 • Due date November 1 - 1st Installment, March 1 -2nd installment Delinquent date December 10- 1st 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 cities based on complex formulas prescribed by • state statutes. The City accrues only those taxes, which are received within sixty days after the year-end. The City is a participant in the Teeter plan under the California • Revenue and Taxation Code. The County of Riverside has responsibility for the • collection of delinquent taxes and the City receives 100% of the levy. • • • • • • • 36 • • • • City of Palm Desert • Notes to Financial Statements (Continued) • Note 2: Cash and Investments • • At June 30, 2002, cash and investments were reported in the accompanying financial statements as follows: • Governmental activities $ 221,581,736 • Business-type activities 2,381,469 • Component Unit 41,756 • Fiduciary funds 3,814,373 • Total Cash and Investments $ 227,819,334 • Primary Government • • The City of Palm Desert maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance • sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in the following investments: • a. United States Treasury Bills, Bonds and Notes • 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 (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage • Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), the • Student Loan Marketing Association (SLMA) and the Tennessee Valley Authority (NA). • • c. Bankers acceptances • d. Commercial paper • e. Medium term notes • f. Local Agency Investment Fund • • g. "Shares of beneficial interest" issued by diversified management companies which invest in money market securities with a weighted average of 90 days or less. • • h. California Asset Management Trust. • Classification of Deposits and Investments by Credit Risk • Governmental Accounting Standards Board Statement No. 3 requires that deposits • and investments be classified into three categories of credit risk. These categories are as follows: • • Deposits • Category 1 - Deposits insured or collateralized with securities held by the City or • the City's agent in the City's name. • Category 2 - Deposits collateralized with securities held by the pledging financial • institution's trust department or agent in the Citys name. • 37 • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 2: Cash and Investments (Continued) • • Category 3 - Uncollateralized deposits, or collateralized with securities held by • the pledging financial institution or by its trust department or agent, but not in the • City's name. • Investments • Category 1 - Insured or registered investments, or securities held by the City or • its agent in the City's name. • Category 2 - Uninsured and unregistered investments with securities held by the • counterparty's trust department or agent in the City's name. Category 3 - Uninsured and unregistered investments with securities held by the • counterparty or by its trust department or agent but not in the City's name. • Deposits were categorized as follows at June 30, 2002: • • Category Bank Carrying • 1 2 3 Balances Amount Demand • accounts $ 393,749 $4,215,578 $ - $4,609,327 $ 2,809,608 • The difference between the bank balances and carrying amount of the deposits • is due to outstanding checks in the amount of $1,772,419 and deposits in transit • of$27,300. • Investments were categorized as follows at June 30, 2002: • Not • Required • Category to be Fair • 1 2 3 Categorized Cost Value Medium Tenn Ill Corporate Notes $ 25,974,757 $ - $ - $ - $ 25,974,757 $ 26,108,633 , FHLB 8,973,873 - - - 8,973,873 9,111,830 , FNMA 8,041,845 - - - 8,041,845 8,033,883 FHLMC 7,849,943 - - - 7,849,943 7,975,468 . SLMA 1,999,461 - - - 1,999,461 2,011,626 Money Market Mutual Funds - - - 12,383,356 12,383,356 12,383,356 , Held by Fiscal Agent: Mutual Funds - - - 47,651,942 47,651,942 47,651,942 , California Local Agency Invest- ment Fund - •- - 81,203,856 81,203,856 81,429,614 , California Asset Management Program - - 30,303,375 30,303,375 30,303,375 4 Total Investments $ 52,839,879 $ - $ - $ 171,542,529 $ 224,382,408 $ 225,009,727 4 4 4 38 4 • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 2: Cash and Investments (Continued) • ® At June 30, 2002, the total investments were increased by $627,319 to adjust the cost to fair value. Investments Not Subject to Categorization: Investments in the California Local Agency Investment Fund, money market • mutual funds and mutual funds are not categorized, as GASB No. 3 does not • require categorization of these investment types. • Local Agency Investment Fund (LAIF) • The LAIF is a voluntary program created by statute in 1977 as an investment • alternative through which local governments may pool investments. The LAIF has • oversight by the Local Agency Investment Advisory Board, which consists of five members as designated by state statute. Each city may invest up to $40,000,000 • each in the Fund for the city and redevelopment agency and may also invest without • limitation in special bond proceeds accounts. Investments in LAIF are highly liquid, as deposits can be converted to cash within twenty-four hours without loss of interest. • The City's proportionate share of the fair value of its investment in LAIF amounted to $81,429,614. Included in LAIF's investment portfolio are certain derivative securities • or similar products such as structured notes totaling $551,578,000 and asset-backed • securities totaling $921,063,000. LAIF's, and the City's, exposure to credit, market or legal risk is not available. • • California Asset Management Program (CAMP) Cash Reserve Portfolio • In May 2002, the City Council adopted a resolution authorizing the investment of City monies in the California Asset Management Trust. This fund invests primarily in • certificates of deposit, commercial paper and U.S. Government and agency I • obligations. • The bank balance of $205,133 held by the Palm Desert Recreational Facilities • Corporation (Discretely Presented Component Unit)was fully insured up to $100,000 and the balance of$105,133 was collateralized (Category 2). • • Note 3: Receivables • • Receivables of the primary government's Governmental Funds consisted of the following at • June 30,2002: • Prop A RDA RDA RDA Other Total Fire Financing Debt Capital Governmental Governmental • General Tax Authority Service Projects Funds Receivables • Accounts $ 1,046,299 $ - $ - $ 773,433 $ 58,644 $ 362,803 $ 2,241,179 • Interest 880,342 - 1,930 - 307,438 23,631 1,213,341 Other I • Government , I • Agencies 2,584,054 42,663 - - 3,813,362 2,007,512 8,447,591 Loans 2,278,247 314,875 2,593,122 • Notes - - - - 1,971,000 3,829,719 5,800,719 • $ 6,788,942 $ 42,663 $ 1,930 $ 773,433 $ 6,150,444 $ 6,538,540 $ 20,295,952 • • • • • 39 • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 3: Receivables(Continued) • Receivables of the primary government's Proprietary Funds consisted of the following at June • 30, 2002: • Desert • • Willow Other Enterprise Enterprise Total • Accounts $ 207,401 $ 75,145 $ 282,546 • • Primary Government's Governmental Funds • Notes Receivable • The Palm Desert Redevelopment Agency has a note receivable with a remaining • balance of $1,971,000 from the sale of land dated August 29, 1997 to Intrawest • Resort Ownership Corporation. The note is secured by a Deed of Trust with • assignment of rents on property located in Palm Desert. Interest is earned and due annually at a rate that ranges from 3% to 6% per annum based on the development • of the property. Principal on the note is due in installments of$576,000 based on the completion of various phases of the project with any unpaid principal due 60 days • from the date of the note. • Loans Receivable • The Agency has loaned $170,890 in below market loans, secured by deeds of trust, • to eligible low income households. Monthly payments of interest and principal are • due over a period of 30 years unless the homes are sold, in which case the entire • loan balance is due and payable. The Agency has $45,134, and the City has $98,851 in home improvement loans. Payments of interest and principal are due monthly on these loans. • Due From Other Governmental Agencies41 • The Agency entered into a cooperative agreement with the County of Riverside , (County) and Desert Community College District (District) to construct and operate a regional library. On behalf of the County and District, the Agency advanced , payments on this project, which are to be repaid from certain County Library and District pass-through funds. The advances earn interest at 6.44% until paid. At June 30, 2002, amounts due from the County and District were $1,369,401 and , $2,274,639, respectively. , The Agency has spent $169,322 on repairs to a public library, which will be reimbursed by the Desert Community College District. 41 41 i 40 • • City of Palm Desert • Notes to Financial Statements (Continued) Note 4: Interfund Receivables and Payables • • Interfund receivables and payables of the fund financial statements at June 30, 2002 were as follows: • • Due to/from Other Funds • Receivable Fund Payable Fund Amount • General Fund Desert Willow Golf Course $ 654,434 Other Governmental Funds RDA Capital Projects 101,050 • $ 755,484 • • The General Fund receivable amount is loaned to the Desert Willow Golf Course to provide temporary funds for operations. The Redevelopment Agency capital projects • funds payable is to reimburse the Other Governmental Funds for capital improvements. • Advances to/from Other Funds • • Receivable Fund Payable Fund Amount • General Fund RDA Debt Service $19,366,480 • Other Governmental Funds RDA Debt Service 13,419,000 • $32,785,480 • The advances from the General and Other Governmental Funds were made to the • Redevelopment Agency to provide funds for capital improvements. • Due to/from Primary Government and Component Unit • • Receivable Entity Payable Entity Amount Primary Government- • General Fund Component Unit- PDRFC $ 480,000 Primary Government- • Desert Willow Golf Course Component Unit-PDRFC _ 17,338 • $ 497,338 • • The receivable by the General Fund is for rent owed by the PDRFC and the receivable by the Desert Willow Golf Course represents funds loaned to PDRC for operations. • • • • • • • • 41 • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 4: Interfund Receivables and Payables (Continued) • Interfund transfers at June 30, 2002 were as follows: • Transfers To • Prop A RDA - RDA Other • Fire Financing Capital Governmental General Tax Authority Projects Funds Total • Transfers From: • General $ - $ 1,428,605 $ - $ - $ 138,258 $ 1,566,863 • RDA Financing Authority - - - 17,815,652 - 17,815,652 • RDA Debt Service - - 8,432,505 3,712,027 9,057,702 21,202,234 • RDA Capital • Projects - - 1,401 252,175 3,703,321 3,956,897 Other Nonmajor • Funds 870,624 - 3,533,240 - 11,949,433 16,353,297 • $ 870,624 $ 1,428,605 $ 11,967,146 $ 21,779,854 $ 24,848,714 $ 60,894,943 • • Transfers are used to: • 1. move receipts restricted to debt service from the funds collecting the receipts to the • debt service funds as debt service payments become due, • 2. transfer 20% of tax increment received by RDA Debt Service funds to the Low and Moderate Income Housing Special Revenue Fund, 3. transfer allocation of administrative expenses, 4. transfer revenues to provide for capital projects, 5. transfer revenues to provide for additional resources to pay for expenditures and . 6. reimbursement to Low and Moderate Income Housing Special Revenue Fund from RDA Capital Projects funds for expenditures related to general redevelopment projects. , 11 41 11 111 • 1 1 1 1 42 / 1 • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 5: Capital Assets 1 • • A summary of changes in Capital Assets at June 30, 2002 is as follows: • Primary Government • Adjusted • Balance at Balance at Balance at June 30,2001 _Adjustments June 30,2001 Additions Deletions June 30,2002 • • Governmental Activities: • Capital assets,not being depreciated: Land $ 60,918,426 $ 361,248 $ 61,279,674 $ 6,586,131 $ 2,746,182 $ 65,119,623 • Construction-in-progress 3,730,298 (170,573) 3,559,725 8,525,083 1,752,595 10,332,213 • Total Capital Assets Not Being Depreciated $ 64,648,724 $ 190,675 $ 64,839,399 $15,111,214 $ 4,498,777 $ 75,451,836 • Capital assets,being depreciated: • Buildings $ 64.888,908 $ - $ 64,888,908 $ - $ - $ 64,888,908 Improvements other • - than buildings 23,030,924 - 23.030,924 1,510,962 - 24,541,886 • Machinery and equipment 7,052.135 291,761 7,343,896 556,047 2,332 7,897,611 Infrastructure 101,105,499 1,327,468 102,432,967 4,480,438 106,913,405 • Total Capital Assets • Being Depreciated $ 196,077,466 $1,619,229 $197,696,695 $ 6,547,447 ' $ 2,332 $204,241,810 Less accumulated depreciation for:• Buildings $ (20,058,767) $ 3,295 $ (20,055,472) $ (1,618,473) $ $(21,673,945) • Improvements other than buildings (3,375,780) (8.580) (3,384,360) (1,189,991) (4.574,351) • Machinery and equipment (4,965,177) (82,756) (5,047,933) (613,306) (2,332) (5,658,907) Infrastructure (34,679,247) (84,653) (34,763,900) (2,443,971) - (37,207,871)® Total Accumulated • • Depreciation $ (63,078,971) $ (172,694) $ (63,251,665) $ (5,865,741) $ (2,332) $(69,115,074) • Net Capital Assets • Being Depreciated $ 132,998,495 $1,446,535 $134,445,030 $ 681,706 $ - $135,126,736 • Net Capital Assets Governmental Activities $ 197,647,219 $1,637,210 $199,284,429 $15,792,920 $ 4,498,777 $210,578,572 • Business-type Activities: • Land and improvements $ 52,173,499 $ - $ 52,173,499 $ - $ - $ 52,173,499 • Building and improvements 11,960,732 - 11,960,732 19,128 - 11,979,660 Equipment 3,521,857 28,301 3,550,158_ 37,401 3,587,559 • Total $ 67,656,088 $ 28,301 $ 67,684,389 $ 56,529 $ - $ 67,740.918 • Less accumulated depreciation (2,590,409) 65,473 (2,524,936) (1,024,046) (3,548,982) • $ 65,065,679 $ 93,774 $ 65,159,453 $ (967,517) $ - $ 64,191,936 • Component Unit: • Equipment $ 20,103 $ - $ 20,103 $ - $ - $ 20,103 • Less accumulated depreciation (10,052) - (10,052) (4,021) - (14,073) • • $ 10,051 $ - $ 10.051 $ (4,021) $ - $ 6,030 *Adjustments are a result of prior years capitalization and reporting. II • 43 • • City of Palm Desert • Notes to Financial Statements (Continued) • Note 5: Capital Assets(Continued) • Depreciation expense was charged to functions/programs of the primary government as • follows: • Governmental Activities: • General government $ 1,900,261 • Public safety 179,582 Public works 2,591,323 • Parks, recreation and culture 1,194,576 • Total Depreciation Expense- • Governmental Activities $ 5,865,742 • Business-type Activities: • Golf course- Desert Willow $ 872,315 • Office complex-Parkview 151,731 • Total Depreciation Expense- • Business-Type Activities $ 1,024,046 • Note 6: Long-Term Liabilities • The following is a summary of long-term liability transactions of the City for the year ended • June 30,2002: • Primary Government • Balance at Payments and Balance at Due Within June 30,2001 Additions Advance Refunding June 30,2002 One Year Governmental Activities: • Compensated absences payable $ 1,278,952 $ 926,317 $ 795,182 $ 1,410,087 $ - • Tax Allocation Bonds 193,015,000 37,765,000 22,790,000 207,990,000 4,195,000 41 Special assessment bonds . payable with govemment commitment 48,415,000 - 5,270,000 43,145,000 1,930,000 . Notes payable 900,000 - 50,000 850,000 - , Contract payable 5,568,408 - 250,000 5,318,408 250,000 Total $249,177,360 $38,691,317 $ 29,155,182 $258,713,495 $6,375,000 41 Debt service payments for govemmental activities are made from debt service funds. , 41 Business-type Activities: , Capital leases $ 373,556 $ - $ 267,183 $ 106,373 $ 100,317 , Component Unit: , Capital leases $ 5,933 $ - $ 5,933 $ - $ - , 41 41 44 4 I • • City of Palm Desert • Notes to Financial Statements (Continued) • Note 6: Long-Term Liabilities(Continued) • • Governmental Activities • a. Compensated Absences Payable • There is no fixed payment schedule to pay the governmental fund types' outstanding • liability for compensated absences earned at June 30,2002 of$1,410,087. • b. Tax Allocation Bonds • Tax Allocation bonds are special obligations of the Agency and the Financing Authority, • (a component unit of the Agency) and are secured by an irrevocable pledge of tax • revenues and other funds as provided under the Bond Resolution. The Bonds, and any interest thereon are not a debt of the City, the State of California or any of its political • subdivisions and neither the City, the State of California nor any of its political subdivisions is liable on the Bonds, nor in any event shall the Bonds, and interest thereon • be payable out of any funds or properties other than those provided under the Bond • Resolution. • 1995 Series Tax Allocation Revenue Bonds (Project Area No. 1) • In June 1995, the Palm Desert Financing Authority issued $24,025,000 of Tax • Allocation 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 Area No. 1. Interest • rates on the bonds vary from 4.0% to 5.2% per annum payable semi-annually on • April 1 and October 1 with principal maturing annually. • The future debt service requirements on the 1995 Series Tax Allocation Revenue O Bonds (Project Area No. 1)are as follows: • June 30, Principal Interest Total • 2003 $ 235,000 $ 1,351,346 $ 1,586,346 • 2004 245,000 1,339,360 1,584,360 2005 255,000 1,326,742 1,581,742 • 2006 640,000 1,313,482 1,953,482 • 2007 675,000 1,275,532 1,950,532 2008-2012 4,030,000 5,726,848 9,756,848 • 2013-2017 5,375,000 4,384,558 9,759,558 • 2018-2022 7,175,000 2,592,130 9,767,130 • 2023-2025 4,300,000 453,976 4,753,976 0 $ 22,930,000 $ 19,763,974 $ 42,693,974 • • • • • • • • 45 • a • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities (Continued) • 1995 Series Tax Allocation Revenue Bonds (Project Area No. 2) • 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 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 semi-annually on February 1 and August 1 with principal maturing annually on August 1. • The future debt service requirements on the 1995 Series Tax Allocation Revenue Bonds(Project Area No. 2)are as follows: • Year Ending • June 30, Principal Interest Total • 2003 $ 30,000 $ 235,050 $ 265,050 • 2004 35,000 233,400 268,400 • 2005 35,000 231,607 266,607 • 2006 35,000 229,796 264,796 2007 115,000 225,480 340,480 • 2008-2012 675,000 1,015,276 1,690,276 • 2013-2017 900,000 783,541 1,683,541 • 2018-2022 1,180,000 475,483 1,655,483 2023-2026 1,000,000 105,259 1,105,259 • $ 4,005,000 $ 3,534,892 $ 7,539,892 41 • 1992 Series A Tax 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 Tax Allocation Revenue Bonds (Project Area No. 1 as • Amended) 1992 Series A. The Authority loaned a portion of the bond proceeds to the Palm Desert Redevelopment Agency to advance refund the 1985 Tax Allocation • Bonds, the 1985 Tax Allocation Refunding Bonds and the 1989 Tax Allocation Bonds. The remaining proceeds were loaned to fund additional development • projects. In July, 1997, bond proceeds from the 1997 Series Tax Allocation • Refunding Revenue Bonds were used to advance refund a portion ($78,755,000) of • the 1992 Series A Tax Allocation Revenue Bonds. The remaining bonds were currently refunded in April 2002. • • • 41 41 al 41 4 46 41 I • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities(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 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 2.7% to 6.125% per annum payable semi-annually 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 • 2003 $ 370,000 $ 897,502 $ 1,267,502 • 2004 390,000 875,569 1,265,569 • 2005 410,000 851,069 1,261,069 2006 435,000 825,190 1,260,190 • 2007 465,000 797,628 1,262,628 • 2008-2012 2,785,000 3,511,005 6,296,005 2013-2017 3,750,000 2,516,762 6,266,762 • 2018-2022 5,055,000 1,178,295 6,233,295 • 2023 1,200,000 36,750 1,236,750 • $ 14,860,000 $ 11,489,770 $ 26,349,770 • 0 A A 0 • • Q 0 Q 0 • • • • • • 47 • • City of Palm Desert Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities (Continued) • • 1995 Series A-Tax Allocation Revenue Refunding Bonds • 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 bonds • were loaned to the Palm Desert Redevelopment Agency to provide funds to refund in advance $6,430,000 of the 1988 Tax Allocation Bonds. Interest rates on the Bonds • vary from 3.80% to 5.55% with interest payable semi-annually on March 1 and September 1 with principal maturing annually on September 1. • The future debt service requirements on the 1995 Series A Tax Allocation Revenue • Refunding Bonds are as follows: • Year Ending • June 30, Principal Interest Total • 2003 $ 470,000 $ 190,847 $ 660,847 410 2004 495,000 166,957 661,957 • 2005 525,000 141,195 666,195 • 2006 555,000 113,378 668,378 2007 585,000 83,445 668,445 • 2008-2009 1,235,000 69,213 1,304,213 411 $ 3,865,000 $ 765,035 $ 4,630,035 • • 1997 Series Tax Allocation Refunding Revenue Bonds • On July 24, 1997, the Palm Desert Financing Authority issued $71,955,000 in Tax • Allocation Refunding Revenue Bonds (Project Area No. 1 as Amended) 1997 Series. The proceeds from the bonds were loaned to the Palm Desert Redevelopment • Agency to provide funds to refund in advance a portion of the 1992 Series A Tax • Allocation Revenue Bonds. The advance refunding resulted in an economic gain of • $1,148,752 (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$3,297,787. Interest rates on the bonds vary from 4.1% to 5.625% with interest payable semi- • annually on April 1 and October 1 with principal maturing annually on April 1. • . • • • •• I al 411 41 48 . • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities (Continued) • The future debt service requirements on the 1997 Series Tax Allocation Refunding • Revenue Bonds are as follows: • Year Ending • June 30, Principal Interest • Total • 2003 $ 2,205,000 $ 3,510,349 $ 5,715,349 • 2004 2,225,000 3,412,226 5,637,226 • 2005 2,260,000 3,310,988 5,570,988 2006 2,025,000 3,205,898 5,230,898 • 2007 2,065,000 3,110,724 5,175,724 • 2008-2012 12,300,000 13,886,926 26,186,926 2013-2017 15,890,000 10,319,922 26,209,922 • 2018-2022 20,805,000 5,449,836 26,254,836 O 2023 6,455,000 363,094 6,818,094 • $ 66,230,000 $ 46,569,963 $112,799,963 • • 1998 Series Tax Allocation(Housing Set-Asides Revenue Bonds • ® In January 1998, the Palm Desert Financing Authority issued $48,760,000 in Tax • Allocation (Housing Set-Aside) Revenue Bonds. The proceeds from the bonds were loaned to the Palm Desert Redevelopment Agency to finance the acquisition of • seven apartment complexes consisting of 725 rental units from the Housing Authority • of the County of Riverside. Interest rates on the bonds vary from 4.0% to 5.1% per annum payable semi-annually on April 1 and October 1 with principal maturing • annually on October 1. • The future debt service requirements on the 1998 Series Tax Allocation (Housing • Set-Aside)Revenue Bonds are as follows: O Year Ending • June 30, Principal Interest Total • 2003 $ 530,000 $ 2,346,560 $ 2,876,560 O 2004 550,000 2,324,960 2,874,960 2005 565,000 2,301,954 2,866,954 • 2006 590,000 2,277,410 2,867,410 • 2007 615,000 2,251,804 2,866,804 2008-2012 5,725,000 10,644,892 16,369,892 • 2013-2017 8,950,000 8,738,680 17,688,680 O 2018-2022 11,505,000 6,184,674 17,689,674 • 2023-2027 14,835,000 2,848,991 17,683,991 2028 3,450,000 87,975 3,537,975 0 • $ 47,315,000 $ 40,007,900 $ 87,322,900 • • • • • • 49 • • • City of Palm Desert Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities (Continued) • • 1998 Series Tax Allocation Revenue Bonds (Project Area No. 4) • On March 1, 1998, the Palm Desert Financing Authority issued $11,020,000 of Tax • Allocation Revenue Bonds (Project Area No. 4) Series 1998. The proceeds from the • bonds were loaned to the Palm Desert Redevelopment Agency to finance certain redevelopment activities of the Agency in Project Area No. 4. Interest rates on the • bonds vary from 4.0% to 5.0% per annum payable semi-annually on April 1 and October 1 with principal maturing annually on October 1. • • The future debt service requirements on the 1998 Series Tax Allocation Revenue Bonds (Project Area No.4)are as follows: • Year Ending • June 30, Principal Interest Total • 2003 $ 205,000 $ 551,197 $ 756,197 • 2004 220,000 541,797 761,797 • 2005 225,000 531,465 756,465 • 2006 230,000 520,415 750,415 2007 250,000 508,759 758,759 • 2008-2012 1,425,000 2,350,164 3,775,164 • 2013-2017 1,795,000 1,967,706 3,762,706 2018-2022 2,285,000 1,449,975 3,734,975 • 2023-2027 2,970,000 769,340 3,739,340 • 2028-2029 1,415,000 74,490 1,489,490 • $ 11,020,000 $ 9,265,308 $ 20,285,308 • • 2001 Series Tax Allocation Revenue Bonds (Proiect Area No. 4) • In November 2001, the Palm Desert Financing Authority issued $15,695,000 of Tax • Allocation Revenue Bonds (Project Area No. 4) Series 2001. The proceeds from the • bonds were loaned to the Palm Desert Redevelopment Agency to finance certain • redevelopment activities of the Agency in Project Area No. 4. Interest rates on the bonds vary from 3.5% to 4.7% per annum payable semi-annually on April 1 and • October 1 with principal maturing annually on October 1. • The future debt service requirements on the 2001 Series Tax Allocation Revenue • Bonds (Project Area No.4)are as follows: • Year Ending • 1 June 30, Principal Interest Total . 2003 $ 150,000 $ 707,275 $ 857,275 . 2004 150,000 702,025 852,025 2005 160,000 696,600 856,600 • 2006 170,000 690,825 860,825 . 2007 270,000 682,994 952,994 2008-2012 1,545,000 3,254,495 4,799,495 • 4 II 50 • IP O City of Palm Desert • Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities (Continued) 0 • Year Ending • June 30, Principal Interest Total 10 2013-2017 $ 1,875,000 $ 2,915,899 $ 4,790,899 O 2018-2022 1,850,000 1,999,079 3,849,079 2023-2027 3,425,000 2,270,354 5,695,354 • 2028-2031 6,100,000 867,600 6,967,600 O $ 15,695,000 $14,787,146 $30,482,146 , • O 2002 Series A Tax Allocation Refunding Revenue Bonds (Proiect Area No. 1, as 0 Amendedl j • In March 2002, the Palm Desert Financing Authority issued $22,070,000 of Tax • Allocation Refunding Revenue Bonds(Project Area No. 1, as amended), 2002 Series A. The proceeds from the bonds were loaned to the Palm Desert Redevelopment • Agency. A portion of the proceeds of the loan was used to prepay the prior loan, 0 which effected the current refunding of a like portion of the prior bonds. The remainder was used to finance certain redevelopment activities of the Agency in • Project Area No. 4. The bonds consist of term bonds of $10,905,000 term bonds at O 5.00% due April 1, 2025 and $11,165,000 term bonds at 5.10% due April 1, 2030. Interest is payable semi-annually on April 1 and October 1. Mandatory sinking fund 0 redemptions begin April 1, 2024. 0 The future debt service requirements on the 2002 Series A Tax Allocation Refunding O Revenue Bonds(Project Area No. 1, as amended)are as follows: 0 Year Ending 0 June 30, Principal Interest Total • 2003 $ - $ 1,170,399 $ 1,170,399 O 2004 - 1,114,665 1,114,665 2005 1,114,665 1,114,665 O 2006 - 1,114,665 1,114,665 2007 - 1,114,665 1,114,665 O 2008-2012 5,573,325 5,573,325 O 2013-2017 - 5,573,325 5,573,325 2018-2022 - 5,573,325 5,573,325 0 2023-2027 15,040,000 4,141,061 19,181,061 O 2028-2031 7,030,000 728,790 7,758,790 O $ 22,070,000 $27,218,885 $49,288,885 0 0 0 0 0 • • • 51 0 • • City of Palm Desert Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities(Continued) • • Below is a summary of the changes in Tax Allocation Bonds: • Balance at Advance Balance at • June 30, 2001 Additions Refunding June 30, 2002 • 1995 Series Tax Allocation • Revenue Bonds(Project Area No. 1 -Original Issue$24,025,000) $ 23,135,000 $ - $ 205,000 $ 22,930,000 • 1995 Series Tax Allocation Revenue Bonds (Project Area • No. 2-Original Issue$4,090,000) 4,035,000 - 30,000 4,005,000 • 1992 Series A Tax Allocation Revenue Bonds (Project Area • No. 1 as Amended Original Issue$100,000,000) 19,300,000 - 19,300,000 - • 1992 Series A Tax Allocation • Revenue Bonds(Project Area No.2-Original Issue$17,505,000) 15,210,000 - 350,000 14,860,000 • 1995 Series A Tax Allocation Revenue Refunding Bonds • (Original Issue$6,305,000) 4,315,000 - 450,000 3,865,000 • 1997 Series Tax Allocation Refunding Revenue Bonds (Original Issue$71,955,000) 68,180,000 - 1,950,000 66,230,000 • 1998 Series Tax Allocation • (Housing Set-Aside Revenue Bonds-Original Issue$48,760,000) 47,820,000 - 505,000 47,315,000 • 1998 Series Tax Allocation • Revenue Bonds (Project Area No. 4-Original Issue$11,020,000) 11,020,000 - - 11,020,000 • 2001 Series Tax Allocation Revenue Bonds (Project Area • No.4) - 15,695,000 - 15,695,000 • 2002 Series A Tax Allocation Refunding Revenue Bonds Project Area No. 1, as Amended) - 22,070,000 - 22,070,000 • • $ 193,015,000 $ 37,765,000 $ 22,790,000 $ 207,990,000 • c. Special Assessment Bonds Payable • • The City has Special Assessment Bonds Payable issued under the 1911 and 1915 • Special Improvement Acts and the 1982 Mello-Roos Community Facilities Act (1982 Bonds). The City has no liability to 1911 Act bondholders until assessments have been • collected from the property owner. Such liability is then recorded in the Agency Funds. • Therefore, the 1911 Bonds are not recorded as liabilities in the accompanying financial statements. • The City also has no liability to the 1915 Act bondholders or the bondholders of bonds • issued under the 1982 Mello-Roos Community Facilities Act until assessments are • collected on the tax rolls. However, the City may take certain actions to assume • secondary liability for all or part of 1915 Act Bonds and the 1982 bonds until such time as foreclosure proceedings are consummated. Assessments collected on the 1915 Act • Bonds and the 1982 Bonds will be recorded as liabilities in Debt Service Funds pursuant to the Governmental Accounting Standards Board Statement relating to Accounting and • Financial Reporting for Special Assessments. • • 52 • • • • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities (Continued) • Special assessment bonds payable, as described below, are recorded as long-term • liabilities, 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. 94-2 • The bonds were issued in an original amount of $1,832,000 in December 1994 to • finance the acquisition of certain public improvements with Assessment District No. • 94-2 (Sunterrace) (the District). The bonds are secured by unpaid assessments on parcels with the District. Under the 1915 Act, annual assessments on the unpaid • assessments sufficient to meet the scheduled debt service requirements are to be • included on the regular county tax bills for the assessed parcels for which there are unpaid assessments. Interest rates on the bonds vary from 5.75% to 8.20% with • interest payable semi-annually on March 2 and September 2 of each year with • principal maturing annually on September 2. • Debt service requirements to maturity are as follows: • Year Ending • June 30, Principal Interest Total • 2003 $ 55,000 $ 91,177 $ 146,177 • 2004 60,000 88,898 148,898 2005 60,000 82,245 142,245 • 2006 70,000 77,205 147,205 • 2007 75,000 71,513 146,513 • 2008-2012 465,000 255,606 720,606 2013-2016 375,000 47,765 422,765 • 0 $ 1,160,000 $ 714,409 $ 1,874,409 • Assessment District 94-3 • 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. 94-3 (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 are to be included on the regular county tax bills for the assessed parcels for which there are unpaid assessments. Interest rates on the bonds vary • from 4.70% to 6.80%with interest payable semi-annually on March 2 and September ® 2 with principal maturing annually on September 2. • • • • • • • • • 53 • • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities(Continued) • • Debt service requirements to maturity are as follows: • Year Ending • June 30, Principal Interest Total • 2003 $ 35,000 $ 81,488 $ 116,488 • 2004 40,000 79,180 119,180 2005 40,000 76,680 116,680 • 2006 40,000 74,140 114,140 • 2007 40,000 71,560 111,560 • 2008-2012 260,000 310,446 570,446 2013-2016 290,000 174,258 464,258 • 2017-2021 490,000 87,720 577,720 • $ 1,235,000 $ 955,472 $ 2,190,472 • • Assessment District 98-1 • The bonds were issued in an original amount of $34,760,000 in December 1998 to • 1 finance the acquisition and construction of certain infrastructure improvements with Assessment District No. 98-1 (Canyons at Bighorns) (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 are to be included on the regular county tax bills for the • assessed parcels for which there are unpaid assessments. Interest rates vary from • 4.60% to 6.05% with interest payable semi-annually on March 2 and September 2 with principal maturing annually on September 2. • Debt service requirements to maturity are as follows: • Year Ending • June 30, Principal Interest Total • • 2003 $ 635,000 $ 948,247 $ 1,583,247 2004 650,000 915,797 1,565,797 • 2005 685,000 881,412 1,566,412 • 2006 720,000 844,523 1,564,523 • 2007 755,000 805,058 1,560,058 2008-2012 4,460,000 3,324,956 7,784,956 • 2013-2017 5,920,000 1,811,633 7,731,633 • 2018-2019 2,900,000 178,173 3,078,173 I $ 16,725,000 $ 9,709,799 $ 26,434,799 . 1995 Revenue Bonds 41 41 In September 1995, the Palm Desert Financing Authority issued $7,540,000 1995 Revenue Bonds. The proceeds from the revenue bonds were loaned to the Assessment Districts to provide funds to refund in advance $900,000 Assessment , District No. 83-1 Bonds, $5,575,000 in Assessment District 84-1 Refunding Bonds and $3,200,000 in Assessment District No. 87-1 Bonds. These bonds were issued 41 under the 1915 Act to provide funds for capital improvements in the respective . assessment districts. Interest rates on the Bonds is paid at a rate of 6.0% with 54 41 • • City of Palm Desert • • Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities (Continued) • interest payable semi-annually on March 2 and September 2 with principal maturing • annually on September 1. • Debt Service requirements to maturity are as follows: • • Year Ending June 30, Principal Interest Total I . • 2003 $ 390,000 $ 112,500 $ 502,500 2004 420,000 88,200 508,200 • 2005 440,000 62,400 502,400 • 2006 470,000 35,100 505,100 2007 110,000 17,700 12 7,700 0 2008-2009 240,000 14,700 254,700 L • $ 2,070,000 $ 330,600 $ 2,400,600 • • As of June 30,2002 the principal amount to be repaid by each assessment district to 1 • pay-off the loans from the Financing Authority are as follows: I • Assessment District 84-1 Refunding $ 1,145,000 • Assessment District 87-1 870,000 • $ 2,015,000 • • 1997 Revenue Bonds • In December 1997, the Palm Desert Financing Authority issued $30,915,000 in 1997 • Revenue Bonds. The proceeds were loaned to the Assessment Districts to refund in advance $2,298,980 Assessment District No. 92-1 Bonds, $11,870,000 Community • Facilities District No. 91-1 (1992 Bonds), $6,945,000 Assessment District No. 94-1 • Bonds and $12,835,000 Community Facilities District No. 91-1 (1995 Bonds). These bonds were issued under the 1915 Act or the 1982 Mello-Roos Community Facilities • Act to provide funds for capital improvements in the respective assessment districts. • Debt service requirements to maturity are as follows: ® Year Ending • June 30, Principal Interest Total • • 2003 $ 815,000 $ 1,217,951 $ 2,032,951 2004 840,000 1,178,944 2,018,944 • 2005 875,000 1,136,910 2,011,910 ® 2006 920,000 1,091,576 2,011,576 2007 965,000 1,043,026 2,008,026 • 2008-2012 5,670,000 4,354,175 10,024,175 • 2013-2017 7,455,000 2,481,777 9,936,777 2018-2021 4,415,000 446,850 4,861,850 • • $ 21,955,000 $ 12,951,209 $ 34,906,209 • • • 55 • • • .City of Palm Desert Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities(Continued) • • As of June 30, 2002 the principal amount to be repaid by each assessment district to • pay-off the loans from the Financing Authority are as follows: • Assessment District 91-1 $ 20,989,000 Assessment District 92-1 33,000 • Assessment District 94-1 90,000 • $ 21,112,000 • • • Below is a summary of the changes in the Assessment Bonds Payable: • Payments and • Balance at Advance Balance at July 1,2001 Additions Refunding June 30, 2002 • Assessment District 94-2 $ 1,230,000 $ - $ 70,000 $ 1,160,000 • Assessment District 94-3 1,270,000 - 35,000 1,235,000 • Assessment District 98-1 20,005,000 - 3,280,000 16,725,000 • 1995 Revenue Bonds 2,840,000 - 770,000 2,070,000 • 1997 Revenue Bonds 23,070,000 - 1,115,000 21,955,000 - • $48,415,000 $ - $ 5,270,000 $ 43,145,000 • • d. Notes Payable • In May 2000, the Palm Desert Redevelopment Agency borrowed $850,000 to provide • funds for land acquisition. The note bears interest at 6.5% per annum with quarterly • interest payments commencing August 3, 2000 with a maturity date of May 3, 2004. Future debt service payments are as follows: • Year Ending • June 30, Principal Interest Total • 2003 $ - $ 55,250 $ 55,250 • 2004 850,000 55,401 905,401 0 $ 850,000 $ 110,651 $ 960,651 • • • • • • • I • I • 56 • • • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 6: Long-Term Liabilities (Continued) • e. Contract Payable • • The Coachella Valley Association of Governments (CVAG) funded in advance the City's share of costs to construct an interchange at Highway 10 at Monterey/Cook and I • Washington. At June 30, 2002, the estimated costs to be reimbursed to CVAG amounted • to $5,318,408. The City is obligated to pay $250,000 annually at June 30 of each year with the unpaid balance due and payable on or before June 30, 2005. • • Business-type Activities • Obligations under capital leases are as follows: • Associates Commercial Corporation • The present value of the minimum lease payment on radio • equipment was capitalized at $11,562 using an incremental borrowing interest rate of 14.0% at the inception of the lease. • The lease is payable in 36 monthly installments of$395, which • began December 4, 2001. $ 9,670 • The present value of the minimum lease payment on lawn I • mower equipment was capitalized at $454,067 using an incremental borrowing interest rate of 5.75% at the inception of • the lease. The lease is payable in 48 monthly installments of • $10,561, which began September 1, 1998. 20,971 • Textron Corporation • The present value of the minimum lease payment of golf carts • was capitalized at $288,630 using an incremental borrowing ® interest rate of 5.75% at the inception of the lease. The lease is payable in 48 monthly installments of $5,532, which began • October 8, 1998. 75,732 • Present value of net minimum lease payments $ 106,373 • Less: Current portion 100,317 • $ 6,056 • • The following is a schedule by year of future minimum lease payments and present • value of the net minimum lease payments for capital leases as of June 30, 2002. • Minimum Present Value of • Lease Net Minimum • Payments Lease Payments • 2003 $ 103,525 $ 100,317 • 2004 4,743 4,152 2005 1,972 1,904 • • Total $ 110,240 $ 106,373 • • • 57 • • • . City of Palm Desert Notes to Financial Statements (Continued) • Note 6: Long-Term Liabilities (Continued) • • Component Unit • Textron Financial Corporation • The present value of the minimum lease payments on food/beverage golf carts • was capitalized at $20,103 using an incremental borrowing interest rate of 6.17% • at the inception of the lease. The lease is payable in 36 monthly installments of • $540, which began January 15, 1999. The lease was paid in full during the current fiscal year. • Note 7: Deferred Compensation Plan • The City offers its employees a deferred compensation plan created in accordance with • Internal Revenue Code Section 457. The plan, available to all City employees, permits them • to defer a portion of their salary until future years. The deferred compensation is not • available to employees until termination, retirement, death or unforeseeable emergency. Pursuant to changes in August 1996, of IRC Section 457, in January, 1997, the City • established a trust in which all assets held by Nationwide Retirement Solutions, Inc. (NRS) • and ICMA Retirement Corporation (ICMA) were placed. The City does not have fiduciary responsibility for the plan assets held by NRS and ICMA. The assets, all property and rights • purchased with such amounts and all income attributable to such amounts, are held in trust for the exclusive benefit of the participants and the beneficiaries. The assets are no longer • the property of the City and as such are no longer subject to the claims of the City's general • creditors. As a result, the assets in the amount of $5,313,732 held by NRS and ICMA of the 457 Plan are no longer reflected in the City's financial statements. • Note 8: Deposits Payable • 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. All taxes on the "frozen" assessed valuation of the property are • allocated to the City and other taxing agencies. The Agency has entered into various pass- through agreements with other tax agencies to allocate their tax increment resulting from the • increase in assessed values after the adoption of the Redevelopment Plan. At June 30, • 2002, the Agency is holding $16,036,984 in trust on behalf of other taxing agencies related to specific pass-through agreements. • 411 41 41 • • • • a a 58 a a • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 9: Bond Reserve Requirements • At June 30, 2002 the fund balance reserve requirements and actual reserve balances are • presented as follows: • Requirement Actual • • Assessment District 94-2 $ 151,730 $ 158,191 Assessment District 94-3 121,420 126,161 • Assessment District 98-1 1,813,455 1,900,762 • 1995 Financing Authority Revenue Bonds 565,500 525,102 1995 Refunding Tax Allocation Bonds 630,500 795,169 • 1997 Financing Authority Revenue Bonds (A) 2,062,109 1,869,509 • (A) The City will fund the deficit in the reserve funds with interest earnings as noted in the • official statements. • Note 10: Defeased Obligations I . The City defeased certain 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. • At June 30, 2002, the outstanding amounts of the defeased obligations are as follows: • Assessment District No. 92-1 Bonds $ 1,485,000 • Community Facilities District No.91-1 Bonds(1992 Bonds) 9,795,000 Community Facilities District No. 91-1 Bonds (1995 Bonds) 11,280,000 • 1996 Series B Tax Allocation Bonds 8,170,000 • • Note 11: Pension Plan • a. Plan Description • The City of Palm Desert contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer public employee defined benefit pension • plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, • and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of • California. Benefit provisions and all other requirements are established by state statute • and city ordinance. Copies of PERS' annual financial report may be obtained from their executive office:400 P Street, Sacramento, CA 95814. • b. Funding Policy • Participants are required to contribute 7% of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The • City is required to contribute at an actuarially determined rate; the rate for fiscal year • 2001-2002 was 9.134% for non-safety employees of annual covered payroll. The contribution requirements of plan members and the City are established and may be • amended by PERS. • • • 59 • • City of Palm Desert • Notes to Financial Statements(Continued) • Note 11: Pension Plan (Continued) • • c. Annual Pension Cost • For 2002, the City's annual pension cost of $595,396 for PERS was equal to the City's • required and actual contributions. The required contribution was determined as part of the June 30, 1998 actuarial valuation using the entry age normal actuarial cost method. • The actuarial assumptions included (a) 8.25% investment rate of return (net of • administrative expenses), (b) projected annual salary increases of 3.75% to 14.2% depending on age, service and type of employment, and (c) 3.75% per year cost-of-living • adjustments. Both (a) and (b) included an inflation component of 3.5%. The actuarial • value of PERS assets was determined using techniques that smooth the effects of short- term volatility in the market value of investments over a three-year period (smoothed • market value). PERS' unfunded actuarial accrued liability is being amortized as a level • percentage of projected payroll on a closed basis that depends on the plan's entry into PERS. The remaining amortization period at June 30, 2000,was 16 years. • d. Three-Year Trend Information for PERS • • Fiscal Annual Pension Percentage Net Pension Year Cost(APC) APC Contributed. Obligation • • 6/30/2000 $ 435,019 100% $ - 6/30/2001 673,489 100% • - 6/30/2002 595,396 100% - • • e. Schedule of Funding Progress for PERS • Actuarial • Accrued UAAL as • Liability Actuarial Unfunded a%of • Actuarial (AAL) Entry Value of AAL ExnPsS Covered Covered Valuation Age Assets Assets Funded Payroll Payroll • Date (A) (B) (A-B) Ratio B/A (C) RA-B)/C) • 6/30/1999 $19,297,492 $24,207,927 $(4,910,435) 125.4 % $6,101,957 (80.47) % 0 6/30/2000 21,271,023 27,553,281 (6,282,258) 129.5 % 6,688,185 (93.93) % • 6/30/2001 27,397,875 29,011,890 (1,614,015) 105.9 % 7,038,563 (22.90) % • I I I I 41 41 1 41 41 41 60 41 _• • City of Palm Desert • Notes to Financial Statements(Continued) Note 12: Reserves of Fund Balance lill In the fund financial statements, reserves segregate portions of fund balances that are either • not available or have been earmarked for specific purposes. The various reserves • established as of June 30, 2002 were as follows: • RDA • Financing Authority RDA • Debt Capital Other • General Service Projects Governmental Fund Fund Fund Funds Totals • • Loans and notes receivable $ 2,100,000 $ - $ 5,615,040 $ 3,992,542 $ 11,707,582 • Property held • for resale - - - 210,473 210,473 Advances(1) 17,311,480 - - 13,419,000 30,730,480 • Deposits - - - 104,325 104,325 • Prepaid items 797,937 - 17,383 - 815,320 Encumbrances 422,837 - 1,335,085 7,527,379 9,285,301 • Continuing • appropriations 2,543,834 - 26,598,135 25,059,311 54,201,280 • Equipment - replacement 2,894,478 - - - 2,894,478 • Debt service 1,410,087 630,500 - 4,714,214 6,754,801 • Inventory 25,970 - 25,970 Low income housing • $27,506,623 $ 630,500 $ 33,565,643 $ 55,027,244 $116,730,010 0 • (1) In the general fund, fund balance for advances to other funds in the amount of • $2,055,000 is not reserved, as the revenue related to the sale of land has been deferred (see Note 14). • • Reserved for Loans and Notes Receivables - These reserves are set up to reflect the noncurrent portion of receivables so that they will not be considered as current funds available. • Reserved for Property Held for Resale - This reserve is for property held for resale and • has been set aside to indicate that these funds are not available to finance current • expenditures. • Reserved for Advances - These reserves are set up to reflect the advances to the e Redevelopment Agency so that they will not be considered as current funds.available. • Reserved for Deposits -These reserves are set up to reflect the noncurrent portion of the e deposits so that they will not be considered as current funds available. • Reserved for Prepaid Items - These reserves represent contractual obligations for cash payments made before June 30, 2002, but not recognized as an expenditure until after • July 1,2003. • • • • 61 0 • • City of Palm Desert Notes to Financial Statements(Continued) • Note 12: Reserves of Fund Balance(Continued) • • 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, 2002. • 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 Continuing Appropriations - These reserves are for appropriations for • capital projects, which are unexpended as of June 30, 2002 and are carried forward as • continuing appropriations to be expended in 2002-2003. • Reserved for Equipment Replacement - This reserve if for equipment replacement for • which the City has made a commitment to replace. Reserved for Debt Service - These reserves for Debt Service represent reserves •• accumulated by the City and the Redevelopment Agency that are legally restricted to the payment of long-term debt principal and interest amounts that mature in future years and • for compensated absences. • Reserved for Inventory - This reserve is to restrict fund balance, so that it will not be • considered as current funds available. • Reserved for Low Income Housinq - This reserve is for amounts set aside from tax • increment received by the Redevelopment Agency and is to be spent on projects • benefiting low-income families. • Note 13: Risk Management • The City maintains self-insurance programs for workers' compensation, general public liability • and auto liability. Claims are processed by an outside insurance service, which administers • the programs. For general liability and workers' compensation programs, the City is a member of the • California Joint Powers Insurance Authority (Authority). The Authority is comprised of 78 • Southern California member cities and is organized under a Joint Powers Agreement • pursuant to the California Government Code. The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase • excess insurance coverage. Each member city has a representative on the Board of • Directors with officers of the Authority being elected annually by the Board Members. • General Liability Annual deposits are paid by member cities and are adjusted retrospectively to cover • costs. Each member city, including Palm Desert, self-insures for the first$20,000 of each loss. Participating cities then share in claims from $20,000 to $500,000 per loss • occurrence. Specific coverage includes comprehensive and general automotive liability, • personal injury, contractual liability, errors and omissions and certain other coverage. Separate deposits are collected from the member cities to cover claims between • $500,000 and $10,000,000. Excess insurance coverage for claims between $10,000,000 and $50,000,000 has been purchased by the Authority. These deposits are also subject • to retrospective adjustment. • Workers' Compensation • 41 Period deposits are paid by member cities and are adjusted retrospectively to cover costs. Each member city has a specific retention level. The City of Palm Desert has a IP • 62 • • '• • City of Palm Desert • Notes to Financial Statements (Continued) • Note 13: Risk Management(Continued) • retention level to $50,000 and pays 100% of all losses incurred under $50,000. The City • does not share or pay for losses of other cities under $50,000. Losses between $50,000 • and $100,000 are prorated among all participating cities on the basis of each city's total losses under its retention level. Losses between $100,000 and $500,000 are prorated • among all participating cities on a payroll basis. Losses in excess of $500,000 are covered by excess insurance purchased by the participating cities, as a part of the pool, • to a limit of$5 million. This cost is also prorated on a payroll basis. • Estimates for all workers' compensation and general liabilities, up to the self-insured • levels have been recorded in the General Fund. At June 30, 2002, total estimated • workers' compensation and general liability claims payable, including a provision for incurred but not reported claims were$488,359 and $555,023,respectively. • • Changes in claims liabilities during the past two years are as follows: • June 30, 2001 June 30, 2002 • Claims payable- Beginning of Year $ 922,423 $ 859,034 • Incurred claims (including IBNR) 449,523 707,466 • Claims payments (512,912) (525,118) • Claims payable- End of Year $ 859,034 $ 1,041,382 ® Settled claims from General Liability and Workers' Compensation risks have not exceeded commercial insurance coverage for the past three years. • Note 14: Deferred Revenue • • Governmental Activities • Major Funds • General Fund • On March 13, 1997, the Redevelopment Agency (Agency) purchased land from • the City for the purpose of developing a second golf course financed by a note in • the amount of $2,055,000. The note has no specific due date and carries an • interest rate that equates the rate of return the City receives on its investment with the Local Agency Investment Fund (2.687% at June 30, 2002). Recognition • of the revenue from the sale has been deferred until it becomes available. • On March 13, 1997 and amended on June 4, 1997, the City entered into an • agreement with the Palm Desert Recreational Facilities Corporation • (Corporation) for the use of property at the City's Golf Resort (Desert Willow). • The agreement states the lease payments to the City in the amount of$8,000 per • month. Payment is due when the Corporation's revenues exceed its expenses. At June 30, 2002, the Corporation owed the City for 60 months of rent totaling • $480,000, which will be recognized as revenue by the City when the rent is paid • by the Corporation. • Other amounts reported as deferred revenues include $11,188 in miscellaneous • rents and loans which are considered not available. • • 63 • • • • City of Palm Desert Notes to Financial Statements (Continued) • • Note 14: Deferred Revenue(Continued) • Capital Proiects Funds • Interest in the amount of $271,644 due from a cooperative agreement with • Desert Community College District for the construction of a regional library has • been recorded as deferred revenue until it becomes available. • Other Governmental Funds • Special Revenue Funds • Loans receivable in the amount of $98,851 for home improvement loans are • recorded as deferred in the Community Development Block Grant Fund and • $57,337 of grant funds is deferred until expenditures are incurred in the Public • Safety Police Grant Special Revenue Fund. Prepaid rents in the amount of $17,719 from the 7 apartment complexes • operated by the Palm Desert Housing Authority will be recognized as revenue • when earned. • $447 in the Low Income Housing Fund is rent received in advance. • Debt Service Funds • Receivables in the amount of $40,805,257 represents future assessments to be • received from property owners in Assessment Districts 84-1, 87-1, 92-1, 94-2, • 94-3, 98-1 and Community Facilities District (CD) No. 91-1 to pay for long-term • obligations incurred in making capital improvements to each Assessment District • (See Note 6c). Recognition of the revenue from the assessments has been deferred until it becomes available. Once received, the monies will be used to • make annual debt service payments. • Business-type Activities • The balance of $68,623 represents the unused portions of prepaid golf fees, value of • unredeemed gift certificates and unearned rent. • Component Unit • The balance of$17,100 represents the unused portions of prepaid banquets. • • Note 15: Other Post-Employment Benefits Plan Description , The City offers the Public Agency Retirement Systems (PERS) Health Care Program to its retirees. The City contributes $16 per month to PERS on behalf of each retiree eligible for PERS. In addition, the City will make an additional contribution towards . certain retirees'premiums under a program called the Retiree Service Stipend. , 41 i 64 • • City of Palm Desert • Notes to Financial Statements (Continued) • Note 15: Other Post-Employment Benefits (Continued) • A retiree will be eligible for the Retiree Service Stipend if: • • 1. retirement occurs from the City and from PERS simultaneously; 2. the retiree has attained age 50 and has completed 10 years or more of continuous • service with the City; and • 3. the retiree meets any other requirements as specified in the Retiree Service Stipend. • The City provides continued coverage for eligible retirees for the further lifetime of retirees and their spouses and/or eligible dependents, provided the above eligibility • criteria are met. Spousal and dependent coverage is provided during the retiree's lifetime • only. • The percentage of the premium paid by the City on behalf of an eligible retiree is • according to the following schedule, based on years of continuous service with the City: • Years of Service City Percent • Less than 10 0% • 10 50% • 11 55% 12 60% • 13 65% • 14 70% 15 or more 75% • ® Accounting and Funding • The Retiree Service Stipend is not actuarially funded. The assets for the retiree service • stipend are accounted for in an agency fund. There were 10 participants in the plan. The premiums paid amounted to $35,546. An actuarial valuation completed for the plan as of • July 1, 1999, indicated the amount of the actuarial liability to current and future liabilities • to be $4,021,000. • Note 16: Conduit Debt Obligation • Series 1996-$7,010,000 Lease Revenue Bonds 1 ® In August 1996, the Palm Desert Financing Authority (the Authority) issued $7,010,000 in • Lease Revenue Bonds. The proceeds of the Bonds were used to finance the • construction of a County Administrative Center and related facilities upon a site located in the City of Blythe, County of Riverside, fund a reserve account, fund approximately eight • months of capitalized interest and pay costs of issuance of the Bonds. The Authority will • lease the site from the County of Riverside (the County) pursuant to a site lease dated August 1, 1996, by and between the Authority and the County and will lease back to the • Authority the site and the facilities (together"the Project") pursuant to a Lease Agreement dated as of August 1, 1996, by and between the Authority and County (the "Lease"). • Under the Lease, the County will pay the Trustee Base Rental Payments to the trustee in • an amount equal to the scheduled debt service payments on the Bonds. The Authority will assign its right to receive the Base Rental payments to the trustee for the benefit of • the owners of the Bonds. The debt service on the bonds are to be paid solely from lease • payments made by the County. The Authority has no obligation to make the debt service payments in the event that the County is not able to make the required base rental • payments. At June 30, 2002, the outstanding amount was$6,510,000. • • 65 • • City of Palm Desert • Notes to Financial Statements (Continued) • Note 17: Other Disclosures • • The Palm Desert Redevelopment Agency Debt Service Fund has a deficit fund balance of $7,274,669, which will be eliminated through future receipts of tax increment revenue. • The Palm Desert Recreational Facilities Corporation has a net asset deficit of $508,026, • which will be eliminated by increasing revenues through banquet reservations. • Note 18: Subsequent Event • • In July 2002, the Financing Authority issued $17,310,000 Tax Allocation Refunding Revenue • Bonds (Project Area No. 2), 2002 Series A. The proceeds of the bonds will be disbursed to make a loan to the Redevelopment Agency. The Agency will use the proceeds of the loan to • prepay certain outstanding indebtedness of the Agency and to finance certain redevelopment • activities within or of benefit to the Project Area. The bonds bear interest at rates varying from 2.7% to 5.0%. Principal maturities begin August 1, 2003 and continue through August • 1, 2022. • In August 2002, the Financing Authority issued Tax Allocation (Housing Set-Aside) Revenue • Bonds, Series 2002 in the amount of $12,100,000. The proceeds of the bonds will be disbursed to make a loan to the Redevelopment Agency. The Agency will use the proceeds • of the loan to finance certain bf the low and moderate income housing activities of the Agency • and to finance costs of issuance of the bonds. The bonds bear interest at rates ranging from 2.0% to 4.9%, principal maturities begin October 1, 2003 and continue through October 1, • 2031. • • • • • • • • 41 • • a 1 a a 66 , Required Supplementary Information i CITY OF PALM DESERT Schedule 2 1 SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE ( BUDGET AND ACTUAL-PROP A FIRE TAX SPECIAL REVENUE FUND ( For the year ended June 30,2002 4 Favorable 4 (Unfavorable) 4 Budgeted Amounts Variance with ' Original Final Actual Final Budget REVENUES: 4 Taxes $ 1,420,000 $ 1,420,000 $ 1,420,321 $ 321 , Investment income 34,000 34,000 59,389 25,389 , TOTAL REVENUES 1,454,000 1,454,000 1,479,710 25,710 4 EXPENDITURES: Non-departmental: 4 General Government 10,500 10,500 11,131 (631) . Public safety 3,199,605 3,199,605 2,084,190 1,115,415 41 TOTAL EXPENDITURES 3,210,105 3,210,105 2,095,321 1,114,784 • EXCESS OF REVENUES OVER • ' (UNDER)EXPENDITURES (1,756,105) (1,756,105) (615,611) 1,140,494 • OTHER FINANCING SOURCES(USES): • Transfers in 1,428,605 1,428,605 1,428,605 - . EXCESS OF REVENUES AND • OTHER FINANCING SOURCES . OVER(UNDER)EXPENDITUES (327,500) (327,500) 812,994 1,140,494 • FUND BALANCE-BEGINNING OF YEAR 1,891,360 1,891,360 1,891,360 - • FUND BALANCE-END OF YEAR $ 1,563,860 $ 1,563,860 $ 2,704,354 $ 1,140,494 • r • . • • • • • • • • 41 68 • • • CITY OF PALM DESERT Schedule 1 • • SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET TO ACTUAL-GENERAL FUND I • 4.1. For the year ended June 30,2002 • Favorable • - (Unfavorable) • Budgeted Amounts Variance with Original Final Actual Final Budget Ilip REVENUES: • Taxes $26,462,000 $26,070,000 $26,676,756 $ 606,756 • Licenses and permits 815,400 1,088,400 1,133,922 45,522 Intergovernmental revenues 2,790,500 3,691,585 3,778,651 87,066 • Charges for services 476,000 936,000 975,841 39,841 • Fines and forfeitures 85,000 115,000 170,534 55,534 Use of money and property 1,759,000 2,271,000 2,379,764 108,764 Other revenue 103,000 103,000 172,397 69,397 ® TOTAL REVENUES 32,490,900 34,274,985 35,287,865 1,012,880 I . • EXPENDITURES: • i • General government 9,756,775 11,201,056 10,204,026 997,030 Contributions to other agencies 682,655 867,655 843,002 24,653 Public safety 12,542,156 12,791,729 12,119,147 672,582 • Public works 6,120,100 7,055,905 4,612,488 2,443,417 Parks,recreation and culture 2,840,850 2,914,087 2,580,841 333,246 Capital outlay - 581,652 581,652 - • • TOTAL EXPENDITURES 31,942,536 35,412,084 30,941,156 4,470,928 • • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES 548,364 (1,137,099) 4,346,709 5,483,808 • OTHER FINANCING SOURCES(USES): • Transfers in 847,000 949,000 870,624 (78,376) • Transfers out (1,559,605) (1,576,605) (1,566,863) 9,742 • TOTAL OTHER FINANCING SOURCES(USES) (712,605) (627,605) (696,239) (68,634) • EXCESS OF REVENUES AND • OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES • AND OTHER FINANCING USES (164,241) (1,764,704), 3,650,470 5,415,174 ® FUND BALANCE-BEGINNING OF YEAR 47,683,711 47,683,711 47,683,711 - • FUND BALANCE-END OF YEAR $47,519,470 $45,919,007 $51,334,181 $ 5,415,174 • • O 67 Supplementary Schedules • • • • GENERAL FUND • • The General Fund is used to account for all financial resources traditionally associated with government, except those required to be accounted for in another fund. It is the • primary operating fund which includes the operating budgets for all the departments and ® the majority of the City's tax revenues. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 69 • • • • CITY OF PALM DESERT Schedule 3 • • SCHEDULE OF REVENUES AND TRANSFERS IN- • BUDGET AND ACTUAL-GENERAL FUND • • For the year ended June 30,2002 • ' Favorable • (Unfavorable) • Budgeted Amounts Variance with • Original Final Actual Final Budget TAXES: • Property taxes $ 2,440,000 $ 2,440,000 $ 2,765,556 $ 325,556 • Property transfer tax 350,000 498,000 497,967 (33) Timeshare mitigation fee 250,000 250,000 158,302 (91,698) • Sales tax 13,830,000 13,000,000 13,027,395 27,395 • Business license tax 740,000 790,000 898,113 108,113 • Job valuation fees 40,000 40,000 39,226 (774) Transient occupancy tax 7,000,000 7,000,000 7,043,454 43,454 • Franchises 1,800,000 2,040,000 2,131,820 91,820 • Penalties and interest on taxes 12,000 12,000 114,923 102,923 TOTAL TAXES 26,462,000 26,070,000 26,676,756 606,756 is • LICENSES AND PERMITS:. • Building permits 730,000 1,003,000 1,002,840 (160) Grading permits 35,000 35,000 61,257 26,257 • Valet parking permits 400 400 250 (150) • Encroachment permits 10,000 10,000 14,545 4,545 Miscellaneous permits - - 3,396 3,396 • Business regulatory permits 40,000 40,000 51,634 11,634 . TOTAL LICENSES AND PERMITS 815,400 1,088,400 1,133,922 45,522 • INTERGOVERNMENTAL REVENUES: • County grants - 89,000 119,355 30,355 • Federal grants - - 38,972 38,972 Motor vehicle in-lieu fees 1,830,000 2,382,000 2,515,214 133,214 • Off highway in-lieu fees 500 500 1,102 602 • Subventions from state 140,000 40,000 39,495 (505) • Monthly parking bail 20,000 20,000 28,380 8,380 Reimbursement RDA costs 465,000 465,000 394,948 (70,052) • Other reimbursements 335,000 695,085 641,185 (53,900) • TOTAL INTERGOVERNMENTAL REVENUES 2,790,500 3,691,585 3,778,651 87,066 I I I I I (Continued) I I I 70 • • i • • • CITY OF PALM DESERT Schedule 3 • • SCHEDULE OF REVENUES AND TRANSFERS IN- BUDGET AND ACTUAL-GENERAL FUND • (CONTINUED) • • For the year ended June 30,2002 • Favorable • (Unfavorable) Budgeted Amounts Variance with • Original Final Actual Final Budget • CHARGES FOR SERVICES: • Subdivision fees $ 65,000 $ 287,000 $ 287,361 $ • 361 Zoning fees 15,000 15,000 16,501 1,501 • Plan check fees 375,000 613,000 • 612,845 (155) • Sale of maps and publications 4,000 4,000 16,603 12,603 Microfilm fees 17,000 17,000 23,016 6,016 • Other fees - - 19,515 19,515 • TOTAL CHARGES FOR SERVICES 476,000 936,000 975,841 39,841 • FINES AND FORFEITURES: I • Vehicle code fines 50,000 80,000 104,642 24,642 • Municipal court fines 35,000 35,000 65,892 30,892 TOTAL FINES AND FORFEITURES 85,000 115,000 170,534 55,534 • • USE OF MONEY AND PROPERTY: • Interest income 1,100,000 1,561,000 1,583,965 22,965 Interest on advances 600,000 651,000 653,102 2,102 • Interest on notes receivable 59,000 59,000 142,697 83,697 • TOTAL USE OF MONEY AND PROPERTY 1,759,000 2,271,000 2,379,764 108,764 • OTHER REVENUES: • Code compliance 5,000 5,000 6,667 • 1,667 Strong motion instrument fee 15,000 15,000 16,912 1,912 Special investigation fee 1,000 1,000 490 (510) • • Certificate of compliance fee 2,000 2,000 3,425 1,425 • Nuisance abatement tax 5,000 5,000 15,583 10,583 Abandoned vehicle abatement 5,000 5,000 30,855 25,855 • Rental income 20,000 20,000 43,955 23,955 • Other revenue 50,000 50,000 54,510 4,510 • TOTAL OTHER REVENUES 103,000 103,000 172,397 69,397 • • TRANSFERS IN 847,000 949,000 870,624 (78,376) • TOTAL REVENUES $ 33,337,900 $35,223,985 $36,158,489 $ 934,504 • • • • • • • 71 • • • CITY OF PALM DESERT Schedule 4 • • SCHEDULE OF EXPENDITURES AND TRANSFERS OUT- • BUDGET AND ACTUAL-GENERAL FUND • • • For the year ended June 30,2002 • Favorable • (Unfavorable) • Budgeted Amounts Variance with • Original Final Actual Final Budget GENERAL GOVERNMENT-DEPARTMENTAL: • City council $ 213,200 $ 213,200 $ 166,801 $ 46,399 • City clerk 476,700 384,342 318,735 65,607 Legislative advocacy 47,500 47,500 37,018 10,482 • Elections - 120 99 21 • City attorney 144,000 144,000 144,000 - Legal special services 300,000 980,000 978,032 1,968 • City manager 559,350 563,590 535,882 27,708 • Community Services 865,050 963,839 903,232 60,607 • Finance 1,041,750 1,054,531 967,611 86,920 Auditing 55,000 44,750 44,715 35 • Human resources 565,600 723,102 707,572 15,530 • General services 415,050 529,762 504,793 24,969 Data processing 614,100 587,045 560,066 26,979 • Unemployment insurance 10,900 14,100 14,035 65 • Insurance 600,600 600,600 579,115 21,485 • Community promotions 2,379,625 2,623,494 2,262,129 361,365 Code enforcement 532,150 532,150 506,195 25,955 • Community development 732,700 920,431 717,800 202,631 • Art committee 30,500 115,500 107,922 7,578 Marketing 173,000 159,000 148,274 10,726 • TOTAL GENERAL GOVERNMENT- • DEPARTMENTAL 9,756,775 11,201,056 10,204,026 997,030 • GENERAL GOVERNMENT-NONDEPARTMENTAL: • Contributions to other agencies 682,655 867,655 843,002 24,653 • PUBLIC SAFETY: • Police services $ 9,418,742 $ 9,566,071 $ 9,343,753 $ 222,318 • Animal regulation 115,000 118,421 111,100 7,321 • Nuisance abatement 10,000 12,000 11,825 175 Demolition 5,000 5,000 - 5,000 • Traffic safety 800,000 916,350 641,508 274,842 • • • • (Continued) • • • 72 • 0 • • • CITY OF PALM DESERT Schedule 4 • • SCHEDULE OF EXPENDITURES AND TRANSFERS OUT- BUDGET AND ACTUAL-GENERAL FUND• (CONTINUED) • • For the year ended June 30,2002 • Favorable • (Unfavorable) Budgeted Amounts Variance with • Original Final Actual Final Budget . • PUBLIC SAFETY(CONTINUED): • Development Services 740,934 736,393 623,973 112,420 Building and safety 1,452,480 1,437,494 1,386,988 50,506 • Health and welfare - - - - • • TOTAL PUBLIC SAFETY 12,542,156 12,791,729 12,119,147 672,582 • PUBLIC WORKS: • Administration 2,075,200 1,903,600 1,745,513 158,087 • Street maintenance 1,802,200 1,440,939 1,378,064 62,875 Street resurfacing 1,250,000 2,699,531 608,616 2,090,915 • Curb and gutter 90,000 90,000 58,715 31,285 • Cross cutter 80,000 160,000 160,000 - Tie in paving 35,000 92,542 72,718 19,824 • Stripping 75,000 129,139 119,460 9,679 • Corporate yard 56,600 56,600 47,199 9,401 • Equipment 243,000 169,000 158,246 10,754 Building maintenance 162,200 162,200 153,348 8,852 • Portola community center 62,900 77,900 71,634 6,266 • Auto 123,000 39,454 20,342 19,112 Storm water permit 65,000 35,000 18,633 16,367 • TOTAL PUBLIC WORKS 6,120,100 7,055,905 4,612,488 2,443,417 • • PARKS,RECREATION AND CULTURE: Park maintenance 517,200 517,600 383,622 133,978 • Civic center park 1,547,950 1,558,282 1,407,981 150,301 • Landscape service 463,300 541,430 508,675 32,755 Visitors center 312,400 296,775 280,563 16,212 • TOTAL PARKS,RECREATION AND CULT 2,840,850 2,914,087 2,580,841 333,246 • ® CAPITAL OUTLAY Departmental capital outlay - 571,852 571,852 - • Land purchase - 9,800 9,800 - • TOTAL CAPITAL OUTLAY - 581,652 581,652 - • TRANSFERS OUT 1,559,605 1,576,605 1,566,863 9,742 • • TOTAL EXPENDITURES $33,502,141 $ 36,988,689 $32,508,019 $ 4,480,670 • • • 73 • • • • • • • • • • • • • • • This page intentionally left blank • • • • • • • • • • • • • • • 41 • 41 41 • 74 Other Government Funds • . • • CITY OF PALM DESERT Schedule 5 1 • • COMBINING BALANCE SHEET • OTHER GOVERNMENTAL FUNDS • June 30,2002 • Total • Other • Special Debt Capital Governmental Revenue Service Project Funds • ASSETS • Cash and investments $44,244,624 $ 6,934,107 $29,503,805 $ 80,682,536 Cash with fiscal agent -restricted 247,172 4,993,459 14,009,890 19,250,521 • Receivable 5,636,369 112,303 789,868 6,538,540 • Due from other funds - - 101,050 101,050 Assessments receivable - 40,805,257 - 40,805,257 • Property held for resale 210,473 - - 210,473 I • Advances to other funds 654,000 - 12,765,000 13,419,000 Prepaid items and deposits 81,845 - 104,325 186,170 • TOTAL ASSETS $51,074,483 $ 52,845,126 $ 57,273,938 $ 161,193,547 • • LIABILITIES AND FUND BALANCES • LIABILITIES: • Accounts payable $ 1,792,173 $ 3,414 $ 854,393 $ 2,649,980 Accrued liabilities 56,634 - 2,581 59,215 • Deposits payable 244,882 - 147,475 392,357 • Deferred revenue 174,354 40,805,257 - 40,979,611 • TOTAL LIABILITIES 2,268,043 40,808,671 1,004,449 44,081,163 • FUND BALANCES: • Reserved: Loans receivable 3,992,542 - - 3,992,542 • Property held for resale 210,473 - - 210,473 • Deposits - - 104,325 104,325 Advances to other funds 654,000 - 12,765,000 13,419,000 • Encumbrances 4,735,304 - 2,792,075 7,527,379 • Continuing appropriations 17,695,860 - 7,363,451 25,059,311 Debt service - 4,714,214 - 4,714,214 • Unreserved: • Designated for special revenue purposes 21,577,201 - - 21,577,201 • Designated for debt service 7,322,241 - 7,322,241 Designated for capital outlay - . - 33,244,638 33,244,638 • Undesignated(deficit) (58,940) - - (58,940) • TOTAL FUND BALANCES 48,806,440 12,036,455 56,269,489 117,112,384 • TOTAL LIABILITIES • AND FUND BALANCES $51,074,483 $ 52,845,126 $ 57,273,938 $ 161,193,547 • • • • 75 • • • • CITY OF PALM DESERT Schedule 6 • • COMBINING STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS • • For the year ended June 30,2002 • Total • Other • Special Debt Capital Governmental REVENUES: Revenue Service Project Funds • Taxes $ 5,245,777 $ - $ - $ 5,245,777 • Special assessments collected 193,909 6,490,493 - 6,684,402 Licenses and permits - - 283,090 283,090 • Intergovernmental revenues 3,320,782 - 2,649,243 5,970,025 • Fines and forfeitures 134,663 - - 134,663 Investment income 1,314,241 320,577 1,378,043 3,012,861 • Rental income 4,183,936 - - 4,183,936 • Other revenues 701,587 14,022 225 715,834 TOTAL REVENUES 15,094,895 6,825,092 4,310,601 26,230,588 • EXPENDITURES: • Current: - • General governmental-departmental - - 366,002 366,002 • General governmental-nondepartmental 6,090,884 - - 6,090,884 Public safety 165,062 - - 165,062 0 Public works 1,920,174 - 5,380,773 7,300,947 • Capital outlay 7,025,826 - 6,786,087 13,811,913 Debt service: • Interest and fiscal charges - 2,937,587 - 2,937,587 Principal retirement - 5,270,000 250,000 5,520,000 • TOTAL EXPENDITURES 15,201,946 8,207,587 12,782,862 36,192,395 • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES (107,051) (1,382,495) (8,472,261) (9,961,807) • OTHER FINANCING SOURCES(USES): • Transfers in 15,349,928 3,166,332 6,332,454 24,848,714 • Transfers out (10,352,222) (5,997,919) (3,156) (16,353,297) • Sale of property 204,000 - 562,279 766,279 TOTAL OTHER • FINANCING SOURCES(USES) 5,201,706 (2,831,587) 6,891,577 9,261,696 • • EXCESS OF REVENUES AND • OTHER FINANCING SOURCES • OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES 5,094,655 (4,214,082) (1,580,684) (700,111) • • FUND BALANCES-BEGINNING OF YEAR 43,711,785 16,250,537 57,850,173 117,812,495 • FUND BALANCES-END OF YEAR $ 48,806,440 $ 12,036,455 $ 56,269,489 $ 117,112,384 • • • • 76 • 0 Other Government Funds- Special Revenue • • • • OTHER GOVERNMENTAL FUNDS—SPECIAL REVENUE • • • Special Revenue Funds are used to account for proceeds of specific revenue sources other • than expendable trust that are legally restricted to expenditures for specific purposes. • Traffic Safety Fund—Traffic and court fines are collected in these funds. A transfer from • this Fund to the General Fund is made at the end of the fiscal year by council action to be • applied toward the eligible expenditures permitted by law. • Gas Tax Fund—Portions of the tax rate per gallon levied by the State of California on all • gasoline purchases are allocated to cities throughout the State. These funds are restricted • to expenditure for transit and street-related purposes. • Measure A Fund — In 1988, Riverside County voters approved a half-cent sales tax, • known as Measure A, to fund a variety of highway improvements, local street and road • maintenance, commuter assistance and specialized transit projects. This fund is used to • collect this tax and pursuant to the provision of Measure A (Ordinance No. 88-1 of the County of Riverside) it is restricted for local street and road expenditures only. • • Housing Mitigation Fee Fund — This fund is•used to account for fees collected from • construction of commercial and office buildings for low and moderate income mitigation purposes. At the end of the fiscal year, a transfer is made by council action to transfer • funds collected during the fiscal year to the Redevelopment Fund to be used strictly for • projects and programs that benefit the low and moderate income households. • Community Development Block Grant Fund — This fund is used to account for the • receipts and expenditures of CDBG funds received from the U.S. Department of Housing • and Urban Development. New Construction Tax Fund — This fund is used to account for tax collected upon application to the City for a building permit from every person/entity for the construction • of any new building or addition or trailer space in the city according to a fee schedule. Its • use is restricted for the acquisition and development of public facilities such as parks, • playgrounds and public structures. • Planned Drainage Fund— This fund is used to account for off-site drainage fees based on • and established fee schedule collected prior to approval of the final map in the case of • land being subdivided or prior to the issuance of a building permit in the case of • construction or improvement of subdivided land. • • • • • • • 77 • • • • OTHER GOVERNMENTAL FUNDS—SPECIAL REVENUE • (CONTINUED) • • • Park and Recreation Facilities Fund — This fund is used to account for fees collected for residential and subdivision developments collected either at the time grading permits are • paid or prior to the approval of the final map. Its use is restricted for expenditures related • to park development, maintenance and equipment. • Traffic Signals Fund — This fund is used to account for fees collect for residential, • commercial and industrial developments collected either at the time grading permits are • paid or prior to the approval of the final map. Its use is restricted for expenditures related • to the acquisition and maintenance of traffic signals. • Recycling Fund—This fund is used to account for resources resulting form lower land fill • tipping fees of $8.50 per ton which took effect in July, 1996. Due to limited landfill • resources, it will be used for the implementation of appropriate long-range plans to be • determined by the City Council for municipal solid waste disposal. • Public Safety Police Grants Fund — This fund is used to account for grants received from • the U.S. Department of Justice under the Local Law Enforcement Block Grants Program • for the purpose of purchasing equipment related to public safety. • Library Foundation Fund — This fund is used to account for resources set aside for the • specific purpose of purchasing library books and materials for the Multi-Agency Library • Foundation, a non-profit entity. • El Paseo Assessment District Fund — This fund is used to collect assessments on all • business establishments located within the boundaries set for the El Paseo parking and • business improvement area based on a fee schedule established for the various types of • businesses. Collections are made in the same manner and at the same time as the City • business license fees. Proceeds from all charges are used for the promotion of business activities in the area. • • Air Quality Management Fund — This fund accounts for receipts from South Coast Air • Quality Management District, one-third of which is disbursed to the Coachella Valley Association of Governments. The remaining two-thirds are spent for programs that • promote the goal of attaining Federal and State air quality standards. • City-Wide Business License Fund — This fund accounts for receipts received from • College of the Desert Alumni Association Fair collected form all street fair vendors at • $2.00 per day for each space. Fifty percent of the proceeds are spent for city-wide • business promotion and the other fifty percent is transferred to the General Fund for • partial business licensing cost recovery. • • ' • • 78 • • • • • • OTHER GOVERNMENTAL FUNDS—SPECIAL REVENUE • (CONTINUED) • • Various Landscape and Lighting District Funds — These funds are used to account for • expenditures and receipts of property taxes and service fees levied to the property owners • in the various landscaping and lighting districts which were formed to provide • landscaping and street lighting maintenance. Individual landscaping and lighting funds • are set up for Districts No. I through 15. • AIPP Maintenance Fund— This fund is used to account for monies set aside to maintain • the artwork in the City of Palm Desert. • Child Care Program Fund — This fund is used to collect funds from developers for the • purpose of providing child care programs. • • Golf Course Maintenance Fund — This fund is used to offset the cost of capital improvements, equipment purchases, perimeter maintenance, pay off assessments and • other nonrecurring costs that will arise as a result of the new Desert Willow Golf Course • Resort. Funding source for the Golf Course Maintenance Fund are collections from the • IROC time share project. I • Redevelopment Agency Low Income Housing Fund — This fund is used to account for • monies set aside in accordance with Community Redevelopment Law for the provision of • affordable housing for low and moderate income persons and families. • Redevelopment Agency Housing Authority Fund — This fund is used to account for • revenues and expenditures related to rental units owned by the Housing Authority. • • • 0 • • 0 0 0 • • • • • • • • 79 41 • • • CITY OF PALM DESERT • COMBINING BALANCE SHEET • NON-MAJOR SPECIAL REVENUE FUNDS • • June 30,2002 • • • Traffic Gas • Safety Tax • ASSETS • Cash and investments $ - $ 162,892 Cash with fiscal agent - - • Accounts receivable - - • Interest receivable - - Due from other governmental agencies 32,376 89,518 • Loans receivable - - • Notes receivable - - • Deposits - - Property held for resale - - • Advances to other funds - - • TOTAL ASSETS $ 32,376 $ 252,410 • LIABILITIES AND FUND BALANCES • LIABILITIES: • Accounts payable $ - $ - Accrued liabilities - - • Deposits payable - - • Deferred revenue - - TOTAL LIABILITIES - - • FUND BALANCES: •• Reserved: • Loans receivable - - • Property held for resale - - • Advances to other funds - - Encumbrances - - • Continuing appropriations - - • Unreserved: Designated for special revenue purposes 32,376 • 252,410 • Undesignated(deficit) - - • TOTAL FUND BALANCES 32,376 252,410 I TOTAL LIABILITIES AND FUND BALANCES $ 32,376 $ 252,410 I I I is I 80 • I • • • Schedule 7 • • • • • • Housing Community New • Mitigation Development Construction - Planned in Measure A Fee Block Grant Tax Drainage • $ 6,686,002 $ - $ 35,476 $ 4,079,874 $ 5,401,564 • - - - - _ • 23 • 1,183,565 - - - - • - - 98,851 - - • - - - - - - - 654,000 - • $ 7,869,567 $ - $ 134,350 $ 4,733,874 $ 5,401,564 • • • $ 1,259,348 $ - $ 781 $ 26,808 $ 13,440 • - - - - • - - 98,851 - . • 1,259,348 - 99,632 26,808 13,440 • • • - - - - - • - - - 654,000 - • 3,531,822 - 21,120 173,510 400,440 • 3,066,944 - - 2,158,084 227,870 in 11,453 - 13,598 1,721,472 4,759,814 in 6,610,219 - 34,718 4,707,066 5,388,124 • • $ 7,869,567 $ - $ 134,350 $ 4,733,874 $ 5,401,564 in in • . • • • 81 • • • • CITY OF PALM DESERT • COMBINING BALANCE SHEET - • NON-MAJOR SPECIAL REVENUE FUNDS • (CONTINUED) • June 30,2002 • • • Park and • Recreation Traffic Facilities Signals • ASSETS • Cash and investments $ 2,176,648 $ 1,050,538 Cash with fiscal agent - - • Accounts receivable - - • Interest receivable - - • • Due from other governmental agencies - - Loans receivable - - • Notes receivable - - • Deposits - - Property held for resale - - • Advances to other funds - - • TOTAL ASSETS $ 2,176,648 $ 1,050,538 • LIABILITIES AND FUND BALANCES • LIABILITIES: • Accounts payable $ 3,500 $ - Accrued liabilities - - • Deposits payable - - • Deferred revenue - - TOTAL LIABILITIES 3,500 - • FUND BALANCES: • . Reserved: • Loans receivable - - . Property held for resale - - Advances to other funds - - • Encumbrances - - 41 Continuing appropriations 1,922,000 187,500 Unreserved: Designated for special revenue purposes 251,148 863,038 I TOTAL FUND BALANCES 2,173,148 1,050,538 • I TOTAL LIABILITIES AND FUND BALANCES $ 2,176,648 $ 1,050,538 . See independent auditors'report. , 41 41 41 82 41 • • • Schedule 7 • • • • • • • Public Safety El Paseo Air City Wide • Police Library Assessment Quality Business • Recycling Grants Foundation District Management License • $ 2,972,324 $ 89,353 $ 5,257 $ 28,739 $ 65,088 $ 79,306 • 126,507 - - - 11,700 2,168 • 12,700 - - - - - • - - - - - - • - - - - - _ • - - - - - O $ 3,111,531 $ 89,353 $ 5,257 $ 28,739 $ 76,788 $ 81,474 • • • $ - $ 26,257 $ - $ 3,709 $ 8,347 $ 19,035 • - - - - - - • 447 57,337 - - - - • 447 83,594 - 3,709 8,347 19,035 • • • _ • - - - - - _ • 181,293 64,699 - 3,000 - 282 145,682 - • • 2,784,109 - 5,257 22,030 68,441 62,157 (58,940) - - - - • 3,111,084 5,759 5,257 25,030 68,441 62,439 O $ 3,111,531 $ 89,353 $ 5,257 $ 28,739 $ 76,788 $ 81,474 • • • • • • 83 • • • • • CITY OF PALM DESERT • COMBINING BALANCE SHEET • NON-MAJOR SPECIAL REVENUE FUNDS • (CONTINUED) • June 30,2002 • Landscape • and • 1 Lighting • Districts AIPP No. 1 - 15 Maintenance • ASSETS • Cash and investments $ 289,183 $ 328,820 Cash with fiscal agent - - • Accounts receivable - - • Interest receivable - - • Due from other governmental agencies 6,056 - Loans receivable - - • Notes receivable - - • Deposits - - Property held for resale - - • Advances to other funds - - • TOTAL ASSETS $ 295,239 $ 328,820 • LIABILITIES AND FUND BALANCES • LIABILITIES: • Accounts payable $ 31,468 $ 2,041 Accrued liabilities - - • Deposits payable - - • Deferred revenue - - TOTAL LIABILITIES 31,468 2,041 • • • Loans receivable - - • Property held for resale - - . Advances to other funds - Encumbrances - 52 1, Continuing appropriations - - 411 Designated for special revenue purposes 263,771 326,727 41 41 TOTAL FUND BALANCES 263,771 326,779 TOTAL LIABILITIES AND FUND BALANCES $ 295,239 $ 328,820 . 4 41 41 84 4 • • • Schedule 7 • • • • • . • • Redevelopment Agency Total Low Non-Major • Child Care Golf Course Income Housing Special Revenue • Program Maintenance Housing Authority Funds O $ 55,872 $ 1,787,820 $ 8,769,780 $ 10,180,088 $ 44,244,624 • - - - 247,172 247,172 - - 24,043 3,117 167,558 • - - - 2 2 • - - - - 1,324,215 • - - 216,024 - 314,875 - - 3,829,719 - 3,829,719 • - - 81,845 - 81,845 • - - 210,473 - 210,473 - - - 654,000 O $ 55,872 $ 1,787,820 $ 13,131,884 $ 10,430,379 $ 51,074,483 • • • $ - $ 92,137 $ 101,731 $ 203,571 $ 1,792,173 O - - 12,901 43,733 56,634 - - - 244,882 244,882 • - - - 17,719 174,354 • - 92,137 114,632 509,905 2,268,043 • • • - - 3,992,542 - 3,992,542 - 210,473 210,473 • - - • - - 654,000 • - 30,494 306,910 21,682 4,735,304 - - 8,507,327 1,480,453 17,695,860 • • 55,872 1,665,189 - 8,418,339 21,577,201 - - - (58,940) 5 55,872 1,695,683 13,017,252 9,920,474 48,806,440 • $ 55,872 $ 1,787,820 $ 13,131,884 $ 10,430,379 $ 51,074,483 40 • • • • • 85 • • • • • CITY OF PALM DESERT • COMBINING STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES . NON-MAJOR SPECIAL REVENUE FUNDS • For the year ended June 30,2002 • • • • Traffic Gas • REVENUES: Safety Tax • Taxes $ - $ - Special assessments collected - - • Intergovernmental revenues - 909,927 • Fines and forfeitures 134,663 - Investment income 1,346 21,465 • Rental income - - • Other revenues - - TOTAL REVENUES 136,009 931,392 • • EXPENDITURES: Current: • General governmental-nondepartmental - - • Public safety - - • Public works - 268,248 Capital outlay - - • TOTAL EXPENDITURES - 268,248 • EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 136,009 663,144 • • OTHER FINANCING SOURCES(USES): • Transfers in - - Transfers out (115,360) (755,263) • Sale of property - - • TOTAL OTHER FINANCING SOURCES(USES) (115,360) (755,263) • EXCESS OF REVENUES AND OTHER FINANCING SOURCES • OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES 20,649 (92,119) • FUND BALANCES-BEGINNING OF YEAR 11,727 344,529 • FUND BALANCES-END OF YEAR $ 32,376 $ 252,410 • • • • • • • • 86 • • • • • Schedule 8 • • • • • • • • Housing Community New • Mitigation Development Construction Planned Measure A Fee Block Grant Tax Drainage • $ 1,952,787 $ 390,919 $ - $ 584,803 $ 208,766 0 1,903,033 - 165,131 - - • 226,432 4,107 2,408 162,567 204,860 • 400 - 14,919 - - • 4,082,652 395,026 182,458 747,370 413,626 • • • - - 221,399 - - • - - - - - • 5,084,370 - - 117,513 465,267 • 5,084,370 - 221,399 117,513 465,267 • (1,001,718) 395,026 (38,941) 629,857 (51,641) • • • - - 37,614 • - (395,026) - - - • - (395,026) - 37,614 - • • (1,001,718) - (38,941) 667,471 (51,641) • • 7,611,937 - 73,659 4,039,595 5,439,765 • $ 6,610,219 $ - $ 34,718 $ 4,707,066 $ 5,388,124 • • • • • • • • 87 • 41 o_ • , • CITY OF PALM DESERT • • STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES • NON-MAJOR SPECIAL REVENUE FUNDS (CONTINUED) • For the year ended June 30,2002 • • • Park and • Recreation Traffic • REVENUES: Facilities Signals • Taxes $ 150,588 $ 159,341 Special assessments collected - - • Intergovernmental revenues - - • Fines and forfeitures - - Use of money and property 83,958 34,732 • Rental income • - - • Other revenues - - TOTAL REVENUES 234,546 194,073 • EXPENDITURES: • Current: • General governmental-nondepartmental - - • Public safety - - • Public works - - Capital outlay 392,712 - • TOTAL EXPENDITURES 392,712 - • EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (158,166) 194,073 • • OTHER FINANCING SOURCES(USES): • Transfers in - - Transfers out - - • Sale of property • - - • TOTAL OTHER FINANCING SOURCES(USES) - - • EXCESS OF REVENUES AND OTHER FINANCING SOURCES • OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES (158,166) 194,073 • FUND BALANCES-BEGINNING OF YEAR 2,331,314 856,465 • FUND BALANCES-END OF YEAR $ 2,173,148 $ 1,050,538 • I I I I a 88 . I • • • Schedule 8 • • • • • • • • Public • Safety El Paseo Air City Wide • Police Library Assessment Quality Business Recycling Grants Foundation District Management License • $ - $ - $ - $ - $ - $ 50,142 • - - - 193,909 - - 36,381 259,533 -• - 46,777 - • 100,596 6,101 - 107 1,637 2,037 • 523,092 4,356 800 - - - • 660,069 269,990 800 . 194,016 48,414 52,179 • • 24,864 - 6,540 178,127 15,592 46,427 • 165,062 • - 96,943 - - - - • 24,864 262,005 6,540 178,127 15,592 46,427 • 635,205 7,985 (5,740) 15,889 32,822 5,752 • • - - - - • - - - - • - - • • 635,205 7,985 (5,740) 15,889 32,822 5,752 • • 2,475,879 _ (2,226) 10,997 9,141 _ 35,619 56,687 • $ 3,111,084 $ 5,759 $ 5,257 . $ 25,030 $ 68,441 $ 62,439 • • • • • • • 89 • • • • • CITY OF PALM DESERT • STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES • NON-MAJOR SPECIAL REVENUE FUNDS • (CONTINUED) • For the year ended June 30,2002 • • Landscape • and Lighting • Districts AIPP • • REVENUES: No. 1 - 15 Maintenance • Taxes $ 326,212 $ - Special assessments collected - - • Intergovernmental revenues - - • Fines and forfeitures - - Use of money and property 5,198 12,801 • Rental income - - • Other revenues - TOTAL REVENUES 331,410 12,801 • • EXPENDITURES: Current: • General governmental-nondepartmental - 36,021 • Public safety - - • Public works 374,841 - Capital outlay - - • TOTAL EXPENDITURES 374,841 36,021 • EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (43,431) (23,220) • • OTHER FINANCING SOURCES(USES): Transfers in 53,258 3,156 • Transfers out - - • Sale of property - - • TOTAL OTHER FINANCING SOURCES(USES) 53,258 3,156 is EXCESS OF REVENUES AND OTHER FINANCING SOURCES . OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES 9,827 (20,064) II FUND BALANCES-BEGINNING OF YEAR 253,944 346,843 . FUND BALANCES-END OF YEAR $ 263,771 $ 326,779 1 1 I I I I 1 a 90 , 41 • • • Schedule 8 • • • • • • - Redevelopment Agency Total • Low Non-Major • Child Care Golf Course Income Housing Special Revenue Program Maintenance Housing Authority Funds • $ - $ 1,422,219 $ - $ - $ 5,245,777 • - - - - 193,909 - - - - 3,320,782 • - - - - 134,663 • • 2,086 43,670 290,579 107,554 1,314,241 • - - 26,885 4,157,051 4,183,936 - - 158,020 - 701,587 • 2,086 1,465,889 475,484 4,264,605 15,094,895 • • • - 708,860 576,242 4,276,812 6,090,884 - - - - 165,062 • - - 1,277,085 - 1,920,174 • - - 869,021 - 7,025,826 • - 708,860 2,722,348 4,276,812 15,201,946 • 2,086 757,029 (2,246,864) (12,207) (107,051) • • - - 9,816,622 5,439,278 15,349,928 • - - (9,086,573) - (10,352,222) - - 204,000 - 204,000 • - - 934,049 5,439,278 5,201,706 • • 2,086 757,029 (1,312,815) 5,427,071 5,094,655 • • 53,786 938,654 14,330,067 4,493,403 43,711,785 • $ 55,872 $ 1,695,683 $ 13,017,252 $ 9,920,474 $ 48,806,440 • • • • • • • • 91 • • • . • CITY OF PALM DESERT Schedule 9-a • SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE • BUDGET AND ACTUAL-TRAFFIC SAFETY SPECIAL REVENUE FUND • For the year ended June 30,2002 • Variance with • Final Budget • Budgeted Amounts Positive • Original Final Actual (Negative) • REVENUES: Fines and forefeitures $ 120,000 $ 120,000 $ 134,663 $ 14,663 • Investment income 2,000 2,000 1,346 (654) • TOTAL REVENUES 122,000 122,000 136,009 14,009 • OTHER FINANCING SOURCES(USES): • Transfers out (122,000) (122,000) (115,360) (6,640) • EXCESS OF REVENUES OVER • (UNDER)OTHER FINANCING USES - - 20,649 7,369 • • FUND BALANCE-BEGINNING OF YEAR 11,727 11,727 11,727 • - FUND BALANCE-END OF YEAR $ 11,727 $ 11,727 $ 32,376 $ . 7,369 • • • • • • • • • • • 111 111 41 92 � • • • • CITY OF PALM DESERT Schedule 9-b • SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE • BUDGET AND ACTUAL-GAS TAX SPECIAL REVENUE FUND • For the year ended June 30,2002 • Variance with • Final Budget • Budgeted Amounts Positive Original Final Actual (Negative) • REVENUES: • Intergovernmental revenues $ 705,000 $ 810,000 $ 909,927 $ 99,927 • Investment income 20,000 20,000 21,465 1,465 • TOTAL REVENUES 725,000 830,000 931,392 101,392 • EXPENDITURES: • Current: • Public works 268,248 268,248 268,248 - • TOTAL.EXPENDITURES 268,248 268,248 268,248• - EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES 456,752 561,752 663,144 101,392 • OTHER FINANCING SOURCES(USES): • Transfers out (725,000) (755,300) (755,263) 37 • • EXCESS OF REVENUES AND OTHER FINANCING SOURCES • OVER(UNDER)EXPENDITUES (268,248) (193,548) (92,119) 101,429 • FUND BALANCE-BEGINNING OF YEAR 344,529 344,529 344,529 - • • FUND BALANCE-END OF YEAR $ 76,281 $ 150,981 $ 252,410 $ 101,429 • • • • • • • • • • • • • • 93 • • • • CITY OF PALM DESERT Schedule 9-c • SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE • BUDGET AND ACTUAL-HOUSING MITIGATION FEE SPECIAL REVENUE FUND • For the year ended June 30,2002 • Variance with • Final Budget • Budgeted Amounts Positive • Original Final Actual (Negative) REVENUES: • Taxes $ 30,000 $ 391,100 $ 390,919 $ (181) • Investment income 4,000 4,000 4,107 107 • TOTAL REVENUES 34,000 395,100 395,026 (74) • OTHER FINANCING SOURCES(USES): • Transfers out (34,000) (395,100) (395,026) 74 • EXCESS OF REVENUES OVER • (UNDER)OTHER FINANCING USES - - - - • FUND BALANCE-BEGINNING OF YEAR - - - - •• FUND BALANCE-END OF YEAR $ - $ - $ - $ - • • • • • • • • • • • • • • • • • • • • 94 • • • • • CITY OF PALM DESERT Schedule 9-d • • SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL-COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND • • For the year ended June 30,2002 • Variance with • Final Budget • Budgeted Amounts Positive Original Final Actual (Negative) • REVENUES: • Intergovernmental revenues $ 230,000 $ 230,000 $ 165,131 $ (64,869) Use of money and property - - 2,408 2,408 • Other revenues - - 14,919 14,919 • TOTAL REVENUES 230,000 230,000 182,458 (47,542) • • EXPENDITURES: Current: • General government-nondepartmental 286,400 289,950 221,399 68,551 • • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES (56,400) (59,950) (38,941) 21,009 • FUND BALANCE-BEGINNING OF YEAR 73,659 73,659 73,659 • • FUND BALANCE-END OF YEAR $ 17,259 $ 13,709 $ 34,718 $ 21,009 • • • • • • • • • • • • • • • • • • • 95 • • • • • CITY OF PALM DESERT Schedule 9-e • SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE • BUDGET AND ACTUAL-EL PASEO ASSESSMENT DISTRICT SPECIAL REVENUE FUND • For the year ended June 30,2002 • • Variance with Final Budget • Budgeted Amounts Positive • Original Final Actual (Negative) • REVENUES: Special assessments collected $ 170,000 $ 194,000 $ 193,909 $ (91) • Other revenues - - 107 107 • TOTAL REVENUES 170,000 194,000 194,016 16 • • EXPENDITURES: Current: • General government-nondepartmental 164,100 181,300 178,127 3,173 • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES 5,900 12,700 15,889 3,189 • FUND BALANCE-BEGINNING OF YEAR 9,141 9,141 9,141 - • FUND BALANCE-END OF YEAR $ 15,041 $ 21,841 $ 25,030 $ 3,189 • • • • • • • • • • • • • • • • • • 96 . • • • • CITY OF PALM DESERT Schedule 9-f • • SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE • BUDGET AND ACTUAL-CITY-WIDE BUSINESS LICENSE SPECIAL REVENUE FUND • For the year ended June 30,2002 • Variance with • Final Budget • Budgeted Amounts Positive Original Final Actual (Negative) • REVENUES: • Taxes $ 50,000 $ 50,000 $ 50,142 $ 142 Use of money and property 1,000 1,000 2,037 1,037 • TOTAL REVENUES 51,000 51,000 52,179 1,179 • EXPENDITURES: • Current: • General government-nondepartmental 101,292 101,292 46,427 54,865 • TOTAL EXPENDITURES 101,292 101,292 46,427 54,865 • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES (50,292) 150,292) 5,752 56,044 • • FUND BALANCE-BEGINNING OF YEAR 56,687 56,687 56,687 • FUND BALANCE-END OF YEAR $ 6,395 $ 6,395 $ 62,439 $ 56,044 • • • • • • • • • • • • • • • • • • 97 • • • • • CITY OF PALM DESERT Schedule 9-g • SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE • BUDGET AND ACTUAL-LANDSCAPE AND LIGHTING DISTRICTS NO. 1 - 15 SPECIAL REVENUE FUND • For the year ended June 30, 2002 • Variance with • Final Budget • Budgeted Amounts Positive • Original Final Actual (Negative) • REVENUES: Taxes $ 319,679 $ 336,679 $ 326,212 $ (10,467) • Use of money and property 5,000 5,000 5,198 198 • TOTAL REVENUES 324,679 341,679 331,410 (10,269) • EXPENDITURES: • Current: • Public works 446,846 450,812 374,841 75,971 • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES (122,167) (109,133) (43,431) 65,702 • OTHER FINANCING SOURCES(USES): • Transfers in 48,000 48,000 53,258 5,258 • Transfers out - - - • TOTAL OTHER • FINANCING SOURCES(USES) 48,000 48,000 53,258 5,258 • EXCESS OF REVENUES AND • OTHER FINANCING SOURCES • OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES (74,167) (61,133) 9,827 70,960 • • FUND BALANCE-BEGINNING OF YEAR 253,944 253,944 253,944 - . FUND BALANCE-END OF YEAR $ 179,777 $ 192,811 $ 263,771 $ 70,960 . II I I 41 41 41 4 41 41 98 , Other Government Funds- Debt Service • • • • • OTHER GOVERNMENTAL FUNDS —DEBT SERVICE • • Debt Service Funds are used primarily to account for the accumulation of resources for • the payment of principal and interest on general long-term debt of the City and • Redevelopment Agency. • Special Assessment District Funds — These funds are used to account for the resources • and payment of special assessment debt related to the following Districts: • 83-1 ($7,540,000 1995 PFA Bonds) • 84-1 Refunding($7,540,000 1995 PFA Bonds) • 87-1 ($7,540,000 1995 PFA Bonds) • 92-1 ($2,298,000 Sierra Nova Series 1992) 94-1 ($6,935,000 Bighorn Series A) • 94-2 ($1,832,000 Sunterrace) • 94-3 ($1,500,000 Merano) • 98-1 ($34,760,000 Canyons at Bighorn) • Bighorn Series B Fund — This fund is used to account for the resources for future • assessment debt related to the 94-1 District Series B. • Community Facilities District 91-1 (CFD 91-1) Funds — These funds are used to account • for the resources and payment for debt related to 1992 and 1995 Bonds. • • City Financing Authority Fund — This fund is used to account for the resources and • payment of the 1995 Revenue Bonds issued by the Palm Desert Financing Authority and loaned to Assessment Districts No. 83-1, 84-1 Refunding and 87-1 to advance refund • debt owed by the Assessment Districts. • • • • • • • • • • • • • • • • • 99 • • • CITY OF PALM DESERT • • COMBINING BALANCE SHEET • NON-MAJOR DEBT SERVICE FUNDS • • June 30,2002 • • • Assessment • Assessment District • District No. 84- 1 No. 83 - 1 Refunding • ASSETS • Cash and investments $ 23,484 $ 393,493 Cash with fiscal agent - - • Accounts receivable 1,160 13,422 • Interest receivable - - • Assessments receivable - 1,234,078 • TOTAL ASSETS $ 24,644 $ 1,640,993 • LIABILITIES AND FUND BALANCES • • LIABILITIES: • Accounts payable $ - $ 406 • Deferred revenue - 1,234,078 • TOTAL LIABILITIES - 1,234,484 • FUND BALANCES: • Reserved: • Debt service - - • Unreserved: • Designated for debt service 24,644 406,509 • TOTAL FUND BALANCES 24,644 406,509 • TOTAL LIABILITIES AND FUND BALANCES $ 24,644 $ 1,640,993 • • • • • • • • • • 100 • • • • • Schedule 10 • • • • • • • • Assessment Assessment Assessment Assessment Assessment Assessment • District District District District District District • No. 87- i No.92- 1 No. 94- 1 No.94-2 • No. 94-3 No. 98-1 • $ 181,574 $ 76,899 $ 252,299 $ 185,392 $ 96,980 $ 3,138,550 • - - - 158,191 126,161 1,900,762 • 12,203 4,056 2,973 15,775 4,091 - • - - - 197 157 2,368 930,521 95,415 267,539 1,169,999 1,238,279 14,880,426 • • $ 1,124,298 $ 176,370 $ 522,811 $ 1,529,554 $ 1,465,668 $ 19,922,106 • • • $ 2,093 $ 30 $ 45 $ 490 $ 350 $ - • 930,521 95,415 267,539 1,169,999 1,238,279 14,880,426 • • 932,614 95,445 267,584 1,170,489 1,238,629 14,880,426 • • • - - - 151,730 121,420 1,813,455 • 191,684 80,925 255,227 207,335 105,619 3,228,225 • • 191,684 80,925 255,227 359,065 227,039 5,041,680 • $ 1,124,298 $ 176,370 $ 522,811 $ 1,529,554 $ 1,465,668 $ 19,922,106 • • • • • • (Continued) • • • 101 • • • • ! • CITY OF PALM DESERT • COMBINING BALANCE SHEET • NON-MAJOR DEBT SERVICE FUNDS • (CONTINUED) • June 30,2002 • • • • CFD91 - 1 • Bighorn Indian Series B Ridge • ASSETS • Cash and investments $ 1,193,404 $ 1,392,032 • Cash with fiscal agent - - Accountsreceivable - 52,404 • Interest receivable - - • Assessments receivable - 20,989,000 • TOTAL ASSETS $ 1,193,404 $ 22,433,436 • • LIABILITIES AND FUND BALANCES • LIABILITIES: • Accounts payable $ - $ - • Deferred revenue - 20,989,000 • TOTAL LIABILITIES - 20,989,000 • FUND BALANCES: • Reserved: • Debt service - - • Unreserved: • Designated for debt service 1,193,404 1,444,436 • TOTAL FUND BALANCES 1,193,404 1,444,436 • TOTAL LIABILITIES AND FUND BALANCES $ 1,193,404 $ 22,433,436 • • • • • • See independent auditors'report. • • • • 102 • • • • • Schedule 10 • • • • • • • Total • City Non-Major Financing Debt Services • Authority Funds • $ - $ 6,934,107 • 2,808,345 4,993,459 • - 106,084 • 3,497 6,219 • 40,805,257 • $ 2,811,842 $ 52,845,126 • • • • $ - $ 3,414 • 40,805,257 • 40,808,671 • • • 2,627,609 4,714,214 • 184,233 7,322,241 • • 2,811,842 12,036,455 1.11 $ 2,811,842 $ 52,845,126 • • • • • • • • • • 103 • • • • CITY OF PALM DESERT • COMBINING STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES • NON-MAJOR DEBT SERVICE FUNDS • • For the year ended June 30,2002 • • Assessment • Assessment District • District No. 84- 1 No. 83- 1 Refunding • REVENUES: • Special assessments collected - $ 3,256 $ 425,063 • Use of money and property 1,589 10,211 Other revenues - - • • TOTAL REVENUES 4,845 435,274 • EXPENDITURES: • Interest and fiscal charges 11,126 15,509 • Principal retirement - - • TOTAL EXPENDITURES 11,126 15,509 • EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (6,281) 419,765 • OTHER FINANCING SOURCES(USES): • Transfers in - - • Transfers out (49,498) (500,453) • TOTAL OTHER FINANCING SOURCES(USES) (49,498) (500,453) • EXCESS OF REVENUES AND OTHER FINANCING • SOURCES OVER(UNDER)EXPENDITURES • AND OTHER FINANCING USES (55,779) (80,688) • FUND BALANCES-BEGINNING OF YEAR 80,423 487,197 • • FUND BALANCES-END OF YEAR $ 24,644 $ 406,509 • • • • • • • • 104 • • • • • Schedule 11 • • • • • • • • Assessment Assessment Assessment Assessment Assessment Assessment • District District District District District District • No. 87- 1 No. 92- 1 No.94- 1 No.94-2 No.94-3 No. 98-1 • $ 206,174 $ 16,363 $ 128,755 $ 217,811 $ 127,780 $ 3,307,534 • 4,876 2,648 11,628 7,438 4,714 111,820 • 10,811 - - 3,211 - - • 221,861 19,011 140,383 228,460 132,494 3,419,354 • • 40,624 2,475 19,013 110,594 94,509 1,160,524 70,000 35,000 3,280,000 • • 40,624 2,475 19,013 180,594 129,509 4,440,524 • 181,237 16,536 121,370 47,866 2,985 (1,021,170) • • • • (182,849) (1,283) (173,558) - - - • • (182,849) (1,283) (173,558) - - - • • • (1,612) 15,253 (52,188) 47,866 2,985 (1,021,170) • 193,296 65,672 307,415 311,199 224,054 6,062,850 • $ 191,684 $ 80,925 $ 255,227 $ 359,065 $ 227,039 $ 5,041,680 • • • • • • • 105 • • • • ' • CITY OF PALM DESERT • COMBINING STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES NON-MAJOR DEBT SERVICE FUNDS • (CONTINUED) • • For the year ended June 30,2002 • • • CFll91 - 1 • ' Bighorn Indian Series B Ridge • REVENUES: • Special assessments collected $ 31,965 $ 2,025,792 • Use of money and property 74,118 30,402 Other revenues - - • • TOTAL REVENUES 106,083 2,056,194 • EXPENDITURES: • Interest and fiscal charges 41,000 12,828 • Principal retirement - - • TOTAL EXPENDITURES 41,000 12,828 • EXCESS OF REVENUES OVER(UNDER)EXPENDITURES 65,083 2,043,366 i OTHER FINANCING SOURCES(USES): • Transfers in - - • Transfers out (2,831,586) (2,258,692) • TOTAL OTHER FINANCING SOURCES(USES) (2,831,586) (2,258,692) • EXCESS OF REVENUES AND OTHER FINANCING • SOURCES OVER(UNDER)EXPENDITURES • AND OTHER FINANCING USES (2,766,503) (215,326) • FUND BALANCES-BEGINNING OF YEAR 3,959,907 1,659,762 • • FUND BALANCES-END OF YEAR $ 1,193,404 $ 1,444,436 • • • • • • • • 106 • • • • • Schedule 11 • • • • • • • • Total City Non-Major • Financing Debt Service • Authority Funds • $ - $ 6,490,493 • 61,133 320,577 • 14,022 • 61,133 6,825,092 • • 1,429,385 2,937,587 • 1,885,000 5,270,000 • • 3,314,385 8,207,587 • (3,253,252) (1,382,495) • • 3,166,332 3,166,332 • - (5,997,919) • • 3,166,332 (2,831,587) I • • • (86,920) (4,214,082) • 2,898,762 16,250,537 • $ 2,811,842 $ 12,036,455 • • • • • • • 107 • • • • • � • • ' • • ' • • • • , • • • This page intentionally left blank • • • • • • • • • • • • • • • • • • • • • • • • • 108 • • • • Other Government Funds- Capital Projects • • • • OTHER GOVERNMENTAL FUNDS—CAPITAL PROJECTS • • • Capital Projects Funds are used to account for the acquisition and construction of major • capital facilities, except for those financed by certain Special Revenue and Enterprise funds. • • Arts in Public Places Fund — This fund is used to account for fees collected from • residential, commercial and public facilities development except for street and drainage • projects. Its use is restricted for acquisition, installation, improvement and maintenance • of artwork to be displayed in the City, the administration of the program and community • public art education programs. • • Capital Projects Reserve Fund — This fund is used to account for resources and • expenditures for capital improvement projects that are related to the acquisition and • development of public facilities, infrastructure and equipment. • • Streets Fund — This fund is used to account for resources and expenditures for capital • improvement projects that are related to the acquisition, improvement, construction and maintenance of public streets. • • • Ordinance No. 416 Fund — This fund is used to account for resources and expenditures for capital improvement projects that are related to street improvements in undeveloped • areas or extensions in the City. • • Drainage Facilities Fund — This fund is used to account for resources and expenditures • for planned capital improvement projects that are under the Master Drainage Plan. • Park and Recreational Facilities Fund — This fund is used to account for resources and expenditures for capital improvement projects that are.related to park development, • maintenance and equipment. • • Signalization Fund — This fund is used to account for resources and expenditures for • capital improvement projects that are related to the acquisition and maintenance of traffic • signals. • • • • • • 109 • • • • • OTHER GOVERNMENTAL FUNDS—CAPITAL PROJECTS (CONTINUED) • • • Buildings Fund — This fund is used to account for resources and expenditures for capital • improvement projects that are related to the improvement and maintenance of public facilities and structures. • • Museum Fund — This fund is used to account for resources and expenditures for capital • improvement projects that are related to the improvement and maintenance of historical • museum facilities. • • Library Fund — This fund is used to account for resources and expenditures for capital • improvement projects that are related to the purchase of library resources for the Multi- • Agency Library. • • Corporation Yard Fund— This fund is used to account for resources and expenditures for • capital improvements related to the maintenance of the Civic Center Corporation Yard • facilities. • • YMCA Building Fund — This fund is used to account for resources and expenditures for • capital improvements related to the maintenance of the YMCA building that was built by • the City. • • CFD Indian Ridge Fund — This fund is used to account for the construction of public • improvements from bond proceeds Series A resulting from the creation of this District. • • Cook/Interstate 10 Fund — This fund is used to account for the construction • improvements at Cook/Interstate 10 interchange. • • Special Assessment District Funds — This fund is used to account for the construction of • public improvements from proceeds resulting from the creation of various assessment • Districts. • Assessment District No. 94-2 Sunterrace • Assessment District No. 94-3 Merano • Assessment District No. 98-1 Bighorn • • • • 110 • • • • • • OTHER GOVERNMENTAL FUNDS—CAPITAL PROJECTS • (CONTINUED) • • • Sports Complex Fund — this fund is used to account for resources and expenditure for capital improvement projects that are related to the construction, improvements and • maintenance of the sports complex. • • Monterey/10 Fund — This fund is used to account for resources and expenditures for capital improvement projects that are related to the construction of the Monterey and • Interstate 10 interchange. • • Town Center Parking Lot — This fund is used to account for resources and expenditures • for construction of a two-story parking lot at the Westfield Shopping Center. • • • • • • • • • • • • • • • • • • • • • • • • • • 111 • • • CITY OF PALM DESERT • COMBINING BALANCE SHEET • NON-MAJOR CAPITAL PROJECT FUNDS • • June 30,2002 • • • Arts in Capital • Public Projects • Places Reserve • ASSETS Cash and investments $ 1,678,103 $ 7,754,075 • Cash with fiscal agent-restricted - 34,173 • Accounts receivable - 89,161 Interest receivable - - • Due from other funds - 101,050 • Due from other governmental agencies - 683,297 • Advances to other funds - 8,000,000 Deposits 4,325 100,000 • • TOTAL ASSETS $ 1,682,428 $ 16,761,756 LIABILITIES AND FUND BALANCES • • LIABILITIES: • Accounts payable $ 8,388 $ 818,838 Accrued liabilities 2,581 - • Deposits payable 147,475 - • TOTAL LIABILITIES 158,444 818,838 • • FUND BALANCES: • Reserved: • Advances to other funds - 8,000,000 Deposits 4,325 100,000 • Encumbrances 500 2,721,797 • Continuing appropriations 1,100,424 5,101,553 • Unreserved-designated for capital outlay 418,735 19,568 • TOTAL FUND BALANCES 1,523,984 15,942,918 • TOTAL LIABILITIES AND FUND BALANCES $ 1,682,428 $ 16,761,756 • • • • • • 112 • • • • • Schedule 12 • • • • • • • • Park and • Drainage Recreation Facilities Facilities Signalization Buildings Library • • $ 3,478,770 $ 2,202,403 $ 299,016 $ 3,054,857 $ 618,069 • - - - • - - - • - • 4,765,000 - • $ 3,478,770 $ 6,967,403 $ 299,016 $ 3,054,857 $ 618,069 • • • • $ - $ 3,419 $ - $ - $ 23,748 I • - - - • - - • - 3,419 - - 23,748 • • • - 4,765,000 - - - • - - _ • - 38,790 - - 30,988 678,391 272,691 210,392 - - • 2,800,379 1,887,503 88,624 3,054,857 563,333 • • 3,478,770 6,963,984 299,016 3,054,857 594,321 • $ 3,478,770 $ 6,967,403 $ 299,016 $ 3,054,857 $ 618,069 •. • I • (Continued) • • 113 0 • • • CITY OF PALM DESERT • COMBINING BALANCE SHEET • NON-MAJOR CAPITAL PROJECT FUNDS • (CONTINUED) • June 30,2002 • • Assessment • CFD District • Indian No. 94-2 • Ridge Sunterrace ASSETS • Cash and investments $ 438 $ - • Cash with fiscal agent 4,673,605 43,607 • Accounts receivable - - Interestreceivable 5,823 54 • Due from other funds - - • Due from other governmental agencies - - • Advances to other funds - - Deposits - - • • TOTAL ASSETS $ 4,679,866 $ 43,661 • LIABILITIES AND FUND BALANCES • • LIABILITIES: • Accounts payable $ - $ - Accrued liabilities - - • Deposits payable - - • TOTAL LIABILITIES - - • • FUND BALANCES: • Reserved: • Advances to other funds - - Deposits - - • Encumbrances - - • Continuing appropriations - - • Unreserved-designated for capital outlay 4,679,866 43,661 • TOTAL FUND BALANCES 4,679,866 43,661 • TOTAL LIABILITIES AND FUND BALANCES $ 4,679,866 $ 43,661 • • • (Continued) • • • 114 • • • • • Schedul 12 • • • • • • • Assessment Assessment Total • District District Non-Major • No. 94-3 98-1 Bighorn Town Center Capital Project Merano Bighorn Series B Parking Lot Funds • • $ - $ - $ - $ 10,418,074 $ 29,503,805 • 310,895 8,947,610 - - 14,009,890 - - 89,161 • 387 11,146 - - 17,410 • - - - - 101,050 • - - - 683,297 - - - - 12,765,000 • - - - - 104,325 $ 311,282 $ 8,958,756 $ - $ 10,418,074 $ 57,273,938 • • . • • $ - $ - $ - $ - $ 854,393 • - - - - 2,581 • - - - - 147,475 • - - - - 1,004,449 • • • - - - - 12,765,000 • - - - - 104,325 • - - - - 2,792,075 - - - - 7,363,451 • - 311,282 8,958,756 - 10,418,074 33,244,638 • • 311,282 8,958,756 - 10,418,074 56,269,489 • $ 311,282 $ 8,958,756 $ - $ 10,418,074 $ 57,273,938 • • • • • • 115 I . • • CITY OF PALM DESERT • COMBINING STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES NON-MAJOR CAPITAL PROJECT FUNDS • • For the year ended June 30,2002 • • Arts in Capital • Public Projects • Places Reserve • REVENUES: Licenses and permits $ 283,090 $ - • Intergovernmental revenues - 2,649,243 • Investment income 58,446 498,923 Other revenues - 225 • TOTAL REVENUES 341,536 3,148,391 • EXPENDITURES: • Current: • General governmental-departmental 217,361 - Public works - 229,949 • Capital outlay 2,792 6,518,466 • Debt service: • Principal retirement - 250,000 • TOTAL EXPENDITURES 220,153 .6,998,415 • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES 121,383 (3,850,024) • OTHER FINANCING SOURCES(USES): • Transfers in - 3,415,868 • Transfers out (3,156) - • Sale of property - 562,279 TOTAL OTHER FINANCING SOURCES(USES) (3,156) 3,978,147 • • EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) • EXPENDITURES AND OTHER FINANCING USES 118,227 128,123 • FUND BALANCES-BEGINNING OF YEAR 1,405,757 15,814,795 • • FUND BALANCES-END OF YEAR $ 1,523,984 $ 15,942,918 • • • • • • • • • 116 • • • • 411 Schedule 13 411 411 411 411 411 Park and • Drainage Recreation . Facilities Facilities Signalization Buildings 411 $ - $ $ - $ 129,933 249,509 11,168 116,620 • - _ • 129,933 249,509 11,168 116,620 • • - 26,259 - _ • - 264,829 - - • - - - • - 291,088 - - 41/ 129,933 (41,579) 11,168 116,620 411 - - • - - - I • - . 411 129,933 (41,579) 11,168 116,620 • 3,348,837 7,005,563 287,848 2,938,237 411 $ 3,478,770 $ 6,963,984 $ 299,016 $ 3,054,857 411 411 • (Continued) 411 411 117 • • CITY OF PALM DESERT • • COMBINING STATEMENT OF REVENUES,EXPENDITURES AND • CHANGES IN FUND BALANCES NON-MAJOR CAPITAL PROJECT FUNDS • (CONTINUED) • • For the year ended June 30,2002 • • CFD • Indian • Library Ridge • REVENUES: Licenses and permits $ - $ - • Intergovernmental revenues - - • Use of money and property 2,304 98,791 Other revenues - - • TOTAL REVENUES 2,304 98,791 • EXPENDITURES: • Current: • General governmental-departmental 145,788 - Public works - 21,908 • Capital outlay - - • Debt service: • Principal retirement - - TOTAL EXPENDITURES 145,788 21,908 • EXCESS OF REVENUES OVER • (UNDER)EXPENDITURES (143,484) 76,883 • • OTHER FINANCING SOURCES(USES): • Transfers in 85,000 - • Transfers out - - • • Sale of property - - TOTAL OTHER FINANCING SOURCES(USES) 85,000 - • • EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) • EXPENDITURES AND OTHER FINANCING USES (58,484) 76,883 • FUND BALANCES-BEGINNING OF YEAR 652,805 4,602,983 • • FUND BALANCES-END OF YEAR $ 594,321 $ 4,679,866 • • • (Continued) • • • • • 118 • • • • • Schedule 13 • • • • • • Assessment Assessment Assessment Total • District District District Non-Major • No. 94-2 No. 94-3 No.98-1 Bighorn Town Center Capital Project • Sunterrace Merano Bighorn Series B Parking Lot Funds • $ - $ - $ - $ - $ - $ 283,090 - - - 2,649,243 • 919 6,551 204,879 - - 1,378,043 • - - - - 225 • 919 6,551 204,879 - - 4,310,601 • • - - - - 2,853 366,002 • 2,271,071 2,831,586 - 5,380,773 • - - - - - 6,786,087 • - - - - - 250,000 • - - 2,271,071 2,831,586 2,853 12,782,862 • • 919 6,551 (2,066,192) (2,831,586) (2,853) (8,472,261) • • • - - - 2,831,586 - 6,332,454 - - - • - -- - - - (3,156) 562,279 • - - - 2,831,586 - 6,891,577 • • • 919 6,551 (2,066,192) - (2,853) (1,580,684) • 42,742 304,731 11,024,948 - 10,420,927 57,850,173 • $ 43,661 $ 311,282 $ 8,958,756 $ - $ 10,418,074 $ 56,269,489 • • • • • • • • 119 • • • • • • • I • • ' • • • • • • • • This page intentionally left blank • • • • • • • • • • • • • • • • • • • • • • • • • 120 • • • • Agency Funds • • • • AGENCY FUNDS • • Agency Funds are used to account for assets held by the city as an agent for individuals, • private organizations, other governments and/or funds. • Agency Fund — This fund is used to account for deposits placed with the City by • developers, individuals and groups to obtain future services. Deposits are reduced by disbursements and/or refunds to the depositors when the cost of services are determined. • • Treasurers 1991 Bond Act — This fund is used to account for the assets held on behalf of • the assessment district's property owners until they are remitted to the bondholders. • • Retiree Service Stipend Fund—This fund is used to account for assets held to pay for the • retiree service stipend. • • • • I • • • • • • • • • I • • • • • • • • • • I • • 121 • • • • CITY OF PALM DESERT Schedule 14 • • COMBINING STATEMENT OF NET ASSETS • ALL AGENCY FUNDS • June 30,2002 • • • Agency Treasurers Retiree • 1991 Bond Service • Agency Act Stipend Fund Total • ASSETS: Cash and investments $ 1,764,905 $ 10,126 $ 2,039,342 $ 3,814,373 • • LIABILITIES: • Deposits payable $ 1,764,905 $ 10,126 $ 2,039,342 $ 3,814,373 • • • • • • • • • • • • • • • • • • • • • • • • • 122 • Statistical Section • • • • • • • • Revenue and Expenses Statistics • • City of Palm Desert, California • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • City of Palm Desert • Government-wide Expenses by Function • Last Three Years(1) • FUngtcOns N ..1 ''Ya �„"u "t ! r .-.,tn ,t 5 ,, Y.h'- �.,�. • ' • 2000/2001.. v ``1989/2000 • General.govefnrnant O ;��{x �1 $ 20,830,544 $ 18,625,329 $15,987,467 Pubfic safetiP)'°' 54'1 :r 14,547,981 12,744,434 12,291,265 • PublIc:Works+ x ri 19,686,164 15,595,997 21,649,952 • P 3,775,417 3,542,671 7,503,822 arks, ecreatio�aFtld�culture ,� • Payi»er4�titoto other agencies € ` 17,734,171 14,317,974 10,397,422 thiiii l-on'long tsrm%debY^ >' 15,271,200 16,224,248 16,380,712 • Goifurse DeseA/fllowt 6,629,866 6,901,576 6,797,094 • dia6a,c0141exlL#1*Mrevr g 534,865 1,481,938 440,223 Total 6'• $ 99,010,208 $ 89,434,167 $91,447,957 • (1)City has only three years of expenses using the new financial model. • • • • • • • • • • • • • • • • • • • • Source: City of Palm Desert Audited Financial Statements • • • ' • • • -123- • • • • • • • City of Palm Desert • Government-wide Revenues • Last Three Years (1) • • Program and General Revel es} „ S-� tr ? ,Oli , ";. ..x.' � P : atit :2 1f2002i R V 200012001. £ cF 9f9991120000„. • Program=Reveitties �, tea • Chame,00rse ace`s $ 17,038,841 $ 17,115,089 $ 17,406,283 Operatingnts and contributio a 5,568,966 4,607,448 4,180,474 • igrants and contributiorts v 4,442,917 5,844,132 16,300,977 aYe r eve *ue • GePegai eY.0-7 i,f Y ,_y • fi axeit f w �� tit:, _ • 73,257,210 66,975,636 59,416,203 entalincome 21 : oc 166,840 160,314 154,887 • ` Sofdand 204,000 764,000 159,018 Cor ibi io from�eragencies, 262,193 4,328,656 - • c, Other uenuesett. 4,709,580 2,785,106 2,154,731 • estmment'eamrngst ,+ , T` 6,221,394 11,378,771 8,572,238 • Tota1 r' - t w $ 111,871,941 $ 113,959,152 $ 108,344,811 • • • (1)City has only three years of revenues using the new financial model. I • 1 • • • • • • • • • • • • • • • Source: City of Palm Desert Audited Financial Statements • • • • -124- • • • • • • • • Revenue and Expenditures Statistics • • City of Palm Desert, California • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • City of Palm Desert Graphs-Historical Revenue and Expenditures • Combined General,Special,Debt Service and Capital Project • Last Ten Fiscal Years • • Combined Revenues • $140,000,000 D Combined Other • $120,000,000 — Revenues(1) • $100,000,000 i i i — ❑Special • $80,000,000 — Assessments • $60,000,000 — i ; i i i i i Olnt ergovem- $40,000,000 — mental Revenues • $20,000,000 — • $0 jliiilili , ililltuii O Use of Money and I'mpeny • a C $ & a a a i i i i i a Taxes • A t ra. r • • • Combined Expenditures • $160,000,000 ❑Other Combined • $140,000,000 — Expenditures(2) • $120,000,000 — OSpecial • $100,000,000 - Assessments • $80,000,000 - $60000,000 — ❑Debt Service(3) • $40,000,000 i i i I i i i i i — • $20,000,000 — ijljljllijlllj , j Capital Outlay • e a r, a i* a a a tM t $ to to t^ to t 'a t ta t 'a ■Curent(4) • • (1) Other Combined Revenues is any combination of sales of inventory,licenses and permits. charges for • services, recovery of investment loss, fines and forfeitures, and other revenues. • (2) Other Combined Expenditures is any combination of bad debt expense, loss on investment, cost of inventory sold-decline in value of inventory held for resale, Educational Revenue Augmentation Fund`, • payment to other agencies, cost of land and arbitrage rebate. (3) Debt Service is any combination of bond discount,bond issue costs, interest and fiscal charges, principal • retirement and repayment of advances. • (4) Current is any combination of general government(departmental and non-departmental),public safety, public works, and parks, recreation and culture. • • • Source: City of Palm Desert Audited Financial Statements ' • • • • • • • -125- • • City Of Palm Desert • Historical Revenue and Expenditures • Combined General,Special,Debt Service and Capital Project Last Ten Fiscal Years • • FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 • Revenue Type: • Taxes. $ 78,631,363 $ 72,173,943 $ 65,850,439 $ 57,251,012 $ 51,058,766 Use of Money and Property Rental 11,857,965 19,058,404 15,592,630 12,778,046 11,860,151 • Intergovernmental Revenues 10,581,051 6,463,484 5,058,242 3,733,553 5,104,695 • Sales oflnventory 766,279 767,500 831,948 589,407 16,612,425 Special Assessments Collected 6,684,402 12,884,346 13,015,926 13,898,553 6,244,796 • Licenses and•Permlts 1,417,012 1,511,652 1,606,114 2,054,410 1,672,191 • Charges for Services 975,841 845,097 914,594 1,126,350 939,963 • Recovery of Investment Loss 0 0 0 999,718 336,213 Fines and Forfeitures 305,197 238,872 359,655 280,384 163,523 • Other Revenues 1,405,298 11,037,622 12,282,724 4,194,482 4,270,248 • Total Revenue(4,(5) 112,624,408 124,980,920 115,512,272 96,905,915 98,262,971 • Expenditures: Current • General Gov't,departmental 10,570,028 10,343,127 9,505,179 9,895,799 8,499,876 General Gov't,non-departmental 8,624,068 6,943,486 4,904,499 3,538,256 2,865,252 • Public Safety 14,368,399 12,598,263 12,288,224 11,475,231 10,957,552 4.- Public Works 17,657,120 13,167,046 5,496,375 5,233,575 3,959,509 • Park, Recreation and Culture 2,580,841 2,434,884 1,970,888 2,361,873 1,974,216 Capital.Outlay 17,159,885 14,330,725 49,355,219 34,651,149 81,122,212 Debt Service(1) 45,422,974 33,272,210 31,438,696 31,973,338 26,041,321 Other Combined Expenditures(2) 17,734,171 14,317,974 10,397,422 8,190,949 7,100,023 • Total Expenditures(4)(5) 134,117,486 107,407,715 125,356,502 107,320,170 142,519,961 Excess of Revenues Over(Under) $ (21,493,078) $ 17,573,205 $ (9,844,230) $ (10,414,255) $ (44,256,990) • Expeditures(3) • • (1)Debt Service is any combination of bond discount,bond issue costs,interest and fiscal charges,principal retirement and repayment of advances. 41 (2)Other Combined Expenditures is any combination of bad debt expense, loss on investment,cost of inventory • sold,decline in value of inventory held for resale, Educational Revenue Augmentation Fund*,payment to other agencies,cost of land and arbitrage rebate. • (3)Excess Expenditures are due to the Capital improvements being spent after collecting the fees or using bond proceeds. • `Educational Revenue Augmentation Fund-In connection with its approval of a budget for the 1993-94 fiscal • year,the State Legislature enacted Sentate Bill 1135 which,among other things, realloacted approximately$65 million from redevlopment agencies to a State Education Revenue Augmentation Fund(ERAF)for the benefit • of school districts by shifting approximately 5.675%of each agency's tax increment,net of amounts due to • their taxing agencies,to the ERAF for the benefit of school districts for the current and next fiscal years. The amount required to be paid by a redevelopment agency under such legislation is apportioned among all of its • redevelopment project areas on a collective basis,and is not allocated separately to individual project areas. • (4)Fiduciary Funds are not included in totals. (5)interfund Transfers In/Out, proceeds from bonds and proceeds from notes are not included in totals • Source: City of Palm Desert Audited Financial Statements • . • • • • • -126- • • City Of Palm Desert Historical Revenue and Expenditures • Combined General,Special,Debt Service and Capital Project • • Last Ten Fiscal Years • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 • Revenue Type: • Taxes $ 47,163,127 $ 45,253,057 $ 43,903,819 $ 39,319,686 $ 36,133,201 • Use Of Money and Property 10,384,559 10,019,665 6,016,484 4,546,043 4,105,067 Intergovernmental Revenues - 6,895,551 13,926,934 8,626,030 2,788,095 2,331,646 • Sales of Inventory '6,433,296 1,031,764 0 5,969,999 0 • Special Assessments Collected 4,823,296 4,049,986 3,605,307 3,384,954 1,722,443 Licenses and Permits 1,243,229 1,022,087 1,006,064 708,962 1,024,458 • Charges for Services 556,480 539,398 534,354 887,544 628,458 • Recoveryof Investment LOss 438,711 0 547,176 0 0 • Fines and Forfeitures, 105,600 83,498 78,272 4,369,535 68,407, Other Revenues 2,743,425 940,569 703,839 1,083,702 1,366,124 • Total Revenue(4)(' 80,787,274 76,866,958 65,021,345 63,058,520 47,379,804 • Expenditures; • Current General Gov't,departmental 8,812,854 8,479,993 8,621,141 9,530,997 7,990,016 • General Gov't,non-departmental 2,828,675 7,191,765 4,777,722 2,342,792 2,725,246 • Public Safety _ 9,213,399 7,660,837 8,498,700 6,794,341 6,310,735 Public Works 6,032,388 4,909,366 2,513,937 3,245,607 2,378,809 • Park,Recreation and culture 1,213,019 1,190,679 1,334,452 1,301,800 1,132,450 • Capital Outlay 30,224,801 28,444,639 27,655,049 23,187,453 17,118,506 Debt service(1) , 35,450,244 16,200,209 15,654,037 16,081,917 17,000,781 • Other Combined Expenditure*(2) 12,630,970 16,392,832 7,283,974 16,465,931 8,501,516 • Total Expenditures:(4)13) 106,406,350 90,470,320 76,339,012 78,950,838 63,158,059 • Excess Of Revenues Over(Under)Expeditures(3) $ (25,619,076) $ (13,603,362) $ (11,317,667) $ (15,892,318) $ (15,778,255) • • (1)Debt Service is any combination of bond discount,bond issue costs,interest and fiscal charges,principal • retirement and repayment of advances. • (2)Other Combined Expenditures is any combination of bad debt expense,loss on investment,cost of inventory • sold,decline in value of inventory held for resale,Educational Revenue Augmentation Fund*,payment to other agencies,cost of land and arbitrage rebate. • (3)Excess Expenditures are due to the Capital improvements being spent after collecting the fees or using bond proceeds. • *Educational Revenue Augmentation Fund-In connection with its approval of a budget for the 1993-94 fiscal • year,the State Legislature enacted Sentate Bill 1135 which,among other things,realloacted approximately$65 million from redevlopment agencies to a State Education Revenue Augmentation Fund(ERAF)for the benefit • of school districts by shifting approximately 5.675%of each agencys tax increment,net of amounts due to • their taxing agencies,to the ERAF for the benefit of school districts for the current and next fiscal years. The amount required to be paid by a redevelopment agency under such legislation is apportioned among all of its • redevelopment project areas on a collective basis,and is not allocated separately to individual project areas. • (4)Fiduciary Funds are not included in totals. (5)Interfund Transfers In/Out, proceeds from bonds and proceeds from notes are not included in totals • • Source: City of Palm Desert Audited Financial Statements • • • • • • • -127- . • City Of Palm Desert • Historical General Revenue and Expenditures • Last Ten Fiscal Years • FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 • Revenue Types • Taxes $ 26,676,756 $ 27,225,965 $ 26,783,123 $ 23,452,941 $ 21,232,260 Use of Moneyand Property 2,379,764 3,147,544 2,688,963 2,169,894 2,168,056 • Intergovernmental Revenues 3,778,651 4,410,048 2,980,751 2,586,521 2,299,888 • Licenses and Permits i 1,133,922 1,170,926 1,239,693 1,570,397 1,399,380 • Charges for Services 975,841 845,097 914,594 1,126,350 939,963 • Recovery of Investment Loss 0 0 0 160,158 0 Fines and Forfeitures _..._ 170,534 139,269 140,896 133,822 121,073 • Other Revenues 172,397 158,079 585,605 376,605 395,188 • Total Revenue(1) 35,287,865 37,096,928 35,333,625 31,576,688 28,555,808 • Expenditures: • Current General Gov't,departmental 10,204,026 8,606,552 7,950,575 7,364,325 6,738,391 • General Gov't,non departmental 843,002 710,405 733,870 719,866 457,343 • Pubhe Safety 12,119,147 10,920,200 10,499,038 9,694,478 9,105,901 • Public Works 4,612,488 5,561,427 5,189,349 4,919,357 3,657,256 Capital Outlay 581,652 669,238 0 Park,Recreation and Culture 2,580,841 2,434,884 1,970,888 2,361,873 1,974,216 • Total Expenditures(1) y 30,941,156 28,902,706 26,343,720 25,059,899 21,933,107 • Excess of Revenues Over(Under) $ 4,346,709 $ 8,194,222 $ 8,989,905 $ 6,516,789 $ 6,622,701 • lxpeditnres • • (1)Interfund Transfers In/Out are not included in totals. • • • • • • • • • • • Source: City of Palm Desert Audited Financial Statements - • . • • • • • • • -128- • • • City Of Palm Desert • Historical General Revenue and Expenditures Last Ten Fiscal Years • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 , • Revenue Type: • Taxes $ 19,829,410 $ 17,569,058 $ 16,358,806 $ 15,271,930 $ 13,348,467 Use of Money and Property 2,172,618 1,583,596 1,661,499 1,260,822 1,083,469 • Intergovernmental Revenues 2,193,319 3,177,260 1,665,010 935,841 1,448,279 • Licenses and Permits 833,441 809,693 775,795 598,456 887,864 • Charges for Services 556,480 539,398 534,354 887,544 628,458 Recovery of Investment Loss 0 0 75,087 0 0 • Fines and Forfeitures 68,349 55,470 53,470 35,478 48,590 • Other Revenues 366,232 112,064 84,202 92,825 . 61,251 • Total Revenue(1) 26,019,849 23,846,539 21,208,223 19,082,896 17,506,378 • Expenditures: Current • General Gov't,departmental. - 6,873,931 6,679,393 7,124,525 7,181,183 6,872,125 • General Gov't,non-departmental 340,061 409,020 138,931 180,930 167,864 • Public.Safety 7,493,114 6,861,919 6,788,829 5,225,223 4,933,231 Public.Works 5,644,239 4,527,291 2,158,088 2,721,359 1,692,570 Capital Outlay 0 0 0 0 • Park.Recreation and Culture 1,213,019 1,190,679 1,334,452 1,301,800 1,132,450 • Total Expenditures(1) _ 21,564,364 19,668,302 17,544,825 16,610,495 14,798,240 • Erce59 of Revenues Over(Under)Expeditnres $ 4,455,485 $ 4,178,237 $ 3,663,398 $ 2,472,401 $ 2,708,138 • • (1)Interfund Transfers In/Out are not included in totals. • • • • • • • • • Source: City of Palm Desert Audited Financial Statements • • • • • • • -129- • City of Palm Desert • • Historical General Fund Actual Statement of Revenues • (Including Transfers In) Last Ten Fiscal Years • FY 2001/2002 2000/2001 199912000 1998/1999 1997/1998 • Revenue Type; • I Sales Tax $ 13,027,395 $ 13,619,607 $ 13,203,564 $ 10,877,715 $ 9,594,560 • Transient Occupancy Tax 7,043,454 7,385,707 7,280,625 6,725,876 6,135,811 • Property Tax 2,765,556 2,466,758 2,393,368 2,417,572 2,306,753 • Interest 2,379,764 3,147,544 2,688,963 2,169,894 2,168,056 Transferin 870,624 934,039 957,817 1,026,956 1,048,970 • Franchises, 2,131,820 1,981,697 1,837,806 1,612,054 1,540,656 0 State Subventions()) 2,555,811 2,262,535 1,991,034 1,679,519 1,494,346 • Building&Grading Permits 1,064,097 1,101,743 1,182,392 1,517,286 1,339,825 • Reimbursments 1,036,133 2,125,784 958,858 830,198 730,772 Business License Tax 898,113 826,591 749,831 744,444 684,601 • Timeshare.Mitigation.Fee 158,302 265,350 553,800 476,050 458,900 • Plan Check Fees - 612,845 623,936 538,590 866,757 660,307 • Property Transfer Tax 497,967 578,238 698,934 516,513 436,631 • OtherRevenues(2) 1,116,608 711,438 1,255,860 1,142,810 1,004,590 • Total General Revenue $ 36,158,489 $ 38,030,967 $ 36,291,442 $ 32,603,644 $ 29,604,778 • FY 1996/1997 199511996 1994/1995 1993/1994 1992/1993 • Revenue Type: Sates Tax $ 8,942,146 $ 8,133,542 $ 7,222,169 $ 7,208,053 $ 6,251,760 • Transient Occupancy Tax 5,459,239 4,919,263 4,653,958 4,568,126 4,357,012 • Property Tax 2,597,674 1,757,609 1,923,273 1,162,835 542,263 • Interest 2,172,618 1,583,595 1,632,004 1,234,048 1,060,004 • Transfer In 1,714,582 678,676 855,671 1,117,721 741,540 • Franchises 1,395,523 1,360,554 1,287,902 1,124,003 1,082,922 State Subventions(I) 1,365,641 1,393,615 1,016,910 923,037 932,084 • Building&GradingPer mits 783,862 768,247 728,875 569,126 855,137 • Reimbursments 768,421 1,717,264 600,213 482,525 455,571 110 Business LicenseTax 641,877 598,704 588,129 577,074 558,041 • Timeshare Mitigation Fee 429,750 501,150 450,150 381,750 328,800 Plan CheckFees . 414,510 359,525 320,955 144,449 417,557 • Property TransferTax. 289,783 252,189 191,808 218,004 176,675 • Other Revenues g2) 758,805 501,282 591,877 489,865 488,552 • Total General Revenue $ 27,734,431 $ 24,525,215 $ 22,063,894 $ 20,200,616 $ 18,247,918 • (1)State Subventions is any combination of trailer coach fees,motor vehicle and off-highway in-lieus,and • subventions from state. • (2)Other Revenues is any combination of miscellaneous penalties and interest,permits,grants,parking bails,fees, sales of maps and publications,vehicle and court fines and other revenues. • Source: City of Palm Desert Audited Financial Statements • • • • • • -130- • • • • City of Palm Desert • Historical General Fund Actual Statement of Revenue • (Including Transfers In) • Last Ten Fiscal Years • $40,000,000 • • $35,000,000 — • • $30,000,000 — —. • • $25,000,000 — — • $20,000,000 — ❑Combined Other • (1) • $15,000,000 — — _ El Interest • • $10,000,000 — • Property Tax • $5,000,000 — • $0 i i i i i ■Transient • 1 1 1 1 # k § I Occupancy Tax • yy rTg t2o yy TT 72 In ■Sales Tax • LL LL LL LL LL LL LL LL • • • (1)Combined Other is any combination of transfers, franchises,state subventions*,building and grading • permits,reimbursements,business license taxes,timeshare mitigation fees,plan check fees,property • transfer taxes. It also may include any combination of miscellaneous bails,fees, fines,grants, • incomes,penalties,permits, sales and taxes. • *State Subventions is any combination of trailer coach fees,motor vehicle and off-highway in-lieus,and • subventions from state. • • • • • • • • Source: City of Palm Desert Audited Financial Statements • • -131- • City of Palm Desert • • Historical General Fund Actual Statement of Expenditures (Including Transfers Out) • Last Ten Fiscal Years • FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 • Expenditure: • Public Safety(I) $ 10,732,159 $ 9,489,468 $ 8,841,693 $ 7,932,755 $ 7,600,456 • City Administration(2) 6,461,706 4,972,981 4,617,682 4,375,851 3,966,163 • Public Works Administration 1,745,513 1,764,947 1,673,434 1,607,836 1,649,970 • Community Promotions 2,262,129 2,052,281 1,676,995 1,677,282 1,683,191 ' Street Maintenance 1,378,064 1,455,268 1,451,917 1,515,287 1,097,782 • Building Safety 1,386,988 1,201,802 1,134,696 1,424,124 1,257,458 • Street Resurfacing. 608,616 1,422,637 1,028,354 861,490 190,003 • Public Works 880,295 918,575 1,035,644 934,744 719,501 • Other Expenditures(3) 7,052,549 8,398,278 11,503,552 6,161,641 9,664,696 • Total Expenditures $ 32,508,019 $ 31,676,237 $ 32,963,967 $ 26,491,010 $ 27,829,220 • • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 • Expenditure: • PublicSafety(I) $ 6,023,208 $ 5,847,414 $ 5,691,616 $ 4,191,395 $ 3,970,624 • City Administration(2) 4,383,993 3,816,262 3,327,681 3,458,040 3,267,991 • Public Works Administration. 2,413,334 2,237,745 1,330,248 1,435,957 1,279,900 • Community Promotions 1,484,691 1,662,037 1,304,394 1,206,431 1,036,326 • Street Maintenance 1,327,167 1,357,312 1,177,970 1,144,652 1,135,138 0 Building Safety 1,255,092 899,604 868,344 907,660 880,974 0 • Street Resurfacing 1,177,944 406,440 257,430 865,314 4,876 • Public Works 725,794 5.25,359 821,304 758,109 724,371 • Other Expenditures(3) 4,214,557 2,965,877 2,818,092 2,707,922 5,828,786 • Total Expenditures $ 23,005,780 $ 19,718,050 $ 17,597,079 $ 16,675,480 $ 18,128,986 • (1)Public Safety is any combination of animal regulation,risk management,nuisance abatement,police • services,and traffic safety expenditures. • (2)City Administration is any combination of administrative services,auditing,City attorney,clerk,council and • manager, data processing,elections, finance, general services,human resources, insurance, legal special services, legislative • advocacy and unemployment insurance expenditures. • (3)Other Expenditures is any combination of aquisitions,centers,committees, contributions,community • development,Hautline,newsletter,health and welfare, interfund transfers,parks,recreation and culture, • and code enforcement. • Source: City of Palm Desert Audited Financial Statements -132 • - • • • City of Palm Desert • Graph - Historical General Fund Actual Statement of Expenditures (Including Transfers Out) • Last Ten Fiscal Years • • • $35,000,000 • $30,000,000 — • • $25,000,000 — • •Combined Other(1) • $15,000,000 — — ❑Community • '— Promotions _ v • $10,000,000 — ❑Public Works en — Administration • $5,060,000 — r ,+ • • $0 I I I I { ' I I I I ❑City Administration (2) • g $ �, ` $�`, g g & ❑Public Safety(3) • t t tz t t t (1)Other Expenditures is any combination of street maintenance,building safety,street resurfacing and public works. It may also be aquisitions,centers,committees,contributions,community development, • Hautline,health and welfare,interfund transfers,park maintenance,refunds,and code enforcement. • (2)City Administration is any combination of administrative services,auditing,City attorney,clerk,council and • manager,data processing,finance,general services,human resources,insurance,legal special services, • legislative advocacy and unemployment insurance expenditures. • (3)Public Safety is any combination of animal regulation,risk management,nuisance abatement,police • services,and traffic safety expenditures. • Source: City of Palm Desert Audited Financial Statements • • • • • • • • • • • -133- • • City of Palm Desert • Historical General Revenue and Expenditures Per Capita • Last Ten Fiscal Years • FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 • Total General Revenue(2) $ 35,287,865 $ 38,030,967 $ 35,333,625 $ 31,576,688 $ 28,555,808 • • Population(1) 42,863 42,334 37,634 36,287 35,162 • General Revenue Per Capita $ 823 $ 898 $ 939 $ 870 $ 812 • • • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 0 Total General Revenue(2) $ 26,019,849 $ 23,846,539 $ 21,208,223 $ 19,082,896 $ 17,506,378 • • Population(l) . 33,471 32,771 27,351 26,510 24,630 • General Revenue Per Capita $ 777 $ 728 $ 775 $ 720 $ 711 • • • FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 • Total General Expenditures(2) $ 30,941,156 $ 31,676,237 $ 26,343,720 $ 25,059,899 $ 21,933,107 • • Population(1) - 42,863 42,334 37,634 36,287 35,162 • General Expenditures Per $ 722 $ 748 $ 700 $ 691 $ 624 • Capita • • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 • Total General Expenditures(2) $ 21,564,364 $ 19,668,302 $ 17,544,825 $ 16,610,495 $ 14,798,240 • Population(1) 33,471 32,771 27,351 . 26,510 24,630 • General Expenditures Per $ 644 $ 600 $ 641 $ 627 $ 601 • Capita • • (1)Population figures are as of January start of fiscal year. • (2)Interfund Transfers In/Out are not included in total. • • • • • • Sources: City of Palm Desert Audited Financial Statements • Population figures from State Department of Finance • I • -134- • • City of Palm Desert • Top 40 Sales Tax Generators • Graph - Historical Sales Tax Trends • June 30,2002 Primary Economic Primary Economic • Top 40 Sales&Use Tax Generators(1) Top 40 Sales&Use Tax Generators I • ALBERTSONS Category Category FOOD CENTERS FOOD MARKETS MERVYN'S DEPARTMENT STORE DEPARTMENT STORES • APPLIANCE SHOWCASE FURNITURE/APPLIANCE MICHAEL'S ARTS&CRAFTS MISCELLANEOUS RETAIL • BARNES&NOBLE BOOKSTORE MISCELLANEOUS RETAIL MOBIL SERVICE STATION SERVICE STATIONS • BED BATH&BEYOND MISCELLANEOUS RETAIL MOLLER'S GARDEN CENTER FLORIST/NURSERY • BEST BUY STORES FURNITURE/APPLIANCE OFFICE DEPOT OFFICE EQUIPMENT • BURTRONICS BUSINESS SYSTEMS OFFICE EQUIPMENT PETE CARLSONS GOLF&TENNIS RECREATION PRODUCTS • CENTRAL WHOLESALE APPL.SUP. FURNITURE/APPLIANCE PETSMART MISCELLANEOUS RETAIL • CIRCUIT CITY STORES FURNITURE/APPLIANCE POOL&ELECTRICAL PRODUCTS BLDG.MATLS-WHSLE • . CONSOLIDATED ELECTRICAL DSTRS. BLDG.MATLS-WHSLE RALPH'S GROCERY FOOD MARKETS • COSTCO WHOLESALE DEPARTMENT STORES ROBINSONS-MAY DEPARTMENT DEPARTMENT STORES • STORE DESERT ELECTRIC SUPPLY BLDG.MATLS-WHSLE ROSS STORES APPAREL STORES • DESERT PIPE&SUPPLY BLDG.MATLS-WHSLE SAKS FIFTH AVENUE DEPARTMENT STORES • DESERT SPRINGS RESORT&SPA RESTAURANTS SIMPLOT PARTNERS FOOD PROCESSING EQP • GUTHY-RENKER BUSINESS SERVICES ST JOHN BOUTIQUE APPAREL STORES • HIGH TECH IRRIGATION BLDG.MATLS-WHSLE STAPLES OFFICE SUPERSTORE OFFICE EQUIPMENT • HOUSE2HOME FURNITURE/APPLIANCE T.J.MAXX APPAREL STORES J C PENNEY COMPANY DEPARTMENT STORES TARGET STORES DEPARTMENT STORES• LEGACY HOME FURNISHINGS FURNITURE/APPLIANCE TOMMY BAHAMA PALM DESERT RESTAURANTS • MACYS DEPARTMENT STORE DEPARTMENT STORES TOYS R US MISCELLANEOUS RETAIL • MARSHALL'S STORES APPAREL STORES VONS GROCERY COMPANY FOOD MARKETS • (1)Listed in Alphabetical Order • Sales and Use Tax Trends FY 92193-FY 01/02 • Millions %=%Change from Prior Year • 14.0 17.6% 3.1% • 13.5 13.0 • MIN 12.5 MN -14.3%= 12.0 11.5• 11.0 _ 10.5 � iinai= ra rill NMI ; • 195 MINI NM• ♦i — 9.0 NM SI .0 fi ftti fi fi MEM fi — — fi hi f! • 7.5 MN ItitiM fi Mill f>r — hi MN — hi Fitts NM fi • 5.511•111shi NMI sta WM II= ftst MEI • 5.0 , • i . F • T Amounts. in millions 6.251 7.208 7.222 8.133 8.942 9.595 10.878 13.204 13.633 11.927 • Source:Municipal Resource Consultants,Geobased Revenue Information Program(Grip database)&City of Palm Desert • -135- • City of Palm Desert • FY 2001/2002 and FY 2000/2001 Breakdown of Basic 1% Property Tax Rate • Not In Redevelopment Project Area • • Taxing Agency FY 2001/2002 Rate FY 200012001 Rate • County General 21.10727500% 21.10727500% • • County Free Library 2.728242% 2.728242% • County Structure Fire Protection 5.873086% 5.873086% • City of Palm Desert(1) 7.070052% 7.070052% • • Desert Sands Unified School District 36.221587% 36.221587% • Desert Community College 7.526714% 7.526714% • Riverside County Reg,Park&Open Space 0.426231% 0.426231% • • Riverside County Office of Education 4.094919% 4.094919% • Desert Hospital 1.996808% 1.996808% • Coachella Valley Public Cemetary 0.339927% 0.339927% • • Coachella Valley Recreation&Park 2.071624% 2.071624% • Coachella Valley Mosquito&Vector C ontrol 1.369698% 1.369698% • Coachella Valley County Water 2.736607% 2.736607% • I Coachella Valley County Water Imp.District 80 2.972906% 2.972906% • Coachella Valley County Water Storm Water Unit 3.464324% 3.464324% I 41 General Purpose Basic 1% 100.000000% 100.000000% 41 411 (1)City of Palm Desert is a No-Low Property Tax City and the 7%represents what the state allocates to No-Low , Property Tax Cities. 41 41 1 1 1 1 1 Source:County of Riverside,Property Tax Allocation Percentages,TRA 018-041. 1 1 -136- 41 • • City of Palm Desert • FY 2001/2002 Breakdown of Basic 1% Property Tax Rate • Not In Redevelopment Project Area • • O County General • • El County Free Library • • ❑County Structure Fire • 6% 7% Protection • 3% CIs City of Palm Desert(1) • • 37% x Mkt ;, ■Desert Sands Unified • is , a School District • 21% a+ �. fiti ^�; t` i ❑Desert Community • a < t College 3i ,r7 a Vni °I • •Riverside County Reg. Ly�ik.'E+Y • y Park&Open Space • ['Riverside County Office • of Education 3% • •Desert Hospital • 3% • 3% ❑Coachella Valley Public 1%% Cemetary • 0%2% 4% 0% 8% • 0 Coachella Valley • Recreation&Park • 0 Coachella Valley Mosquito&Vector• Control • Coachella Valley County Water • • U Coachella Valley County Water Imp. • District 80 • IN Coachella Valley County Water Storm • Water Unit • (I)City of Palm Desert is a No-Low Property Tax City and the 7%represents what the state allocates to No-Low • Property Tax Cities. • Source:County of Riverside,Property Tax Allocation Percentages,TRA 018-014 • • • • -137- 1_ • City Of Palm Desert • Historical Net Assessed Taxable Values Citywide Last Ten Fiscal Years • • • - - -- FY 2001/2002... 2000/2001 1999/2000 '1998/1999 1997/1998 • Secured:(I) • Lalnl. . . $ 2,200,864,184 $ 1,954,303,380 $ 1,741,543,322 $ 1,655,103,018 $ 1,628,468,665 linprovements 4,902,119,469 4,362,630,597 3,869,968,459 1600,322,755 3,462,314,634 • Personal Property 23,005,947 21,975,379 27,178,963 24,354,115 21,253,740 Penalty 146,465 321,504 76,686 253,988 102,904 • Less Other Exempt (69,912,768) (58,818,186) (54,607,788) (70,815,494) (69,320,709) Less Home Owner Value (62,213,997) (61,183,329) (59,688,587) (59,743,660) (59,008,600) • Less D inv.Value 0 0 0 • Total Net Assessed Taxable Secured Value 6,994,009,300 6,219,229,345 5,524,471,055 5,149,474,722 4,983,810,634 • Unsecured:.. -:... • Land 406,306 277,839 293,666 428,124 915,383 -..impm'ements 102,802,843 98,997,655 81,516,884 74,972,495 66,958,298 • Personal?nanny 136,519,230 137,417,880 119,224,153 110,194,540 88,974,622 Penalty 3,767,747 5,021,021 1,717,699 2,214,848 2,012,870 0 Less Other Exempt (10,318,560) (10,802,141) (6,773,153) (1,975,533) (5,946,570) . Total Net Assessed TaxableUnsecured Value 233,177,566 230,912,254 195,979,249 185,834,474 152,914,603 Total Net Assessed Taxable Value $ 7,227,186,866 $ 6,450,141,599 $ 5,720,450,304 $ 5,335,309,196 $ 5,136,725,237 • . . ..... FY 1996(1997 1995/1996 1994/1995 1993/1994 1992/1993 • Secured;(1)_- • Land $ 1,601,710,837 $ 1,572,840,288 $ 1,378,950,557 $ 1,334,250,061 $ 977,153,447 0 lmprovensaus 3,337,986.039 3,302,861,825 2,825,099,215 2,799,592,483 2,288,039,010 Personal Property 18,655,554 27,134,660 18,167,708 17,960,788 15,177,009 • Penalty 238,539 474,815 176,752 48,609 241,269 Less OtherExempt (66,750,829) (65,720,948) (61,003,502) (51,061,778) (22,345,618) • less Home Owner Value (57,997,400) (56,149,600) (42,865,200) (41,423,143) (32,291,359) • Less B Inv..Value 0 0 0 0 0 Total Net Assessed Taxable Secured Value 4,833,842,740 4,781,441,040 4,118,525,530 4,059,367,020 3,225,973,758 • Unsecured:. • Land 732,588 851,747 568,329 767.889 1,143,574 0 -Improvements 63,637,085 61,927,335 56,727,274 48,517,128 73,342,284 PetsnnalP(pperty 79,548,931 68,477,086 70,356,739 59,708,601 79,117,209 • Penalty 1,033,860 2,973,031 1,831,948 1,184,371 1,573,777 Less Other Exempt (4,422,000) (5,268,989) (5,657,754) (2.113,724) (768,645) 111 Total Net Assessedtaxabk Unsecured Value 140,530,464 128,960,210 123,826,536 108,064,265 154,408,199 , Total Net Assessed Taxable Value _ $ 4,974,373,204 $ 4,910,401,250 $ 4,242,352,066 S 4,167,431,285 $ 3,380,381,957 I (I)Secured values includes any state assessed data. , 41 Source: County of Riverside,County Auditor Controller,Assessed Valuations . 41 411 II II 41 I -138- 41 • City Of Palm Desert • Change in Taxable Value • Citywide • Fiscal Year 2001/2002 and 2000/2001 • FY 2001/2002 2000/2001 %Change • Seemed: (!) • Land $ 2,200,864,184 $ 1,954,303,380 12.6% • Improvements $ 4,902,119,469 $ 4,362,630,597 12.4% • Personal Property $ 23,005,947 '$ 21,975,379 4.7%Penalty $ 146,465 $ 321,504 -54.4% Less Other Exempt $ (69,912,768) $ (58,818,186) 18.9% • Less Home Owner Value $ (62,213,997) $ (61,183,329) 1.7% • Total Net Assessed Taxable Secured Value 6,994,009,300 6,219,229,345 12.5% • Unsecured: • Land $ 406,306 $ 277,839 46.2% • Improvements $ 102,802,843 $ 98,997,655 3.8% Personal Property $ 136,519,230 $ 137,417,880 -0.7% • Penalty $ 3,767,747 $ 5,021,021 -25.0% Less Other Exempt $ (10,318,560) $ (10,802,141) -4.5% • Total Net Assessed Taxable Unsecured Value 233,177,566 230,912,254 1.0% • Total Net Assessed Taxable Value $ 7,227,186,866 $ 6,450,141,599 12.0% • (1)Secured values includes any state assessed data. • • • • • • • • • • • • • • • Source:County of Riverside,County Auditor Controller,Assessed Valuations • • • • 139 • • CITY OF PALM DESERT • ASSESSED VALUE BY ECONOMIC CATEGORY FY 2001/2002 • •• CATEGORY PARCELS ASSESSED VALUE % NET TAXABLE VALUE(I) % • Residential 23,619 5,037,133,648 66.5% 5,032,419,334 68.8% • • (;ommerciavindustrial 749 1,125,714,409 14.8% 1,120,667,577 15.3% • Recreational 122 83,027,222 1.1% 83,027,222 1.1% • Institutional : 33 81,527,746 1.1% 57,266,084 0.8% • Vacant Land 1,709 346,185,877 4.6% 345,328,378 4.7% • Exempt 2,191 182,970,862 2.4% - 0.0% • Possessory interest(1) 1397271 421,677,373 5.6% 390,354,934 5.3% • MIscellaneous. 167 32,563,239 0.5% 28,853,217 0.4% • Unsecured(1) 126601 243,496,126 3.2% 233,177,566 3.2% • Totals(1) 28,590 7,554,296,502 100% 7,291,094,312 100% • • • • (I)Possessory Interest and Unsecured Parcels not included in Total Parcels • • • • • • • • • • 41 Source:HdL Conn&Cone Rivenide County Assessor 2001/2002 Combined Tax Rolls a0 , • • CITY OF PALM DESERT • ASSESSED VALUE BY ECONOMIC CATEGORY • FY 2001/2002 • • • • Recreational • Assessement Value Commerola nduatrlal 1.1% • Residential Institutional 1.1% • 1 airs ; • : k / N t * `r° ., s , ---� . Vacant Lard • �s. s . -, 4.5% qM R yK • ; �' cg4 1 - Exempt • • Possessory Interest 5.6% • Miscellaneous• Unsecured 3,2% 0.5% • • Net Taxable Value • Residential Commercial/Industrial Recreational l � i • 68.8% , 15.3% 1.1% • I • s FS'a4' 'y`'� i�`"�"•`'-r"' x. '§,>is� -- Vacant Land • '%4rd x , te,',t2.'a..r 4.7% <1: v A S �. r ,dh b • .,w rr' {'x r .v o Exempt • P R ; 'A. 4. O.v/O � f� �yL�Li� . Possessorylyderest • 5.3% • • Miscellaneous Unsecured 0.4% • 3.2% • • Source:HdL Coffin&Cone • Riverside County Assessor 2001/2002 Combined Tax Rolls • • • • • • • • -161- • • City Of Palm Desert • Property Tax Levy and Collections • Last Ten Fiscal Years • • FY 2001/2002 2000/2001 /999/2000 1998/99 1997/98 • • Gross Tax Levy $ 2,603,643 $ 2,426,812 $ 2,391,889 $ 2,327,872 $ 2,230,201 • • Current Tax Collections(1)(2)(3)(4) 2,475,308 2,387,760 2,064,974 1,993,999 2,011,099 • • Percent of Current Levy Collected 95.1% 98.4% 86.3% 85.7% 90.2% • Total Tax CoIlectiuns(inctuding 2,725,950 2,466,758 2,393,368 2,417,572 2,306,753 • delinquencies)(I)(2)(3)(4) • • • • FY 1996/97 1995/96 1994/95 1993/94 1992/93 • Gross Tax Levy $ 2,137,170 1,949,891 $ 1,356,332 831,719 451,560 • • Current Tax Collections(')(2)(3)(4) 1,984,516 1,603,693 1,309,155 699,659 447,754 • Percent of Current Levy Collected 92.9% 82.2% 96.5% 84.1% 99.2% • • Total Tax Collections(ineluding 2,597,674 1,757,606 1,923,273 1,162,835 542,263 • del nqueneies)(1)(2}(3)(4) • (1)City of Palm Desert is on the"Teeter Plan"with the County of Riverside. The first payment was received • in fiscal year 1993/94. • (2)City of Palm Desert is a"No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973 • which is when the City of Palm Desert Incorporated and the Property Tax rates were zero. • Based on current state law the County allocates 7%of the 1%assessed values within the City less the Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes. 0 (3)Fiscal Year 1993/94, 1994/95 and 1996/97 final total collected includes adjustments for No-Low property • tax collections from prior years modified by the County of Riverside. The County adjusted the payment to • the City of Palm Desert(FY 1995/96)for the annexation of Palm Desert Country Club. (4)Fiscal Year 1995/96 collections were lowered by the County adjustments($291,000)of the tax levy. • • Source:Riverside County Auditor Controller Office and City of Palm Desert • • • • • • • • -142- • • • City of Palm Desert • Special Assessment Levy and Collections • Last Nine Fiscal Years • • FY 2001/2002 2000/2001. 1999/2000 1998/99 . 1997/98 • Special Assessment Levy(I) $ 2,698,371 $ 3,275,256 $ 4,545,108 $ 1,838,523 $2,163,334 Special Assessment Collections(I) 2,579,451 3,210,229 4,474,360 1,673,368 2,010,853 • Percent of Levy Collected(1) 95.59% 98.01% 98.44% 91.02% 92.95% • Total Special Assessment Received • following close of Fiscal Year 2,579,451 3,211,226 4,526,233 1,831,068 2,144,632 • (including delinquencies)(I) • • FY 1996/91 1995/96 1994/95 .1993/94 • Special Assessment Levy(1) $ 2,218,158 $ 2,618,291 $ 1,718,668 $1,633,157 • Special Assessment Collections(I) 1,929,254 2,478,883 1,399,108 1,578,570 • Percent of Levy Collected(1) 86.98% 94.68% 81.41% 96.66% • Total Special Assessment Received • following close of Fiscal Year 2,192,911 2,616,076 1,718,668 1,633,157 • (including delinquencies)(1) • • (1)No Information available for fiscal year 1992/93. • • • • • • • • • • • • • • Source:MBIA MuniFinancial Services • • • • . • • -143- • • City Of Palm Desert • FY 2001/02 Top Ten Property Tax Payers • I • 1 Net Local %Net Secured/ Comulathre % • Owner Secured/Unsecured Unsecured Value Net.Secured/ Primary Use& Business Description • Assessed Value(1) CO Unsecured Value Ptlmary Agency. . D S Hotel $ 185,133,521 2.56% 2.56% Commercial Owner of Desert Springs Resort 891 room • RDA#2 Hotel&Golf Course • WEA Palm Desert 78,260,549 1 08% 3.64% Commercial Owners of 800,000 sq.ft.Retail Shopping • RDA#1 Mall located at 72840 Highway 111. • Property California SCJLW Commercial Owners of Desert Crossing commercial • One Corpbrstlem 55,744,979 0.77% 4.42% RDA#1 center located at Highway 111 and Fred Waring Drive. • El Paseo Properties Limited 50,782,961 0.70% 5.12°h Commericial Owners of Garden's at El Paseo up-scale • Partnership RDA 82 Annex retail shopping Center. • Vacant • Marriott Ownership Resorts 31,352,352 0.43% 6.66% LarxffPossessory Marriott Vacation Timeshare Developer Interst/Commerical • RDA#2 CNL Hospitality Partners LP 27,999,000 0.39% 6.23% Commericial Owner of Marriott Courtyard and Residence • Tax District#1 Inn • JH Palm Desert 26,280,906 0.36% 5.84% Residential Apartment leasing San Tropez Apartment • Tax District#1 located at 73373 Country Club Dr • 1 Nations/Golf Operating LP 26,098,029 0.36% 7.33% Resitlen Golf Course Operations • RDA 82 Annex Felcor Suites Limiter Commercial Partnership26,027,660 0.36% 5.48q0 RDA#1 Embassy Suites Hotel • 1 Big Horn Development 22,043,694 0.31% 6.97% Residential Residential Land Developer • RDA e1 • Total Net Assessed Value $ 529,723,651 7.33% • • • (1)2001/2002 Net Local Secured Assessed Valuation:$7 $7,227,186,866 • • • • • • • • • Source:HdL Coren&Cone • Riverside County Assessor 2001/2002 Combined Tax Rolls • • • • . • -144 • • • • City of Palm Desert Historical Net Assessed Taxable Values Citywide • Graph-Assessed Valuation Growth • Last Eight Fiscal Years • • Net Assessed Valuation - Historical Comparison • Value in Millions (All Property) FY 94/95 to FY 01/02 • • $8,000 • $6,000 • $4,000 • • $2,000 • 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 • • • Percent Increase in Assessed Valuation • (All property) FY 94/95 to FY 01/02 • 18.00% • 16.00% - 15.75% 12.76% • 14.00% - 12.05% 12.00% - • 10.00% - 7.22%- - 8.00% - 3.26% - - ' -3.87% • 6.00% - - • 4.00% - 2.00% 1.B0% • 0.00% 1.30% • 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 • Historical Major Additions • Annexations FY Retail Centers FY Cook Street Area 88/89 Town Center Mall 83/84 • Country Club#28 93/94 Desert Springs Marriott 86/87 • Price Club#30 93/34 One Eleven Town Ctr 88/89 • Palm Desert CC#29 94/95 Mervyn's Center 92/93 Desert Crossing 95/96 • Lucky's/Albertson Deep Canyon 96/97 • Remodel 111 Town Ctr(Best Buy) 97/98 Gardens at El Paseo 98/99 • • • • • • • -145- • • • City of Palm Desert • DEMOGRAPHIC STATISTICS • Last Ten Fiscal Years • Fiscal City of Percentage Riverside Percentage • Year Palm Desert Increase County Increase • End Population (Decrease) Population JDecrease) 2002 42,863 1.2% 1,644,341 3.06% • 2001 42,334 12.5% 1,595,576 5.73% • 2000 37,634 3.7% 1,509,114 2.43% 1999 36,287 3.2% 1,473,307 2.23% • 1998 35,162 5.1% 1,441,237 5.48% • 1997 33,471 2.1% 1,366,353 0.18% 1996 32,771 19.8% 1,363,880 (0.9%) • 1995 27,351 3.2% 1,376,198 2.49% • 1994 26,510 7.6% 1,342,793 1.09% • 1993 24,630 (0.8%) 1,328,320 2.99% • • • • • • • • • • • • • • • • Sources: State Department of Finance (January of each year). • • • • • • • • • • • -146- • • • • • City of Palm Desert • BUILDING PERMITS AND • TAXABLE TRANSACTIONS • Last Ten Calendar Years • Building Sales Tax • Calendar Permit Percent Building Taxable Percent Sales Tax Year Valuation Change Permits Transactions Change Permits • 1992 136,251,422 94% 4439 526,926,000 2% 1993 • 1993 74,560,847 (45%) 3605 599,585,000 14% 2232 • 1994 101,368,670 36% 4162 637,909,000 6% 2250 1995 98,299,745 (3%) 4377 682,490,000 7% 2363 • 1996 106,325,577 8% . 4039 746,463,000 9% 2357 • 1997 166,035,678 56% 5166 829,820,000 11% 2354 1998 254,758,860 53% 6886 923,979,000 11% 2363 • 1999 197,654,627 (22%) 6015 1,098,211,000 19% 2549 • 2000 209,416,185 6% 5672 1,217,986,000 11% 2684 2001 172,424,192 (18%) 5249 1,224,284,000 1% 2833 • • • • • • • • • • • • • • • • • • Source: City of Palm Desert • State Board of Equalization • • • • • • • • -147- • • City of Palm Desert • Miscellaneous Statistics • June 30, 2002 • City/ Municipal Government • Form of Gorvemment: Council-City Manager/Charter City • ii Date of Incorporation: November 26, 1973 • Number of Employees 152 Full Time Employees • Size of City 25.5 Square Miles • Geographic Location: Located 117 miles east of Los Angeles and 515 miles • south of San Francisco. • Streets 157 paved street miles • Number of Business Licenses 8,582 active business licenses • CONTRACT SERVICES: • Police Department Contract with Riverside County Sheriff-61 positions plus 12 support staff Fire Department Contract with Riverside County/State Fire 35 positions • Animal Control California Animal Care • Water&Sewer: Coachella Valley Water District • Trash Collection Waste Management • Electric Southem Calif. Edison Gas Southern California Gas • Telephone Verizon • Airport Palm Springs International Airport • Public Education • Elementary School (grades K- 5) 3 • Middle School (grades 6-8) 1 • High School (grades 9 - 12) 1 Community College 1 • CSUSB- Palm Desert Campus 1 • Insurance Coverage • General Liability Coverage Calif.Joint Powers Insurance Authority 50 Million/Event • i (Excludes Earthquake& Flood) Excess Coverage:American Guarantee& Liab. Insurance • Special Events Calif.Joint Powers Insurance Authority 1 Million • Workers Compensation Calif.Joint Powers Insurance 5 Million • Property Insurance Robert Driver Based on Prop.Value • Health Insurance • Medical California PERS; choice of PPO, HMO • Dental Delta Dental • Vision Vision Service Plan • Disability Insurance UNUM - Life Insurance Company of America • Life Canada Life ' • Retirement California PERS- Public Employers Retirement System • Source: City of Palm Desert • • -148- • • • • • • • • • • • • • Bonded Debt Statistics • City of Palm Desert, California • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • City of Palm Desert • Computation of Legal Debt Margin • June 30, 2002 • •• Assessed Valuation: Amount • ' Total Assessed Valuation $ 7,227,186,866 • Bonded Debt Limit(1$ 4 of assessed value)(1) $ 1,084,078,030 • • Amount of Debt Subject to Limit: • Total Bonded Debt 39,686,000 • Less: Special Assessment District Bonds. (39,686,000) • • Total Amount of Debt Subject to Limit: - • Legal $ 1,084,078,030 1. al Debt Margin • • (1) Section 43605 of the California Government Code. • • • • • • • • • • • • • • • • • • • • Source: California Municipal Statistics,Inc. San Francisco • • • • -149- • • City of Palm Desert DIRECT AND OVERLAPPING BONDED DEBT • JUNE 30,2002 • 2001/02 Assessed Valuation: $ 7,289,400,863 • Redevelopment Incremental Valuation: 4,212,811,115 Adjusted Assessed Valuation: $ 3,076,589,748 • DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT: %Applicable Debt 6/30/02 ' • Coachella Valley Unified School District 0.009% $ 1,717 Desert Sands Unified School District Lease Tax Obligations 39.729% 15,961,126 • Palm Springs Unified School District 0.818% 752,887 Coachella Valley County Water District,ID No. 16 66.553% 73,208 • Coachella Valley County Water District,ID No.53 43.862% 271,944 • Coachella Valley County Water District,ID No.54 75.913% 5,329,093 Coachella Valley County Water District,ID No.55 21.272% 2,068,702 Coachella Valley County Water District,ID No.58 53.209% 3,421,339 • City of Palm Desert • 100.000% 0 City of Palm Desert 1915 Act Bonds 100.000% 18,697,000 • • City of Palm Desert Community Facilities District No.91-1 100.000% 20,989,000 • Riverside County Assessment District No. 150 - 30.696% 67,531 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 67,633,547 • • OVERLAPPING GENERAL FUND OBLIGATION DEBT: • Riverside County General Fund Obligations 4.185% $ 26,505,972 Riverside County Board of Education Certificate of Participation 4.185% 626,165 • Desert Sands Unified School District Certificates of Participation 39.729% 9,871,044, Palm Desert Water Services District Certificates of Participation(3) 100.000% 590,000 • Coachella Valley County Water District,ID No.71 Certificate of Participation 28.622% 3,513,351 • TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 41,106,532 Less: Riverside County Administrative Center Authority(2) (272,444)• Palm Desert Water Services District Certificates of Participation(3) (590,000) • TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 40,244,088 • GROSS COMBINED TOTAL DEBT $ 106,740,079 (1) • NET COMBINED TOTAL DEBT $ 107,877,635 • - • (1)Excludes tax revenue anticipation noted,revenue,mortage revenue and tax allocation bonds and non-bonded • capital lease obligations • (2)100%self-supporting from tax increment revenues (3)Palm Desert Water Services District C.O.P.was assumed by Coachella Valley Water District • • Ratios to 2001-02 Assessed Valuattions: Direct Debt 0.00% • Total Direct and Overlapping Tax and Assessment Debt 0.93% • • Ratios to Adjusted Valuations Gross Combined Total Debt 3.53% • Net Combnined Total Debt 3.51% • • STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/02 $ 0 • Source:California Municpal Statistics,Inc.,San Francisco • • • -150- • City of PalmDesert • Revenue Bond Coverage • Last Ten Fiscal Years • FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 • Revenue Available for Debt (1) • Service: - •' DEBT SERVICE • REQUIREMENTS: • Principal • Interest • Total • Coverage • • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 • • Revenue Available for Debt • Service: DEBT SERVICE • REQUIREMENTS: • Principal • Interest • Total • Coverage • • (1)There are no Revenue Bonds for the City of Palm Desert for the fiscal years 1990/1991 to 2001/2002 • • • 41 411 • Source:City of Palm Desert , a -151- • • City of Palm Desert • Ratio of Annual Debt Service Expenditures For General Bonded Debt to Total • General Governmental Expenditures • Last Ten Fiscal Years • ' FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 _• • DEBT SERVICE: (1) • Principal • Interest • Total • Total General Governmental • Expenditures Ratio of Total Debt Service to • Total General Govu junental • Expenditures • • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992(1993 • DEBT SERVICE: • Principal • Interest • Total • Total General Governmental • Expenditures • Ratio of Total Debt Service to Total General Governmental • Expenditures • • (1)There is no General Obligation Debt for the City of Palm Desert for the fiscal years 1990/1991 to 2001/2002 • • • • • • • • • • Source: City of Palm Desert. -152- 1 • • City of Palm Desert • Ratio of Net General Obligation Debt to Assessed Value and Net General Obligation Debt Per • Capita Last Ten Fiscal Years • • FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 41 Net General Obligation Debt 0) • Assessed Value • Percent of Net General Obligation debt to • Assessed Value • Population Net General Obligation Debt Per Capita • • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 • Net General Obligation Debt • Assessed Value • Percent of Net General Obligation debt to • Assessed Value Population • Net General Obligation Debt Per Capita • • (1)There is no General Obligation Debt for the City of Palm Desert for the fiscal years 1990/1991 to 2001/2002 • • 41 1 Source:Riverside County Auditor Controller Office and City of Palm Desert 4 4 4 4 1 -153- 4 1 "• • • • City of Palm Desert Special Assesment Information • June 30,2002 ,• 1995 A 1995 B 1995 C 1997 Bonds 1997 Bonds 1997 Hinds 1998 Bonds • District Nansc4Dmeripaon Marks-Roos Pool Marks-Rom Marks-Roos 92-1R 941A R Pod(84-I B) Pool(87-I) SaWeeiaee 94-3 Memo Iadim-Ridge Canyons@ (83-I) Tlerruvbta Bighorn 1992A R Bighorn • Bend Issue Date 09/26/95 09/2695 09/2695 12/1197 12/1197 120194 059295 12/1197 12/1698 0 Final Maturity Date 09AIA31 09@0S 09N7.C8 0992112 0992119 09/0214 0992/t0 (0,0120 09,02118 Highest Intend Rate 5.70% i70% 5.70% 6.325% 6.475% 8.20% 6.80% 6A25% 6.050% • Bond Issue Amount 5 695,000 5 0.880,000 1,775,000 1,678,000 5,332,000 1,832,000 1,500,000 22,989,030 34,760,000 • Matured Principal 5 610,000 $ 2,460.000 700,000 129,000 229,000 367,000 220,000 7,335,000 2,500,000 Called Principal 5 85,000 $ I,560.00) 345,000 1.520,000 5,025,000 415,000 90,000 200,000 18,240,000 • Outstanding Bonds(4) 5 0 5 860,000 730,000 29,000 78,000 1,050,000 1,190,000 19,974,000 14,000,000 • Redertyticn Prenntum 3.25% 33S% 3.25% 3.00% 0.00% 0.00% 3.00% 2.00% 3.00% Original Parcels 962 3S4 1,307 86 188 88 129 884 213• Active Pawls 0 353 1,255 6 17 75 122 94 • Reserve Requirement(5) 5 0 S 331,509 S 143,000 S 2,900 5 10,481 5 140,100 S 121,080 2,009,332 S 1,379,747 • Reserve Balance 00/01(1) 153 $ 969,738 $ 155,196 S 7,664 S 51,935 S 158,163 S 126,143 1,642,946 $ 1,872,652 Principal Due 01/02(2) 0 260.000 105,000 0.000 12,000 55,000 35,000 731,000 635,600 • Principal Levied 01/02(3) - 260.040 129,857 7,244 12,254 59,660 35,000 731,000 635,000 • Interest Due 01g2(2) 0 57,855 46,597 1,793 13,626 91,177 81,487 1,255,349 948,247 Interest Levied OIA72(3) 0 92,131 60,586 5,918 22,539 102,771 85,052 1,255,349 984,357 • 0102 Delinquency Rate • Arbritrge Installment Compumnm 0992/00 0902A0 09A7200 09/30/02 09/30N3 0997A4 09N7A)4 09/30/02 1111603 • Date: 90%Rehve Due • Arbriege Yield Rate 5.8194% 5.8194% 5.8194% 5.6882% 5.6880% 7.9769% 6.672% 5.6882% 5.8386% Artitage-Amount Owed - - - - - - - - • Cadinuiog Disclosure Lost Report 10/14/1999 10/11/1999 10/14/1999 10/14/1999 12/13/1999 06/102000 06/302000 10/1499 12/1399 • lerY . (1)Reserve Balances are as of 9/3602,shortfall will be recoveredby adder levy,and interest earnings see Financial Statements Noe 10. . (2)Amami represents principal and interest to be collected on the FY 0203 tea roll foe Debt Service Payment due in FY 01/04. (3)Levied amounts reflect adjustments construction %tion funds,reserve tauredemption funds other adjustments.. • (4)Represents O ustaoding Bonds after September 2,2002 principal paymem. • (5)Reserve Requirement as of92,02 II Sauce:Muni Financial Annual Report II 11 III II II II II II I I I I i -164- 41 411 41 41 This page intentionally left blank � 41 41 41 4 1 1 1 1 1 4 4 1 1 4 4 • • • • • • • • • • Revenue Statistics • Redevelopment Agency • • City of Palm Desert, California • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ^, 6.44paint Data •; t1 ., / N. •� /.'I ` • �'21. Redevelopment • fi _ Agency • °• Project Areas • • ii C : • t�e z1 mat DR • faAN � � r� ' l tir 4 ')lit • t 1887a i T7 I ki±kt • a vg , II• 'r'p-- 2s 1 QlI/fM > a t" I.Y • ., .■ • acg 1 F1 rib- i i {1 ->,' "� F°r w ` . ' '�! rE�■ '. ° � i t • 11�1I�1l•1 �e Pr»JectAree No.•S ��.... � 1I Aril-' &1 v 1 18814 f pmjectArca Na 4 " ! t • • Al'iDO 741 a..; a 1r� a3 .e, _ .:..r:'ws;t4x fe®ruareme '�. r 4 ��[ .v 1 d`hp HTi J��3'+Uy• OIYIOIIIe 41 proAt J�.1 1 .{ 6 i 1876 �' g,4 °r? ,. a `,'* "i sinew?In no - s i 8 M try14 7 Y i t ".' xF s.,f, Project Area No. 1 -Original a I •21' t ' ! ' _ Fr 3 Project Area No. 1 -Added Territory �_ `T , Project Area No.2 •.•-.r. ,,,m Z t- Project Area No 3 41 a Ili'! F r � a r Project Area No.441 s.' ''. «PAW'S:Sx r . „ j__- !City Limits . Project Area Na 1 ' t 42 Add d,Tel aY i ,1, s '' • 1982' ;tAten . .I N•E\ i ti ( f 0., • t p ,I 1,1100 4 71 / ram! -""- June,2002 4 • • City of Palm Desert • Project Area Statistics • June 30,2002 RDA 1 RDA 11982 • Description - RDA 2. RDA 3 RDA 4 Original Annex• Date Project Area was 07/16/75 10/16/82 07/15/87 07/17/91 07/19/93 • Established • MostRecentAmendment 01/24/91 01/24/91 N/A N/A N/A Date • Established Time Limits: • • Repayment of 07/16/2025 11/25/2031 07/15/2037 07/17/2041 07/19/2043 Indebtedness • -Project Duration 07/16/2015 11/25/2021 07/15/2027 07/17/2031 07/19/2033 • Lastl3atetoincur 01/01/2004 01/01/2004 07/15/2007 07/17/2011 07/19/2013 • indebtedness • Debt Limits(t) $ 200,000,000 $ 200,000,000 $ 150,000,000 $ 100,000,000 $ 135,000,000 • Tax Increment Limit $ 758,000,000 $ 500,000,000 $ 800,000,000 $ 360,000,000 $ 600,000,000 • Types of Area in Project R,C,P R,C,P R,C,P,0 R,I,C,P R, I,C,P • Acreage Size of 580 5,240 3,120 764 2,260 Project Area • • R=Residential, C=Commercial, P=Public Facilities, I=Industrial, 0=Other • (1)Figures are unadjusted and should be annually adjusted by Consumers Price Index set by • the Bureau of Labor Statistics • • • • • • • • • • • • • • • Source: Palm Desert Redevelopment Agency • • • • • -155- • • • City of Palm Desert • Redevelopment Agency Tax Allocation Bond Issue Information • June 30,2002 • PROJECT AREA#1 PROJECT AREA#2 $71,955.000 $17,505,000 54,090,000 • $24,025,000 $22,070,000 DESCRIPTION Tax Allocation Tax Allocation Tax Allocation • Tax Allocation Bonds Tax Allocation.Bonds Bonds(1) . :Revenue Bonds .Revenue Bonds. Years 30 25 28 30 30 • Bond issue Date 06/01/95 07/24/97 03/13/02 08/17/92 06/01/95 Final Maturity Date 04/01/25 04/01/23 04/01/30 08/01/22 08/01/25 • Highest Interest Rate 5.20% 5.625% 5.100% 6.125% 5.20% • Bond Issue $ 24,025,000 $ 71,955,000 $ 22,070,000 $ 17,505,000 $ 4,090,000 Outstanding Bond.Amount $ 22,930,000 $ 66,230,000 $ 22,070,000 $ 14,860,000 $ 4,005,000 • Call Premium 0-2.00% 0-2.00% 0-2.00% 0-2.00% 0-2.00% Bond Insurer MBIA MBIA MBIA MBIA MBIA • Reserve Requirement(2) 1,955,525 5,126,790 2,804,344 1,278,556 344,463 • Reserve Balance(2) Called Bonds $ 0 $ 0 $ 0 $ 0 $ 0 • Principal Due 02103 235,000 2,205,000 0 370,000 30,000 Interest Due 02/03 1,351,345 3,510,349 1,170,399 897,502 235,050 • Arbiltage Yield Rate 6.0451% 5.4584% 5.2939% 6.1116% 6.0485% • Arbdtage-Amount Owed - - - - • Arbritage Five Year Due Date: 06/14/00 04/01/02 04/13/07 08/01/02 06/14/00 • PROJECT AREA#4 HOUSING FUND • $11,020,000.. $15.69%000 $48,760,000 $6,305,000 • DESCRIPTION Tax Allocation Tax Allocation Tax Allocation Tax Allocation Revenue Bonds Revenue.Bonds Revenue Bonds Revenue Bonds • Years 30 30 30 13 • Bond Issue Date 03/01/98 11/28/01 01/01/98 08/01/95 Finial Maturity Date, 10/01/28 10/01/31 10/01/27 09/01/08 • Highest Interest Rate 5.00% 4.80% 5.10% 5.55% Bond Issue Amount $ 11,020,000 $ 15,695,000 $ 48,760,000 $ 6,305,000 • Outstanding florid Amount $ 11,020.000 $ 15,695,000 $ 47,315,000 $ 3,865,000 • Call Premium. 0-2.00% 0-2.00% 0-2.00% 0-2.00% Bond Insurer MBIA MBIA MBIA MBIA • Reserve Requirement(2} 768,020 965,780 3,625,950 630,500 • Reserve Balance(2)_ (2) (2) (2) 731,401 Called Bonds $ 0 $ 0 $ 0 $ 0 • Prindpal Due 02103 205,000 150,000 530,000 470,000 Interest Due 02103 551,196 707,275 2,346,560 190,847 • Artxltage Yield Rate 5.2271% 4.9464% 5.1343% 5.2231% Arbritsge-Amount Owed. • Arbdtage Five Year due Date: 10/01/02 11/28/06 10/01/02 09/01/04 • _ . _. • (1)Bond was partialy refunded.See Note 6 on page 48 for further details. • (2)A surety bond was issued by MBIA Insurance,future reserve balance's will be zero. • • • • •Source:City of Palm Desert and Redevelopment Agency • • -156- • • • • City of Palm Desert FY 2001/2002 Breakdown of Basic 1% Property Tax Levy Rates • Redevelopment Project Areas • 71, .2t x 3,7; a13i:W:1*.',Lam'bi:.. ^lick 'zT gki,11 Sz Rate �`",,x _,.m. k -'1�°v''Ys fid } 't ,� r^S .. • # ;" �. 4¢ h'"J u >y3 3^ Y 'C a 4�S , 5 xs- #C�40 ; 51st n RDA 1 1982 k ,s a`� '- _ " 'g Taxing Agency »a M% RDA 1aOrlginal 411 t RDA r ,.,RDA ?r c,tk/RDA40itt €. • Counry Gen eral r _,+ ', ''. 28.40707077% 28.33500441% 27.41390970% 23.65420610% 2194551607% 4 4- .0 t 4' h 1, , . Counyrllbrary, +, i .41` ,-�- tr 2.75047045% 2.88818101% 2.84147510% 2.82512840% 2.83324007% • S,o0nty*.' a� u7 5.92094388% 6.21739709% 6.11684420% 6.08166300% 6.09911919% • Qty of In n Wells°Anne`ic' )',& z 0.00000000% 0.00001074% 0.00000000% 0.00000000% 0.00000000% • Super�nsotRoad Distdd4`r -4 0.00000000% -0.00045889% 0.00000000% 0.00000000% 0.00000000% IIII Cdyofpalm`Desait ,r sx.;; 0.00000000°h 2.26854995% 2.46936260% 6.70409270% 8.57423319% • Rand o fupmag}ibiary t, ' 0.00000000% 0.01835967% 0.00000000% 0.00000000% 0.00000000% Regli Mliage'F11g Ascotil °'''4'"+s - • v 0.00000000% 0.03952291% 0.00000000% 0.00000000% 0.00000000% s, S r �9 Fx. iR i 3 '='. • t�Sanas.Umfr 1::: nd District + 36.51677907% -36.78653971% 34.35940850% 37.50800870% 37.61563361% • a 4 45 r, s is. Palm 3pmij]s UrlfiedrStho`d Distddt • 0.00000000% 0.000000.00% - 2.45012860% 0.00000000% 0.00000000% • kxHM 'l."`"�2 a ?x Desalt Cornmundyeolleg; • 7.58804826% 8.05786906% 7.83910570% 7.79402060% 7 81639036% CountyS rTpddeentofSc hoes.. 92 4.12828532% 4.383887% 4.26487600% 4.24034540% 4.25251859% • Rroaratde'Couym[yaRascA,Opent.. 0.42967023% 0.42975435% 0.41468130% 0.35779470% 0.44263228% • SpaCe 'i'.'i^•, 6tnn- a e'" 1 a `i o{ xrq^'' l • Rancho h�&[age Crn roil jit Sernce ii 0.00000000% 0.00000000% 0.00000000% 0.00000000% 0.00000000% racA.:+h r ems. c )i r , • Coaar ;U,alley,PPu c Cemetartl 0.34269162% 0.29533582% 0.32244970% 0.35198320% 0.35300633% • • s 'Pa41:6mS�pdngia is icetary 0.00000000% 0.03154549% 0.01452890% 0 00000000% 0.00000000% • ° yLarwasp an �, 2.01307533% 1.37311922% 1.60673050% 0 40713650% 0.00000000% Kaatt r 'Y4 Ya V• Coad{e0a1(eite944°,:il*&Veda"`- r? s_ 1.38085444°h 1.46635276% 1 A2654480°h 1.41833240% 1.42241015% • t cox rigs x t • C� -. 12ecreadon&Pa1UAt ak. 2.08850076°k 1.79989318% 1.96511960°h 2.14518580% 2.15135123% .�. ^,. 0`„t :s.4 +, as s« • C e ,Va` +.Water 1am - 8.43360987% 5.58861941% 2.85018730% 2.89310460% 6.45751744% • aer, aOQrrry� 0.rfl: 00000000% 0.02051122% 0.03654010% 0.03164930% 0.03643149% • "" - -nt 81 Annex *,, z: 0.00.00000000% 0.00.00000000% 0.00000000% 0.00000000% 0.00000000% tt`���='�'m'cia tea. u"k».Tom,; VsOeweter43isMdstnml3 • C weSt- t -e u 41 &. 0.00000000% 0.00000000rtiW °k 3.60810750% 3.58734860% 0.00000000% • GBneral'Purposa B IE.:41yoRate 100.00000000% 100.00000000% 100.00000000% 100.00000000% 100.00000000% • • Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside • • • • . -157- • City of Palm Desert • Historical Tax Increment Summary • Redevelopment Project Area#1 -Original • I ast Ten Fiscal Years • FYl `2001/2002. 2000t2(i01 1999/2000 _ 1998/1Q99 1997/1998 • Secured/Upsecuted ; $ 6,360,760 $ 6,199,196 $ 5,549,207- $ 5,484,253 $ 5,341,708 • Suppletental PY 29 0 205,722 Suppiemental CY 104,267 140,667 58,920 0 0 • SBE(Utility) p !...} a 285,323 292,520 332,579 322,956 331,955 • __ _ Total Gross Incremelit 6,750,350 6,632,383 •5,940,736 5,807,209 5,879,386 • Low/MOdlHousingSet=Aslde (1,328,643) (1,305,693) (1,168,457) (1,161,442) (1,293,465) • Tax inere rent Less Low/Mod 5,421,707 5,326,690 4,772,279 4,645,767 4,585,921 • Total Pass=Thmllghs(1) ' (922,984) 0 0 0 0 • bB 2557 harge,4 (107,137) (103,919) (98,451) (104,485) (62,056) • Net Tax Increment Agency(2) 1 $ . _4,391,586 $ 5,222, $ 4,673,828 $ 4,541,282 $ 4,523,865 • • FY 1996/1997 199511990 1994/1995 1993/1994 1992/1993 Secured/(litsecured -+ $ 5,185,911 $ 5,098,516 $ 4,913,481' $ 4,774,310 $ 4,490,520 • Supplemental PY , 138,806 (2,862) 34,460 1,062 50,000im supplemental CY > y 0 65 1,587 870 167,900111 SBE(Utility) ; , 324,173 329,675 356,256 361,512 357,784 • Total Gress Increment ' 5,648,890 5,425,394 5,305,784 5,137,754 5,066,204 . Low/Mod-HousingSetAside (1,242,756) (1,193,587) (1,167,272) (1,130,306) (1,114,565) . Tax Increment Less Low/Mod 4,406,134 4,231,807 4,138,511 4,007,448 3,951,639 , Total Pass-Tbroughs(I) 0 0 0 0 0 582557Charges (105,440) (93,751) (93,085) (91,840) (100,000) 4 Net Tax Increment Agency(2) E $ 4,300,694 $ 4,138,057 $ 4,045,42E $ 3,915,608 $ 3,851,639 • 4 Percentage represents change from prior year. 4 4 $5,500,000 r11.75% I 4 2.92% 0.39% 5.19% ' $5,000,000t 11591% I � ,• $4,500,000 - + ,ar} _ 4 i' $4,000,000 h'r , r _ 4 a $3,500,000 I I I I t 4 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 4 (1)RDA Project Area 1 does not have Total Pass-Throughs with the exception of FY 1991/92. , (2)Net Tax Increment Agency does not include Debt Service payments. ' Sources:City of Palm Desert,Tax Increment Calculations&County of Riverside ' -158- • • City of Palm Desert • Historical Tax Increment Summary Redevelopment Project Area# 1 -Amended • Last Ten Fiscal Years • FY 2001/2002 20110/2001 .1999/2000 1998/1999 1997/1998 t • • SechretUUttsecured , $ 19,826,224 $ 15,969,365 $ 12,683,176 $ 11,791,667 $ 11,283,027 Supplemental PY , 0 0 399,222 91,071 37,518 • Supplemental-�CY _ 2,011,351 1,352,695 480,210 0 0 • SBB(Uuhty), ,r,... , , ,, ,, 134,804 138,207 152,108 142,885 146,870 • Total•GMas Increment -i ,j, 21,972,379 17,460,268 13,714,716 12,025,622 11,467,415 • 1.ow/Mod Housing Set Aside r% (4,330,166) (3,440,490) (2,699,974) (2,405,124) (2,293,483) • Tu Increntent`Less Low/Mod 17,642,213 14,019,778 11,014,742 9,620,498 9,173,932 • Total Pass-Thropghs . " , (9,583,446) (7,339,195) (4,598,001) (3,966,585) (3,732,310) • S152357 Charges . .2 <,, (321,551) (257,820) (214,847) (214,426) (123,390) • Net,Taa lncreinent Ageney(1)�` $ 7,737,217 $ 6,422,763 $ 6,201,894 $ 5,439,487 $ 5,318,232 • ` '''' z ' FY 1996/1997 '1995/1996 ;1994/1995'r; 1993/1994 -1992/1993 • • Secpred/Unsecured s: $ 10,962,401 $ 10,897,657 $ 11,022,093 $ 10,356,278 $ 9,496,593 Supplemental PY- �` (20,053) 68,683 23,470 99,798 100,000 • Supplemental CY f ` 0 10,590 6,114 28,098 421,600 • • SBE(Utthty) 135,100 137,394 148,474 150,499 294,646 • Total Gross Inclement, ` ' r 11,077,448 11,114,324 11,200,151 10,634,673 10,312,839 LowfMod Housing Set Aside (2,215,490) (2,222,865) (2,240,030) (2,126,935) (2,062,568) • Taa lnerementLess LowlMod < 8,861,958 8,891,459 8,960,121 8,507,738 8,250,271 • Total Pasa-Thro ighs n r (3,605,208) (3,617,219) (3,645,290) (3,446,565) (3,358,456) • SB 2557 Charges , ' _ (219,533) (198,731) (190,428) (187,924) (150,000) • Net Tax Increment Agency,(1) { $ 5,037,218 $ 5,075,509 $ 5,124,403 $ 4,873,249 $ 4,741,815 • • • Percentage represents change from prior year. 20.47%I 14.0296 • $10,000,000 , _-3.56% • $8,000,000 12.28k 5.58% • $6,000,000 „. • $4,000,000 e • fr. • $0 4- I I 1 • 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 • • . (1)Net Tax Increment Agency does not include Debt Service payments. II • Sources:City of Palm Desert,Tax Increment Calculations Worksheets&County of Riverside II -159- S. • City of Palm Desert • Historical Tax Increment Summary • Redevelopment Project Area#2 • Last Ten Fiscal Years FX 200112002 2001i/20(Il 1999/2000 1998/1999 1997t1998 • Secured/Unsecured ,. $ 8,575,348 $ 7,816,649 $ 7,120,210 $ 6,330,882 $ 5,899,166 • Supplemental,-^PY < ` 3 151,051 312,878 187,627 • Supplemental CY 257,896 391,197 93,861 0 • SBE(Uttlity)� ,-.'r >' „i ' 22,519 23,088 25,187 • 21,385 21,982 • Total Gross Increment 8,855,763 8,230,934 7,390,309 6,665,145 6,108,774 • Low/lvlodHousingSetAgide +r (1,743,454) (1,621,091) (1,454,141) (1,333,029) (1,221,755) • Taxlncrement Less Low/Mod 7,112,309 6,609,843 5,936,168 5,332,116 4,887,019 • TOtir Pass Throughs `F (3,296,575) (2,790,025) (2,423,175) (2,152,320) (1,913,246) • SB 2557 Chargesr _, (138,491) (125,482) (119,606) (114,107) (80,229) . et N Tax Increment Agency(1) .' ; $ 3,677,242 $ 3,694,336 $ 3,393,387 $ 3,065,689 $ 2,893,544 • FY 1996/1997 , ., 199511996 ,1994(1995 1993/1994 1992(1993 Seca d/Unsecuted ::: $ 5,377,930 $ 5,017,061 $ 4,725,268 $ 4,817,821 $ 4,389,697 • Supplemental PY . ' 65,221 74,933 117,909 14,535 96,000 • Supplemental CY, ' 0 5,019 45,384 37,673 276,700 • SEE'(Uuhty) ,,, 16,653 16,936 18,303 18,485 33,412 Total;Gross Increment - 5,459,805 5,113,949 4,906,863 4,888,513 4,795,809 • Low/Mod Housing Set Aside (1,091,961) (1,022,790) (981,373) (977,703) (959,162) . Tax Increment Less Low/Mod 4,367,844 4,091,160 3,925,491 3,910,811 3,836,647 . otalpass lhrpug T hg (1,702,484) (1,586,470) (1,513,453) (1,522,357) (1,475,838) . SB'-2S57Char ge ++ > �` / (70,875) (60,172) (61,961) (61,134) (60,000) , Net Tax Increment Agencyw(1) °' ` $ 2,594,485 $ 2,444,518 $ 2,350,077 $ 2,327,320 $ 2,300,809 , 4 Percentage represents change from prior year. , 5.97% 8.87% Ill$4,000,000 10.69% _ 5• .95% 11.53% , $2,000,000 ;; . ; $1,000,000 �4aa isat a. ..A■ 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 III I 41 (1)Net Tax Increment Agency does not include Debt Service payments. I Sources:City of Palm Desert,Tax Increment Calculations Worksheets I -160- II • • • City of Palm Desert • Historical Tax Increment Summary Redevelopment Project Area#3 • Last Ten Fiscal Years(2) • 3. FY 2001/2002 j'2000/Ol 1999/2000 1998/99 1997/98 a' • Secured/Unsecured . C„ $ 1,204,009 $ 1,028,201` $ 854,991 $ 677,494 $ :610,197 • Supp ,].mental PY i ` 1,764 37,064 6,959 • Supplemental CY -` a 130,497 47,444 14,199 0 • $Bfi(Uhhly), +` 723 742 908 538 553 • Tout Gnns'l>crimORt, i -, ,, 1,335,229 1,076,387 871,862 715,05.6 617,709 • Low/Mcd Housuig$etAside (263,165) (211,984) (171,507) (143,019) (123,542) • Tar Iniement LessLow/Mod z:' 1,072,064 864,403 700,355 572,077 494,167 • TomiPaks-Through, t y (183,986) (548,192) (519,921) (660,139) (642,855) SB 2557 Charges(1);' ' > (19,405) (16,469) (14,327) (12,181) (7,329) Mi • Net Tax lhcrement Agency(3) , + $ 866,673 $ 299,742 $ 166,107 $ (100,243) $ (156,017) • <,;gr , FY c.Q,19.96/97 1995/96 ,.:': 1994/95z° 1993l94 1992/93'`>':. • 84ured/Un4curad , ' + $ 520,342 $ 539,001 $ 441,421 $ 415,058 $ 357,095 • Supplemental iPT 31,702 8,546 21,864 5,559 14,284 • Supplemental-CY' ^,i 0 2,857 1,512 4,533 10,713 • $BE(Uh1Uy) >� ` 121 123 133 129 0 • Total Gross Increment ' 552,166 550,528 464,930 425,279 382,092 Low/ModHousingse Aaide , ,, (110,433) (110,106) (92,986) (85,056) (76,418)• Tex lncmmat Less`Low/Mod 441,732 440,422 371,944 340,223 305,674 • Tota1 Pess T6rovgh4 n: (77,212) (76,976) (64,997) (59,444) (53,092) • $B 2557 Charges,(1)g t, (10,789) (7,856) (7,525) (7,426) 0 • Nat Tax lncrenientAgency `,,, ;; $ 353,731 $ 355,591 $ 299,422 $ 273,353 $ 252,582 • Percentage represents change from prior year. • $1,000,000 -1189.81 80.45%• $800,000 ` ' • $600,000 , a ja2.• 265.70% $400,000 • • $200,000 4,#Y ? Tt+«Ty $mot: A: • $Of 4i' 'MJ3u 1 I 2001/2002 2000/01 1999/2000 1998/99 I 1997/98. • $(200,000) -35.75% • $(400,000) - -144.11% • • (1)Data for SB 2557 Charges is available from FY 1993/94. • (2)Project Area#3 first Fiscal Year is 1992/93. (3)Negative Tax Increment for FY 1997/98 and FY 1998/99 due to Regional Access Project pass through,prior year tax• increment used to cover deficit. • Sources:City of Palm Desert,Tax Increment Calculations Worksheets • -161- • • • City of Palm Desert • Historical Tax Increment Summary • Redevelopment Project Area#4 • Last Eight Fiscal Years(2) • • FY 20a1/2002 _ 2000/2001 1999/2000n; 1998f1999 199711998, • Secus 4/Unsecured, $ 6,205,401 $ 4,612,165 $ 3,293,418 $ 1,981,390 $ 1,427,671 • St ppiementsi PY , , , 0 0 449,268 455,457 80,639 • Supplemental CY _ 854,021 829,389 578,194 0 0 • SBE(U 1,930 1,979 2,117 1,044 1,073 • Total Gross,-Increment -:- t ` 7,061,353 5,443,533 4,322,997 2,437,892 1,509,383 • Low/ModHOusing Set Aside +` '- (1,392,274) (1,073,936) (853,567) (487,578) (301,877) • TeX LnerementLesstow/Mod 5,669,078 4,369,597 3,469,430 1,950,314 1,207,506 • TptatPaes-1p[ou0s (3,747,180) (3,640,563) (2,856,325) (1,312,022) (811,613) SB 2557 Charges(1) - (99,981) (73,853) (55,164) (35,617) (20,230) • Net Tax lnciement Agency t $ 1,821,917 $ 655,182 $ 557,941 $ 602,675 $ 375,663 • r • < FY 19961997„ 1995/1996 " 1994/ 95 Seoered/llliSeOu7ed + ? :1 S 1,102,951 $ 1,085,326 $ 798,951 • Supplemental PY , ° 49,662 139,262 128,353 • Supplemental CY c 0 10,592 17,783 SHE(Uhltly)" 0 0 0 • 1,152,613 1,235,180 945,087 • Total lrossIncretnent �_ L.ow/MOd Housing Set Aside, , !, (230,523) (247,036) (189,017) • Tax Lnaement Less Low/MO 922,090 988,144 756,069 • Total Pass-Throughs (619,829) (664,019) (508,067) • SB 2557,Cl*zges(1) i74,; ,7„^;) (21,723) (14,214) 0 is Net Tax Increment Agency $ 280,538 $ 309,911 $ 240,002 • Percentage represents change from prior year. I $2,000 000 178.08% I . . $1,500,000 - . $1,000,000 �� 111 + . 17.43% 60.43% -7 42% $500,000 s +x --i '' - 33.91% , 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 . 41 (1)Data for SB 2557 Charges is available from FY 1995/96. (2)Project Area#4 first year is FY 1994/95 . Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside , 1 -162- 41 • • City of Palm Desert • Historical Net Assessed Taxable Values • Redevelopment Project Area# 1 -Original Last Ten Fiscal Years • • PY 200112002 2000/2001. 1999/200e 1998/1999 1997/1998 • Secured:(1} ... . .. . Land $ 171,440,095 $ 167,254,618 $ 157,749,660 $ 158,233,158 $ 152,360,397• Improvements 389,716,686 381,168,647 342,048,525 335,487,546 331,532,883 • PerSonal.Property 3,824,393 4,621,105 3,958,876 4,284,839 3,805,452 Penalty 2,536 61,938 24,969 55,034 7,011 • Less Other Exempt 0 0 0 0 0 • Less Home Owner Value (70,000) (49,000) (56,000) (35,000) (28,000) Less B Inv.Value 0 0 0 0 0 • Total Net Assessed Taxable Snored Value 564,913,710 553,057,308 503,726,030 498,025,577 487,677,743 • Unsecured: • Laud " 229,626 191,925 211,902 225,314 50,747 Improvements 52,533,594 47,281,799 44,481,799 43,198,389 37,357,588 0 Personal Property 44,331,125 44,847,382 33,234,094 33.519,839 35,834,338 Penalty 1,592,700 2,089,768 735,012 748,851 766,233 • Less Other Exempt (58,570) (61,394) (38,283) (69,264) (58,072) • Total Net Assessed Taxable Unsecured Value 98,628,475 94,349,480 78,624,524 77,623,129 73,950,834 .w___. • Total Net Assessed Taxable Value S 663,542,185 S 647,406,788 S 582,350,554 S 575,648,706 S 561,628,577 I • EY. 1996/1997 199511996 1994/1995 1993/1994 1992/1993 • Secured:(I) .. . Land $ 162,089,396 $ 159,585,014 $ 154,143,319 $ 151,166,085 $ 147,647,584 O Improvements 310,347,856 306,158,845 285,966,096 290,601,738 269,074,710 O Personal Property 3,563,026 3,832,650 4,235,728 4,090,432 2,354,616 Penalty , - 22,855 45,785 35,300 17,907 24,748 • Less Other&4lnpt. . 0 0 0 0 0 LessHatneOwnerValue (28,000) (28,000) (28,000) (21,000) (49,000) • Less U Inv.Value o 0 0 0 0 • Total Net Assessed Taxable Secured Value 475,995,133 469,594,294 444,352,443 445,855,182 419,052,658 • Unsecured: • Lead 47,559 251,002 34,718 90,277 63,709 37,898,413 36,344,372 36,553,181 32,291,587 31,418,461 O Personal Properly 31,172,730 29,870,330 26,584,252 25,790,843 27,333,815 Penalty 585,341 902,426 884,808 563,123 539,637 • Less Other Envy (50,241) (69,094) (54,301) (60,179) (53,679) • Tutat Net Assessed Taxable Unsecured.Value 69,653,802 67,299,036 64,002,658 58,675,651 59,301,943 • Total Net Assessed Taxable Value $ 545,648,935 S 536,893,330 S 508,355,101 S 504,530,833 $ 478,354,601 I • • (I)Secured values include State assessed data. • • • Source:County of Riverside,County Auditor Controller,Assessed Valuations • • • • • • -163- • • • • • • • • • • • • • • This page intentionally left blank • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • City of Palm Desert • Change in Taxable Values • Redevelopment Project Area# 1 -Original 2001/2002 versus 2000/2001 • • FY 2001/2002 2000/2001 %Change • Secured:(1) • Land $ 171,440,095 $ 167,254,618 2.5% • Improvements $ 389,716,686 $ 381,168,647 2.2% • Personal Property $ 3,824,393 $ 4,621,105 -17.2% Penalty $ 2,536 $ 61,938 -95.9% • Less Home Owner Value $ (70,000) $ (49,000) 42.9% • Total Net Assessed Taxable Secured Value $ 564,913,710 $ 553,057,308 2.1% • Unsecured • Land $ 229,626 $ 191,925 19.6% • Improvements $ 52,533,594 $ 47,281,799 11.1% Persana1Property $ 44,331,125 $ 44,847,382 -1.2% • Penalty $ 1,592,700 $ 2,089,768 -23.8% • Less Other Exempt $ (58,570) $ (61,394) -4.6% • Total Net Assessed Taxable Unsecured Value $ 98,628,475 $ 94,349,480 4.5% • Total Net Assessed Taxable Value $ 663,542,185 $ 647,406,788 2.5% • • • (1)Secured values include State assessed data. • • • • • • • • • • • • • • • • Source: County of Riverside,County Auditor Controller,Assessed Valuations • • • • -164- • ' • City of Palm Desert • I Historical Net Assessed Taxable Values Redevelopment Project Area#I-Amended • Last Ten Fiscal Years • • FY 20111/2002 2000/2001 1999/1008 1998/1999 1997/1998 • Secured:(I) • Land $ 887,797,124 $ 746,195,135 $ 631,896,282 $ 607,328,618 $ 598,056,040 Improvements 1,742,745,364 1,493,036,846 1,292,074,218 1,230,571,559 1,194,367,177 • Personal Property 4,009,942 3,266,563 1,984,406 1,632,328 1,581,739 Penalty 31,999 159,145 37,717 54,377 26,687 0 Less Other Exempt (55,711,920) (47,407,077) (46,013,692) (44,781,911) (43,778.024) less Home Owner Value (28,025,997) (27,838,129) (27,464,787) (28,135,860) (28,427,000) • Less U Inv.Value 0 0 0 0 0 • Total Net Assessed Taxable Secured Value 2,550,846,512 2,167,412,483 1,852,514,144 1,766,669,111 1,721,826,619 tln seal red: • 1and. 143,855 52,422 46,483 169,654 778,001 • Inivt*Xem ents.. 26,976,720 27,217,181 20,563,813 15,262,873 14,561,036 Personal Pruyc ty 42,134,507 40,144,238 29,967,514 26,532,412 23,804,436 • Penalty 494,612 673,565 181,234 592,583 419,541 Less Other Exempt (9,613,037) (10,316,419) (6,335,363) (1377,178) (5,328,832) • Total let Assessed Taxable Unsecured.Value 60,136,657 57,770,987 44,423,681 41,180,344 34,234,182 • 9ota1Net Aaussed Taxable Value S 2,610,983,169 S 2,225,183,470 S 1,896,937,825 S 1,867,849,455 $ 1,756,060,801 • FY 1996/1997 1995/1996 1994/1995 1993/1994 1992/1993 • Secured:(111 Land , $ 593,084,678 $ 589,033,586 S 574,102,552 S 552,664,569 $ 504,871,343 • Improvements 1,169,643,780 1,174,332,339 1,179,951,841 1,148,577,515 1,104,424,055 _ 1'erboual Property ,. 1,533,185 1,495,546 2,493,171 1321,135 1,904,730 • Penehy 41,966 87,352 123,078 29,666 48,771 _ 1:Ces(ltfler P,aternpf (43,171,518) (42,783,930) (41,256,857) (32,429,986) (19,559,736) • less Home OWncr Value (28,142,400) (27,488,800) (27,018,600) (26,725,943) (25,180,759) Less E1r19.Value 0 0 0 0 • Total Net Assessed Taxable Secured Value 1,692,989,691 1,694,676,093 1,688,395,185 1,643,436,956 1,566,508,404 • laaaeeuredt Land 608,938 591,897 524,542 658,196 1,014,592 • lmpmvemems 14,135,932 10,207,099 10,020,119 8275,722 6,879,214 • Personal P,9yctty 20,336,143 16,513,405 14,503,619 13,860,587 12,762,309 Penalty 49,945 837,205 443,199 280,708 413,661 • Less Other Exempt (3,957,847) (4,890,796) (5,099,649) (1,959,747) (661,287) tetatNet Amsted Taxable Vase:arnd Value 31,173,111 23,258,810 20,391,830 21,115,466 20,408,489 • Total Net AssissedtaubleValue --- : S 1,724,162,8021 E 1,717934,903 S 1,708,787,015 $ 1,664,552,422 S 1,586,916,893 • • (I)Secured values include State assessed data. • • • • • • • • Source: County of Riverside,County Auditor Controller,Assessed Valuations • • • • -165- • • • • City of Palm Desert • Change in Taxable Value Redevelopment Project Area# 1 -Amended • 2001/2002 versus 2000/2001 • • FY 2001/2002 2000l2001 %Change • Seemed:(1) • Land - $ 887,797,124 $ 746,195,135 19.0% Improvements $ 1,742,745,364 $ 1,493,036,846 16.7% • Personal Property $ 4,009,942 $ 3,266,563 22.8% • Penalty $ 31,999 $ 159,145 -79.9% • Less Other Exempt $ (55,711,920) $ (47,407,077) 17.5% Less Monte Owner Value $ (28,025,997) $ (27,838,129) 0.7% • Total'Net Assessed Taxable.Secured Value $ 2,550,846,512 $ 2,167,412,483 17.7% • Unsecured: • Land $ 143,855 $ 52,422 174.4% • Improvements $ 26,976,720 $ 27,217,181 -0.9% Personal P, /peity $ 42,134,507 $ 40,144,238 ,5.0% • Penalty . ... $ 494,612 $ 673,565 -26.6% • Less Other Exempt $ (9,613,037) $ (10,316,419) -6.8% • Total Net Assessed Taxable Unsecured Value $ 60,136,657 $ 57,770,987 1 4.1%. • Total Net Assessed Taxable Value - - $ 2,610,983,169 $ 2,225,183,470 173% • ii • (I)Secured values include State assessed data. • • • • • • • • • • ` • • • • • Source: County of Riverside,County Auditor Controller,Assessed Valuations • • • • • • • -166- • City of Palm Desert • Historical Net Assessed Taxable Values Redevelopment Project Area#2 • Last Ten Fiscal Years • • F1' 2001/2002 2000/2001 1999/1000 1998/1999 1997/1998 • Secured:(I) Land $ 268,700,076 $ 254,353,602 $ 241,562,963 $ 221,877,005 $ 210,387,922 • Improvements. 675,455,198 615,751,576 557,262,592 502,284.327 469,021,627 • Personal.Properly 6,840,530 6,545,424 10,603,177 6,563,588 7,699,828 Penalty(2) 0 0 75.371 0 • test Other Exempt (2,767,781) (L213,512) (1.189,719) (1,168,077) (1,245,174) Less Rome Owner Value (2,639,000) (2,623,600) (2,522,800) (2,403,800) (2219.000) • tens B'Inv,Value 0 0 0 0 0 Total Net Assessed Taxable Secured Value 945,589,023 872,813,490 805,716,213 727,228,414 683,645,203 • Unsecuredt • Land 0 0 0 0 0 • Improvements 2,910,472 2,417,234 1,877,417 1,860,565 2,049,025 Personal Property 8,438,055 5,921587 3,984,295 4,363,617 4,126229 • PenaOp 115,676 46,458 77,730 57,857 34,546 Total Net Assessed Taxable Unsecured Value 11,464,203 8,385,279 5,939,442 6,282,039 6,209,800 • Total Net Assessed Taxable Value 5 957,053,226 5 881,198,769 5 811,655,655 5 733,510,453 $ 689,855,003 • • FY 1996/1997 199$/1996 1994/199S 1993/1994 1992/1993 • Secured:(1) • Land $ 197,557,269 $ 187,520,043 $ 190,140,907 S 181,239,499 $ 167,687,405 Improvements 433,210,966 401,961,850 359,407,935 391,627,879 361,507,528 • Personal Property 4,367,066 8,746,222 495,573 620,370 690,972 Penalty(2) 0 0 0 0 0 • I Ms Other Exempt (1,222,721) (1210,397) (100,000) 0 0 Less Home Owner Value (2,023,000) (1,883,000) (1,730,400) (1.538,600) (1,155,000) • l.sss 137nv-Value 0 0 0 0 0 • Total Net Assessed Taxable Secured Value 631,889,580 595,134,718 548,214,015 571,949,148 528,730,905 • Unsecured: Land 0 0 0 1,564 1,564 • improvements 1,890,431 1,753,774 4,121,570 4,102,702 3,360289 • PersonalPlop.aty 4,132,977 5,092,080 10,980,477 6,128,482 8,957,157 Penalty 14,500 0 0 4,083 7,206 • Total Net Assessed Taxable Unsecured Value 6,037,908 6,845,854 15,102,047 10,236,831 12,326,216 • .> _. Total Not Assessed'fallible Vahte $ 637,927,488 5 601,980,572 5 563,316,062 $ 582,185,979 5 541,057,121 • (I)Secured values include State assessed data. • • • Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside • • • • I • I • • -167- 0 • • • City of Palm Desert • Change in Taxable Value • Redevelopment Project Area#2 2001/2002 versus 2000/2001 . • • FY 2001/2002 2000/2001 %Change • Secured:(1) • Land $ 268,700,076 $ 254,353,602 5.6% • Improvements $ 675,455,198 $ 615,751,576 9.7% Personal Property $ 6,840,530 $ 6,545,424 4.5% • Penalty $ 0 $ 0 0.0% • Less Other Exempt $ (2,767,781) $ (1,213,512) 128.1% • . Less Home Owner Value $ (2,639,000) $ (2,623,600) 0.6% Less film.Value $ 0 $ 0 0.0% • Total Net Assessed Taxable Secured Value 945,589,023 872,813,490 8.3% • Unsecured:. • Land $ 0 $ 0 0.0% • Improvements $ 2,910,472 $ 2,417,234 20.4% • Personal Property $ 8,438,055 $ 5,921,587 42.5% • Penalty $ 115,676 $ 46,458 149.0% • Total Net Assessed Taxable Unsecured Value 11,464,203 8,385,279 36.7% • Total Net Assessed Taxable Value $ 957,053,226 $ 881,198,769 8.6% • • (1)Secured values include State assessed data. • • • • • • • • • • • • • • • • Source: County of Riverside,County Auditor Controller,Assessed Valuations • • • • -168- • City of Palm Desert • Historical Net Assessed Taxable Values Redevelopment Project Area#3 • Last Nine Fiscal Years(2) • FY: .2001/2002. 2000t2002 1999/2000 1998/1999 199711998 • Scented:-(1) ... • Land. S 70,984,182 S 67,042,691 S 62.879,457 S 62,465,266 S 62,899,697 . Improvements 167,824,429 149,512.375 142,889,361 143,323.854 143,172,549 Personal Property 1,221,819 1,739,556 4,247,032 4,474,127 3,388,041 • Penalty 255 40,255 0 2,295 2295 • _ less Other Exempt (2,868,530) (2,651,190) (2,429,452) (19,068,851) (18,623,087) Less Home Owner Value (1,687,000) (1,762.600) (1,789,200) (1,807,400) (1,743,000) . Total Net Assessed Taxable Secured Value 235,475,155 213,921,087 205,797,198 189,389,291 189,096,495 • Unsecured: land 29,325 29,992 31,781 29,656 29,703 • Improvements 11,021,570 11,069,151 8,832,767 8,843,353 5,998,073 Personal Property 21,453,363 24,808,691 18,345,262 18,062,689 13,493,827 • — Penalty 904,695 1,176,179 625,647 711,922 554,243 Less Other Exempt (646,953) (424,328) (399,507) (341,825) (372,400) • Total Net Assessed Taxable Unsecured Value 32,762,000 36,659,685 27,435,950 27,305,795 19,703,446 • Total Net Assessed Taxable Value S 268,237,155 S 250,580,772 S 233,233,148 S 216,695,086 S 208,799,941 • • ,.. FY 1996/1997 1995/1996 199411995 1993/1994 • Secured:(1). Land S 59.741,591 S 59,492,810 S 58,012,336 S 56,920,790 • Improvements 138,853,030 132,659,136 131,664525 127,377,999 • Personal Property 3,899,940 3,703,111 3,591,467 5,541,782 T Penalty 1,036 327,178 4,374 1,036 • Less Other Exempt (16,995,333) (15,980,806) (15,303,069) (14,467,499) Lessllome Owner Value (1,531,600) (1,370,600) (1,330,000) (1,195,600) • Total Net Assessed Taxable Secured Value 183,968,664 178,830,829 176,639,633 174,178,508 • tlnsecnred: . • land 30,941 4,307 4,407 10,350 improvements 4,335,089 11,413,789 3,757,625 3,283,133 • Personal Property 11,759,146 11,054,432 11,166,024 12,103,283 Penalty 186,362 988,033 302,996 311.757 • LaS$Other Exempt (254,318) (238,603) (434,768) (69,716) • TotatNet.AssesaedTaxabta Unsecured Value 16,057,220 23,221,958 14,796,284 15,638,807 Total Net Assessed I Taxable Value S 200,025,884 5 202,052,787 S 191,435,917 S 189,817,315 • • (I)Secured values include State assessed data. • (2)Fiscal Year 1993/94 was the first year information was available for the project area. • • • Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside • • • • • • • • • -169- 0 • • • City of Palm Desert • • Change in Taxable.Values • Redevelopment Project Area#3 2001/2002 versus 2000/2001 • • FY 2001/2002 2000/2001 %Change; • Secured:(1) . • Land $ 70,984,182 $ 67,042,691 5.9% • Improvements $ 167,824,429 $ 149,512,375 12.2% Personal Property- $ 1,221,819 $ 1,739,556 29.8% • Penalty $ 255 $ 4Q,255 -99.4% • Less Other Exempt $ (2,868,530) S (2,651,190) 8.2% • Less Rome Owner Value $ (1,687,000) $ (1,762,600) -4.3% • Total Net Assessed Taxable Secured Value 235,475,155 213,921,087 10.1% • 13nsetured; Land $ 29,325 $ 29,992 -2.2% • ImproVetnenta $ 11,021,570 $ 11,069,151 -0.4% • Personal Property _ $ 21,453,363 $ 24,808,691 -13.5% • Penalty $ 904,695 $ 1,176,179 -23.1% • Less Other Exempt $ (646,953) $ (424,328) 52.5% • Total Net Assessed Tazableliusecured Value 32,762,000 36,659,685 -10.6% • Total Net Assessed Taxable Value , $ 268,237,155 $ 250,580,772 7.0% • • (1)Secured values include State assessed data. • • • • • • • • • • • • • • • Source: County of Riverside,County Auditor Controller,Assessed Valuations • • • • -170- • • City of Palm Desert • Historical Net Assessed Taxable Values Redevelopment Project Area#4 • Last Eight Fiscal Years(3) • • FY 2001/2002 2000/2001 1999/2000 1998/1999 1997/1998 • Secured:(1) • Land. S 336,601,532 S 295,636,937 S 266,431,690 S 241,556,658 $ 239,474,265 Improvements 861,691,896 742,772,488 639,902,284 543,450,593 487,317,734 • Personal Property... 1,269,934 1,085,189 1,130,254 3,312,159 1,030,391 • Penalty(2) 91,675 32,666 52,911 52,911 LessOtherFatattpt (1,924,780) (1,240,153) (1,125,349) .(945,874) (1,106,989) Less Home OWner:Va)UC (14,604,800) (14,263,200) (13,610,800) (13,367,200) (12,854,800) • Less Et Inv.Value 0 0 0 0 0 • TetalNet:A:sesudTatahle Secured Value 1,183,125,457 1,024,023,927 892,728,079 774,059,247 713,913,512 Unsecured: • Land 0 0 0 0 41.582 • Improvements 1,878,576 2,018,343 1,874,135 624,979 923,449 Personal Property 8,053,034 8,071,994 8,292,670 1,673,026 2,152,303 • Penahy(21 70,495 31,283 28,376 28,741 73,710 Total Nei Assessed Taxable Unsecured Value 10,002,105 10,121,620 10,195,181 2,326,746 3,191,044 • Total Net Assessed Triable Value . S 1,193,127,562 S 1,034,145,547 S 902,923,260 S 776,385,993 a 717,104,556 • • EY 1996/1997 199511996 1994/1999 411 Secured:(1) • Land S 230,406,034 S 226,816,633 S 219,270,406 Improvements 464,373,174 463,671,956 440,950,749 • PerlronalProperty. ` 1,304,271 3,679,819 2,638,745 Penalty (2) 158,682 500 0 • Liss Other Exempt - (1,049,518) (967,616) (568,381) Less Home Owner Value (12,691,000) (12,1)55,000) (11,090,800) • Less 81nv.Value 0 0 0 Total Net Assessed TaxableSecured Value 682,501,643 680,846,292 651,200,719 • Unsecured: Laws _... 41,582 11,851 12,618 • 1n1Pm vernent,s 738,984 623,062 1,231,206 • PoSOnal Property 1,510,108 1,175,492 1,923,987 Penally(2) _. 4,000 20,806 0 • Total Net Assessed Tamable Unsecured.Vets* 2,294,674 1,831,211 3,167,811 • Total lietAssessed.Taxable Veins S 684,79Q317 I S 682,677,503 I S 654,368,530 (1)Secured values include State assessed data. • (2)Penalty data not available for FY 1994/95. • (3)Fiscal Year 1994/95 is the first available information for the project area. • • • • • • • • • • • • -171- 0 • • • City of Palm Desert • Change in Taxable Values Redevelopment Project Area#4 • 2001/2002 versus 2000/2001 • • EY 2001/2002 2000/2001 %Change • Secured:(1) • band - _ "., $ 336,601,532 $ 295,636,937 13.9% • Improvements $ 861,691,896 $ 742,772,488 16.0% Personal Property $ 1,269,934 $ 1,085,189 17.0% • Penalty $ 91,675 $ - 32,666 180.6% • less Other Exempt S (1,924,780) $ (1,240,153) 55.2% • Less Home Owner Value $ (14,604,800) $ (14,263,200) 2.4% Less E Inv.Value $ 0 $ 0 0.0% • Total Net Assessed Taxable Secured Value - 1,183,125,457 1,024,023,927 15.5% • Unsecured: • Land $ 0 $ 0 0.0% • Improvements $ 1,878,576 $ 2,018,343 -6.9% • Personal Property $ 8,053,034 $ 8,071,994 -0.2% • Penalty $ 70,495 $ 31,283 125.3% • Total Net Assessed Taxable Unsecured Value - 10,002,105 10,121,620 -1.2% • Total Net Assessed Taxable-Value S 1,193,127,562 $ 1,034,145,547 15.4% • • (1)Secured values include State assessed data. • • • ' • • • • • • • • • • • • • • Source: County of Riverside,County Auditor Controller,Assessed Valuations • • • 1 • -172- • • • • • • • • • • • • This page intentionally left blank • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ;r ' - `/k<- .,-,0 . Finance Department R� �£y MEMORANDUM c To: Rachelle Klassen, City Clerk From: Diana Leal, Administrative Secretary Subject: Investment and Finance Committee Date: January 28, 2003 Attached is a copy of ember 18, 200 minutes of the Investment and Finance Committee approved by the Committee on January 22,2003. Please place on the next City Council agenda for approval thereof. Thank you for your assistance. r Attachments(2) ; i ) IgfkQ L,QAut Zl/ • nG\A dt / sv ( D NCI At"ILO' L ! ,a. 94, , ,'-1 DENTED? p,_,k 7 , , a 13(-63 C.R \ES i2cal ,n- _Earl ,5QiE.6E.L. . - - o5o'& Ir,` No,:iE 'MR , in ) r„ (R b: hm y - G:\Finance\Diana Leal\Wpdocs\Investment Committee\2002 Memos\City Cler10I-22-03 minutes.wpd 1 CITY OF PALM DESERT - Ark �T1\. INVESTMENT & FINANCE COMMITTEE e. <%' ` Minutes w"Jr! LIP,0 December 18, 2002, 2:00 p.m. `%.eZ 4'04*' North Wing Conference Room I. CALL TO ORDER A regular meeting was called to order by Chairman Gibson on Wednesday, December 18, 2002 at 2:00 p.m. II. ROLL CALL Present: Absent: Paul Gibson, Director of Finance None. Jean Benson, Mayor Bob Spiegel, Mayor Pro-Temp Thomas Jeffrey, Deputy City Treasurer David Erwin, City Attorney Carlos Ortega, City Manager Everett Wood Bill Veazie Murray Magloff Russ Campbell Also Present: Justin McCarthy, ACM Redevelopment Dennis Coleman, Redevelopment Finance Manager Rodney Young, Desert Willow General Manager Diana Leal, Recording Secretary Guests: None III. ORAL COMMUNICATIONS None. IV. COMMITTEE MEMBER REPORTS None. 1 121802wp0 INVESTMENT & FINANCE COMMITTEE MINUTES December 18, 2002 V. CONSENT CALENDAR A. Approval of Minutes Motion was made by Mr. Campbell and seconded by Mr. Magloff to approve the Minutes of the November 20, 2002 meeting as submitted. VI. CONSENT ITEMS HELD OVER None. VII. NEW BUSINESS A. City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for November 2002 Mr. Jeffrey reported that for the month ended November 30, 2002, the book value of the City Portfolio was approximately $142.5 million. The City earned approximately $238,000 in interest. The portfolio yield-to-maturity was approximately 2%. For the month ended November 30, 2002, the book value of the RDA Portfolio was approximately $92.8 million. The RDA earned approximately $162,000 in interest. The portfolio yield-to-maturity was approximately 2.06%. Mr. Gibson said that market interest rates for 2001 were about 4% versus 2% for 2002. Mr. Jeffrey commented that the City is heavily invested in LAIF and money market funds because the pool yields are superior to those of individual securities. If the City purchased Wells Fargo commercial paper maturing in September 2003, for example, then the yield would be 1.29%. If the same money were invested in CAMP, then the yield would be 1.52%. If the same money were invested in LAIF, then the yield would be 2.3%. Discount Government Agency securities are not doing any better. B. State of California Local Agencv Investment Fund Balance for the Month of November 2002 Mr. Gibson said that the accounts remain maxed out for both the City and Redevelopment Agency. 2 mein wpd INVESTMENT & FINANCE COMMITTEE MINUTES December 18, 2002 C. California Asset Management Program (CAMP) November 2002 Mr. Gibson said that the account contains approximately $18 million. D. Comprehensive Annual Financial Report 6/30/02 Mr. Gibson said that the CAFR was presented as an informational item. He said that the new auditors will be present at the January 2003 meeting to answer any questions the Committee may have. Mr. Gibson said that the current auditors are experienced in auditing governmental agencies that audit other governmental agencies. The audit was therefore expedited as the auditors are knowledgeable in the process. Mr. Wood asked if staff would consider the current auditor for future audits. Mr. Gibson said that the current auditors have a five year contract. E. City and Redevelopment Agency Monthly Financial Reports for City Council for November 2002 Mr. Gibson said that the sales tax is slightly down from last year's year-to-date figures. In discussing this with the City's consultant, MRC, the state has depleted some gains with the cash flow to cities with sales tax. The information for the second quarter has not been received. This information is usually received as of December 24. With respect to the Transient Occupancy Tax (TOT), staff is hoping that Vacation Inn will sell so that the City can receive back taxes owed. Mr. Gibson said that revenues for licenses and permits are equivalent to last year. Mr. Spiegel asked if staff had spoken to the Marriott recently. Mr. Gibson said that he typically calls the Marriott about midyear, in January or so, to see where they stand. Mr. Spiegel suggested that Mr. Gibson have someone call the Marriott as he heard that their convention bookings are down dramatically for the Spring. There are two new resorts that have opened up in Phoenix, Arizona where the cost to stay is about the same as the Marriott. He believes that because it is less expensive to go to Arizona than to Palm Springs, the Marriott has lost some of their bookings. Mr. Wood asked if the sales tax is paid back to the City on the basis of an estimate or on an actual amount. Mr. Gibson said that they give the City an advance which is based on the prior year's history and take into account where the economy is headed and they provide an actual wrap up at the end of each quarter. 3 121802.wpd INVESTMENT & FINANCE COMMITTEE MINUTES December 18, 2002 • Mr. Wood said that there could potentially be a deficit. Mr. Gibson said that it is very possible in light of the fact that there are new stores that are opening in nearby cities which can have an impact on the City of Palm Desert. F. Parkview Professional Office Buildings - Financial Report for November 2002 Mr. Gibson said that as soon as the Mountain Conservancy signs their lease the Parkview Office complex will be at full occupancy. Attorney Hanover is considering having the Cancer Society take over the balance of their lease. Council awarded the re-roofing contract to Petronella Roofing. They will start the work in January. Carpeting and repainting is being done for the office of the Water Resources Board, a ten-year tenant. G. Palm Desert Golf Course Facilities Corporation Financial Information for October 2002 Mr. Young said that November was a slow month. Golf surpassed food and beverage and payroll was better than budget. Expenses were over due to the purchase of seed for the overseeding. The golf shop came in better than September and October, in both months the golf shop fell 60%, in November it fell only 58%. Sales made up 99% of budget. The reason the merchandise revenue was up in comparison to the prior year was that this year the Executive Women's Golf Association bought approximately $16,000 in merchandise. Gross profit is up $35,000 to date. Mr. Young said that the capital improvements that are being done at Desert Willow are coming along nicely. They will be placing the tiles in the bathrooms. They will be plastering the walls today, painting tomorrow and will be pouring concrete on Saturday. The parking lot light poles are in place and the fixtures should be arriving any day. They will be pouring 12 more concrete bases tomorrow. The lights near the clubhouse will be lit by 12/20/02. VIII. CONTINUED BUSINESS - None. IX. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks There being no business issues to report, discussion ensued to the next agenda item. 4 121602.wpd INVESTMENT & FINANCE COMMITTEE MINUTES December 18, 2002 I B. Bond Issuance by Palm Desert Financing Authority Mr. Coleman said that at the last council meeting, the City Council passed the findings and the bond documents on the bond issue for Project Area No. 2. Based on the current interest rates, they can do a bond issue of about $35 million. Staff is exploring possibilities and is thinking of perhaps doing something at a more conservative nature. This depends upon the State budget. Today the governor was to announce that the budget, in the next 18 months, will have a deficit somewhere in the neighborhood of$27 to $30 billion. They are waiting to see the State Budget's effect on the redevelopment agencies. They are looking at sizing the bond issue in a way that they can accomplish their projects and so that they can pay their administration and the amount of money the legislators' will take from the redevelopment agencies. Last month Mr. Coleman reported that the Redevelopment Agency will have to pay $1.2 million this year to the State for Education Revenue Augmentation Fund (ERAF)this will shift the property taxes from the Agency to the schools in order to reduce their bills accordingly. The total take from the Redevelopment Agency this year is $75 million. They don't know what the legislators will be requesting. In addition, they are concerned that the legislators will come after the City for money as well. On January 10, 2003, staff will find out what the governor's proposed budget will be. It will allow staff to work on their disclosure documents and the preliminary official statement. These documents can be included when the bond is sold. Maybe they can issue a bond as low as $24 million. Staff is discussing this possibility. They will wait until the City Manager, Finance Staff and Redevelopment can get it as close as possible to get some projects accomplished without the State's budget hurting the City or Agency. The Legislative Analyst has said, in a report, that asking for more money from the redevelopment agencies may not be legal. Mr. Wood asked if there would be a problem with the State paying back the money. Mr. Coleman said that there would be no pay back. MISCELLANEOUS Mr. Jeffrey said that staff is in the process of proposing a bill for the 2003 Legislative Session that will expressly authorize local agencies to buy asset- backed commercial paper ("ABCP"). Up until now, local agencies have interpreted the California Government Code as implicitedly authorizing the purchase of this paper. Consequently, local agencies have purchased over $1 billion worth of ABCP over the last few years. The City of Palm Desert has been working on developing its own ABCP program over the last few months. 5 121802.wpd INVESTMENT & FINANCE COMMITTEE MINUTES December 18, 2002 At the 2002 Annual LAIF Conference, staff learned that LAIF needed express authorization from the Legislature to buy ABCP. Consequently, the State Treasurer's Office has set the legal precedent in this regard. The City subsequently contacted several local agencies that had been purchasing ABCP, and they were not aware of this development. Staff is planning to propose a bill that uses LAIF's authorizing language on ABCP to authorize ABCP purchases by local agencies. Bill Sherwood, Director of Investments for LAIF, recently commented that ABCP is now the dominant form of commercial paper and will eventually replace unsecured commercial paper, which the City has traditionally bought. X. NEXT MEETING - Wednesday, January 22. 2003 at 2:00 p.m. XI. ADJOURNMENT There being no further business, the meeting was adjourned by Mr. Gibson at 2:30 p.m. Respectfully submitted, • D a a Leal r ng Secretary • 121802.wpd