HomeMy WebLinkAboutAudited Financial Reports - City of Palm Desert - FY Ending 06/30/05COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year Ended
JUNE 30, 2005
Prepared by the Finance Department
City Treasurer/Director of Finance
Paul S. Gibson
Assistant Finance Director
Jose Luis Espinoza, CPA
Finance Staff
(in alphabetical order by positions and names)
Accounting Technician II
James Bounds
Accounting Technician
Horacio Celaya
Accounting Technician
Sharon Christiansen
Accounting Technician II
Diana Leal
Accounting Technician II
Barbara Wright
Administrative Secretary
Niamh Ortega
Business License Technician
Rob Bishop
Deputy City Treasurer
Thomas Jeffrey
G.I.S. Technician
Robert Riches
Information Systems
Manager
Doug Van Gelder
Information Systems
Analyst
Clay Von Helf
Information Systems
Technician
Troy Kulas
Sr. Office Assistant
Benjamin Druyon
Senior Financial Analyst
Anthony Hernandez
Office Assistant
Suzanne Cicchini
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2005
TABLE OF CONTENTS
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting
CSMFO Certificate of Award for Outstanding Financial Reporting
List of Principal Officials
Organization Chart
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Exhibit A- Statement of Net Assets
Exhibit B- Statement of Activities
Fund Financial Statements:
Exhibit C- Balance Sheet - Governmental Funds
Exhibit D- Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
Exhibit E- Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds
Exhibit F- Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
Exhibit G- Statement of Net Assets - Proprietary Funds
Exhibit H- Statement of Revenues, Expenses and Changes in Fund
Net Assets - Proprietary Funds
Exhibit I- Statement of Cash Flows - Proprietary Funds
Exhibit J- Statement of Fiduciary Net Assets - Fiduciary Funds - Agency
Notes to Basic Financial Statements
Page
Number
i
v
xii
xiii
xiv
xv
1
3
13
14
18
21
22
24
25
26
27
28
29
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Schedule 1- Budgetary Comparison Schedule - General Fund
.�
Schedule 2- Budgetary Comparison Schedule - Prop A Fire Tax -
Special Revenue Fund 70
Note to Required Supplementary Information
SUPPLEM ENTARY SCHEDULES
71
General Fund:
Schedule 3- Budgetary Comparison Schedule by Department - General Fund 73
Other Governmental Funds - Combinina Statements:
Schedule 4- Combining Balance Sheet - Other Governmental Funds 77
Schedule 5- Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Governmental Funds 78
Other Governmental Funds - Nonmaior Special Revenue:
Schedule 6- Combining Balance Sheet - Nonmajor Special Revenue Funds 82
Schedule 7- Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Special Revenue Funds 88
Schedule 8- Budgetary Comparison Schedules - Special Revenue Funds:
A. Traffic Safety 93
B. Gas Tax 94
C. Housing Mitigation Fees 95
D. Community Development Block Grant 96
E. EI Paseo Assessment District 97
F. City-Wide Business License 98
G. Landscape and Lighting Districts No. 1-15 99
Other Governmental Funds - Nonmaior Capital Proiects:
Schedule 9- Combining Balance Sheet - Nonmajor Capital Projects Funds 102
Schedule 10 -Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Nonmajor Capital Projects Funds 106
Aaencv Funds:
Schedule 11 - Combining Balance Sheet - All Agency Funds
112
Schedule 12 - Combining Statement of Changes in Net Assets and
Liabilities - All Agency Funds 114
STATISTICAL SECTION
Revenue and Expenses Statistics
Governmental-Wide Expenses by Function
Government-Wide Revenues
118
119
�
Revenue and Expenditures Statistics
Historical Revenue and Expenditures Combined General, Special
Debt Service and Capital Project
Graphs - Historical Revenue and Expenditures Combined General,
Special, Debt Service and Capital Project
Historical General Revenue and Expenditures
Historical General Fund Actual Statement of Revenues
Graph - Historical General Fund Actual Statement of Revenues
Historical General Fund Actual Statement of Expenditures
Graph - Historical General Fund Actual Statement of Expenditures
Historical General Revenue and Expenditures Per Capita
Top 40 Sales Tax Generators Graph - Historical Sales Tax Trends
FY 2004-2005 and FY 2003-2004 Breakdown of Basic 1% Property Tax Rate
(Not in Redevelopment Project Area)
Graph - FY 2004-2005 Breakdawn of Basic 1% Property Tax Rate (Not in
Redevelopment Project Area)
Historical Net Assessed Taxable Values City-Wide
Change in Taxable Value City-Wide - FY 2004-2005 and FY 2003-2004
Assessed Value by Economic Category FY 2004-2005
Graph - Assessed Value by Economic Category FY 2004-2005
Property Tax Levy and Collections
Special Assessment Levy and Collections
FY 2004-2005 Top Ten Property Tax Payers
Historical Net Assessed Taxable Values City-Wide Graph - Assessed
Valuation Growth
Demographic Statistics
Building Permits and Taxable Transactions
Miscellaneous Statistics
Bonded Debt Statistics
Computation of Legal Debt Margin
Direct and Overlapping Bonded Debt
Revenue Bond Coverage
Ratio of Annual Debt Service Expenditures for General Bonded Debt
to Total General Governmental Expenditures
Ratio of Net General Obligation Debt to Assessed Value and Net General
Obligation Debt Per Capita
Special Assessment Information
Page
Number
121
123
124
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
146
147
148
149
150
151
�
Page
Number
Revenue Statistics Redevelopment Apencv
Redevelopment Agency Project Areas Map
RDA Project Area #1 and 1982 Annex FY 2004-2005 Top Twenty Property Taxpayers
RDA Project Area #2 FY 2004-2005 Top Twenty Property Taxpayers
RDA Project Area #3 FY 2004-2005 Top Twenty Property Taxpayers
RDA Project Area #4 FY 2004-2005 Top Twenty Property Taxpayers
Project Area Statistics
Tax Allocation Bond Issue Information
FY 2004-2005 Breakdown of Basic 1% Property Tax Levy Rates
Historical Tax Increment Summary Redevelopment Project Area #1 - Original
Historical Tax Increment Summary Redevelopment Project Area #1 - Amended
Historical Tax Increment Summary Redevelopment Project Area #2
Historical Tax Increment Summary Redevelopment Project Area #3
Historical Tax Increment Summary Redevelopment Project Area #4
Historical Net Assessed Taxable Values Redevelopment Project Area #1 - Original
Change in Taxable Value Redevelopment Project Area #1 - Original
Historical Net Assessed Taxable Values Redevelopment Project Area #1 - Amended
Change in Taxable Value Redevelopment Project Area #1 — Amended
Historical Net Assessed Taxable Values Redevelopment Project Area #2
Change in Taxable Value Redevelopment Project Area #2
Historical Net Assessed Taxable Values Redevelopment Project Area #3
Change in Taxable Values Redevelopment Project Area #3
Historical Net Assessed Taxable Values Redevelopment Project Area #4
Change in Taxable Values Redevelopment Project Area #4
154
155
156
157
158
159
160
161
162
163
164
165
166
168
169
170
171
172
173
174
175
176
177
iv
v
November 18, 2005
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, 2005, 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, 2005, the City 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.
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 18, 2005
vi
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. In October of 1998, the City Council approved to shift elections every two years in
November of even-numbered years, which was approved by the County of Riverside at its Board
of Supervisors meeting on November 24, 1998. Previously, elections were held every two years
in November of odd-numbered years in conjunction with the Unified School District elections.
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 18, 2005
vii
The 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, public enterprise and redevelopment 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 Internal Service
Housing and community development
Code enforcement and inspections Blended & Discretely Component
Economic development and business support Units
Legislative, city clerk and public information PD Redevelopment Agency
General administration and fiscal services PD Financing Authority
PD Housing Authority
PD Recreational Facilities Corp.
ECONOMIC OUTLOOK
Local Economy
The City encompasses an area of approximately 26 square miles. As of January 1, 2005,
according to data provided by the State Department of Finance, the City has a population of
49,280. 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
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 18, 2005
viii
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; and the Gardens, are
collection of 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 2.9% compared to Riverside County, which
had a rate of 5.2%. Our balanced foundation of tourism, culture and education has strengthened
the City’s labor force.
Outlook for the Future
In June 2005, the City Council approved a total of $41.043 million in funding for various capital
improvement projects for the fiscal year of 2005-2006. Projects include traffic signals, sidewalk
repairs and implementation, street widening, construction of landscaping medians where none
existed, improving drainage areas, continued design and constructions of two parks, and
completion of the development called Entrada El Paseo.
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, 2005, 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, 2005, 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,
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 18, 2005
ix
including the schedule of expenditures of federal awards, findings and recommendations and
auditor’s reports on the internal control structure and compliance with applicable laws and
regulations are included in a separately issued report. For the fiscal year ended June 30, 2005,
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 2004-2005 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.
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 18, 2005
x
Cash Management
Cash resources of the individual funds are combined to form a pool of cash and investments.
Cash which may be 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, California Local Agency Investment Fund, and in the
California Asset Management Program. The City and Agency’s portfolio at June 30, 2005 is
$235,351,309.
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 risk, 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 CJPIA 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
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 18, 2005
xi
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
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, 2004. This was the
eighth 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,
Carlos L. Ortega Paul S. Gibson
City Manager Director of Finance/City Treasurer
JLE:jle
Certif�cate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Palm Desert,
California
For its Comprehensive Annual
J Financial Report
far the Fiscal Year Ended
June 30, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Gocemment Finance Officers
Association of the United States and Canada to
governmenY unirs and public employee retirement
systems whose comprehensive annual financial
repods (CE1FRs) achie�ro the irighest
standards in govemment accounting
and fmancial reporting.
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Certificate of Award
Outstanding Financial Reporting 2D43-04
Presented to the
City of Palm Dese�t
This eertifrcate is iasued in recoRnition of ineeting projessionnl stundards and eriferia in reporting
which ref#ec! a higq Irve! of qua(ity in the annua! ftnantia! s!olemertta
qnd in the ��xderl}•ixg acrourcting s}•s[em from whick the repor(s x•ere prepared.
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xiii
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CITY OF PALM DESERT
List uf Principal Officials
as of June 30, �0{75
City Council - 4lanager Form of Government
CITY COUNCIL
BliFORD �1. CRITES
Mayor
JIh1 FERGtiSQN
Mayor Pro-Tempore
JEati �L BE:VSON
Council Member
RICH.�RD S. KELLY
Council Member
,
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ROBERT t1. SPIEUEL
Council Member
CARLOS L. ORTEG.�
City Manager
City r�ttarney - Best, Best & Krieger
,�ssistant Ciry ;�Ianager for Community Services/City Clerk
As�istant City 1lanager for Development Services
.�siistant Crtp .lIanager for Redevelopment �lgency/Housing
Director of FinancetCity Treasurer
david 1. Encin
Sheila S. Gilligan
Homer Croy
Tustin i4l�Carthy
Paul S. Gibsun
, � � r r • �„ �r1�:Le��i►[fl�l
Executive Director
C:1RLt)S L. ORTECi.�
X 1S'
Development Services (See Next Page)CITY OF PALM DESERTORGANIZATION CHARTCity AttorneyLitigation / Advise City Dept. on Legal MattersCorporate Secretary to :City CouncilRedevelopment Agency BoardHousing Authority BoardPrepare Agendas & MinutesLegal NoticesOrdinances & ResolutionsPublic Records, Contracts, DeedsLegislative Historic DocumentsProclamations & CertificatesSummons & SubponenasApplication & AppointmentsRecords MaintenanceLegislative TrackingLibrary OversightAdministrationLocal Filing OfficerConflicet of InterestCampaign StatementsFair Political Practices DutiesMunicipal ElectionsOaths of OfficeInitiative/Other PetitionsElectionsCity ClerkGeneral TrainingEmployee RelationsNew Employee OrientationBenefits & CompensationEmployee Assistance ProgramNew Hires(application/interview/testing)Perfomance AppraisalsDiscipline/GrievancesComplianance with State/Federal LawsCOBRAClass/Comp. SurveysWorkers Compensation ClaimsRetirementsHuman ResourcesSpecial EventsFranchise Contract OversightCity Special EventsSummer ConcertsPromote City TourismCommuinty CalendarPromotions & AdvertisingArt in Public PlacesVisitor Information CenterCommunity ServicesAssistant City ManagerSpecial EventsCadet/Explorer ProgramP.A.C.T. ProgramMotorcycle PatrolCanineNarcotics Task ForceSpecial InvestigationGang SuppressionForensic ServicesCrime PreventionHomicides & AssaultsDomestic ViolenceDispatch OperationsD.A.R.E ProgromAccident InvestigationTraffic PatrolPolice DepartmentFire PreventionFire MarshallBuilding Review & InspectionsParamedicsSearch & RescueVolunteer Fire FightersTrainingSpecial EventsChildren Safety ProgramsDispatchFire DepartmentPolice & FireDepartmentContracted with County SheriffContracted with County Fire/State C.D.F.Annual Financial StatementGeneral Ledget ReconciliationGrants Receivables and ControlRedevelopment Project AccountingCDBG and Housing AccountingGolf Course and Office Complex AccountingAccountingPurchasingAccounts PayablesProcess Police & Fire Purchase Orders/PaymentsProcess Vendor PaymentsAudit Payment ProcessCentralized SuppliesTelephone PaymentsCopier Repair/Maintenance/ PaymentsCity-wide Dues to OrganizationsGeneral ServicesCash ReceiptsAccounts ReceivablesTrust DepositsInvestmentsBanking ServicesBusiness License CollectionTrancient Occuppancy Tax CollectionBank Accounts ReconciliationTreasury & Cash ManagementAnalyze needs & Specify SystemsAssist with PC Hardware & SoftwareSupport Local Area Networks (LANs)Support & Run City Computer Business SystemSupport City Telephone SystemSupport Golf Course Computers/TelephoneSupport Library, Fire & Police Computers/SoftwareAdminister Internet Systems (Electronic mail, web site)Geographical Information System Mapping (G.I.S.)Information ServicesCity Payroll Preparation & DistributionCity Internal AuditsAnnual City & Agency Budget PreparationRevenue & Expenditure MonitoringFinancial ForecastingAdminister Outside Agency CommitteeAdminister Finance/Investment CommitteeManagement & SupportFinance Director/TreasurerFinancing of ProjectsRedevelopment ImplementationSpecific Five Year PlansAcquisition & DevelopmentConstruction ManagementPublic Parking LotsDevelopment AgreementsInfrastructure ImprovementsHousing DevelopmentRenovation of Apartment UnitsAdaptive Reuse for Existing StructuresBusiness Outreach/DevelopmentBusiness Attraction & RetentionIndustry/DemographicResearch & AnalysisBus. Loan Improvement ProgramEconomic DevelopmentRedevelopment AgencyRental AssistanceAcquistion & DevelopmentAffordable MonitoringNeighborhood Clean-upsSelf Help HousingRehab LoansRelocation AssistanceProperty ManagementMobile Home RentalsEmergency Shelter GrantsHousing AuthorityRedevelopment/Housing/EconomicAssistant City ManagerPlanning CounterEnvironmental ReviewDevelopment ReviewZoning ReviewPlanning Commission AdministrationArchitect Review Commission Admin.General & Specific Plan CoordinationFuture Use PlanningPlanning DivisionCreate ParksAdminister contractsNew Walking & BikeTrailsPark & Recreation CommitteeParks & RecreationCommunity DevelopmentPublic Safety CommiteeDiaster Prepareness CoordinatorCal-OSHA ComplianceSafety ProgramsLiability ClaimsCrossing Guards CoordinatorFacilities/Equip. InspectionRisk ManagementBuilding MaintenanceBuilding Permit CounterStructural Plan CheckDisabled AccessibilityState Building Code ComplianceConstruction InspectionsOccupancy InspectionsPlumbing & Mechancial Plan CheckElectrical Plan CheckDangerous & Abandoned BuildingsSubstandard HousingComplaint ResponseAnimal ControlCommercial Code EnforcementSign Code EnforcementAbandoned VehiclesNuisance AbatementRecreation Vehicle & illegal ParkingGolf Cart Inspection ProgramCounty Health Department IssuesBusiness License EnforcementCode EnforcementBuilding & SafetyPublic WorksDevelopment ServicesAssistant City ManagerCity ManagerRDA Executive Dir.Operations Overview/ Project OverviewPersonnel/Budget/Policy Development/Citizen & Business InquiriesCommittee and CommissionsPlanning Commission / Architect Review CommissionPublic Safety / Technology / Legislative / Rent Review / InvestmentGolf Course / Landscape / Park & Recreation / RDA Project Area / HousingMAYOR andCITY COUNCILRESIDENTS OF THECITY OF PALM DESERT
xviFUNCTIONAL ORGANIZATION CHART
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
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, 2005, 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 Gouernment 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 disc{osures in the financial statements. An audit also includes assessing the accounting princip{es
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, the discretely
presented component unit, each major fund and the aggregate remaining fund information of the City of
Palm Desert as of June 30, 2005, 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 Gouernment Auditing Standards, we have also issued our report dated September
9, 2005 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, grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Gouernment Auditing Standards and should be considered in assessing the results of our audit.
The managemenYs discussion and analysis and budgetary camparison information are not a required part
of the basic financial statements but are 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 ineasurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on it.
Lance
SOII 6
Lunghard
LLP
CERTIFlED PUBLIC ACCOUN7ANTS
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's 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.
� / � , � � � �I
� � , . .�
_ � ,
September 9, 2005
3
CITY OF PALM DESERT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Palm Desert’s financial performance for the fiscal year ended
June 30, 2005 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 $26.90 million, and the net assets of the
business-type activities increased by $0.85 million.
• During the year, the City had revenues that were $27.19 million more than the $103.29 million
expenses recorded by the City in its governmental activities. Compared to the prior year,
revenues were $7.26 million greater than its expenses.
• In the City’s business-type activities, expenses were $0.85 million less than the $8.09 million
generated in green fees, merchandise sales, rental income, capital contributions and other
revenues. Compared to the prior year, the business-type activities income was $0.13 million.
• The City’s governmental activities program revenues and general revenues increased $24.19
million, or 22.76 percent from the prior year, while program expenses increased $4.26 million.
• Business-type activities revenues increased by $0.73 million from $7.36 million to $8.09 million.
This was due to increased rounds played at Desert Willow Golf Course and one hundred percent
occupancy at Parkview Office Complex. Expenses increased by $0.01 million from the prior year.
• The revenues available for expenditure were $4.48 million more than budgeted for in the General
Fund. The City kept expenditures within spending limits by $5.86 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 13, 14 and 15) 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.
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 13. One of the most important questions asked about
the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?”
The Statement of Net 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.
4
These two statements report the City’s net assets and changes in them. 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 Parkview Office
Complex activities are reported in this category.
Component unit activities – The City includes one separate legal entity in its report – the Palm Desert
Recreation Facilities Corporation. Although legally separate, this “component unit” is important because
the City is financially accountable for it.
REPORTING THE CITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements:
The fund financial statements provide detailed information about the most significant funds and other
funds – not the City as a whole. Some funds are required to be established by State law and by bond
covenants. However, management established many other funds to help it control and manage money
for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants,
and other resources. The City’s two types of funds are governmental and proprietary.
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.
5
THE CITY AS A WHOLE
The City’s combined net assets increased $27.75 million from $386.34 million to $414.09 million. A
separate review of the net change in the governmental and business-type activities depicts two different
stories. Our analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City’s
governmental and business-type activities.
2005 2004 2005 2004 2005 2004
Current and restricted assets 275.55$ 272.52$ 3.76$ 2.47$ 279.31$ 274.99$
Capital assets 364.20 350.79 64.10 64.69 428.30 415.48
TOTAL ASSETS 639.75 623.31 67.86 67.16 707.61 690.47
Long-term liabilities
outstanding 254.04 264.43 0.51 0.83 254.55 265.26
Other liabilities 38.15 39.15 0.81 0.64 38.96 39.79
TOTAL LIABILITIES 292.19 303.58 1.32 1.47 293.51 305.05
Net assets:
Invested in capital
assets, net of
related debt 147.41 141.30 63.59 63.86 211.00 205.16
Restricted 103.70 100.27 - - 103.70 100.27
Unrestricted 96.44 79.08 2.95 1.83 99.39 80.91
TOTAL NET
ASSETS 347.55$ 320.65$ 66.54$ 65.69$ 414.09$ 386.34$
TABLE 1
NET ASSETS
As of June 30, 2005 and 2004
TotalActivities
Business TypeGovernmental
Activities
(IN MILLIONS)
6
Compared to the prior year, net assets of the City’s governmental activities increased by 8.39 percent, or
$26.90 million. The City’s Net Assets are made up of three components: Investment in Capital Assets,
Net of Related Debt, Restricted Net Assets and Unrestricted Net Assets. For governmental activities,
unrestricted net assets, which represent the part of net assets that can be used to finance day-to-day
operations, accounted for 27.75 percent of the overall total net assets. It increased $17.36 million from
$79.08 million to $96.44 million. This is an indication that the City’s Governmental Activities financial
position recognized growth from the prior year. The City as a whole now has $17.36 million additional
unrestricted funds that can be used to finance its operations.
The change in restricted net assets of $3.43 million was due to revenues in the City’s special revenue
funds exceeding their expenditures for the year. The majority coming from the Measure A fund.
The net assets of the business-type activities saw an increase of $0.85 million, from $65.69 million to
$66.54 million. During the previous year, the business-type activities recognized a $0.13 million increase.
Both Parkview and Desert Willow Golf Resort recognized a net change in their gross revenues with
minimal change in the overall expenditures; therefore, the net assets of the business-type activities
resulted in an increase.
The major change in the City’s governmental activities total assets was the increase in capital assets. The
increase was the result of the city’s acquisition of two vacant parcels, the purchase of a day-care center,
the completion of the Palma Village Park, start-up of Palm Village Apartments, continued work on Entrada
del Paseo, construction widening of Fred Waring Drive, and other street projects.
Total liabilities decreased by $11.54 million. The majority of the decrease is due to the payment of
principal on debt. In other liabilities, although there was a decrease of $2.87 million in amounts due for
pass-through agreements; increases in other liabilities resulted in an overall net decrease of $0.83 million.
0
100
200
300
400
500
600
700
800
Dollars in Millions
2005 2004 2005 2004 2005 2004
Governmental
Activities
Business-Type
Activities
Total
Table 1 - Graph
Net Assets
Total Assets
Total Liabilities
7
(IN MILLIONS)
2005 2004 2005 2004 2005 2004
REVENUES:
Program Revenues:
Charges for services 12.99$ 10.84$ 7.71$ 7.09$ 20.70$ 17.93$
Operating grants and
contributions 4.80 4.63 - - 4.80 4.63
Capital grants and
contributions 5.17 7.13 0.34 0.27 5.51 7.40
General Revenues:
Property taxes 5.02 4.32 - - 5.02 4.32
Tax increment 62.01 56.00 - - 62.01 56.00
Sales tax 15.85 15.14 - - 15.85 15.14
Transient occupancy tax 7.72 7.66 - - 7.72 7.66
Other taxes 6.32 4.44 - - 6.32 4.44
Other revenues 6.36 (6.85) 0.04 - 6.40 (6.85)
Investment earnings 4.24 2.98 - - 4.24 2.98
TOTAL REVENUES 130.48 106.29 8.09 7.36 138.57 113.65
EXPENSES:
General government 27.14 28.40 - - 27.14 28.40
Public safety 18.74 15.42 - - 18.74 15.42
Public works 10.43 13.05 - - 10.43 13.05
Parks, recreation and culture 4.04 3.98 - - 4.04 3.98
Payments to other agencies 30.19 24.05 - - 30.19 24.05
Interest on long-term debt 12.75 14.13 - - 12.75 14.13
Golf Course-Desert Willow - - 6.64 6.66 6.64 6.66
Office Complex-Parkview - - 0.60 0.57 0.60 0.57
TOTAL EXPENSES 103.29 99.03 7.24 7.23 110.53 106.26
INCREASE (DECREASE)
IN NET ASSETS 27.19 7.26 0.85 0.13 28.04 7.39
BEGINNING NET ASSETS 320.65 322.99 65.69 65.56 386.34 388.55
RESTATEMENT OF NET ASSETS (0.29) (9.60) - - (0.29) (9.60)
ENDING NET ASSETS 347.55$ 320.65$ 66.54$ 65.69$ 414.09$ 386.34$
TABLE 2
CHANGES IN NET ASSETS
As of June 30, 2005 and 2004
TotalActivities
Business-TypeGovernmental
Activities
Table 2 - Graph
Changes in Net Assets
0
100
200
300
400
500
2005 2004 2005 2004 2005 2004
Governmental Activities Business-Type Activities TotalDollars in MillionsBeginning Net Assets
Ending Net Assets
Total Revenues
Total Expenses
8
Governmental Activities
Total revenue increased from $106.29 million to $130.48 million, a 22.76 percent increase. The increase
is the result of an 11 percent increase in tax increment and a $13.21 million turnaround in other revenue,
of which $8.71 million was the result of the prior year’s offset to refund bonds, which ultimately resulted in
a recognized loss of $6.85 million. Contributors to the increase were tax increment, interest earnings, and
franchise tax. Factors that increased revenues are as follows:
• The increase in property value provided additional tax increment, and
• Economy remaining strong in the valley’s hotel and retail businesses.
Total expenses increased from $99.03 million to $103.29 million. The major factors were an increase in
the cost of public safety and the parks, recreation, and culture expenditures. The increase was due to an
increase in the contract with the Riverside County Sheriff for public safety, and the increased
maintenance costs of the city’s parks. Payments to other agencies increased due to the increase in tax
increment. The Redevelopment Agency has several agreements with other entities whereby the Agency
is required to pay those entities a portion of the tax increment. The following schedule represents the net
cost of providing services:
Governmental Activities
Net (Expense) Revenue
(In Millions)
2005 2004
General Government ($ 18.12) ($ 20.04)
Public Safety ( 14.66) ( 12.58)
Public Works ( 3.99) ( 4.99)
Parks, recreation and culture ( 0.63) ( 0.64)
Payment to other agencies ( 30.19) ( 24.05)
Interest on long-term debt ( 12.75) ( 14.12)
Total ($ 80.34) ($ 76.42)
Business-type Activities
Business-type activities revenues increased $0.73 million, a 9.90 percent increase. An increase in golf
rounds played and banquets at the clubhouse were the major factors in the increase for the business-type
activities revenues, along with CPI adjustments in the tenant’s rent at Parkview Office Complex.
Operating expenses for the business-type activities increased from $7.23 million to $7.25 million, an
increase of less than 1 percent. The increase was normal for the business entities and their respective
industries.
2005
Governmental Activities
Net (Expense) Revenue
23%
18%
5%1%37%
16%
2004
Governmental Activities
Net (Expense) Revenue
26%
16%7%1%32%
18%
General Government
Public Safety
Public Works
Parks, Recreation, and
Culture
Payment to other
Agencies
Interest on long-term
debt
9
THE CITY’S FUNDS
On page 18, the governmental funds balance sheet is shown. The combined fund balance of $228.27
million increased from $225.23 million, or 1.30 percent. This total includes the General Fund balance of
$63.30 million. It increased by $7.84 million from the prior year. The City’s General Fund balance has
reserved $26.51 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:
• The Prop A Fire Tax Fund, fund balance decreased due to the increase in the county’s contract
for fire service.
• The Redevelopment Agency Financing Authority Debt Service Fund, fund balance decreased due
to the principal payments on debt.
• The Redevelopment Agency Debt Service Funds, fund balance increased as a result of an
increase in tax increment. The development in project areas increased the tax increment the
Agency received.
• The Redevelopment Agency Capital Projects Funds, fund balance decrease was due to
increased capital expenditures.
• The Redevelopment Low Income Housing Fund, fund balance increased due to the transfer of
the required 20 percent of tax increment received by the Redevelopment Agency.
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 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 $44.72 million were $4.48 million more than the
final budgeted revenues of $40.24 million. The majority of the variance was in the taxes and
intergovernmental revenues categories. Both categories represented $3.10 million of the total variance.
Within the taxes category, property taxes accounted for $1.25 million of the increase. Reimbursements
represented $0.56 million of the increase in intergovernmental revenues, while motor vehicle in-lieu
represented $0.91 million of the increase. The increase in motor vehicle in-lieu was the payment made by
the State of California for funds that they withheld during their budget crisis.
The General Fund actual ending expenditures of $36.87 million were $5.86 million more than the final
budget of $42.73 million. There were significant changes in the original budget compared to the final
budget during the year. The original expenditure budget was $38.38 million compared to the final budget
of $42.73 million, a $4.35 million increase. The major change was the increase of $2.21 million for street
resurfacing. This was due to the re-appropriations of prior year encumbrances to the fiscal year ending
June 30, 2005.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2005, the City had $428.30 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) of $12.82
million, or 3.09 percent over last year.
10
2005 2004 2005 2004 2005 2004
Land 72.94$ 71.49$ 52.37$ 52.35$ 125.31$ 123.84$
Construction in progress 28.58 18.94 - - 28.58 18.94
Buildings and improvements 65.22 67.03 10.43 10.71 75.65 77.74
Equipment 2.05 1.83 1.30 1.63 3.35 3.46
Infrastructure 195.41 191.50 - - 195.41 191.50
TOTALS 364.20$ 350.79$ 64.10$ 64.69$ 428.30$ 415.48$
TABLE 3
CAPITAL ASSETS AT YEAR-END
For the years ended June 30, 2005 and 2004
TotalActivities
Business TypeGovernmental
Activities
(NET OF DEPRECIATION, IN MILLIONS)
0
50
100
150
200
250
300
350
400
450
Dollars in
Millions
2005 2004 2005 2004 2005 2004
Governmental
Activities
Business-
Type Activities
Total
Table 3 - Graph
Capital Assets at Year-End
(Net of Depreciation in Millions)
Land
Construction in
Progress
Buildings and
Improvements
Equipment
Infrastructure
TOTALS
11
This year’s major additions included (in millions):
Palma Village Park Construction $ 1.11
Purchase of land (2 parcels) 2.51
Fred Waring Widening 2.18
Warner Trail Strorm Drain 2.63
Purchase of Child Care Center .90
Entrada Del Peaso 3.22
$ 12.55
The City’s fiscal year 2006 capital budget calls for it to spend an additional $41.04 million plus the
continuing capital projects spending of $62.28 million from prior year. The majority being street
improvement accounting for over $25.00 million, $41.98 million in housing projects, and more than a $1
million in other capital projects. 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 $254.04 million in bonds, notes, contracts, and
compensated absences versus $264.43 million last year, a decrease of $10.39 million, or 3.93 percent
as shown in Table 4. The major contributor to the decrease was the elimination of the contracts payable
to the Coachella Valley Association of Governments (CVAG) for the city’s cost of the interchange at
Interstate 10 at Monterey, Cook and Washington.
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.
The City’s business-type activities debt decreased $0.32 million from $0.83 million to $0.51 million. Debt
in the business-type activities is for capital leasing of equipment. The City’s golf course used leasing as
an alternative to purchasing maintenance equipment to maintain a cash flow to operate the day-to-day
activities. The reduction in the City’s business type activities debt was directly related to the ageing of the
2005 2004 2005 2004 2005 2004
Compensated absences 1.84$ 1.71$ -$ -$ 1.84$ 1.71$
Special assessments debt with
governmental commitment - - - - - -
Notes payable 0.86 0.98 - - 0.86 0.98
Contract and leases payable - 4.82 0.51 0.83 0.51 5.65
Revenue bonds and notes
(backed by specific tax
and fee revenues) 251.34 256.92 - - 251.34 256.92
TOTALS 254.04$ 264.43$ 0.51$ 0.83$ 254.55$ 265.26$
TABLE 4
OUTSTANDING DEBT, AT YEAR-END
For the years ended June 30, 2005 and 2004
TotalActivities
Business TypeGovernmental
Activities
(IN MILLIONS)
12
current capital lease agreements. In a couple of years the City’s golf course will have to replace
the current equipment; such as the golf carts; mowers, and other golf course maintenance
equipment. If the City decides to lease, the debt should increase to approximately $1.50 million.
More detailed information about the City’s long-term liabilities is presented in Note 6 to the
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for 2006, management looked at the following economic factors:
• Energy and fuel cost: Although California appears to be past the energy crisis, the
repercussions of increased energy and fuel costs remain. The City of Palm Desert has
considered measures to reduce energy usage in the high peak period without impacting
the quantity and quality of service. The city is considering implementing procedures,
which should reduce energy usage by 30% throughout the City of Palm Desert. In
addition, the City of Palm Desert has a progressive ride-sharing program, which assists
the employees to share fuel costs by commuting together. The City’s 2006 budget
reflects the increase in energy and fuel.
• Sales tax bill: legislation was passed that reallocated sales tax revenue. The city now
receives an increase in the property taxes allocated to them in return for sales tax. The
City on biannual basis rather than a monthly basis is now receiving sales tax revenue.
This has a direct effect on the City cash flow and interest earning.
• 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.
Compared to prior year’s budget, the City’s general fund expenditures are projected to increase
by $4.26 million. Staff salaries and benefits increased due to the annual CPI increase of 4.0
percent, and an average increase of 3.08 percent in health care premiums. In addition, the City’s
contracts with the Riverside County Sheriff’s Department for police services and the contract with
the Fire Department for fire protection have 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 2006 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 2005-2006 financial plan can be obtained
by contacting the City’s finance department.
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.
Assets:
Cash and investments
Receivables:
Accounts
Notes
I nterest
Loans
Internal balances
Prepaid costs
Inventories
Unamortized debt issuance costs
Deposits
Due from other governments
Property held for resale
Due from component unit
Restricted assets:
Cash with fiscal agent
Capital assets not being depreciated
Capital assets, net of depreciation
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Interest payable
Unearned revenues
Deposits payable
Due to primary government
Amounts due under pass-through agreement
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted for:
Special projects
Capital projects
Debt service
Unrestricted
Total Net Assets
CITY OF PALM DESERT
STATEMENT OF NET ASSETS
JUNE 30, 2005
Primary Government
Governmental Business-Type
Activities Activities
$ 193,470,700 $ 3,866,490
2,984,193 118,527
3,000,000 -
2,052,687 -
13,075,166 -
654,390 (654,390)
108,979 86,223
35,878 192,195
5,047,746 -
572,306 -
8,331,865 -
574,933 -
468,000 149,460
45,163,683 -
211,030,150 52,369,367
153,179,687 11,729,004
639,750,363 67,856,876
9,856,361 429,731
459,139 235,245
3,355,393 -
75,669 116,440
379,599 28,179
24, 022, 594 -
6,557,707 343,999
247,486,797 165,756
292,193,259 1,319,350
147,410,323
49,656,747
46,591,923
7,452,899
96,445,212
$ 347,557,104
63,588,616
2,948,910
$ 66,537,526
Total
$ 197,337,190
3,102,720
3,000,000
2,052,687
13,075,166
195,202
228,073
5,047,746
572,306
8,331,865
574,933
617,460
45,163,683
263,399,517
164,908,691
707,607,239
10,286,092
694,384
3,355,393
192,109
407,778
24,022,594
6,901,706
247,652,553
293,512,609
210,998,939
49,656,747
46,591,923
7,452,899
99,394,122
$ 414,094,630
Exhibit A
Comqonent Unit
Palm Desert
Recreational
Facilities Corp.
$ 294,975
26,886
2, 737
26,296
350,894
64,433
41,101
35,600
617,460
�
758,594
(407,700)
$ (407,700)
See Notes to Financial Statements
13
CITY OF PALM DESERT
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2005
Functions/Programs
Primary Government:
Governmental Activities:
General government
Public safety
Parks, recreation and culture
Public works
Payments to other agencies
Interest on long-term debt
Total Governmental Activities
Business-Type Activities:
Desert Willow Golf Course
Office Complex - Parkview
Total Business-Type Activities
Total Primary Government
Component Units:
Palm Desert Recreational Facilities Corp.
Expenses
$ 27,144,038
18,743,083
4,043,034
10,428,219
30,183,408
12,749,188
103,290,970
6,636,889
609,298
7,246,187
$ 110,537,157
Program Revenues
Operating
Charges for Contributions
Services and Grants
$ 7,059,609
3,945,395
1,442,098
540,028
12,987,130
6,814,638
898,884
7,713,522
$ 20,700,652
$ 764,356
138,694
3,897,363
4,800,413
Capital
Contributions
and Grants
$ 1,203,139
1,970,042
1,993,675
5,166,856
338,478
- 338,478
$ 4,800,413 $ 5,505,334
$ 1,908,238 $ 1,902,398 $
General Revenues:
Taxes:
Property taxes, levied for general purpose
Tax increment
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu
Use of money and property
Gain (loss) on sale of assets
Miscellaneous
Total General Revenues
Change in Net Assets
Net Assets at Beginning of Year
Restatement of Net Assets
Net Assets at End of Year
- $ -
See Notes to Financial Statements
14
Exhibit B
Net (Expenses) Revenues and Changes in Net Assets
Primary Government Component Unit
Palm Desert
Governmental Business-Type Recreational
Activities Activities Total Facilities Corp.
$ (18,116,934)
(14,658,994)
(630,894)
(3,997,153)
(30,183,408)
(12,749,188)
(80,336,571)
(80,336,571)
$ -
516,227
289,586
805,813
805,813
$ (18,116,934)
(14,658,994)
(630,894)
(3,997,153)
(30,183,408)
(12,749,188)
(80,336,571)
516,227
289,586
805,813
(79,530,758)
$
(5,840)
5,023,250
62,013,998
7, 715, 624
15,850,290
2,439,134
3,883,838
4,240,360
17,459
6, 347, 396
107,531,349
27,194, 778
320,647,387
(285,061)
$ 347,557,104
43, 831
254
44,085
849,898
65,687,628
$ 66,537,526
5,023,250
62,013,998
7,715,624
15,850,290
2,439,134
3,883,838
4,284,191
17,713
6,347,396
107,575,434
28,044,676
386,335,015
(285,061)
$ 414,094,630
$
(5,840)
(401,860)
(407,700)
15
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16
FUND FINANCIAL STATEMENTS
17
Assets:
Pooled cash and investments
Receivables:
Accounts
Notes
Interest
Loans
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Inventories
Property held for resale
Due from component unit
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Advances from other funds
Deferred revenues
Amounts due under pass-through agreements
Deposits payable
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for inventory
Reserved for continuing appropriation
Reserved for prepaid costs and deposits
Reserved for property held for resale
Reserved for debt service
Reserved for receivables (notes and loans)
Reserved for advances to other funds
Unreserved:
Unreserved, reported in:
General fund
Special revenue funds
Capital projects funds
Debt service funds
Total Fund Balances
Total Liabilities and Fund Balances
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTALFUNDS
JUNE 30, 2005
General
$ 39,796,479
1,218,948
3,000,000
865,864
1,604,985
87,550
4,039,466
654,390
19,366,480
35,878
468,000
$ 71,138,040
$ 4,253,004
339,470
16,145
3,230,637
7,839,256
1,752,368
35,878
868,676
87,550
1,844,477
4,604,985
17,311,480
36,793,370
63,298,784
$ 71,138,040
Special Revenue
Funds
Prop A RDA
Fire Low Income
Tax Housing
$ 1,564,656 $ 20,938,839
- 50,199
- 13$,253
- 7,841,586
- 1,743
- 1,025
52,354 47$,740
- 574,933
- 4,405,$72
$ 1,617,010 $ 34,431,190
$ 449,732 $ 286,268
- 7,750
- 128,374
449,732 422,392
- 6,257,859
- 15,478,217
- 2,768
- 574,933
- 7,841,586
1,167,278 3,853,435
1,167,278 34,00$,798
$ 1,617,010 $ 34,431,190
See Notes to Financial Statements
18
Capital Projects
Fund
Redevelopment
Agency
Capital Projects
$ 6,762,896
989,424
3,526,883
19,207
571,281
32,843,482
$ 44,713,173
$ 2,482,137
18,156
2,500,293
2,571,222
20,108,794
590,488
3,526,883
15,415,493
42,212,880
$ 44,713,173
Exhibit C
Debt Service
Funds
RDA Redevelopment
Financing Agency
Authority Debt Service
$ - $ 63,476,480
- 821,068
4,532 -
1,674,987
$ 1,679,519
$
6,591
6,591
720,390
952,538
1,672,928
$ 1,679,519
$ 64,297,548
$ 11,842
32,785,480
24,022,594
56,819,916
7,477,632
7,477,632
$ 64,297,548
Other
Governmental
Funds
$ 57,648,276
893,97$
54,614
101,712
479
3,761,305
13,419,000
6,239,342
$ 82,118,7Q6
$ 2,366,7$7
93, 763
59,524
791,29$
379,599
3,690,971
3,519,907
21,736,634
479
13,419,000
20,970,45$
18,781,257
78,427,735
$ 82,118,706
Total
Governmental
Funds
$ 190,187,626
2,984,193
3,000,000
2,052,687
13,075,166
108,979
572,306
8,331,865
654,390
32,785,480
35,878
574,933
468,000
45,163,683
$ 299,995,186
$ 9,856,361
459,139
75,669
32,785,480
4,150,309
24,022,594
379,599
71,729,151
14,101,356
35,878
58,192,321
681,285
574,933
2,564,867
15,973,454
30,730,480
36,793,370
25,991,171
34,196, 750
8,430,170
228,266,035
$ 299,995,186
19
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20
CITY OF PALM DESERT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2005
Amounts reported for governmental activities in the statement of net assets are
different because:
Fund balances of governmental funds
When capital assets (land, buildings, equipment) that are to be used in
governmental activities are purchased or constructed, the cost 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
Prior period adjustment
Current year additions
Current year deletions
Current year depreciation
Transfer to internal service fund
Ending balance, net depreciation
Long-term debt and compensated absences have not been included
in the governmental fund activity:
Long-term debt
Bond Premium
Compensated absences
Interest on long-term debt is not accrued in governmental funds, but rather
is recognized as an expenditure when due.
Cost of issuing bonds is recognized as an expenditure in the period paid;
however, in the statement of net assets it is amortized over the life of the bond.
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,
receivabies) are offset by deferred revenues in the governmental funds and, thus, are
not included in fund balance:
Palm Desert Recreational Facilities Corporation - relates to the amount
of rent owed by component unit to City's General Fund.
Community Development Block Grant - relates to loans given to low
to moderate income families.
Capital reimbursement from developer for work completed
by the City on behalf of the developer.
Interest that was not paid at year-end.
Motor Vehicle true-up payment from the State.
Sales Tax true-up from the State.
Redevelopment Agency land purchase from City.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment, management and self-insurance to individual funds.
The assets and liabilities of the internal service funds must be added to the
statement of net assets.
Net assets of governmental activities
$ 349,859,725
(2,771)
22,409,057
(2,298,575)
(6,556,373)
(34,209)
Exhibit D
$ 228,266,035
363,376,854
(251,343,949)
(856,078)
(1,844,477)
(3,355,393)
5,047,746
468,000
101,712
689,586
265,593
173,276
397,142
2,055,000
4,150,309
4,116,057
$ 347,557,104
See Notes to Financial Statements
21
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2005
Revenues:
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Payments to other agencies
Public safety
Parks, recreation and culture
Public works
Capital outlay
Debt service:
Principal retirement
interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues Over
(Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of property
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Special Revenue
Funds
Prop A RDA
Fire Low Income
General Tax Housing
$ 32,464,343
1,631,094
5,604,654
1,442,098
1,486,830
158,011
800,695
43,587,725
$ 1,963,929
5,594
45, 753
2,015,276
$ -
12,725
553,392
827,382
1,393,499
11,460,389
14,433,485
2,889,789
6,375,888
266,717
35,426,268
8,161,457
1,130,231
(1,451,323)
(321,092)
7,840,365
55,458,419
$ 63,298,784
4,046,277
207,036
4,253,313
(2,238,037)
757,000
757,000
(1,481,037)
2,648,315
$ 1,167,278
1,724,327
2,984,518
4,708,845
(3,315,346)
12,549,470
(4,620,527)
526,000
8,454,943
5,139,597
28,869,201
$ 34,008,798
Capital Projects
Fund
Redevelopment
Agency
Capital Projects
$ -
884,424
115,420
999,844
4,932,297
10,512,216
15,444,513
(14,444,669)
11,198,851
(4,947,257)
6,251,594
(8,193,075)
50,405,955
$ 42,212,880
See Notes to Financial Statements
22
Exhibit E
Debt Service
Funds
RDA Redevelopment
Financing Agency
Authority Debt Service
$ - $ 62,013,998
133,950 1,039,133
454 515,347
134,404 63,568,478
117 41,461
- 30,183,408
5,515,000 122,707
12,404,672 1,132,547
17,919,789 31,480,123
(17,785,385) 32,088,355
$
17,827,739
(5,028,940)
12,798,799
(4,986,586)
6,659,514
1,672,928 $
Other
Governmental
Funds
i 5,578,472
227,848
425,460
5,459,383
4,418,190
16,158
1,511,504
165,764
973,527
18,776,306
7,953,534
87,974
930,903
8,438,570
4,150,716
21,561,697
(2,785,391)
Total
Governmental
Funds
$ 102,020,742
227,848
2,056,554
11,064,037
4,430,915
1,463,850
5,654,986
323,775
3,232,825
130,475,532
26,112,125
30,183,408
18,567,736
2,889,789
7,306,791
22,409,057
9,788,423
13,537,219
130,794,548
(319,016)
669 5,233,644 48,697,604
(31,452,274) (1,197,283) (48,697,604)
- 2,830,369 3,356,369
(31,451,605) 6,866,730 3,356,369
636,750 4,081,339 3,037,353
6,840,882 74,346,396 225,228,682
7,477,632 $ 78,427,735 $ 228,266,035
23
CITY OF PALM DESERT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2005
Amounts reported for governmental activities in the statement of activities differ from
the amounts reported in the statement of activities because:
Net change in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures; however, in the statement
of activities, the costs of those assets are allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period.
Repayment of debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets.
Costs 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.
Premium on bonds is recognized as interest in the period received; however,
in the statement of net assets it is amortized over the life of the bond.
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Net change in compensated absences for the current period.
Net change in accrued interest for the current period.
Collection of deferred revenues is 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
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:
Rental income due from Palm Desert Recreational Facilities Corporation.
Deferred amounts in-lieu of property taxes not received from developer.
Capital reimbursement revenue related to construction completed by
the City on behalf to the developer.
Interest on note issued by the City.
Motor vehicle true-up payment from the State.
Sales tax true-up from the State.
Internal service funds are used by management to charge the costs of certain
activities, such as equipment, management and self-insurance to individual funds.
The net revenues (expenses) of the internal service funds are reported with
governmental activities.
Change in net assets of governmental activities
Exhibit F
$ 3,037,353
13, 554,109
9,788,423
(204,142)
59,695
(135,459)
(200,069)
(15,099)
(204,000)
(80,000)
689, 586
265,593
173,276
397,142
68,370
$ 27,194,778
See Notes to Financial Statements
24
CITY OF PALM DESERT
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2005
Assets:
Current:
Cash and investments
Receivables:
Accounts
Prepaid costs
Inventories
Due from PDRFC
Total Current Assets
Noncurrent:
Capital assets - net of accumulated depreciation
Total Noncurrent Assets
Total Assets
Liabilities and Net Assets:
Liabilities:
Current:
Accounts payable
Accrued liabilities
Deposits payable
Unearned revenues
Due to other funds
Capital leases-current portion
Total Current Liabilities
Noncurrent:
Capital leases payable
Total Noncurrent Liabilities
Total Liabilities
Net Assets:
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
Total Liabilities and Net Assets
Business-Type Activities
Enterprise Funds
Major Non-Major
Fund Fund
Desert Willow Office Complex
Golf Course Parkview
3,377,542
3,377,542
$ 6,043,510
429,731
235,245
28,179
116,440
654,390
343,999
1,807,984
$ 1,239,855 $ 2,626,635 $ 3,866,490 $ 3,283,074
79,534 38,993 118,527 -
85,883 340 86,223 -
192,195 - 192,195 -
149,460 - 149,460 -
1,746,927 2,665,968 4,412,895 3,283,074
60,720,829
60,720,829
$ 62,467,756
$ 410,568 $
235,245
110,982
654, 390
343, 999
1,755,184
165, 756
165,756
1,920,940
60,211,074
335, 742
60,546,816
$ 62,467,756
Total
Enterprise
Funds
64,098,371
64,098,371
$ 68,511,266
19,163 $
28,179
5,458
52,800
52,800
3, 377, 542
2, 613,168
5,990,710
$ 6,043,510
165,756
165,756
1,973,740
Exhibit G
Governmental
Activities -
Internal
Service Fund
832,983
$32,983
$ 4,116,057
$ -
63,588,616 832,983
2,948,910 3,283,074
66,537,526 4,116,057
$ 68,511,266 $ 4,116,057
See Notes to Financial Statements
25
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2005
Operating Revenues:
Fees and rentals
Merchandise sales
Total Operating Revenues
Operating Expenses:
Maintenance and operations
Cost of inerchandise
General and administrative
Depreciation and amortization
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Interest revenue
Interest expense
Gain (loss) on disposal of capitaf assets
Total Nonoperating
Revenues(Expenses)
Income (Loss) Before Contributions
Capital Contributions
Changes in Net Assets
Net Assets:
Beginning of Fiscal Year
End of Fiscal Year
Exhibit H
Business-Type Activities
Enterprise Funds
Major Non-Major Governmental
Fund Fund Total Activities -
Desert Willow Office Complex Enterprise Internal
Golf Course Parkview Funds Service Funds
$ 6,002,191 $ 898,884 $ 6,901,Q75 $ 212,137
812,447 - 812,447 -
6,814,638 898,884 7,713,522 212,137
4,159,247
417, 004
1,152,985
856,825
6,586,061
228,577
(50,828)
254
(50,574)
178,003
338,478
516,481
60,030,335
$ 60,546,816
219,235
184, 016
206,047
609,298
289,586
43,831
45,831
333,417
333,417
5,657,293
$ 5,990,710
4,378,482
417,004
1,337,Q01
1,062,$72
7,195,359
518,163
43,831
(50,828)
254
(6,743)
511,420
338,478
849,898
65,687,628
$ 66,537,526
212,137
212,137
54,835
(20,674)
34,161
34,161
34,209
68,370
4,047,687
$ 4,116,057
See Notes to Financial Statements
26
CITY OF PALM DESERT Exhibit I
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2005
Business-Type Activities
Enterprise Funds
Major Non-Major Governmental
Fund Fund Total Activities -
Desert Willow Office Complex Enterprise Internal
Golf Course Parkview Funds Service Funds
Cash Flows From Operating Activities:
Receipts from customers $ 6,775,558 $ 904,517 $ 7,680,075 $ -
Payments to suppliers (5,591,265) (292,041) (5,883,306) -
Internal activity - payments to other funds (102,254) (112,350) (214,604) -
Receipts from interfund services - - - 212,137
Net Cash Provided (Used) by Operating Activities 1,082,039 500,126 1,582,165 212,137
Cash Flows From Capital and Related
Financing Activities:
Purchases of capital assets (1,886) (126,126) (128,012) (102,726)
Principal paid on leases (323,604) - (323,604) -
Interest paid on leases (47,762) - (47,762) -
Net Cash Provided (Used) by Capital and
Related Financing Activities (373,252) (126,126) (499,378) (102,726)
Cash Flows From Investing Activities:
Interest and dividends - 43,831 43,831 54,835
Extraordinary loss from disposal of asset 254 - 254 -
Net Cash Provided (Used) by Investing Activities 254 43,831 44,085 54,835
Net Increase (Decrease) in Cash and
Cash Equivalents 709,041 417,831 1,126,872 164,246
Cash and Cash Equivalents - Beginning of Year 530,814 2,208,804 2,739,618 3,118,828
Cash and Cash Equivalents - End of Year $ 1,239,855 $ 2,626,635 $ 3,866,490 $ 3,283,074
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:
Operating income (loss) $ 228,577 $ 289,586 518,163 $ -
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation and amortization expense 856,825 206,047 1,062,872 212,137
Changes in assets and liabilities:
Receivables, net (137,176) (3,622) (140,798) -
Prepaids and deposits (40,600) (340) (40,940) -
Inventory 8,901 - 8,901 -
Accounts, accrued liabilities and deposits
payables 169,670 4,377 174,047 -
Unearned revenue (4,158) 4,078 (80) -
Net Cash Provided (Used) by Operating Activities $ 1,082,039 $ 500,126 $ 1,582,165 $ 212,137
Noncash items included $338,478 and $34,209 (net value) of capital assets contributed by the City of Palm Desert to Desert Willow Golf
Course and the internal service fund, respectively.
See Notes to Financial Statements
27
CITY OF PALM DESERT
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS - AGENCY
JUNE 30, 2005
Assets:
Cash and investments
Receivables (net of allowance for uncollectibles):
Accounts
Interest
Restricted Assets:
Cash with fiscal agent
Total Assets
Liabilities:
Accounts payable
Deposits
Total Liabilities
Exhibit J
$ 8,745,329
25,343,308
23,673
8,740,045
$ 42,852,355
$ 11,021
42,841,334
$ 42,852,355
See Notes to Financial Statements
28
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2005
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 provides guidance for determining which
governmental activities, organizations and functions should be included in the reporting
entity. The Basic Financial Statements present information on the activities of the
reporting entity, which include the City of Palm Desert (the primary government) and its
component units, entities for which the government is considered financially accountable.
Accounting principles generally accepted in the United States of America require that the
component units be separated into blended or discretely presented units for reporting
purposes. The following criteria were used in determination of blended component units:
appointment of the governing board and fiscal dependence. Although legally separate
entities, blended component units are, in substance, part of the City's operations.
Therefore, they are reported as part of the primary government. Discretely presented
component units are reported in a separate column in the basic financial statements to
emphasize that they are legally separate from the City.
Blended Component Units
Following are descriptions of legally separate component units for which the City is
financially accountable that are blended with the Primary Government. The governing
bodies of these component units are substantially the same as the City.
The Palm Desert Redevelopment Agency (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.
29
City of Palm Desert
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
The Palm Desert Financing Authority (Financing Authority) was formed on January
26, 1989. The purpose of the Financing Authority is to issue debt and loan the
proceeds to the City and Agency. The Financing Authority's capital related
transactions are reported in the governmental fund financial statements in the capital
projects funds, and the collection of assessments and payments of debt service is
recorded in the fiduciary funds.
The 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 government-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 and indirect
expenses of a given function or segment are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include: 1) charges to customers or applicants who purchase, use
or directly benefit from goods, services or privileges provided by a given function or
segment, and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as
general revenues. Expenses reported for functional activities include allocated
indirect expenses.
Separate financial statements are provided for governmental funds, proprietary funds
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
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:
Total assets, liabilities, revenues or expenditures/expenses of that individual
governmental or enterprise fund are at least 10% of the corresponding total for all
funds of that category or type; and
b. Total assets, liabilities, revenues or expenditures/expenses of the individual
governmental fund or enterprise fund are at least 5% of the corresponding total
for all governmental and enterprise funds combined.
c. The government has determined that a fund is important to the financial
statement user.
The funds of the financial reporting entity are described below:
Governmental Fund Types
General Fund - The General Fund is the general operating fund of the City. It is used
to account for all financial resources except those required to be accounted for in
another fund.
Sqecial 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 Types
Enterprise Funds - The Enterprise Funds account for operations that are financed
and operated in a manner similar to private business enterprises, where the intent of
the City Council is that the costs (expenses including depreciation) of providing goods
and services to the general public on a continuing basis be financed or recovered
primarily through user charges. The Primary GovernmenYs Enterprise funds consist
of the Parkview Office Complex and the Desert Willow Golf Course, which are
operated by a management company. The Component UniYs 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)
Internal Service Funds - The Internal Service Fund accounts for financial transactions
related to replacement of City-owned vehicles and equipment. These services are
provided to other departments or agencies of the City on a cost reimbursement basis.
Fiduciary Fund Type
Apencv Funds - These funds are used to account for assets held by the City in a
custodial capacity as a trustee or as an agent. These assets include deposits placed
with the City by developers, individuals and groups to obtain future services, as well
as deposits from assessment district's property owners. These deposits are reduced
by payments and/or refunds to individuals or entities at some future time. The City's
Retiree Service Stipend Fund is used to account for assets held to pay for the retiree
service stipend. Agency funds are custodial in nature and do 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 to obtaining, furnishing, operating and maintaining fire protection
and prevention services (currently under contract with Riverside County Fire
Department) equipment or apparatus.
The RDA Low Income Housina Special Revenue Fund is used to account for the tax
increment set aside to be spent on projects that benefit low and moderate income
families.
The Redevelopment A4encv Caqital Proiects Fund is used to account for the fiscal
activities of the Palm Desert Redevelopment Agency.
The Redevelopment Aqency Financinq Authoritv 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 Aaencv Debt Service Fund is used to account for resources and
payments of debt issued by the 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 municipal 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.
32
City of Palm Desert
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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.
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.
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
that are susceptible to accrual include property taxes and special assessments that
are levied for and due for the fiscal year and collected within 60 days after year-end.
Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues
are recorded as governmental fund type revenues when received in cash because
they are not generally measurable until actually received. Revenue from taxpayer
assessed taxes, such as sales taxes, are recognized in the accounting period in
which they became both measurable and available to 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 ineasurable, except for unmatured interest on long-term debt, which is
recognized when due.
33
City of Palm Desert
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
Interfund activity in the amount of $2,274,145 has been eliminated from the general
government function for the government-wide financial statements except for charges
between the governmenYs Desert Willow Golf Course and Parkview Office Complex
funds and various other functions of the government. Elimination of these charges
would distort the direct costs and program revenues for the various functions
considered.
The accrual basis of accounting is followed by the proprietary fund and fiduciary
funds. Under the accrual basis of accounting, revenues are recognized when earned
and expenses are recorded when the liability is incurred or economic assets are
used.
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.
Private-sector standards of accounting and financial reporting issued prior to
December 1989 generally are followed in both the government-wide and proprietary
fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments
also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to this same limitation. The
government has elected not to follow subsequent private-sector guidance.
When both restricted and unrestricted resources are available for use, it is the
governmenYs 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.
In accordance with GASB Statement No. 34, the City has reported general infrastructure
assets acquired in prior and current years.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
34
City of Palm Desert
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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
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, which is the legal leve� of control.
For other funds, expenditures cannot exceed the total amount budgeted for each
fund, which is the legal level of control. The City Manager is authorized to transfer
appropriations (without council approval) between an object of a General Fund
Department 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 that are not budgeted as effectively budgetary
control is achieved through debt indenture provisions. The following special revenue
funds had legally adopted budgets during the current fiscal year:
Prop A Fire Tax
Traffic Safety
Gas Tax
Housing Mitigation Fees
Community Development Block Grant
EI Paseo Assessment District
City-Wide Business License
Landscape and Lighting Districts No. 1- 15
35
City of Palm Desert
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
f. Appropriations Limit
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative),
the City is restricted as to the amount of annual appropriations from the proceeds of
taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be
refunded to the State Controller or returned to the taxpayers through revised tax rates,
revised fee schedules or other refund arrangements. For the fiscal year ended June 30,
2005, 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 Investments
For purposes of the statement of cash flows, the City has defined cash and investments
to include cash on hand, demand deposits and investments held in the California Local
Agency Investment Fund (LAIF) and California Asset Management Program (CAMP).
i. Employee Compensated Absences
It is the governmenYs policy to permit employees to accumulate earned but unused
vacation and sick leave (compensated absences). Vacation pay and sick leave, which are
expected to be liquidated with expendable available resources, are reported as
expenditure and liability of the governmental fund that will pay it. Compensated absences
in the amount of $1,844,477, which are not expected to be liquidated with expendable
available financial resources, are reported in long-term debt.
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, 2005, the cost of the
property held for resale for various housing properties in Palm Desert totaled $574,933.
k. Inventories, Prepaid Costs and Deposits
Inventory in the amount of $192,195 and $26,296 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
$35,878 in the general fund is stated at cost. Inventory is recorded as an expenditure
when consumed rather than purchased.
Certain payments to vendors that reflect costs applicable to future accounting periods are
recorded as prepaid costs in the government-wide and fund financial statements.
The Agency has deposited $571,281 with Coachella Valley Water District for future sewer
connection charges at the Indian Springs Mobile Home Park, and $1,025 in escrow to
purchase various properties.
36
City of Palm Desert
Notes to Financial Statements (Continued)
Note 1: Summary of Significant Accounting Policies (Continued)
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 - 1 st 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 60 days after
the year-end. The City is a participant in the Teeter Plan under the California Revenue
and Taxation Code. The County of Riverside has responsibility for the collection of
delinquent taxes and the City receives 100% of the levy.
m. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their
repayment, are classified as restricted assets on the balance sheet because they are
maintained in separate trustee bank accounts and their use is limited to applicable bond
covenants. In addition, funds have been restricted for future capital improvements by City
resolution.
Note 2: Cash and Investments
As of June 30, 2005, cash and investments were reported in the accompanying financial
statements as follows:
Governmental activities
Business-type activities
Component unit
Fiduciary funds
Total Cash and Investments
$ 238,634,383
3,866,490
294,975
17,485,374
$ 260,281,222
The City of Palm Desert maintains a cash and investment pool that is available for use for all
funds. Each fund type's position in the pool is reported on the combined balance sheet as
cash and investments. The City has adopted an investment policy, which authorizes it to
invest in various investments.
Deposits
At June 30, 2005, the carrying amount of the City's deposits was $2,459,174 and the bank
balance was $5,335,766. The $2,876,592 difference represents outstanding checks and
other reconciling items.
37
City of Palm Desert
Notes to Financial Statements (Continued)
Note 2: Cash and Investments (Continued)
The California Government Code requires California banks and savings and loan
associations to secure an Entity's deposits by pledging government securities with a value
of 110% of an Entity's deposits. California law also allows financial institutions to secure
deposits by pledging first trust deed mortgage notes having a value of 150% of total
deposits. The City Treasurer may waive the collateral requirement for deposits that are
fully insured up to $100,000 by the FDIC. The collateral for deposits in federal and state
chartered banks is held in safekeeping by an authorized Agent of Depository recognized
by the State of California Department of Banking. The collateral for deposits with savings
and loan associations is generally held in safekeeping by the Federal Home Loan Bank in
San Francisco, California as an Agent of Depository. These securities are physically held
in an undivided pool for all California public agency depositors. Under Government Code
Section 53655, the placement of securities by a bank or savings and loan association with
an Agent of Depository has the effect of perfecting the security interest in the name of the
local governmental agency. Accordingly, all collateral held by California Agents of
Depository are considered to be held for, and in the name of, the local governmental
agency.
Investments
Under provision of the City's investment policy and in accordance with the California
Government Code, the following investments are authorized:
• United States Treasury bills, notes, bonds or certificates of indebtedness
• Federal Agency or United States government-sponsored enterprise obligations,
participations or other instruments
• Banker's Acceptances issued by commercial banks
• Commercial Paper issued by general corporations
• Negotiable Certificates of Deposits, issued by a nationally or state-chartered bank, a
savings association, a federal association or by a state-licensed branch of a foreign
bank
• Time Certificates of Deposit issued by qualified public depositories.
• Repurchase Agreements sold by authorized brokers
• Medium-Term Notes issued by corporations organized and operating in the United
States, or by depository institutions operating in the United States and licensed by the
United States or by any state
• Money Market Mutual Funds that are registered with the SEC under the Investment
Act of 1940
• State of California Local Agency Investment Fund (LAIF) that is managed by the State
Treasurer's Office
• Structured Notes in the form of callable securities or "STRIPS" issued by the United
States Treasury, Federal Agencies or government-sponsored enterprises
• Asset-Backed Commercial Paper issued by special purpose corporations, trusts or
limited liability companies
• Local Government Investment Pools
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No.
31 establishes fair value standards for investments in participating interest earning
investment contracts, external investment pools, equity securities, option contracts, stock
warrants and stock rights that have readily determinable fair values.
38
City of Palm Desert
Notes to Financial Statements (Continued)
Note 2: Cash and Investments (Continued)
Credit Risk
The City Treasurer is authorized under state and municipal law to invest in various types
of securities that meet specified credit quality standards, based upon credit risk ratings
assigned by Standard and Poors (S&P) or by Moody's Investor Services (Moody's).
Permissible City investments include medium-term notes that are rated "A" or higher at
time of purchase; commercial paper that is rated "A-1+" or the equivalent; money market
mutual funds that are rated "AAA"; and U.S. Government and Federal Agency securities
that are rated "AAA" (the quality of U.S. Treasury securities is not analyzed since they are
not deemed to have credit risk).
As of June 30, 2005, the City's investments included medium-term notes, commercial
paper and shares in a money market mutual fund, reflecting a variety of issuers. All
securities were "investment grade", and were legally acquired under state and municipal
law. The City's commercial paper holdings were rated "A-1+" or the equivalent; Federal
Agency holdings were rated "AAA"; and money market mutual fund holdings were rated
"AAA". The City's medium-term note holdings were rated "Aa3" or higher by Moody's,
except for notes issued by Ford Motor Credit Corporation that were rated "Baa2". As of
June 30, 2005, the City had $16,809,943 invested in Ford Motor Credit Corporation. As of
June 30, 2005, the City's holdings also included shares in two local government
investment pools: 1) the State of California Local Agency Investment Fund (LAIF), which
was unrated; and 2) the California Asset Management Fund (CAMP), which was rated
"AAA" by S&P.
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a
depository financial institution, a government will not be able to recover deposits or will not
be able to recover collateral securities that are in the possession of an outside party. The
custodial credit risk for the investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of
investment or collateral securities that are in the possession of an outside party.
As of June 30, 2005, none of the City's deposits or investments was exposed to custodial
credit risk.
Concentration of Credit Risk
The City's investment policy imposes restrictions on the percentage the City can invest in
certain types of investments, which the City is in compliance. As of June 30, 2005, in
accordance with GASB Statement No. 40, if the City has invested more than 5% of its total
investments in any one issuer then they are exposed to concentration of credit risk. The
following investments are considered to be exposed to concentration credit risk.
ISSUER
AMOUNT
Federal Home Loan Bank (FHLB) $14,419,319
Federal Home Loan Mortgage Corporation (FHLMC) 16,928,909
Federal National Mortgage Association (FNMA) 21,398,288
Ford Motor Credit Corporation (FMCC) 16,809,943
General Electric Capital Corporation (GECC) 20,850,702
Investments guaranteed by the U.S. government, investments in mutual funds and
external investment pools are excluded from this requirement.
39
City of Palm Desert
Notes to Financial Statements (Continued)
Note 2: Cash and Investments (Continued)
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates. The City's investment
policy states that the City shall not invest in securities with maturities exceeding five years
and the weighted-average maturity of the City portfolio shall not exceed 540 days. The City
has elected to use the segmented time distribution method of disclosure for its interest
rate risk.
As of June 30, 2005, the City had the following investments and maturities:
Money market mutual funds - held by
fiscal agent
California Local Agency Investment Fund -
held by fiscal agent
California Local Agency Investment Fund
California Asset Management Program
Federal Agencies
Commercial Paper
Medium-Term Corporate Notes
Note 3
Receivables
Investment Maturities (in Years)
Less 6 months - 1 year -
than 6 months 1 year 3 years
$ 33,330,044
14,688,567
85,568,323
24,752,842
14,530,562
12,985,537
_ $ _
7,974,497 33,166,457
9,449,943 21,375,276
$185,855,875
Primary Government's Governmental Funds
Notes and Loans Receivable
$17,424,440 $54,541,733
Fair
Value
$ 33,330,044
14,688,567
85,568,323
24,752,842
55,671,516
12,985,537
30,825,219
$257,822,048
The City has a note for $3,000,000 to Friends of the Desert Mountains for the sale of
land. Friends of the Desert Mountains agreed to repay the note within 36 months from
the date of issue, June 25, 2004, with interest accrued at 4.5% per annum.
The City purchased property for $2,100,000 for which Sunline Transit Agency entered
into a lease option agreement with the City to make monthly lease payments for the
exclusive use of, and the right to purchase, this property. The monthly payments
include a 6% per annum interest rate applied to the outstanding principal balance.
The time period for this lease is for a period of up to five years, unless terminated
sooner by purchase of the property or as otherwise provided in the lease agreement.
As of June 30, 2005, the outstanding balance on this loan is $1,604,985.
On April 21, 2003, the Agency entered into a loan agreement with The Regents of the
University of California, on behalf of its Riverside Campus, to loan various amounts
over a period of time, not to exceed an aggregate amount of $2,000,000. Proceeds of
the loan are to be used for capital improvements at the University's Riverside
Campus. The outstanding principal balance and interest on the note is due in five
annual payments beginning on a future date yet to be determined. As of June 30,
2005, the amount outstanding on the loan is $2,000,000.
40
City of Palm Desert
Notes to Financial Statements (Continued)
Note 3: Receivables (Continued)
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, 2005,
amounts due from the County and District were $0 and $1,526,883, respectively.
The Agency has loaned $105,763 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 City has $101,712 and the Agency has $76,386 in home improvement loans.
Payments of interest and principal are due monthly on these loans.
A loan receivable for the construction of a multi-family affordable housing
development dated June 14, 2001 with a balance of $7,659,437 is due from the Palm
Desert Development Company. The loan is secured by a Deed of Trust with
assignment to property, rent and fixtures on the housing development located in Palm
Desert. Interest is earned and due annually at a rate of 1% per annum from the date
on which the final certificate of occupancy is issued. Principal on the loan is based on
the applicable agency's percentage of positive net cash flow derived from the
operations of the Development.
The Agency has issued loans for several other projects, all of which are secured by a
deed of trust. A valuation allowance equal to the loan balance has been recognized
where there is a significant possibility that these loans either become uncollectible or
forgiven by the Agency at a future date if all the terms of the loans have been met.
41
City of Palm Desert
Notes to Financial Statements (Continued)
Note 3: Receivables (Continued)
Detailed information for these loans is as follows:
Loan
Balance Interest Maturity
Project Name Outstandinq Rate Date Secured By Special Provisions of Loan
Self-Help $ 429,000 7.25% 30 years Deed of Trust Loan balance and interest
Housing Program or 2024 due upon maturity, unpaid
balance of loan or interest
will bear an interest rate of
12%.
Home Improvement 70,000 N/A N/A Deed of Trust Loan is payable upon
Loans change or transfer of title,
refinancing or upon the
death of the borrower.
Portola Palms 249,208 3.00 30 years Deed of Trust Loan balance and interest
Mobilehome Park from date will be forgiven at maturity
of loan if debtor does not breach
the terms and conditions of
either the unit regulatory
aareement or note.
Desert Rose 2,051,403 3.00 30 years Deed of Trust Loan will be forgiven at
from date maturity unless the debtor
of loan is in violation of the unit
regulatory agreement or
the deed of trust.
Acquisition, 52,000 3.00 30 years Deed of Trust Loan balance and interest
Rehabilitation, from date Assignment of will be forgiven at maturity
Resale of loan Rent if debtor does not breach
the terms and conditions of
either the unit regulatory
agreement or note.
Note 4: Interfund Receivables, Payables and Transfers
The composition of interFund balances as of June 30, 2005 was as follows:
Due To/From Other Funds
Due to
Other Funds:
Desert W illow
Funds Golf Course Total
Due From Other Funds:
General $ 654,390 $ 654,390
The General Fund receivable amount is loaned to the Desert Willow Golf Course to
provide temporary funds for operations.
42
City of Palm Desert
Notes to Financial Statements (Continued)
Note 4: Interfund Receivables, Payables and Transfers (Continued)
Advances To/From Other Funds
Funds
Advances from Other Funds:
RDA Debt Service
Advances To Other Funds:
Other
General Govemmental
Fund Funds Total
$ 19,366,480 $ 13,419,000 $ 32,785,480
Total $ 19,366,480 $ 13,419,000 $ 32,785,480
The advances from the General Fund and Other Governmental Funds were made to the
Redevelopment Agency and Other Governmental Funds for capital improvements and
cash shortages.
Due To/From Primary Government and Component Unit
Funds
Due From Component Unit:
General Fund
Desert Willow Golf Course
Due to
Primary
Govemment
PDRFC
$ 468,000
149,460
Total $ 617,460
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 PDRFC for operations.
Interfund Transfers
RDA
Prop A Low
Fire Income
General Tax Housinp
Transfers In:
RDA RDA
Financing Capital
AuthoritV Projects
RDA Other
Debt Governmental
Services Funds Total
Transfers Out:
General $ - $ 757,000 $ - $ - $ - $ - $ 694,323 $ 1,451,323
RDA Low Income Housing - - - 4,234,431 386,096 - - 4,620,527
RDA Financing Authority - - - - 5,028,940 - - 5,028,940
RDA Debt Service - - 12,402,802 13,593,308 5,455,495 669 - 31,452,274
RDA Capital Projects 79,616 - - - 328,320 - 4,539,321 4,947,257
Other Governmental Funds 1,050,615 - 146,668 - - - - 1,197,283
$1,130,231 $ 757,000 $ 12,549,470 $ 17,827,739 $11,198,851 $ 669 $ 5,233,644 $ 48,697,604
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, and
5. transfer revenues to provide for additional resources to pay for expenditures.
43
City of Palm Desert
Notes to Financial Statements (Continued)
Note 5: Capital Assets
A summary of changes in Capital Assets at June 30, 2005 was as follows:
Primary Government
Adjusted
Balance at Balance at Balance at
July 1, 2004 Adjustments (') JuIV 1, 2004 Transfers Additions Deletions June 30, 2005
Governmental Activities:
Capital assets, not being depreciated:
Land $ 71,486,506 $ - $ 71,486,506 $ - $ 3,752,273 $ (2,298,506) $ 72,940,273
Right-of-Way 109,502,212 - 109,502,212 - - - 109,502,212
Construction-in-progress 18,935,088 (2,771) 18,932,317 (5,295,179) 14,950,527 - 28,587,665
Total Capital Assets Not
Being Depreciated 199,923,806 (2,771) 199,921,035 (5,295,179) 18,702,800 (2,298,506) 211,030,150
Capital assets, being depreciated:
Buildings 73,490,017 - 73,490,017 - 7,710 - 73,497,727
Improvements other
than buildings 25,794,535 - 25,794,535 137,535 1,117,392 - 27,049,462
Machinery and equipment 5,521,070 - 5,521,070 50,576 698,535 (83,452) 6,186,729
Infrastructure 124,748,695 - 124,748,695 5,072,859 1,882,620 - 13'1,704,174
Equipment - Intern0l Service Fund 2,447,168 - 2,447,168 34,209 102,727 (135,668) 2,448,436
Total Capital Assets
Being Depreciated 232,001,485 - 232,001,485 5,295,179 3,808,984 (219,120) 240,886,528
Less accumulated depreciation for:
Buildings (25,157,318) - (25,157,318) - (1,791,997) - (26,949,315)
Improvements other
than buildings (7,085,529) - (7,085,529) - (1,294,956) - (8,380,485)
Machinery and equipment (4,628,668) - (4,628,668) - (428,426) 83,383 (4,973,711)
Infrastructure (42,746,883) - (42,746,883) - (3,040,994) - (45,787,877)
Equipment - Internal Service Fund (1,518,309) - (1,518,309) - (212,137) 114,993 (1,615,453)
Total Accumulated
Depreciation (81,136,707) - (81,136,707) - (6,768,510) 198,376 (87,706,841)
Net Capital Assets
Being Depreciated 150,864,778 - 150,864,778 5,295,179 (2,959,526) (20,744) 153,179,687
Net Capital Assets
GovernmentalActivities $ 350,788,584 $ (2,771� $ 350,785,813 $ - $ 15,743,274 $ (2,319,250) $ 364,209,837
Business-Type Activities:
Governmental Activities:
Capital assets, not being depreciated
Land $ 52,349,436 $ - $ 52,349,436 $ - $ 19,931 $ - $ 52,369,367
Total Capital Assets Not
Being Deprecieted 52,349,436 - 52,349,436 - 19,931 - 52,369,367
Capital assets, being depreciated:
Buildings 12,706,422 - 12,706,422 - 148,478 - 12,854,900
Machinery and equipment 4,050,951 - 4,050,951 - 303,715 (42,747) 4,311,919
Total Capital Assets Being 16,757,373 - 16,757,373 - 452,193 (42,747) 17,166,819
Depreciated
Less accumulated depreciation for:
Buildings (1,994,668) - (1,994,668) - (432,170) - (2,426,838)
Machineryandequipment (2,421,358) - (2,421,358) - (630,702) 41,083 (3,010,977)
Total Accumulated
Depreciation (4,416,026) - (4,416,026) - (1,062,872) 41,083 (5,437,815)
Net Capital Assets Being
Depreciated 12,341,347 - 12,341,347 - (610,681) (1,664) 11,729,004
Net Capital Assets,
Business-TypeActivities $ 64,690,783 $ - $ 64,690,783 $ - $ (590,750) $ (1,6641 $ 64,098,371
44
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 $ 2,072,168
Public safety 184,235
Public works 3,137,837
Parks, recreation and culture 1,162,133
Depreciation expense for internal service funds is charged
to various functions based on usage of capital assets 212,137
Total Depreciation Expense -
Governmental Activities
Business-Type Activities:
Golf course - Desert Willow
Office complex - Parkview
Total Depreciation Expense -
Business-Type Activities
$ 6,768,510
$ 856,825
206,047
$ 1,062,872
Note 6: Long-Term Liabilities
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2005:
Primary Government
Balance at Balance at
July 1, 2004 Adjustments (*) Additions Reduction June 30, 2005
Governmental Activities:
Compensated absences payable $ 1,709,018 $ - $ 1,084,939 $ 949,480 $ 1,844,477
Tax allocation bonds 256,000,000 - - 5,515,000 250,485,000
Notes payable 981,656 - - 122,707 858,949
Contract payable 4,818,408 (667,692) - 4,150,716 -
$ 263,509,082 $ (667,692) $ 1,084,939 $ 10,737,903 $ 253,188,426
Add: Unamortized bond premium - 915,773 - 59,695 856,078
Total $ 254,044,504
Debt service payments for governmental activities are made from debt service funds:
Due Within
One Year
$ 950,000
5,485,000
122,707
$ 6,557,707
Business-Type Activities:
Capitalleases $ 833,359 $ - $ 2,719 $ 326,323 $ 509,755 $ 343,999
"The Coachella Valley Association of Governments gave the City of Palm Desert a credit
toward the costs owed for this bridge project of $667,692. The $915,773 represents bond
premiums that were not accounted for in the prior year.
45
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
of $1,844,477 for compensated absences earned at June 30, 2005. Compensated
absences are generally liquidated by the General Fund.
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) 1995 Series. 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 4.40% to 5.95% per annum payable semi-annually on
April 1 and October 1 with principal maturing annually. In June 2004, $22,195,000 of
these bonds were advance refunded. The remaining balance of $255,000, which was
not advance refunded, was currently repaid during fiscal 2004-2005. See Note 10 for
additional information.
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) 1995 Series. 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 4.40% to 5.95% 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,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026
Principal
$ 35,000
115,000
120,000
125,000
135,000
805,000
1,070,000
1,370,000
130,000
$
Interest
Total
Total
229,796
225,482
218,528
211,279
203,586
884,252
608,966
249,147
3,803
$ 264,796
340,482
338,528
336,279
338,586
1,689,252
1,678,966
1,619,147
133,803
$ 3,905,000 $ 2,834,839 $ 6,739,839
46
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,
2006
2007
2008
2009
Principal
$ 555,000 $
585,000
600,000
635,000
Total $ 2,375,000 $
1997 Series Tax Allocation Refunding Revenue Bonds
Interest
113,378
83,445
51,592
17,621
Total
$ 668,378
668,445
651,592
652,621
266,036 $ 2,641,036
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 of 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 4.100% to 5.625% with interest payable semi-
annually on April 1 and October 1 with principal maturing annually on April 1.
The future debt service requirements on the 1997 Series Tax Allocation Refunding
Revenue Bonds are as follows:
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
Total
Principal
$ 2,025,000
2,065,000
2,290,000
2,255,000
2,505,000
14,250,000
18,700,000
15,450,000
$ 59,540,000
I nterest
$ 3,205,898
3,110,724
3,011,604
2,899,394
2,786,644
11,886,848
7,580,164
1,855,124
$ 36,336,400
Total
$ 5,230,898
5,175,724
5,301,604
5,154,394
5,291,644
26,136,848
26,280,164
17,305,124
$ 95,876,400
47
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Liabilities (Continued)
1998 Series Tax Allocation (Housing Set-Aside) 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.Q% 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:
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2028
Principal
$ 590,000
615,000
655,000
685,000
1,390,000
8,095,000
10,400,000
13,395,000
9,845,000
Interest
Total
Total
$ 2,277,410
2,251,804
2,224,817
2,196,342
2,147,036
9,590,305
7,288,782
4,287,702
770,228
$ 2,867,410
2,866,804
2,879,817
2,881,342
3,537,036
17,685,305
17,688,782
17,682,702
10,615,228
$ 45,670,000 $ 33,034,426 $ 78,704,426
1998 Series Tax Allocation Revenue Bonds (Project Area No. 4)
On March 1, 1998, the Palm Desert Financing Authority issued $11,020,000 of Tax
Allocation Revenue Bonds (Project Area No. 4) 1998 Series. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency to finance certain
redevelopment activities of the Agency in Project Area No. 4. Interest rates on the
bonds vary from 4.0% to 5.2% per annum payable semi-annually on April 1 and
October 1 with principal maturing annually on October 1.
The future debt service requirements on the 1998 Series Tax Allocation Revenue
Bonds (Project Area No. 4) are as follows:
Year Ending
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2029
Total
Principal
Interest
Total
$ 230,000
250,000
260,000
265,000
290,000
1,630,000
2,070,000
2,680,000
2,695,000
$ 520,415
508,759
496,378
483,628
470,490
2,134,320
1,674,729
1,063,140
288,990
$ 750,415
758,759
756,378
748,628
760,490
3,764,320
3,744,729
3,743,140
2,983,990
$ 10,370,000 $ 7,640,849 $ 18,010,849
48
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Liabilities (Continued)
2001 Series Tax Allocation Revenue Bonds (Project Area No. 4)
In November 2001, the Palm Desert Financing Authority issued $15,695,000 of Tax
Allocation Revenue Bonds (Project Area No. 4) 2001 Series. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency to finance certain
redevelopment activities of the Agency in Project Area No. 4. Interest rates on the
bonds vary from 3.5% to 4.9% 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
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2030
2031-2032
Principal
$ 170,000
270,000
285,000
310,000
305,000
1,730,000
2,150,000
2,670,000
4,125,000
3,220,000
Interest
$ 690,825
682,994
673,013
662,313
651,250
3,066,671
2,648,851
2,091,529
1,357,320
156,480
Total
$ 860,825
952,994
958,013
972,313
956,250
4,796,671
4,798,851
4,761,529
5,482,320
3,376,480
Total $ 15,235,000 $ 12,681,246 $ 27,916,246
2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
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, which affected
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 $10,905,000 term bonds at 5.00% due April 1, 2025 and $11,165,000 term
bonds at 5.10% due April 1, 2030. Interest is payable semi-annually on April 1 and
October 1. Mandatory sinking fund redemptions begin April 1, 2024.
49
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Liabilities (Continued)
The future debt service requirements on the 2002 Series A Tax Allocation Refunding
Revenue Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2006
2007
200$
2009
2010
2011-2015
2016-2020
2021-2q25
2026-2q30
Total
$ - $ 1,114,666
- 1,114,666
- 1,114,666
- 1,114,666
- 1,114,666
- 5,573,330
- 5,573,330
10,905,000 5,334,330
11,165,000 1,764,856
$ 22,070,000 $ 23,819,176
$ 1,114,666
1,114,666
1,114,666
1,114,666
1,114,666
5,573,330
5,573,330
16,239,330
12,929,856
$ 45,889,176
2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 2)
In July 2002, the Palm Desert Financing Authority issued $17,310,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 2) 2002 Series A. The Palm Desert
Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment
Agency to prepay outstanding indebtedness and to finance certain redevelopment
activities within or of benefit to the project area. Interest rates on the bonds vary from
3.0% to 5.0% per annum payable semi-annually on February 1 and August 1. Principal
payments will be made annually beginning August 1, 2003.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding
Revenue Bonds (Project Area No. 2) are as follows:
Year Ending
June 30,
2006
2007
200$
2009
2010
2011-2015
2016-2020
2021-2023
Total
Principal
690,000
630, 000
650,000
675,000
695, 000
3,980,000
5,010,000
3,670,000
$ 16,000,000
Interest
$ 690,188
671,333
653,078
631,853
607,868
2,548,365
1,533,736
281,250
$ 7,617,671
Total
$ 1,380,188
1,301,333
1,303,078
1,306,853
1,302,868
6,528,365
6,543,736
3,951,250
2002 Series Tax Allocation (Housing Set-Aside) Revenue Bonds
$ 23,617,671
In August 2002, the Palm Desert Financing Authority issued $12,100,000 of Tax
Allocation (Housing Set-Aside) Revenue Bonds 2002 Series. The Palm Desert
Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment
Agency to finance certain low and moderate housing activities of the Agency and to
finance costs of issuance of the bonds. Interest rates on the $6,555,000 serial bonds
vary from 2.0% to 4.9% per annum payable semi-annually on March 1 and October 1.
Annual principal payments begin October 1, 2003. The $5,545,000 term bonds bear an
interest rate of 5.0% per annum and mature October 1, 2031.
50
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Liabilities (Continued)
The future debt service requirements on the 2002 Series Tax Allocation (Housing Set-
Aside) Revenue Bonds are as follows:
Year Ending
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2030
2031-2032
Principal
$ 245,000
250,000
255,000
265,000
275,000
1,535,000
1,890,000
2,390,000
3,065,000
1,455,000
Interest
Total
Total
$ 521,025
515,143
508,448
500,572
491,454
2,288,543
1,934,347
1,436,797
762,125
73,625
$ 766,025
765,143
763,44$
765,572
766,454
3,823,543
3,824,347
3,826,797
3,827,125
1,528,625
$ 11,625,000 $ 9,032,079 $ 20,657,079
2003 Series Tax Allocation Revenue Bonds (Project Area No. 2)
In March 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax
Allocation Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert
Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment
Agency to finance certain redevelopment activities of the Agency in Project Area No. 2.
Interest rates on the bonds vary from 4.5% to 5.0% per annum payable semi-annually
on February 1 and August 1 with principal maturing as follows:
$ 875,000 Serial Bonds
910,000 Serial Bonds
2,485,000 Term Bonds
11,475,000 Term Bonds
August 1, 2023
August1,2024
August1,2026
August 1, 2033
The future debt service requirements on the 2003 Series Tax Allocation Revenue
Bonds (Project Area No. 2) are as follows:
Year Ending
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2030
2031-2034
Total
Principal Interest
$ -
1,785,000
6,915,000
7,045,000
$ 15,745,000
$ 769,006
769,006
769, 006
769,006
769,006
3,845,030
3,845,030
3,765,493
2,663,191
726,625
$ 18,690,399
Total
$ 769,006
769,006
769,006
769,006
769,006
3,845,030
3,845,030
5,550,493
9,578,191
7,771,625
$ 34,435,399
51
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Liabilities (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 1)
In July 2003, the Financing Authority issued $19,000,000 Tax Allocation Revenue
Bonds (Project Area No. 1, as amended) 2003 Series. The proceeds of the bonds were
disbursed to make a loan to the Redevelopment Agency. The Agency will use the
proceeds of the loan to finance certain redevelopment activities of the Agency and to
finance costs of issuance of the bonds. The bonds bear interest at 5.0%. They consist
of $7,050,000 serial bonds with principal payments due in 2026 and 2027 and
$11,950,000 term bonds due in 2030. Interest will be payable on April 1 and October 1
of each year beginning April 1, 2004. Principal payments will be on April 1 of the years
stated above.
The future debt service requirements on the 2003 Series Tax Allocation Revenue
Bonds (Project Area No. 1) are as follows:
Year Ending
June 30, Principal Interest Total
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2030
Total
$ - $ 950,000
- 950,000
- 950,000
- 950,000
- 950,000
- 4,750,000
- 4,750,000
- 4,750,000
19,000,000 2,942,500
$ 19,000,000 $ 21,942,500
$ 950,000
950,000
950,000
950,000
950,000
4,750,000
4,750,000
4,750,000
21,942,500
$ 40,942,500
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3)
In July 2003, the Financing Authority issued $4,745,000 of Tax Allocation Revenue
Bonds (Project Area No. 3) 2003 Series. The proceeds of the bonds were disbursed to
make a loan to the Redevelopment Agency. The Agency will use the proceeds of the
loan to finance redevelopment activities within or of benefit to the project area and to
finance costs of issuance of the bonds. The bonds bear interest at rates ranging from
3.000°/o to 5.125%. Principal maturities for the serial bonds of $2,475,000 began April 1,
2004 and continue through October 1, 2031. The term bonds in the amount of
$2,270,000 are due in 2033.
52
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Liabilities (Continued)
The future debt service requirements on the 2003 Series Tax Allocation Revenue
Bonds (Project Area No. 3) are as follows:
Year Ending
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2030
2031-2033
Principal
$ 90,000
95,000
95,000
100,000
100,000
570,000
690, 000
860,000
1,100, 000
800,000
Interest
$ 204,298
201,598
198,748
195,898
193,048
909,562
787,135
618,410
379,250
83,281
Total
$ 294,298
296,598
293, 748
295,898
293,048
1,479,562
1,477,135
1,478,410
1,479,250
883,281
Total $ 4,500,000 $ 3,771,228 $ 8,271,228
2004 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as
amended)
In June 2004, the Palm Desert Financing Authority issued $24,945,000 of Tax
Allocation Refunding Revenue Bonds (Project Area No. 1, as amended) 2004 Series
A. The proceeds from the bonds were loaned to the Palm Desert Redevelopment
Agency to refinance a portion of the Agency's obligations from 1995 and to finance
certain redevelopment activities within or of benefit to the project area. Interest rates
on the bonds vary from 3.0% to 5.0% per annum payable semi-annually on April 1
and October 1. Principal payments will be made annually beginning April 1, 2005.
The future debt service requirements on the 2004 Series A Tax Allocation Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
Total
Principal
$ 855,000
940,000
850,000
1,030,000
945,000
5,780,000
7,015,000
7,035,000
$ 24,450,000
Interest
$ 1,123,063
1,097,413
1,059,813
1,025,813
974,313
4,137,813
2,763,825
1,043,200
$ 13,225,253
Total
$ 1,978,063
2,037,413
1,909,813
2,055,813
1,919,313
9,917,813
9,778,825
8,078,200
$ 37,675,253
53
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
July 1, 2004 Additions Reduction
1995 Series Tax Allocation
Revenue Bonds (Project Area
No. 1 - Original Issue $24,025,000)
1995 Series Tax Allocation
Revenue Bonds (Project Area
No. 2 - Original Issue $4,090,000)
1995 Series A Tax Allocation
Revenue Refunding Bonds
(Original Issue $6,305,000)
1997 Series Tax Allocation
Refunding Revenue Bonds
(Original Issue $71,955,000)
1998 Series Tax Allocation
(Housing Set-Aside) Revenue
Bonds - (Original Issue $48,760,000)
1998 Series Tax Allocation
Revenue Bonds (Project Area
No. 4 - Original Issue $11,020,000)
2001 Series Tax Allocation
Revenue Bonds (Project Area No. 4)
2002 Series A Tax Allocation
Refunding Revenue Bonds
(Project Area No. 1, as amended)
2002 Series A Tax Allocation
Refunding Revenue Bonds
(Project Area No. 2)
2002 Series Tax Allocation
(Housing Set-Aside) Revenue Bonds
2003 Series Tax Allocation
Revenue Bonds (Project Area No. 2)
2003 Series Tax Allocation
Revenue Bonds (Project Area No. 1)
2003 Series Tax Allocation
Revenue Bonds (Project Area No. 3)
2004 Series A Tax Allocation
Refunding Revenue Bonds
ProjectArea No. 1, as amended)
Tota I
$ 255,000 $
3,940,000
2,900,000
61,800,000
46,235,000
10,595,000
15,395,000
22,070,000
16,665,000
11,865,000
15,745,000
19,000,000
4,590,000
24,945,000
$ 256,000,000 $
Balance at
June 30, 2005
- $ 255,000 $ -
- 35,000 3,905,000
- 525,000 2,375,000
- 2,260,000 59,540,000
- 565,000 45,670,000
- 225,000 10,370,000
- 160,000 15,235,000
- - 22,070,000
- 665,000 16,000,000
- 240,000 11,625,000
- - 15,745,000
- - 19,000,000
- 90,000 4,500,000
- 495,000 24,450,000
- $ 5,515,000 $ 250,485,000
c. Notes Payable
County of Riverside
The Agency entered into a cooperation agreement with the County of Riverside on
December 15, 1987 regarding the adoption of the Agency's Project Area No. 2. The
agreement states that the Agency was to retain 50°/a of the County's share of tax
increment. This was based on the County's share of tax increment being what would
be allocated to the County in the absence of a redevelopment project area being
adopted.
54
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Liabilities (Continued)
This agreement called for the Agency to retain 50% of the County's share until the
gross increment reached $3,500,000. The agreement further states that when gross
increment reaches $10,000,000, the Agency wou�d repay the 50% of the retained
County's share of increment in equal payments over a 10-year period.
The gross increment reached the $3,500,000 limit in fiscal year 1991-1992. The
Agency reached the $10,000,000 limit in fiscal year 2002-2003. The total amount
owed to the County at June 30, 2005 was $858,949. Annual payments on the note
are $122,707.
Future debt service payments are as follows:
Year Ending
June 30,
2006 $
2007
2008
2009
2010
2011-2012
Principal
122, 707
122,707
122,707
122,707
122,707
245,414
Interest Total
$ - $ 122,707
- 122,707
- 122,707
- 122,707
- 122,707
- 245,414
Total
d. Contract Payable
$ 858,949 $ - $ 858,949
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
Washington. During fiscal year 2004-2005, CVAG credited the City with $667,692 of this
amount and the City repaid the remaining balance of $4,150,716, resulting in a zero
balance as of June 30, 2005.
55
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Liabilities (Continued)
Business-Type Activities
Obligations under capital leases are as follows:
Pure Planet Water, Inc.
The present value of the minimum lease payment on water
purification equipment was capitalized at $2,802 using an
interest rate of 4.94%. Lease is payable in 60 monthly
installments of $53 beginning May 15, 2005.
Textron Corporation (leases executed by the City of Palm Desert)
The present value of the minimum lease payment on the new
golf carts was capitalized at $331,101 using an increment
borrowing interest rate of 5.50% at the inception of the lease.
The lease is payable in 48 monthly installments of $5,336,
which began December 15, 2002. The remaining principal will
be paid in one lump sum at the end of the lease payments.
The present value of the minimum lease payment on
specialized golf carts was capitalized at $39,304 using an
increment borrowing interest rate of 4.302% at the inception of
the lease. The lease is payable in 36 monthly installments of
$985, which began April 15, 2003. The remaining principal will
be paid in one lump sum as the last monthly installment.
General Electric Capital Corporation (leases executed by the City
of Palm Desert)
The present value of the minimum lease payment on the
grounds equipment was capitalized at $1,036,863 using an
increment borrowing interest rate of 4.4288°/o at the inception of
the lease. Lease payments of $46,814 are paid during the last
six months of each fiscal year for four years, beginning January
1, 2003.
The present value of the minimum lease payment on a
compactor was capitalized at $9,504 using an increment
borrowing interest rate of 16.71 % at the inception of the lease.
The lease is payable in 60 monthly installments of $235, which
began March 15, 2003.
Present value of net minimum lease payments
Less: current portion
2,719
212,958
16,335
271,566
6,177
509,755
(343,999)
$ 165,756
�
City of Palm Desert
Notes to Financial Statements (Continued)
Note 6:
Long-Term Liabilities (Continued)
The following is a schedule by year, of future minimum lease payments and present value
of the net minimum lease payments for capital leases as of June 30, 2005:
Minimum
Lease
Payments
365,139
167,993
2,746
633
528
537,039
Less: Amounts Present Value of
Representing Net Minimum
Interest Lease Payments
Year Ending
June 30,
2006 $
2007
2008
2009
2010
Total $
$
The assets acquired through capital lease are as follows:
Assets:
Machinery and equipment
Less: accumulated depreciation
Total
Note 7:
Note 8:
Deferred Compensation Plan
21,140
5,883
208
41
12
$
343,999
162,110
2,538
592
516
27,284 $ 509,755
$ 1,419,574
(818,914)
$ 600,660
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 $6,953,795 held by NRS and ICMA of the 457 Plan are no longer
reflected in the City's financial statements.
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, 2005,
the Agency was holding $24,022,594 in trust on behalf of other taxing agencies related to
specific pass-through agreements.
57
City of Palm Desert
Notes to Financial Statements (Continued)
Note 9
Note 10
Note 11
Bond Reserve Requirements
At June 30, 2005, the fund balance reserve requirements and actual reserve balances are
presented as follows:
Assessment District 98-1
1995 Financing Authority Revenue Bonds
1997 Financing Authority Revenue Bonds
2003 Financing Authority Revenue Bonds
2001 Tax Allocation Revenue Bonds
1995 Refunding Tax Allocation Bonds
Defeased Obligations
Requirement
$ 225,609
471,500
2,013,089
334,111
482,890
237,500
Actual
$ 238,901
485,442
2,074,419
339,939
910,991
761,299
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, 2005, there were no outstanding amounts of the defeased obligations.
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 2004-
2005 was 13.86% 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.
58
City of Palm Desert
Notes to Financial Statements (Continued)
Note 11:
Pension Plan (Continued)
c. Annual Pension Cost
For 2005, the City's annual pension cost of $2,020,934 for PERS was equal to the City's
required and actual contributions. The required contribution was determined as part of the
June 30, 2001 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 14.20% 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 3.50%. 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, 2005 was 11 years.
d. Three-Year Trend Information for PERS
Fiscal
Year
6/30/2003
6/30/2004
6/30/2005
Note 12:
Annual Pension Percentage Net Pension
Cost (APC) APC Contributed Obligation
$1,242,350 100%
1,581,184 100%
2,020,934 100%
e. Schedule of Funding Progress for PERS
Accrued
Liability Actuarial Unfunded
Actuarial (AAL) Entry Value of AAL Excess
Valuation Age Assets Assets Funded
Date (A) (B) (A-B) Ratio B/A
6/30/2002 $ 29,889,114 $ 28,035,483 $ 1,853,631
6/30/2003 34,734,559 29,531,889 5,202,670
6/30/20q4 39,172,557 32,540,472 6,632,085
Fund Equity
a. Reserves of Fund Balance
93.8%
85.0%
83.1 %
$ -
UAAL as
a % of
Covered Covered
Payroll Payroll
(C) j(A-B)/Cl
$ 8,193,500 22.6%
8,919,100 58.3%
9,237,548 71.8%
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, 2005 were as follows:
59
City of Palm Desert
Notes to Financial Statements (Continued)
Note 12: Fund Equity (Continued)
Loans and notes receivable
Property held for resale
Advances(1)
Prepaid costs and deposits
Encumbrances
Continuing appropriations
Debt service
Inventory
Total
General
Fund
$ 4,604,985
17,311,480
87,550
1,752,368
868,676
1,844,477
35,878
RDA
Low
Income
Housing
$ 7,841,586
574,933
2,768
6,257,859
15,478,217
RDA
Financing
Authority Debt
Fund
$
720,390
RDA
Capital
Projects
Fund
$ 3,526,883
590,488
2,571,222
20,108,794
Other
Governmental
Funds
$ -
13,419,000
479
3,519,907
21,736,634
Totals
$ 15,973,454
574,933
30,730,480
681,285
14,101,356
58,192,321
2,564,867
35,878
$ 26,505,414 $ 30,155,363 $ 720,390 $ 26,797,387 $ 38,676,020 $ 122,854,574
�'� 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 Propertv 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
Redevelopment Agency so that they will not be considered as current funds available.
Reserved for Prepaid Costs and Deqosits - These reserves represent contractual
obligations for cash payments made before June 30, 2005, but not recognized as an
expenditure until after July 1, 2006 and noncurrent portions of deposits.
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, 2005.
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 is
rebudgeted on July 1 by Council action.
Reserved for Continuina Appropriations - These reserves are for appropriations for capital
projects, which are unexpended as of June 30, 2005 and are carried forward as
continuing appropriations to be expended in 2005-2006.
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.
.�
City of Palm Desert
Notes to Financial Statements (Continued)
Note 12:
Fund Equity (Continued)
b. Net Asset Restatements
Net assets have been restated as follows:
Capital asset adjustments (see Note 5)
Long-term liabilities adjustment (see Note 6)
Capital asset transfers to Internal Service Fund
Bond premium not reported in prior year
Total Net Asset Restatements
Note 13
Risk Management
$ (2,771)
667,692
(34,209)
(915,773)
$ (285,061)
The City maintains self-insurance programs for workers' compensation, general public liability
and auto liability. Claims are processed by an outside insurance service that 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, 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
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 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
$10 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, 2005, total estimated workers'
compensation and general liability claims payable, including a provision for incurred but
not reported claims, were $116,485 and $543,421, respectively.
61
City of Palm Desert
Notes to Financial Statements (Continued)
Note 13: Risk Management (Continued)
Changes in claims liabilities during the past two years are as follows:
June 30, 2004
Claims payable - Beginning of Year
Incurred c{aims (including IBNR)
and changes in estimate
Claims payments
Claims payable - End of Year
$ 1,441,680
270,918
(669,217)
$ 1,043,381
June 30, 2005
$ 1,043,381
37,398
(420,873)
$ 659,906
Settled claims from General Liability and Workers' Compensation risks have not
exceeded commercial insurance coverage for the past three years.
Note 14: Deferred Revenues and Unearned Revenues
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 (2.85% at June 30, 2005). 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). Payment is due
when the Corporation's revenues exceed its expenses. At June 30, 2005, the
Corporation owed the City rent totaling $468,000, which will be recognized as
revenue by the City when the rent is paid by the Corporation.
On June 25, 2004, a promissory note for $3,000,000 was issued from the City to
the Friends of the Desert Mountains. Any unpaid principal accrues interest at a
rate of 4.5% per annum. The entire balance of principal and accrued interest is
due June 24, 2007. As of June 30, 2005, $137,219 in interest has been accrued.
Recognition of the interest revenue has been deferred until it becomes due.
The State of California collects taxes and fees for the City and makes payments
to the City at various times. Due to the City's policy of recognizing revenue, the
amounts of $397,142 and $173,276 for sales tax and vehicle license fee,
respectively, has been deferred.
Other amounts reported as unearned revenues include $16,145 in miscellaneous
rents.
RDA Low Income Housing
$128,374 of uncollected interest due from the Palm Desert Development
Company in the Low Income Housing Fund of the Agency has been deferred.
C:3%
City of Palm Desert
Notes to Financial Statements (Continued)
Note 14: Deferred Revenues and Unearned Revenues (Continued)
Other Governmental Funds
Special Revenue Funds
Loans receivable in the amount of $101,712 for home improvement loans are
recorded as deferred in the Community Development Block Grant Fund.
$33,709 of grant funds are deemed unearned until expenditures are incurred in
the Recycling Fund.
$909 of grant funds is deemed unearned until expenditures are incurred in the
Public Safety Police Grants Fund.
Prepaid rents in the amount of $24,906 from the eight apartment complexes
operated by the Palm Desert Housing Authority will be recognized as revenue
when earned.
Capital Project Funds
$689,586 has been deferred for capital reimbursement from a developer for work
completed by the City on behalf of the developer.
Business-Type Activities
The balance of $116,440 represents the unused portions of prepaid golf fees, value of
unredeemed gift certificates and unearned rent.
Component Unit
The balance of $35,600 represents the unused portions of prepaid banquets.
Note 15: Other Post-Employment Benefits
Plan Description
The City offers the Public Employee Retirement Systems (PERS) Health Care Program to
its retirees. The City contributes $48 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.
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 or more years 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.
63
City of Palm Desert
Notes to Financial Statements (Continued)
Note 15
Other Post-Employment Benefits (Continued)
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
Less than 10
10
11
12
13
14
15 or more
Note 16:
Accounting and Funding
City Percent
0%
50%
55%
60%
65%
70%
75%
The Retiree Service Stipend is not actuarially funded. The assets for the retiree service
stipend are accounted for in an agency fund. There were 20 participants in the plan. The
premiums paid amounted to $95,857. An actuarial valuation completed for the plan as of
Ju1y 1, 2002 indicated the amount of the actuarial liability to current and future liabilities to
be $9,761,065.
Special Assessment Debt
Below is a summary of the changes in the Special Assessment Bonds Payable:
Balance at
July 1, 2004
1995 Revenue Bonds $ 1,185,000 $
1997 Revenue Bonds 20,070,000
2003 Assessment Revenue Bonds 4,413,000
AD 98-1 Limited Obligation Refunding Bonds 2,955,000
$ 28,623,000 $
Additions Reduction
- $ 425,000
- 870,000
- 163,000
- 1,115,000
Balance at
June 30, 2005
$ 760,000
19,200,000
4,250,000
1,840,000
- $ 2,573,000 $ 26,050,000
The City has Special Assessment Bonds Payable issued under the 1911 and 1915 Special
Improvement Acts and the 1982 Mello-Roos Community Facilities Act (1982 Bonds). The City
has no liability to 1911 Act bondholders until assessments have been collected from the
property owner. Such liability is then recorded in the Agency Funds. Therefore, the 1911
Bonds are not recorded as liabilities in the accompanying financial statements.
The City also has no liability to the 1915 Act bondholders or the bondholders of bonds issued
under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the
tax rolls. However, the City may take certain actions to assume secondary liability for all or
part of 1915 Act Bonds and the 1982 bonds until such time as foreclosure proceedings are
consummated.
Special assessment bonds payable, as described below, and are not recorded as long-term
liabilities, as these obligations do not constitute a debt or obligation of the City.
64
City of Palm Desert
Notes to Financial Statements (Continued)
Note 16: Special Assessment Debt (Continued)
Assessment District 98-1
The bonds were issued in an original amount of $34,760,000 in December 1998 to
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. The remaining bonds were advance refunded in a prior fiscal
year through the issuance of the Assessment District 98-1 Limited Obligation Refunding
Improvement Bonds. As part of the refunding, the City transferred $8,706,206 from the
Capital Projects Fund for Assessment District No. 98-1 (Bighorn) into bond escrow.
1995 Revenue Bonds
In September 1995, the Palm Desert Financing Authority issued $7,540,000 of 1995
Revenue Bonds. The proceeds from the revenue bonds were loaned to the Assessment
Districts to provide funds to refund in advance $900,000 in 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 under the 1915 Act to
provide funds for capital improvements in the respective assessment districts. Interest
rates on the Bonds are paid at a rate of 6.0% with 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,
2006
2007
2008
2009
Total
Principal
$ 445,000
95,000
105,000
115,000
$ 760,000
Interest
32,250
16,050
10,050
3,450
$ 61,800
Total
$ 477,250
111,050
115,050
118,450
$ 821,800
As of June 30, 2005, the principal amount to be repaid by each assessment district to pay
off the loans from the Financing Authority are as follows;
Assessment District 84-1 Refunding
Assessment District 87-1
Total
$ 290,000
520,000
$ 810,000
65
City of Palm Desert
Notes to Financial Statements (Continued)
Note 16: Special Assessment Debt (Continued)
1997 Revenue Bonds
In December 1997, the Palm Desert Financing Authority issued $30,915,OQ0 in 1997
Revenue Bonds. The proceeds were loaned to the Assessment Districts to refund in
advance $2,298,980 in Assessment District No. 92-1 Bonds, $11,870,000 in Community
Facilities District No. 91-1 (1992 Bonds), $6,945,000 in Assessment District No. 94-1
Bonds and $12,835,000 in 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,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021
Principal
$ 915,000
960,000
1,005,000
1,060,000
1,115,000
6,595,000
6,725,000
825,000
Interest
$ 1,078,674
1,030,382
978,789
923,536
864,254
3,265,589
1,134,575
24,750
Total
$ 1,993,674
1,990,382
1,983,789
1,983,536
1,979,254
9,860,589
7,859,575
849,750
Total $ 19,200,000 $ 9,300,549 $ 28,500,549
As of June 30, 2005, 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
Assessment District 92-1
Assessment District 94-1
Total
$ 18,618,Q00
26,Q00
38,000
2003 Assessment Revenue Bonds
$ 18,682,000
In June 2003, the Palm Desert Financing Authority issued $4,423,OOQ in 2003
Assessment Revenue Bonds. The proceeds were used to purchase three series of limited
obligation improvement bonds issued by the City in connection with the financing and
refinancing of certain improvements of benefit to property within the City's Assessment
District No. 94-2 (Sunterrace), Assessment District No. 94-3 (Merano) and Silver Spur
Ranch Utility Undergrounding Assessment District No. 01-01. These bonds were issued
under the 1915 Improvement Bond Act to provide funds for public improvements in the
respective assessment districts.
As of June 30, 2005, the principal amount to be repaid by each assessment district to pay
off the loans from the Financing Authority are as follows:
Assessment District 94-2
Assessment District 94-3
Assessment District 01-1
Total
$ 835,000
1,110,000
2,305,000
$ 4,250,000
..
City of Palm Desert
Notes to Financial Statements (Continued)
Note 16: Special Assessment Debt (Continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2029
Principal
$ 180,000
185,000
185,000
195,000
200,000
1,150,000
880,000
680,000
595,000
Interest
$
194,211
188,729
182,369
175,360
167,704
699,585
456,479
243,851
66,249
Total
$ 374,211
373,729
367,369
370,360
367,704
1,849,585
1,336,479
923,851
661,249
Total $ 4,250,000 $ 2,374,537 $ 6,624,537
Assessment District 98-1 Limited Obligation Refunding Improvement Bonds
The bonds were issued in an original amount of $2,955,000 in February 2004 to redeem
and defease the outstanding limited obligation improvement bonds of Assessment District
No. 98-1, which were issued in 1998. The bonds are secured by unpaid assessments on
parcels within the District. Under the 1915 Act, annual assessments on the unpaid
assessments sufficient to meet the scheduled debt service requirements are to be
included on the regular county tax bills for the assessed parcels for which there are
unpaid assessments. Interest rates vary from 1.5% to 5.1 % with interest payable semi-
annually on March 2 and September 2 with principal maturing annually on September 2.
Debt service requirements to maturity are as follows:
Year Ending
June 30,
2006
2007
2008
2009
2010
2011-2015
2016-2019
Principal
$
105,000
110,000
110,000
110,000
115,000
655,000
635,000
Interest
$
73,413
71,038
68,068
64,795
61,050
231,425
65,748
Total
$
178,413
181,038
178, 068
174, 795
176,050
886,425
700,748
Total $ 1,840,000 $ 635,537 $ 2,475,537
67
City of Palm Desert
Notes to Financial Statements (Continued)
Note 17: Conduit Debt Obligations
2003 Series A-$22,310,000 Lease Revenue Bonds
In December 2003, the Palm Desert Financing Authority (Authority) issued $22,310,000 in
Lease Revenue Bonds. The proceeds of the Bonds were used to: i) finance the construction
of a County animal shelter and related facilities located in the unincorporated area of
Thousand Palms, California; ii) finance construction of certain County medical clinic facilities
loca#ed in Mecca, California; iii) refund the Palm Desert Financing Authority Lease Revenue
Bonds Series 1996; iv) acquire a debt service reserve insurance policy; v) fund capitalized
interest on the bonds; and vi) pay costs of issuance of the bonds. The Authority will lease
sites relating to each project from the County of Riverside (County) pursuant to a Site Lease
dated as of December 1, 2003 and will lease back to the County the Sites and #he Facilities
pursuant to a Facilities Lease dated December 1, 2003. Under the Lease, the County will pay
to the Trustee Base Rental Payments in the amount equal to the scheduled debt service of
the Bonds. The Authority will assign its right to receive the Base Rental Payments to the
Trustee for the benefit of the owners of the bonds. The debt service on the bonds is to be paid
solely from lease payments made by the County. The Authority has no obligation to make the
debt service payments in the event that the County is not able to make the required base
rental payments. As of June 30, 2005, the outstanding amount was $22,045,000
Note 18: Other Disclosures
The Palm Desert Recreational Facilities Corporation has a net asset deficit of $407,700,
which will be eliminated by increasing revenues through banquet reservations.
.:
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Use of money and property
Miscellaneous revenues
Transfers from other funds
Amounts Available for Appropriation
Charges ta Appropriation (Outflow):
General government
Public safety
Public works
Parks, recreation and culture
Capital outlay
Transfers to other funds
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 55,458,419 $ 55,45$,419
29,700,000
932,500
4,068,500
570,000
2,000,000
670,000
1,100,000
94,499,419
30,900,000
932,500
4,06$,500
570,000
2,000,000
670,000
1,100,000
95,699,419
11,388,467
15,345,600
6,678,301
3,864,400
1,100,000
38,376,768
12,725,332
15,067,005
9,33$,091
3,672,478
266,717
1,663,461
42,733,084
Actual
Amounts
$ 55,458,419
32,464,343
1,631,094
5,604,654
1,442,098
158,011
1,486,830
800,695
1,130,231
100,176,375
11,460,389
14,433,485
6,375,888
2,889,789
266,717
1,451,323
36,877,591
Schedule 1
Variance with
Final Budget
Positive
(Negative)
$ -
1,564,343
698,594
1, 536,154
872,098
158,011
(513,170)
130,695
30,231
4,476,956
1,264,943
633,520
2,962,203
782,689
212,138
5,855,493
$ 56,122,651 $ 52,966,335 $ 63,298,784 $ 10,332,449
.•
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX - SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Charges for services
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
Public safety
Capitaf Outlay
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 2,648,315 $ 2,648,315
4,800,000
1,100,000
8,548,315
1,420,000
34,000
728,605
4,830,920
6,562,000
6,562,000
6,562,000
6,562,000
Actual
Amounts
$ 2,648,315
1,963,929
5,594
45,753
757,000
5,420,591
4,046,277
207,036
4,253,313
Schedule 2
Variance with
Final Budget
Positive
(Negative)
$ -
543,929
5,594
11,753
28,395
589,671
2,515,723
(207,036)
2,308,687
$ 1,986,315 $ (1,731,080) $ 1,167,278 $ 2,898,358
70
CITY OF PALM DESERT
Note to Reqaired Supplementary Information
June 30, 2005
Budgets 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, which is the legal level of control.
For other funds, expenditures cannot exceed the total amount budgeted for
each fund, which is the legal level of control. The City Manager is authorized
to transfer appropriations (without council approval) between an object of a
General Fund Department 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.
Annual budgets are adopted on a basis consistent with accounting principles
generally accepted in the United States of America for all governmental funds except
for certain special revenue funds and capital projects funds, which adopt project-
length budgets and debt service funds that are not budgeted as effectively budgetary
control is achieved through debt indenture provisions. The following special revenue
funds had legally adopted budgets during the current fiscal year:
Prop A Fire Tax
Traffic Safety
Gas Tax
Housing Mitigation Fees
Community Development Block Grant
EI Paseo Assessment District
City-Wide Business License
Landscape and Lighting Districts No. 1- 15
71
GENERAL FUND
The General Fund is used to account for all financial resources traditionally associated with
government, except those required to be accounted for in another fund. It is the primary operating
fund that includes the operating budgets for all the departments and the majority of the City's tax
revenues.
72
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes:
Property taxes
Property transfer tax
Timeshare mitigation fee
Sales tax
Business license tax
Job valuation fees
Transient occupancy tax
Franchises
Penalties and interest on taxes
Total Taxes
Licenses and Permits:
Building permits
Grading permits
Valet parking permits
Encroachment permits
Miscellaneous permits
Business regulatory permits
Total Licenses and Permits
Intergovernmental Revenues:
State grants
Motor vehicle in-lieu fees
Off highway in-lieu fees
Monthly parking bail
Reimbursement RDA costs
Other reimbursements
Total Intergovernmental Revenues
Charges for Services:
Subdivision fees
Zoning fees
Plan check fees
Sale of maps and publications
Microfilm fees
Otherfees
Total Charges for Services
Fines and Forfeitures:
Vehicle code fines
Municipal court fines
Total Fines and Forfeitures
Budget Amounts Actual
Original Final Amounts
$ 55,458,419 $ 55,458,419 $ 55,458,419
3,400,000
450,000
450,000
14,700,000
1,000,000
7,350,000
2,350,000
29,700,000
3,400,000
450,000
450,000
15,900,000
1,000,000
7,350,000
2,350,000
30,900,000
4,003,585
1,099,665
526,271
15,453,148
1,154,143
36,166
7,715,624
2,439,134
36,607
32,464,343
932,500
932,500
2,798,000
1,270,500
4,068,500
570,000
570,000
73
932,500
932,500
2,798,000
1,270,500
4,068,500
570,000
570,000
1,406,692
39,832
475
99,664
15,240
69,191
1,631,094
43,308
3,710,562
1,694
18,795
1,141,598
688,697
5,604,654
603,012
85,086
701,215
13,102
37,623
2,060
1,442,098
74,353
83,658
158,011
Schedule 3
Variance with
Final Budget
Positive
(Negative)
$ -
603,585
649,665
76,271
(446,852)
154,143
36,166
365,624
89,134
36,607
1,564,343
474,192
39,832
475
99,664
15,240
69,191
698,594
43,308
912,562
1,694
18,795
1,141,598
(581,803)
1,536,154
603,012
85,086
131,215
13,102
37,623
2,060
872,098
74,353
83,658
158,011
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2005
Use of Money and Property:
Interest income
Interest on advances
Interest on notes receivable
Total Use of Money and Property
Other Revenues:
Code compliance
St�ong motion instrument fee
Special investigation fee
Certificate of compliance fee
Nuisance abatement tax
Abandoned vehicle abatement
Rental income
Other revenue
Total Other Revenues
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General Government - Departmental:
City council
City clerk
Legislative advocacy
Elections
City attorney
Legal special services
City manager
Community services
Finance
Auditing
Human resources
General services
Data processing
Unemployment insurance
Insurance
Community promotions
Code enforcement
Community development
Art committee
Marketing
Total General Government - Departmental
General Government - Nondepartmental:
Contributions to other agencies
Budget Amounts
Original Final
$ 2,000,000 $ 2,000,000
2,000,000
670,000
670,000
1,100,000
2,000,000
670,000
670,000
1,100,000
Actual
Amounts
$ 637,923
732,911
115,996
1,486,830
90,193
14,133
4,947
2,800
12,816
34,238
443,163
198,405
800,695
1,130,231
94,499,419 95,699,419 100,176,375
261,410
374,650
53,000
61,600
144,000
345,000
672,350
1,431,100
1,274,825
50,000
752,800
396,700
855,150
522,500
1,745,300
895,673
895,909
10,731,967
258,988
396,538
53,000
61,600
144,000
358,700
722,407
1,431,100
1,313,308
54,740
754,800
1,154,688
735,355
13,750
522,500
1,880,536
921,528
1,226,034
12,003,572
248,952
394,141
41,963
45,015
144,000
358,631
722, 392
1,307,071
1,307,508
43,563
652,629
1,120,103
703,056
13,730
93,327
1,616,071
840,073
1,086,484
10,738,709
656,500
74
721,760
721,680
Schedule 3
Variance with
Final Budget
Positive
(Negative)
$ (1,362,077)
732,911
115,996
(513,170)
90,193
14,133
4,947
2,800
12,816
34,238
443,163
(471,595)
130,695
30,231
4,476,956
10,036
2,397
11,037
16,585
69
15
124,029
5,800
11,177
102,171
34,585
32,299
20
429,173
264,465
81,455
139,550
1,264,863
�
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERALFUND
YEAR ENDED JUNE 30, 2005
Public Safety:
Police services
Animal regulation
Nuisance abatement
Demolition
Traffic safety
Development services
Building and safety
Total Public Safety
Public Works:
Administration
Street maintenance
Street resurfacing
Curb and gutter
Cross cutter
Tie in paving
Stripping
Corporate yard
Equipment
Building maintenance
Portola cammunity center
Storm water permit
Total Public Works
Parks, Recreation and Culture:
Park maintenance
Civic center park
Landscape service
Visitors center
Total Parks, Recreation and Culture
Capital Outlay:
Departmental capital outlay
Land purchase
Total Capital Outlay
Transfers to other funds
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 11,508,700 $ 11,208,700
190,000 190,000
618,000 540,377
603,300 592,328
2,425,600 2,535,600
15,345,600 15,067,005
2,508,301
1,690,200
1,300,000
170,000
35,000
77,500
70,800
260,000
451,900
74,600
40,000
6,678,301
2,732,056
1,646,638
3,506,623
259,950
86,115
35,000
175,764
69,445
260,000
451,900
74,600
40,000
9,338,091
1,240,800
1,683,500
563,600
376,500
3,864,400
�
1,100,000
38,376,768
$ 56,122,651
75
1,252,579
1,413,114
630,747
376,038
3,672,478
266,717
266,717
1,663,461
42,733,084
$ 52,866,335
Actual
Amounts
$ 11,115,388
84,630
343,359
592,294
2.297,814
14,433,485
2,506,688
1,558,970
1,375,409
56,389
39,812
3,600
100,652
34,381
210,516
412,092
65,526
11,853
6,375,888
945,955
1,016,302
600,464
327,068
2,889,789
266,717
266,717
1,451,323
36,877,591
$ 63,298,784
Schedule 3
Variance with
Final Budget
Positive
(Negative)
$ 93,312
105,370
197,018
34
237,786
633,520
225,368
87,668
2,131,214
203,561
46,303
31,400
75,112
35,064
49,484
89,808
9,074
28,147
2,962,203
306,624
396,812
30,283
48,970
782,689
212,138
5,855,493
$ 10,332,449
THIS PAGE INTENTIONALLY LEFT BLANK
76
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2005
Assets:
Pooled cash and investments
Receivables:
Accounts
Interest
Loans
Prepaid costs
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with
fiscal agents
Total Assets and Other Debits
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deferred revenues
Deposits payable
Total Liabiiities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for continuing appropriation
Reserved for prepaid costs and deposits
Reserved for advances to other funds
Unreserved:
Designated for capital outlay
Designated for special revenue purposes
Total Fund Balances
Total Liabilities and Fund Balances
Special
Revenue
$ 36,019,799
156,146
40,870
101,712
348
1,185,142
654,000
311,919
$ 38,469,936
$
998,783
92,295
59, 524
101,712
311,916
1,564,230
1,406,147
13,874,753
348
654,000
20,970,458
36,905,706
$ 38,469,936
77
Capital
Projects
$ 21,628,477
737,832
13,744
131
2,576,163
12,765,000
5,927,423
$ 43,648,770
$ 1,368,004
1,468
689,586
67,683
2,126,741
2,113,760
7,861,881
131
12,765,000
18,781,257
41,522,029
$ 43,648,77Q
Schedule 4
Total
Other
Governmental
Funds
$ 57,648,276
893,978
54,614
101,712
479
3,761,305
13,419,000
6,239,342
$ 82,118,706
$ 2,366,787
93,763
59, 524
791,298
379,599
3,690,971
3,519,907
21,736,634
479
13,419,000
18,781,257
20,970,458
78,427,735
$ 82,118,706
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2005
Revenues:
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Special
Revenue
$ 5,578,472
227,848
2,311,542
4,418,190
16,158
630,459
165,764
848,980
14,197,413
Capital
Projects
$ -
425,460
3,147,841
881,045
124,547
4,578,893
Expenditures:
Current:
General government
Public safety
Public works
Capital outlay
Debt service:
Principal retirement
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of property
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
7,483,872
87,974
446,572
1,803,839
9,822,257
4,375,156
614,699
(1,197,283)
17,459
(565,125)
3,810,031
33,095,675
$ 36,905,706
78
469,662
484,331
6,634,731
4,150,716
11,739,440
(7,160,547)
4,618,945
2,812,910
7,431,855
271,308
41,250,721
$ 41,522,029
Schedule 5
Total
Other
Governmental
Funds
$ 5,578,472
227,848
425,460
5,459,383
4,418,190
16,158
1,511,504
165,764
973,527
18,776,306
7,953,534
87,974
930,903
8,438,570
4,150,716
21,561,697
(2,785,391)
5,233,644
(1,197,283)
2,830,369
6,$66,730
4,081,339
74,346,396
$ 78,427,735
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 Safetv 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 ali 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.
Housina Mitiqation 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.
Communitv Development Block Grant Fund - This fund is used to account for the receipts and
expenditures of CDBG funds received from the U.S. Department of Housing and Urban
Development.
New Construction Tax Fund - This fund is used to account for tax collected upon application to
the City for a building permit from every person/entity for the construction of any new building,
addition or trailer space in the city according to a fee schedule. Its use is restricted for the
acquisition and development of public facilities such as parks, playgrounds and public structures.
Planned Drainaqe Fund - This fund is used to account for off-site drainage fees based on an
established fee schedule collected prior to approval of the final map in the case of land being
subdivided or prior to the issuance of a building permit in the case of construction or improvement
of subdivided land.
Park and Recreation Facilities Fund - This fund is used to account for fees collected for
residential and subdivision developments collected either at the time grading permits are paid or
prior to the approval of the final map. Its use is restricted for expenditures related to park
development, maintenance and equipment.
79
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Traffic Siqnals Fund - This fund is used to account for fees collected for residential, commercial
and industrial developments either at the time grading permits are paid or prior to the approval of
the final map. Its use is restricted for expenditures related to the acquisition and maintenance of
traffic signals.
Recvclinq Fund - This fund is used to account for resources resulting from lower landfill 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 Safetv 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.
EI Paseo Assessment District Fund - This fund is used to collect assessments on all business
establishments located within the boundaries set for the EI 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 Qualitv Manaqement 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.
Citv-Wide Business License Fund - This fund accounts for receipts received from the College of
the Desert Alumni Association Fair collected from 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.
Various Landscape and Liqhtinq District Funds - These funds are used to account for
expenditures and receipts of property taxes and service fees levied to the property owners in the
various landscaping and lighting districts, which were formed to provide landscaping and street
lighting maintenance. Individual landscaping and lighting funds are set up for Districts No. 1
through 15.
AIPP Maintenance Fund - This fund is used to account for monies set aside to maintain the
artwork in the City of Palm Desert.
:�
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Child Care Proqram 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 wili arise as a result of the new Desert Willow Golf Course Resort. Funding sources for the
Golf Course Maintenance Fund are collections from the IROC time-share project.
Redevelopment Aaencv Housina Authoritv Fund - This fund is used to account for revenues and
expenditures related to rental units owned by the Housing Authority.
81
CITY OF PALM DESERT
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2005
Housing
M itigation
Traffic Safety Gas Tax Measure A Fee
Assets:
Pooled cash and investments $ - $ - $ 4,942,951 $ -
Receivables:
Accounts - - - -
I nterest - - - -
Loans - - - -
Prepaid costs - - - -
Due from other governments 15,068 85,390 947,101 -
Advances to other funds - - - -
Restricted assets:
Cash and investments with
fiscal agents - - - -
Total Assets $ 15,068 $ 85,390 $ 5,890,052 $ -
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ - $ - $ 49,609 $ -
Accrued liabilities - - - -
Unearned revenues - - - -
Deferred revenues - - - -
Deposits payable - - - -
Total Liabilities - - 49,609 -
Fund Balances:
Reserved:
Reserved for encumbrances - - 412,774 -
Reserved for continuing appropriation - - 2,541,335 -
Reserved for prepaid costs and deposits - - - -
Reserved for advances to other funds - - - -
Unreserved:
Designated for special revenue purposes 15,068 85,390 2,886,334 -
Total Fund Balances 15,068 85,390 5,840,443 -
Total Liabilities and Fund Balances $ 15,068 $ 85,390 $ 5,890,052 $ -
82
Schedule 6
Community New Park and
Development Construction Planned Recreation Traffic
Block Grant Tax Drainage Facilities Signals Recycling
$ 40,496 $ 5,465,977 $ 5,371,755 $ 3,389,396 $ 968,007 $ 4,615,403
- - - - - 137,252
101,712 - - - - -
119,348 - - - - 1,926
- 654,000 - - - -
$ 261,556 $ 6,119,977 $ 5,371,755 $ 3,389,396 $ 968,007 $ 4,754,581
$
92,151
101,712
193,863
$ 335,754 $
335,754
26,510 $
26,510
- $
- $
29,077
33,709
62,786
120,703 161,501 151,442 34,803 - 97,972
- 4,094,398 3,700,601 2,271,674 631,966 634,779
- 654,000 - - - -
(53,010) 874,324 1,493,202 1,082,919 336,041 3,959,044
67,693 5,784,223 5,345,245 3,389,396 968,007 4,691,795
$ 261,556 $ 6,119,977 $ 5,371,755 $ 3,389,396 $ 968,007 $ 4,754,581
83
CITY OF PALM DESERT
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2005
Public EI Paseo Air
Safety Police Library Assessment Quality
Grants Foundation District Management
Assets:
Pooled cash and investments $ 27,159 $ 5,257 $ 39,012 $ 84,017
Receivables:
Accounts - - - 13,180
Interest - - - -
Loans - - - -
Prepaid costs - - 348 -
Due from other governments - - - -
Advances to other funds - - - -
Restricted assets:
Cash and investments with
fiscal agents -
Total Assets $ 27,159 $
Liabilities and Fund Balances:
Liabilities:
Accounts payable $ 11,634 $
Accrued liabilities -
Unearned revenues 909
Deferred revenues -
Deposits payable -
Total Liabilities 12,543
Fund Balances:
Reserved:
Reserved for encumbrances -
Reserved for continuing appropriation -
Reserved for prepaid costs and deposits -
Reserved for advances to other funds -
Unreserved:
Designated for special revenue purposes 14,616
Total Fund Balances 14,616
Total Liabilities and Fund Balances $ 27,159 $
5,257 $ 39,360 $ 97,197
- $ 4,015 $ 5,931
- 4,015 5,931
- 348 -
5,257 34,997 91,266
5,257 35,345 91,266
5,257 $ 39,360 $ 97,197
84
Schedule 6
City Wide Landscape
Business and Lighting AIPP
License Districts No. 1-15 Maintenance
$ 84,078 $ 406,860 $ 226,562 $
1,864 - -
- 16,309 -
$
$
$
85,942 $
- $
85,942
85,942
85,942 $
423,169 $
22,563 $
22,563
9,878
390,728
400,606
423,169 $
226,562 $
12,518 $
12,518
54,500
159,544
214,044
226,562 $
Child Care Golf Course
Program Maintenance
128,287 $ 2,759,512
128,287 $ 2,759,512
14,080 $ 51,465
14,080 51,465
- 54,009
114,207 2,654,038
114,207 2,708,047
128,287 $ 2,759,512
85
CITY OF PALM DESERT
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2005
Assets:
Pooled cash and investments
Receivables:
Accounts
Interest
Loans
Prepaid costs
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with
fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deferred revenues
Deposits payable
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for continuing appropriation
Reserved for prepaid costs and deposits
Reserved for advances to other funds
Unreserved:
Designated for special revenue purposes
Total Fund Balances
Total Liabilities and Fund Balances
Redevelopment
Agency
Housing
Authority
$ 7,465,070
3,850
40,870
311,919
$ 7,821,709
$ 343,476
92,295
24,906
311,916
772,593
308,565
6,740,551
7,049,116
$ 7,821,709
Total
Non-Major
Special Revenue
Funds
$ 36,019,799
156,146
40,870
101,712
348
1,185,142
654,000
311,919
$ 38,469,936
$ 998,783
92,295
59,524
101,712
311,916
1,564,230
1,406,147
13,874,753
348
654,000
20,970,458
36,905,706
$ 38,469,936
:.
THIS PAGE INTENTIONALLY LEFT BLANK
87
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2005
Revenues:
Taxes
Special assessments collected
Intergovernmental revenues
Rental income
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of property
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Traffic Safety
$ - $
356
1,881
165,764
168,001
Housing
Mitigation
is Tax Measure A Fee
- $ 2,385,026 $ 145,031
860,221 554,830 -
2,129 7,295 214
8,249 76,519 1,424
870,599 3,023,670 146,669
- - 1,110,423 -
- - 1,110,423 -
168,001
(184,239)
870,599 1,913,247 146,669
(866,375) - (146,669)
(184,239) (866,375) -
(16,238) 4,224 1,913,247
31,306 81,166 3,927,196
$ 15,068 $ 85,390 $ 5,840,443 $
(146,669)
::
Schedule 7
Community New Park and
Development Construction Planned Recreation Traffic
Block Grant Tax Drainage Facilities Signals Recycling
$ - $ 570,486 $ 389,685 $ 1,071,648 $ 162,437 $ -
588,527 - - - - 119,216
- - - 6,156 - -
6,944 95,628 95,377 55,218 15,053 81,791
96,952 10,426 21,333 - 5,201 564,167
692,423 676,540 506,395 1,133,022 182,691 765,174
641,641
641,641
50,782
397,196
397,196
279,344
563,461
130,597
130,597
7,125
7,125
375,798 1,125,897
27,000
27,000
155,691
450,790
450,790
314,384
- 563,461 - - - -
50,782 842,805 375,798 1,125,897 155,691 314,384
16,911 4,941,418 4,969,447 2,263,499 812,316 4,377,411
$ 67,693 $ 5,784,223 $ 5,345,245 $ 3,389,396 $ 968,007 $ 4,691,795
:•
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2005
Revenues:
Taxes
Special assessments collected
Intergovernmentai revenues
Rental income
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of property
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Public EI Paseo Air
Safety Police Library Assessment Quality
Grants Foundation District Management
$ - $ - $ - $ -
- - 227,848 -
136,310 - - 52,438
- - - 8
1,102 - 65 2,835
1,282 - - -
138,694 - 227,913 55,281
87,974
51,919
139,893
210,180
210,180
23,598
79,579
103,177
(1,199)
17,459
17,459
16,260
(1,644)
$ 14,616 $
- 17,733
(47,896)
- 17,733 (47,896)
5,257 17,612 139,162
5,257 $ 35,345 $ 91,266
.�
Schedule 7
City Wide Landscape
Business and Lighting AIPP Child Care Golf Course
License Districts No. 1-15 Maintenance Program Maintenance
$ 46,278 $ 475,575 $ - $ - $ 332,306
1,234 2,869 4,413 2,744 50,014
- - 12,51$ - -
47,512 478,444 16,931 2,744 382,320
25,000
25,000
22,512
$
22,512
63,430
85,942 $
446, 572
446,572
31,872
51,238
67,026
67,026
(50,095)
49,080
49, 080
(46,336)
447,402
447,402
(65,082)
51,238 - - -
83,110 (50,095) (46,336) (65,082)
317,496 264,139 160,543 2,773,129
400,606 $ 214,044 $ 114,207 $ 2,708,047
91
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2005
Revenues:
Taxes
Special assessments collected
Intergovernmental revenues
Rental income
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
Public safety
Public works
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of property
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Redevelopment
Agency
Housing
Authority
�
$
4,418,190
127,099
137,101
4,682,390
5,569,155
5,569,155
(886,765)
(886,765)
7,935,881
7, 049,116
Schedule 7
Total
Non-Major
Special Revenue
Funds
$ 5,578,472
227,848
2,311,542
4,418,190
16,158
630,459
165,764
848,980
14,197,413
7,483,872
87,974
446,572
1,803,839
9,822,257
4,375,156
614,699
(1,197,283)
17,459
(565,125)
3,810,031
33,095,675
$ 36,905,706
92
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Charges for Services
Use of money and property
Fines and forfeitures
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 31,306 $ 31,306
5,000
200,000
236,306
2,000
120,000
153,306
205,000
205,000
205,000
205,000
Actual
Amounts
$ 31,306
356
1,881
165,764
199,307
184,239
184,239
Schedule 8A
Variance with
Final Budget
Positive
(Negative)
$ -
356
(119)
45,764
46,001
20,761
20,761
$ 31,306 $ (51,694) $ 15,068 $ 66,762
93
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
GAS TAX
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Charges for Services
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 81,166 $ 81,166
880,000
15,000
976,166
895,000
895,000
880,000
15,000
976,166
895,000
895,000
Actual
Amounts
$ 81,166
$ 81,166 $ 81,166 $
94
860,221
2,129
8,249
951,765
866,375
866,375
85,390
Schedule 8B
Variance with
Final Budget
Positive
(Negative)
$ -
(19,779)
2,129
(6,751)
(24,401)
28,625
28,625
$ 4,224
CITY OF PALM DESERT
BUDGE7ARY COMPARISON SCHEDULE
HOUSING MITIGATION FEES
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Charges for Services
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Transfers to other funds
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ - $ -
30,000 30,000
2,500 2,500
32,500 32,500
Actual
Amounts
$ -
145,031
214
1,424
146,669
32,500 146,700
32,500 146,700
$ - $ (114,200) $
95
146,669
146,669
Schedule 8C
Variance with
Final Budget
Positive
(Negative)
$ -
115,031
214
(1,076)
114,169
31
31
- $ 114,200
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Intergovernmental
Use of money and property
Other
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government - nondepartmental
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 16,911 $ 16,911
400,000
416,911
400,000
400,000
400,000
416,911
762,376
762,376
Actual
Amounts
$ 16,911
$ 16,911 $ (345,465) $
.�
588,527
6,944
96,952
709,334
641,641
641,641
67,693
Schedule 8D
Variance with
Final Budget
Positive
(Negative)
$ -
188,527
6,944
96,952
292,423
120,735
120,735
$ 413,158
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
EL PASEO ASSESSMENT DISTRICT
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Special assessments collected
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government - nondepartmental
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 17,612 $ 17,612
200,000
217,612
200,000
217,612
200,000
200,000
$ 17,612
97
220,000
220,000
$ (2,388)
Actual
Amounts
$ 17,612
227,848
65
245,525
210,180
210,180
$ 35,345
Schedule 8E
Variance with
Final Budget
Positive
(Negative)
$ -
27,848
65
27,913
$
9,820
9,820
37,733
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CITY-WIDE BUSINESS LICENSE
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government - nondepartmental
Total Charges to Appropriation
Budgetary Fund Balance, June 30
Budget Amounts
Original Final
$ 63,430 $ 63,430
50,000
1,000
114,430
50,000
1,000
114,430
51,000
51,000
51,000
51,000
Actual
Amounts
$ 63,430
46,278
1,234
110,942
25,000
25,000
Schedule 8F
Variance with
Final Budget
Positive
(Negative)
$ -
(3,722)
234
(3,488)
26,000
26,000
$ 63,430 $ 63,430 $ 85,942 $ 22,512
.;
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDUL.E
LANDSCAPE AND LIGHTING DISTRICTS NO. 1-15
YEAR ENDED JUNE 30, 2005
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Use of money and property
Transfers from other funds
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
Public works
Total Charges to Appropriation
Budget Amounts
Original Final
$ 317,496 $ 317,496
489,792
58,784
866,072
489,792
58,784
866,072
545,031
545,031
562,$93
562,893
Actual
Amounts
$ 317,496
475,575
2,869
51,238
847,178
446,572
446,572
Schedule 8G
Variance with
Final Budget
Positive
(Negative)
$ -
(14,217)
2,869
(7,546)
(18,894)
116,321
116,321
Budgetary Fund Balance, June 30 $ 321,041 $ 303,179 $ 400,606 $ 97,427
. .�
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100
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 Proiects 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.
Drainaae 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.
Siqnalization Fund - This fund is used to account for resources and expenditures for capital
improvement projects that are related to the acquisition and maintenance of traffic signals.
Buildinps Fund - This fund is used to account for resources and expenditures for capital
improvement projects that are related to the improvement and maintenance of public facilities and
structures.
Library Fund - This fund is used to account for resources and expenditures for capital
improvement projects that are related to the purchase of library resources for the Multi-Agency
Library.
CFD Indian Ridqe 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.
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
Town Center Parkinp Lot - This fund is used to account for resources and expenditures for
construction of a two-story parking lot at the Westfield Shopping Center.
Silver Saur Ranch Fund - This fund is used to account for the construction of public
improvements from bond proceeds resulting from the creation of this District.
101
CITY OF PALM DESERT
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2005
Assets:
Pooled cash and investments
Receivables:
Accounts
Interest
Prepaid costs
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with
fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deferred revenues
Deposits payable
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for continuing appropriation
Reserved for prepaid costs and deposits
Reserved for advances to other funds
Unreserved:
Designated for capital outlay
Total Fund Balances
Total Liabilities and Fund Balances
Arts In
Public
Places
$ 1,818,978
131
$ 1,819,109
$ 49,687
1,468
67,683
118,838
21,050
343,000
131
1,336,090
1,700,271
$ 1,819,109
102
Capital
Projects
Reserve
$ 11,296,602
737,832
2,576,163
8,000,000
$ 22,610,597
$ 559,447
689,586
1,249,033
1,943,677
6,277,693
8,000,000
5,140,194
21,361,564
$ 22,610,597
Drainage
Facilites
$ 2,994,282
$ 2,994,282
$ -
79,100
2,915,182
2,994,282
$ 2,994,282
Schedule 9
Parks and
Recreation
Facilities
$ 1,245,421
4,765,000
$ 6,010,421
$ 163,657
163,657
17, 784
1,053,048
4,765,000
10,932
5,846,764
$ 6,010,421
Signalization Buildings
$ 300,065 $ 3,222,953 $
$ 300,065 $ 3,222,953 $
$
2,631
2,631
�
- $
$
4,786 -
188,140 -
104,508 3,222,953
297,434 3,222,953
300,065 $ 3,222,953 $
Library
166,062
166,062
33,988
33,988
47,363
84,711
132,074
166,062
103
CITY OF PALM DESERT
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2005
Assets:
Pooled cash and investments
Receivables:
Accounts
Interest
Prepaid costs
Due from other governments
Advances to other funds
Restricted assets:
Cash and investments with
fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deferred revenues
Depasits payable
Total Liabilities
Fund Balances:
Reserved:
Reserved for encumbrances
Reserved for continuing appropriation
Reserved for prepaid costs and deposits
Reserved for advances to other funds
Unreserved:
Designated for capital outlay
Total Fund Balances
Total Liabilities and Fund Balances
CFD Assessment Assessment
Indian District No. 94-2 District No. 94-3
Ridge Sunterrace Merano
$ - $ - $ -
10,758
101
717
4,628,348
$ 4,639,106 $
254 $
254
4,638,852
4,638,852
$ 4,639,106 $
104
44,885
44,986 $
- $
44,986
44,986
44,986 $
319,993
320,710
320,710
320,710
320,710
Schedule 9
Total
Assessment Non-Major
District No. 98-1 Town Center Silver Capital Projects
Bighorn Parking Lot Spur Ranch Funds
$ - $ 558,285 $ 25,829 $ 21,628,477
- - - 737,832
1,971 - 197 13,744
- - - 131
- - - 2,576,163
- - - 12,765,000
848,134
$ 850,105 $
558,285 $
86,063 5,927,423
112,089 $ 43,648,770
��
�
- $
850,105
850,105
850,105 $
558,285 $
558,285
558,285 $
55 $ 1,368,004
- 1,468
- 689,586
- 67,683
55 2,126,741
- 2,113,760
- 7,861,881
- 131
- 12,765,000
112,034 18,781,257
112,034 41,522,029
112,089 $ 43,648,770
105
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENpITURES AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2005
Revenues:
Licenses and permits
Intergovernmental revenues
Use of money and property
Miscellaneous
Contributions from property owners
Total Revenues
Expenditures:
Current:
General government
Public works
Capital outlay
Debt service:
Principal retirement
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of property
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Arts In
Public
Places
$ 425,460
32,652
7,130
465,242
257,605
195,943
453, 548
Capital
Projects
Reserve
$ -
3,147,841
474,380
92,199
3,714,420
54,580
1,813
56,393
202,294
5,161,520
4,150,716
9,514,530
Drainage
Facilites
$
87,169
87,169
11,694 (5,$00,110)
- 4,539,321
- 2,$12,910
11,694
1,688,577
$ 1,700,271
106
(30,776)
7,352,231 -
1,552,121 (30,776)
19,809,443 3,025,058
$ 21,361,564 $ 2,994,282
Schedule 10
Parks and
Recreation
Facilities Signalization Buildings Library
$ - $ - $ - $ - $
139,470 5,493 57,771 -
3,383 1,919 14,458 3,534
142,853 7,412 72,229 3,534
12,143
1,190,099
1,202,242
(1,059,389)
CFD
Indian
Ridge
91,378
111
91,489
222,300
222,300
(130,811)
- - - 79,624 -
(1,059,389) (8,854) 72,229 (128,899) (130,811)
6,906,153 306,288 3,150,724 260,973 4,769,663
$ 5,846,764 $ 297,434 $ 3,222,953 $ 132,074 $ 4,638,852
107
16,266
16,266
(8,854)
�
�
72,229
212,057
212,057
(208,523)
79,624
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2005
Revenues:
Licenses and permits
Intergovernmental revenues
Use of money and properky
Miscellaneous
Contributions from properky owners
Total Revenues
Expenditures:
Current:
General government
Public works
Capital outlay
Debt service:
Principal retirement
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Sale of property
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year
Assessment Assessment Assessment
District No. 94-2 District No. 94-3 District No. 98-1
Sunterrace Merano Bighorn
$ - $ - $ -
$
825
825
107
107
718
718
44,268
44,986 $
5,883
5,883
780
780
5,103
5,103
315,607
320,710 $
16,272
16,272
2,067
2,067
14,205
108
14,205
835,900
850,105
Schedule 10
Town Center
Parking Lot
$ -
Silver
SpurRanch
$ -
2,341
2,341
28,374
28,374
(26,033)
Total
Non-Major
Capital Projects
Funds
$ 425,460
3,147,841
881,045
124,547
4,578,893
469,662
484,331
6,634,731
4,150,716
11,739,440
(7,160,547)
4,618,945
2,812,910
- 7,431,855
(26,033) 271,308
138,067 41,250,721
112,034 $ 41,522,029
$ - $
109
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110
AGENCYFUNDS
Agency Funds are used to account for assets held by the city as an agent for individuals, private
organizations, other governments and/or funds.
Aqencv 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 1911 Bond Act - This fund is used to account for the assets held on behalf of the
assessment district's property owners until they are remitted to the bondholders.
Retiree Service Stipend Fund - This fund is used to account for assets held to pay for the retiree
service stipend.
Special Assessment Funds - These funds are used to account for the collection of special
assessments and the future payment of debt service related to bonds issued.
111
Assets:
Cash and investments
Receivables (net of alowance
for uncollectibles):
Accounts
Interest
Restricted Assets:
Cash With fiscal agent
Total Assets
Liabilities:
Accounts payable
Deposits
Total Liabilities
CITY OF PALM DESERT
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 30, 2005
Agency
$ 2,317,207
$ 2,317,207
Schedule 11
Treasurers Retiree Special
1991 Bond Service Assessment
Act Stipend Fund Funds
$ 274,514 $ 2,630,721 $ 3,522,887
�
$ 274,514
16,319
5,563,189
$ 8,210,229
25,343,308
7,354
3,176,856
$ 32,050,405
Totals
$ 8,745,329
25,343,308
23,673
8,740,045
$ 42,852,355
$ - $ - $ - $ 11,021 $ 11,021
2,317,207 274,514 8,210,229 32,039,384 42,841,334
$ 2,317,207 $ 274,514 $ 8,210,229 $ 32,050,405 $ 42,852,355
112
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113
CITY OF PALM DESERT Schedule 12
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2005
Balance Balance
July 1, 2004 Additions Deletions June 30, 2005
Agency
Assets:
Cash and investments $ 1,677,716 $ 2,580,091 $ 1,940,600 $ 2,317,207
Total Assets $ 1,677,716 $ 2,580,091 $ 1,940,600 $ 2,317,207
Liabilities:
Deposits $ 1,677,716 $ 2,580,091 $ 1,940,600 $ 2,317,207
Total Liabilities $ 1,677,716 $ 2,580,091 $ 1,940,600 $ 2,317,207
Treasurers 1911 Bond Act
Assets:
Cash and investments
Total Assets
Liabilities:
Deposits
Total Liabilities
Retiree Service Stipend Fund
Assets:
Cash and investments
Receivables {net of allowance
for uncollectibles):
Interest
Restricted Assets:
Cash with fiscal agent
Total Assets
Liabilities:
Accounts payable
Deposits
Total Liabilities
$ 274,514 $ - $ - $ 274,514
$ 274,514 $ - $ - $ 274,514
$ 274,514 $ - $ - $ 274,514
$ 274,514 $ - $ - $ 274,514
$ 1,757,245 $ 978,797 $ 105,321 $ 2,630,721
16, 319 16, 319 16, 319 16, 319
5,848,364 - 285,175 5,563,189
$ 7,621,928 $ 995,116 $ 406,815 $ 8,210,229
$ 228 $ - $ 228 $ -
7,621,700 995,116 406,587 8,210,229
$ 7,621,928 $ 995,116 $ 406,815 $ 8,210,229
114
CITY OF PALM DESERT Schedule 12
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2005
Special Assessment Funds
Assets:
Cash and investments
Receivables (net of allowance
for uncollectibles):
Accounts
Interest
Restricted Assets:
Cash with fiscal agent
Total Assets
Liabilities:
Accounts payable
Deposits
Total Liabilities
Totals - All Agency Funds
Assets:
Cash and investments
Receivables (net of allowance
for uncollectibles):
Accounts
Interest
Restricted Assets:
Cash with fiscal agent
Total Assets
Liabilities:
Accounts payable
Deposits payable
Total Liabilities
Balance Balance
July 1, 2004 Additions Deletions June 30, 2005
$ 4,026,963 $ 6,492,544 $ 6,996,620 $ 3,522,887
27,645,360 92,435 2,394,487 25,343,308
2,008 7,354 2,008 7,354
3,169,931 88,652 81,727 3,176,856
$ 34,844,262 $ 6,680,985 $ 9,474,842 $ 32,050,405
$ 9,913 $ 11,021 $ 9,913 $ 11,021
34,834,349 - 2,794,965 32,039,384
$ 34,844,262 $ 11,021 $ 2,804,878 $ 32,050,405
$ 7,736,438 $10,051,432 $ 9,042,541 $ 8,745,329
27,645,360 92,435 2,394,487 25,343,308
18,327 23,673 18,327 23,673
9,018,295 88,652 366,902 8,740,045
$ 44,418,420 $10,256,192 $11,822,257 $ 42,852,355
$ 10,141 $ 11,021 $ 10,141 $ 11,021
44,408,279 3,575,207 5,142,152 42,841,334
$ 44,418,420 $ 3,586,228 $ 5,152,293 $ 42,852,355
115
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116
Revenue and Expenses Statistics
City of Palm Desert, California
-117-
City of Palm Desert
Government-wide Expenses by Function
Last Six Years (1)
Functions
2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
General government $27,144,038 $28,402,902 $21,055,957 20,830,544$ 18,625,329$
Public safety 18,743,083 15,420,151 15,601,833 14,547,981 12,744,434
Public works 10,428,219 13,046,864 23,009,640 19,686,164 15,595,997
Parks, recreation and culture 4,043,034 3,977,447 3,480,264 3,775,417 3,542,671
Payment to other agencies 30,183,408 24,051,292 22,140,837 17,734,171 14,317,974
Interest on long-term debt 12,749,188 14,124,371 14,443,467 15,271,200 16,224,248
Golf Course-Desert Willow 6,636,889 6,657,220 6,653,242 6,629,866 6,901,576
Office Complex-Parkview 609,298 570,135 511,272 534,865 1,481,938
Total $110,537,157 $106,250,382 $106,896,512 99,010,208$ 89,434,167$
Functions
1999/2000
General government 15,987,467$
Public safety 12,291,265
Public works 21,649,952
Parks, recreation and culture 7,503,822
Payment to other agencies 10,397,422
Interest on long-term debt 16,380,712
Golf Course-Desert Willow 6,797,094
Office Complex-Parkview 440,223
Total 91,447,957$
(1) City has only six years of expenses using the new financial model.
Source: City of Palm Desert Audited Financial Statements
-118-
City of Palm Desert
Government-wide Revenues
Last Six Years (1)
Program and General Revenues
2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Program Revenues
Charges for services $20,700,652 $17,926,484 $17,334,608 17,038,841$ 17,115,089$
Operating grants and contributions 4,800,413 4,632,297 6,249,955 5,568,966 4,607,448
Capital grants and contributions 5,505,334 7,402,109 4,740,000 4,442,917 5,844,132
General Revenues
Taxes 96,926,134 87,551,146 79,129,316 73,257,210 66,975,636
Special Assessment Collected - - 2,168,069 - -
Gain (loss) on sale of assets 17,713 - (937,006) 204,000 764,000
Other revenues 6,347,396 (6,853,977) 3,997,338 4,971,773 7,113,762
Use of money & property 4,284,191 2,985,463 3,378,266 6,388,234 11,539,085
Total $138,581,833 $113,643,522 $116,060,546 111,871,941$ 113,959,152$
Program and General Revenues
1999/2000
Program Revenues
Charges for services 17,406,283$
Operating grants and contributions 4,180,474
Capital grants and contributions 16,300,977
General Revenues
Taxes 59,416,203
Special Assessment Collected -
Gain (loss) on sale of assets 159,018
Other revenues 2,154,731
Use of money & property 8,727,125
Total 108,344,811$
(1) City has only six years of revenues using the new financial model.
Source: City of Palm Desert Audited Financial Statements
-119-
Revenue and Expenditures Statistics
City of Palm Desert, California
-120-
City Of Palm Desert
Historical Revenue and Expenditures
Combined General, Special, Debt Service and Capital Project
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Revenue Type:
Taxes 102,020,742$ 93,948,185$ 83,762,760$ 78,631,363$ 72,173,943$
Use of Money and Property (7)10,085,901 8,735,604 9,068,422 11,537,388 17,995,716
Intergovernmental Revenues 11,064,037 6,067,555 11,488,993 10,581,051 6,463,484
Sales of property - - 979,533 766,279 767,500
Special Assessments Collected (6)227,848 214,950 707,434 193,909 188,591
Licenses and Permits 2,056,554 1,316,669 1,286,262 1,417,012 1,511,652
Charges for Services 1,463,850 1,052,467 873,605 975,841 845,097
Recovery of Investment Loss 0 0 0 0 0
Fines and Forfeitures 323,775 306,630 367,903 305,197 238,872
Other Revenues 3,232,825 4,179,567 2,440,929 1,391,276 11,035,100
Total Revenue (4) (5)130,475,532 115,821,627 110,975,841 105,799,316 111,219,955
Expenditures:
Current
General Gov't, departmental 26,112,125 27,122,532 20,034,295 10,570,028 10,343,127
General Gov't, non-departmental 30,183,408 24,051,292 - 8,624,068 6,943,486
Public Safety 18,567,736 15,290,696 15,410,711 14,368,399 12,598,263
Public Works 7,306,791 10,153,096 20,631,322 17,657,120 13,167,046
Parks, Recreation and Culture 2,889,789 2,638,386 2,656,809 2,580,841 2,434,884
Capital Outlay 22,409,057 18,927,787 36,687,223 17,159,885 14,330,725
Debt Service (1)23,325,642 45,015,756 38,389,539 37,215,387 16,961,290
Other Combined Expenditures (2)- - 21,600,505 14,902,584 14,317,974
Total Expenditures (4) (5)130,794,548 143,199,545 155,410,404 123,078,312 91,096,795
Excess of Revenues Over (Under)
Expeditures (3)(319,016)$ (27,377,918)$ (44,434,563)$ (17,278,996)$ 20,123,160$
(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 $65
million from redevlopment agencies to a State Education Revenue Augmentation Fund (ERAF) for the benefit
of school districts by shifting approximately 5.675% of each agency's tax increment, net of amounts due to
their taxing agencies, to the ERAF for the benefit of school districts for the current and next fiscal years. The
amount required to be paid by a redevelopment agency under such legislation is apportioned among all of its
redevelopment project areas on a collective basis, and is not allocated separately to individual project areas.
(4) Fiduciary Funds are not included in totals.
(5) Interfund Transfers In/Out, proceeds from bonds and proceeds from notes are not included in totals
(6) Per GFOA Special Assesments levies and collections for ten year schedules are no longer required.
(7) Includes Rental Income
Source: City of Palm Desert Audited Financial Statements
-121 -
City Of Palm Desert
Historical Revenue and Expenditures
Combined General, Special, Debt Service and Capital Project
Last Ten Fiscal Years
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Revenue Type:
Taxes 65,850,439$ 57,251,012$ 51,058,766$ 47,163,127$ 45,253,057$
Use of Money and Property 14,949,739 12,357,206 11,461,409$ 9,904,514 9,724,426
Intergovernmental Revenues 5,058,242 3,733,553 5,104,695$ 6,895,551 13,926,934
Sales of property 831,948 589,407 16,612,425$ 6,433,296 1,031,764
Special Assessments Collected (6)160,687 165,971 218,925$ 542,100 438,549
Licenses and Permits 1,606,114 2,054,410 1,672,191$ 1,243,229 1,022,087
Charges for Services 914,594 1,126,350 939,963$ 556,480 539,398
Recovery of Investment Loss 0 999,718 336,213$ 438,711 0
Fines and Forfeitures 359,655 280,384 163,523$ 105,600 83,498
Other Revenues 12,088,282 4,165,681 4,231,475$ 2,681,462 940,323
Total Revenue (4) (5)115,512,272 96,905,915 98,262,971 80,787,274 76,866,958
Expenditures:
Current
General Gov't, departmental 9,505,179 9,895,799 8,499,876 8,812,854 8,479,993
General Gov't, non-departmental 4,904,499 3,538,256 2,865,252 2,828,675 7,191,765
Public Safety 12,288,224 11,475,231 10,957,552 9,213,399 7,660,837
Public Works 5,496,375 5,233,575 3,959,509 6,032,388 4,909,366
Park, Recreation and Culture 1,970,888 2,361,873 1,974,216 1,213,019 1,190,679
Capital Outlay 49,355,219 34,651,149 81,122,212 30,224,801 28,444,639
Debt Service (1)16,410,034 25,804,222 21,396,296 31,012,505 12,401,236
Other Combined Expenditures (2)10,397,422 2,921,309 7,100,023 12,630,970 16,392,832
Total Expenditures (4) (5)125,356,502 107,320,170 142,519,961 106,406,350 90,470,320
Excess of Revenues Over (Under)
Expeditures (3)(9,844,230)$ (10,414,255)$ (44,256,990)$ (25,619,076)$ (13,603,362)$
(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 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
(6) No longer included
(7) Includes Rental Income
Source: City of Palm Desert Audited Financial Statements
-122 -
City of Palm Desert
Graphs - Historical Revenue and Expenditures
Combined General, Special, Debt Service and Capital Project
Last Ten Fiscal Years
(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
Combined Revenues
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
FY 2004/2005FY 2003/2004FY 2002/2003FY 2001/2002FY 2000/2001FY 1999/2000FY 1998/1999FY 1997/1998FY 1996/1997FY 1995/1996Combined Other
Revenues (1)
Special
Assessments
Intergovern-
mental
Revenues
Use of Money
and Property
Taxes
Combined Expenditures
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
FY2004/2005FY2003/2004FY2002/2003FY2001/2002FY2000/2001FY1999/2000FY1998/1999FY1997/1998FY1996/1997FY1995/1996Other
Combined
Expenditures
(2)Special
Assessments
Debt Service (3)
Capital Outlay
Current (4)
-123-
City Of Palm Desert
Historical General Revenue and Expenditures
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Revenue Type:
Taxes 32,464,343$ 30,887,340$ 27,588,464$ 26,676,756$ 27,225,965$
Use of Money and Property 1,486,830 1,135,952 1,573,165 2,379,764 3,147,544
Intergovernmental Revenues 5,604,654 3,633,489 4,840,161 3,778,651 4,410,048
Licenses and Permits 1,631,094 1,053,905 960,080 1,133,922 1,170,926
Charges for Services 1,442,098 1,048,667 868,255 975,841 845,097
Recovery of Investment Loss 0 0 0 0 0
Fines and Forfeitures 158,011 147,378 164,575 170,534 139,269
Other Revenues 800,695 178,016 244,959 172,397 158,079
Total Revenue (1)43,587,725 38,084,747 36,239,659 35,287,865 37,096,928
Expenditures:
Current
General Gov't, departmental 10,738,709 9,804,906 10,431,622 10,204,026 8,606,552
General Gov't, non-departmental 721,680 692,401 553,253 843,002 710,405
Public Safety 14,433,485 13,052,963 12,405,418 12,119,147 10,920,200
Public Works 6,375,888 5,255,530 6,580,693 4,612,488 5,561,427
Capital Outlay 266,717 230,557 2,307,796 581,652 669,238
Park, Recreation and Culture 2,889,789 2,638,386 2,656,809 2,580,841 2,434,884
Total Expenditures (1)35,426,268 31,674,743 34,935,591 30,941,156 28,902,706
Excess of Revenues Over (Under)
Expeditures 8,161,457$ 6,410,004$ 1,304,068$ 4,346,709$ 8,194,222$
(1) Interfund Transfers In/Out are not included in totals.
Source: City of Palm Desert Audited Financial Statements
-124-
City Of Palm Desert
Historical General Revenue and Expenditures
Last Ten Fiscal Years
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Revenue Type:
Taxes 26,783,123$ 23,452,941$ 21,232,260$ 19,829,410$ 17,569,058$
Use of Money and Property 2,688,963 2,169,894 2,168,056 2,172,618 1,583,596
Intergovernmental Revenues 2,980,751 2,586,521 2,299,888 2,193,319 3,177,260
Licenses and Permits 1,239,693 1,570,397 1,399,380 833,441 809,693
Charges for Services 914,594 1,126,350 939,963 556,480 539,398
Recovery of Investment Loss 0 160,158 0 0 0
Fines and Forfeitures 140,896 133,822 121,073 68,349 55,470
Other Revenues 585,605 376,605 395,188 366,232 112,064
Total Revenue (1)35,333,625 31,576,688 28,555,808 26,019,849 23,846,539
Expenditures:
Current
General Gov't, departmental 7,950,575 7,364,325 6,738,391 6,873,931 6,679,393
General Gov't, non-departmental 733,870 719,866 457,343 340,061 409,020
Public Safety 10,499,038 9,694,478 9,105,901 7,493,114 6,861,919
Public Works 5,189,349 4,919,357 3,657,256 5,644,239 4,527,291
Capital Outlay 0
Park, Recreation and Culture 1,970,888 2,361,873 1,974,216 1,213,019 1,190,679
Total Expenditures (1)26,343,720 25,059,899 21,933,107 21,564,364 19,668,302
Excess of Revenues Over (Under)
Expeditures 8,989,905$ 6,516,789$ 6,622,701$ 4,455,485$ 4,178,237$
(1) Interfund Transfers In/Out are not included in totals.
Source: City of Palm Desert Audited Financial Statements
-125-
City of Palm Desert
Historical General Fund Actual Statement of Revenues
(Including Transfers In)
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Revenue Type:
Sales Tax 15,453,148$ 15,138,424$ 13,463,197$ 13,027,395$ 13,619,607$
Transient Occupancy Tax 7,715,624 7,660,831 6,816,682 7,043,454 7,385,707
Property Tax 4,003,585 3,369,711 3,078,047 2,765,556 2,466,758
Interest 1,486,830 1,135,952 1,573,165 2,379,764 3,147,544
Transfer In 1,130,231 1,092,475 2,450,600 870,624 934,039
Franchises 2,439,134 2,417,856 2,198,663 2,131,820 1,981,697
State Subventions (1)3,712,256 2,020,583 2,634,949 2,555,811 2,262,535
Building & Grading Permits 1,446,524 970,826 876,372 1,064,097 1,101,743
Reimbursments 1,830,295 1,547,862 1,367,303 1,036,133 2,125,784
Business License Tax 1,154,143 955,501 961,675 898,113 826,591
Timeshare Mitigation Fee 526,271 392,988 262,403 158,302 265,350
Plan Check Fees 701,215 459,046 472,356 612,845 623,936
Property Transfer Tax 1,099,665 870,415 689,147 497,967 578,238
Other Revenues (2)2,019,035 1,144,752 1,845,700 1,116,608 711,438
Total General Revenue 44,717,956$ 39,177,222$ 38,690,259$ 36,158,489$ 38,030,967$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Revenue Type:
Sales Tax 13,203,564$ 10,877,715$ 9,594,560$ 8,942,146$ 8,133,542$
Transient Occupancy Tax 7,280,625 6,725,876 6,135,811 5,459,239 4,919,263
Property Tax 2,393,368 2,417,572 2,306,753 2,597,674 1,757,609
Interest 2,688,963 2,169,894 2,168,056 2,172,618 1,583,595
Transfer In 957,817 1,026,956 1,048,970 1,714,582 678,676
Franchises 1,837,806 1,612,054 1,540,656 1,395,523 1,360,554
State Subventions (1)1,991,034 1,679,519 1,494,346 1,365,641 1,393,615
Building & Grading Permits 1,182,392 1,517,286 1,339,825 783,862 768,247
Reimbursments 958,858 830,198 730,772 768,421 1,717,264
Business License Tax 749,831 744,444 684,601 641,877 598,704
Timeshare Mitigation Fee 553,800 476,050 458,900 429,750 501,150
Plan Check Fees 538,590 866,757 660,307 414,510 359,525
Property Transfer Tax 698,934 516,513 436,631 289,783 252,189
Other Revenues (2)1,255,860 1,142,810 1,004,590 758,805 501,282
Total General Revenue 36,291,442$ 32,603,644$ 29,604,778$ 27,734,431$ 24,525,215$
(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
-126-
City of Palm Desert
Graph - Historical General Fund Actual Statement of Revenue
(Including Transfers In)
Last Ten Fiscal Years
(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property
transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants,
incomes, penalties, permits, sales and taxes.
*State Subventions is any combination of trailer coach fees, motor vehicle and off-highway in-lieus, and
subventions from state.
Source: City of Palm Desert Audited Financial Statements
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
FY 2004/2005FY 2003/2004FY 2002/2003FY 2001/2002FY 2000/2001FY 1999/2000FY 1998/1999FY 1997/1998FY 1996/1997FY 1995/1996Combined Other
(1)
Interest
Property Tax
Transient
Occupancy Tax
Sales Tax
-127-
City of Palm Desert
Historical General Fund Actual Statement of Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Expenditure:
Public Safety (1)12,135,671$ 11,432,803$ 10,869,991$ 10,732,159$ 9,489,468$
City Administration (2)7,196,081 5,999,228 6,573,351 6,461,706 4,972,981
Public Works Administration 2,506,688 2,270,854 1,937,184 1,745,513 1,764,947
Community Promotions 1,616,071 1,420,717 1,654,768 2,262,129 2,052,281
Street Maintenance 1,558,970 1,411,018 1,323,955 1,378,064 1,455,268
Building Safety 2,297,814 1,620,160 1,535,427 1,386,988 1,201,802
Street Resurfacing 1,375,409 897,153 2,078,218 608,616 1,422,637
Public Works 934,821 676,505 1,007,637 880,295 918,575
Other Expenditures (3)7,256,066 6,805,633 14,228,641 7,052,549 8,398,278
Total Expenditures 36,877,591$ 32,534,071$ 41,209,172$ 32,508,019$ 31,676,237$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Expenditure:
Public Safety (1)8,841,693$ 7,932,755$ 7,600,456$ 6,023,208$ 5,847,414$
City Administration (2)4,617,682 4,375,851 3,966,163 4,383,993 3,816,262
Public Works Administration 1,673,434 1,607,836 1,649,970 2,413,334 2,237,745
Community Promotions 1,676,995 1,677,282 1,683,191 1,484,691 1,662,037
Street Maintenance 1,451,917 1,515,287 1,097,782 1,327,167 1,357,312
Building Safety 1,134,696 1,424,124 1,257,458 1,255,092 899,604
Street Resurfacing 1,028,354 861,490 190,003 1,177,944 406,440
Public Works 1,035,644 934,744 719,501 725,794 525,359
Other Expenditures (3)11,503,552 6,161,641 9,664,696 4,214,557 2,965,877
Total Expenditures 32,963,967$ 26,491,010$ 27,829,220$ 23,005,780$ 19,718,050$
(1) Public Safety is any combination of animal regulation, development services, nuisance abatement, police
services, demolition, 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
-128-
City of Palm Desert
Graph - Historical General Fund Actual Statement of Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
(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
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
FY 2004/2005FY 2003/2004FY 2002/2003FY 2001/2002FY 2000/2001FY 1999/2000FY 1998/1999FY 1997/1998FY 1996/1997FY 1995/1996Combined Other (1)
Community
Promotions
Public Works
Administration
City Administration
(2)
Public Safety (3)
-129-
City of Palm Desert
Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Total General Revenue (2)43,587,725$ 38,084,747$ 36,239,659$ 35,287,865$ 37,096,928$
Population (1)49,280 44,812 43,917 42,863 42,334
General Revenue Per Capita 884$ 850$ 825$ 823$ 876$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Total General Revenue (2)35,333,625$ 31,576,688$ 28,555,808$ 26,019,849$ 23,846,539$
Population (1)37,634 36,287 35,162 33,471 32,771
General Revenue Per Capita 939$ 870$ 812$ 777$ 728$
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Total General Expenditures (2)35,426,268$ 31,674,743$ 34,935,591$ 30,941,156$ 28,902,706$
Population (1)49,280 44,812 43,917 42,863 42,334
General Expenditures Per
Capita 719$ 707$ 795$ 722$ 683$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Total General Expenditures (2)26,343,720$ 25,059,899$ 21,933,107$ 21,564,364$ 19,668,302$
Population (1)37,634 36,287 35,162 33,471 32,771
General Expenditures Per
Capita 700$ 691$ 624$ 644$ 600$
(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
-130-
City of Palm Desert
Top 40 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2005
Top 40 Sales & Use Tax Generators (1)Primary Economic
Category Top 40 Sales & Use Tax Generators Primary Economic
Category
COSTCO WHOLESALE DEPARTMENT STORES ARCO AM/PM SERVICE STATIONS
DESERT SPRINGS RESORT & SPA RESTAURANTS T.J.MAXX APPAREL STORES
BEST BUY STORES FURNITURE/APPLIANCE BATH & KITCHEN ELEGANCE FURNITURE/APPLIANCE
ROBINSONS-MAY DEPARTMENT STORE DEPARTMENT STORES BARNES & NOBLE BOOKSTORES MISCELLANEOUS RETAIL
TARGET STORES DEPARTMENT STORES DESERT ELECTRIC SUPPLY BLDG.MATLS-WHSLE
SAKS FIFTH AVENUE DEPARTMENT STORES POOL & ELECTRICAL PRODUCTS BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES TOYS R US MISCELLANEOUS RETAIL
MOBIL SERVICE STATION SERVICE STATIONS TRADER JOE'S FOOD MARKETS
CIRCUIT CITY FURNITURE/APPLIANCE RALPH'S GROCERY FOOD MARKETS
SEARS ROEBUCK & COMPANY DEPARTMENT STORES CONSOLIDATED ELECTRICAL DSTRS. BLDG.MATLS-WHSLE
J C PENNY COMPANY DEPARTMENT STORES USA GASOLINE SERVICE STATIONS
LEGACY HOME FURNISHINGS FURNITURE/APPLIANCE LEEDS JEWELERS MISCELLANEOUS RETAIL
BED BATH & BEYOND MISCELLANEOUS RETAIL OLD NAVY CLOTHING APPAREL STORES
MERVYN'S DEPARTMENT STORE DEPARTMENT STORES SPORTMART RECREATION PRODUCTS
ALBERTSON'S FOOD CENTERS FOOD MARKETS MICHAEL'S ARTS & CRAFTS MISCELLANEOUS RETAIL
TOMMY BAHAMA RESTAURANTS TWEETER FURNITURE/APPLIANCE
DESERT PIPE & SUPPLY BLDG.MATLS-WHSLE PETSMART MISCELLANEOUS RETAIL
MARSALL'S STORES APPAREL STORES MOLLER'S GARDEN CENTER FLORIST/NURSERY
HIGH TECH IRRIGATION BLDG.MATLS-WHSLE CHEVRON SERVICE STATION SERVICE STATIONS
PETE CARLSONS GOLF & TENNIS RECREATION PRODUCTS OFFICE DEPOT OFFICE EQUIPMENT
(1) Listed in Sales Order
Source: Municipal Resource Consultants, In Lieu given to city from State ERAF Property Taxes, City of Palm Desert
* The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged
Sales and Use Tax Trends FY 95/96 - FY 04/05
$5.0$5.5$6.0$6.5$7.0$7.5$8.0$8.5$9.0$9.5$10.0$10.5$11.0$11.5$12.0$12.5$13.0$13.5$14.0$14.5$15.0$15.5$16.0
1995/19961996/19971997/19981998/19991999/20002000/20012001/20022002/20032003/20042004/2005Millions
Amounts
in Millions
% = % Change from Prior Year
2.0%
11.2%
9.0%
6.8%
11.8%
17.6%
8.133 8.942 9.595 10.878 13.204 13.620 13.027 13.463 15.138 15.453
-4.5%
3.1%3.2%
11.1%
-In Lieu *
-131-
City of Palm Desert
FY 2004/2005 and 2003/2004 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency FY 2004/2005 Rate FY 2003/2004 Rate
County General 28.17732700% 28.17732700%
County Free Library 2.728242% 2.728242%
County Structure Fire Protection 5.873086% 5.873086%
City of Palm Desert (1) 0.000000% 0.000000%
Desert Sands Unified School District 36.221587% 36.221587%
Desert Community College 7.526714% 7.526714%
Riverside County Reg. Park & Open Space 0.426231% 0.426231%
Riverside County Office of Education 4.094919% 4.094919%
Desert Hospital 1.996808% 1.996808%
Coachella Valley Public Cemetary 0.339927% 0.339927%
Coachella Valley Recreation & Park 2.071624% 2.071624%
Coachella Valley Mosquito & Vector Control 1.369698% 1.369698%
Coachella Valley County Water 2.736607% 2.736607%
Coachella Valley County Water Imp. District 80 2.972906% 2.972906%
Coachella Valley County Water Storm Water Unit 3.464324% 3.464324%
General Purpose Basic 1% 100.000000% 100.000000%
(1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low
Property Tax Cities.
Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041.
-132-
City of Palm Desert
FY 2004/2005 and 2003/2004 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-014
(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.
28%
3%6%0%
8%4%2%0%
1%3%
3%
3%
2%
0%
37%
County General
County Free Library
County Structure Fire
Protection
City of Palm Desert (1)
Desert Sands Unified
School District
Desert Community
College
Riverside County Reg.
Park & Open Space
Riverside County
Office of Education
Desert Hospital
Coachella Valley Public
Cemetary
Coachella Valley
Recreation & Park
Coachella Valley
Mosquito & Vector
Control
Coachella Valley
County Water
Coachella Valley
County Water Imp.
District 80
Coachella Valley
County Water Storm
Water Unit
-133-
City Of Palm Desert
Historical Net Assessed Taxable Values Citywide
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured: (1)
Land 3,226,913,158 2,725,623,146 2,393,861,647 2,200,864,184$ 1,954,303,380$
Improvements 7,081,665,553 6,205,269,290 5,476,571,513 4,902,119,469 4,362,630,597
Personal Property 28,387,619 20,048,067 23,401,831 23,005,947 21,975,379
Penalty 297,929 163,807 178,761 146,465 321,504
Less Other Exempt (112,719,171) (90,810,742) (67,439,766) (69,912,768) (58,818,186)
Less Home Owner Value (77,508,546) (68,537,556) (64,218,812) (62,213,997) (61,183,329)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 10,147,036,542 8,791,756,012 7,762,355,174 6,994,009,300 6,219,229,345
Unsecured:
Land 1,887 163,788 342,952 406,306 277,839
Improvements 107,046,573 108,722,567 98,447,663 102,802,843 98,997,655
Personal Property 172,418,636 173,683,868 145,295,116 136,519,230 137,417,880
Penalty 4,052,569$ 6,066,692$ 3,905,203$ 3,767,747 5,021,021
Less Other Exempt (6,822,135)$ (6,924,980)$ (9,149,201)$ (10,318,560) (10,802,141)
Total Net Assessed Taxable Unsecured Value 276,697,530 281,711,935 238,841,733 233,177,566 230,912,254
Total Net Assessed Taxable Value 10,423,734,072$ 9,073,467,947$ 8,001,196,907$ 7,227,186,866$ 6,450,141,599$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured: (1)
Land 1,741,543,322$ 1,655,103,018$ 1,628,468,665$ 1,601,710,837$ 1,572,840,288$
Improvements 3,869,968,459 3,600,322,755 3,462,314,634 3,337,986,039 3,302,861,825
Personal Property 27,178,963 24,354,115 21,253,740 18,655,554 27,134,660
Penalty 76,686 253,988 102,904 238,539 474,815
Less Other Exempt (54,607,788) (70,815,494) (69,320,709) (66,750,829) (65,720,948)
Less Home Owner Value (59,688,587) (59,743,660) (59,008,600) (57,997,400) (56,149,600)
Less B Inv. Value 0 0 0
Total Net Assessed Taxable Secured Value 5,524,471,055 5,149,474,722 4,983,810,634 4,833,842,740 4,781,441,040
Unsecured:
Land 293,666 428,124 915,383 732,588 851,747
Improvements 81,516,884 74,972,495 66,958,298 63,637,085 61,927,335
Personal Property 119,224,153 110,194,540 88,974,622 79,548,931 68,477,086
Penalty 1,717,699 2,214,848 2,012,870 1,033,860 2,973,031
Less Other Exempt (6,773,153) (1,975,533) (5,946,570) (4,422,000) (5,268,989)
Total Net Assessed Taxable Unsecured Value 195,979,249 185,834,474 152,914,603 140,530,464 128,960,210
Total Net Assessed Taxable Value 5,720,450,304$ 5,335,309,196$ 5,136,725,237$ 4,974,373,204$ 4,910,401,250$
(1) Secured values includes any state assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
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City Of Palm Desert
Change in Taxable Value
Citywide
Fiscal Year 2004/2005 and 2003/2004
FY 2004/2005 2003/2004 % Change
Secured: (1)
Land 3,226,913,158$ 2,725,623,146$ 15.5%
Improvements 7,081,665,553$ 6,205,269,290$ 12.4%
Personal Property 28,387,619$ 20,048,067$ 29.4%
Penalty 297,929$ 163,807$ 45.0%
Less Other Exempt (112,719,171)$ (90,810,742)$ 19.4%
Less Home Owner Value (77,508,546)$ (68,537,556)$ 11.6%
Total Net Assessed Taxable Secured Value 10,147,036,542 8,791,756,012 13.4%
Unsecured:
Land 1,887$ 163,788$ 98.8%
Improvements 107,046,573$ 108,722,567$ 1.5%
Personal Property 172,418,636$ 173,683,868$ 0.7%
Penalty 4,052,569$ 6,066,692$ 33.2%
Less Other Exempt (6,822,135)$ (6,924,980)$ 1.5%
Total Net Assessed Taxable Unsecured Value 276,697,530 281,711,935 -1.8%
Total Net Assessed Taxable Value 10,423,734,072$ 9,073,467,947$ 13.0%
(1) Secured values includes any state assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
-135-
CITY OF PALM DESERT
ASSESSED VALUE BY ECONOMIC CATEGORY
FY 2004/2005
CATEGORY PARCELS ASSESSED VALUE % NET TAXABLE VALUE (1)%
Residential 22,875 6,259,347,918 65.0% 6,255,607,221 67.2%
Commercial/Industrial 751 999,176,715 10.4% 995,701,005 10.6%
Recreational 146 112,477,506 1.2% 112,477,506 1.2%
Institutional 46 124,976,286 1.3% 83,979,766 0.9%
Vacant Land 1,440 353,599,787 3.7% 352,823,363 3.8%
Exempt 2,349 218,535,183 2.3% - 0.0%
Possessory Interest (1) [54,245] 594,752,252 6.2% 557,297,838 6.0%
Miscellaneous 1,556 646,615,022 6.8% 642,248,045 6.9%
Unsecured (1) [2,883] 288,636,915 3.0% 281,711,935 3.0%
Totals (1) 29,163 9,598,117,584 100% 9,281,846,679 100%
(1) Possessory Interest and Unsecured Parcels not included in Total Parcels (Net Taxable Value equals Estimated Actual Value)
Source: HdL Coren & Cone
Riverside County Assessor 2004/2005 Combined Tax Rolls
-136-
CITY OF PALM DESERT
ASSESSED VALUE BY ECONOMIC CATEGORY
FY 2004/2005
Source: HdL Coren & Cone
Riverside County Assessor 2003/2004 Combined Tax Rolls
Assessement Value
3.7%
3.0%
2.3%
6.2%
6.8%
65.0%1.3%
1.2%
10.4%
Residential
RecreationalCommercial/Industrial
Institutional
Vacant Land
Exempt
Possessory
Interest
Miscellaneous
Unsecured
Net Taxable Value
3.8%
0.9%
3.0%
1.2%
6.9%
10.6%67.2%
6.0%
0.0%
Residential
Commercial/Industrial Recreational
Institutional
Vacant Land
Possessory
Interest
Miscellaneous
Unsecured
Exempt
-137-
City Of Palm Desert
Property Tax Levy and Collections
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Gross Tax Levy 3,768,896 3,080,422 3,273,730 2,603,643$ 2,426,812$
Current Tax Collections(1)(2)(3)(4)3,501,718 3,007,652 2,723,336 2,475,308 2,387,760
Percent of Current Levy Collected 92.9% 97.6% 83.2% 95.1% 98.4%
Total Tax Collections(including
delinquencies)(1)(2)(3)(4)4,003,585 3,369,711 3,078,046 2,725,950 2,466,758
FY 1999/2000 1998/99 1997/98 1996/97 1995/96
Gross Tax Levy 2,391,889$ 2,327,872$ 2,230,201$ 2,137,170$ 1,949,891
Current Tax Collections(1)(2)(3)(4)2,064,974 1,993,999 2,011,099 1,984,516 1,603,693
Percent of Current Levy Collected 86.3% 85.7% 90.2% 92.9% 82.2%
Total Tax Collections(including
delinquencies)(1)(2)(3)(4)2,393,368 2,417,572 2,306,753 2,597,674 1,757,606
(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.
(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
- 138-
Revenue Statistics
Redevelopment Agency
City of Palm Desert, California
-153-
STATE HWY 74
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HOVLEY LN W
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EL PASEO HAYSTACK RD
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STATE HW Y 111 ELDORADO DRFRANK SINATRA DR
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HARRISLN
Project Area No. 2
1987
Project Area No. 4
1993
Project Area No. 1
Added Territory
1982
Project Area No. 3
1991
Project Area No. 1
Original
1975
City Limits
Project Area No. 1 - Original (1975)
Project Area No. 1 - Added Territory (1982)
Project Area No. 2 (1987)
Project Area No. 3 (1991)
Project Area No. 4 (1993)
City of Palm Desert
Redevelopment AgencyProject Are as
0 1 2
Miles
November, 2005
City of Palm Desert
RDA Project Area #1 and 1982 Annex
FY 2004/2005 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $ Cumulative % Business Description
WEA Palm Desert (6) 111,246,161$ 22.6% 800,000 sq. ft. Retail Shopping Mall located at
72840 Highway 111.
Desert Crossing (10) 66,824,744$ 13.6% Major Commercial / Shopping Buildings
Gardens SPE II (2) 53,836,747$ 10.9% Garden's at El Paseo up-scale retail shopping
Center.
Big Horn Development (108) 37,622,032$ 7.6% Recreational / Residential Land Developer
May Department Stores Co (1) 23,778,377$ 4.8% Retail Store in Westfield Mall (Robinson/May)
Federated Western Properties
Inc. (4)20,718,286$ 4.2% Retail Store in Westfield Mall (Macy's)
Dayton Hudson Corp. 20,193,169$ 4.1% Target Discount and Mervyns Retail Stores
KPL Villas 19,477,679$ 4.0% Palm Lake Country Club & Homes(Private)
M & H Realty Partners III 13,853,242$ 2.8% Mix Commercial Buildings Best Buy Shopping
Center
Felcor Suites Limited
Partnership 14,842,961$ 3.0% 198 Suite Hotel
Palm Desert Town Center
Associates (1)13,608,772$ 2.8% Sears Retail (Westfield Mall)
L. Lee Bosley Trust (3) 13,322,970$ 2.7% Residential Land Bighorn Development
Nationwide Health Properties
Inc. (1)11,766,439$ 2.4% Assissted Living Center
One El Paseo (6) 11,175,661$ 2.3% MIx Commercial/Restaurant Buildings El Paseo
West
Time Warner Entertainment (2) 10,409,981$ 2.1% Commercial Shopping Center / C.O.D. College
Town Center Plaza (1) 10,277,233$ 2.1% Comercial Shopping Center-Trader Joe's
JC Penney Properties Inc (3) 9,895,501$ 2.0% Retail Store & Land Westfield Mall (JC Penney)
Bernard Jacques Debonne
Trust (7)9,995,786$ 2.0% Vacant Commercial Land (Village Court)
SKB PTP (3) 9,551,405$ 1.9% Commercial Center Palms to Pines
Ralphs/Washington Mutual
Robert A. Weigel Trust (6) 9,450,124$ 1.9% Commercial Shopping Center & Parking lot
Total Net Assessed Value 491,847,270$ 100%
Source: HdL Coren & Cone and RivRiverside County Assessor 2004/2005 Combined Tax Rolls
-155-
City of Palm Desert
RDA Project Area #2
FY 2004/2005 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $ Cumulative % Business Description
Desert Springs Marriott (85) 217,507,983$ 48.8% Desert Springs resort 895 room Hotel & Golf
Course
Marriott Ownership Resorts Inc
(4360)70,209,185$ 15.7% Time Share Condos/Villas (Shadow Ridge &
Desert Springs Villas)
CNL Hospitality Partners(1) 29,674,017$ 6.66% Marriott Courtyard 151 Room and Residence
Inn 130 Room Hotels
Desert Wells 237 (10) 24,228,045$ 5.43% Vacant Commercial Land
Sanderson J. Ray Desert
Springs Partnership(18)23,870,563$ 5.35% Mixed Use shopping Center (Ralphs/
Walgreens)
Resort Ventures(32) 12,260,557$ 2.75% Commercial Land
American Realty Inc. Trust (8) 11,300,159$ 2.53% Vacant Commercial Land
BNY Western Trust Co.(42) 8,908,576$ 2.00% Golf Course Timeshares Condominiums
Manor Healthcare Corporation
(1)8,502,767$ 1.91% Assissted Living Center
Desert Falls Country Club (6) 7,659,095$ 1.72% Private Golf Course & Homes
Dutt Hospital Group Inc (1) 5,501,966$ 1.23% Hamptonn Inn 88 room Hotel & Suites
Exxon Mobile Corp (2) 3,512,904$ 0.79% Exxon Mobile Service/Gas station
Wells Fargo Bank (14) 3,418,430$ 0.77% Multi Parcel Single Family Homes
SGH Partners (1) 3,116,200$ 0.70% Vacant Commercial Land
Cornerstone Building Joint
Venture (4)3,104,153$ 0.70% Golf Course Timeshares Condominiums
BP West Coast Products (2) 2,954,381$ 0.66% AM/PM Service/Gas Station
Ken P. Miles Trust (1) 2,767,086$ 0.62% Single Family Residence
Joseph D. Preston (1) 2,584,084$ 0.58% Single Family Residence
William M. Kelly Trust (2) 2,374,574$ 0.53% Single Family Residence/Commercial Land
Valley Center Development(1) 2,362,000$ 0.53% Commercial Land - Valley Center Business Park
Total Net Assessed Value 445,816,725$ 100%
Source: HdL Coren & Cone and Riverside County Assessor 2004/2005 Combined Tax Rolls
-156-
City of Palm Desert
RDA Project Area #3
2004/2005 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $ Cumulative % Business Description
PR XIV (1) 30,507,068$ 21.4% Multi Family Dwelling (Canterra Apts & Vacant
land)
Fountains Senior Properties of
California (1)16,730,122$ 11.7% Senior Citizens Assissted Living Center(The
Fountains)
PD Hovley (1) 16,322,297$ 11.4% Residential Property Mgmgt (Hovley Gardens)
Time Warner Entertainment
Advance (2)13,710,974$ 9.6% Cable Operator (Commercial Office Buildings)
SAG Palm Desert (1) 7,880,000$ 5.5% Industrial Storage Facility
Palm Desert Disposal Services
(5)6,071,869$ 4.3% Industrial Business / Commercial Offices
SMG 17 (1) 5,718,808$ 4.0% Commercial / Industrial Offices (Guthey Renker)
GHA Paloma Group II (95) 5,008,399$ 3.5% Residential Builder/Developer (Venezia)
Cook St Office (1) 4,717,093$ 3.3% Business / Commercial Offices (Corner of
Cook/Hovley St)
Delmas Jackson Trust (5) 4,567,277$ 3.2% Industrial Business / Commercial Offices
Waste Management Inc. (2) 3,262,268$ 2.3% Refuse Collection Base / Industrial Offices
Lakeside Properties Inc. (5) 4,309,663$ 3.0% Mix Use Industrial/Commercial Buildings/Stores
Stor N Lock Partners 16 (1) 3,570,021$ 2.5% Storage Facility (Stor-n-Lock)
WR XVIII i (1) 3,417,932$ 2.4% Vacant Commercial Land
Cold Call Cowboy Productions
(2)2,877,828$ 2.0% Industrial / Manufacturing Buildings
St. Charles Partnership (4) 3,235,804$ 2.3% Industrial / Manufacturing Buildings
Gulf California Broadcast Co.
(2)2,217,654$ 1.6% Split Parcel Vacant Commercial Land
We Trust (1) 2,950,000$ 2.1% Industrial Business / Commercial Offices
Bruce Alan Kaplan Trust (1) 2,908,752$ 2.0% Industrial Storage Facility
Melanie Place Partners (1) 2,882,462$ 2.0% Split Parcel Industrial Business / Commercial
Offices
Total Net Assessed Value 142,866,291$ 100%
Source: HdL Coren & Cone and Riverside County Assessor 2004/2005 Combined Tax Rolls
-157-
City of Palm Desert
RDA Project Area #4
2004/2005 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $ Cumulative % Business Description
Ashford Park Holdings (1) 26,742,879$ 22.2% Multi-Family Dwellings (Desert Oasis Apts)
Indian Ridge C.C. Inc.(69) 21,587,886$ 17.9% Indian Ridge Golf Course & Homes (Private)
Cherokee Investment (2) 12,000,000$ 9.9% Storage Facility (Sure Save Storage)
Palm Desert SPE (4) 11,384,104$ 9.4% Multi-Family Dwellings (Palm Desert Apts)
PD Villas on the Green (1) 7,320,900$ 6.1% Multi-Family Dwellings (Villas on th Green,
55+Apts)
Woodhaven Developers Inc.
(13)6,147,879$ 5.1% Woodhaven Golf Course & Homes (Private)
Dahoon Investment Co. Inc.
(22)4,477,206$ 3.7% Palm Desert C.C. Golf Course & Clubhouse
SR Mutual Investment Corp.(6) 4,361,573$ 3.6% Palm Desert Resort Golf Course & Clubhouse
Brittany Royal Palms Limited
Partnership (4)4,049,330$ 3.4% Multi-Family Dwellings (Royal Palms Apts)
Cypress Estates (8) 3,577,501$ 3.0% Single Family Residences
Sandra L. Heming Trust (2) 2,377,399$ 2.0% 2 Single Family Residences (Indian Ridge C.C.)
Avco Financial Services
Southern Cal (78)2,184,000$ 1.8% Multi-Family Dwellings (California Villas) PD
RDA
Keith B. Thomspon (2) 2,167,522$ 1.8% Single Family Residence & Condominium
(Indian Ridge C.C.)
Michael A. Kahn (2) 2,041,649$ 1.7% 2 Single Family Residences (Indian Ridge C.C.)
Mobil Oil Corporation (2) 2,026,023$ 1.7% Mobil Service/Gas Station & Adjacent
Commercial Land
Michael J. Adams (1) 1,803,045$ 1.5% Single Family Residence (Indian Ridge C.C.)
Edward R. Chiuminatta (1) 1,722,213$ 1.4% Single Family Residence (Indian Ridge C.C.)
Leonard Schnitzer Trust (1) 1,678,054$ 1.4% Single Family Residence (Indian Ridge C.C.)
Raymond Gosselin (1) 1,560,071$ 1.3% Multi-Family Dwellings (Sun Dunes Villas)
P. Randall Ziehurt Trust (1) 1,506,612$ 1.2% Single Family Residence (Indian Ridge C.C.)
Total Net Assessed Value 120,715,846$ 100%
Source: HdL Coren & Cone and Riverside County Assessor 2004/2005 Combined Tax Rolls
-158-
City of Palm Desert
Project Area Statistics
June 30, 2005
Description RDA 1
Original
RDA 1 1982
Annex RDA 2 RDA 3 RDA 4
Date Project Area was
Established 07/16/75 11/25/81 07/15/87 07/17/91 07/19/93
Most Recent Amendment
Date 02/27/03 02/27/03 02/27/03 02/26/04 02/26/04
Established Time
Limits:
-Repayment of
Indebtedness 7/16/2026 11/25/2032 7/15/2038 7/17/2042 7/19/2044
-Project Duration 7/16/2016 11/25/2022 7/15/2028 7/17/2032 7/19/2034
-Last Date to incur
indebtedness Repealed Repealed Repealed Repealed Repealed
Debt Limits (1) none 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, O R, I, C, P R, I, C, P
Acreage Size of
Project Area 580 5,240 2,927 764 2,260
R = Residential, C= Commercial, P= Public Facilities, I= Industrial, O= 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
-159-
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2005
PROJECT AREA #1 PROJECT AREA #2
DESCRIPTION
$71,955,000
Tax Allocation
Bonds
$22,070,000
Tax Allocation
Bonds
$19,000,000
Tax Allocation
Bonds
$24,945,000
Tax Allocation
Bonds
$17,310,000
Tax Allocation
Revenue Bonds
$4,090,000
Tax Allocation
Revenue Bonds
$15,745,000
Tax Allocation
Revenue Bonds
Years 25 28 27 21 20 30 30
Bond Issue Date 07/24/97 03/13/02 08/05/03 06/24/04 07/17/02 06/01/95 03/26/03
Final Maturity Date 04/01/23 04/01/30 04/01/30 04/01/25 08/01/22 08/01/25 08/01/33
Highest Interest Rate 5.625% 5.100% 5.000% 5.000% 5.000% 5.20% 5.00%
Bond Issue Amount 71,955,000$ 22,070,000$ 19,000,000$ 24,945,000$ 17,310,000$ 4,090,000$ 15,745,000$
Outstanding Bond Amount 59,540,000$ 22,070,000$ 19,000,000$ 24,450,000$ 16,000,000$ 3,905,000$ 15,745,000$
Call Premium 0 - 2.00% 0 - 2.00% 0.00% 0.00% 0 - 2.00% 0 - 2.00% 1 - 2.00%
Bond Insurer MBIA MBIA MBIA AMBAC MBIA MBIA MBIA
Reserve Requirement (1) 5,126,790 2,804,344 950,000 2,430,750 1,339,150 343,900 769,006
Reserve Balance (1) (1) (1) (1) (1) (1) (1) (1)
Called Bonds 0$ 0$ 0$ 0$ 0$ 0$ 0$
Principal Due 05/06 2,025,000 0 0 855,000 690,000 35,000 0
Interest Due 05/06 3,205,899 1,114,665 950,000 1,123,063 690,188 229,795 769,006
Arbritage Yield Rate 5.4584% 5.2939% 4.8571% 4.7961% 4.7043% 6.0485% 4.9502%
Arbritage-Amount Owed - - - - - - -
Arbritage Five Year Due Date: 04/01/02 04/13/07 08/05/08 06/24/09 07/17/07 06/14/00 03/26/08
PROJECT AREA #3 PROJECT AREA #4 HOUSING FUND
DESCRIPTION
$4,745,000
Tax Allocation
Bonds
$11,020,000
Tax Allocation
Revenue Bonds
$15,695,000
Tax Allocation
Revenue
$48,760,000
Tax Allocation
Revenue Bonds
$6,305,000
Tax Allocation
Revenue Bonds
$12,100,000
Tax Allocation
Revenue Bonds
Years 30 30 30 30 13 30
Bond Issue Date 08/05/03 03/01/98 11/28/01 01/01/98 08/01/95 09/05/02
Final Maturity Date 04/01/33 10/01/28 10/01/31 10/01/27 09/01/08 10/01/31
Highest Interest Rate 5.13% 5.00% 4.80% 5.10% 5.55% 4.90%
Bond Issue Amount 4,745,000$ 11,020,000$ 15,695,000$ 48,760,000$ 6,305,000$ 12,100,000$
Outstanding Bond Amount 4,500,000$ 10,370,000$ 15,235,000$ 45,670,000$ 2,375,000$ 11,625,000$
Call Premium 2.00% 0 - 2.00% 0 - 2.00% 0 - 2.00% 0 - 2.00% 1 - 2.00%
Bond Insurer MBIA MBIA MBIA MBIA MBIA MBIA
Reserve Requirement (1) 297,953 768,020 965,780 3,625,950 630,500 779,250
Reserve Balance (1) (1) (1) (1) (1) 762,971 (1)
Called Bonds 0$ 0$ 0$ 0$ 0$ 0$
Principal Due 05/06 90,000 230,000 170,000 590,000 555,000 245,000
Interest Due 05/06 204,298 520,415 690,825 2,277,410 113,378 521,025
Arbritage Yield Rate 4.9358% 5.2271% 4.9464% 5.1343% 5.2231% 4.8290%
Arbritage-Amount Owed
Arbritage Five Year Due Date: 08/05/08 10/01/02 11/28/06 10/01/02 09/01/04 09/05/07
(1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero.
Source: City of Palm Desert and Redevelopment Agency
-160-
City of Palm Desert
FY 2004/2005 Breakdown of Basic 1% Property Tax Levy Rates
Redevelopment Project Areas
Rate
Taxing Agency RDA 1 Original RDA 1 1982 Annex RDA 2 RDA 3 RDA 4
County General 28.39891082% 28.32317933% 27.0596412% 25.0233013% 21.92521618%
County Library 2.74968243% 2.88908314% 2.9037284% 2.81763140% 2.83042095%
County Fire 5.91924877% 6.21933707% 6.2508566% 6.06552360% 6.09304800%
City of Indian Wells Annex 0.00000000% 0.00000814% 0.00000000% 0.00000000% 0.00000000%
Supervisor Road District 4 0.00000000% 0.00007768% 0.00000000% 0.00000000% 0.00000000%
City of Palm Desert 0.00000000% 2.24088682% 3.67007010% 4.9428936% 8.64579644%
Rancho Mirage Library 0.00000000% 0.01618088% 0.00000000% 0.00000000% 0.00000000%
Rancho Mirage Fire Asmt. 0.00000000% 0.03483260% 0.00000000% 0.00000000% 0.00000000%
Desert Sands Unified School District 36.50631474% 36.85374627% 27.7181829% 37.4084679% 37.57820967%
Palm Springs Unified School District 0.00000000% 0.00000000% 7.8866794% 0.00000000% 0.00000000%
Desert Community College 7.58587528% 8.04974434% 8.0108507% 7.7733361% 7.80862031%
County Superintendent of Schools 4.12710357% 4.37947273% 4.3583137% 4.2290907% 4.24829293%
Riverside County Reg. Park & Open
Space 0.42955731% 0.42956825% 0.4093228% 0.3785101% 0.44219783%
Rancho Mirage Community Service 0.00000000% 0.00000000% 0.00000000% 0.0000000% 0.00000000%
Coachella Valley Public Cemetary 0.34259341% 0.29868698% 0.2601245% 0.3510551% 0.35266039%
Palm Springs Public Cemetary 0.00000000% 0.02983535% 0.0467675% 0.0000000% 0.00000000%
Desert Hospital 2.01249888% 1.33102559% 1.7452476% 0.9259610% 0.00000000%
Coachella Valley Mosquito & Vector
Control 1.38045951% 1.46487454% 1.4577986% 1.4145696% 1.42099925%
Coachella Valley Recreation & Park 2.08790283% 1.82031378% 1.5852876% 2.1394978% 2.14920896%
Coachella Valley Water District 2.75811342% 2.92572740% 2.9126313% 2.8262713% 2.83910411%
Coachella Valley Resource Cons. 2.21018765% 0.02082923% 0.0373406% 0.0313694% 0.03639607%
PDRDA Redevlopment 82 Annex 0.00000000% 0.96176542% 0.0000000% 0.0946893% 0.03576396%
Coachella Valley Water District Storm
Water Unit 3.49155138% 1.71082447% 3.6871567% 3.5778316% 3.59406494%
ERAF RDV 0.00000000% 0.00000000% 0.00000000% 0.00000000% 0.00000000%
General Purpose Basic 1% Rate 100.00000000% 100.00000000% 100.00000000% 100.00000000% 100.00000000%
Source: Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
-161-
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area #1 - Original
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured/Unsecured 7,406,602$ 6,934,754$ 6,503,515$ 6,360,760$ 6,199,196$
Supplemental - PY
Supplemental - CY 200,879 151,075 49,849 104,267 140,667
SBE (Utility)300,931 297,098 288,489 285,323 292,520
Total Gross Increment 7,908,412 7,382,927 6,841,853 6,750,350 6,632,383
Low/Mod Housing Set Aside (1,561,352) (1,455,810) (1,348,011) (1,328,643) (1,305,693)
Tax Increment Less Low/Mod 6,347,059 5,927,117 5,493,842 5,421,707 5,326,690
Total Pass-Throughs (1)(279,854) (316,366) (696,443) (922,984) 0
SB 2557 Charges (101,653) (103,877) (101,797) (107,137) (103,919)
Net Tax Increment Agency (2)5,965,552$ 5,506,874$ 4,695,602$ 4,391,586$ 5,222,771$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured/Unsecured 5,549,207$ 5,484,253$ 5,341,708$ 5,185,911$ 5,098,516$
Supplemental - PY 29 0 205,722 138,806 (2,862)
Supplemental - CY 58,920 0 0 0 65
SBE (Utility)332,579 322,956 331,955 324,173 329,675
Total Gross Increment 5,940,736 5,807,209 5,879,386 5,648,890 5,425,394
Low/Mod Housing Set Aside (1,168,457) (1,161,442) (1,293,465) (1,242,756) (1,193,587)
Tax Increment Less Low/Mod 4,772,279 4,645,767 4,585,921 4,406,134 4,231,807
Total Pass-Throughs (1)0 0 0 0 0
SB 2557 Charges (98,451) (104,485) (62,056) (105,440) (93,751)
Net Tax Increment Agency (2)4,673,828$ 4,541,282$ 4,523,865$ 4,300,694$ 4,138,057$
(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
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
-15.91%
11.75%
Percentage represents change from prior year.
6.92%17.28%8.33%
-162-
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured/Unsecured 27,778,894$ 25,247,194$ 22,967,677$ 19,826,224$ 15,969,365$
Supplemental - PY 0 0 0 0 0
Supplemental - CY 1,502,190 886,454 910,786 2,011,351 1,352,695
SBE (Utility)142,166 144,829 136,296 134,804 138,207
Total Gross Increment 29,423,250 26,278,477 24,014,759 21,972,379 17,460,268
Low/Mod Housing Set Aside (5,811,002) (5,182,761) (4,733,721) (4,330,166) (3,440,490)
Tax Increment Less Low/Mod 23,612,248 21,095,716 19,281,038 17,642,213 14,019,778
Total Pass-Throughs (13,463,639) (11,740,730) (10,523,374) (9,583,446) (7,339,195)
SB 2557 Charges (368,240) (364,672) (346,155) (321,551) (257,820)
Net Tax Increment Agency (1)9,780,369$ 8,990,314$ 8,411,509$ 7,737,217$ 6,422,763$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured/Unsecured 12,683,176$ 11,791,667$ 11,283,027$ 10,962,401$ 10,897,657$
Supplemental - PY 399,222 91,071 37,518 (20,053) 68,683
Supplemental - CY 480,210 0 0 0 10,590
SBE (Utility)152,108 142,885 146,870 135,100 137,394
Total Gross Increment 13,714,716 12,025,622 11,467,415 11,077,448 11,114,324
Low/Mod Housing Set Aside (2,699,974) (2,405,124) (2,293,483) (2,215,490) (2,222,865)
Tax Increment Less Low/Mod 11,014,742 9,620,498 9,173,932 8,861,958 8,891,459
Total Pass-Throughs (4,598,001) (3,966,585) (3,732,310) (3,605,208) (3,617,219)
SB 2557 Charges (214,847) (214,426) (123,390) (219,533) (198,731)
Net Tax Increment Agency (1)6,201,894$ 5,439,487$ 5,318,232$ 5,037,218$ 5,075,509$
(1) Data for SB 2557 Charges is available from FY 1990/91.
(1) Net Tax Increment Agency does not include Debt Service payments.
Sources: City of Palm Desert, Tax Increment Calculations Worksheets & County of Riverside
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Percentage represents change from prior year.
20.47%
3.56%
8.71%
6.88%8.79%
-163-
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured/Unsecured 12,629,958$ 11,717,869$ 10,422,746$ 8,575,348$ 7,816,649$
Supplemental - PY
Supplemental - CY 698,023 812,847 548,517 257,896 391,197
SBE (Utility)23,747 25,689 22,768 22,519 23,088
Total Gross Increment 13,351,728 12,556,405 10,994,031 8,855,763 8,230,934
Low/Mod Housing Set Aside (2,636,969) (2,477,550) (2,167,507) (1,743,454) (1,621,091)
Tax Increment Less Low/Mod 10,714,759 10,078,855 8,826,524 7,112,309 6,609,843
Total Pass-Throughs (5,459,600) (4,683,769) (4,320,158) (3,296,575) (2,790,025)
SB 2557 Charges (166,884) (168,655) (156,494) (138,491) (125,482)
Net Tax Increment Agency (1)5,088,275$ 5,226,431$ 4,349,872$ 3,677,242$ 3,694,336$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured/Unsecured 7,120,210$ 6,330,882$ 5,899,166$ 5,377,930$ 5,017,061$
Supplemental - PY 151,051 312,878 187,627 65,221 74,933
Supplemental - CY 93,861 0 0 5,019
SBE (Utility)25,187 21,385 21,982 16,653 16,936
Total Gross Increment 7,390,309 6,665,145 6,108,774 5,459,805 5,113,949
Low/Mod Housing Set Aside (1,454,141) (1,333,029) (1,221,755) (1,091,961) (1,022,790)
Tax Increment Less Low/Mod 5,936,168 5,332,116 4,887,019 4,367,844 4,091,160
Total Pass-Throughs (2,423,175) (2,152,320) (1,913,246) (1,702,484) (1,586,470)
SB 2557 Charges (119,606) (114,107) (80,229) (70,875) (60,172)
Net Tax Increment Agency (1)3,393,387$ 3,065,689$ 2,893,544$ 2,594,485$ 2,444,518$
(1) Net Tax Increment Agency does not include Debt Service payments.
Sources: City of Palm Desert, Tax Increment Calculations Worksheets
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Percentage represents change from prior year.
-0.46%18.29%8.87%
20.15%-2.64%
-164-
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area #3
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/01
Secured/Unsecured 2,137,750$ 2,040,874$ 1,359,556$ 1,204,009$ 1,028,201$
Supplemental - PY 0
Supplemental - CY 261,674 150,716 79,744 130,497 47,444
SBE (Utility)763 1,001 731 723 742
Total Gross Increment 2,400,187 2,192,591 1,440,031 1,335,229 1,076,387
Low/Mod Housing Set Aside (474,397) (432,653) (283,930) (263,165) (211,984)
Tax Increment Less Low/Mod 1,925,790 1,759,938 1,156,101 1,072,064 864,403
Total Pass-Throughs (1,197,599) (899,766) (448,489) (183,986) (548,192)
SB 2557 Charges (1)(28,204) (29,324) (20,379) (19,405) (16,469)
Net Tax Increment Agency 699,987$ 830,848$ 687,233$ 868,673$ 299,742$
FY 1999/2000 1998/99 1997/98 1996/97 1995/96
Secured/Unsecured 854,991$ 677,494$ 610,197$ 520,342$ 539,001$
Supplemental - PY 1,764 37,064 6,959 31,702 8,546
Supplemental - CY 14,199 0 0 2,857
SBE (Utility)908 538 553 121 123
Total Gross Increment 871,862 715,096 617,709 552,166 550,528
Low/Mod Housing Set Aside (171,507) (143,019) (123,542) (110,433) (110,106)
Tax Increment Less Low/Mod 700,355 572,077 494,167 441,732 440,422
Total Pass-Throughs (519,921) (660,139) (642,855) (77,212) (76,976)
SB 2557 Charges (1)(14,327) (12,181) (7,329) (10,789) (7,856)
Net Tax Increment Agency (2)166,107$ (100,243)$ (156,017)$ 353,731$ 355,591$
(1) Data for SB 2557 Charges is available from FY 1993/94.
Sources: City of Palm Desert, Tax Increment Calculations Worksheets
(2) 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.
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
2004/2005 2003/2004 2002/2003 2001/2002 2000/01
Percentage represents change from prior year.
189.81 %
80.45%
-20.89 %
20.90 %
-15.75 %
-165-
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured/Unsecured 9,017,457$ 8,044,541$ 7,275,223$ 6,205,401$ 4,612,165$
Supplemental - PY 0 0
Supplemental - CY 694,864 318,307 411,994 854,021 829,389
SBE (Utility)2,036 3,641 1,952 1,930 1,979
Total Gross Increment 9,714,357 8,366,489 7,689,169 7,061,353 5,443,533
Low/Mod Housing Set Aside (1,919,081) (1,650,181) (1,516,029) (1,392,274) (1,073,936)
Tax Increment Less Low/Mod 7,795,276 6,716,308 6,173,140 5,669,078 4,369,597
Total Pass-Throughs (5,145,220) (3,569,212) (3,863,556) (3,747,180) (3,640,563)
SB 2557 Charges (1)(118,954) (115,583) (109,024) (99,981) (73,853)
Net Tax Increment Agency 2,531,102$ 3,031,513$ 2,200,560$ 1,821,917$ 655,182$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured/Unsecured 3,293,418$ 1,981,390$ 1,427,671$ 1,102,951$ 1,085,326$
Supplemental - PY 449,268 455,457 80,639 49,662 139,262
Supplemental - CY 578,194 0 0 0 10,592
SBE (Utility)2,117 1,044 1,073 0 0
Total Gross Increment 4,322,997 2,437,892 1,509,383 1,152,613 1,235,180
Low/Mod Housing Set Aside (853,567) (487,578) (301,877) (230,523) (247,036)
Tax Increment Less Low/Mod 3,469,430 1,950,314 1,207,506 922,090 988,144
Total Pass-Throughs (2,856,325) (1,312,022) (811,613) (619,829) (664,019)
SB 2557 Charges (1)(55,164) (35,617) (20,230) (21,723) (14,214)
Net Tax Increment Agency 557,941$ 602,675$ 375,663$ 280,538$ 309,911$
(1) Data for SB 2557 Charges is available from FY 1995/96.
Source: Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Percentage represents change from prior year.
178.08%
17.43%
20.78%
37.76%
-16.51%
-166-
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-167-
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Original
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured: (1)
Land 193,066,855$ 180,571,588$ 175,028,644$ 171,440,095$ 167,254,618$
Improvements 468,555,559 430,563,506 403,984,613 389,716,686 381,168,647
Personal Property 4,909,559 2,970,008 3,290,180 3,824,393 4,621,105
Penalty 0 0 0 2,536 61,938
Less Other Exempt (730,777) (100) 0 0 0
Less Home Owner Value (70,000) (77,000) (75,600) (70,000) (49,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 665,731,196 614,028,002 582,227,837 564,913,710 553,057,308
Unsecured:
Land 156,701 174,128 201,461 229,626 191,925
Improvements 51,133,704 52,581,364 48,916,729 52,533,594 47,281,799
Personal Property 51,093,465 54,158,601 46,472,846 44,331,125 44,847,382
Penalty 0 0 0 1,592,700 2,089,768
Less Other Exempt (39,043) (57,842) (57,121) (58,570) (61,394)
Total Net Assessed Taxable Unsecured Value 102,344,827 106,856,251 95,533,915 98,628,475 94,349,480
Total Net Assessed Taxable Value 768,076,023$ 720,884,253$ 677,761,752$ 663,542,185$ 647,406,788$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured: (1)
Land 157,749,660$ 158,233,158$ 152,360,397$ 162,089,396$ 159,585,014$
Improvements 342,048,525 335,487,546 331,532,883 310,347,856 306,158,845
Personal Property 3,958,876 4,284,839 3,805,452 3,563,026 3,832,650
Penalty 24,969 55,034 7,011 22,855 45,785
Less Other Exempt 0 0 0 0 0
Less Home Owner Value (56,000) (35,000) (28,000) (28,000) (28,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 503,726,030 498,025,577 487,677,743 475,995,133 469,594,294
Unsecured:
Land 211,902 225,314 50,747 47,559 251,002
Improvements 44,481,799 43,198,389 37,357,588 37,898,413 36,344,372
Personal Property 33,234,094 33,519,839 35,834,338 31,172,730 29,870,330
Penalty 735,012 748,851 766,233 585,341 902,426
Less Other Exempt (38,283) (69,264) (58,072) (50,241) (69,094)
Total Net Assessed Taxable Unsecured Value 78,624,524 77,623,129 73,950,834 69,653,802 67,299,036
Total Net Assessed Taxable Value 582,350,554$ 575,648,706$ 561,628,577$ 545,648,935$ 536,893,330$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
-168-
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 1 - Original
2004/2005 versus 2003/2004
FY 2004/2005 2003/2004 % Change
Secured: (1)
Land 193,066,855$ 180,571,588$ 6.9%
Improvements 468,555,559$ 430,563,506$ 8.8%
Personal Property 4,909,559$ 2,970,008$ 65.3%
Penalty 0$ 0$ 0.0%
Less Other Exempt (730,777)$ (100)$ 730677.0%
Less Home Owner Value (70,000)$ (77,000)$ -9.1%
Total Net Assessed Taxable Secured Value 665,731,196$ 614,028,002$ 8.4%
Unsecured:
Land 156,701$ 174,128$ -10.0%
Improvements 51,133,704$ 52,581,364$ -2.8%
Personal Property 51,093,465$ 54,158,601$ -5.7%
Penalty 0$ 0$ 0.0%
Less Other Exempt (39,043)$ (57,842)$ -32.5%
Total Net Assessed Taxable Unsecured Value 102,344,827$ 106,856,251$ -4.2%
Total Net Assessed Taxable Value 768,076,023$ 720,884,253$ 6.5%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
-169-
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured: (1)
Land 1,099,974,404$ 1,037,831,772$ 964,043,115$ 887,797,124$ 746,195,135$
Improvements 2,322,285,503 2,109,457,532 1,966,604,300 1,742,745,364 1,493,036,846
Personal Property 4,080,748 3,722,255 4,822,804 4,009,942 3,266,563
Penalty 0 0 0 31,999 159,145
Less Other Exempt (72,356,678) (50,011,055) (50,251,474) (55,711,920) (47,407,077)
Less Home Owner Value (31,114,156) (30,819,292) (28,898,212) (28,025,997) (27,838,129)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 3,322,869,821 3,070,181,212 2,856,320,533 2,550,846,512 2,167,412,483
Unsecured:
Land 1,449 9,581 135,778 143,855 52,422
Improvements 33,165,394 32,087,933 29,960,052 26,976,720 27,217,181
Personal Property 53,234,502 56,477,588 46,150,607 42,134,507 40,144,238
Penalty 0 0 0 494,612 673,565
Less Other Exempt (6,430,836) (8,791,155) (8,632,424) (9,613,037) (10,316,419)
Total Net Assessed Taxable Unsecured Value 79,970,509 79,783,947 67,614,013 60,136,657 57,770,987
Total Net Assessed Taxable Value 3,402,840,330$ 3,149,965,159$ 2,923,934,546$ 2,610,983,169$ 2,225,183,470$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured: (1)
Land 631,896,282$ 607,328,618$ 598,056,040$ 593,084,678$ 589,033,586$
Improvements 1,292,074,218 1,230,571,559 1,194,367,177 1,169,643,780 1,174,332,339
Personal Property 1,984,406 1,632,328 1,581,739 1,533,185 1,495,546
Penalty 37,717 54,377 26,687 41,966 87,352
Less Other Exempt (46,013,692) (44,781,911) (43,778,024) (43,171,518) (42,783,930)
Less Home Owner Value (27,464,787) (28,135,860) (28,427,000) (28,142,400) (27,488,800)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 1,852,514,144 1,766,669,111 1,721,826,619 1,692,989,691 1,694,676,093
Unsecured:
Land 46,483 169,654 778,001 608,938 591,897
Improvements 20,563,813 15,262,873 14,561,036 14,135,932 10,207,099
Personal Property 29,967,514 26,532,412 23,804,436 20,336,143 16,513,405
Penalty 181,234 592,583 419,541 49,945 837,205
Less Other Exempt (6,335,363) (1,377,178) (5,328,832) (3,957,847) (4,890,796)
Total Net Assessed Taxable Unsecured Value 44,423,681 41,180,344 34,234,182 31,173,111 23,258,810
Total Net Assessed Taxable Value 1,896,937,825$ 1,807,849,455$ 1,756,060,801$ 1,724,162,802$ 1,717,934,903$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
-170-
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 1 - Amended
2004/2005 versus 2003/2004
FY 2004/2005 2003/2004 % Change
Secured: (1)
Land 1,099,974,404$ 1,037,831,772$ 6.0%
Improvements 2,322,285,503$ 2,109,457,532$ 10.1%
Personal Property 4,080,748$ 3,722,255$ 9.6%
Penalty 0$ 0$ 0.0%
Less Other Exempt (72,356,678)$ (50,011,055)$ 44.7%
Less Home Owner Value (31,114,156)$ (30,819,292)$ 1.0%
Total Net Assessed Taxable Secured Value 3,322,869,821$ 3,070,181,212$ 8.2%
Unsecured:
Land 1,449$ 9,581$ -84.9%
Improvements 33,165,394$ 32,087,933$ 3.4%
Personal Property 53,234,502$ 56,477,588$ -5.7%
Penalty 0$ 0$ 0.0%
Less Other Exempt (6,430,836)$ (8,791,155)$ -26.8%
Total Net Assessed Taxable Unsecured Value 79,970,509$ 79,783,947$ 0.2%
Total Net Assessed Taxable Value 3,402,840,330$ 3,149,965,159$ 8.0%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
-171-
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured: (1)
Land 377,500,739$ 338,504,943$ 298,852,366$ 268,700,076$ 254,353,602$
Improvements 964,730,831 915,313,076 830,436,695 675,455,198 615,751,576
Personal Property 8,309,969 7,136,535 7,539,988 6,840,530 6,545,424
Penalty (2)0 0 0 0 0
Less Other Exempt (3,133,357) (2,979,597) (2,823,135) (2,767,781) (1,213,512)
Less Home Owner Value (3,689,000) (3,316,600) (2,853,200) (2,639,000) (2,623,600)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 1,343,719,182 1,254,658,357 1,131,152,714 945,589,023 872,813,490
Unsecured:
Land 0 0 0 0 0
Improvements 3,853,947 4,482,615 2,799,545 2,910,472 2,417,234
Personal Property 13,891,105 11,486,746 7,626,600 8,438,055 5,921,587
Penalty 0 0 0 115,676 46,458
Total Net Assessed Taxable Unsecured Value 17,745,052 15,969,361 10,426,145 11,464,203 8,385,279
Total Net Assessed Taxable Value 1,361,464,234$ 1,270,627,718$ 1,141,578,859$ 957,053,226$ 881,198,769$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured: (1)
Land 241,562,963$ 221,877,005$ 210,387,922$ 197,557,269$ 187,520,043$
Improvements 557,262,592 502,284,327 469,021,627 433,210,966 401,961,850
Personal Property 10,603,177 6,563,588 7,699,828 4,367,066 8,746,222
Penalty (2)75,371 0 0 0
Less Other Exempt (1,189,719) (1,168,077) (1,245,174) (1,222,721) (1,210,397)
Less Home Owner Value (2,522,800) (2,403,800) (2,219,000) (2,023,000) (1,883,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 805,716,213 727,228,414 683,645,203 631,889,580 595,134,718
Unsecured:
Land 0 0 0 0 0
Improvements 1,877,417 1,860,565 2,049,025 1,890,431 1,753,774
Personal Property 3,984,295 4,363,617 4,126,229 4,132,977 5,092,080
Penalty 77,730 57,857 34,546 14,500 0
Total Net Assessed Taxable Unsecured Value 5,939,442 6,282,039 6,209,800 6,037,908 6,845,854
Total Net Assessed Taxable Value 811,655,655$ 733,510,453$ 689,855,003$ 637,927,488$ 601,980,572$
(1) Secured values include State assessed data.
Source: Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
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City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 2
2004/2005 versus 2003/2004
FY 2004/2005 2003/2004 % Change
Secured: (1)
Land 377,500,739$ 338,504,943$ 11.5%
Improvements 964,730,831$ 915,313,076$ 5.4%
Personal Property 8,309,969$ 7,136,535$ 16.4%
Penalty 0$ 0$ 0.0%
Less Other Exempt (3,133,357)$ (2,979,597)$ 5.2%
Less Home Owner Value (3,689,000)$ (3,316,600)$ 11.2%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,343,719,182 1,254,658,357 7.1%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 3,853,947$ 4,482,615$ -14.0%
Personal Property 13,891,105$ 11,486,746$ 20.9%
Penalty 0$ 0$ 0.0%
Total Net Assessed Taxable Unsecured Value 17,745,052 15,969,361 11.1%
Total Net Assessed Taxable Value 1,361,464,234$ 1,270,627,718$ 7.1%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
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City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 3
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured: (1)
Land 91,523,675$ 83,600,129$ 76,423,641$ 70,984,182$ 67,042,691$
Improvements 243,139,587 221,590,995 176,923,362 167,824,429 149,512,375
Personal Property 3,152,374 1,581,880 1,224,360 1,221,819 1,739,556
Penalty 0 0 0 255 40,255
Less Other Exempt (19,430,222) (3,149,364) (2,977,801) (2,868,530) (2,651,190)
Less Home Owner Value (1,974,000) (1,912,400) (1,750,000) (1,687,000) (1,762,600)
Total Net Assessed Taxable Secured Value 316,411,414 301,711,240 249,843,562 235,475,155 213,921,087
Unsecured:
Land 2,138 2,138 2,213 29,325 29,992
Improvements 9,635,015 13,245,112 8,281,641 11,021,570 11,069,151
Personal Property 35,730,772 37,209,995 26,061,080 21,453,363 24,808,691
Penalty 0 0 0 904,695 1,176,179
Less Other Exempt (455,101) (470,220) (459,656) (646,953) (424,328)
Total Net Assessed Taxable Unsecured Value 44,912,824 49,987,025 33,885,278 32,762,000 36,659,685
Total Net Assessed Taxable Value 361,324,238$ 351,698,265$ 283,728,840$ 268,237,155$ 250,580,772$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured: (1)
Land 62,879,457$ 62,465,266$ 62,899,697$ 59,741,591$ 59,492,810$
Improvements 142,889,361 143,323,854 143,172,549 138,853,030 132,659,136
Personal Property 4,247,032 4,474,127 3,388,041 3,899,940 3,703,111
Penalty 0 2,295 2,295 1,036 327,178
Less Other Exempt (2,429,452) (19,068,851) (18,623,087) (16,995,333) (15,980,806)
Less Home Owner Value (1,789,200) (1,807,400) (1,743,000) (1,531,600) (1,370,600)
Total Net Assessed Taxable Secured Value 205,797,198 189,389,291 189,096,495 183,968,664 178,830,829
Unsecured:
Land 31,781 29,656 29,703 30,941 4,307
Improvements 8,832,767 8,843,353 5,998,073 4,335,089 11,413,789
Personal Property 18,345,262 18,062,689 13,493,827 11,759,146 11,054,432
Penalty 625,647 711,922 554,243 186,362 988,033
Less Other Exempt (399,507) (341,825) (372,400) (254,318) (238,603)
Total Net Assessed Taxable Unsecured Value 27,435,950 27,305,795 19,703,446 16,057,220 23,221,958
Total Net Assessed Taxable Value 233,233,148$ 216,695,086$ 208,799,941$ 200,025,884$ 202,052,787$
(1) Secured values include State assessed data.
Source: Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
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City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 3
2005/2005 versus 2003/2004
FY 2004/2005 2003/2004 % Change
Secured: (1)
Land 91,523,675$ 83,600,129$ 9.5%
Improvements 243,139,587$ 221,590,995$ 9.7%
Personal Property 3,152,374$ 1,581,880$ 99.3%
Penalty 0$ 0$ 0.0%
Less Other Exempt (19,430,222)$ (3,149,364)$ 517.0%
Less Home Owner Value (1,974,000)$ (1,912,400)$ 3.2%
Total Net Assessed Taxable Secured Value 316,411,414 301,711,240 4.9%
Unsecured:
Land 2,138$ 2,138$ 0.0%
Improvements 9,635,015$ 13,245,112$ -27.3%
Personal Property 35,730,772$ 37,209,995$ -4.0%
Penalty 0$ 0$ 0.0%
Less Other Exempt (455,101)$ (470,220)$ -3.2%
Total Net Assessed Taxable Unsecured Value 44,912,824 49,987,025 -10.2%
Total Net Assessed Taxable Value 361,324,238$ 351,698,265$ 2.7%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
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City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Secured: (1)
Land 423,136,913$ 387,894,896$ 363,532,124$ 336,601,532$ 295,636,937$
Improvements 1,060,291,261 1,000,472,990 943,610,707 861,691,896 742,772,488
Personal Property 1,039,548 903,523 1,176,104 1,269,934 1,085,189
Penalty (2)0 0 0 91,675 32,666
Less Other Exempt (2,213,136) (2,236,588) (2,005,855) (1,924,780) (1,240,153)
Less Home Owner Value (16,083,200) (16,032,800) (15,162,000) (14,604,800) (14,263,200)
Less B Inv. Value 0 0 0 0
Total Net Assessed Taxable Secured Value 1,466,171,386 1,371,002,021 1,291,151,080 1,183,125,457 1,024,023,927
Unsecured:
Land 0 0 0 0 0
Improvements 2,043,627 1,172,618 1,610,760 1,878,576 2,018,343
Personal Property 4,639,732 3,438,910 6,790,656 8,053,034 8,071,994
Penalty (2)0 0 0 70,495 31,283
Total Net Assessed Taxable Unsecured Value 6,683,359 4,611,528 8,401,416 10,002,105 10,121,620
Total Net Assessed Taxable Value 1,472,854,745$ 1,375,613,549$ 1,299,552,496$ 1,193,127,562$ 1,034,145,547$
FY 1999/2000 1998/1999 1997/1998 1996/1997 1995/1996
Secured: (1)
Land 266,431,690$ 241,556,658$ 239,474,265$ 230,406,034$ 226,816,633$
Improvements 639,902,284 543,450,593 487,317,734 464,373,174 463,671,956
Personal Property 1,130,254 3,312,159 1,030,391 1,304,271 3,679,819
Penalty (2)52,911 52,911 158,682 500
Less Other Exempt (1,125,349) (945,874) (1,106,989) (1,049,518) (967,616)
Less Home Owner Value (13,610,800) (13,367,200) (12,854,800) (12,691,000) (12,355,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 892,728,079 774,059,247 713,913,512 682,501,643 680,846,292
Unsecured:
Land 0 0 41,582 41,582 11,851
Improvements 1,874,135 624,979 923,449 738,984 623,062
Personal Property 8,292,670 1,673,026 2,152,303 1,510,108 1,175,492
Penalty (2)28,376 28,741 73,710 4,000 20,806
Total Net Assessed Taxable Unsecured Value 10,195,181 2,326,746 3,191,044 2,294,674 1,831,211
Total Net Assessed Taxable Value 902,923,260$ 776,385,993$ 717,104,556$ 684,796,317$ 682,677,503$
(1) Secured values include State assessed data.
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City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 4
2004/2005 versus 2003/2004
FY 2004/2005 2003/2004 % Change
Secured: (1)
Land 423,136,913$ 387,894,896$ 9.1%
Improvements 1,060,291,261$ 1,000,472,990$ 6.0%
Personal Property 1,039,548$ 903,523$ 15.1%
Penalty 0$ 0$ 0.0%
Less Other Exempt (2,213,136)$ (2,236,588)$ -1.0%
Less Home Owner Value (16,083,200)$ (16,032,800)$ 0.3%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,466,171,386 1,371,002,021 6.9%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 2,043,627$ 1,172,618$ 74.3%
Personal Property 4,639,732$ 3,438,910$ 34.9%
Penalty 0$ 0$ 0.0%
Total Net Assessed Taxable Unsecured Value 6,683,359 4,611,528 44.9%
Total Net Assessed Taxable Value 1,472,854,745$ 1,375,613,549$ 7.1%
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