HomeMy WebLinkAboutRecieve-File Audited Fiinancial Reports FYE 06/30/06X.
CITY OF PALM DESERT
FINANCE DEPARTMENT
Staff Report
REQUEST: RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED
FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE
30, 2006
DATE: FEBRUARY 8, 2007
CONTENTS: CITY OF PALM DESERT AUDITED FINANCIAL REPORT FOR
FISCAL YEAR ENDED JUNE 30, 2006
Recommendation:
By Minute Motion, that the City Council receive and file the audited
Comprehensive Annual Financial Report (CAFR) for the City of Palm
Desert for the fiscal year ending June 30, 2006.
Background:
Lance, Soli & Lunghard performed and completed the annual independent audit for the
fiscal year ending June 30, 2006, for the City of Palm Desert in September 2006, in
accordance with generally accepted auditing standards. In the auditor's opinion, the
basic financial statements present fairly, in all material respects, the financial position of
the City of Palm Desert as of June 30, 2006, and the results of its operations and the
cash flows of its proprietary funds for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In conducting their audit, the auditors test the City's internal controls. For the year
ended June 30, 2006, the auditors did not issue a management letter for the City of
Palm Desert, indicating that the current City's internal controls are adequate.
The CAFR will be submitted for the Certificate of Achievement for Excellence in
Financial Reporting from the Government Finance Officers Association. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable
and efficiently organized comprehensive annual financial report. This report must
satisfy both generally accepted accounting principles and applicable legal requirements.
We believe that our current comprehensive annual financial report continues to meet
the Certificate of Achievement Program's requirements.
\\Win2k\groups\Finance\Niamh Ortega\Wpdocs\PGibson\Staff Reports\Audit staff reports 2006\audit 2006
CAFR.rtf
Staff Report
Receive and file CAFR for Fiscal Year ended June 30, 2006
February 8, 2007
Page 2 of 2
The Audit, Investment and Finance Committee received the audited financial
statements at their January 23, 2007 meeting, and it was recommended that the
statements for the fiscal year ended June 30, 2006 be received and filed by the City
Council.
PSG:JLE:nmo
Submitted by:
Paul S. Gibson, Director of Finance/City Treasurer
Approved:
Carlos L. Ortega, Manager
CITY COUNCIL ACTION:
APPROVED DENIED
RECEIVED 4 Fi(el OTHER
MEETING DATE --U7 1,.
AYES :_Benson / » er pni er!y /t4el� f�NIJ
NOES: I' one. J
ABSENT: /Voile,
ABSTAIN: Nc, e,
VERIFIED BY: k.btUra
nriginal on File witbJCity Clerk's Office
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COMPREHENSIVE ANNUAL FINANCIAI. REPORT
o�the
CITY OF PAI.M DESERT, CALIFORNIA
For t�e Fiscal Year �nc�ed
JUNE 30, 2006
Pre�ared 6y fhe Financ¢ De�artment
f
City Treasurer/Director o� Finance
Paul S. Gibson
Assistant Finance Director
Jose Luis Espinoza, CPA
Finance sta��
(in alp�►abetical orcler by positions anc� names)
Accountin�Tec�►nician II Business License Tec�nician In�ormation Systems
James Bounds Rob Bis}iop Technician
Accountin�7'ecknician Deputy City Treasurer Troy Kulas
Horacio Celaya T�}►omas Je��rey In�ormation Systems
Accountin��I'ec�nician Director o� In{ormation Tec�nician
5}►aron Christiansen Systems Ray Santos
Accountin��Tec}►nician II Dou�Van Gelder Management Analyst
Diana I.eal G.T.5. �I'ec�nician ,�enny Qarnes
Accountin�Tec}inician II Robert IZiches O��ice Assistant
Barbara Wri�}it G.I.S. Tec}inician Suzanne Cicckini
Administrative Secretary Jo}►n Lirlxov Senior Financial Analyst
Niam� Orte�{a In�ormation Systems Anthony Hernanc�ez
flnalyst Sr. �f�ice l�ssistant
C�ay Von �Iel� Benjatnin Druyon
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� CITY OF PALM DESERT
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� COMPREHENSIVE ANNUAL FINANCIAL.REPORT
, JllNE 30,2006
1 TABLE OF CONTENTS
r Page
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/ INTRODUCTORY SECTION
, Table of Contents i
` Letter of Transmittal vii
, GFOA Certficate of Achievement for Excellence in Financial Reporting bi
List of Principal O�cials �dii
' Organization Chart �av
/ FINANCIAL SECTION
, AUDITORS'REPORT
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' Independent Auditors'Report �
, MANAGEMENT'S DISCUSSION AND ANALYSIS 3 -
1 BASIC FINANCIAL STATEMENTS
1 E�diibit A - Statement of Net Assets 15
' E�Q�ibit B - Statement ofActnrities 16
1
, E�ibit C - Balance Sheet-Govemmental Funds 20
' E�ibit D - Reconci{iation of the Balance Sheet of Govemmental Funds
' to the Statement of Net Assets 23
, E�ibit E - Statement of Revenues,E�enditures and Changes in Fund
, Balances-Govemmental Funds 24
, E�diibit F - Reconciliation of the Statement of Revenues, E�endftures and
Changes in Fund Balances of Govemmental Funds to the
� Statement of Acfivities 26
` E�fiibit G - Statement of Net Assets-Proprietary Funds 27
, E�diibit H - Statement of Revenues, E�enses and Changes in Fund
� Net Assets-Proprietary Funds 28
� E�d�ibit I - Statement of Cash Flows-Proprietary Funds 29
' E�ibit J - Statement of Fiduciary Net Assets-Fiduciary Funds-Agency 30
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, Notes to Basic Financial Statements 31
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Number
REQUIRED SUPPLEMENTARY INFORMA710N
Schedule 1 - Budgetary Comparison Schedule-General Fund 77
Schedule 2 - Budgetary Comparison Schedule-Prop A Fire Tax-
Special Revenue Fund 78
SUPPLEMENTARY SCHEDULES
General Fund
Schedule 3 - Budgetary Comparison Schedule by Department-General Fund 83
Other Govemmental Funds-Combining Statements:
Schedule 4 - Combining Balance Sheet-Other Govemmental Funds 87
Schedule 5 - Combining Statement of Revenues,E�enditures and Changes
in Fund Balances-Other Governmental Funds 88
Other Govemmental Funds-Nonmaior Soecial Revenue:
Schedule 6 - Combining Balance Sheet-Nonmajor Special Revenue Funds 92
Schedule 7 - Combining Statement of Revenues, E�enditures and Changes
in Fund Balances- Nonmajor Special Revenue Funds 96
Schedule 8 - Budgetary Comparison Schedules-Special Revenue Funds:
A. Traffic Safety 100
8. Gas Tax 101
C. Housing Mitigation Fees 102
D. Community Development Block Grant 103
E. Ei Paseo Assessment District 104
F. City-Wide Business License 105
G. Landscape and Lighting Districts No. 1-15 106
Other Govemmental Funds-Nonmaior Ca�ital Service:
Schedule 9- Combining Balance Sheet-Nonmajor Capital Projects Funds 108
Schedule 10- Combining Statement of Revenues, E�enditures and Changes
in Fund Balances-Nonmajor Capital Projects Funds 112
AQencv Funds:
Schedule 11- Combining Balance Sheet-All Agency Funds 118
Schedule 12- Combining Statement of Changes in Assets and
Liabilities-All Agency Funds 120
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r STATtSTICAL SECTION
, Financial Trends
� Net Assets by Component 124
� Changes in NetAssets �25
� Fund Balances of Governmental Funds 126
1 Changes in Fund Ba{ances of Govemmental Funds 127
, Graphs—Changes in Fund Balances of Governmental Funds 128
, Supplemental Historical General Fund Actual Statement of Revenues 130
, Supplemental Graph—Historical General Fund Actual Statement of Revenues 131
, Supplemental Historical General Fund Actual Statement of E�enditures 132
, Supplemental Graph-Historicai General Fund Actual Statement of E�enditures 133
, Supplemental Historical General Revenue and E�end'itures Per Capita 134
, Revenue C�a� citrr
, Assessed Value and Estlmated Actuai Value of Ta�ble Praperty 135
, Historical Net Assessed Taxable Vafues Citywide 136
Supplemental FY 2006 and 2005 Breakdown of Basic 1%Property tax Rate(Not in
, Redevelopment ProjectArea) 137
, Direct and Overlapping Property Tax Rates 138
, Principal Property Ta�ayers 139
, Property Tax Levies and Collections 140
, Supplemental Taxable Sales by Category 141
, Supplemental Top 40 Sales Tax Generators and Graph—Historical Sales Tax Trends 142
, Supplemental Principal Sales Tax Remitters 143
, Debt Gaoacitv
' Ratios of Outstanding Debt by Type 144
Supplemental Special Assessment Information 145
1 Ratios of General Bonded Debt Outstanding 146
/ Direct and Ovenapping Government A�tivities Debt 147
� Legal Debt Margin fnfonnation 148
� Pledged-Revenue Coverage 149
� Demoqra�hic and Economic Information
� Demographic and Economic Statistics 150
, Prirtcipal Employers 159
' Supplemental Miscellaneous Statistics 152
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Qpg�j�,qJnform ation
Full-time Equivalent City Government Employees by FunctioNF'rogram 153
Operating Indicators by FunctionlProg�am 154
Capital Asset Statistics by FunctioNProgram 155
SUPPLEMENTAL REDEVELOPMENT AGENCY STATISTICAL SECTION
Redevelopment Agency Project Area Map 158
FY 2006 Top Twenty Property Ta�ayers
Project Area No. 1 and 1982 Annex 159
Project Area No.2 160
Project Area No. 3 161
Project Area No.4 162
Project Area Sta6stics 163
TaxAllocation Bond Issue Information 164
FY 2005/2006 Breakdown of Basic 1°lo Property Tax Levy Rates 165
Historical Tax Increment 5ummary
Redevelopment Project Area No. 1 —Original 166
Redevelopment ProjectArea No. 1 —Amended 167
Redevefopment ProjectArea No.2 168
Redevelopment Project Area No.3 169
Redevelopment ProjectArea No.4 170
Historical Net Assessed Taxable Values
Redevelopment Project Area No. 1 —Original 171
Change in Tax�able Values
Redevelopment Project Area No. 1 —Original 172
Historical Net Assessed Ta�ble Values
Redevelopment Project Area IVo. 1—Amended 173
Change in Taxable Values
Redevelopment Project Area No. 1 —Amended 174
Historical Net Assessed Taxable Values
Redevelopment ProjectArea No.2 175
Change in Ta�rabfe Values
Redevelopment Project Area No.2 176
Historical Net Assessed Taxable Values
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� Redevelopment Project Area No. 3 177
A Change in Taxable Values
� Redevelopment Project Area No. 3 178
Historical Net Assessed Taxable Values
� Redevelopment Project Area No.4 179
� Change in Taxable Values
w Redevefopment Project Area No.4 180
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73-5
� PALA1 �ESE:R"f, CALIFORNIA 92260-257$
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, � H,�x: 76o 34�-4564
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, November 20, 2006
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� 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, 2006, is submitted herewith. This report was prepared by the City's Finance
� Department. For the fiscal year ended June 30,2Q06, 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�nancial 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.
�
, 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 Off'icers 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 Financiat
� Statements, the Management's Discussion and Analysis (NID&A), the Basic Financial
� Statements, the notes to the financial statements,the Required Supplementary
r Information(RSn, and the non-major supplementary schedules.
� Statistical Section, provides the reader with additional historical financial data and other
� information concerning the City.
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� ;,1YIRMMCiNIN vii
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 20, 2006
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits,the objective is to provide reasanable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
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�nancial statements for fiscal
year ended June 30, 2006, was conducted by Lance, Soll&Lunghazd,LL.P as appointed by the
City Council. The auditor's unqualified("clean") 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 yeaz ended June 30, 2006,provided no instances of material weaknesses in
connection with the internal control structure or significant violations of applicable laws and
regulations.
As recipients of federal, state and county financial resources, the City of Palm Desert is required
to undergo an annual single audit. When applicable, information related to this single audit,
including the schedule of expenditures of federal awards, findings and recommendations and
auditor's reports on the internal control structure and compliance with applicable laws and
regulations aze included in a separately issued report. For the fiscal year ended June 30, 2006, the
City was not required to have a single audit performed.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. NID&A complement this letter of transmittal and should be read in conjunction with
it.
PROFILE OF 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 aze not
limited to bidding and contracting procedures, regulation of pazks, 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
viii
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
November 20, 2006
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 Uni�ed School District elections.
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:
Municinal Services Public Enter�rise 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 &Discretelv Comaonent
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.
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 aze available and that requests are properly authorized prior to being released to
C11Y Of PR � I� UESERi
�ro�imaunniorw� �
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Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council r
November 20, 2006 �
vendors. /
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The adopted budget for fiscal year 2005-2006 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. /
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LOCAL EC NOMY �
The City encompasses an area of approximately 26 square miles. As of January 1,2006, �
according to data provided by the State Department of Finance, the City has a population of �
49,539. 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 Pazk, a 1,200-acre facility containing a �
wide array of plants and animals from desert regions azound 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 pazadise 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.
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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 2.8°b compared to Riverside County, which had a �
rate of 5.1°Io. Our balanced foundation of tourism, culture and education has strengthened the
City's labor force. �
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LONGTERM FINANCIAL PLANNING �
In June 2006, the City Council approved a total of$98.43 million in funding for vazious capital /
improvement projects for the fiscal year of 2006-2007. Projects include tr�c 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 �
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� Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
� November 20, 2006
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� 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.
�
� Certificates of Awards for Outstanding Financial Renorting
�
r The Government Finance Officers Association of the United States and Canada(GFOA) awarded
. a Certi�cate 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, 2005. This was the
� ninth consecutive year that the government has achieved this prestigious award. In order to be
� awarded a CeRi�cate of Achievement, the government had to publish an easily readable and
� efficiently organized comprehensive annual financial report that satisfied 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 the GFOA to determine its eligibility for
another certificate.
�
� Acknowled�nents
• 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 Ciiy 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,
�
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� Carlos L. ega Paul S. Gibson
� City Manager Director of Finance/City Treasurer
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� JLE:jIe
� CI1Y Of PRIf� UESERI
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� `�,��nqooM�:trUlorut�
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Palm Desert, �
,
California �
,
For its Comprehensive Annual �
Financial Report �
for the Fiscal Year Ended �
June 30,2005 �
A Certificate of Achievement for Excellence in Financial �
Reporting is presented by the Govemment Finance Officers �
Associarion of the United States and Canada to
governmcnt units and public employee retirement �
systems whose comprehensive annual financial �
reports(CAFRs)achieve the highest
standards in govenunent accounting �
and financial reporting. �
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`"""" President
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��������� � � �
Executive Director ,
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� CITY OF PALM DESERT
� List of Principal Officials
� as of June 30, 2006
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� City Council - Manager Form of Govemment
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� CTTY COUNCIL
�
� JIM FERGUSON
� Mayor
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� RICHARD S. KELLY
. Mayor Pro-Tempore
� JEAN M. BENSON BUFOR.D A. CRITES ROBERT A. SPIEGEL
� Council Member Council Member Council Member
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� CTTY ADNIINISTRATION
� CARLOS L. ORTEGA
� City Manager
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� City Attorney - Best, Best& Krieger David J. Erwin
. Assistant City Manager for Community Services/City Clerk Sheila S. Gilligan
. Assistant City Manager for Development Services Homer Croy
Assistant City Manager for Redevelopment Agency/Housing Justin McCarthy
r Director of Finance/City Treasurer Paul S. Gibson
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� REDEVELOPMENT AGENCY
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� Ezecutive Director
. CARLOS L. ORTEGA
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� Brandon W.BurroNs
Lance Donald L.Parker
� S'��� & Michael K.Chu
Lu n g h a rd David E.Halc
.i Piofaa/onaf Co�pnrmlon
� LLP Donald G.Slater
Richard K.Klkuchi
� Certified Public Accou►itants Rerired
� Robert C.Lance
191�F199J
Richard C.Soll
� Fred J.Lung6ard,Jr.
1928�1999
�
� INDEPENDENT AUDITORS' REPORT
� To the Honorable Mayor and Membe�s of the Ciry Council
� City of Palm Desert, Califomia
� We have audited the accompanying finandal statements of the governmentaf 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, 2006, which
collectively comprise the City's bas(c financial statements as listed in the table of contents. These
� financial statements are the responsibility of the Ciry of Palm Desert's management. Our responsibility is
r to express opinions on these finandal statements based on our audit
� We conducted our audit in accordance with audi�ng standards generally accepted in the United States of
. America and the standards applicable to flnanaal audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
r perform the audit to obtain reasonable assurance about whether the finanaal statements are free of
material misstatement. An audit includes examining, on a test basis, evfdence supporting the amounts
� and disclosures in the finandal statements. An audlt also includes assessing the accounting principles
� used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
� In our opinion, the financial statements referred to above present fairly, in all material respects, the
� respective financial position of the govemmental acUvi�es, the buslness-type activities, the discretely
� presented component unit, each major fund and the aggregate remaining fund information of the Ciry of
Palm Desert as of June 30, 2006, and the respectfve changes fn financial position and cash flows,where
r applicable thereof for the year then ended in conform)ty with accounting p�inclptes generally accepted in
� the United States of America.
M In accordance with Government Auditing Standards, we have also issued our report dated
September 8, 2006, on our consideratian 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 contrd over
� finandal reporting and compliance and the results of that testing, and not to provide an opinion on the
� internal contrd over flnanaal reporting or on compliance. That report is an integral part of an audit
perfoRned in accordance with Government Auditing Standards and should be consldered in assessing
� the results of our audit.
� The management's discussion and analysls and budgetary comparison information are not a required
� part of the basic finanaal statements but are supplementary informatlon required by the Govemmental
Accounting Standards Board. We have applied ce�tain lim(ted procedures, which consisted principally of
r 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.
r
� 75 YEARS
M
� 1929 2004
� �6 F1k�['�'�KCB 203 N.Brea Blvd.,Suite 203 •Brea,CA 92821-4056 •(714)672-0022 •Fax(714)672-0331 •�yww.lslc aRs.com
�
Lance
�1 6
Lunghard
LLP
CER7/f/E0 PUdUC APCOUNiANIS
To the Honorable Mayor and Members of the Ciry Council
City of Palm Desert, Califiornia
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Ciry's basic financial statements. 7he accompanying introductory section, the combining
and individual fund statements, schedules and statistical tables are presented for purposes of additional
analys(s and are not a required part of the basic flnancial 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 audit(ng procedures applied in the audit of the basic
financial statements and, accordingly, we express no opinion on them.
� �� �-� ���
, ss,��,¢1l�Ct°°Q
G�
September 8,2006
�
�
�
/
� 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, 2006 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 fhe 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
�
r • The City's governmental activities net assets increased $80.10 million, and the net assets of the
business-type activ(ties Increased by$1.15 million.
� • During the year, the City had revenues that were $80.21 million more than the $123.73 million
, expenses recorded by the City in its governmental activities. Compared to the prior year,
revenues were$27.19 million greater than its expenses.
� • In the City's business-type activities, expenses were $1.15 million less than the $8.71 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 $0.85 million.
r • The City's governmental activities program revenues and general revenues increased $73.46
. million, or 56.30 percent from the prior year, while program expenses increased $20.44 million.
• Business-type activities revenues increased by $0.62 million from $8.09 million to $8.71 million.
r Thls was due to increased rounds played at Desert Willow Golf Course and one hundred percent
occupancy at Parkview Office Complex. Expenses increased by$0.32 milllon from the prior year.
� • The revenues available for expenditure were $6.28 million more than budgeted for in the General
. Fund. The City kept expenditures within spending limits by$6.47 million.
� USING THIS ANNUAL REPORT
r This annual report consists of a series of financial statements. The Statement of Net Assets and
� Statement of Activities (on pages 15, 16 and 17) provide information about the activities of the City as a
r 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
r more detail than the government-wide statements by providing information about the Ciry'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
r The Statement of Net Assets and the Statement of Activltles:
� Our analysis of the City as a whole begins on page 15. 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
� liabflities 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.
�
� 3
�
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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 activlties — 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 Ciry 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 th(s 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 CfTY'S MOST SIGNIFICANT FUNDS ,
�
Fund Flnancial 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 modi�ed accrua! accounting,
which measures cash and all other �nancial 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 flnance the City's �
programs. The differences of results in the Governmental Fund financial statements to those in the
Government-Wide �nancial 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 Cit�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 Citys fiduciary activities are reported in separate Statements of �
�
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�
i
� Fiduciary Net Assets. We exclude these activities from the City's other financial statements because the
� City cannot use these assets to finance its operations. The City is responsible for ensuring that the
� assets reported in these funds are used for their intended purposes.
� THE CITY AS A WHOLE
, The City's combined net assets increased $81.25 million from $414.09 million to $495.34 million. A
i separate review of the net change in the governmental and business-type activities depicts two different
r 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.
�
, TABLE 1
� NEf ASSETS
� (IN MILLIONS)
� As of June 30,2006 and 2005
� Govemmental Business Type
� Activities Activities Total
2006 2005 2006 2005 2006 2005
�
� Current and restrided assets $ 342.20 $ 275.55 $ 5.35 $ 3.76 $ 347.55 $ 279.31
Capital assets 390.80 364.20 63.40 64.10 454.20 428.30
�
� TOTAL ASSETS 733.00 639.75 68.75 67.86 801.75 707.61
. Lor�term liabilities
. outstanding 248.99 254.04 0.17 0.51 249.16 254.55
Other liabilities 56.36 38.16 0.89 0.81 57.25 38.97
�
. TOTAL LIABILITIES 305.35 292.20 1.06 1.32 306.41 293.52
� Net assets:
. Invested in capital
� �ts, �t�
related debt 166.23 147.41 63.23 63.59 229.46 211.00
� Restricted 153.34 103.70 - - 153.34 103.70
. Unrestricied 108.08 96.44 4.46 2.95 112.54 99.39
� TOTAL NEf
. ASSETS $ 427.65 $ 347.55 $ 67.69 $ 66.54 $ 495.34 $ 414.09
�
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Table 1 - Graph �
Total Asset 8� Liabilities �
�
900 �
800
700 �
600
Dollars in Millions 400 �
300 ��Total Assets �
100 OTotal Liabilities �
0 �
2006 2005 2006 2005 2006 2005
Govemmental Business-Type Total �
Activities Activities �
r
Compared to the prior year, net assets of the City's governmental activities increased by 23.05 percent, «
or$80.10 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 25.27 percent of the overall total net assets. It increased $11.64 million from �
$96.44 million to $108.08 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 $11.64 million additional �
unrestricted funds that can be used to finance its operations. �
The change in restricted net assets of $49.64 million was due to revenues in the City's capital projects �
funds exceeding their expenditures for the year, the majority coming from the CFD University fund. �
The net assets of the business-type activities saw an increase of $1.15 million, from $66.54 million to �
$67.69 million. During the previous year, the business-type activities recognized a $0.85 million increase.
Both Parkview and Desert Willow Golf Resort recognized a net change in their gross revenues with �
minimal change in the overall expenditures; as a result, 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 and �
new debt service fund for the newly formed CFD University improvement bonds. Additional increase were
the result of the construction of the city's new visitor center, start-up Falcon Crest development, the �
completion of the City's corporation yard, continued work on the Palm Village Apartments, and �
construction of the Portola bridge.
�
Total liabifities increased by $12.89 million. The majority of the increase is due to the City's �
redevelopment agency pass-through agreement liabilities. This liability increased from $24.02 million to
$37.78 million. �
�
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6 �
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w
�r
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�
� TAst�z
� �S�N►�,�5
(IN MLLIONS)
� As of June 30,2006 and 2005
� Govemmental Business^Type
� Adivities Adivibes Total
� 2006 2005 2006 2005 2006 2005
REVENUES:
MProgram Revenues:
. Charges for servioes $ 19.18 $ 12.99 $ 8.30 $ 7.71 $ 27.48 $ 20.70
O�erabn9 9rants arid
� oor�tribtfions 4.93 4.8(l - - 4.93 4.80
r Capital grants and
r oor�tributions 51.78 5.17 0.30 0.34 52.08 5.51
General Fieverx�es:
� Pro�ty taxes 6.16 5.02 - - 6.16 5.02
. Tax inaement 80.15 62.01 - - 80.15 62.01
Sales tax 17.71 15.85 - - 17.71 15.85
• Transierrt occuparx.y tax 8.03 7.72 - - 8.03 7.72
� Other taxes 2.78 6.32 - - 2.78 6.32
. Other reverx�es 7.02 6.36 - - 7.02 6.36
Irnestrrierd eamings 6.20 4.24 0.11 0.04 6.31 4.28
M TOTAL RE1/ENUES 203.94 130.48 8.71 8.09 212.65 138.57
� D�EN.SES:
. General goveRvr�ent 34.36 27.14 - - 34.36 27.14
Pudic safety 21.86 18.74 - - 21.86 18.74
� Public works 13.89 10.43 - - 13.89 10.43
� Parics,reaeabon and culture 4.25 4.04 - - 4.25 4.04
. Pass-tluough�qreerr�rts 36.84 30.19 - - 36.84 30.19
Ir�terest a�lan�term debt 12.53 12.75 - - 12.53 12.75
� Gdf C�ourse-Dese�t Willow - - 6.91 6.64 6.91 6.64
� Offioe Carplex Parkview - - 0.65 0.60 0.65 0.60
� TOTA1.D�ENSES 123.73 103.29 7.56 7.24 131.29 110.53
IPICREASE(DECREA.SE)
� IN PETA.S.SETS 80.21 27.19 1.15 0.85 81.36 28.04
� BEGIMIING PETASSETS 347.55 320.65 66.54 65.69 414.09 386.34
� RESTATENEPff OF NET AS.SETS (0.11) (0.29) - - (0.11) (0.29)
� ENDI NG PET ASSEfS $ 427.65 $ 347.55 $ 67.6'9 $ 66.54 $ 495.34 $ 414.09
�
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7
Table 2-Graph
Changes in Net Assets
y 600 _
0 500 �--�Beginning Net Assets
� 400 —i—Ending Net Assets
c 300 Total Revenues
� 200 �--�—Total Expenses �
0 100
0 � r
2006 2005 2006 2005 2006 2005
Govemmental Activities Business-Type Activities Total
Governmental Activlties
Total revenue increased from $130.48 million to $203.94 million, a 56.30 percent increase. The increase
is the result of a 29.25 percent increase in tax increment and a $46.61 million turnaround in capitaf grants
and contributions, of which $42.98 million was the result of a district forming and the issuing of the bond.
Factors that increased revenues are as follows:
• The increase in property value provided additional tax increment,
• Issuing of bond, and
• Economy remaining strong in the valley's hotel and retail businesses.
Total expenses increased from $103.29 million to $123.73 million. The major factors were an increase in
the cost of general government and pass-through agreements expenses. The increase was due to an
increase in tax increment that results in additional funds that need to be distributed to other agencies. 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)
2006 2005
General Government ($23.21) ($18.12)
Public Safety (1325) (14.66)
Public Works 36.50 3.99
Parks, recreation and culture 1.49 0.64
Pass-Through agreements (36.84) (30.19)
Interest on long term debt (12.53) (12.75)
Total (47.84) ($80.34)
8
2006 2005 � e General Government
Governmental Activities Governmental A�ctivities ■FLblic Safety
Net(Expense) Revenue Net(Expense) Revenue �
O PUblic Works ;
�p% �go�o 160�0 23a�o i ❑Parks, Recreation,and
GLtture
����0 ■Pass-Through agreements
30%
37/o �
�% 29% ° �o�0 50�0 ° ■Interest on bng-term debt
Business-type Activities
Business-type activities revenues increased $0.62 million, a 7.66 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 tenanYs rent at Parkview Office Complex.
Operating expenses for the business-type activities increased from $7.24 million to $7.56 million, an
increase of 4.42 percent. The increase was normal for the business entities and their respective
industries.
THE CITY'S FUNDS
On page 20, the governmental funds balance sheet is shown. The combined fund balance of $276.31
million increased from $228.27 million, or 21.05 percent. This total includes the General Fund balance of
$74.35 million. It increased by $11.05 million from the prior year. The City's General Fund balance has
reserved $26.35 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 increased due to the billing for the City's owned ladder-
truck that was part of the shared cove committees before it disbanded.
• 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 decreased due to the increase in
capital projects for low-income housing.
• The CFD University Fund, this fund was created in the current fiscal year to account for the
construction cost of the district projects.
More detailed information on the fund financial statements balances is presented in the Notes to the
financial statements.
9
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�
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 $50.92 million were $6.28 million more than the �
final budgeted revenues of $44.64 million. The majority of the variance was in the taxes and use of w
money and property categories. Both categories represented $6.80 million of the total variance. Within
the taxes category, property taxes in lieu accounted for $3.13 million of the increase. The City would �
normally get this amount through motor vehicle fee; however, the State of California elected not to charge �
the fee to its users and in return give the City additional property taxes.
�
The General Fund actual ending expenditures of $39.86 million were $6.47 million less than the final �
budget of $46.34 million. There were significant changes in the original budget compared to the final
budget during the year. The original expenditure budget was $42.64 million compared to the final budget �
of$46.34 million, a $3.70 million increase. The major change was the increase of$1.78 million for street �
resurfacing. This was due to the re-appropriations of prior year encumbrances to the fiscal year ending
June 30, 2006. In addition, the City is making a conscience effort to charge project their true cost. In the �
past the General Fund would absorb the professional cost that went into a project. �
CAPITAL ASSET AND DEBT ADMINISTRATION .
Capital Assets �
At the end of 2006, the City had $454.20 million invested in a broad range of capital assets, including A
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 $25.90 �
million, or 6.05 percent over last year.
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� TABLE 3
� CAPITAL ASSETS AT YEAR-END
� (NET OF DEPRECIATION, IN MILLIONS)
� For the y�ears ended June 30,2006 and 2005
�
� Govemmental Business Type
� Activities A�ctivities Totai
� 2006 2005 2006 2005 2006 2005
� Land $ 73.73 $ 72.94 $ 52.50 $ 52.37 $ 126.23 $ 125.31
� Construction in progress 50.87 28.58 - - 50.87 28.58
� Buildings and improvements 69.85 65.22 10.15 10.43 80.00 75.65
� Equipment 2.76 2.05 0.75 1.30 3.51 3.35
Infrastructure 193.59 195.41 - - 193.59 195.41
�
� TOTALS $ 390.80 $ 364.20 $ 63.40 $ 64.10 $ 454.20 $ 428.30
�
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� Table 3-Graph
� Capttal Assets at Year-End
(Net of Depreciation in Millions) -
� 500 ■Land
� 400 � ■Construction in .
� 350 Progress
� O Buildings and
� Dollars in 250 Improvements
� Mlllions 200 ; O Equipment i
� 150
100 i ■Infrastructure
� 50
� � ■TOTALS
2006 2005 2006 2005 2006 2005
� Governmental Business- Total
� Activities Type
�
� This year's major additions included (in millions):
� Visitor Center $ 4.03
* Falcon Crest development 6.23
� Corporation Yard 5.17
Portola Bridge 4.32
� Palm Village Apartments 3.94
� $ 23•69
�
� 11
�
The City's fiscal year 2007 capital budget calls for it to spend an additional $98.43 million plus the
continuing capital projects spending of $62.27 million from prior year, the majority being street
improvement accounting for over$41.70 million, $ 24.96 million in housing projects, $ 1.19 million in park
and recreation projects and $30.58 million in other 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 1 d and Note 5 to the financial statements.
Debt
At year-end, the City's governmental activities had $249.00 million in bonds, notes, contracts, and
compensated absences versus $254.04 million last year, a decrease of$5.04 million, or 1.98 percent as
shown in Table 4. The major contributor to the decrease was the principal payments for the
redevelopment agency revenue bonds.
TABLE 4
OUTSTANDING DEBT,AT YEAR-END
(IN MILLIONS)
For the years ended June 30,2006 and 2005
Govemmental Business Type
Activities Activi6es Total
2006 2005 2006 2005 2006 2005
Compensated absences $ 2.44 $ 1.84 $ - $ - $ 2.44 $ 1.84
Notes payable 0.74 0.86 - - 0.74 0.86
Contract and leases payable - - 0.17 0.51 0.17 0.51
Revenue bonds and notes
(backed by specific tax
and fee revenues) 245.82 251.34 - - 245.82 251.34
TOTALS $ 249.00 $ 254.04 $ 0.17 $ 0.51 $ 249.17 $ 254.55
�� � �
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 $0.34 million from $0.51 million to $0.17 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
current capital lease agreements. Next fiscal year, the City's golf course will have to replace the current
equipment; such as the golf carts, mowers, and other golf course maintenance equipment, resulting in
increase in debt. More detailed information about the City's Iong-term liabilities is presented in Note 6 to
the financial statements.
12
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
In preparing the budget for 2007, 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 2007 budget reflects the increase in energy and fuel.
• 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$5.37
million. Staff salaries and benefits increased due to the annual CPI increase, and the increase 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 Ciry continues to grow with new hotels, commercial and residential development, construction of a
� four-year university, street improvements, park constructfon, and various other projects. The 2007 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
� 2006-2007 financial plan can be obtained by contacting the City's finance department.
r 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 Cit�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.
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� CITY OF PALM DESERT Exhibit A
�
� STATEMENT OF NET ASSETS
S JUNE 30,2006
� Comaonent Unit
Prima Government Palm Desert
� ovemmenta us ness-Type Recreational
� Activities Activities Total Facilities Corp.
Assets:
� Cash and investments $ 228,002,889 $ 5,385,645 $ 233,388,534 $ 118,596
Recefvables:
r Accounts 3,194,518 99,841 3,294,359 39,319
Notes 3,000,000 - 3,000,000 -
� Interest 3,048,776 - 3,048,776 -
� Loans 9,781,392 - 9,781,392 -
Intemal balances 857,992 (857,592) - _
� Prepaid costs 892,589 89,666 982,235 4,076
Inventories 54,505 228,898 283,403 30,543
� Unamortized debt issuance costs 4,833,860 - 4,833,860 -
� Deposits 6,572,306 - 6,5T2,306 -
Due from other governments 11,588,594 - 11,568,594 -
� Property held for resale 25,000 - 25,000 -
Due from component unit 285,000 204,672 489,872 -
� Restricted assets:
� Cash w(th flscal agent 70,284,129 - 70,284,129 -
Capital assets not being depreciated 234,287,056 52,503,366 286,790,422 -
� Capitai assets, net of depreciation 156,512,458 10,900,206 167,412,664 -
� Total Assets 733,001,044 68,754�302 801,755,346 192,534
� LiabiflHes:
� Accounts payable 13,702,885 482,893 14,185,558 48,242
Accrued liabilities 393,787 278,300 672,087 24,351
� Interest payable 3,295,276 - 3,295,276 -
� Unearned revenues 575,462 102,174 677,636 34,250
Deposits payable 608,887 27,723 636,410 -
w Due to primary govemment - - - 489,672
Amounts due under pass-through agreement 37,782,479 - 37,782,479 -
� Noncurrent liabilities:
Due within one year 6,637,707 161,865 6,799,572 -
� Due in more than one year 242,355,852 8,628 242,364,480 -
� Totat Liabilities 305,352,115 1,081,383 308�493,498 596,515
�
Net Assets:
� invested in capital assets,
� net of related debt 166,229,783 63,233,079 229,462,862 -
ResMcted for:
� Special projects 45,109,663 - 45,109,663 -
Capital projects 98,642,360 - 98,842,380 -
� Debt service 9,590,022 - 9,590,022 -
� Unrestricted 108,0T7,101 4,459,840 112,536,941 (403,981)
� Total NetAssets a 427,648,929 S 67,69Z,919 S 495,341,848 $ (403,981)
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� See Notes to FinaSncial Statements
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--_____.�
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� CITY OF PAlM DESERT
STATEMENT OF ACTIVfT1ES
YEAR ENDED JUNE 30,2008
Pragram Revenues
Operating Capital
Charpes for Cont�ibutions ContribuEions
Expenses Services and Grants and Grants
FunationslPrograrns
Primary Government:
Govemmenta{Activfties:
General government $ 34,362,850 $ 8,318,175 $ 301,156 $ 2,536,065
Public safety 21,856,311 8,376,981 225,800 -
Parks, recreation and culture 4,243,119 1,994,163 - 3,742,148
Publicworks 13,894,980 491,179 4,403,164 45,502,048
Pass-through agreement 36,844,061 - - -
Interest on long-term debt 12,526,964 - - -
Total Governmental Activities 123,728,285 19�980,498 4,930,120 51,780,221
Business-Tyge Activitles:
Desert Willow Golf Course . 6,913,517 7,442,330 . - 295,304
Office Complex-Parkview G46,769 884,447 - -
Total Business-Type Activities 7,560,286 8�308,77T 29b,304
Totaf Primary Government S 131,288,571 $ 27�487,275 S 4,930,120 S 52,075,525
�
Component Units:
Palm Desert Recreational Facilitles Corp. $ 2,206,081 a 2,209,800 S - S -
General Revenues:
Taxes:
Propetty taxes, levfed for general purpose
Tax increment
7ransient occupancy taxes
Safes taxes
Franchise taxes
Special assessments collected
Motor vehicfe in Ifeu
Use of money and property
Mlscellaneous
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 financiaf Statements
16
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� Exhibit B
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� Net(Expenses)Revenues and Changes in Net Assets
. Primary Government Component Unit
� Paim Desert
Govemmental Business-Type Recreational
. Activtties Activitles Total Facilities Corp.
�
�
A $ (23,207,454) $ - $ (23,207,454) $ -
� (13,253,530} - (13,253,530) -
1,493,192 - 1,493,192 -
� 36,501,371 - 36,501,371 -
. (36,844,061) - (36,844,061) -
(12,526,964) - (12,526,964)
�
` (47,837,446) - (47,837,446) .
�
� . - 824,117 _ 824,117 -
- 217,678 217,678 -
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, - 1,041,795 1,041,T95 -
. (47,837,446) 1,041,795 (46�795,651) -
�
� - - - 3,719
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� 6,160,690 - 6,160,690 -
� 80,155,858 = 80,155,856 _
8,026,101 8,026,101
r 17,706,526 - 17,706,526 -
2,580,917 - 2,580,917 -
� 11,570 - 11,570 -
, 184,927 - 184,927 -
6,197,595 113,598 6,311,193 -
, 7,U25,216 - 7,025,216 -
� 128,049,198 113,598 128,162,796 -
, 80,211,752 1,155,393 81,367,145 3,719
�
. 347,557,104 86,537,526 414,094,830 (407,700)
r (119,927) - (119,927) -
r $ 427,648,928 $ 8T,692,919 $ 495,341,848 $ (403,981)
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' FUND FINANCIAL STATEMENTS
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CITYOF PALM DESERT �
BALANCE 3HEET �
OOVERNMENTALFUNDS «
JUNE 30,2008
Speclal Revenue Capital ProJecb �
Funds Fund6 �
rop eve opment
Fire Low Inaome CFD Agancy �
c3eneral Tax Housinp Unfversity Capttal Projects
Assets: �
Pooled cash end investrnents $ 50,166,728 $ 1,902,404 $ 21,449,742 3 - $ 13,879,049
Receivables: �
Accounts 1,372.844 900 440 - Z�g �
Notes 3,000,000
Interest 1,208,172 - 208,345 188,538 1,3b1,890 �
Loans 7,737,247 - 2,000,000
Prepaki costs 886,081 - 2,A84 - 18,891
Deposits 1,025 - 8,571,281 �
Due from otfier yovemments 3,434,525 787,351 10,000 - : �
Due from other tunds 957,902 - _ _
Advances to other funds 19,388,480
Inventorias 54,5Q5 - - _ . �
PropeKy held br resale - - 25,000 -
Due from component unit 285.000 - . _ _ �
Restricted assets:
Cash and inv�estrnents with flscal agents - - 1,049,449 41,939,105 20,888,537 �
Total Aasets i a0,404,106 s 2,Q70,Bb5 s 30,4a6,232 S 42�108,643 S 44,617,924 �
LiabtllWs and Fund Balances: �
LiabH'disa: • w
Accounts payable $ 2,840,808 $ 874,499 $ 1,527,492 $ - $ 3,919,b87
Accnled ItabiBtles 245,485 - 12,b23 - 25,893 �
Uneamed revenues 28,607 - 2,138 - 85,928 �
Advances irom other funds - - _ . .
Defsmed revenues 2,938,Ab9 - 20b,127 - .
Amounts due under pass-through agreementa - - - _ _ �
Deposlts payable - - - - 15,000 �
Total Liabllities 8,053,737 574,496 1,74T,Z78 - 4,028,188 �
Fund Balances:
Reaerved: �
Reserved for encumbrances 1,98Q,934 1,273 3,910,016 - 11,383,305
Reservad for inventory 64,605 - - - - �
Reserved for contlnuing approprfatlon 889,899 - 12,824,133 - 13,533,844 �
Reserved for prepaid costs and deposits 895,081 - 4,000 - 8,588,172
Reserved for property held for resale - - 25,000 - - �
Reserved for debf service 2,438,010 - - - -
Reserved for recsivables(notes and loans) 3,000,000 - 7,737,247 - 2,000,000 �
Reserved for advences to other funds 17,311,460 - - - -
Unreserved: �
Unresanred,reported In nonmajor.
Speaal revenue iunds - - - - - �
Capikal projects funda - - -
Designated ior capitel outJay - - - 42,108,843 7,008,817 �
Designated for spedal rewenue purposes - 1,7G4,883 4,137,547 - - �
Desipnated for debt seMce - - - - -
Undeaipnated 48,004,b06 - - - - �
Total Fund Balances 74�350,366 1,7�8,1b8 28,737,964 42,108,843 40,491,738 �
Total Liabilkies and Fund Balancea $ 80,404,106 S 2,870,966 $ 30A86,232 $ 42,108,643 $ 44,61T,924 �
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See Notss to Financtal Stutemerit,s �
20 �
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� Exhibit C
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� Debt Servics
� Funds
�ve pme Other Totsl
Finencinp Agency Governmental Governmental
� Authority Debt 3ervice Funds Funds
� $ - $ 76,375,899 $ 57,604,545 $ 224,271,186
� - 762,818 1,027,342 3,194,518
� " - - 3,000�000
b��9 - 104,4fl2 3,048,770
r - - 44,145 6,781,392
- 7,b83 60 8G2,589
� ' - - 8,572,308
- 7,358,718 11,588,594
� " - - 857,9G2
13,41G,000 32,785,480
� ' - - 54,60b
� - _ _ 25,000
285,000
� 1,181,082 - 5,43b,97d 70,284,129
� S 1,188,401 s 80,t76,198 s 84,892,288 s 368,421,428
�
� 3 8,691 $ - $ 4,533,fl10 $ 13,702,895
� - - 110,108 393,787
- 478,893 575,482
� - 32,785,480 - 32,785.480
- - 1,118,413 4,282,469
� - 37,782,476 - 37,782,47A
� - - 593,887 808,087
� 8,691 T0,887,969 6.Q36,008 00,111,269
�
- - 20,604,718 43,7E8,248
� ' - - b4,505
- 17,241,358 44,389,004
� - 7,683 b0 7,4e4,87b
� 884,890 _ : 25,000
3,102,900
� _ _ - 12,737,247
13,419,000 30,730,480
�
� - - 14,011,797 14,011,797
- - e�880�338 8,880,338
� - - - 49,11b,280
� - � 5,932,430
494,920 9,BOO,B58 10,OOb,579
� - - - 48,004,509
1,1b�,810 6,808,238 78,067.269 278,310,167
� S 1,166�401 S 80,178,1�8 s 84,892,266 s 388,421,428
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» Sae Notes to Financlul 3tatements
� 21
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� CfTY OF PALM DESERT Exhiblt D
R RECONCILIATION OF THE BALANCE SHEET OF�OVERNMENTAL FUNDS
� TO THE STATEMENT OF NET A88ETS
� JUNE 30,2006
� Amourrt,s repoRed for govemme.t►tel act�in the statemer�t of net assets are
. dff�er�ent because:
� Fund balances of govemmental funds $ 276,310,167
. When capital assahs(land, buUdings,equipment)that are to be used In
govemmerifsl adfirities are puchased or constn�cted,the cost of those
� assets are reported as a�erxiitw�es in govemmerrtal funds.However,the
. stateme�of net assets indudes those capkal assets among the asse�.s
of the City as a whole:
� Beginning balarice,net depreciation S 363,376,854
� Prior perbd adjustment (59�626)
Cument year add�bns 36,355,139
� CurreM year deletlons (2,616,745)
. Curt�erA yoar deprectie�tan (8,629,137)
Transfer to intemal service fund (80,301)
� Ending balance,net deprecfatbn 389,370,184
� Long-term debt and oompenseted absences have not been induded
� in the gavemmer�tal funci actNlty.
A . �orx�-tem,debt - (2a5,73s,242)
Bond Premium (819,307)
� Compsnseted abserx�s (2,438,010)
� Irrterest on bng-term debt is not accnred in govemmerrtel funds,but rather
� is reoognized es an expenditu+e when due. (3,295,276)
� Cost of iasuing bonds is reoogNzed as an eapendRure fn the period pa(d;
howev�,in the statement of net asse�s�1s amortrced over tha�fe of the bond. 4,833,860
� Beceuse the focus of govemmental�unds is on short term flna�,some asae4s
. wNl not be avapable to pay for curt+ent-period e�end�ures.Those asaels(for e�aample,
receivables)are of�set by defeRed rev+arwes in the govemmerrtai funciss and,thus,are
� not lncluded in fund balanoe:
� Palm Desert Recreational Facii�ies Corporatbn-r+eiates to the emount
� of rent owed by component und to C�s General Fund. 285,000
Gommunity Devebpment Blodc Grant-reletes to bens gi�ren to bw
� tomoderatelncomefemf�as. 44,145
. Capital reimbursement from dev�eloperfor wak oompleted
by the City on behalF of the devebper. 1,074,288
� {Merest that was rat paid at year-erxi. 477,346
Sales Tax Tn�up f�m the State. 326.740
� Redevebpment Agency land purcf�ase from City. 2,055,000
. 4.262,499
. Irrterrmi servic�funds are used by management ba char+Ae the ooste of oertafn
adlvities,such as equipmerrt,managemerrt and self-insurence b kdfvidual funds.
� The asseRs and liabi{Rres of the intemal servlce funds must be added to the
� Statemertt of n�esseRs. 6.161,054
� Net ussets of gavernmetrtal sctivltles S 42T,848,929
�
M See Notea to Finenciel 8�mairts
�
� 23
�
CITY OF PALM OESERT
STATEMENT OF REVENUES�
EXPENDITURES AND CHANGE3 IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30�2006
5pecial Revenue
Funds
Prop A RDA
Fire Low Income
Genaral Tax Housing
Revenues:
Taxes $ 39,889,104 $ 5,654,039 $ -
Specia{assessrnents colfected - _ _
Ucenses and permits 2,200,513 - _
Intergovemmental revenues 2,374,134 715,247 -
Rental income - - 4,776
Charges for services 1,994,163 - _
�Use of money and property 2,636,050 59,499 713,051
Fines and forfeitures 170,106 - -
Misceflaneous 757,34� 103,593 142,323
Contributlons irom property owners - _ _
Total Rovanues 49.831,410 6.532,3T8 860,750
Expandtturos: � .
Current:
General govemment 12,968,977 - 2,688,441
Pass-through agceement - _ _
Public safety 15,019,337 8,63T,525 -
Parks,recreatlon and culture 3,304,867 - .
Public wotics 6,899,913 - -
Capital outlay 305,273 248,473 15,347,719
Debt senrice:
Principal re6rement - _ _
Interest end flscal charges - _ _
Total Expenditures 38,488,367 6,885,998 1B4O36.160
Excess(Deflciency)of Revenues Over
(Under)Expenditures 11,343,043 (353,620) (17,178,010)
Other Financing Sources(Usesj:
Transfers(n 1,083,589 982,498 15,966,617
Transfers out (1,375,Q4$} - (4,549,247)
Sale of property - - 487,796
Total Other Financins Sources(Usas) (2A1.�59) 982,498 11�905,166
Net Change in Fund Balances 11,051,584 828,878 (5,270,844)
Fund Balances, Beginning ofYear 63,298,784 1,167,278 34,008,798
Fund Batances,End of Year S 74,350,388 S 1,796,156 S 28.737,954
�
See Notes to Ftnancial Statemont�
24
�
Exhibit E
Capital Projects Debt Service
Funds Funds
Redevelopment RDA Redevelopment Other Total
CFD Agency Financing Agency Governmental Governmental
University Cepital ProJects Authority Debt Service Funds Funds
$ - $ - $ - $ 77,023,990 $ 8,926,350 $ 131,303,483
- - - - 269,036 269,036
- - - - 484,902 2,685,415
- - - - 8,006,232 19,095,613
- - - - 4,733,085 4,737,861
- - - - - 1,994,163
298,757 1,500,984 42,841 1,379,054 2,721,480 9,351,716
- - - - 140,762 310,868
- 57,251 - 489,548 920,568 2,470,623
42,979,973 - - - - 42,979,973
43,278,730 1,558.235 42,841 78,892,592 26,202,418 207�198,751
- 9,811,926 - 34,084 9,013,559 34,506,987
- - - 36,844,081 - 36,844,061
- - - - 58,511 21,715,373
- - - - - 3,304,867
1,170,087 - - - 3,033,943 11,103,943
- 5,465,219 - - 13,992,455 35,359,139
- - 5,485,000 122,707 - 5,607,707
- - 12,409,986 1,662,808 - 14,072,572
t,170,087 15,277,145 17,894�966 38,663,458 26,Q98,468 162,514,649
42,108,643 (13,718,910) (17,852,125) 40,229,134 103,947 44,684,102
- 14,432,797 17,339,978 884 419,384 50,225,747
- (5,105,029) (971} (38,099,411) (1,096,041) (50,225,747)
- 2,670,000 - - 202,234 3,360,030
- 11,997,T68 17,339,007 (36,098,527) (474,423) 3,360,030
42,108,643 (1,721,142) (513,118) 2,130,607 (370,478) 48,044,132
- 42,212,880 1,672,928 7,477,632 78,427,735 228,288,035
$ 42,108�643 $ 44,491,738 S 1,159,810 $ 9,608,Z39 g 78,057,259 = 276,310,167
25
�
�
CITY OF PALM qESERT Exhib[t F ~
�
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES !
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS �
TO THE STATEAAENT O� ACTIVtTIES
Y�AR ENDED JUNE 30,2006 �
Amounts reported for g�vernmenta)activities in the statement of activities are different because: �
�
Net change in fund balances-total governmental funds $ 48,044,132 «
Govemmental funds report capital outlays as expenditures;however, in the statement �
of activities, the costs of those assets are allocated over their estimated usefu� lives �
as depreciation expense.This is the amount by which capital outlays exceeded
depreciation in the cu�rent period. 26,113,257 �
Repayment of debt principal is an expenditure in the governmental funds, but the �
repayment reduces long-term IiabiHties in the statemerrt of net assets. 5,607,707 �
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. (213,886) �
Premium on bonds is recognized as interest in the period received; however, �
in the statement of net assets it is amortized over the Iife of the bond. 36,771 �
Some expenses reported in tfie statement of activities do not require the use of �
current flnancfal resources and,therefore,are not reported as expenditures in �
govemmental funds: �
Net change in compensated absences for the current period. (593,533) �
Net change tn accrued intecest for the current period. 60,117 �
Collection of deferred revenues is reported as revenues in govemmental funds and �
thus has the effect o�increasfng hsnd bafances.For the City as a whole,however,the �
collection of these receipts reduces the net assets in the statament of net assets and
does not resutt in revenues in the statement of activfties: �
Deferred loans (5�,567)
Revenues wi11 not be collected within 80 days of the Cit}ts flscaV year-end and,
therefore, are not considered available in the governmental funds:
Rental income due from Palm Desert Recreational Facllities Corporation. (183,000)
Capital reimbursement revenue related to constructfon completed by
the City on behalf to the developer. 367,677
Interest on note issued by the City. �$�75$
Motor vehicle true-up payment from the State. (173,276)
Sales tax true-up from the State. (70,402)
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 jexpenses)of the internal service funds are reported wlth
governmental acfivities. �����997
Chanpe in net assets of governmenta)actfvities S 80,211,752
See Notes to Financial Statements
26
I
I
' CITY OF PALM DESER7 Exhibit G
1
' STATEMENT OF NET ASBETS
PROPRIETARY FUNOS
� JUNE 30,2006
� Businaas-Type Activities
� Enter �ise Funds
a or on- e or Oovernmental
� Fund Fund Total Activities-
Desart Willow O ce omplex Enterprise Internai
� Golf Course Parkview Funds Service Fund
' Assets:
Current:
' Cashandinvestments $ 2,242,886 $ 3,142,759 $ 5,385,645 $ 3,731,724
Receivables:
� Accounts 92,270 7,b71 95,841 -
Prepaid costs 89,361 305 89,866 -
� Inventories 228,898 - 228,898 -
' Dus from PDRFC 204,672 - 204,672 -
' 7otal Current Assets 2,858,087 3,1b0,836 6,008,T22 3,731,724
, Noncurrent;
Capital assets-net of accumulated depreciation 60,198,465 3,205,107 63,403,b72 1,429,330
� Total Noncurrent Assets 60,198,d65 3,205,107 63,403,572 1,429,330
�
Total Assets S 63,Ob6,552 S 8,366,742 s 69,412,294 3 5,161,054
�
LfabSlities and Net Assets:
� Liabilitias:
1 Current
Accounts payable $ 464,060 $ 18,633 $ 482,693 $ -
' Accrued liabilities 278,300 - 278,300 -
Deposite payable - 2�,723 27,723 -
� Unearned revenues 96,543 6,631 102,174 -
Due to other funds 657,992 - 657,992 -
� Capitel leases-current portion 161,665 - 161,865 -
� Totnl Current Liabilitles 1,667,760 82,987 1,710,747 -
� Nor�current;
� Cepital leases payable 8,628 - 8,628 -
� Total Noncurrent Liebilities 8,828 - 8,628 -
� Total Liabllttles 1,686,388 52,987 1�719,3T6 -
� Net Aasats:
' Invested in capitai assets, net of related debt 60,027,972 3,205,107 63,233,079 1,429,330
Unrestricted 1,362,192 3,097,648 4,459,840 3,731,724
' Totel Net Assets 61,390,164 6,302,785 6T.692,919 5,161,054
�
` Total Llabillties and Net Assots S�3�,056'� S 6,3bb�742 s B9,412,294 S 5,1B1,054
�
�
�
�
�
� 3ea Notes to Finencial Statements
t 27
�
�
CITY OF PALM DESERT Exhibit H
STATEMENT OF REVENUES,EXPENSES
AND CHANGE8IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2006
Business-Type Activitles
Enterp�ise Funds
Majo� Non-MaJor Governme�rtal
Fund Fund Totel Activities-
Desert Willow Ofiice Complex Er�terprise Irrternal
Golf Course Parkvlew Funds Service Funds
Operating Revenues:
Feesand rer�tals $ 6,527,154 $ 864,447 $ 7,391,601 $ 411,241
Merchandise sales 915,17fi - 915,176 -
Total Operatls�g Revenues T.442�330 864,44T 8,306,777 411,241
Operating Expenses:
MaiMenance and operations 3,889,855 238,033 4,127,888 -
Cost of inerchandlse 450,876 - 450,876 -
Genera�and adminlstrative 1,671,274 201,255 1,872,529 -
Depreciation and amortization 859,17b 207,481 1,066,656 350,633
Total Operating Expenses 6,871,180 646,789 7,517,949 350,633
Operatir�g Income(Loss} 571,150 217,678 786,828 60,608
Nonoperating Revenues(Expensea):
Interest revenue 19,231 94,367 113,598 105,882
Irderest expense (42,337) - (42,337) -
Total Nonoperating
Revenues(E�enses) (23,108) 94.387 71,261 105,882
Income(Loss)Before Corrtributions 548,044 312,045 860,089 166,490
Capftal Cor�tributlons 295,304 - 295,304 878,5a7
Changes in Net Assets 843,348 312,04b 1,155,393 1,044,997
Net Assets:
Beginning of Fiscal Year 60,546,816 5,990,710 66,537,526 4,116,057
End of Fiscal Year S 61,390�164 S 8,302,755 = 67,892,919 S 5,161,064
See Notes to Financial Statemerrts
28
�
�
r CITY OF PALM DESERT Exhibit I
r
r STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
� YEAR ENDED JUNE 30.2006
� Business-Type Activfties
� __ Enterprise Funds
Major Non-Major Govemmerrtal
r Fund Fund Total Aotivities-
� Desert Wilbw 0/fice Complex Enterpriae Internal
OoM Course ParkWew Funds Servlce Funds
� Cash Flows From Operattng Acthdties:
� Receipts from customers $ 7,414,155 $ 897,041 $ 8,311,196 $ -
� Payments to suppliers (5,955,639) (313,686) (6,269,325) -
Intema!activity-payments to other funds (51,610) (126,552) (178,162) _
� Receipts from interfund services - - - 411,241
� Net Cash Provided(Used)by Operating Activitles 1,406,906 458,803 1,863�709 411,241
� Cash Flows From Capital and Related
� Financing Activfties:
Purchases of capital assets (41,506) (35,048) (76,552
� Principal paid on leases (339,263) - (339,263) ���473)
{nterest paid on leases (42,337) (42,337)
. - -
. Net Cash Provided(Used)by Capital and
Related Financing Activitles (423,106) (35,046) (458.182) (6B,473)
• Cash Flows From invest[ng Activttles:
� Interest and divldends 19,231 94,367 113,598 105,882
i Net Cash Provided(Used)by Investing Activities 18,231 84,387 113,598 105,882
�
Net Increase(Decrease)in Cash and
� Cash Equivalents 1,003,031 516,124 1,519,155 446,650
� Cash and Cash Equfvalents-8eginning of Year 1,239,855 2,626,635 3,866,490 3,283,074
• Cash and Cash Equivalents-End of Year S 2�242,886 S 3�142,759 S 5,385,645 S 3,731,724
�
Reconctliatlon of Operatinp Income(Lass)to Net
� Cash Provided(Used)by Operating Activlties:
� Operatlng income(loss) $ 571,150 $ 217,678 788,828� $ 60,608
Ad)ustments to reconcile operating income(loss)
� to net cash provided(used)by operating activities:
r DepreciaUon and amo�tizatlon expense 859,175 207,481 1,066,656 350,633
Changes in assets and IiabiliHes:
. Receivables,net (67,948) 31,422 (36,526) -
Prepaids and depos(ts (3,478) 35 (3,443) -
� inventory (36,703) - (36,703) -
. Accounts,accrued liabil�ies and deposits
payables 100,149 (988) 98,163 -
. Uneamed revenue (15,439) 1,173 (14,266) -
� Net Cash Provlded(Used)by Operating Activities S 1,406�906 $ 458.803 S 1,863,709 S 411,241
• Noncash ftems induded$295,304 and$678,507(net vafue)of capftal assets contributed by the Cfty of Paim Desert to Desert
� Willow Golf Course and the intemal servlce fund,respecUvely. Of the$878,507(net value),$818,206 represents capital
. contributions by Cove Communides Service Commission.
�
� See Notes to Financtal Statements
� 29
CITY OF PAI.M DESERT Exhlbit J
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS—AGENCY
JUNE 30,2006
Assets:
Cash and investments $ 10,838,005 +
Receivabies(net of allowance for uncollectibles): i
Accounts 73,274,012
fnterest 50,315 1
Restricted Assets:
Cash with fiscal agent 14,332,730 �
i
Total Assets � 98,495,062
I
1
liabllities: �
Deposits - $ 98,495,062 �
Total Liabfiities S 98,495,062 �
1
� - 1
1
1
1
1
1
1
f
1
1
1
1
1
1
1
1
�
�
•
•
�
See Notes to Financial Statements
/
30 �
r
�
��
.
.
�l`�
�
r
�
►
e CtTY OF PALM DESERT
�
NOTES TO BASIC FINANCIAL STATEMENTS
� JUNE 30,2006
�
� Note 1: Summary of Signiflcant Accounting Policies
� a. Descrfption 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 govemment and
provides the following services: public safety (police and fire), highways and streets,
` santtation, public improvements, community developme�t(planning, building and zoning)
' and general administrative services.
' The City has deflned its reporting entity in accordance with accounUng principles generally
accepted in the United States of America which provides guidance for determining which
� govemmental ac�vities, organizations and functions should be included in the reporting
! entlty. The Baslc Financial Statements presenl information on the activifies of the
reporting entity, which inGude the City of Palm Desert (the primary government) and lts
� component units,entities for which the govemment is considered financiafly accountable.
� Accounting principles genecally 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 crite�ia were used in determination of blended component units:
� appolntment of the goveming board and flscal dependenca. Although legally separate
entities, blended component units are, in substance, part of the Citys operations.
r Therefore, they are reported as part of the primary govemment. 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 descrlp�ons of legally separate component units for which the City is
financfally accountable that are blended with the Primary Govemment. The goveming
� bodies of these component units are substanUally the same as the City.
� The Palm Desert Redevelopment Agency (Agency) was estabiished
� October 24, 1974, pursuant to Calffornia Health and Safety Code Sec6on 33000
' entiUed "Communtty Redevetopment Law." The purpose of the Agency is to prepare
and execute plans for the impravement, rehabllitation and redevelopment of blightsd
' areas within the limits of the City. The Agency's transactions are reported in the
govemmental fund financlal statements as speGal revenue, debt service, and capital
� projects funds.
� The Palm Desert Housing Authocity (Hausing Authorfty)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
� govemmental fund flnancial statements under other gavemmental furxis.
� The City Council of Palm Deserf is the goveming body for the Agency and Housing
r Authority.
�
�
r
� 31
�
�
r
City of Palm Desert �
Notes to Financial Statements(Continued) �
�
Note 1: Summary of 8ignificant Accounting Policies�Continued) M
The Palm Desert Financing Authority (Finanang Authority) was formed on �
January 26, 1989. The purpose of the Financing Autho�ity is to issue debt and loan �
the proceeds to the City and Agency. The Financing Au#ho�tty's capital ralated
transactions are reported in the govemmental fund financial statements in the capital �
projects funds, and the collectfon of assessments and payments of debt service is �
recorded in the fiduciary funds.
The flnancial 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 Recreatfonal 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 Wiilow Golf Course in Palm Dese�f, �
Califomia.The Board of Directors of the Corporation appoints an executive director to «
administer operations.
�
The Corporation is in a separate column to ernphasize that it is legally separate from �
the City and is financially accountable to the City. The two-member board goveming
the Corporatfon is appointed by the City Councii, and the City has authority to controi - �
the Corpora6on's budget. «
Complete financial statements of the Component Untit can be obtained from the City's �
adminishative offices.
r
b. Basis of Presentation �
Govemment-Wide Financial Statements ,
The govemment-wide financlal statements (i.e., the statement of net assets and the �
statement of activiGes) report informaUon on all of the nonfiduciary activities of the
primary govemment and its component units.For the most part,the effect af interfund �
acUvity has been removed from these statements. Govemmental activities, which «
normally are supported by taxes and intergovemmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and �
charges for support. Likewise, the primary govemment is reported separately from ,
certain legally separate component units for which the primary govemment is
financiaNy accountabie. �
The statement ot activitiss demonstrates the degree to which the direct and indirect �
expenses of a given function or segment are otfset by program revenues. Dfrect �
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
operationaV or capital requirements of a particular function or segment. Taxes and �
otY+er items not properly included among program revenues are reported instead as
general revenues. Expes�ses seported fos functiona4 activities include afVocated �
indirect expenses. �
�
�
�
32 �
�
w
�
� City of Patm Desert
� Notes to Financial Statements(Continued)
, Note 1: Summary of Signfficant Accounting Pollcfes(Contlnued)
�
, Separate financiel stataments are provided for govemmental funds, proprietary funds
and fiduciary funds, eve� though the latter are excluded from the govemment-wide
1 financial statements. Major individual governmental funds and major individual
, enterprise funds are reported as separate columns in the fund financial statements.
, Fund Financial Statements
� The accounting system �f the Cily is organized and operated on the basis of separate
, funds, each of which is considered to be a separate accounting entiry. Each fund is
accounted for by providing a sepacate set of self-balancing accounis that constftute fts
, assets, liabilities, fund equity, revenues and sxpend(tures/expenses. Funds are
organized into th�ee major categories: govemmental, propriatary and fiduciary. An
� emphasis is placed on major funds withfn the govemmental and proprietary
, categories.A fund is cons(dered major If it is the prlmary operafion fund of the City or
meets the following criteria:
, a. To1af assets, liabi(ities, revenues or expenditures/expenses of that individual
/ governmental or enterprise fund are at leasi 10%of the corresponding total for all
, funds of that category or type; and
1 b. Total assets, liabilities, revenues or expenditures/expenses of the individual
governmental fund or enterpriae fund are at least 5% of the corresponding total .
� for all governmental and enterprise funds combined.
, c. The govemment has determined that a fund is important to the financial
� statement user.
� The funds of the finanaai reporting entity a�e described below:
, Govemmental Fund Types
�
, . General Fund-The General Fund is the general operabng fund of the Clty, it is used
to account for all financlal resources except those required to be accounted for in
� another Pund.
� • Soecial Revenue Funds -Special Revenue Funds are used to accoant for the
. proceeds of specific revenue resources(ather than mayor capital projeets)that are
. legally restricted to expenditures for specified purposes.
. . pebt Service Funds-Debt Service Funds are used to account for the accumuiation of
resources for, and the payment of, generat long-term obligation principal, interest and
� related costs.
� • Cauital Proiects Funds-Capitai Projects Funds are used to account for financial
. resources to be used for the acquislfion or construction of majar capital facilities.
� Proprietary Fund Types
� . En erarise Funds - The Enterprise Funds account for operations that are financed
� and operated in a manner similar to prlvate business enterprises, where the Intent of
. the City Council is that the costs(expenses including deprecla�on)of providing goods
and services to the general public on a con6nuing basis be financed or recovered
� primarily through user charges.
�
�
33
`
`
`
City of Palm Desert
Notes to Financial Statements (Continued) �
r
Note 1: Summary of Significant Accounting Policies(Continued) ,
The Primary Government's Enterprise funds consist of the Parkview O�ce Complex �
and the Desert Wfllow Golf Course, which are operated by a management company. ,
The Component Unit's Enterprise fund consists of the Palm Desert Recreational
Facilities Corporation. �
• Intema{ Service Funds-The Internal Service Fund accounts for financiai 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
�
• Aaencv 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 dist�icYs property owners. These deposits are reduced ,
by payments and/or refunds to individuals or entities at some future time. The City's
Retiree Seniice Stipend Fund is used to eccount for assets held to pay for the retiree �
seroice stipend. Agency funds are custodfal in nature and do not involve ,
measurement of results of operations.
The major funds are as follows: ,
. • . �
Govemmental Funds
�
• The General FuRd is the generat 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 Proa A Fire Tax Special Revenue Fund is used to account for all revenues !
derived from tax coliected within the City for upgradfng fire protectlon and prevention.
its use is restricted to obtafning, fumishing, operating and maintaining fire �
protectionand prevention services(currently under contract with Riverside County Fire �
Departrnent)equipment or apparatus.
• The RDA Low Income Housing Saecial Revenue Fund is used to account for the tax ,
increment set aside to be spent on projects that benefit low and moderate income �
famifies. ,
• The CFD Universitv Capltal Pr�iects Fund is used to account for the construction of �
public improvement ftom proceeds resulting from the creation of this District. ,
• The Redeveloament Aqencv Ca�ital Proiects Fund is used to account for the fiscal �
ac�tivldes of the Palm Desert Redevelopment Agency.
�
• The Redevelooment Aqencv Financinsa Authoritv Debt Service Fund is used to I
account for the resources and payment of the debt issued by the Palm Desert
Financing Authority and ioaned to the Redevelopment Agency. �
• The Redevelopment Aaencv Debt Senrice Fund Is used to account for resources and �
payments of debt fssued by the Redevelopment Agency. ,
�
�
�
�
34 �
�
�
�
� City of Palm Desert
� Notes to Financfal Statements(Continued)
�
. Note 1: Summary of Signfficant Accounting Poltcies(Continued)
, Proprietary Fund
� • The Desert Willow Golf Course �und is used to account for the fees coliected and
, expenses incurred in connecfion with operating the municipal golf course in the City of
Palm Desert.
�
, c. Msasurement Focus and Basis of Accounting
, Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are
� recorded regardless of the measurement focus applied.
� Measurement Focus
• On the.government-wide Statement of Net Assets and the Statement of Activities,
� both govemmental and business-tike activities are presented using the economic
, resources measurernent focus. The accounting objectives of the economic
measurement focus are the determination of opera�ng income, changes In net assets
� (oc cost recovery),financial position and cash flows. All assets and liabilities(whether
. current or noncurrent)associated with their activities are reported.
. • � In the fund financlal statements, the "current finar�cial resources"measurement focus
or the"economic resources"measurement focus is used as appropriate:
�
, 1. All govemmental funds utiffze a "currer�t fr�ar�cFa!resources"rrteas�rement focus.
Only current financial assets and liabll(ties are generally included on their balance
. sheets. Their operating statements present sources and uses of avallable
spendable financial resources du�ing a given period. These funds use fund
/ balance as their measure of available spendable financial resources at the end of
� the period.
' 2. The proprietary fund utillzes an "economic resources" measurement focus.
� Proprietaiy fund equity is cfassified as net assets.
, 3. Agency funds are noi involved in the measurement of results of operations;
therefore,measurement focus is not applicable to them.
�
. Basis of AccounHng
, In the govemment-wide Statement of Net Assets and Statement of Activlties, both
govemmental and business-like activlties are presented using the accrual basis of
/ accounHng. Under the accrual basis of accounbng, revenues are recognized when
, eamed and expenses are recorded when the liabflity is incuRed or ecanomic asset
used. Revenues, expenses, gains, losses, assets and liabilities resulang from
, exchange and exchange-like transactions are recognized when the exchange takes
. place.
, In the fund financial statements, govemmental funds are presented on the modified
accrual basis of accounting. Under this modified accruat basis of accounting,
� reverwes are recognized when "measurable and available". Measurable means
knowing or befng able to reasonably estimate the amount.Available means collectible
1 within the current period or soon enough thereafter to pay current liabilities.
1
�
�
� 35
/
1
1
1
City of Pafm Desert
Notes to Financial Statements(Continued) �
1
Note 1: Summary of Signiflcant Accounting Policies(Continued) �
Revenues that are suscepdble to accrual include property taxes and speaal �
assessments that are levied for and due for the flscal year and collected within '
60 days after year-end. Licenses, permits, fines, forfeits, charges for services and
miscellaneous revenues are recorded as govemmental fund type revenues when '
received in cash because they are not generally measurable untll actually received.
Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the �
accounting period in which they became both measurable and availabls to finance '
expenditures af the fiscal period.Grant funds and refmbursements of expenses under
contractual agreements are reported in govemmental fund types and are recorded as �
a receivable when eamed rather than when suscep�bie to accrual. Generally this
occurs when authorized e�enditures are made under the grant program or �
contractual agreement. Expenditures are recognized when the fund liabllity is ,
lncurred, if ineasurable, except for unmatured interest on (ong-term debf, which is
recognlzed when due. �
Interfund activlty in the amount of$4,186,247, has been eliminated from the general �
govemment function for the govemment-wide flnandal statements except for charges '
between the govemment's Desert Willow Golf Course and Parkview Office Complex
funds and various other func�ons of the govemment. Elimination of these charges �
would diston the direct costs and program revenues for the various functions '
consfdered.
The accrual basis of accounting fs followed by the proprietary fund and fiduciary ,
funds. Under the accrual basis of accounting, revenues are recognized when eamed �
and expenses are recorded when the liabifity is incurred or economic assets are '
used.
Proprietary funds distinguish operatlng revenues and expenses from nonoperating '
items. Operating revenues and expenses generally result from providing goods and �
services ln connectlon with a proprietary fund's principal ongoing operations. The '
principal revenue of the Desert W illow Golf Course and Parkview Office Complex
Enterprise Funds are charges to customers for use of the golf course and rentat fees. �
Operating expenses for enterprise funds include the cost of sales and services,
adminlstrative expenses and depreclation on capital assets. All revenues and �
expenses not meeting this deflnition are reported as nonopera�ng revenues and '
expenses.
�
Private-sector standards of accountlng and flnancial reporting issued prior to
December 1989, generally are followed in both the govemment-wlde and proprletary �
fund flnancial statements to the extent that those standards do not conflict with or '
contradict gufdance of the Govemmental Accounting Standards Board. Govemments
also have the option of following eubsequent private-sector guidance for their �
business-type activlties and enterprise funds, subject to this same limitation, The !
government has elected not to fallow subsequent private-sector guidance.
When both resMcted and unrestricted resources are available for use, it is the '
govemmenYs policy to use restricted resources first, and then unrestricted resources �
as they are needed. �
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36 �
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� City of Palm Desert
� Notes to Financfal Statements(Continued)
I
Note 1: Summary of Significant Accounting Policies(Continued)
1
� d. Capltal Assets and Depreciation
1 Capitaf assets, which indude property, plant, equipment and infrastructure assets
' (e.g., roads, traffic signals, drainage systems and similar items), are reported in the
applicable govemmenta{ or business-type activities column in the govemment-wide
� financial statements.Capitai 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 historicai cost if purchased or constructed. Donated capital
' assets are recorded et estimated fair market value at the date of donation.
� In accordance with GASB Statement No. 34, the City has reported general infrastructure
t assets acquired in prior and current years.
t The cost of normal maintenance and repairs that do nof add to the value of the asset or
materially extend asset lives are not capitalized.
�
Property, plant and equipment of the p�imary govemment, as weli as the component •
� units, are depreciated using the straight-line method over the following estimated useful
t lives:
� Assets Years
� Buildings 40 . .
� imprvvemerrts otherthan buildings 20
Mac:hinery and equipmerrt 5-8
� Infrastrticture 20-75
` e. Budget and Budgetary Accounting
�
' The City uses the following procedures in estabiishing the budgetary data reported in the
financial statements:
1
' 1. Before the beginning of the fiscal year,the City Manager submits to the City Council a
proposed budget for the year commencing the foliowing July 1.
, 2. Public hearings are conducted to obtain taxpayer comments.
1
, 3. The budget is subsequently adopted through passage of a resolution.
, 4. Expenditures for the General Fund cannot exceed amounts budgeted at the
, departmental tevel,which is the legai levei of control.
, �or 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
, approp�iations (without council approval) between an object of a General Fund
, Department. The City Councll approves all other changes. Annual appropriation
amounts lapse at year-end.
, 5. Encumbrances and continuing appropria6ons are rebudgeted as of July 1,by Council
� action.
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City of Paim Desert
NoEes to Financial Statements(Continued}
Note 1: Summary of Significant Accounting Policies(Continued)
6. Annual budgets are adopted on a basis consistent with accounting principles
generally accepted in the United States of America for all govemmental 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 effecdvely budgetary
control is achieved through debt indentu�e provisions. The following special revenue
funds had legally adopted budgets during the current fiscal year:
. Prop A Fire Tax
• Traffic Safety
• Gas Tax
• Housing Mitigatfon Fees
• Community Development Slock Grant
• EI Paseo Assessment District
• City-Wide Business License
• Landscape and Lighting Districts No. 1 -15
f. Apprap�iations Lim�t
Under Article XIII-B of the Califomia Cons�tution(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 aliowed appropriations, the excess must either be
refunded to the State Controller or retumed to the taxpayers through revised tax rates,
revised fee schedules or other refund arrangements. For the fiscal year ended
June 30, 2006, proceeds of taxes did not exceed appropriaUons.
g. Inveshnents
Vnvestments are stated at fair value (quoted market price or the best availabfe estimate
thereo�.
h. Cash and Investments
For purposes of the statement of cash flows, the City has defined cash a�d investments
to inGude cash on hand, demand deposits, investments heid in various instruments, and
investments held In fhe Califomia Locaf Agency Investment Fund (LA{F) and Califomia
Asset Management Program (CAMP). '
� i. Employee Compensated Absences
It is the govemmenYs policy to permit employees to accumulate eamed but unused
vacation and sick leave(compensated absences). Vaca6on pay and sick leave,which are
expected to be liquidated with expendable available resources, are reported as
expenditure and ifability of the govemmental fund that will pay it only if they have matured,
for example,as a result of employee resignations or retirements. Compensated absences
in the amount of $2,438,090, which are not expected to be liquidated with expendable
avaiiable flnandal resources, are reported in long-term debt.
j. Property Held for Resale
The Agency purchased land withfn the Agency's project area. 7he 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 ,tune 30, 2006, the cost of the
property held for resale for various housing properties in Pafm Desert totaled$25,000.
38
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� City of Palm Desert
' Notes to Financial Statements(Continued)
' Note 1: Summary of Significant Accounting Policies(Continued)
i
, k. Inventories, Prepaid Costs end Dapasits
i Inventory in the amount of $228,898 and $30,543 for the Desert Wfllow Golf Course
Enterprise Fund (Primary Gavemment) and Palm Desert Recreational Facilifies
/ Corporadon (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
$54,5fl5 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 govemment-wide and fund finanGal statements.
� The Agency has deposited $571,281 with Coachella Vailey Water District for future sewer
, connection charges at the Indian Springs Mobile Home Paiic, $6,000,000 in escrow to
purchase open space In Redevelopment Agency project area#2, and $1,025 in escrow to
, purchase various properties.
/ 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 -1 st tnstailment, March 1 -2nd instaliment
� Delinquent date December 10- 1 st Installment,Aprll 10-2nd installment
� Under Califomia law, property taxes are assessed and collected by the counties up Eo 1%
, of assessed value, plus other increases epproved by the voters. The property taxes go
into a pool and are then allocated to the cities based on compVex formulas prescribed by
� state statutes. The City accrues only those taxes,which are received within 80 days after
. the year-end. The Clty is a participant in the Teeter Plan under the Califomia Revenue
and Taxation Code. The County of Rlverside has responslblllty for the collection of
, delinquent taxes and the City receives 100%of the levy.
1 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 additlon, funds have been restricted for future capital improvements by City
. resolution.
�
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� 39
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�
Cfty of Palm Desert `
Notes to Financia!Statements(Continued) r
�
Note 2: Cash and investments �
As of June 30, 2006, cash and investments were reported in the accompanying financial �
statements as follows: �
Governmental activities $ 298,287,018 �
Business-type activities 5,385,645 �
Component unit 118,596
Fiduciary funds 25,170,735 �
Total Cash and Investments $ 328,961,994 �
�
The City of Palm Desert maintains a cash and investment pool that is available for use for all
funds. Each fund type's positfon in the poof is reported on the combined balance sheef as �
cash and investments. The C(ry has adopted an investment policy, whlch authorizes It to .
invest in various investments.
�
Deposits
�
At June 30, 2006, the carrying amount of the City's deposits was $7,099,727, and the bank �
balance was $10,643,025. The $3,543,298 dlfference represents outstanding checks and
other reconciling items. M
The Califomia Govemment Code requires Calffornfa banks and savings and loan associations �
to secure an Entity's deposits by pledging govemment securities wlth a value of 110% of an �
Entity's deposits. Califomia 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 colfateral requirement for deposits that are fully insured up to $100,000 by the �
FDIC. The cotfateral for deposits in federal and state chartered banks is held in safekeeping
by an authorized Agent of Depository recognized by the State of Califomia 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, Callfomia as an Agent of �
Depository. These securltfes are physically held in an undivided pool for all Califomia public �
agency depositors. Under Government Code Sectian 53655, the placement of securities by a
bank or savings and loan association with an Agent of Deposltory has the effect of perfectlng �
the securfty interest in the name of the local govemmental agency. Accordingly, all collateral !
held by Callfomia Agents of Deposftory are considered to be held for, and in the name of, the
local governmental agency. �
Investments �
Under provision of the Ciry's investment policy and in accordance with the California �
Gavemment 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
• Bankers Acceptances issued by commercial banks !
• Commercial Paper issued by general corporations M
• Negotiable Certiflcates of Deposlts, issued by a nationally or state-chartered bank, a
savings association, a federa! association or by a state-licensed branch of a foreign bank �
�
M
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40 �
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�
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� City of Palm Desert
� Notes to Financial Statements(Continued)
�
' Note 2: Cash and Investments
� . Time Certiflcates 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 instltutions operating in the United States and licensad by the United
States or by any state
� • Money Market Mutual Funds that are registered with the SEC under the Investment Act of
1 1940
• State of Calffomia Local Agency Investment Fund (LAIF) that is-managed by the State
� Treasurer's Offlce
' • Structured Notes in the form of callable securi�es or °STRIPS" issued by the United
States Treasury, Federal Agencies or govemment-sponsored enterprises
� . Asset-Backed Commercial Paper issued by speclal purpose corporations, trusts or limited
ffab(lity companiss
� • Local Govemment investment Pools
� GASB Statement No. 31
�
' The City adopted GASB Statement No.31,Accounting and Flnancial�Reporting for Certain
Investments and for External fnvestment Pools, as of July 1, 1997. GASB Statement
� No. 31 establishes fair value standards for investments in participating interest eaming
investment contracts, extemal investment pools, equity securities, option contracts, stock
� � warrants and stock rights that have readily determinable fair values.
� Credit Risk
1 The City Treasurer is authorized under state and municipal law to invest in varfous types
� of securities that meet specified credit quality standards, based upon credit risk ratings
' asslgned by Stendard and Poors 4S�P) or by Moody's Investor Services (Moody's).
Permissfble City investments inctude 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. Govemment and Federai Agency securi6es
� 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, 2006, the City's investments included med(um-term notes and shares in
' money market mutual funds, reflecting a variety of issuers. All securities were
"investment grade', and were legaliy acquired under state and municipal law. The City's
� Federal Agency holdings and money market mutual fund holdings were rated"AAA." The
Ciry's medium-term note holdings were rated "A+' or higher by S&P, except for notes
� issued by Ford Motor Credit Corporation that were rated "B+." As of June 30, 2006, the
' City had$13,032,285 invested in Ford Motor Credit Corporation. As of June 30, 2006,the
Ctty's holdings also inGuded shares in two local govemment investment pools:
� 1)the State of Califomia 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 ihe failure of a
depository financial institution, a govemment will not be abte to recover deposits or wtll not
� be able to recover collateral securitfes that are in the possession of an outside party. The
1 custodial credit risk for the investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government wfll not be able to recover the value of
� investment or colfateral securities that are in the possession of an outslde party.
�
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' 41
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City of Palm Desert `
Notes to Financial Statements(Continued) �
�
Note 2: Cash and Investments �
�
As of June 30, 2006, 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, 2006, in
accordance with GASB Statement No.40, if the City has invested more than 5%of its total w
investments in any one lssuer 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) $36,952,205 �
Federal Home Loan Mortgage Corpora6on(FHLMC) $24,652,375
Federal National Mortgage Association(FNMA) $19,833,921 �
Investments guaranteed by the U,S. government, investments fn mutual funds and �
extemal Investment pools are exGuded from this requirement. �
� Interest Rate Risk � �
The Citys investment policy Ilmits investment maturlties as a means of managing fts �
exposure to fair value losses arising from increasing interest rates. The Clty's investment �
policy states that the City shall not invest in secu�lties wlth maturlties exceeding five years �
and the weighted-average maturily of the City portfolio shall not exceed 540 days.The City
has elected to use the segmented time disMbution method of disGosure for its interest e
rate risk. �
As of June 30, 2006, the City had the following investments and maturities: �
Investment Maturiffes(in Years) �
Less 6 months- 1 year- 3 years- Fair !
than 6 months 1 year 3 years 5 years Value
�
Money market mutual funds-held by
fiscal agent $ 64,468,806 $ - $ - $ - $ 64,469,806 �
Calffomia Local Agency Investment Fund- - �
held by fiscal agent 14,047,341 - - - 14,047,341
Califomia Local Agency Investment Fund 63,142,859 - - - 63,142,859 �
Calffomia Asset Management Program 60,995,626 - - - 60,995,626 �
Federal Agencies 12,413,868 8,735,539 39,999,123 29,138,440 90,286,970
Medium-Term Corporate Notes 1,983,060 16,062,465 8,803,020 2,071,120 28,919,665 �
$ 217,052,560 $ 24,798,004 $ 48,802,143 $ 31,209,560 $ 321,862;267 �
� �
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42 A
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i City of Palm Desert
� Notes to Financial Statements(Continued)
/
' Note 3: Receivables
' Primary GovemmenYs Governmental Funds
/ Notes and Loans Receivable
1 The City has a note for$3,000,000 to Friends of the Desert Mountains for the safe of
' land. Friends of the Desert Mountains agreed to repay the nate wlthin 36 months from
' the date of issue, June 25, 2004,with interest accrued at 4.5%per annum.
r The City purchased property for$2,100,000 for which Sunline Transit Agency entered
into a lease option agreement witti the City to make mortthly 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 bafance.
� The time period for this fease is for a period of up to five years, unless tenninated
� sooner by purchase of the property or as othervvise provided in the lease agreement.
During the current fiscal year,the balance on tttis note was paid off.
�
, 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 perlod of time,not to exceed an aggregete amount of$2,000,000. Proceeds of
the loan are to be used for capital improvements at the Universitys 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, 2006, the amount outstanding on the loan Is$2,000,000.
' The Agency entered into a cooperative agreement with the County of Rivarside
1 (County) and Desert Community College District (District) to construct and operate a
, regional library. On behatf 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 eam interest at 6.44% until paid. During the current
, fiscal year, amounts due from the County and District were paid off.
' The Agency has loaned $41,174 in below market loans, secured by deeds of trust, to
eligibie low-income househoids. Monthly payments of interest and principal are due
1 over a period of 30 years unless the homes are sold, in which case ihe entire loan
, balance is due and payable.
, 7he City has $44,145 and the Agency has $36;636 in home improvement loans.
Payments of interest and principal are due monthty on these loans.
/
, A loan receivable for the construction of a multf-famiiy affordable housing
development dated June 14,2001,with a balance of$7,659,437 is due from the Palm
i 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
1 Desert. Interest is eamed 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 agenc�s percentage of positive net cash flow derived from the
1 operafions of the Development.
1 The Agency has issusd loans for several other projects, all of which are secured by a
, deed of trust. A valuatlon allowance equal to the loan.balance has been recognized
where there is a significant posslbliity 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.
/
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Cfty of Palm Desert �
Notes to Financial Statements(Continued}
�
Note 3: Recelvables(Continued) �
Detailed information for these loans is as follows: �
Loan �
Balance Irrterest Maturity �
Project Name Outstanding Rate Date Secured By Special Provisions aF Loan �
Setf-Help $ 429,000 7.25% 30 years Deed of Trust Loan balanoe and iriterest �
Housing program or 2024 due upon maturity,unpaid «
balance of loan or interest
will bear an interest rate of «
12%. �
Home Improvement 168,375 WA WA Deed of Trust Loan is payable upon «
Loans change or transfer af title,
re�financing or upon the «
death of the bomower. �
Portofa Palms 216,800 3.00 30 years Deed of Trust Loan balance and interest «
Nbbitehome Park from date will be forgiven at maturity «
of loan ff debtor does not bre2ch
� � the terms and condltions af «
either the unit regulatory �
aareemerit or note.
�
Desert Rose 2,130,682 3.00 30 years Deed of Trust Loan wili be forglven at �
from date maturity unless the debtor
of loan is in vidation of the unit �
regulatory agreernent or �
the deed of trust.
�
qcquisltion, 52,000 3.00 30 yeats Deed of Tn�st Loan balanoe and iMerest �
Rehabilltation, from date Assignment of will be fon,�iven at maturity
Resale of loan Rent if debtor does not breach !
the tetms and oonditions of !
either the unit regulatory
agreemc�nt or note. !
!
Note 4: InterFund Receivables, Payabies and Transfers !
The composltfon of interfund bafances as of June 30,2006,was as follows: !
Due To/From Other Funds !
Due to �
Other Funds:
Desert Willow �
Funds Goff Course Total �
Due From Other Funds:
General $ 657,992 $ 657,992 !
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44 !
«
City of Palm Desert
Notes to Ffnancial Statements(Continued)
Note 4: Intertund Receivables, Payables and 7ransfers(Continued)
The General Fund receivable amount is loaned to the Desert Witlow Golf Course to provide
temporary funds for operations.
Advances To/From Other Funds
Advances To Other Funds:
Other
General Govemmental
Funds Fund Funds Total
Advanc�s from Other Funds:
RDA Debt Service $ 19,366,480 $ 13,4'19,400 $ 32,785,480
Total $ 19,366,480 $ 13,419,000 $ 32,785,480
The advances from the General Fund and Other Govemmental Funds were made to the
Redevelopment Agency and Other Governmental Funds for capitai improvements and
cash shortages.
Due To/From Primary Govemment and Component Unit
Due to
Primary
Govemment
Funds PDRFC
Due From Component Uni�
General Fund $ 285,000
Desert VNllow Goif Course 204,672
Total $ 489,672
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.
45
City of Palm Desert
Notes to Financial Statements(Continued)
Note 4: Intertund Receivables, Payables snd Transfers(Cantinued)
Interfund Transfers
Trensfiers In:
RDA
Prop A Low RDA RDA RDA Other
Fire Income Financing Capital Debt Govemmental
General Tax Housing Authority Projeds Senrice Funds Total
Transfers Out: �
Generel $ - $982,498 $ - S - $ - $ - $ 392,550 $ 1,375,048
RDA Low{noome Housing - - - 4,167,691 381,556 - - 4,549,247
RDA Finanang Authority - - - - 971 - - 971
R4A Debt Servioe - - 15,404,798 13,172,287 9,522,326 - - 38,099,411
RC14 Capital Projeds - - 581,8l9 - 4,527,944 864 14,382 5,105,029
OtherGovemmentalFunds 1,083,589 - - - - - 12,452 1,096,041
$ 1,083,589 �982,498 $ 15,966,617 $ 17.339,978 $ 14,432,797 $ 884 S 419,384 $ 50.225,747
7ransfers 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.
46
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� City of Palm Desert
' Notes to Financial Statements(Continued)
' Note 5: Capital Assets
�
, A summary of changes in Capital Assets at June 30, 2006,was as follows:
� P�imary Govemment
, Adje+sted
salanoe m ealence at 9alsnce at
, July 1.2005 Ad1�lmet►ta(7 July 1.2005 Ttansfets Addttlons Deletians June 30,2U�6
Goverturientsl AcBvities:
, Capitel essets,not being tlBpreCteted:
Lend S 72.940,273 $ 125.462 E 73,085,735 S 18.090 S 2,987,378 S(2,344,132) S 73,727,069
Wphbo�Wey 109.502.212 - 109,502,212 - 192,234 - 109,894.448
' ConeUuctioMn-propress 28,587,665 - 28.587,BB5 (2,989,000) 25,329,238 (82,382) 50.865,541
' Total Capital Assets Not
' 8einp Depneciated 211,030,150 125.462 211,155,812 (2.970.910) 28,508,848 (2,408,494) 234.287.Q58
Cepital assets.bein6�apre8ated:
, Bulldinps 73,497.727 - 73.�97.727 2,798.149 5.089.273 (204.855) 81.160.294
Improvements oiher
' then buildinps 27,049,462 : 27,049,482 - b4,874 - 27.104,336
Nfat�.hlnery and equipmeM 8.186,729 6.186,729 (36.378) 798.371 (2f8.883) 6.726,839
, IMrashudure 131,704,174 - 131,704,174 148,838 929.773 - 132.782,785
EQuipment-Intemal Service Find 2,448,436 - 2,448,�36 60,301 1.870.531 4,179,268
' Total Capitel Asaets
, Belnp peprecJated 2�0.888,528 246.888.528 2.970.910 8,520,822 (424.738) 251,853,522
Less acctxnulaled deprecietion 1or.
' Buik6rps' (28,949,315) - (28,849.315) ' - (1,745,483) 9,731 (28.685,047) .
improvements dher
ttien bultGfnps (8,380�483) - (8.380,485) - (1,353�550) - (9.734.035}
1 Machinery ard equipment (4,973,711) (185,088) (5.158,799) - (438.254) 204,756 (5,390.287)
� Inh'eshucWre (45,787,877) - (45,)87,877) - (3,093,870) - (48,881,747)
Equipmant-Intemal Service Fux1 (1.615.453) (783.852) (2.389,30� - (330.633) (2.749,938)
, Total Accumulated
� Deprecfation (87.708,841) l�8,940) (88,875.781) - (8,978,T70) 214,487 (95.�41.084)
Net Ce�ital Assets
' Be'v�9 Depr'edated 153,179.887 (968.940) 152,210.747 2.970.910 1,541.052 (210.251) 156.512.458
� Net Capital Aase4s
Govertxnet�talAcUviUes S 384,209.837 S 843,478 S 383,388.359 S - 530,048.900 S .2� 81L 6,� 5390.799.514
' �e ��._ �—�
Busir�ess-Type Adivitles:
, Cepital asaets,not beinp depreciated
Land S 52.389,387 S - I 52.389,387 S - S 133,999 S - S 52.503.386
' Tofal Capkal Assels Not
' Being DeprecJated 52,389,367 - 52,389,387 133,998 - 52.b03,368
Capit2l assets,beinp de�xeCiated:
, BuMdkips 12.854.900 - 12.854.900 - 63.OB4 - 12,917.994
AAecidnery and equipment 4.311.919 4,311.919 174,886 (279.845) 4,207,140
, Toml Capftel EtsBets Befnp 17.186.818 - 17.188.818 237.960 C179,845? 17.125.134
, Depredated
Less acamuleted deptecietion 1or:
, Bulldinps (2,428,838) : (2,�26.838) � (338.799) - (2,785,837)
AAachinery and ecµilpment (3,010,977) (3.010,97� (727,85� 279,543 (3,459,281)
, TotBd/iCCumWated
, Deprecfeqon (5,437,815) - `.43T,815) - (1,086,858) 278,543 (6,224.928}
Net CaPNaI Aeseb Belnp
, De�xecfated 11,729,004 - 11,729,004 - 1828.686) (102) 10.900.206
, Net Capifal Aasets,
, 8us'mess-Type AGivfdes S 64,098,371 S - S 64,098,371 S - S (894.697) S 102) S 63,403,572
s�- '�
, (') Adjustments related to prior year acquisition not recorded and adjustment to beginning accumulated depreclation
, balance.
, 47
1
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:
Govemmental Activities:
General govemmerrt $ 2,120,370
Public safety 172,288
Public wrxks 3,220,578
Parks, recxeation and cutture 1,115,901
Depreciation expense for irrtsmal senrice funds is charged
to various functions based on usage of capital assets 350,633
Total Depreciation Expense-
Govemmerrtal Activities $ 6,979,770
Business-Type A�tivities:
Golf course-Desert Willow $ 859,175
Office complex-Parlcview 207,481
Total Depreciati�on Expense-
. Business-Type Ac�ivities $ 1,066,656 �
Note 6: Long 7ertn Liabiltties
The following is a summary of long-term liability transactions of the Ciry for the year ended
June 30,2006:
Primary Government
Balance at Balance at Due Within
July 1,2005 Additions Reciuction June 30,2006 One Year
Govemmental Aativities:
Compensated absences payable $ 1,844,477 $ 1,728,870 $ 1,135,337 $ 2,438,010 $ 700,000
Tax allocation bonds 250,485,000 - 5,485,000 245,000,000 5,815,000
Nobas payable 858,949 - 122,707 736,242 1?2,707
$ 253,188,426 S 1,728,870 $6,743,044 $248,174,252 $6,637,707
r-
Add: Unamortized bond premium 856,078 - 36,771 819,307
Toral $248,993,559
Debt service paymerits fior govemmental activities are made from debt service funds:
Business-Type Activities:
Capitalleases $ 509,755 $ 339,262 $ 170,493 $ 161,865
48
City of Paim Desert
Notes to Financial Statements(Continued)
Note 6: Long-Term Liabllitfes (Continued)
Governmental Activities
a. Compensated Absenaes Payabie
There is no fixed payment schedule to pay the govemmental fund types'outstanding liability
of $2,436,010 for compensated absences earned af June 30, 2006. 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 polftical subdivisions,
and neither the City, the State of Califomia nor any of its political subdivisions is liable on
the bonds, nor in any event shall the bonds and interest thereon be payable out of any funds
or properties other than those provided under the Bond Resolution.
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, (Projact Area No: 2) 1995 Series. The Paim Desert Financing Authority loaned
the bond proceeds to the Palm Desert Redevelopment Agency to flnance certain
redevelopment activities of the Agency in Project Area No. 2. Interest rates on the
bonds vary from 4.40°Io to 5.95°lo per annum payable semi-annualty on February 1 and
August 1,with principal maturing annualfy on August 1.
The future debt service requirements on the 1995 Series Tax Allocation Revenue
Bonds{Project Area No.2)are as follows:
Year Er�ding
June 30, Prinapal Interest Total
2007 115,000 225,482 340,482
2008 120,000 218,528 338,528
2009 125,000 211,279 336,279
2010 135,000 203,586 338,586
2011 145,000 195,304 340,304
2012-2017 850,000 835,304 1,685,304
2017-2Q22 1,130,000 543,853 1,673,853
2022-2026 1,250,000 171,707 1,421,707
Total $ 3,870,000 $ 2,605,043 $ 6,475,043
49
�
�
�
C(ty of Palm Desert
Notes to Financial Statements(Continued) �
�
Note 6: Long-Tertn Liabtlities(Continued) �
1995 Series A Tax Allocation Revenue Refunding Bonds !
In August 1985, 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, Prinapal Interest Total �
20�7 585,000 83,445 668,445 �
2008 600,000 51,592 651,592 �
20Q9 635,000 17,621 652,621 r
Total $ 1,820,000 $ 152,658 $ 1,972,658 �
. . • �
1997 Series Tax Allocation Refunding Revenue Bonds �
On July 24, 1997, the Palm Desert Financing Authorify 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. 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 fo(lows: �
June 30, Principal Interest Total �
2007 2,065,000 3,110,724 5,175,724 �
2008 2,290,000 3,011,604 5,301,604 �
2009 2,255,000 2,899,394 5,154,394
2010 2,505,000 2,786,644 5,291,644 �
2011 2,495,000 2,658,888 5,153,888 �
2012-2016 15,105,000 11,130,426 26,235,426 A
2017-2021 19,725,000 6,546,76� 26,271,760
2022-2023 11,075,000 986,062 12,061,062 �
Total $ 57,515,000 � 33,13Q,502 $ 90,645,502 �
�
�
�
�
�
50 �
�
Ciiry of Palm Desert
Nctes to Financfai Statements (Continued)
Ncte 6: Long-7erm Liabilftles(Continued)
1998 Series Tax Aifpcation(Housing Set-Aside) Revenue Bonds
In January '1998, the Palm Desert Financing Authority (ssued $48,760,000 in Tax
Ailocabon (Housing Set-Aside) Revenue Bonds. The proceeds from the bonds were
loaned to the Palm Desert Redevelopment Agency to finance the acquisition af seven
apartment complexes consisting of 725 rental units from the Housing Authority of the
County of Riverside. Interest rates on the bonds vary from 4.0% to 5.1°lo per annum
payaBie semi-annually on April 1 and October 1, with principal maturing annually on
Octaber 1.
The future debt service requirements on the 1998 Series Tax Allocation (Housing Set-
Aside) Revenue Bonds are as follows:
June 30, Principal Irrterest Total
2007 615,000 2,251,804 2,866,$04
2008 655,000 2,224,817 2,879,817
2009 685,Q00 2,196,342 2,881,342
2010 1,390,000 2,147,036 3,537,036
2011 1,460,000 2,075,786 3,535,786
2012-2016 • 8,510,000 9,175,180 17,6$5,180
2017-2021 10,940,000 6,751,779 17,691,779
2022-2026 14,095,000 3,586,707 17,681,707
2027-2028 6,73U,000 347,565 7.077,565
Total $ 45,Q80,000 $ 30,757,016 $ 75,837,016
1988 Series 7ax Allocation Revenue Bonds(Project Area No.4)
On March 1, 1988, the Palm Deseit Financfng Authority issued $11,020,000 of Tax
Allocation Revenue Bonds (Projeot Area No. 4) 1998 Series. The praceeds from the
bonds were loansd to the Palm Desert Redevafopment Agency to finance certain
redevelapment activities of the Agency in Project Area No. 4, interest rates on the
bonds vary fram 4.0°!o to 5.2% per annum payable semi-annualfy 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, PrincipeJ Irrterest Total
2007 250,000 508,759 758,759
2008 260,000 496,378 756,378
2009 265,000 483,628 748,628
2010 280,000 470,490 760,490
2011 295,000 456,946 751,946
2012-2016 1,710,000 2,053,750 3,763,750
2017-2021 2,175,000 1,565,373 3,740,373
2022 2026 2,825,000 920,010 3,745,010
2027-2030 2,070,000 165,100 2,235,100
Total $ 10,140,000 $ 7,120,434 $ 17,26Q,434
51
�
`
City of Palm Desert «
Notes to Financlal Statements(Continued) �
�
Note 6: Long-Tertn Liabifities(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 �
Aflocation 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 frorn 3.5% to 4.9% per annum payable semi-annualty 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 Eriding �
June 30, Principal Irrterest Total �
2007 270,000 682,994 952,994 �
2008 285,000 673,013 958,013 �
2009 310,000 662,313 972,313 �
2010 305,000 651,250 956,250
2011 320,000 639,909 959,909 �
.. 2012-2016 1,800,000 2,994,085 4,794,085 � � �
2017-2021 2,250,000 2,548,904 4,798,904
2022-2026 2,785,000 1,962,194 4,747,194 �
2027-2031 5,090,000 1,019,280 6,109,280 �
2032 1,650,000 116,878 1,766,878 �
Total $ 15,065,000 $ 11,950,820 $ 27,015,820 �
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 �
Allocafion Refunding Revenue Bonds (Project Area No. 1, as amended)2002 Series A.
The proceeds from the bonds were loaned to the Palm Desert Redevefopment 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 rede�elopment 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 tenn
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. �
�
�
�
�
�
�
�
�
�
52 �
�
�
�
� Ctty of Palm Desert
� Notes to Financial Statements(Continued)
�
� Note 6: Long-Tertn Llabilities(Continued)
� The future debt service requirements on the 2002 Series A Tax Ailocation Refunding
� Revenue Bonds(Project Area No. 1, as amended)are as follows:
� Year Ending
� June 30, Principal Irrterest Total
� 2007 - 1,114,666 1,114,666
� 2008 � 1,114,666 1,114,666
2009 1,114,66fi 1,114,666
� 2010 - 1,114,666 1,114,666
� 2011 - 1,114,666 1,114,666
2012-2016 - 5,573,330 5,573,330
� 2017-2021 - 5,573,330 5,573,330
� 2022-2026 12,920,000 4,789,080 17,709,080
A 2027-2030 9,150,000 1,195,440 10,345,440
� Total $ 22;070,000 $ 22,704,510 $ 44,774,510
� . 2002 Secies A Tax Allocation Refunding Revenue Bonds(Project Area No.2)
� �
� tn July 2002, the Palm Desert Financing Authority issued$17,310,000 of Tax Allocafion
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 boncfs vary from
� 3.0°k to 5.0% per annum payable semi-annually on February 1 and August 1. Principal
payments will be made annually beginning August 1,2003.
�
A The future debt service requirements on the 2002 Serles A Tax Allocation Refunding
Revenue Bonds (Project Area No.2)are as follaws;
• Year Ending
� June 30, Principal tnterest Total
�
. 2007 630,000 671,333 1,301,333
2008 65Q,000 653,078 1,303,078
� 2009 675,000 631,853 1,306,853
� 2010 695,000 607,868 1,302,868
2011 720,000 581,498 1,301,498
� 2012-2016 4,170,000 2,364,255 6,534,255
' 2017-2021 5,260,000 1,290,848 6,550,848
� 2022-2023 2,510,000 126,750 2,636,750
� Tat�al � 15,310,000 $ 6,927,483 $ 22,237,483
�
�
�
�
�
� 53
�
i
�
�
City of Palm Desert
Notes to Financfal Statements(Continued) �
I
Note 6: Long-Term Liabilities(Continued) �
2002 Series Tax Allocation(Housing Set-Aside} Revenue Bonds �
in August 2002, the Palm Desert Financing Authority issued $12,100,000 of Tax �
Altocation (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°lo 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.
The future debt service requirements on the 2002 Series Tax Allocation (Housing Set- ,
Aside) Revenue Bonds are as follows:
Year Ending !
June 30, Prinapal Interest Total
2007 250,000 515,143 765,143
2008 255,000 508,448 763,448
2009 265,000 500,572 765,512
2010 . 275,000 491,454 766,454 ,
2011 285,000 481,298 766,298
2012-2016 1,595,000 2,?26,248 3,821,248
2017-2021 1,980,000 1,847,932 3,827,932
2022-2026 2,510,000 1,316,334 3,626,334
2027-2031 3,220,000 605,000 3,825,OOQ
2032 745,000 18,625 763,625
'Tatal $ 11,380,000 � 8,511,054 ' $ 19,891,054
2Q03 Series Tax Allocation Revenue Bonds(Project Area No.2)
In March 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax
Albcation Revenue 8onds (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 actN�ies 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 fo{lows:
$ 875,000 Serial Bonds August 1,2023
91�,000 Serial Bonds August 1,2024
2,485,000 Term Bonds August 1,2026
11,475,000 Term Bonds August 1,2033
54
�
�
� City of Palm Desert
� Notes to Financial Statements (Continued)
�
' Note 6: Lan�-Term Liabliities(Continued)
' The future debt service requirements on the 2003 Series Tax Aliocation Revenue
Bonds{Project Area IVo.2)are as follows:
�
� Year Ending
June 30, Prinapal lnter�est Totai
t
, 2007 - 769,006 769,006
2008 - 769,006 769,006
� 2009 - 769,006 769,006
� 2010 - 769,006 769,006
2011 - 769,006 76'9,006
� 2012-2016 - 3,845,030 3,845,030
� 2017-2021 - 3,845,030 3,845,030
t 2022-2Q26 2,930,000 3,658,690 6,588,69Q
2027-2031 7,400,000 2,312,488 9,712,488
� 2032-2034 5,415,000 415,125 5,830,125
� Total $ 15,745,000 $ 17,921,393 $ 33,666,393
1
� 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 Senes. 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
� af $7,050,000 serial bonds with principal payrnents 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 Aprfl 1, 2004. Principal payments will be ort April 1 of the years
� stated above.
� The future debt service requirements on the 2003 Series Tax Allocetion Revenue
� Bonds(Project Area(Vo. 1)are as follows:
1 Year Ending
� June 30, Prinapa{ interest Totai
� 2007 - 954�Q00 950,000
` 2008 - 950,000 950,000
( 2009 ' 950,000 950,000
2010 950,000 950,000
� 2011 - 950,000 950,000
' 2012-2016 _ 4,750,000 4,750,000
2017-2021 4,750,000 4,750,000
� 2022-2026 3,440,000 4,750,000 8,190,000
� 2027-2030 15,560,000 1,992,500 17,552,500
� Total $ 19,000,000 $ 20,992,500 $39,992,500
1
1
1
� 55
�
Clty of Patm Desert
Notes to Financial Statements (Continued)
Note 6: Long-Term Uabilitfes(Continued)
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 activtties within or of benefit to the praject area and
to finance costs of issuance of the bonds. The bonds bear interest at rates ranging
from 3.000°k 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 arnount
of$2,270,000 are due in 2033.
The future debt service requirements on the 2003 Series Tax Allocation Revenue
Bonds (Project Area fVo. 3)are as follows:
Year Ending
June 30, Prindpal Irrterest Total
2007 95,000 201,598 296,598
2008 95,000 198,748 293,748
2009 100,000 195,898 295,898
. . 2010 •, 100,000 193,048 293,048
2011 105,000 189,848 294,848
2012-2016 590,000 888,187 1,478,187
2017-2021 720,000 757,548 1,477,548
2022-2026 9Q5,000 576,900 1,481,900
2027-2031 1,155,000 322,875 1,477,875
2032-2033 545,000 42,278 567,278
Totai $ 4,410,000 $ 3,566,928 $ 7,976,928
2004 Series A Tex 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 ftom the bonds were loaned to the Palm Desert
Redevelopment Agency to reflnance a portion of the Agency's obligatfons ftom 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°,G per annum payable semi-annually
on April 1 and October 1. Principal payments will be made annually beginning
April 1,2005.
56
�
�
� City of Paim Desert
» Notes to Financial Statements(Continued)
�
� Note 6: Long-Tenn Liabilities(Continued)
� The future debt service requirements on the 2004 Series A Tax Atlocation Revenue
� Bonds (Project Area No. 1, as amended) are as follows:
» Year Ending
� .lune 30. Prinapal Irrterest Total
» 2007 940,000 1,097,413 2,037,413
2008 850,000 1,059,813 1,909,813
� 2009 1,030,000 1,025,813 2,055,813
� 2010 945,000 974,313 1,919,313
» 2011 1,130,000 927,063 2,057,063
2012-2016 5,930,000 3,886,850 9,816,850
� 2017-2021 7,355,000 2,435,423 9,790,423
� 2022-2026 5,415,000 695,500 6,110,5Q0
� Total $23,595,000 $ 12,102,186 $35,697,188
�
�
� • � -
�
�
�
�
�
�
�
�
�
57
Clty of Palm Desert
Notes to Financial Statemants(Continued)
Note 6: Long-Term Liabllitfes(Continued)
Below is a summary of the changes in Tax Ailocation Bonds:
Balance at Salance at
July 1,2005 AddiHons Reduction June 30,2a06
1995 Series Tax Allocation
Revenue Bonds(Project Area
No.2-Original Issue 54,090,000) $ 3,905.000 $ 35,000 S 3,870,000
1995 Series A Tax Affocation
Revenue Refunding Bonds
(Origirral Issue$6,305,000) 2,375,000 555,000 1,820,000
1997 Series Tax Rllocation
Refunding Revenue Bonds
(Original Issue$71,955,000} 59,540,000 2,025,OOQ 57,515,000
1998 Series Tax Allocation
(Housing Set-Aeide)Rev�enue
Bonds-(Origlnal Issue 548,760,000) 45,870,000 590,000 45,080,000
1998 Series Tax Alloca6on
Revenua eonds(Projed Area
No.4-Original Issue$11,020,004} 10,370,000 230,000 10,140,000
2001 Series Tax Ailoca8on
Revenue Bonds(Project Area
, Revenue Bonds(ProJeck Area No.4} 15,235,000 '170,000. � 15,Q65,000
2002 Series A Tax Alloca6on
Refunding Revenue Bonds
(Project Area No.1,as amended) 22,070,000 - 22,070,000
2002 Serfes A Tax Allocation
Refunding Revenue Bonds
(ProJect Area No.2) 16,000,000 690,000 15,310,000
2002 Series Tax Allocation
(Housing Set Asidey Renrenue
(Housing Set Aside)Revenue Bonds 11,625,000 245,000 11,380,000
2003 Saries Tax PJlocation
Revenue Boncis(Project Area No.2) 15,745,000 - 15,745,000
2003 Series Tax Ailocatlon
Revenue Bonds(Project Area No.1) 19,Q00,000 - 19,000,000
2003 Series Tax Alla�tion
Revenue Bonds(Projed Area No.3) 4,500,000 90,000 4,410,000
2004 Series A Tax Alla�tion
Refunding Re+�enue Bonds
Projed Area No.2)
Project Area No.1,as amende� 24,450,000 855,000 23.595,000
Total � 250,485,000 $ - $ 5,485,000 $ 245,000,000
c. Notes Payabfe
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
ag�eement states that the Agency was to ratain 50% of the County's share of tax
increment. This was based on the County's share of tax increment being what would
be aliocated to the County in the absence of a redevelopment project area being
adopted.
58
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' City of Palm Desert
� Notes to Financial Statements(Continued)
�
, Note 6: Long-Term Uabilities(Continued)
� This agreement called for the Agency to retain 50% of the County's share untii the
gross increment reactied $3,500,000. The ag�eement further states that when gross
� increment reaches $10,000,000, the Agency would 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, 2006, was $736,242. Annual payments on the note
' are$122,707.
� Future debt service payments are as foliows:
� Year Eriding
� June 30, PrincipaE IMerest Tatal
� 2007 122,707 - 122,707
� 2008 122,707 - 122,707
1 2A09 122,707 - 172,707
2010 122,707 - 172,707
� 2011 122,707 - 122,707
� 2012 - 122,707 � - 122,707 .
� Total � 736,242 $ - $ 736,242
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City of Palm Desert
Notes to Financial Statements(Continued)
Note 6: Long-Term Liabilities(Continued)
Business-Type Act(vities
Obligations under capitat leases are as follows:
Pure Planet Water, Inc.
The preserrt vafue of the minimum lease paymerit on water
purification equipmerrt was capitafasd at $2,802 using an
interest rate of 4.94%. Lease is payable in 60 mor�thfy
installmerits of$53 beginning May 15,2005. $ 2,211
Textron Corporation(leases executed by the Ciiy of Palm Desert)
The present value of the minimum lease payrr�e� on the new
gotf carts was capitalized at $331,101 using an increment
borro�wing interest rate of 5.50% at the incepfion of the iease.
The lease is payable in 48 mor�thly instaflmerrts of $5,336,
which began Decernber 15, 2002. The remaining principal will
be paid in one lump sum at the end of the lease payme��ts. 159,300
. Pure Planet Water, Inc. . ,
The present value of the minimum lease pay�r�ent on water
purifir.ation equipment was capitalized at $10,752 using an
interest rate of 5.15%. Lease is payable in 60 monthly
installmerits of$204 beginning September 1, 2005. 8,982
Preserrt value af net minimum lease payments 170,493
Less: ctment portion (161,865)
$ 8,628
The following is a schedule by year, of future minimum lease payments and present value
of the net minimum lease payments for capital ieases as of June 30, 2006:
Mfnimum Less:Amourrts Present Value of
Year Ending Lease RepreseMing Net Minimum
June 30, Payments Interest Lease Payments
2007 167,621 5,756 161,865
2008 3,077 378 2,699
2009 3,077 237 2,840
2010 2,972 89 2,883
2011 207 1 206
Total $ 176,954 $ 6,461 $ 170,493
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r City of Palm Desert
r Notes to Financiai Statements(Continued)
�
� Note 6: Long-Term Liabilitfes(Continued)
� The assets acquired through capital lease are as follows:
� Assets:
� Machinery and equipmer�t $ 1,149,723
. Less:accumulated depreciation (818,298)
� Total $ 331,425
�
. Note 7: Deferred Compensation Plan
� The City offers its employees a deferred compensation plan created in accordance with
. Intemal Revenue Code Section 457. The p1an, available to a{{ City empioyees, permits them
to defer a portion of their salary until future years. The defened compensation is not available
. to empioyees 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 Ciry does not have fiduciary responsibifity for the plan
assets held by NRS and ICMA. The assets, all property a�d rights purchased with such
� amounts and all in�ome 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 ctaims of the City's general creditors. As a result, the
� assets in the amount of $7,564,514 held by NRS and ICMA of the 457 Plan are no longer
reflected in the Ciiy's financiaf statements.
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. Note 8: Deposlts Payable
, Property texes 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 "ftozen" 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 Redevefopment Plan.At June 30, 2006,
the Agency was holding $37,782,479 in trust on behalf of other taxing agencies related to
� speclfic pass-through agreements.
� Note 8: Bond Reserve Requirements
�
, At June 30, 20d6, the fund balance reserve requirements and actual reserve balances are
presented as follows:
• Requirement Actual
• 2001 Tax Allocation Revenue Bonds $ 482,890 $ 500,344
� 1995 Refunding Tax Alloca6on Bonds 182,000 644,894
• Total Reserve Requirement $ 664,890
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City of Palm Desert
Notes to Financial Statements (Continued)
Note 1Q: Defeased Ob(igations
The City defeased certain obligations by placing the proceeds of new obiigations 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`ate not
included in the accompanying financial statements.
At June 30, 2006, there were[to outstanding amounts of the defeased obligafions.
Note 71: Pension Plan
a. Plan Descrlptlon
ti
The City of Palm Desert contributes to the Califomia Public Employees Retirement i
System (PERS), an ageni multiple-employer public employee defined benefit pension
p1an. PERS provides retirement and disability benefits, annuai cost-of-living adjustments +
and death benefits to plan members and beneficiaries. PERS acts as a common �
investment and administrative agent for participating public ent(ties within the State of
Califomia. Benefit provisions and a11 other requirernents are established by stale statute �
and city ordinance. Copies of PERS' annual financial report may be obtained from their
executive office:400 Q Street, Sacramento, CA 95814. �
b. Funding Policy �
. , �
Pa�ticipants are required to contribute 8% of their annual covered salary. The City
contributes 7% of the required employee contribution on their behalf and the emplayee �
contributes the remaining 1%. The City is required io contribute at an actuariaiiy �
determined rate; the rate for fiscal year 2005-2006 was 16.829% for non-safety
employees of annual covered payroll. The contribution requirements of plan members I
and the City are established and may be amended by PERS. �
c. Annual Penslon Cost (
For 2006, the City's annual pension cost of$2,646,409 for PERS was equal to the City's �
requfred and actual contriburions. The required contribution was determined as part of the �
June 30, 2005, actuarial valuation using the entry age normal actuarial cost method. The
actuarial assumptlons included: a) 7.75% investment rate of retum (net of administrafive �
expenses), b) projected annual salary increases of 3.25°� to 14.45% depending on age,
service and type of employment, and c) 3.25% per year cost-of-livi�g adjustments. Both �
a) and b) included an inflation component of 3.00%. 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 closad basis that depends on the plan's entry into PERS. The remaining
am�rtization period at June 30, 2006,was 17 years. �
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� Ctty of Palm Desert
� Notes to Financial Statements(Continuad)
�
� Note 11: Pension Ptan (Continued)
� d. Three-Year Trend information for PERS
� Fiscal Annual Pension Peroentage Net Pension
� Year Cost(APC) APC Corrtributed Obligation
� 6/30/2004 , $ 1,581,184 100% $ -
� 6/30I20Q5 2,020,934 100% -
� BI30/2006 2,646,409 100% -
� e. Schedule of Funding Progress for PERS
� A�ccrued UAAL as
M Liability Ac�uarial lhrfunded a 9�0 of
� AUuarial (AAL)EMry Value of AAL Excess Covered Covered
ValuaBon Age Assets Assets Funded Payroll Payrdl
Date (A) (B) (A-B) Fiatio B/A (C) ((A-B)�C]
6/30/2003 $ 34,734,559 $ 29,531,889 $ 5,202,670 85.0°k $ 8,919,100 58.3%
� 6/30/2004 39,172,557 32,54U,472 6,632,085 83.1% 9,237,548 71.8%
M 6/30/2005 43,478,283 36,087,558 7,391,725 . 83.0% 9,403,830 78.6%
� Note 12: Fund Equtty
�
� a. Reserves of Fund Balance
� in the fund financial statements, reserves segregate portio�s of fund balances that are
� either not available or have been earmarked for spec(flc purposes. The various reserves
established as of June 30, 2006,were as follows:
� RDA RDA RDA RDA
Prop A Law Fna�dng Capital Debt Other
General Flre Incorne Authafty Debt Projeds Se�vioe GovemmeMal
Fund Tax Housing Fund Fund Fund Funds Totals
Loans and notes�ceivaWe $ 3,400,000 $ - $ 7,737,247 $ - $ 2,000,000 $ - S - $ 12,737,247
Property held for resate - - 25,000 - - - - 25,000
Adv2nces(1) 17,311.480 - - - - - 13.419,000 30,730,480
Prepaid oosts and deposits 865,061 - 4,009 - 6.588,172 7,583 50 7,464,875
Erx:umbrances 1,988,534 �,273 3,910,018 - 11,363,305 - 26,504,718 43,766,248
Co�tinuing apPropriadons 689.869 - 12,924,133 - 13,533,644 - 17,241,358 44,389,004
Debtservice 2,438,010 - - 664,890 - - - 3.102,900
Inventory 54,505 - - - - - - 54,505
Total $26,345,859 $1,273 $24,600,407 $684,�0 $33,485,121 57,583 $57,165,126 $142,270,259
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��� In the general fund,fund balanoa for advancas to other funda in the amount of 52,055,000 is not roserved
es the revenue releted 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
avallable.
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City of Palm Desert �
Notes to Financial Statements(Continued)
�
Reserved for Property_,Hefd for Resale - This reserve is for property held for resale and �
has been set aside to indicate that these funds are not availabie 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 Preqaid Costs and Deposits - These reserves represent contractual �
obligations for cash payments msde before June 30, 2006, but not recognized as an '
expenditure untii after July 1,2006, and noncurcent 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, 2006,
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 actlon. �
Reserved for Continuina Aoorooriations-These reserves are for appropriations for capital �
projects, which are unexpended as of June 30, 2006, and are carried forward as �
continuing appropriations to be expended in 2006-2007.
�
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. �
Resenred for �nventory - This reserve is to restrict fund balance so that it will not be �
considered as current funds available.
�
b. Net Asset Restatements �
Net assets have been restated as follows: '
Capitaf assst adjustments(see Note 5) $ (59,626) �
Capital asse#transfers to Intemal Service Fund (60,341) �
Total Net Asset Restatements �(119,92� �
_ �
Note 13: Risk Management '
�
a. Descrlptlon ot Sslt-lnsucance Poot Pursuant to Joint Powers Aereement �
The City is a member of the California Joint Powers fnsurance Authority (the Authority). �
The Authorfty Is composed of 109 California public entities and is organized under a joint
powers agreement pursuant to Califomia Govemment Code §6500 et seq. The purpose ♦
of the Authority is to anange and administer programs for the pooling of self-insured �
losses,to purchase excess insurance or reinsurance, and to arrange for group-purchased
insurance ior property and other coverage. The Autho�ity's pool began covering claims of �
its members in 1978. Each member govemment has an elected official as its
representative on the Board of Directors. The Soard operates through a nine member �
Executive Committee. �
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i City of Palm Desert
i Notes to Financial Statements(Continued)
i
� b. Self-tresurance Programs of the Authorlty
' General Liabliity
/ Each member government pays a primary deposit to cover estimated losses for a fiscal
' year (claims year). Six months after the close of a fiscai year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims year.
� Claims are pooled separatefy between police and non-pofice. Loss development reserves
, are allocated by pool and by loss layer. Costs are spread to members as follows: the first
$30,000 of each occurrence is charged directly to the member; costs from $30,000 to
' $750,000 and the loss development reserves associated with losses up to $750,000 are
pooled based on a member's share of losses under $30,000, Losses from $750,000 to
� $10,000,000 and the loss development reserve associated with losses �750,000 to
, $10,000,000 are pooled based on payroll. Costs of covered ciaims above $10,000,000
are currently pafd by excess insurance. The protection for each member is $50,000,000
' per occurrence and $50,000,000 ennual aggregate. Administrative expenses are paid
' from the Authority's investment eamings.
, Workers'Compensation
1 The City also participates in the workers' compensation pool administered by the
, Authorlty. Claims are pooled separately between public safety and non-public safery. L�ss .
development reserves are allocated by pool and by loss layer. Members retain the first
' $50,000 of each claim. Losses from $50,000 to $100,000 and the loss development -
reserve associated with losses up to $100,000 are pooled based on the member's share
/ of losses under $50,000. Losses from $100,000 and $2,000,000 and loss devefopment
, reserves associated with iosses from $100,000 to $2,000,000 are pooled based on
payroll. Costs from $2,000,000 and $150,000,000 are transferred to an excess insurance
' policy. Costs in excess of $150,�00,000 are pooled among the members based on
, payroll.Administrative expenses are paid from the Authority's investment eamings.
, Estimates for all workers'compensation and general liabilities up to the self-insured levels
have been recorded in the General Fund. At June 30, 2006, total estimated workers'
, compensation and general liabil'ity claims payable, including a provision for incurred but
, not reported claims,were$74,543 and$406,774, respectively.
, Changes in claims liabili�ies during the past two years are as follows:
� June 30,2005 June 30,2006
, Claims payable-Beginning of Year $ 1,043,381 $ 659,906
/ Incurred claims(including IBNR)
, and changes in esfimate 37,398 193,366
, Claims paymerrts (420,873) (371,955)
/ Gaims payable-End of Year '� $ 659,906 $ 481,317
/
� The estimated amount of claims and judgments due within one year are$480,000.
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City of Palm Desert
Notes to Financfal Statements(Continued}
c. Purchased Insurance
Property Insurance
The City participates in the all-risk property protection progrem of the Authorfty. This
insurance protection is underwritten by several insurance companies.7he Ciry property is
currentty insured according to a schedule of covered property submitted by the City to the
Auihority. Totel alhrisk property insurance coverage is $103,806,710. There is a $5,000
per loss deductible. Premiums for the coverage are paid annually and are not subject to
retroactive adjustments.
Fldellty Bonds
TMe City purchases blanket fide{ity bond coverage in the amount of $1,000,000 with a
• $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are
pald annually and are not subject to retroactive adjustments.
d. Adequacy of Protectlon
During the past three fiscal (claims) years, none of the above programs of protection have
had settlements or judgments that exceeded pooled or insured coverage. There have
been no significant reductions in pooled or insured liability coverage from coverage in the
prior year.
Note 14: Deferred Revenues and Uneamed Revenues
Governmentel 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 retum the City receives on its investment
with the Local Agency Investment Fund (4.70% at June 30, 2006). Recognition of
the revenue from the sale has been deferred unt(I it becomes available.
On March 13, 1987, and amended on June 4, 1997, the City entered into an
agreement with the Palm Desert Recreational Faciltties Corporation (Corporation)
for the use of property at the City's Golf Resort (Dese�t Willow). Payment is due
when the Corporation's revenues exceed its expenses. At June 30, 2006, the
Corporation owed the City rent totaling $285,000, which will be recognized as
revenue by the City when the rent is pald by the Corporation.
On June 25, 2004, a promissory note for$3,000,000 was issued ftom 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, 2006, $272,219 in interest has been accrued.
Recognition of the interest revenue has been deferred until it becomes due.
The State of Calffomia 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$326,740 for sales tax has been deferred.
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� City of Paim Desert
� Notes to Financlal Statements(Continued)
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, Note 14: Deferred Revenues and Unearned Revenues(Continued)
, Other amounts reported as uneamed revenues include$28,507 in miscelianeous
rents.
/
, RDA Low Income Housing
' $205,127 of uncoliected interest due from the Pafm Desert Development
i Company in the Low fncome Mousing Fund of the Agency has been deferred.
, Other amounts reported as uneamed revenues include $2,136 in miscel{aneous
rents.
/
, RDA Capital Projects
, The redevelopment has $65,926 of unearned revenue representing a deposit
, from a developer to construct a wall. The redevelopment agency has nof
constructed the wall as of June 30, 2006.
1
, Other Governmental Funds
� Special Revenue Funds
, Measure A fund has $275,354 of unearned revenue representing a deposit from
� a developer for street improvements and $6,603 of deferred revenue for work
, done on behalf of developer, however payment has not been received.
, Loans receivable in the amount of $44,145 for home improvement loans are
, recorded as deferred ln the Community Development Block Grant Fund.
, The T�affic Signals fund has $114,166 of unearned revenue representing a
depQsit from deveioper for a traffic signa{ Vight. As of June 30, 2006, the traffic
, light has not been installed,
� $22,473 of grant funds are deemed uneamed until expenditures are incurred in
. the Recycling Fund.
. Pcepaid cents in the amount of $24,425 from the eight apactment complexes
. operated by the Palm Desert Housing Autho�ity will be recognized as revenue
when earned.
• Capital Project Funds
• $1,050,660 has been deferred for cap'rtal reimbursement from a developer for
� work completed by the City on behatf of the developer.
• On August 24, 2000, the City entered into a Reimbursement Agreement with
� Sunrise Desert Partners. The agreement calls for reimbursement to the City by
. the Developer for the amount of total costs incurred plus accrued interest of 6.0%
per annum be8inning two years from the final payment date of February 6, 20D4.
. The entire balance of principal and accrued interest is due by February 6, 2009.
� As of June 30, 2006, $17,005 in interest has been accrued. Recognition of the
interest revenue has been deferred until it becomes due.
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City of Palm Desert
Notes to Financial Statements(Continued)
Note 14: Deferred Revenues and Uneamed Revenues(Continued)
$42,475 of uneamed revenue representing a deposit from a developer for street
im provem ents.
Business-Type Activities
The baiance of $102,174 represents the unused portions of prepaid golf fees, value of
unredeemed gift certficates and unearned rent.
Component Unit ,
7he balance of$34,250 represents the unused portions of prepaid banquets.
Note 15: Other Post-Employment Beneflts
Plan Description
The City offers the Public Empioyee Retirement Systems (PERS) Fiealth Care Program to
its re6rees. The City confibutes $65 per month to PERS on behalf of each retiree eligible
for PERS. in addltion, the Ciry wlll make an additional contribution towards certain
retirees'premiums under a program called the Retiree Service Stipend.
• A retiree will be eliglble for the Retiree 3ervice Stipend if: • �
1. retirement occucs from the City and nom 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 efigibility criteria are
met. Spousal and dependent coverage is provided during the retiree's lifetime only.
The percentage of the premium paid by the City on behalf of an eligible retiree is
according to the following schedule, based on years of continuous service with the City:
Years of Service City Percent
Less than 10 0%
10 50%
11 55%
12 60%
13 65%
14 70%
15 or more 75%
Accounting and Funding
The ReUree Service Stlpend is not actuarially funded. The assets for the retiree service
stipend are accoanted for in an agency fund. There were 21 participants in the plan. The
premiums paid amounted to$140,474. An actuarial valuation completed for the plan as of
Juty 1,2005, indicated the amount of the actuarial liability to current and future liabilities to
be$12,193,207.
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City of Paim Desert
Notes to Financial Statements(Continued)
Note 16: Speciai Assessment Debt
Below is a summary of the changes in the Special Assessment Bonds Payable:
Balance at Balance at
July 1,2005 Addi�ons Reduction June 30,2006
9995 Revenue Bonds $ 760,000 $ - $ 445,000 $ 315,000
1997 Revenue Bonds 19,200,000 - 975,000 18,225,000
2003 Assessmant Revenue Bonds 4,250,000 - 270,000 3,980,000
AD 9&1 Limfted Oblig2rtion Ftefunding Bonds 1,840,000 - 505,000 1,335,000
CFD 2005-1 Special Tax Bonds-Series 2006A - 50,000,000 - 50,000,0�0
$ 26,050,000 $ 50.000,000 3 2,195.000 $ 73,655,000
c�
The City has Special Assessment Bonds Payable issued under the 1811 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 ftom the
property owner. Such fiability is then recorded in the Agency Funds. Therefore, the
1911 Bonds are not recorded as liabi(ities in the accompanying financial statements.
The Ciry also has no liabllity to the 1915 Act bandholders or the bondhofders of bonds issued
under the 1982 MellaRoos Community Facilities Act until assessrrjents are collected on the
tax rolls. However, the Cily may take certain acaons to assame secondary liability for all or
part of 1915 Act Bonds and the 1982 Bonds until such time as forecbsure proceedings are
consummated.
Speciel sssessment bonds payable, as described below, and are not recorded as long-term
liabil'�ies,as these obligations do not constitute a debt or obligation of the Cit�r.
1995 Revenue Bonds
In September 1995, the Palm Desert Financing Authority issued �7,540,000 of
1995 Revenue Bonds. The proceeds fram 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 DisMct 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 6.09�o wfth interest payable semi-annually
' on March 2 and September 2,with principal maturing annually on September 1.
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City of Palm Desert ,
N�tss to Financial Statements(Conttnued)
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Note 16: Special Assessment Debt(Continued) !
Debt Service requirements to maturity are as folfows; �
Year Er�ding /
June 30, Principal Interest Tatal �
, ,
2007 95,000 16,050 111,050 ,
2006 105,000 10,050 115,050
2009 115,000 3,450 118,450 +
Total $ 315,000 $ 29,550 $ 344,550 �
�
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As of June 30, 2006,the principal amount to be repaid by each assessment district to pay '
off the toans from the Financing Authority are as follows:
�
Hssessment Disficf 87-1 315,000 �
Total $ 315,000 '
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1897 Revenue Bonds !
in December 1997, the Palm Desert Financing Authorfty issued $30,915,000 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 Dist►ict No. 91-1 (1995 Bonds). These
bonds were issued under the 1915 Act or the 1982 Mello-Roos Community Facilities Act +
to provide funds for capital improvements in the respective assessment districts. '
Debt service requirements to maturity are as follows: �
Year Ending �
June 30, Principal Iriterest Total �
2007 960,000 1,026,796 1,986,796 �
2008 1,005,000 975,204 1,980,204 �
2009 1,060,000 919,951 1,979,951 �
2010 1,115,000 860,669 1,975,669 '
2011 1,180,000 796,966 1,976,966
2012-2Q16 6,950,000 2,853,868 9,803,868 �
2017-2021 5,955,000 748,050 6,7d3,050 '
Total $ 18,225,000 $ 8,181,504 $ 26,406,504 1
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r City of Palm Desert
� Notes to Financial Statements (Continued)
� Note 16: Special Assessment Debt(Continued)
�
� As of June 30, 2006, the principal amount t4 be repaid by each assessment district to pay
� off the loans from the Financing Authority are as follows:
� NssessmerifDistrid 91-1 $ 18,225,000
� Total $ 18,225,000
�
. 2003 Assessment Revenue Bonds
. In June 2003, the Palm Desert Financing Authority issued $4,423,000 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 pubiic
� Improvements in the respective assessment districts.
� As of June 30, 2006, the principal amount to be repaid by each assessment district to pay
r off the loans from the Financing Authority are as follows:
� Assessment District 84-2 � $ 740,000
� Assessmerrt District 94-3 1,060,000
� Assessment District 01-1 2,160,000
� Tatal $ 3,980,000
� Debt service requirements to maturity are as follows:
�
� Year Ending
June 30, Principal tnterest Total
r
� 200? 180,000 184,279 364,279
2008 185,000 178,001 363,001
r 2009 190,000 171,085 361,085
� 2010 200,00� 163,523 363,523
� 2011 2'10,000 155,323 365,323
2012-2016 1,095,OOQ 627,810 1,722,810
� 2017-2021 880,000 394,706 1,274,706
� 2022-2026 595,000 202,116 797,116
� 2027-2031 445,000 36,684 489,684
� $ 3,980,OQ0 $ 2,113,527 $ 6,093,527
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Cityr of Palm Desert
Notes to Financial Statements(Continued)
Note 16: Special Assessment Debt(Continued)
Assessment District 98-1 Limited Obfigation 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 wfthin the District.
Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet
the scheduled debt service requiremenls are to be included on the regular county tax bills
for the assessed parcels for which there are unpaid assessments. lnterest rates vary from
1.5% to 5.1°!o with interest payabie semi-annually on March 2 and September 2, with
principal maturing annually on September 2.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Irrterest Total
2007 80,000 54,775 134,775
2008 85,000 52,545 137,545
2009 , 85,000. 50,016 135,016 _
2010 90,000 47,103 137,103
2011 90,000 43,84(} 133,8AU
2012-2016 530,000 156,019 686,019
2017-2021 375,000 28,875 403,875
$ 1,335,000 $ 433,173 $ 1,768,173
�
Community Facilities District Na. 2Q05-1
The bonds were issued in an original amount of$50,000,000 in May 2006, to construct
and acquire certaln public facilltles of benefit to the District, provide for the establishment
of a reserve account, provide capitalized interest, and pay the costs of issuance of the
bonds. The bonds are secUred by and payable from a pledge of net taxes derived from
special taxes to be levied by the District on real properties within the boundaries of the
District from the net proceeds of any foreclosure actions brought following delinquency in
the payment of the special taxes, and from amounts held in certain funds under the
indenture. Interest rates vary from 4.0% to 5.5% with interest peyable semi-annually on
March 1 and September 1,with principal maturing annually on September 1,
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r Cfty of Palm Desert
� Nctes to Financfal Statements(Continusd)
r
, Note 16: Specfal Assessment Debt(Continued)
' Debt service requirements to maturity are as follows:
� June 30, Principal IrKerest Totai
, 2007 $ - $ 2,099.054 $ 2,099,054
r 2008 - 2,587,875 2,587,875
, 2009 825,000 2,571,375 3,396,375
2010 860,000 2,537,245 3,397,245
� 2011 895,000 2,500,596 3,395,596
i 2012-2016 5,085,000 11,853,155 16,938,155
, 20't7 2021 6,425,000 10,474,851 16,899,851
2022-2026 8.225,000 8,621,838 16,846,838
� 2027-2031 10,630,000 6,143,689 1fi,773,689
, 2032-2036 13,820,000 2,863,551 16,683,551
2037 3,235,000 88,963 3,323,963
�
, $ 50,000,000 $ 52,342,192 $102,342,192
/ Bond Reserve Requirements:
, At June 30, 2006, the fund balance reserve requirements and actual reserve bafances
� were as follows:
, Requirement Adual
� Assessment District 98-1 $ 133,500 $ 190,333
� 1995 Finanang Authority Revenue Bonds 31,500 199,27Q
, 1997 Fnancing Authoriiy Revenue Bonds 1,822,500 2,133,654
2003 Fnanang Autl�writy Revenue Bonds 338,529 339,886
� CFD 2005-1 Special Tax Bonds 3,392,992 3,425,142
� Note 17: Conduit Debt Obligations
• 2003 Serles A-s22,310,000 Lease Revenue Bonds
�
� In December 2003, the Palm Desert Financing Authoriry (Authority) issued $22,310,000 in
Lease Revenue Bonds. The proceeds of the Bonds were used to: a)finance the construc6on
� of a County animal shelter and related facilities loceted in the unincorporated area of
� Thousand Pafms, Calrfornia; b) finance construction of certain County medica{ clinic facilities
focated in Mecca, California; c) refund the Palm Desert Financing Authority Lease Revenue
r Bonds Series 1996; d) acquire a debt service reserve insurance policy; e) iund capitalized
interest on the bonds; and� pay cosfs of issuance of the bonds.The Authoriiy will lease sites
� rela�ng 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 Sftes and the Facilities
pursuant to a Facilities Lease dated December 1, 2003. Under the Lease,the Counry will pay
� to the Trustee Base Rental Payments in the amount equal to the scheduled debt service of
the Bonds. The Authority wtll assign its right to recelve 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 Authoriiy 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, 2006, the outstanding amount was$21,500,000.
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�
Ctty of Palm Desert
Notes to Financial Statements(Continuedj
NoYe 18: Other Disclosures
The Palm Desert Recreationai Facilitfes Corporation has a net asset deficit of $403,981,
which will be eliminated by increasing revenues through banquet reservations.
Note 19: Canstruction and Other Significant Commitments
Construction Commitments
Remaining
Pro)ect SpenttoDate Commitment
Parks $ 977,936 $ 9,151,340
Low Income Housing 11,648,3$3 8,814,061
Street Resurfacing - 1,211,760
Building Construction 6,187,999 1,079,596
Street improvements 123,295 8,904,302
Freeway On-ramp Improvements 435,302 1,044,274
Bridge Construction 4,007,797 7,821,898
Residential Street Construction 1,232,754 667,246
Sewer Construction - 271,867
Parking Lot Construction 1,419,114 738,706
�$ 26,032,580 $ 39,705,050 ,
Note 20: Contingencles
The City is a defendant in several pending lawsuits of a nature common to many similar
jurisdictions. City management estimates that the potential claims against the City not
covered by insurance resulting from such litigation would not materially affect the firtancial
position of the City.
The City incurs various costs under federal and state grant reimbursement programs and
records the rslated revenue and receivables for grant claims. Such grant claims are subject to
final audit by federal and state agencfes. �
Note 21: Subsequent Evertts
Tax AlfocaEion Revenue Bonds lProiect Area No. 1, as Amendedl 2006 Series A and Series B
Taxa te
On July 6, 2006, the Palm Desert Financing Authority issued $37,780,000 of Tax Allocation
Revenue Bonds (Project Area No. 1, as Amended) 2006 Series A and $24,540,OOfl of Tax
Allocation Rcvenue Bonds (Project Area No. 1, as Amended) 2006 Series B (Taxable). The
Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert
Redevelopment Agency. The proceeds of the Series A loan will be used to assist the Agency
to finance certain redevelopment activities within or of beneftt to Project Area No. 1, as
Amended, pay costs of issuance and pay the premium on a Reserve Fund surety bond. The
proceeds of the Series B loan will be used to reflnance the Agency's obligations Incurred
under a loa� agreement entered into in 1997, pay costs of issuance and pay the premium on
a Reserve �und surety bond. The Series A bonds consist of $26,415,000 Serial Bonds with
interest rates ranging from 4.70°k to 5.25°k payable semiannually on October 1 and April 1.
Bond maturities begin April 1, 2017, and continue annually through 2030. Term bonds in the
amount of$11,365,000 carry an interest rate of 5.00% and mature April '(, 2022. The Series
B bonds consist of$13,220,000 Serial Bonds with interest rates ranging from 5.56%to 5.77%
payable semiannually on October 1 and April 1. Bond maturities begin April 1, 20Q7, and
74
City of Palm Desert
Notes to Financial Statements(Continued)
Note 21: Subsequent Events(Continued)
continue annually through 2012. Term bonds in the amount of$11,320,000 carry an interest
rate of 5.82%and mature April 1, 2016.
Praect Area No. 2 Tax Allocation Refundinq Revenue Bonds 2006 Series A, Tax Allocation
Revenue Caoital Anqrecia6on Bonds 2006 Series B. Revenue Bonds 2006 Serfes C and
Subordinate Tax Allocation Revenue Caaital Anpreciation Bonds 2006 Series D
On Juty 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 2
$41,340,d00 Tax Allocation Revenue Bonds 2006 Series A, $1,567,118 Tax Allocatlon
Revenue Capital Appreciation Bonds 2006 Series B, $7,775,000 Tax Allocation Revenue
Bonds 2006 Series C and $16,936,095 Subordinate Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series D. The Palm Desert Financing Authority foaned the bond
proceeds to the Palm Desert Redevelopment Agency. The proceeds of the Series A, B and C
Bonds will be used to make three loans to refinance the Agency's obligations incurred under a
loan agreement entered into in 1995, finance certain redevelopment activities within or of
benefit to its Project Area No. 2 Reserve Fund surety and pay costs of issuance of the bonds.
The Agency will use the proceeds of the Series D Bonds to finance certain redevelopment
activities wlthin or of benefit to the Project Area, fund a debt service reserve fund and pay cost
� of issuance of the bonds. The Series A bonds consist of $16,250,000 Serial Bonds with
� interest rates ra�ging from 4.00°h to 5.00°� payable semiannually on August 1 and
February 1. Bond maturfties begin August 1, 2007, and continue annually through 2026.
' Term bonds in the amount of 38,225,000 carry an interest rate of 4.80% and mature '
, August 1, 2031. Tenn bonds in the amount of$16,865,000 carry an interest rate of 5.125%
and mature August 1,2036. The Series B bonds consfst of$1,567,118 Capital Appreciation
� Bonds wfth a reoffering yield ranging from 3.85°r6 to 4.08%. Bond maturitles begin
April 1,2007,and continue annually through 2010. The Series C bonds consist of$3,950,000
' Serial Bonds with interest rates ranging from 3.90% to 4.90% payable semiannually on
, August 1 and February 1. Bond maturities bagin August 1, 2010, and continue annualty
through 2026. Term bonds in the amount of$1,910,000 carry an interest rate of 4.90°k and
i mature August 1, 2031. Term bonds in.the amount of $1,915,000 carry an interest rate of
5.00°k and mature August 1, 2035. The Series D bonds consist of $16,936,095 Capital
� Apprecia6on Bonds with a reoffering yield ranging ftom 4.65% to 6.10°�. Bond maturities
i begin August 1, 2007,and continue annually through 2035.
� Proiect Area No. 3 Tex Allocation Revenue Bonds 2006 Series A. Tax Allocation Revenue
� Capital Apnreciatian Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series C
I
On Juty 25, 2006, the Palm Desert Financing Authority Issued its Project Area No. 3
� $11,915,000 Tax Allocation Revenue Bonds 2006 Series A, $383,660 Tex Allocation Revenue
� Capital Appreciation Bonds 2006 Series B and $2,760,886 Subordinate Tax Alloca6on
Revenue Capital Appreciatfon Bonds 2006 Series C. The Palm Desert Financing Authority
1 loaned the bond proceeds to the Palm Desert Redevelopment Agency. The proceeds of the
� Series A �and B Bonds will be used to make two loans to finance various redevelopment
activlties wiEhin or of benefft to Its ProJect Area No. 3, purchase a Reserve Fund surety policy
� and pay the costs of issuance of the bonds. The Agency will loan the proceeds of the
Series C Bonds to finance various redevelopment activitfes within or of benefit to the Project
1 Area,fund a debt service reserve fund and pay the costs of issuance of the bonds.The Series
� A bonds consist of$2,980,000 Serial Bonds with interest rates ranging ftom 4.00% to 4.75%
payable semiannually on April 1 and October 1. Bond maturi6es begin April 1, 2007, and
� continue annually through 2025. Term bonds in the amount of$4,465,000 carry an interest
rate of 4.75% and mature April 1, 2036. Term bonds in the amount of$4,470,000 carry an
� interest rate of 5.00% artd mature April 1, 2041. The Series B bonds consist of $383,660
� Capital Appreciation Bonds with a yield ranging from 5.31°/a to 5.54%. Bond matu�ities are
April 1, 2020, 2021, 2027 and 2028. The Series C bonds consist of $2,760,866 Capital
1
( 75
�
City of Paim Desert
Notes to Financfal Statements(Continued)
Note 21: Subsequent Events(Continued)
Appreciation Bonds with a yield ranging from 4.80% to 6.10%. Bond maturities begin
April 1, 2009, and continue annually through 2034.
Tax Ailocatlon Refundina Revenue Bonds fProiect Area No. 4) 2006 Series A and Tax
Allocation Revenue Capitai Ac�qrecfation Bonds(Proiect Area No.41 Series B
On July 25, 2006, the Palm Desert Financing Authority issued $14,610,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A and $4,633,089 of Tax
Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) 2006 Series B. The
Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert
Redevelopment Agency. The proceeds of the Series A and B Bonds will be used to make iwo
loans to refinance a portion of the outstanding obligations of the Redevelopment Agency
under a loan agreement dated March 1, 1998, finance various redevelopment activities within
or of beneflt to Its Project Area No. 3, purchase a Reserve Fund surety policy and pay the
costs of issuance of the bonds. The Series A bonds conslst of$8,155,000 Serial Bonds with
interest rates ranging from 4.40% to 5.00% payable semiannually on October 1 and April 1.
Bond maturitles begin October 1, 2008, and continue annually through 2026. Term bonds in
the amount of$2,200,000 carry an interest rate of 5.00% and mature October 1, 2029. Term
bonds in the amount of $4,255,000 carry an interest rate of 5.00% and mature
October 1, 2034. The Series B bonds consist of 54,663,089 Capital Appreciation Bonds with
a yield ranging from 4.14% to 5.56%. Bond maturities begin October 1, 2009, and continue
annually through 2034. � . -
Highlands Underqroundinc� Assessment Distrfct No. 04-01, Limited Obli�ation Improvement
Bonds. Series 2006
On August 8, 2006, the City Palm Desert issued $3,165,d00 of Limited Obligation Bonds. The
proceeds of the Bonds will be used to finance the construction of the utllfty undergrounding
and pay the cost of issuance. The debt service on the bonds is to be paid by assessments
secured on the property tax rolls of those properties benefiting from�the�improvements. Bond
maturities begin September 2, 2007, and continue anrtually through 2036. The interest rates
of the bonds range from 3.85%to 5.15°k. The City of Palm is the only bondholder on record of
the bonds.
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CITY OF PALM DESERT SCHEDULE 1
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30,2006
Variance with
Final Budget
Budget Amounts Actual Positive
Q�iginal Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 63,298,784 $ fi3,298,784 $ 63,298,784 $ -
Resources(Inflowe):
Taxes 33,242,000 34,142,000 39,699,104 5,557,104
Licenses and permits 1,300,000 1,600,000 2,200,513 600,513 �
Inte�govemmental revenues 4,366,692 4,566,692 2,374,134 (2,192,558)
Chargesforservices 602,500 1,002,500 1,994,163 991,663 �
Fines and forfeitures - 100,000 170,106 70,106
Use of money and property 1,400,000 1,400,000 2,636,050 1,236,050 �
Miscelianeous revenues 670,000 670,000 757,340 87,340
Transfersfromotherfunds 1,150,000 1,150,000 1,083,589 (66,411�
Amounts Avalleblo for Approp�iation 106,029,978 107,829,876 1i4�213,783 6,283,807
Charges to Appropriation(Outflow):
General govemment 12,651,145 14,649,864 12,958,977 1,690,887 �
Public safety 16,759,699 15,880,114 15,019,337 860,777 �
Publicvwrks 7,417,600 9,5$7,787 6,899,913 2,687,874 :
Parics,recreation and culture 4,231,250 4,331,715 3,304,867 1,026,848 �
Capital outlay - 3U5,273 305,273 - {
Transfersto atherfunds 1,581,OOU 1,581,000 1,375,048 205,952 �
�
Total Charges to Appropriation 42,640�694 46,33b,753 39,863,415 6�4T2,338 �
c
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Budgetary Fund Balance,June 30 a 63,389�282 $ 61,594,223 $ 74,350,368 � 12,756,145 �
77 �
CiTY OF PALM DESERT SCHEDULE 2
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX—SPECIAL REVENUE FUNO
YEAR ENDED JUNE 30,20Q6
VaHance with
Flnal Budget
Budget Amoutrts Actual Positive
OHglnal Final Amounts (Negative�
Budgetary Fund Balance, July 1 $ 1,187,278 $ 1,167,278 $ 1,167,278 $ -
Resources(Inflows):
Taxes 4,800,000 5,450,000 5,654,039 204,038
Intergovemmental 682,000 662,000 715,247 53,247
Use of money and property - - 59,499 59,499
Other - - 103,593 103,593
7ransfers from other funds 1,000,000 1,000,000 982,498 (17,502)
Amounts Avaflabie forAppropriatfon 7,629,278 8,279�278 8,682,1b4 402,876
Charges to Appropriatton(DuMow):
Public safety 6,441,600 6,920,088 6,637,525 282,563
CapitalOutlay - 249,000 248,473 527
Total Charges to AppropMation 6,441,600 7,169,088 6,885,998 283,090
Budgetary Fund Balance,June 30 . $ 1,187,678 S 1,110�180 S 7,786,166 $ 685,966
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� CITY OF PALM DESERT
1 Note to Required Supplementary Information
� June 3Q, 2006
� Budgets and Budgetary Accounting
�
' The City uses the foitowing procedures in establishing the budgetary data reparted 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 foiVowing July 1.
� 2. Public hearings are conducted to obtain taxpayer comments.
' 3. The budget is subseguently adopted through passage of a resolution.
�
, 4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental
level,which is the iegal level of controi.
�
' 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
pepartment. The City Council approves alt other changes.Annuaf appropriation amounts _
� lapse at year-end.
� 5. Encumbrances and continuing approprietions 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 Untted States of Amerlca for al! govemmental 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 foNowing special revenue funds had fegally
adopted budgets during the current fiscal year:
r Prop A Fire Tax
� Trafflc Safety
1 Gas Tax
Housing Mltigation Fees
� Cammunity Development Block Grant
EI Paseo Assessment DisVict
� Clty-Wide Buslness License
� Landscape and Lighting Districts No. 1 -15
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» GENERAL FUND
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GENERAL FUND �
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The General Fund is used to account for all financial resources traditionally associated with government, «
except those requfred to be accounted for in another fund. It is the primary operating fund that inciudes �
the operating budgets for a!I the departments and the maJority of the City's tax revenues.
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� CITY OF PALM DESERT SCHEDULE 3
�
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
� GENERAL FUND
` YEAR ENDED JUNE 30,2006
� Variance with
' Finsl Budget
Budget Amounb Actual PosRive
' Or�lnal Finel Amounts (Negative)
' Budgetsry Fund Balance,July 1 $ 63,298,784 $ 83,208,784 � 83,208,784 $ -
Resources(Ir�fbws):
' Taxss:
Propertytawas 3,502,000 4,102,000 6,130,278 1,028,278
� Property transfer tax 450,000 550,000 1,030,412 480,412
' Property tax In Ileu - - 3,131,088 3,131,686
Timeshare mlGgelbn fee 500,000 500,000 Q81,187 1e1,187
` Ssfestax 17,516,000 17,515,000 17,778,928 291,G28
Business I�ense tax 1,100,000 1,100,000 1,242,721 142,721
� Job valuaUon fees - - 84,G84 Q4,984
r Transfentoccupancytax 7,600,000 7,800,000 8,028,1�1 226,101
Franchises 2,675,000 2,576,000 2,b60,917 5,917
� Penaltles and{nterest on taxas - 53,810 63,910
� TotalTaxes 33,242,000 34,142,000 3a,089,104 6,657,104
' Ltcensea and Permks:
� Building permits � 1,300,000 1,800,000 1,961,476 361,479
, Grading perm(ts - - 2,254 2,25d
Valet parking permits - - 400 400
i Encroachment permlts - - 152,864 152,854
Misceqaneous permits - - 11,353 11,353
� Business regulatory parmits - - 72,373 72,373
� Total Lioer�aes ard Permks 1,300,000 1,Q00,000 2,200,619 800,513
I Intergovammantal Revenues:
� State granta - - 11,291 11,201
' Motor vehicle in-Ileu fees 2,880,000 3,080,000 358,203 (2,701,797)
Off highway in-flau fees - - 7b1 761
� MontMy parkfnp bail - - 21,043 21,043
ReimbursementRDAcosts - - 1,283,188 1,283,186
� Otherroirnbursementa 1,bOd,Eo2 1,500,6fl2 71G,�E0 (787,032)
� Total Intsrgowrnmental Rew�ws 4�386,N2 4,b86,092 2,374,934 (2,192,b68)
�
Chargea for 8ervices:
� Subdivisionfees - 400,000 931,452 531,452
' Zoningfees - - 110,21e 110,216
Plan chack fees 602,600 802,b00 702,857 100,357
� Sale of maps and publicatkns - - 1b,298 15,288
NYcrofilm f�aes - - 3T,514 37,514
� Otherfees - - 198,823 198,823
� 002,b00 1,�04,183 961,683
Totet Charges for 3ervices B02,S00 i,
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Fines and ForieRures:
� Vahk�e code flnes - 100,000 89,818 (30,184)
� Munfcfpalcourtflnes - - 100,260 100,290
Totel Fines and forfeitures 100,000 170,108 70,1�6
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� CITY OF PALM DESERT 3CHEDULE 3
� BUDGETARY COMPARISON SCHEDIiLE BY DEPARTMEM'
M GENERAL FUND
� YEAR ENDED JUNE 30,2006
N Variance wRh
� Final Budgot
Budget AmoutHs Actual Positive
N Oripinal Final Amounbs (NagatNe)
� Budgetary Fund Balance,July 1 $ 83,298,784 $ 83,298,764 $ 83,268,784 3 -
Resources(Irtfbws}:
� Taxes:
Propertytawas 3,502,000 4,102,000 5,130,278 1,028,278
, Propertytransfertax 450,000 550,000 1,030,412 480,412
� Propertylaxinlieu - - 3,131,888 3,131,666
Tlmeahare mitigatbn fee 500,000 500,000 8C1,187 1@1,187
. Safestax i7,5t6,000 17,515,000 17,778,C26 2@1,928
Business license tex 1,100,000 1,100,000 1,242,721 142,721
� Job valuatlon fees - - 84,G84 Q4,984
� Transfentor,�upancytax 7,800,000 T,B00,000 8,028,101 228,101
Franchises 2,575,000 2,576,000 2,680,817 5,917
iPenaltJes and fnterest on texes - - 53,610 53,910
, TotaiTaxes 13,242,000 34,�42.000 30,969,104 5,6b7,104
� Lfcenses and Permfts:
, Building permits � 1,300,000 1,Q00,000 1.961,479 361,479
Grading permits - - 2,254 2.264
, Valetparking permits - - 400 400
, Encroachment pertnfts - - 152,854 152,854
NGscekaneous pertnits - - 11,353 11,353
r Business reeu{atory permits - - 72,373 72,373
� Total Lla�nses�nd Permits 1,300,000 1,Q00,000 2,204,b1S 800,613
, IntergovernmenMl Revenuas:
, Sfate granta - - t 1,261 11,291
' Nbtor veh�le in-I(eu tees 2,880,000 3,080,000 358,203 (2,�01,797)
Off highwey iMieu fees 751 751
, Monthly parking baN - - 21,043 21,043
ReimbursementRDAcosts - - 1,253,180 1,283,186
r Otherrelmbursements 1,b08,6D2 1,508.902 716,8Q0 {78T,032)
, Total Intergovemmontal Revonuoa 4,888,662 4,688,8�2 2,374,754 (2,192,668)
, Chargas tor Services:
, Subdivislon fees - 400,000 931,452 531,452
i Zoninp feas - - 110,219 110,216
Plan check fees 002,5Q0 802,500 702,857 100,357
, Sale of maps and publica8ons - - 15,298 1b,268
AMcrofilm t�es - - 37,514 37,514
I Other fees - - 188,823 196,823
, Total Chargas tor Servkes 902,600 1,002,800 1,�84,183 681,883
�
Fines and ForioEtures:
� Vehiclecodeflnes - 100,000 89,818 {30,18A)
t Municipal court flnes - - �00,290 �00.290
� Tota1 Finss end ForfeRurea - 100,000 1T0,106 70,1�8
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CITY OF PALM DESERT I
SCHEDULE3
BUDGETARY COMPARISON 3CHEDULE BY DEPAR'i'MENT 1
GENERAL FUND �
YEAR ENDED JUNE 30,2006 '
Variance with '
_ BudeetAmounts FinalBudget �
Actual PosiEive
Use of Money and Property: _ ����1 Finsl Amoimts (Negative) �
Interest Income $ 1,400,000 '
Intereston advances $ 1,400,U00 $ 1,541,398 $ 141,388
Interest on notes receivable � - 1,046,018 1,048,018 �
� - 48,684 48.684
Total Use of Money and Property 1,400,000 _ 1,400,000 2 ggg p6p �
- � . _ 1,236,050 �
Other Revenues:
Code compliance �
Strong motlon instrumentfee � 8�981 8,981
Special InvesUgatbn fee � 31,145 31,745 �
Certfficate of compliance fee " 2,030 2 p� �
Nufsance abetemenf tax � - 2,625 2,525
Abandoned vehble abatement ' 18,878 �g,g�g ,
Rental income ' - 83,442 83,442
Other revenue � - 422,417 422,417 •
870,000 870,000 187,642 _ (482,058) �
Total Ofher Revenues
670,000 • 870,000 767,340 87,340 A
Transfers from other funds 1,150,000
1,150,00p 1,083,589 _ (88,411) �
Amounts Available for Appropriatan 108,02a,978 107,92p,976 114,213,783 �
Charpes to Appropriatbn(Outflow): - g��,807 �
Gerwral Government-bepartmental: �
C��u� 273,b50
Cityclerk 287,�b0 2�5,8b6 11,204
Le9lslatlwe advocacy 487,300 484,188 483,788 �
e1 � 403
City attomey 81,� 42,182 18,838 �
Lepal speclal services ��'� ����� 144,000
City manager �6��0 885,000 50.5,224 98,776 �
Communityservices 743,500 811,100 787,858 23,qq2 �
Finance 1,082,800 1,719,988 f,4fl4,453 222,533
Audltlng 1,454,700 1,495,477 1,465,715 39,762 �
Human resources ����0 73,400 �3.3gp 2�
General aervices �9�� 7eQ,513 708.869 57,844 �
Data processing 1,048,400 1,0 0,078 ��1 D0,758 174,835 �
Unemployment insurance 948,306 70,788
Insurance 6�0� 8,100 7,852 �qg �
Community promotlons 687,b00 507,500 282,585 304,915
Communitydev�ebpment 2,�27,420 2,p42�2�� � 88��48 355�23 �
Office of Energy Nlengement 911,400 808,28g 882,928 46,38� �
Market(ng - 85,500 34,010 51,460
970,608 1,254,483 1,039,737 214,728 �
Total General Government-Departmantal __ 11,883,688 13,726,40T _12,034,b29 1,8a0,E78 �
Genera(Governtnent-Nondepartmental: �
Contributlons to other agencies
787,557 624,457 _ 924,448 9 �
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�
CRY OF PALM pE3ERT SCNEDULE 3
BUDGETARY COMPAWSON SCHEDUlE BY DEPARTMENT
GENERAL FUNO
YEAR ENDED JUNE 30,2006
� Variance with
Final Budget
Budgat Amourrts Actual PosRive
� Original Final Amounts (Nepative)
Pub(k Saf�ety:
' Police seMces $ 12,488,596 $ 11,373,681 $ 11,032,4G0 $ 341,191
� Animal regulaUon 240,000 240,000 127,843 112,157
Tratfic safety 813,000 746,886 372,989 373,898
� Development services 709,800 708,093 7G0,148 7,947
Building and safety 2,838,300 2,721,875 2,895,889 25,788
, Total Public Safety 18,769,8�9 15,�0,114 16,019,337 s80,777
i Public WoHcs:
AdmintstraUon 2,842,400 2,883,828 2,823,350 40,287
� Streetmaintenance 1,829,C00 1,841,841 1,681,b83 180,058
� Streetrasurtacing 1,300,000 3,080,6�5 1,277,554 1,803,041
Curb atxS gutter 200,000 210,581 190,8C6 18,716
i Parking bt 100,000 1d0,582 17,592 142,900
Storm drain 100,000 100,000 1,998 98,004
� Strfpping 150,000 187,750 2,750 185,000
i Corporate yerd 84,500 81,048 � 40,984 11,084
Equipment 253,000 428,000 288,185 141,835
� Bu�ding maintenance 553,300 546,104 46fl,895 89,269
Portola wmmunitycenter 74,800 74,800 87,831 7,189
� Storm water permlt • 50,000 50,000 40,558 9,442
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Total Pubik Works 7,417y800 9,687,7a7 6,8�,�13 2,887,874
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� Parka,Recreation and Culture:
Park mafntenance 1,781,000 1,831,794 1,092,614 734,180
� Civic center park 1,226,800 1,259,b02 1,008,084 251,418
Landscape service 838,500 84a,OG0 838,384 9,512
� Visitors center 580,1b0 664,323 b67,585 28,738
� Total Parlcs,Recreation and Culture 4,231,250 4,331,71b 3,304,807 1,028,848
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Capital Outlay:
� Departmental capltal outlay - 305,273 305,273 -
� Totel Capital Outiay - 306.2�3 30b,273 -
M
Transfers to other tunds 1,581,000 1,581,000 1,3�5,048 205,952
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Totul Chergss to Appropriatton 42,640,894 48,336,7b3 89�883,d16 8,472,338
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� Budgetary Fund Balance,June 30 S 83,386,282 S 81,694,228 s 7��� S 12,�768,1�45
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CITY OF PALM DESERT SCHEDULE 4
COMBININC3 BALANCE SHEEf
OTHER GOVERNMENTAL FUNDS
JUNE 30,2006
Total
Other
Special Cepltal Govemmental
Revenue Projects Funds
Assets:
Pooled cash and investments $ 37,214,744 $ 20,289,801 $ 57,504,545
Receivables:
Accounts 337,756 689,586 1,027,342
Ir�terest 67,126 37,386 104,492
Loans 44,145 - 44,145
Prepeld costs - 50 50
Due from other govemments . 1,341,316 8,015,402 7,356,716
Advances to other funds 854,000 12,765,000 13,419,000
ResMcted assets:
Cash and investments with
fisca!agents 313,503 5,122,473 5,435,976
Total Asaets and Other Debits � 39,872,690 S 44,919,678 $ 84�892,268
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Uabilittes and Fund Balances:
Liabilitles: .
Accounts payable $ 2,394,429 $ 2,139,481 $ 4,533,910
Acccued liab�{ities i07,8U6 2,300 110,108
Uneamed revenues � 438,418 42,475 478,893
Deferred revenues 50,748 1,087,E65 1,118,413
Deposits payable 313,503 280,18�1 593,687
Total Lfabilftles 3,302,904 3,532,105 6,835,009
Fund Balances:
Reserved:
Reserved for encumbrances 9,046,013 17,458,705 26,504,718
Reserved for contfnuing approprietion 12,957�876 4,283,482 17,241,358
Reserved for prepald costs and deposits - 50 50
Resecved for advances to other funds 654,040 12,765,000 13,419,000
Unreserved:
Designated for capital ouNay - 6,880,336 6,880,336
Designated for special revenue purposes 14,011,797 - 14,011,797
Total Fund Balences 36,869,686 41,387�573 78,057,259
Total Liabilitles and Fund Balances a 39,972,590 S 4d,919,678 $ 84,892,268
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CITY OF PALM DESERT SCHEDULE 5
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 3�,2006
Total
Other
Specfal Capital Govemmental
Revenue Projects Funds
Revenues:
Taxes $ 8,926,350 $ - $ 8,926,350
Speciaf assessments coilected 257,466 11,570 269,036
Licenses and permits - 484,902 484,902
Intergovemmental revenues 1,923,496 6,082,736 8,006,232
Rental income 4,733,085 - 4,733,085
Use of money and property 1,261,153 1,460,327 2,721,480
Fines and forfeitures 140,762 - 140,762
Miscellaneous 747,071 173,487 920,568
Total Revenues 17,989,383 8,213,032 26,202,415
Expenditures:
Current:
General govemment 8,540,576 472,983 9,013,559
Public safety � 58,511 • - 58,511
Public works 836,511 2,197,432 3,033,943
Capital outlay 7,780,710 6,211,745 13,992,455
Tctal Expenditures 17,216,308 6,882,160 26,098,468
Excess(Deficlency)of Revenues
Ove�(Under) Expenditures 773,075 (669,128) 103,947
Other Financing Sources(Uses):
Transfers in 79,748 339,636 419,384
Transfers out (1,088,843) (7,198) (1,096,041)
Sale of property - 202,234 202,234
Total Other Financin�Sources
(Uses) (1,009,095) 534,672 (474,423)
Net Change in Fund Balances (236,020) (134,456) (370,476)
Fund Bafances, Beginning of Year 36,905,706 41,522,029 78,427,735
Fund Balances, End of Year S 36,689,686 S 41,387,573 S 78,057,259
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/ OTHER GOVERNMENTAL FUNDS-SPECIAL REVENUE
�
1 Special Revenue Funds are used to account for proceeds of speciflc revenue sources other than
, expendable trust that are legally restricted to expenditures for specific purposes.
/ Traffic Safetv Fund-Traffic and court fines are coliected 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
1 the eligible expenditures pertnitted by law.
� Gas Tax Fund -Portions of the tax rate per gallon levied by the State of Caiifornla on alt gasoline
� purchases are allocated to cities throughout the 5tate. These funds are restricted to expenditure
, for transit and street-related purposes.
1 Measura A Fund - In 1988, Riverside County voters approved a half-cent sales tax, known as
Measure A, to fund a variety of highway improvernents, local street and road maintenance,
1 commuter assistance and speGalized 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.
, Housin4 Miti�ation Fee Fund-This fund is used to account for fees oollected ftom construction of
/ commercial and o�ce buildings for low and moderate income miUgation purposes to be used
, strictty for projects and programs that benefit the low and maderate income households.
/ Communitv Develooment Block Grant Fund - This fund is used to account for the recelpts and
, expenditures of CDBG funds received from the U.S. Department of Housfng and Urban
Development.
, New Construc�on Tax Fund - This fund is used to account for tax collected upon application to
/ the City far a building permit from evary persoNentity for the construction of any new bufiding,
, addition or traller space in the city according to a fee schedule. Its use is restricted for the
acquisition and development of public faclllties such as parks,playgrounds and publlc structures.
/
, Planned Drainagg Fund - This fund is used to account for off-site drainage fees based on an
established fee schedule collected prlor to approval af the flnal map in the case of land being
, subdivided or prior to the issuance of a building permit in the case of constructlon or improvement
of subdfvlded land.
/
, Pa�lc and Recreation Facilities Fund - This fund Is used to account for fees collected for
residentiati and subdivisSon cievelopments collected either a1 the time grading permits are paid or
� prfor to the approval of the flnal map. Its use is restricted for expendftures related to park
, development, maintenance and equipment.
, Traffic Si�nals Fund - This fund is used to account for fees collected for residentia{, commercial
and Industrial developments either at the time grading permfts are paid or prior to the approval of
� the final map. Its use is restricted for expendftures related to the acqulsition and maintenance of
, traffic signals.
, Recvclin4 Fund - This fund is used ta account for resources resulting from lower landfill tipping
fees of$8.50 per ton, whfch took effect in July 1996. Due to Ilmlted landfill resources, it will be
� used for the implementatlon of appropriate long-range plans to be determined by the City Council
. for munlcipaf sol(d waste disposal.
� Public Safetv Police Grar�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.
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OTHER GOVERNMENTAL FUNDS-SPECIAL RENENUE M
(CONTINUED) «
Library Foundation Fund - Thls fund is used to account for resources set aside for the specific r
purpose of purchasing library books and materials for the Multi-Agency Library Foundation, a �
non-profit entity.
EI Paseo Assessment Disfrict Fund - 'fhis fund is used to coilect assessments on all business M
establishments located within the boundaries set for the EI Paseo parking and business �
improvement area based on a fee schedule established for the va�ious types of bus(nesses. M
Collections are made fn the same manner and at the same time as the City business license fees.
Proceeds from all charges are used for the promotion of bdsiness activities in the area. M
Air Qualitv Manaaemgnt Fund - This fund accounts for receipts from South Coast Air Quatity �
Management District, one-third of which is disbu�sed to the Coachella Valiey 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 Coilege of �
the Desert Alumni Association Fair collected from all street falr vendors at$2,00 per dey for each �
space. Fifty percent of the proceeds are spent for ciry-wide business promotfon and the other fifty
percent is transferred to the General Fund for partial business licensing cost recovery. M
Various Landscaae and Liahtinq District Funds - These funds are used to account for M
expendltures and receipts of property taxes a�d service fees levied to the property owners in the �
various landscaping and Iighting districts, which were formed to provide landscaping and street
lighting maintenance. individual landscaping and Iighting funds are set up for Districts No. 1 M
through 15. �
AIPP Maintenance Fund - Th(s fu�d is used to account for monies set aside to maintain the M
artwork in the City of Palm Desert. �
Chi1d Care Proraram Fund-This fund Is used to coilect funds from developers for the purpose of �
providing child care programs.
�
Golf Course Maintenance Fund - This fund is used to offset the cost of capita) improvements, �
equipment purchases, perimeter mafntenance, pay off assessments and other nonrecurring costs
that wilf arise as a result of the new Desert Willow Golf Course Resort. Funding sources for the �
Goff Course Maintenance Fund are co{{ections from the IROC time-share project. �
Fire Facil(ties Restoratlon Fund - This fund is used to collect funds from developers for the �
purpose of construction, restoration and purchase of equfpment for flre stations within the City.
�
Redevelopment Aaencv Housin4 Authoritv Fund -This fund is used to account for revenues and �
expenditures re(ated to rental units owned by the Housing Autharity.
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. CITY OF PALM DESERT
COMBININO BALANCE 3HEE7
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30,2006
Housing
Mitigation
Traffic Safety Oas Tax Measure A Fee
Assets:
Pooled cash and investments $ - $ - $ 7,036,783 $ 1,054,875
Receivables:
Accounts - - - -
Interest - - - -
LoanS - - - -
Duefrom other governments 12,833 148,370 1,127,746 -
Advancesto otherfunds - - - -
Restricted assets:
Cash and investments with
fiscai agents - - - -
Total Assets a 12,833 S 148,370 s 8,184.529 S 1,054,87b
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UabiUtfes and Fund Belances:
Liabllities:
Accounts peyable � - $ - 3 55,92U $ -
Accruad liabllities - - - -
Unearned revenues - - 276,354� -
Deferred revenues - - 6,603 -
Deposits payabte - - - -
Totel Liabilitios - - 337,877 -
Fund Belances:
Reserved:
Reserved for encumbrances - - 1,407,784 -
Reserved for continuing appropriatlon - - 6,992,012 -
Reserved for advances to other funds - - - -
Unreserved:
Deslgnated for speciai revenue purposes 12,833 148,370 426,856 1,054,875
Tota!Fund Balances 12,833 148,370 7,826,652 1,054,87b
Total Linbilltlea and Fund Belances S 12,833 S 148�370 s 8,164,528 S 1,054,875
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3CHEDULE6
Commun(ty New Park and
Development Construction Planned Recreatfon Traffic
Block Grant Tex Drainage Facilities Signais Recyclin�
$ 109,104 $ 1,134,752 $ 5,621,419 $ 5,670,974 $ 1,279,599 $ 5,002,061
- - - 164,713 - 152,165
44,145 - - - - -
14,125 - - - - 26,488
- 654,000 - _ _ _
S 167,374 S 1,788,752 S 6,621,499 S 6,836,687 s 1,279,b99 S 5,180,714
$ 1,630 $ 1,098,227 $ 30,513 $ - $ 2,167 $ 39,366
t
' - - - - 1,312
- - ' - - 114,166 22,473
44,145 - - _ _ _
45,775 1,098,227 30,613 - 118,333 63,140
339,116 1,126,036 534,110 - 750 114,846
- 179,377 3,700,750 2,340,355 745,382 -
- 664,000 - - _ .
(217,618) (1,288,888) 1,3b6,04fi 3,495,332 417,134 5,002,728
t21,599 8�0,52b 6,690,906 5.835,687 1,163,266 6,117,574 �
S 167,374 S 1,788,762 $ b,621,419 S 5,838,687 s 1,2T9,599 3 5,180,714 �
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CITY OF PALM DESERT
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS �
JUNE 30,2006 �
I
Public EI Paseo Air City YVide (
Safety Police Library Assassment Quality Business
Orants Foundation Dist�ict Management License I
Assets:
Pooled cash and investments $ 33,435 $ - $ 40,922 $ 125,957 $ 90,463 �
Receivables:
Accounts - - - 14,840 1,570 +
Interest _
Loans _ _ _ ' i
Due from other governments _ _ _ _ : f
Advancesto otherfunds _ . _ _
Restricted assets: � �
Cash and investments with
fiscal agents . _ _ _ �
Totnl Assets S 33,43b $ - s 40,922 S 140,797 S 92 033 '
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Liabilities and Fund Belances:
Liebl lities: �
Accounts peyeble $ 22,114 $ _ $ 5,Ob5 $ 13,482 $ 1
Accrued ifabilities _ -
Unearned revenues � _ _ _ . _ - ,
Defened revenues _ _ - - '
Deposifs payable . _ _ �
Total Liabilitles 22,114 6,055 13,482 _ �
Fund Balances: �
Reserved: '
Reserved for encumbrances . _
Reserved for continufng appropriation . _ _ _ � �
Reserved for advances to other funds _ _ _ _ _ �
Unreserved:
Designated for speciel revenue purposes 11,321 - 35,867 127,315 92,033 �
Total Fund Belances 11,321 - 33,867 127,315 92,033 �
Total Lfebilities and Fund Balances a 33,435 S - s 40.922 $ 140,797 S 92,033 I
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SCHEDULE6
Redevatopment Totai
Landscape Agenc Non-Major
end Lighting 'AIPP Child Care Golf Course Fire Facilities Hous ng Speclal Revenue
Districts No.1-1b Maintenance Progrem Maintenance Restoration Authority Funds
$ 463,432 $ 156,117 $ 283,508 $ 2,726,468 $ 130,368 $ B,255,507 $ 37,214,744
. _ _ - - 4,468 337,756
_ _ . - - 67,126 67,126
. _ - - - - 44,145
11,754 - - - - - 1,341,316
_ _ . _ _ - 654,000
. . - - - 313,b03 313,503
E 475,186 S 155.117 S 283,608 S 2,726,468 S 130,368 s 6,64�,804 S 39,972,590
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$ 28,159 $ - $ 13,500 $ 12.715 $ - $ 1,071,592 $ 2,394,429 �
. _ - - - 106,494 107,806
. . _ . - � 24,425 436,418
_ _ _ - - - b0,748
_ _ - - - 313,503 313,503
28,189 - 13.600 12�715 - 1.516,014 3,302,904
10,100 - 32,500 300 - 5,480,472 9,046,013
- - - - - - 12,967,876
_ _ _ _ - - 654,000
436,927 155,117 237,508 2,713,453 130,368 (355,882) 14,011,797
447,027 165,11T 270,008 2,T13�763 130,368 6.124,590 36�689,B86 �
S 475,188 S 155,117 S 283,508 Z 2,726,468 S 130,368 S 6,B40,604 S 39,972,590 �
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CITY OF PALM DESERT ~
M
COMBINING 3TATEMENT OF REVENUES, �
EXPENDRURES AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS �
YEAR ENDED JUNE 30,2006
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Housing r
MiUgatfon r
Trafflc Safety Gaa Tax Measure A Fee �
Revenues:
Taxes $ - $ - $ 2,825,202 $ 1,033,888 �
Special assessments collected - - - .
Intergovemmenta{revenues - 1,137,815 223,335 - r
Rental income - - - -
Use of money and property 2,905 20,853 189,356 20,987 �
Fines and forfeftures 140,762 - - - �
Miscellaneous - - - -
�
Total Revenues 143,687 1,158,6B8 3,237.893 1,054,875 �
Expenditures: �
Cument:
General govemment - - - - �
Public safety - - - - �
Public worics � - 158,004 - -
Capital outlay - - 1,251,684 - �
Total Expenditures - 158,004 1,251,684 - �
Excess(Deflcfency)of Revenues r
Over(Under)Expenditures 143,667 1,000,864 9,986,209 'l,054,875 �
Other Financing Sources(Uses): �
Transfers in - - - -
Transfers out (145,902) (937,884) - - �
Totat Other Finandng Sources �
(Uses) (145,902) (937,684) - - �
Net Change in Fund Balances {2,235} 82,984 1,986,249 1,a54,875 �
Fund 8alances,Beginning of Year 15,�88 85,390 5,840,443 - �
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Fund Balances,End of Year S 12,833 S 146,370 S 7.826,652 t 1,054,875 �
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SCHEDULE 7
Community New Park and Public
Development Constructfon Planned Recreation Traffic Safety Popce
Block Grarrt Tax Drainage Facilides Signals Recycling Grants
$ - $ 950,016 $ 322,430 $ 2,290,439 $ 159,983 $ - $ -
155,840 - - 164,713 - 61,629 120,412
8,227 184,144 179,545 121,621 35,276 158,363 1,795
133,719 - - - 10,834 592,518 -
295,786 1,134,160 501,975 2,576,773 206,093 812,510 122,207
241,880 - - - - 386,731 -
- - - - - - 58,511
- - 163,453 - - - -
- 6,227,858 92,861 130,482 10,834 - 66,991
241,880 6,227,858 256,314 130,482 10,834 386,731 125,502
53,906 (5,093,698) 245,661 2,446,291 195,259 425,779 (3,295)
53,906 (5,093,698) 245,661 2,446,291 195,259 425,779 (3,295)
67,693 5,784,223 5,345,245 3,389,396 968,007 4,691,795 14,616
S 121,599 S 690,525 = 5,590,906 S 5,835,687 S 1,163,Z88 S 3,117,574 S 11,321
97
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANOES IN FUND BALANCES
NONMAJOR SPEC{AL REVENUE FUNDS
YEAR ENDED JUNE 30,2006
EI Paseo Air City VYfde
Library Assessment Quality Business
FoundaHon District Management License
Revenues:
Taxes $ - $ - $ - $ 46,508
! Special assessments collected = 257,466 - -
� Intergovemmental revenues 59,752 -
� Rental income - - - -
Use of money and property - - 3,185 3,083
Fines and forFeitures - - - _
Miscellaneous - - - _
Totai Revenues - 257',466 62,937 49,591
Expendltures:
Current:
General govemment - 256,944 26,888 43,500
Public safery - - - _
Public works - - - _
Capital outlay - - - .
Total Expenditures 258,944 26,888 43,500
Excess(Deficiency)of Revenues
Over(Under)Expenditures - 522 38,049 6,091
Other Financing 3ources(Uses):
Transfers in - - - -
Transfers out (5,257) - - -
Total Other Financing Sources
(Uses) (5,257) - -
Net Change in Fund Balances (5,257) 522 36,049 6,091
Fund Balances,Begfnning of Year 5,257 35,345 91,266 85,942
Fund Balances, End of Year S S 33,867 S 127,315 S 92,033
' 98
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� SCHEDULE 7
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Redevelopment Total
� Landscape Agency Non-Major
� and Ugtrttng AtPP Child Care Golf Course Fire Facilities Housing Speclal Revenue
Districts No.1-15 Mafntenance Program Nfalntenance Restorafion Authority Funds
I
( $ 483,170 $ _ $ 247,624 $ 437,760 $ 129,330 $ _ $ 8,926,350
257,466
� - - - - - - 1,923,496
- - - - - 4,733,085 4,733,085
1 5,755 6,339 3,677 89,289 1,038 227,715 1,261,153
1 - - - - - 140,782
10,000 747,071
� I88,925 6,339 251,301 527,049 130,368 4,970,800 17,989,383
I
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� - 72,464 95,500 521,343 - 6,895,326 8,540,576
- - - - - - 58,511
1 515,054 � - - - - - 836,511
' - - - - - - 7,780,710
( 515,054 72,464 95,500 521,343 6,895,326 17,216,308
1
' (26,129) (66,125) 155,801 5,706 130,368 (1,924,526) 773,075
I
72,550 7,198 - - - - 79,748
� - - - - - - (1,088,843)
�
� 72,550 7,198 - (1,009,095}
� 46,421 (58,927) 155,801 5,706 130,368 (1,924,526) (236,020}
� 400,606 214,044 114,207 2,708,047 - 7,049,118 36,905,706
' 3 447,027 S 155,117 S 270,008 = 2,713,753 s 130,368 S 5,724,590 S 36,669,686
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CITY OF PALM DESERT SCHEDULE 8-A
i
BUDGETARY COMPARISON SCHEDULE �
TRAFFIC SAFETY �
YEAR ENDED JUNE 30,2006
1
Variance with
Final Budget �
Budget Amounts Actual Posittve �
Origtnal Final Amounts (Negative)
Budgetary Fund Balance,July 1 $ 15,068 $ 15,068 $ 15,068 $ - (
Resources(Inflows): �
Use of money and property 5,000 5,000 2,905 (2,095) �
Fines and forfeftures 200,000 200,000 140,762 (59,238)
Amounts Available for AppropNation 220,068 220,068 158,735 (61,333) (
Charges to Appropriation(Outflow): �
Transfers to other funds 205,000 205,000 145,902 59,098 �
Total Charges to Appropriation 205,000 205�000 145,902 59,098 �
Budgetary Fund Balance,June 30 a 15,088 a 15,068 a 12,833 � 2,235 �
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� CITY OF PALM DESERT SCHEDULE 8-B
� BUDGETARY COMPARl30N SCHEDULE
� GAS TAX
� YEAR ENDED JUNE 30,2006
� Variance with
� Final Budget
Budget Amounts Actual Positive
� Original Final Amounts (Negative)
� Budgetary Fund Balance,July 1 $ 85,390 $ 85,390 $ 85,390 $ -
� Resources(Inflows):
Intergovemmental 880,000 1,101,000 1,137,815 36,815
� Use of money and property 15,000 15,000 20,853 5,853
� Amounts Avatlable for Appropriation 980,390 1,201,390 1,244,058 42,668
� Charges to Appropriation(Outflow):
� Public w�orks - 211,000 158,004 52,996
Transfers to other funds 895,000 938,000 937,684 316
� Total Charges to Appropriation 895,000 1�149,000 1,095,688 53,312
~ Budgetary Fund Balance,June 30 $ 85,390 $ 52,390 $ 148,370 $ 95,980
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CITY OF PALM DESERT SCHEDULE 8-C �
�
BUDGETARY COMPARISON SCHEDULE �
HOUSING MITIGATION FEES �
YEAR ENDED JUNE 30,2006
Varfance wlth �
Final Budget �
Budget Amounts Actual Positive �
Orlginal Fina! Amounts (Nepative}
Budgetary Fund Balance, July 1 $ - $ - $ - $ - �
Resources(Inflows): �
Taxes 30,000 30,000 1,033,888 1,003,888 �
Use of money and property 2,500 2,500 20,987 18,487
Amounts Available for Appropriation 32,500 32,500 1,054,8T5 1,022,375 �
Charges to Appropriatlon(Outflow): �
Transfers to other funds 32,500 32,500 - 32,500 �
Total Charges to Appropriation 32,600 32,500 - 32,500 �
Budgetary Fund Balance,June 30 a - $ - s 1,Ob4,876 $ 1,054,875 �
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' CITY OF PALM DESERT SCHEDULE 8-D
�
� BUDGETARY COMPARISON SCHEDULE
COMMUNtTY DEVELOPMENT BLOCK GRANT
� YEAR ENDED JUNE 30�2006
� Variance wlth
� Final Budget
' Budget Amounts Actual Positive
OMginal Final Amounts (Negative)
� Budgetary Fund Balance;July 1 $ 67,693 $ 67,693 $ 67,693 $ -
� Resources(Inflows):
' • Intergovemmental 400,000 400,000 155,840 (244,160)
Use of money and property 5,000 5,000 6,227 1,227
� Other 25,000 25,000 133,719 108,719
� Amounts Available for Appropriation 497,693 497,683 363,478 (134,214)
� Cha�ges to Appropriation(Outflow):
General govemment-nondepartmental 480,000 600,702 241,880 358,822
� Total Charges to Approprlation 480,000 600�702 241,880 368,822
1
� Budgetary Fund Balance,June 30 S 17,693 S 103,009 a 121,599 $ 2Z4,608
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� 103
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CITY OF PALM DESERT SCHEDULE&E
BUDGETARY COMPARISON SCHEDULE
EL PASEO ASSESSMENT DISTRICT
YEAR ENDED JUNE 30,2006
Variance with
Finaf Budget
Budget Amounts Actual Positive
Oripinal Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 35,345 $ 35,345 $ 35,345 $ -
Resources(Inflows):
Special assessments collected 215,000 255,000 257,466 2,466
Amounts Avatlable for AppropHation 250,345 290,345 292,811 2,466
Charges to Approp�lation(Outf'low):
General govemment-nondepartmental 215,000 257,000 256,944 56
Total Charges to Appropriatlon 215,000 257,000 266,944 56
Budgetary Fund Balance,June 30 $ 3b,345 � 33,345 $ 35,867 $ 2,522
104
A
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� ClTY OF PALM DESERT SCHEDULE&F
w
� BUDGETARY COMPARISON SCHEDULE
CITY WIDE BUSINESS LICENSE
� YEAR ENDED JUNE 30,2006
� Variance with
. Final Budget
Budget Amounts Actual Positive
� Original Final Amounts (Negative)
� Budgetary Fund Balance, July 1 $ 85,942 $ 85,942 $ 85,942 $ -
' Resources(Inflows):
Taxes 50,000 50,000 46,508 (3,492)
� Use of money end property 1,000 1,000 3,083 2,083
� Amounts Available for Appropriatlon 136�842 136,942 13b,b33 (1,409)
� Charges to Approp�fation(Outflow):
' General govemment-nondepartmental 51,000 51,000 43,500 7,500
' Total Charges to Appropriation b1,000 51,000 43,600 7,500
� Budgetary Fund Balance,June 30 $ 8b,842 $ 8b,S42 a 92,033 $ 6,091
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CITY OF PALM DESERT SCHEDULE 8-G
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING DISTRICTS N0. 1-15
YEAR ENDED JUNE 30,2008
VaHance with
Final Budget
Budget Amounts Actual Poaitive
Origlnal final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 400,806 $ 400,606 $ 400,606 $ -
Resources(Inflows):
Taxes - - 483,170 483,170
Use of money and property - - 5,755 5,755
Transfers from other funds - - 72,550 72,550
Amounts Available for Appropriation 400,806 400,606 962,081 b61,47b
Charges to Appropriation (Outflow):
Public worlcs 520,334 603,879 515,054 88,825
Total Charges to Appropriation 520,334 603,879 515,Ob4 88,825
Budgetary Fund Balance,June 30 $ 119,728 $ 203,273 $ 447,027 $ 650,300
106
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1 OTHER GOVERNMENTAL FUNDS-CAPITAL PROJECTS
�
/ Capital Projects Funds are used to account for the acquisifion and constructlon 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 pubiic 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 a�t education programs.
/ Caoitaf 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 pubiic
facilities, infrastructure and equipment.
, Drainage Facilitfes Fund - This fund is used to account for resources and expenditures for
1 planned capital improvement projects that are under the Master Drainage Plan.
1 Park and Recreational Facilities Fund - This fund fs used to account for resources and
/ expenditures for capital improvement proJects that are related to park development, maintenance
, and equipment.
, Si4nalization 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.
/
, Buildinas Fund - This fund is used to account for resources and expenditures for capitai
improvement projects that are related to the improvement and maintenance of public facilities and
/ structures.
1 Library Fund - This fund is used to account for resources and expendftures for capital
, improvement projects that are related to the purchase of Iibrary resources for the MuItI-Agency
Library.
/
, CFD indian Ridsae Fund-7his fund is used to account for the construction of public improvements
from bond proceeds Series A resulting from the creation of this Dist�ict.
, Soecfai 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.84-2 Sunterrace
1 Assessment Distrlct No.943 Merano
, Assessment District No.98-1 Bighom
, Bi�hom Series B-This fund is used to acxount for the construct(on of pubiic improvements from
proceeds resulting from the creation of an assessment Districts.
/
, Town Center Parkina Lot - This fund is used to account for resources and expenditures for
construction of a two-story parking lot at the Wes�ield Shopping Center.
, Silver Spur RanCh Fund - This fund is used to account fw the construction of public
/ improvements from bond proceeds resulting from the creation of this District.
� Hi�hlands UnderQroundina-This fund is used to account for the conshuction of public
/ improvements from bond proceeds resulting from the creation of this District.
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CITY OF PALM DESERT
1
COMBINING BALANCE SHEET �
NONMAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2006 i
I
Arts In Capital Parks and �
Public Projects Drafnage Recreation (
Places Reserve Factlitiss Facil(ties
/lssets: (
Pooled cash and investmerrts $ 2,295,360 $ 9,304,887 $ 2,949,509 $ 1,245,442 �
Receivables:
Acoounts - 689,586 - - I
Interest - 17,005 - - �
Prepaid costs 50 - - -
Due from other govemments - 6,015,402 - - �
Advances to other funds - 8,000,000 - 4,765,000 (
Rest�icted assets:
Cash and investments with �
flscal agents - 6,717 - -
1
Total Assets $ 2,295r410 S 24,032,587 � 2,949,508 S 6,0� 10� �
Liabtlities and Fund Ba{ances: 1
LiablUtles: �
Accounts payable $ 77,179 $ 1,484,872 $ - $ -
Accrued liabilities 2,300 - - - I
Unsarned revenues - 42,475 - - {
Deferred revenues - 1,067,885 - -
Depostts payable 280,184 - - - 1
Total Lfabilit(es 369,663 2,596,012 �
Fund Balances: �
Reserved: i
Reserved for encumbrances 23,000 17,402,955 - -
Reserved for oontinuing appropriation 445,000 2,951,263 - 695,533 �
Reserved for prepaid costs and deposits 50 - - - i
Reserved for advances to other funds - 8,000,000 - 4,765,000
Unreserved: i
Designated for capital outtay 1,467,697 {6,916,833) 2,949,509 548,909 �
Total Fund Baiances 1,935�747 21,437;585 2,549,509 6,010,442 ,
Total Liabilities and Fund Balances $ 2,295,410 � 24,032,597 $ 2,948�508 S 6,010,442 �
108
SCH�D�LE 9
CFD Assesament Assessment
Indfan District No.94-2 Distriet No.943
Signalizatian 8ulldings Lfbrary Ridge Sunterrace Merano
$ 306,105 $ 3,330,2�8 $ 287,635 $ 142 $ - $ -
- - - 19,035 - 1,921
- - - 4,784,620 - 332,136
3 30&,1Q5 � 3,330,278 $ 287,635 $ d,803,797 � -- - ��33,457
$ - $ - $ 8,284 - $ - $ 10,$61
- - 8,284 - - 7 Q,861
- - 32,000 - - 750
191,686 - , - - -
114,419 3,330,278 247,351 4,803,797 - 321,846
306,105 3,330,278 275,35'! 4,8a3,T97 - 32Z,598
3 306,105 $ 3,330,278 $ 287,635 � 4,603,787 3 $ 333,db7
109
CITY OF PALM DESERT
COMBINING BALANCE SHEET
NONMA�JOR CAPlTAI PROJECTS FUNDS
JUNE 30,2006
Assessment
Diatrict No.98-1 Bighom Town Center Silver
Bighorn Se�ies B Parking Lot Spur Ranch
Assets: �
Pooled cash and investments $ - $ - $ 558,285 $ 508
Receivabies:
Accounts - - - -
Interest 5 - - -
Prepaid costs - - - -
Due from other govemments - - - -
Advances to other funds - - - -
Restticted asaets:
Cash and investments with
fiscal agents - - - -
Total Assets $ 5 a - $ 558,285 $ 508
Liabilities and Fund Balances:
Liabilities: .
Accounts payable $ - $ - $ 558,285 $ -
Accrued liabilmes - - - -
Uneamed revenues - - - -
Deferred revenues - - - -
Depostts payable - - - -
Tota{Liabilities - - 558,285 -
Fund Balances:
Reserved:
Reserved for encumbrances - - - -
Reserved for continuing appropriation - - - -
Reeerved for prepald oosts and depos(ts - - - -
Reserved for advances to other funds - - - -
Unreserved;
Designated for capital outlay 5 - - 508
Total Fund Balances 5 - - ��8
Total Liabflities and Fund Balances $ 5 $ a 558,285 $ 508
110
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, Total
/ Non-Major
, Highlands Capital Projects
Undergrounding Funds
/
, $ 11,850 $ 20,289,801
1 - 689,588
, _ 37,368
50
, - 6,415,402
, - 12,765,000
, - 5,122,473
�
, S 11,660 $ 44,919,678
/
, � - $ 2,139,481
/ - 2,300
, - 42,475
- 1,067,665
1 - 280,184
� - 3�532,105
�
, - 17,458,705
1 - 4,283,482
, - 50
- 12,765,000
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, 11,650 6,880,336
' 11,850 41,387,573
, S 11,650 S 44,919,678
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CITY OF PALM DE3ERT �
COMBINING STATEMEN7 OF REVENUES, '
EXPENDITURES AND CHANCiES IN FUND BALANCES �
NONMAJOR CAPITAL PROJECTS FUNDS �
YEAR ENDED JUNE 30,2006
�
�
Arts In Capital Parks and �
Pubilc Projects Drainage Recreation
Places Reserve FacifSties Facltities �
Revenues: �
Special assessments collected $ - $ - $ _ $ _
Licenses and permits 484,902 - - _ �
intergovemmental revenues - 6,082,736 - -
Use of money and property 86,836 730,924 97,723 218,551 �
Miscellaneous - 1,899 83,428 - �
Total Revenues 581,73B 6,815,559 181,151 218,551 �
Expenditures: ,
CuRent: �
General govemment 294,491 - - . '
Public works - 1,039,776 - -
Capital outlay 14,573 5,916,375 225,924 54,873 �
Total Expenditures � 309,064 6,956,151 � 225,924 54,873 /
Excess(Deficfency)of Revenues ,
Over(Under)Expenditures 242,674 (140,592) (44,773) 163,678 �
Other Finencing Sources(Uses): ,
Transfers in - 14,379 - - �
T�ansfe�s out (7,198} - - - ,
Sale of property - 202,234 - -
Total Other Financing Sources I
(Uses} (7,198) 216�613 - �
Net Change in Fund Balances 235,476 76,021 {44,773) 163,678 �
FundBalances,BeglnningafYear � 1,700,271 21,361,584 2,994,282 5,846,764 �
�
Fund Balances,End of Year ; 1,935,747 S 21,437,SSS S 2,949,509 $ 6,010,442 ,
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' SCHEDULE 10
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, CFD Assessment Assessment
Indian District No.94-2 District No.94-3
1 Signalization Bulidings Ltbrary Ridge Surrterrace Merano
� $ - $ - $ - $ - $ - $ -
� - - - - - -
1 9,911 107,325 512 186,935 917 12,747
, - - - - - -
/ 9,911 107,325 S72 186,935 817 12,747
/
/
, - � 178,492 - - -
1,240 - 21,990 45,903 10,861
� - - - - - -
/ 1,240 - 178,492 21.990 45,903 10,861
/
1 8,671 107,325 (177,980) 164,945 (44,986} 1,886
/
, - - 32b,257 - - -
, - - - - - -
1
1 - - 325,257 -
, 8,671 107,325 147,277 164,945 (44,986) 1,886
, 297,434 3,222,953 132,074 4,638,852 44,986 320,710
/
, E 306,105 s 3,330,278 s 279,3'S1 s 4,803,797 s - S 322,596
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ClTY OF PALM DESERT
i
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BAI.ANCES �
NONMAJOR CAPI7AL PROJECTS FUNDS ,
YEAR ENDED JUNE 30,2006
Assessmer�t �
District No.98-1 Bighorn Town CeMer Silver
Bighorn 5erfes 8 Parking Lot Spur Ranch
Revenues:
Speclal assessments collected $ - $ - $ - $ -
Licenses and permits - - - -
Intergovemmental revenues - - � -
Use of money and p�operty 25,282 - - 2,584
Miscellaneous - 88,170 - -
Total Revenues 25,282 88,170 2,584
Expenditures:
Currenl
Generai povemment - - - -
Public works 875,382 88,170 - 114,110
Capital outlay - - - -
Total Expenditures � 675.382 86,170 - 114,t10
Excess(Deficiency)of Revenues
Over(Under)Expendltures {850,100) - - (111,526)
OtNer Financtng Sources(Uses):
Transfers in - - - -
Transiers out - - - -
Sale of property - - - -
Total Other Financing So�rces
(Uses} - -
Net Change in Fund Balances (850,100) - - {111,526)
Fund Balances,Beginning of Year 850,105 - - 112,034
Fund Balances,End of Year S 5 s i S �8
---�----�-
114
SCHEDULE 10
Total
Non-Major
Hlghlands Capttal Projects
Undergrounding Funds
$ 11,570 $ 11,570
- $ 484.902
- 6,082,736
80 1,480,327
- 173,497
11,650 8,213,032
- 4T2,983
- 2,197,432
- 6,211,745
� - 8,682,160
11,650 (869,128)
- 339,636
- (7,198)
- 202,234
- 534,672
11,650 (134,456)
- 41,522,029
S 11�650 S 41,387�573
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116
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AGENCY FUNDS
Agency Funds are used to account for assets held by the city as an agent for individuals, private
organizations,other governments and/or funds.
Aaencv Fund - This fund is used to account for deposfts placed with the City by developers,
indivlduals and groups io obtain future services. Deposiis are reduced by d)sbursements and/or
refunds to the depositors when the cost of services is determined.
Treasurers 1911 Bond Act - 7his fund is used to account for the assets held on behalf of the
assessment dlstricYs property owners untii 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 coilection of special
assessments and the future payment of debt service related to bonds issued.
117
CITY OF PALM DESERT SCHEDULE 11
COMBINING BALANCE SHEET
ALL AGENCY FUNDS
JUNE 20,2006
Treasurers Retiree Special
1991 Bond Service Assessment
Agency Act Stlpend Fund Funds Totals
Assets:
Cash and investments $ 3,946,611 $ 274,514 $ 3,252,804 $ 3,364,076 $10,838,005
Receivables(net of alowance
for uncollectibles):
Accounts - - - 73,274,012 73,274,012
Interest - - 16,319 33,996 50,315
ResMcted Assets:
Cash W ith fiscal agent - - 5,786,000 8,546,730 14,332,730
Total Assets S 3,946,611 $ 274,514 S 9,055,123 $85,218,814 $98,495,062
a� �
Uabilities:
Deposits $ 3,948,611 $ 274,514 $ 9,055,123 $85,218,814 $98,495,062
Total Liabillties s 3,946,611 S 274,514 ; 9�055,123 S 85,218,814 $98,495,062
118
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119
CITY OF PALM DESERT SCHEDULE 12
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30,2Q06
Balance Balance
July 1, 2005 Additions Deletions June 30,2006
Agency
Assets:
Cash and investments $ 2,317,207 $ 4,125,140 $ 2,495,736 $ 3,948,611
Total Assets a 2,317,Z07 S 4,125,140 $ 2,495,736 $ 3,946,611
Liabilities:
Deposits $ 2,317,207 $ 4,125,140 $ 2,495,736 $ 3,946,611
Total Liabilities S 2�317,207 S 4,125,140 S 2,495�736 � 3,946,611
Treasurers 1911 Bond Act
Assets:
Cash and investments $ 274,514 $ - $ - $ 274,514
Total Assets 3 274�514 a - a - $ 274,514
Liabilities:
Deposlts $ 274,514 $ - $ - $ 274,514
Total Liabllttfes S 274,514 � - s - $ 274,514
Reti�ee Servfce Stlpend Fund
Assets:
Cash and investments $ 2,630,721 $ 1,082,221 $ 460,138 $ 3,252,804
Receivables(net of allowance
for uncollectibles):
Interest 16,319 18,319 16,319 16,319
Restricted Assets:
Cash with fiscal agent 5,563,189 222,811 - 5,786,000
Total Assets $ 8,210,229 a 1,321,351 s 476,457 S 9,065,123
��
Liabititiss:
Deposits $ 8,210,229 $ 1,321,351 $ 476,457 $ 9,055,123
Total Lfabilities S 8,210�228 � 1,321,35'f S 476,457 S 8,055,123
120
CITY OF PALM DESERT SCHEDULE 12
COMBiNING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30,2006
Balance Balance
July 1�2005 Additions Deletions June 30,2006
Special Assessment Funds
Assets:
Cash and investments $ 3,522,887 $ 5,851,965 $ 6,010,776 $ 3,364,076
Receivables(net of allowance
for uncollectibles);
Accounts 25,343,308 50,133,701 2,202,997 73,274,012
Interest 7,354 33,996 7,354 33,996
Restricted Assets:
Cash with fiscal agent 3,176,856 6,234,805 864,931 8,546,730
Total Assets s 32,050,405 S 62,254,467 S 9,086,058 i 85,218,814
Liabilities:
Accounts payable $ 11,021 $ - $ 11,021 $ -
Deposits 32,039,384 62,254,467 9,075,037 85,218,814
Total Liabilitles $32,050,405 S 82,254,487 i 9,086,058 $85,218,814
Totels-AN/�gency Funds
Assets:
Cash and investments $ 8,745,329 $11,059,326 $ 8,966,850 $10,838,005
Receivables(net of allowance
for uncollectibles):
Accounts 25,343,308 50,133,701 2,202,997 73,274,012
Interest 23,673 50,315 23,673 50,315
Restricted Assets:
Cash wlth fiscal agent 8,740,045 6,457,618 864,931 14,332,730
Total Assets a 42,852,355 S 67,700�958 S 12,058,251 S 98,495,062
Liabtiities:
Accounts payable $ 11,021 $ - $ 11,021 $ -
Deposits 42,841,334 67,700,958 12,047,230 98,495,062
Total Liabilities 542,852,555 S6T�700,958 s12�058,251 398�495,062
121
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Statistjcal Section
This part of the City af Statisfical's comprehensive annual financia! report
presents detailed informafion as a context for undersfanding what the information
in the financial statements, note disclosures, and required supplementary
information says about the city's overa!!financial health.
Contents
Financiai Trends
These schedules contain trend information to help the reader understand
how the ciry's financiai performance and well-being have changed over
time.
Revenue Capacity +
These schedules contain informafion fo help the reader assess rhe city's
most signi�cant local revenue source, fhe property tax.
Debt Capacity
These schedules present information to help the reader assess the
affordabiliry of the ciry's current leve/s of outstanding debt and tl�e city's
abiliiy to issue additional debt in the future.
Demographic and Economic lnformatlon
These schedules offer demographic and economic indicatars to help the
reader understand the environmenr within which the city's financial
activities take place.
Operating Information
These schedules cantain service and infrastructure data to help the reader
understand how the intormation in the city's financia! report re/ates to the
services the city provides and the activities it performs.
Sources: Un�ess otherwise noted, the information !n these schedules is derived
from the comprehensive annual financial reports for fhe relevant year. The city
implemented GASB Statement 34 in 2001; schedules presenting government-
wide information include information beginning in fhat year.
123
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City of Paim Desert �
Net Assets by Component �
Last Six Fiscal Years
(Accrual Basis of Accounting) �
�` : �._; •,. n �� :f� ��••r �- � �
:' ; "- ' '.'•� •.. >' ''- r -�. �•'.
� 166,229,783 147,410,323 , 141,303,283 143,448,973 44,179,223~ 41,332,088 �
?' 153,342,045 103.701.569 100.268,597 99,313,317 78,732,876 72,610,266 �
108,077,101 96,445,212 79 075,507 80,229,689 88,266,933 80,007,103
. 427,648,929 347,557,104 320,647,387 322,991,979 211,179,032 193,949,457 �
63,233,079 63,588,61& 63,857,424 64,269,694 64,Q85,563 64,702,174 �
4 459 840 2,948,910 1 830,204 1,288,488 1 494,726 1,419,665 �
67,692,819 66,53T,526 65,687,628 65,558,182 65,580,289 6fi,121,839 �
229,462,862 210,998,939 205,160,707 207,718,667 108,264,786 106,034,262 �
153,342,045 103,701,569 100,268,597 99,313,317 78,732,876 72,610,266
1 i2 536 941 99 394,f22 80,905,711 8f 598,177 83,761 659 81,426,768 �
495 341 848 414 094,630 386 335 015 388 550,161 2T6 759 321 260 071,296 �
�
(1)The increase for FY 2006 is due to issuance of$50 million District Bond. See Note t116 �
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-124-
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r City of Palm Desert
Changes in Net Assets
� Last Six Fiscal Years
. (Accrual Basis of Accounting)
�
� _..,.:_ - -
� 34,362,850 27,144,038 28,402,902 21,055,957 20,830,544 18,625,329
21,856,311 18,743,083 15.420,151 15,601,833 14,547,981 12,744,434
� 4,243,119 4.043,034 3.977,447 3,480,264 19.686.164 3,542,671
13,894,980 10,428,219 13,046,864 23,009,640 3.775,417 15,595,997
. 36,844,061 30,183,408 24,051,292 22,140,837 17,734,171 14,317,974
12,526,964 12,749,188 14 124 371 14,443 467 15 271,200 16 224,248
. 123,728,285 103,290,970 99,023,027 99,731,998 91,845,4T7 81,050,653
, 6,913,517 6,636,889 6.657,220 6,653,242 6,629,866 6,901,576
646 769 609 298 570,135 511,272 534 865 1,481,938
. 7 560 286 7,248 187 7 227,355 7,164,514 7 164,731 8,383,514
� 131,288,571 110,537,157 106,250,382 106,896,512 99,010,208 89,d34,167
� 19.180.498 12.987.130 10,837,634 10,666.717 10.423.855 10.288,381
. 4,930,120 4,800,413 4,632,297 6,249,955 5,568,966 4,607,448
. 51,780 221 5,166 856 7 134 158 4 325,033 4,434,722 5 300,829
75,890,839 22,954,399 22,604,089 21,241,705 20,427,543 20,196,656
.
� 7,442,330 6.814,638 6,237,087 5,824,079 5,753,581 5,882,813
864,44T 898,884 851,763 843,812 861,405 943,895
� 295 304 338 478 267,951 414,967 8,195 543,303
� 8,602 081 8,052 000 7 356,801 7,082 858 6,623,181 7,370,011
84,492,920 31,006,399 29,960,890 28,324,583 27,050,724 27,566,669
. .
. (47,837,446)� (80,338,571) (76,418,938) (78,490,293) (71,417,934) (60,853,995)
1041795 805813 129446 81,656 541,550 1,013,503
. (46,795,651) (T9,530,758) (78,289,492) (76,289,492) (71,959,484) (81,867,498)
• 114,826,387 98,926,134 87,551,146 81,297,385 73,257,210 ..66,975,636
� 6,197,595 4,240,360 2,985,463 3,366,548 466,193 924,314
17,459 1,852.229 (984,837) 166.840 4,328.656
� 7 025 216 6 347,396 8 706 206 3 997 338 10 930,974 14,163,877
. 128,049.198 107,531,349 83,682,632 87,876,434 84.821,217 88,392,483
x s.'c1
. 113,598 43.831 - 11.718 - -
254 47 831
� 113 598 44 085 - 59 549 - -
128,162,796 107,575,434 83,682,832 87,735,983 84,821,217 86,392,483
.
� 80,211,752 27,194,778 7,263,694 9,186,141 13,403,283 25,538,488
1 155 393 849,898 129 446 22 107 541,550 1 013,503
r � 81,367 145 28 044 876 7 393 140 9 164 034 12,861 733 24 524 985
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� (1)The Increase for FY 2006 is due to Bond Funds received tor capital improvement at the District known as University Park. See note#16
� (2)The increase for FY 2006 is explained in the ManagemenCs Discussion and Analysis.
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�
Ciry of Palm Desert
Fund Balances of Governmental Funds
Last Six Fiscal Years
(Moditied Accrual Basls of Accountiog)
26,345,859 26,505,414 27,838,819 25,701,984 27,506,623 22,951,643
48,004,509 36,793,370 27,619,600 23,113,284 23,827,558 24,419,570
74,350,368 63,298,784 55,458,419 48,818,268 51,334,181 47,371,213
115,924,400 96,349,160 83,603,140 86,423,841 89,223,387 77,271,685
19,944,227 25,991,171 32,614,358 24,709,698 24,222,615 15,521,068
55,995,596 34,196,750 40,652,793 48,976,239 46.630,038 53,720,744
10,095,576 8,430,170 12,899,972 11,641,650 5,803,153 6,744,244
201 959 799 164 967 251 169 T70 263 171 751 428 165 879,193 153,25T 741
-126-
1
� Citv of Palm nesert
' Changes in Fund Balances of Governmental Funds
Last Six Fiscal Years
' (�lodtfled Accrual Rasis of Accounting)
� _ '� �, -�• t .' r- �'� '�.r-�^h
,y �. •Z ���,,+`, �` �..��, . 2001
, 131,303,483 102,020,742 93,948,185 83,762,760 78,631,363 72,173,943
269,036 227,848 214,950 5,818,624 6,684,402 12,884,346
' 2,685.415 2,056,554 1,316,669 1,286,262 1,417,012 1,511,652
11.095,613 11,064,037 6,067,555 11,488,993 10,581,051 6,483,484
' 4,737,861 4,430,915 4,494,098 4,115,892 4,186,607 3,943,706
1,994,163 1,463,850 1,052,467 873,605 975,847 845,097
' 9,351,716 5,654,986 4,241,506 5,035,799 7,671,358 15,114,698
310,868 323,775 306,630 367,903 305,197 238,872
' 2,470,623 3,232,825 4,179,587 2,443,684 1,405,296 11,037,622
42.979.973
' 207,198,731 130,473,532 115,821,627 115,193,522 111,t38,129 124,213,420
, 34,506.987 26.112.125 27.122,532 20,034,295 19.194.096 17,286,613
' 36.844,061 30,183,408 24,051,292 22,140,837 17,734,771 14,317,974
21,715,373 18,587,738 15.290.696 15,410,711 14.368,389 12,598,263
, 3.304,867 2,889.789 2,638,386 2,656,809 2,580,841 2,434,884
71,103,943 7,306,791 10,153,096 20,631,322 17,657,120 13,167,046
' 35,359,139 22,409,057 1H,927,787 36,887,223 17,159.885 14,330,725
t 5,607,707 9,788,423 28,372,707 25,975,000 28,360,000 76,820,000
' 14 072,572 13 537 279 16,643.049 17 071 421 17,062 974 16,452,210
162,514.849 130,794,548 143,199,545 180,807,818 134,117,188 107,407,715
� 44,684,102 (319,016) (27,377,918) (45,414,096) (22,259,357) 16.805,705
/
, 50,225,747 48,697,604 68,236,264 87,390,536 60,894,943 37,122,796
� (50,225,747) (48,697,604) (68,236,264) (90,285,014) (60,894,943) (37,122,796)
' - - 48,690,000 50,682,363 37,765,000 -
3 360 030 3 356,369 1 72B 522 979.533 766,279 767,500
, . 3.360.030 3.356.369 50.418.522 48,767,418 38.531.279 767.500
�
' : �014 132 3 037 3S3 14 S34 390 3 353�22 16 271 922 17 573 OS
.,,�
' r r.-,' 1S.SY. 21.SX 38.2X 54.7•�L 38.8% 35.a•/.
,�.'�•„-'.,�i
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' (1)Bond was asued in FY 2006. See note#16(or further explanation.
' (2)Prior to 2004,the City wes recording Assessment District Property Taxes in its debt servfce funds,city has sinca removed these from its debt service funds
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City of Palm Desert `
Graphs-Changes in Fund Balances of Governmentals Funds �
Last Six Fiscal Years
(Modified Accrual Basis of Accounting) `
�
Total Revenues �
__ _ . . .. _. ._. O Combined olher
_ , (l) .
5200.000.000 � , ,
� 0 Miscellaneous
fI50.W0.000 ; other(I)
i
.
' ❑Inter�ovemmental �
S 100.000.000 �
� rcvenues
550.000.000 j ' ■Licenses 8c �
SO I--- — — -- -- —� Permiu �
fi A F � A � ■Taxa&Special �
� � � � � � Assessments
�
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Total Expepditu�es O ImercsbFiscal �
� _. . _ _.. ---.. . _ _._ -- --...._ .__.__ _ Charges
IB0.000.000 _.. __._
5160.000.000 � � •Prinicipal .
� + Retiremen�
5140,000.000 : ; : � ,
� �Capi�al outlay
5120.000.000 i I �
f 100.000.000 I ( ■Publ�c wurlcs
580.000.000
�
I i ■Parks,rccreation& ,
560.000.000 :
i culture
s�'�'� I � D Public safecy �
f20.000,OW � I ,
f0 g � ■Pass-throu�h-
�---. _._ .—_
7 F ---- � -- .._—. � _ --- R --- A -- agreement ,
� � � � � Z ■General �
Government
/
Combined Other(1)is a combination of rental income,use of money 3 property,and charc�es for services ,
Miscellaneaus Other(2)is a combinatlon of fines and forefekures,miscellaneous anG contrtbucbns from property owners '
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-128-
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Ciry of Palm Desert `
Supplemental -Historical General Fund Actual Statement of Revenues `
(including Transfers In) `
Last Ten Fiscal Years «
;... ;� �
�L,t�� N;;.
�e •.'.r- '..�_ �•,,
�
S 17,776,928 a 15,453,148 S 15,138,424 S 13,463,197 S 13,027,395 �
8,026,101 7,715,624 7,660,831 6,816,682 7,043,454 �
8,261,944 4,003,585 3,369,711 3,078,047 2,765,556
2,636,050 1,486,830 1,135,952 1,573,165 2,379,764 �
I,083,589 1,130,231 1,092,475 2,450,600 870,624 �
2,580,917 2,439,134 2,417,856 2,198,663 2,131,820 �
358,954 3,712,256 2,020,583 2,634,949 2,555,811 �
1,963,733 1,446,524 970,826 876,372 1,064,097
1,982,846 1,830,295 1,547,862 1,367,303 1,036,133 �
1,242,721 1,154,143 955,501 961,675 898,113 �
661,187 526,271 392,988 262,403 158,302 �
702,857 701,215 459,046 472,356 612,845 �
1,030,412 1,099,665 870,415 689,147 497,967 �
2,606,760 2,019,035 1,144,752 1,845,700 1,116,608
S 50,914,999 S 44,717,956 S 39,177,222 S 38,690,259 S 36,158,489 �
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�
S 13,619,607 S 13,203,564 E 10,877,715 S 9,594,560 S 8,942,146 �
7,385,707 7,280,625 6,725,876 6,135,811 5,459,239 �
2,466,758 2,393,368 2,417,572 2,306,753 2,597,674 �
3,147,544 2,688,963 2,169,894 2,168,056 2,172,618 �
934,039 957,817 1,026,956 1,048,970 1,714,582
1,981,697 1,837,806 1,612,054 1,540,656 1,395,523 �
2,262,535 1,991,034 1,679,519 1,494,346 1,365,641 �
1,101,743 1,182,392 I,517,286 1,339,825 783,862 �
2,125,784 958,858 830,198 730,772 768,421 �
826,591 749,831 744,444 684,601 641,877 �
265,350 553,800 476,050 458,900 429,750
623,936 538,590 866,757 660,307 414,510 �
578,238 698,934 516,513 436,631 289,783 �
711,438 1,255,860 1,142,810 1,004,590 758,805 �
S 38,030,967 S 36,291,442 S 32,603,644 S 29,604,778 $ 27,734,431 �
(1)State Subventions is any combination of trailer coach fees,motor vehicle and off-highway in-lieus,and r
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.
(3)The State of Califomia reprop_ramed motor vehicle fees,the Citv now receives this as pronertv taxcs. �
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-130- �
City of Palm Desert
Supplemental Graph - Historical General Fund Actual Statement of Revenues
(Including Transfers In)
Last Ten Fiscal Years
$60.000.000 ------- - --—----------—
_�.—-------------—--�
�
� �
I (
$SO,U00,000 j �
I �
$40,Q00,000 i
i
■Combined Othe
$3o,oao,000 �1�
■Interest
$20,000,000
■Property Tax
$I 0,000,000
❑Transient
Occupancy Tax
$0 - - --- - -- -
� � � � � � � � � � ■Sales Tax
� � �
� � � � � � � � � �
(1)Combined Other is any combination of tcansfers,franchises,state subventions•,building and grading
permits,reimbursements,busiaess 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.
-131-
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City of Palm Desert i
Supplemental Historical General Fund Actual Statement of Expenditures �
(Including Transfers Out) (
Last Ten Fiscal Years
1
`��� �-y g.., „a�..,
-�. � "';�'.Z�= 1
r: . �L .�" T ti�.. }_ r
1
$ 12,323,448 $ 12,135,671 $ 11,432,803 $ ]0,869,991 $ 10,732,159 (
8,410,706 7,196,081 5,999,228 6,573,351 6,461,706 1
2,823,359 2,506,688 2,270,854 1,937,184 1,745,513 1
1,687,148 1,616,071 1,420,717 1,654,768 2,262,129 �
1,681,583 1,558,970 1,411,018 1,323,955 1,378,064 �
2,695,889 2,297,814 1,620,160 1,535,427 1,386,988 (
1,277,554 1,375,409 897,153 2,078,218 608,616 �
l,117,417 934,821 676,505 1,007,637 880,295 �
7,846,311 7,256,066 6,805,633 14,228,641 7,052,549 �
I
$ 39,863,415 S 36,877,591 S 32,534,071 S 41,209,172 S 32,508,019
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$ 9,489,468 $ 8,841,693 $ 7,932,755 $ 7,600,456 $ 6,023,208 �
4,972,981 4,617,682 4,375,851 3,966,163 4,383,993 �
1,764,947 1,673,434 1,607,836 1,649,970 2,413,334 �
2,052,281 1,676,995 1,677,282 I,683,191 1,484,691
1,455,268 1,451,917 1,515,287 I,097,782 1,327,167
1,201,802 1,134,696 1,424,124 I,257,458 1,25 5,092
1,422,637 1,028,354 861,490 190,003 1,177,944
918,575 1,035,644 934,744 719,501 725,794
8,398,278 11,503,552 6,161,641 9,664,696 4,214,557
S 31,676,237 $ 32,963,967 S 26,491,010 S 27,829,220 S 23,005,780
(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 attomey,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 aquisit�ons,centers,committees,contributions,community
development, Hautline,newsletter,health and welfare,interfund transfers,parks,recreation and culture,
and code enforcement.
-132-
City of Palrti Desert
Supplemental Graph -Historical General Fund Achial Statement of Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
Sd5,000,000 I-----------------------------"- -- -- ----
540,000,000 I
535,000,000
530,000,000 I ■Combined Other(I)
5?5,000,000
520,000,000 ❑Community
Promotions
S I S,OOO,OUO
O Public Works
310,000,000 Administration
55,000,000 ■Ciry Administration
(2)
50 - � �. -�- -}- —�— --- —� -� .
� � � $ � $ � � � � ■Public Safety(3)
� � � � � � � � � �
(I)"Combined Other"is any combination of sueet maintenance,building safery,street resurfacing and public
works. lt may atso be aquisitions,centers,committees,contnbutions,communiry development,
Hautline,health and welfare,interfund transfers,park maintenance,refunds,and code enforcement.
(2)"City Administration"is any combination of administrative services,auditing,Ciry attomey,clerk,council and
manager,data processing,finance,general services,human resources,insurance,legal special services,
legislative advocacy and unemployment insurance expendrtures.
(3)"Public Safety"is any combination of animal regulation,risk management,nuisance abatement,police
services,and tra�c safery expenditures.
-133-
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
il.i' �. j , .► _`i'. .Ir '���f-a'G,''. . � .
,�,�2Q03 ► .{2_OQ� ;:..
'r .t i� t� . ,,::
$ 49,831,410 $ 43,587,725 $ 38,084,747 $ 36,239,659 $ 35,287,865
49,539 49,280 44,812 43,917 42,863
$ 1,006 S 884 S 850 $ 825 $ 823
,.
��
$ 37,096,928 $ 35,333,625 $ 31,576,688 $ 28,555,808 $ 26,019,849
42,334 37,634 36,287 35,162 33,471
$ 876 S 939 S 870 S 812 S 777
$ 38,488,367 $ 35,426,268 $ 31,674,743 $ 34,935,591 $ 30,941,156
49,539 49,280 44,812 43,917 42,863
S 777 $ 719 S 707 S 795 S 722
1 4' ' .�..
$ 28,902,706 $ 26,343,720 $ 25,059,899 $ 21,933,107 $ 21,564,364
42,334 37,634 36,287 35,162 33,471
S 683 $ 700 S 691 S 624 S 644
(1)Population figures aze as of January start of fiscal year.
(2)Interfund Transfers In/Out are not included in total.
Sources: Population figures from State Department of Finance
-134-
City of Palm llesert
Assessed Value and Estimated Actual Value of Taxable Property
Last Six Fiscal Years
�_ �., i '�;f�`
:t: ,�;�i�a ,� -r , ��,.* •.Yihik(�I
� f.,.
,� 7,913,843,803 1,368,116,067 165,117,456 483,558,265 (247,676,185) 11,794,104,029 1.00000 10,503.193,237
6,775.427,147 1,084,068,343 135,508,543 385,678,161 (238,745,884) 10,423,734,072 1.00000 9,281,846,679
- 8,061,078,589 1,306,579,384 f08,881,615 372,012,186 (199,818,295) 9,073,467,947 1 00000 8,704,132,380
~r
�: 5,360,801,928 1,200,179,538 88,013,166 328,049,073 (184,02T,529) 8,001,196,907 1.00000 8.066.795,481
4.808.079,266 1,069,623,658 79,499,058 332,450,596 (173,452.485) 7,227,186,886 1.00000 7,291,094,312
4,153,891,190 838,518,408 70,951,558 296,706,514 (181,253,540) 8,450,141,599 1.00000 6,511,773,110
<
Note:Property Taxes in Riverside Counry are subjed to the State of Califomia's Proposition 13,Jarvis-Gann Iniliative which allows reappreaisals of real property oNy
when there is a change in ownership or new constnkUon takes place. Further,the proposition Iimits propeRy assessment increase to no more than two(2%)percent
annually Property is assessed at one hundred percerd(100°h)of its fair market value at the time o(new constnictio�or charx�e in ownership.
The tax rate is one(1°,6)parcerrt of the assessed value.
(1)Estimated Achial Taxable Value=Net Taxable Value
Source:Rrverside Counry Assessor thry HDL Coren&Cone
-135-
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Six Fiscal Years
Net Assessed Valuation - Historical Comparison '
� Value in Millions FY 2001 to FY 2006
i $12,000 �- ------- ---- - --------.___—_ . __; �
$10,000 ,
� $8,000
$6,000 �
$4,000 �
� $2,000 ' '
�
$- ---- —�-- ----�
� 2001 2002 2003 2004 2005 2006
- - - --- -I
i
Percent Increase in Assessed Valuation
' FY 2001 to FY 2006 ,
so.00�io __.____�______..��__._
z�ssdr--_=:�__.—.__�--------__�_....___
Zs.00�io - - - - -- - - - - - - - - - - - - -- - - - - - --�s38qo - -- - - - - - - - - - - - - - - - sas��io
20.00% - - - - -- - -- - - - - - - - - - -- • - - -- - - • -- - - - - - - - - . . . _ .�5.D6.°/a- - - - - -
0
15.00% -'�- -°- - -- - -'11•�T° - - - - - - - - -- - - - - - - - - - - - - -- - -- -
-- - - - - - - - - - -- - - - -� �
10.00% - --- - - - -- - - - - -- ---- - - - - - -- - - - -- - - -- - •- - • - - --- -- - - - - - - • --- - - - --- - - -'
5.00% -- - -- - - - - - - --- - - - -- - --- --- -- • •-- - . . . - - --- --- . .. - - - -- - - - - -- - - - - - - � i
_�
0.00% —�
I
2001 2002 2003 2004 2005 2006
� _ — _ �
Historical Major Additlons
Annexations FY Retail Centers FY
Cook Street Area 88/89 Town Center Mall 83/84
Country Club#28 93/94 Desert Springs Marriott 86/87
Price Club/Costco 93/94 One Eleven Town Ctr 88/89
Palm Desert CC#29 94/95 Mervyn's Center 92/93
Palm Desert Greens 04/05 Desert Crossing 95/96
Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97
Remodel 111 Town Ctr(Best Buy) 97/98
Gardens on EI Paseo 98/99
Remodel Westfield Mall (Sears, Barnes & Noble) 04/05
Sears Automotive 04/05
Lowes Home Improvement 05I06
Walmart/Sams Supercenters 05/06
-136-
City of Palm Desert
Supplemental FY 2006 and 2005 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
28.177327% 28.177327%
2.728242% 2.728242%
5.873086% 5.873086%
0.000000% 0.000000%
36.221587% 36221587%
7.526714% 7.526714%
0.426231% 0.426231%
4.094919% 4.094919%
1.996808% ].996808%
0339927% 0.339927%
2.071624% 2.071624%
1369698% 1.369698%
2.736607% 2.736607%
2.972906% 2.972906%
3.464324% 3.464324%
100.000000% 100.000000%
(1)City of Palm Desert is a No-Low Properry Tax Ciry 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.
-137-
�
City of Palm Desert `
Property Tax Rates `
Direct and Overlapping Property Tax Rates �
Last Six Fiscal Years «
�
�
�
�
1.00000 1.00000 0.07674 0.01995 0.02080 0.02520 �
1.00000 1.00000 0.09581 0.01994 0.02080 0.02690 �
I.00000 1.00000 0.09750 0.00000 0.02080 0.02870 �
1.00000 1.00000 0.09750 0.00000 0.02080 0.03060 �
l.00000 1.00000 0.09750 0.00000 0.02080 0.03060 �
1.00000 1.00000 0.09750 0.00000 0.02080 0.04060 ,
,
�
Note:Proposition 13 limits the abiliry of the city to raise the property tax rate. �
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Source:CalMuni Statistics Inc �
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� City of Palm Desert
� Principal Property Taxpayers
� Current Year and Five Years Ago
�
�
�
�
�
� a 186,325,797 1 2.47°/, $ 170,235,343 1 2.64%
, 113,943,575 2 1.57% 82,145,477 2 1.27%
, 72,748.261 3 0.88% 49,787,218 4 0.77%
, 69,304,207 4 0.66% 37,606,312 5 0.58%
• 30.267,496 5 0.40%
, 34,167,206 6 0.38%
,
, 29.883,749 7 0.37%
, 27,447,343 6 0.36% 22,209,275 10 0.34%
' 25,029,556 9 0.34% 54,515,674 3 0.85%
, 23,945,574 10 0.33%
, 25,779,937 6 a.44%
,
, 25,681,923 7 0.40%
, 24,656,105 8 0.38%
, 23,954,662 9 0.37%
, S 613,082,784 7.78% S 516,571,928 8.00%
,
,
, (1)The estimated propeRy tax revenue stated above is based upon net tazable values,tax ratlos and base year values that impact the revenue
calculation.As a result,parcels with tha same assessed value that are assigned to d4ttetent tax rate aceas may contribute disslmilar amounts
, of total revenue to the City and Redevebpment Agency.
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, Source:HdL Coren&Cone thru Riverside County Assessor OS/06 Combined Tax Rolls
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, -139-
/
City of Palm Desert
Property Tax Levies and Collections
Last Six Fiscal Years
:3
..,,
2001 2,426,812 2,387,760 98.39% 39,052 $2,426,812 100.00%
2002 2,603,643 2,475,308 95.07% 128,335 $2,603,643 100.00%
2003 3,273,730 2,723,336 83.19% 550,394 $3,273,730 100.00%
2004 3,080,422 3,007,652 97.64% 72,770 $3,080,422 100.00%
2005 3,768,896 3,501,718 92.91% 267,178 $3,768,896 100.00%
2006 4,318,880 4,243,595 98.26% - $4,243,595 98.26%
(1)City of Palm Desert is on the"Tceter Plan"with the Counry of Rivcrside.The first payment was
received in the fiscal year 1993/94.
(2)Ciry of Palm Desert is a"No-Low Property Tax Ciry". Proposition 13 rolled the tax rates back to 1973
which is when the Ciry of Palm Desert Incorporated and the Property Tax rates were zero.
Based on current state law the Counry 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 1996/97 final total collected includes adjustments for No-L.ow property
tax collections from prior years modified by the Counry of Riverside. The Counry adjusted the payment to
ihe City of Palm Desert(FY 1995/9b)for the annexation of Palm Desert Country Club.
Source:Riverside Counry Auditor Controller Office and Ciry of Palm Desert
-140-
i
i City of Palm Desert
� Supplemental Taxable Sales by Category
i
Last Six Calendar Years
i
, �;. � 3. . �:: :,,
.Y^
�
$ 141,510 $ 132,831 $ 108,829 $ 97,924 $ 93,792 $ 92,192
1
362,512 340,277 307,186 278,583 272,856 269,776
I
50,556 47,455 52,461 51,738 52,282 55,817
� � 178,248 167,315 152,508 148,228 155,911 153,970
�
� 166,109 155,921 135,694 128,623 125,130 128,899
� 73,228 68,737 56,180 54,111 64,251 57,865
�
� 6,245 5,862 8,211 6,904 8,825 8,108
1 48,564 45,585 39,146 23,930 22,633 25,807
I 281,388 264.129 243,474 228.286 220.252 227.591
I � ..,, .. . 218,591 205.184 193.041 190,058 195.137 197,961
Amounts in millions
� Totals $ 1,526,951 $1,433,296 $1,296,730 $1,208,385 $1,211,069 $ 1,217,986
� City direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
1
� Note:The combined sales tax rate for the City of Palm Desert is 7.75%,which represents the State of California mandated tax rate
of 7.25%and 0.5%additional sales tax imposed by the County of Riverside.
� The City of Palm Desert receives 1%of all sales tax generated within the city limits.
I
(1)Non-retail are a mix of manufacturers,distributors,builders and professionals seiling direct to consumers
1
� Source:Economics and Politics Inc via Califomia State Board of Equalization
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� -141-
I
City of Palm Desert
Supplemental Top 40 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30,2006
Top 40 Salas d Uee Taz Genentors(1) P�m�ry Economic 7op 40 Sales 3 Use Tax Generotors P�mary Economic
Cat� o Cat o
COS7CO WHOLESALE DEPARTMENT STORES HIGH TECH IRRIGATION SPECIAL MATLS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES DESERT ELECTRIC SUPPLY @IDG.MATLS-WHSLE �
DESERT SPRINGS RESORT 8 SPA RESTAURAN7S/HOTEI BATH&KI7CHEN ELEGANCE MISCELLANEOUS RETAII i
BEST BUY STORES FURNITURElAPPLIANCE LEGACY HOME FURNISHINGS FURNITURFJAPPLIANCE �
TARGET STORES DEPARTMENT STORES T J.MAXX APPAREL STORES �
ROB�NSONS-MAY DEPARTMENT STORE DEPARTMENT STORES DAL TILE SPECIAL MATLS-WHSLE
�
SAKS FIFTH AVENUE DEPARTMENT STORES TOYS R US MISCELLANEOUS RETAIL
1
MOBIL SERVICE STATION SERVICE STATIONS COfJSOLIDA7ED ELECTRICAL DSTRS SPECIAL MATLS-WHSLE
�
SEARS ROEBUCK 8 COMPANY DEPARTMENT STORES LEEDS 3 SON JEWELERS MISCELLANEOUS RETAIL
J C PENNY COMPANY DEPARTMENT STORES USA GASOLINE SERVICE STATIONS '
CIRCUIT CITY FURNITURE/APPLIANCE RALPH'S GROCERY FOOD MARKETS (
BED BATH 8 BEYOND MISCELLANEOUS RETAIL POOL 8 ELECTRICAL PRODUCTS SPECIAL MATLS-WHSLE (
MERWN'S DEPARTMENT STORE APPAREL STORES ARIZONA TILE SPECIAL MATLS-WHSLE I
LOWES HOME IMPROVEMEN7 B�DG.MATIS-WHSLE CHEVRON SERVICE STATION SERVICE STATIONS '
OESERT PIPE 8 SUPPLY BLOG MATLS-WHSLE SIMPLOT PARTNERS SPECIAL MATLS-WHSLE '
TOMMY BAHAMA RESTAURANTS ROSS STORES DEPARTMENT STORES '
ALBERTSON'S FO�D CENTERS FOOD MARKETS MOBIL GAS SERVICE STATIONS '
ARCO AM/PM SERVICE STATIONS JOHN DEERE LANDSCAPES SPECIAL MATLS-NMSLE '
PETE CARLSONS GOLF 3 TENNIS RECREATION PRODUCTS TRUSSWORKS BLDG MATLS-WHSLE t
MARSHALL'S STORES APPAREL STORES WILLIAMS-SONOMA MISCELLANEOUS RETAIL
1
(1)Listed in Sales Order _ 1
Sales and Use Tax Trends FY 2001 - 2006
�
%_%Chenge from Prior Year '
, Millions
' $t9.0 --- �..__----------- ------._.....------�--- -�--_— _ —___ ;
518.0 ��� '
317.0 ,
516.0 ii ix Zox -In Lieu' � '
515.0
514.0 I 31X �Sx 32% 1
S 13.0
512.0 � '
511.0 '
510.0
59.0 � '� �
38.0 1
a�.o �—- _._..-- —--- '
� s � - � — � ---- � - �
AmouMs � '
In Mlllbni �3.620 13.027 13.463 15.138 15.453 17.776
/
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Source:Municipal Resource Consultants,In lieu given to city from State ERAF Property Taxes,City oi Palm Desert ,
`The State of CalHomia exchanged Sales Tax Revenue with Property taxes,this amount represents the portion of sales tax that were exchanged �
-142- '
City of Palm Desert
Supplemental Prinicipal Sales Tax Remitters
Current and Six Calendar Years Ago
,��
$ 362,512 1 23.74% $ 269.800 1 22.16%
281.388 2 18.43% 227,600 2 18.70%
218,591 3 14.32% 197,161 3 16.20%
178.248 4 11.67% 154,000 4 12.65%
166,109 5 10.88% 128,900 5 10.59°/a
141,510 6 9.27% 92,200 6 7.57%
73,228 7 4.80% 57,900 7 4.76%
50,556 8 3.31% 55,800 8 4.58%
48,564 9 3.18% 25,800 9 2.12%
6,245 10 0.41% 8,100 10 0.67%
Totals $ 1,526,951 $ 1,217,261
Note:Current Califomia law prohfbits production of individual tax infortnadon as an eflort not to infinge on proprietary
infortnation,therefore confidentlal infortnation which is protected by law is not disdosed.
(1)Non-retail are a mix of manufacturers,distributors,builders and professionals selling direcl to consumers
Source:Economics and Politics Inc via Califomia State Board of Equalization
-143-
�1�
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Six Fiscal Years
i � ; Ati 5��•. .,�
1• , �,� '� � .
f�..,, '�s� �;'` a
2001 193,015.000 48,415,000 - 373.55$ 247,803,556 13 90% 5,712
2002 207.980,000 43,145.000 - 108,373 251,241,373 15.98% 5,861
2003 234.464.00� A0.528.000 1,104,363 1,148.582 277,242,845 16.73°,6 6,313
2004 256,000,000 28,823,000 981,656 833.358 288,438,014 16.18% 6,392
2005 250,485,000 26,050,000 858,949 508,755 277,903,7Q4 13.45°to` 5,639
2006 " 245,000,000 73,855.000 738,242 110,493 319,025.493 1521%` 6,440
Notes:Datails regarding the citys outstanding debt can be found in the notes to the 8nanclal sfatements.
'-The ciry issued S50 million of spccul assessmcnt bondt in fiscal year cnd 2006.
°•Pcrsona!income,population and per capip infomntion provide by JoAn E.Hwine,Ph.D.Econom/a&Pol/da,/xc., Califomia Dcpartrrcnt oCFinance,
and U.S Crnsus Burrau
`•Personal Income esrimated based on average growch nte of previous four years.The growth ram factor uud wu I.5•/..Income drta will be�dated once
the actual dan is availabte.
'-Debt is not and obligation w Ciry.
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-144• ..
City of Palm Desert
SupplemeutalSpecial Assesment Informadon
June 30 2006
1995 A 1995 H IY95 C' 1997 Rond� �qq�Ronds ��-j 01-01
District Namr\Description hlarlcs-Roos Pool Marks-Roos Marks-Roos 92-IR 9�-IA R Bighorn Revmue Bonds
�ai-11 Pod(&1•1 R) Pool 187-1) Ilernvista 9�-2 Sunterrace
Bond Issue Datr (N_'6 9i 09?6�95 09'_6 9i I2 I I-9� I?I I 97 06 2i 03
Final hlatunty Dalc 09 0'01 09 02 OS 09 0?O8 09 0'_06 09 01 06 lM 0'I J
Hi hest Intcrest Ratc 570•e SJO•.. i 709. 6 1'_5°. 6.4:Y. 4.80°.
Bond Issuc lmounl f 695.000 a.380.000 1,775.000 I_673.000 5.3?'_.000 930.000
Matured Pnncipal S 610.000 3.290.000 I.I�O.OW 136.OW ?35.000 210.000
('alled Prmcipal E 65.000 I.i90.000 350.000 I.ia?.000 5.09�.000 50.000
OutstandinE Bonds�41 S - - '_A5.000 - - 670.000
Redempnon Prcmmm J_'3°. 3 25Se 315°e 3 00°. 3 00°e 3 00°.
Ongmal Pareefs 962 518 1.117 86 '_7J 71
�ctrve Parcels - �3 I?95 6 8 68
ReserveRequvement(51 S - • Ii2155 � - 93.000
Resrne Balance OSi06(I 1 S - - 152.845 - - 98.195
Pnncipal Due 06/07(21 S • - IJ0.000 4.000 3A00 70.000
Pnncipal Levied OSi06(3) S - - 168.359 - - 71.83I
Intaest Due 06/07(21 S - - 26.505 1.4?J ?.?I B '_8.995
� Interest Levied 06i07(31 S � - 19,a59 - - 28,360
OS/06 Delmqucncy Rate 0.00: 0.005. 8 595: 0 00°�. 0 00'•: 5 84••.
.�bntapc Installmrnt Computauon 09 0'_�10 09 0?10 09 02 10 09�30-07 p9�30�0� 09 02 09
Datc 90%Rebate Due
Arb�tage Yield Rate 5.6194•4 5 81945. 5.8194': 5.6582°�e 5 6880•. 7 97699:
i Arbn�age-Amount Owed - - � • - •
ContmumgD�sclosure LastRepat I'_-14?Opi 12-142005 121a2005 12�14�2005 I11J-:005 1214-]OOi
I Issutd:
2003 01-0I Cameuoiry F�cYiNef
1997 Bonds 2004 R-Bondf Reveoue Bonds
1 2003 01-0I DW NNo 2005
91-1 98-1 Sllvcr Spar
DisMct NamelDescripNon Revenue Boods IlUniver�iry Pahl
94-3 Menno Indlan Rid`e C�nyon�C �e�' Special T��eonds
� 1992A R BI`horn ���u4' �200LA
l�n e o '
� BondlssueDate 0625•03 1211-97 02-1904 06�2Y03 05-0906
Final Matunry Date 09-0220 10 01 20 09 0?IB 09�0?•?8 09 01-36
{
Highest Interes�Retc 5.25•e 6.600'-. 5 100•�. 5 3759. 5371•�.
� Bond lssue Amouat f I.I57.000 23.509.000 '.9i5.000 2.340.000 i0.000.000
Matured Prv�cipal f IS3.000 6.562.000 620.000 I50.000 -
�
Called Pnncipal f 60.000 580.000 70.000 -
� Oulstanding Bonds(4� S I.010.000 16.867.00p I._'S5.000 '_.I'_0.000 50.000.000
' Redempt�on Prem�um 3.00°-e 3.00•.: 3.00!, 3 00°�: 3 00'.
Onguul Parcels 201 1.154 73 :SO I7
� Actrve Parcels 198 1.063 ?9 199 17
` Reserve Requvcmrnl(SI f 69.180 1.826.256 IlS.S55 163.3�I 3AI4.875
Reserve Balance OSi06 I l l S 73.04a 1.'r72.220 191.090 174.852 3.39?.992
� Pnncipal Due 06i07 121 S 45.000 oa3.p00 83.000 60.000 -
' Pnncipal Levitd OS/06(31 S 50.000 943 7'.79J 59.8�0 -
InterestDueOWU71?1 S 68.435 I.0?J.37? 53.735 I10.449 2.587.875
� Intercst Lried 06/07(31 S 47.385 1.051.365 43.630 I I 1.126 3.392.991
1 OS/06 Del�nQuency Rate 3 78••. 6?00`a 5 84°�: 0.00'�.
.4rh�tage installmen�CompWanon 09 0109 09 SO 0� 12-i6 OS 12 17 OR OS 09 I I
1 Date: 90Y.Rebate Duc
Aibrnage Yield Racr 66�'_°. 5 6RA]•. 3.8386•. SJ577°: 53i99•.
� Arbri[a�e-Amount Owed • - - - •
Conlinumg Dixlosure f as�Rep�t IJ I�?OOi I'la:005 I'1a-3005 12 I�?WS 5 I 2006
� I u :
' �I)Restn e F3�lanca are ai of 9 30 06,shontall adl be taoened M add�uonal lecy.and imnat eemmgs see Financlal Swemrnts\ote 10
' (-'1 Amouni represents pnnclpal and mieest�o becollected on the F1'06 07�a�roll for Debt Sm•Ice Peymrnt due m FY 06 07
' 13)La�ied amounb reFlect ad�us�mrnts for construcnon fund+.rtserve funds.redempt�on funds and olher ad�usimrnts
�a)Represenis Outstanding Bonds ahet$eptember_'.'_OW pnntipel paymrne
' (i)Resene Reqwremnu es of 9 2 OG
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Sou�ce Muni Finannal.4nnunl Repon
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City of Palm Desert �
Ratios of General Bonded Debt Outstanding �
Last Six Fiscal Years
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2001 193,015,000 3.370°/a $ 4,559
2002 207,990,000 3.640% $ 4,852
2003 234.464,000 4.100% 5 5,339
2Q04 256,000,000 4.480% � 5,713 '
2005 250,A85,000 4.380°/a $ 5,083
2006 245,000.000 4.280% $ 4,946
Notes:Details regarding the city's outstanding debt can be found in the notes to the financial statements.
'-County of Riverside,County Auditor Controller,Assessed Valuations
°-Population information provided by John E.Husing,Ph.D.Economlcs 6 Polttics,Inc., Calitomia Department of Finance..
and U.S Census Bureau. "
-146-
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� City of Palm Desert
M Direct and Overlapping Government Acitivities Debt
� JIJNE 30,2006
� 2005/Ob Assessed Valuation: $ 10,550,617,194
. Redevelopment Incremental Valuation: 6,627,109,846
Adjustcd Assessed Valuation. $ 3,923,507,348
� Cit�s Share of
w DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT: Total Debt 6/30/06 %Applicable(I) Debt 6/30/06
� Desert Communiry College District S 69,I I 1,886 15.730% S 10,871,300
Desert Sands Unified School Dishict General Obligation Bonds 257,268,984 32.407% 83,373,f 60
� Desen Sands Unified School District Lease Tax Obligations I9,545,000 32.407% 6,333,948
Palm Springs Unified School District 205,l60,000 1.268% 2,601,429
� Coachella Valley County Water District,ID No.54 3,840,000 65.413% 2,511,859
Coachella Valley County Water District,ID No.55 5,360,000 9.236% 496,897
� Coachella Valley County Weter District,ID No.58 2,525,000 39.699% 1,002,4p0
� City of Palm Desert 0 100.000% 0
City of Palm Deurt 1915 Act Bonds 8,580,000 ]00.000% 8,580,000
M CIry of Palm Deurt Communlry Facllltlea Dlstrict IYo.91-1 (7,829,Q00 LUUA00°!o 17,829,000
. TOTAL DIRECT AND OVERLAPP[NG TAX AND ASSESSMENT DEBT S 133,599,993
r OVERLAPPING GENERAL FUND OBLIGATION DEBT:
� Riverside County General Fund Obligations 3 630,525,566 3.180% 5 20,050,713
Riverside County Pensions Obligations 396,845,000 3.180% 12,619,671
� R��erside County Board of Education Certificate of Panicipation I 1,240,000 3.180% 357,432
Desen Sands Unified School District Certificates of Participation 14,005,000 32.407% 4,538,601
� Coachella Valley Recrcation and Park District Certificates ofPanicipation 2,615,000 27.215% 711,672
Palm Desert W ater Services District Certificates of Participation(3) 220,000 100.000% 220,000
� Coachella Valley County Water District,ID No.71 Certificate of Participation 8,350,000 23.157% 1,975,292
� TOTAL GROSS OVERLAPPING GENERAL FCJND OBLIGATION DEBT S 40,473,381
A Less: Riverside County Administrative Center Authority 622,997
Palm Desert Water Services District Certificates of Participation(3) 220,000
� TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT S 39,630,384
w GROSS COMBINED TOTAL DEBT 1�4,073,374 (2)
� NET COMBINED TOTAL DEBT I73,230,377
� (I)Pementage of overlapping agen�+s assessed valuation located within bondaries of city
(2)Excludes tax revenue anticipation noted,enterprise rcvenue,monsge rovenue and tax ellocation bonds end non-bonded
� capital lease obligations
(3)Palm Desen Water Services District C.O.P.was assumed by Coachella Valley Water District
�
� Ratios to 2005-06 Assessed Velualtions:
� Dlrect Debt D.00°/.
'Total Direct and Overlapping Tax and Assessment Ikbt I.27%
�
gatios to Adiusted Valuations
� Gross Combined Total Debt 4.44%
� Net Combined Total Debt 4.42%
� STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/06 $ 0
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� Source:Califomia Mu�icipal Scatistics,Inc.,San Francisco
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City of Palm Desert
Legal Debt Margin Information
Last Six Fiscal Years
Legal Debt Margin Calculatlon for Flscal Year 2006
I � I �''. � $10,550.617,194
L 1,582,592,579
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�,:.. . ,,.� .�, ,� S 1,582,592 579
FISCAL YEAR
2001 2002 2003 2004 2005 2006
967,521,240 1,084.078,030 1,200,179,536 1,306,436,757 1,397,304,489 1,582,592,579
967,521,240 1,084,078,030 1,200,179,536 1,306,436,757 1,397,304,489 1,582,592,579
_ ... ... _. .; 0% 0% 0% 0% 0% 0%
Source:Califomia Municipal StatisUc,Inc.San Francisco
(1 j Section 43605 of the Califomia Govemment Code.
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� City of Palm Desert
� Pledged-Revenue Coverage
Last Six Fiscai Years
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� 2001 5,471,643 2,485,000 3,436,552 0.9240 14,993,158 3.895,000 10,610,473 1.03
2002 4,623.412 2,295,000 2,730,780 0.9199 16,294,794 3,960,000 10,538,582 1.12
� 2003 4,495,603 1,930,000 2,451,363 1.0261 18.496,636 4,195,000 10,960,525 1.22
. 2004 4,606,935 1,790,000 2,161,283 1.1659 20,344,776 4,800,000 11,748,004 1.23
2005 2,878,134 2,073,000 1,483,245 0.8093 23,585,980 5,260,000 12,366,733 1.34
� 2006 ' 2,788,698 1,645,000 1,378,548 0.9223 24.065,285 5,485,000 12,409,968 1.34
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� Notes:Details regard(ng the ciry's outstanding debt can be found in the notes to the flnancial statements.
� '-The dry issued$50 mil5on of special assessment bonds in flscai year end 2006.
� °-Tax inaement bonds are backed by property tax incxement based on cakxrlation provided by the Riverside County ta�c assessor offlce.
� Additionai In/ormantion on tax Increment can be found In the notes to the flnandal statements.
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Ciry of Palm Desert f
Demographic & Economic Statistics ,
Last Six Fiscal Years
Ptiscal Percentage Per Capita Rivers(de Percentage �
Year Increase Personal Personal County Increase Unemployment �
End Pooulation {Decreasel Income CY a b )ncome CY Ponulation Decrease Rate c �
2006 49,539 0.5% $2,097,434,084 $ 42,339 1,953,330 4.07% 2.8%
2005 49,280 10.0% 2,066,437,521 41,933 1,877,000 5.64% 2.9°/a ,
2004 44,812 2.0% 1,772,405,266 39,552 1,776,743 5.00% 3.3% �
2003 43,917 2.5% 1,657,414,199 37,740 1,692,187 2.91% 3.7%
2002 42,863 1.2% 1,573,796,241 36,717 1,644,341 3.06% 3.7% �
2001 42,334 12.5% 1,739,444,000 41,089 1,595,576 5.73% 3.1% ,
2000 37,634 3.7% 1,713,352,340 45,527 1,509,114 2.43% 3.1%
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a-Personal income,population and per qpita information provided by John E.Huslnp,Ph.D.Economlcs 6 Polltics lnc., A
Califoma Department of Finance.,and U.S.Census Bureau.
b-Personal Income estimated based on average grovvth rate of previous four years.The growth rate factor used was 1.5%.Income data will be �
updated once the actual data is available. i
c-Unemployment rate for fiscal year 05/O6 is estimated based on June 30,2006 State of Calrfomia unemployment rate of 4.8%less the ,
City of Palm DeseA relation to the State's unemployment rate ,
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Sources:State Department of Finance,U.S.Dept of Labor,John E.Husing,PhD,Economics 8 Politics,Inc ,
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-150-
City of Palm Desert
Principal Employers
Current Year
1300 1 5.44%
700 2 2.93%
630 3 2.64%
500 4 2.09%
500 5 2.09%
400 6 1.67%
300 7 1.26%
250 8 1.05%
� 236 9 0.99%
.. . ._. . ._ . 220 10 0.92%
Totals 5,036 21%
Sources:MBIA Muni-Services thru America's Labor Market Information System(ALMIS).
-151-
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2006
Citv/ Municipal Government
Form of Gorvernment: Council -City Manager/Charter Ciry
Date of Incorporation: November 26, 1973
Number of Employees 160 Full Time Employees
Size of City 25.5 Square Miles
Geographic Location: Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
Streets 157 paved street miles
Number of Business Licenses 9,632 active business licenses
CONTRACT SERVICES:
Police Department Contract with Riverside Counry Sheriff-65 positions plus 18 support staff
Fire Department Contract with Riverside County/State Fire 35 positions
Animal Control Riverside County Animal Services
Water&Sewer: Coachella Valley Water District
Trash Collection Bur�tec-Waste Management
Electric Southern Calif. Edison
Gas Southem California Gas
Telephone Verizon
Airport Palm Springs International Airport
Public Education
Elementary School (grades K-5) 3
Middle School (grades 6-8) 1
High School (grades 9- 12) 1
Community College 1
CSUSB- Palm Desert Campus 1
Insurance Covera�e
General Liability Coverage Calif. Joint Powers Insurance Authority 50 MillionlEvent
(Excludes Earthquake & Flood) Excess Coverage:American Guarantee& Liab. Insurance
Special Events Calif. Joint Powers Insurance Authority 1 Million
Workers Compensation Calif. Joint Powers Insurance 5 Million
Property Insurance Robert Driver Based on Prop.Value
Health Insurance
Medical California PERS; choice of PPO, HMO
Dental Delta Dental
Vision Vision Service Plan
Disability Insurance Disability- Life Insurance Company of America
Life Canada Life
Retirement California PERS- Public Employers Retirement System
Source: City of Palm Desert
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� City of Palm Desert
Fuil-time Equivalent City Government Employee's by Function/Program
� Last Six Fiscal Years
1
1 '
� 53 52 51 51 48 45
' 19 19 18 18 15 11
, 28 28 28 32 30 31
129 123 123 126 126 125
' 49 39 39 39 36 35
' 11 16 16 16 16 14
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� Totals 289 277 275 282 271 261
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' (1)The City operates as a"coniract city'utiiizing,primarily,agreerrient with other govemmental entfties,private firtns and individuals
' to provide services.
Contracted serv'ices inGude:Police and Fire proteclion through the Counry of Riverside,animal control,heallh services,
' legal services and landscape maintenance.
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, Source:City of Palm DeseR Financial Plan,Califomia Department o(Forestry and Fire Protection
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City of Palm Desert
Operating Indicators by Function /Program
Current Year
420
123,263
41,352
543
1374
4527
6,600
928
1,845
5,683
29,925
11
2,967
81
88.776
,. . ,
(1)The Ciry operates as a'contrad city"utilizing,primarily,agreement with other govemmental entities,private firtns and individuals
to provide services.
Contracted services indude:Police and Fire protection through the County of Riverside,animal control,health services,
legal services and landscape maintenance.
Sources:Riverside Counry Sherfffs Dept.,Califomia State Department of Forestry 8�Fire Protecdon,
City of Palm Desert,Coachella Valley Recreatan 8 Park District,Burrtec Waste
-154-
Ciry of Palm Desen
Capital Asset Statistics by Function/Program
Current Years
>.��;��;;
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6 �
2
t 28
4
3
6 plus 2 Reserved
4 plus 1 Breathing Support
154.11
85
200
11
7
8
5
6
S
6
2
50,322
979'0
9
6
6
32,457
5,708
10,836
1.321
2
36
160
1
46,602
43,725
90,327
(1)The City operates as a"coMract citY utilizing,primarily,agreemeM with other govemmeMal eMitles,private firtns and individuals
to provide services.
CoMracied sarvices include Pdice and Fire protection through the Counfy of Riveroide,aNmal corkrol,health eervir,es,
legal serv{ces and landscape mafrdenance.
Sources:Riversitle County Sheriffs Dept.,Calitomia State Department of Foresiry&Fire Protection,
City of Palm Desert,Coachella Valley Recreation 8 Park District,Burrtec Waste
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Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
Note: This section is not required by GASB No. 44, however, City believes that statistical
information is beneficial to the reader.
-157-
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+'��as�� Cit�/ of Palm Desert �
' �rqTF J 1
� �:
DINAH�SHURE R:��0�. � • ,
�;, �
� � ���• ���
�-- -- - =,. � �
� _ �.� Redevelopment ,
A enc
- °Ew�`°'Fo"°'°" �? � Project A eas �
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FRANK'EINA•TRA�OR . FRANK•SINA7Rl1 DR��z\
�
ProJect Area No.? ,�A�'4 q�� �
1937 °����
� ' p`'` - _ ..
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< . , -CWNTRY•CUIBDR -------
�— ---- -�COUNTRI/'.fXUB:DR , -�"
�n � � o o �
�—HOVLEY•LN W�—a 0---� � tJ7 �
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U �
---Mov�er•ureT-�--., � � � �
� ProjPct Arca Plo. 3
1991 nov� t:r�e—�----�---- - � �
' � � P�ojectArea No.4 �_
--�` � 1993�.%Z---._. . 3 �
N
;
MAONE81Ii�FALLS OR ��--- ` �y , � �
� � ' � Y � � �
PARK•VIEW'OR-t � � �+_�" o $\ � < �
t O < > v -CALiFORN�� ;
o�----� o--�-FREDWARINl�O ----�-- FREBWARIN6�DR« �
Project Area No 1�< � � ~ W
Oiiginal �'�; � � _-� � �
1975-
� 7FATE�H �111 �
' -P SEO
� !` �MWNTAIN�DR �
;.�•�.�•�! y=� �-FAIRWAYOR �
� PEVINE EF---� �
i � �
� �� � Project Area No. 1 -Original(1975) �
i MAYSTACK•RD--- �� Project Area No. 1 -Added Temtory(1982) �
■—--•—---� � � � Project Area No. 2(1987)
. S° �
� i i MESA VIEWDIQ,�oa•ro��� � L_� Project Area No. 3(1991)
� � Pro ett Area No. 1 • �J PrOject Area No.4(1993) �
-� � Added Teiritory L�City Limits �
� 1982
= M �
� �� /4/
� , �� '` ` w E �
� � � 6
� �' ` • �
� '--, � ` , : 0 O S t 7
1 ..: � i �
�—--.�--«- � � November, 2006 �
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City of Palm Desert
RDA Project Area#1 and 1982 Annex
FY 2006 Top Twenty Property Taxpsyers
,!k�:.
$ 113,943,575 20.1°/, 800,000 sq.ft.Retail Shopping Mall Westfleld
Shopp(ng Town
$ 73,461.641 13.0°/a Major CommerGal/Retail Buildings
$ 72,748,261 12.80�o Garden's at EI Paseo up-scale retail shopping
Center.
$ 38,571,462 6.8% Recreational/Residentlal Land Developer
$ 23,945,574 4.2% Retail Store in Westfield Mall(RobinsoNMay)
$ 21,687,240 3.8°� Mix Commercial Bufldings One-Eleven Town
Center Sho in Center
$ 21,440,812 3.8°,6 Residential Development
S 17,169,199 3.0°� Retail Store in Westfield Mall(Sears)
$ 14,733,579 2.6% Retail Store in Westfield Mall(Macy's)
$ 15,259,332 2.7% Assissted Living Center
$ 12,103,630 2.1% Commercial Shopping Center&Parking lot
$ ��9��� 2�,�o Commercial Center Palms to Pines
Ral hs/Washin ton Mutual
S 11,447,171 2 0�� Mlx CommerdaVRestaurant Buildtngs EI Paseo
West
S 11,277.033 2.0% Commercial Shopping Center/C.O.D.College
$ 12,455,604 2.2% ResidenNal Land Bighom Development
$ 10,482,776 1.8% Comercial Shopping Center-Trader Joe's
$ 10,195,696 1.8% Vacant Commercial Land�ilage Court)
$ 9,639,121 1.7% CommerGal Shopp(ng Center&Parking lot
$ 9,488,053 1.7°/a Commeraal Shopping Center 8 Parking lot
S 10,694,514 1.9°� ResidenUal Development
$ 8,957,381 1.6% 198 Sufte Hotel
$ 8,731,992 1.59'o Retail Store 8 Land Westfleld Mall(JC Penney)
$ 8,598,766 � 50� CommerGai Shopping Center,Parking Lot&Gas
Station
$ 8,572,106 1.5% Retail Stores
$ 9,210.921 1.6% Commerciai Shopping Center 8,Parking lot
�a�
S 566,749,439 100•/. ,
Source:litlL Coren 8 Cone and Riverside County Assessor 2004/2005 Combined Tax Rdls
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City of Palm Desert
RDA Project Area#2
F1'2006 Top Twenty Property Tazpayers
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$ 186,325,797 q2.Z% Desert Sp�ings resort 895 room Hotel&Golf
Course
$ 69,304,207 �5.7qa 71me Share CondosNillas(Shadow Ridge&
Desert Springs Villas)
$ 30,267,496 6.85°� Marriott Courtyard 151 Room and Residence Inn
130 Room Hotels
$ 30,292,565 6.85°,6 Desert Springs Golf Course
$ 24,347,962 5.51°� Mixed Use shopping Center(Ralphs/
Wal reens �
$ 21,364,752 4.83°�Vacant CommerciaUResidential Land i
S 10,821,691 2.40% Private Golf Coursa 8 Homes �
$ 9,086,716 2.06% Golf Course Timeshares Condominiums �
$ 8,672,821 1.96%Assissted Living Center �
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$ 8,415,806 1.90% Vacant CommerGaUResidential Land
$ 7,399,216 1.67°� Gotf Course Timeshares Land '
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$ 5,807,867 1.31% Hamptonn Inn 88 room Hotel 8 Suites '
$ 4,956,912 i.12% IndushilaUCommercial Land �
$ 4,883,414 1.109'o Golf Course Tfineshares Land �
$ 4,330,529 0.98°�6 Vacant CommerciaUResidentlal Land �
$ 3,555,159 0.80°k E�ocon Mobile Service/Gas staUon �
$ 3,486,780 0.79°�6 Residentfal Homes in World Development 1
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$ 3,178,524 0.72% Vacant Commerdal Land
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$ 2,860,705 0.85% Bank on Country Club Dr '
$ 2,822,426 0.64% Sfngle Family Residence �
S 441,981.145 100Y. (
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City of Palm Desert
RDA Project Area#3
2006 Top Twenty Property Tsxpayers
$ 31,029,800 20.5% MuIU Famify Dwellinp (Canterra Apts&Vacant land)
$ 25,779,846 17.1°� Senior CiHzens Assisted Living Center(The Fountains)
$ 18,606,716 12.3% Cable Operator(Commerdal O(ftce Buildingsj
S 8,037,550 5.3°k Industrial/Commercial Business Park
$ 7,165,200 4.7% IndusMal/Commeraal Business Park
$ 5,833.183 3.9% Business/Commerdal Offices
$ 4,334,651 2.9°,6 ftefuse Collection Base/Industrial Otfices
S 5,587,286 3.7°� Industrial OHices&Parking Lot
$ 5,100,588 3.4% Mix Use IndusUiaUCommercial Buildings/Stores
$ 4,811,d34 3.2% Si siness/Commercial Offices(Comer of Cook/Hovley
$ 4,000,000 2.6°,U IndusMal/Commercial Business Park
$ 2,840,403 1.9% Business/Commercfa�Offices
S 3,641,421 2.4% Storage Facfliry(Stor-n-Lock)
$ 3,519,000 2.3°k Business/Commercial Offices
$ 3,488,290 2.3% Vacant Commerclal Land
S 3,300,517 2.2% Business/Commercial Offices
$ 2,439,419 1.8% Industrial Offlces
S 2,966,926 2.0% IndusMal Storage Factlity
S 2,940,110 1.9°� Industrial Business Park
$ 5,759.168 3.8% Split Parcel Industrial Business/Commeraal Offlces
S 151,159,508 100N.
� Source:HdL Caen&Cone and Riverside Counry Assessor 2004/2005 Combined Tax Rolls
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City of Palm Desert
RDA Project Area#4
2006 Top Twenty Property Taxpayers
. �
$ 29,829,390 22.6% Indian Ridge Goif Course&Homes(Private)
$ 27,270,549 20.7% MuIU-Family Qwellings(Desert Oasis Apts)
$ 12,240,000 9.3% Storage Facility(Sure Save Storage)
S 11,573,238 8.8% Mulfi-Family Dwellings(Palm DesertApts)
$ 7,471,000 5.7°� Muki-Family Dwellings(Villas on th Green,55+Apts)
$ 5,398,033 4.19'o Single Family Residence(Indian Ridge C.C.)
$ 4,579.730 3.59'o Palm Desert Resort Golf Course 8 Clubhouse
$ 4,346.908 3.3% Woodhaven Golf Course
$ 3,742,280 2.8% Palm Desert C.C.Golf Course 8 Clubhouse
$ 3,262,501 2.5% Multi-Family Dwellings(Royal Palms Apts)
$ 3,166,127 2.49�o Single Famfly Residence(Indian Ridge C.C.)
Business/Commeraal Offlces(Comer of Fred
$ 2,656,445 2.0%
Warfn 8 Washin ton St
$ 2,333,374 �8,� 2 Single Family Residences(Indian Ridge
C.C./Whitehawk
$ 2,082,479 1.69'0 2 Single Family Residences(Indian Ridge C.C.)
$ 2,066,542 � so� Mobil Service/Gas Station 8 Adjacent Commercial
Land
$ 2,050,302 1.6°�6 2 Single Family Residences(Indian Ridge C.C.)
$ 2,012,165 1.5% 3 Single Family Residences(Indian R(dge C.C.)
$ 1,989,000 1.59'o Single Family Residence(Indian Ridge C.C.)
$ 1.866.090 1.4% Business/Commerdal Offices
S 1,861,500 1.4°� Single Family Res(dence(Indian Ridge C.C.)
S 131,797,653 100•/.
Source:HdL Coren 8 Cone and Riverside County Assessor 2004/2005 Combined Tax Rolls
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�
� City of Palm Desert
r Project Area Statistics
� June 30, 2006
�
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� 07/16/75 11/25/81 07/15/87 07/17/91 07/19/93
� 02/27/03 02/27/03 02/27/03 02/26/04 02/26/04
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� 7/16/2026 I1/25/2032 7/15/2038 7/17/2042 7/19/2044
• 7/16/2016 11/25/2022 7/15/2028 7/17/2032 7/19/2034
• Repealed Repealed Repealed Repealed Repealed
�
. none $ 200,000,000 $ I50,000,000 $ 100,000,000 $ 135,000,000
' $ 758,000,000 $ 500,000,000 $ 800,000,000 $ 360,000,000 $ 600,000,000
' R,C,P R,C,P R,C,P,O R,I,C,P R,I,C,P
� 580 5,240 2,927 764 2,260
�
� R=Residential, C=Commercial, P=Public Facilities, I=Industrial, 0= Other
�
�
� (1) Figures are unadjusted and should be annually adjusted by Consumers Price Index set by
� the Bureau of Labor Statistics for RDA 2
�
�
�
�
�
�
�
�
r
�
•
�
�
�
� Source: Palm Desert Redevelopment Agency
�
r
� -,63-
�
�
Ciry of Palm Desert �
Redevelopment Agency
Tax Ailocation Bond Issue InformaUon «
June 30,2006
�
, �
i .
25 28 27 21 20 30 30 �
07/24/97 03/13/02 08/05/03 O6/24l04 07/17/02 O6/01/95 03/26/03
04/01/23 04/01130 04/01/30 04/01/25 08/01/22 OS/01/25 08/01/33 �
5.825% 5.100% 5.000% 5.000% 5.000°/a 5.20% 5.00%
S 71,955,000 S 22,070.000 3 19,000,000 S 24,945,000 $ 17,310,000 S 4,090,000 S 15,745,000 �
$ 57,515,000 S 22,070,000 S 19,000,000 3 23,595,000 $ 15,310,000 S 3,870,000 S 15,745,000
0-2.00% 0-2.00% 0.00% 0.00% 0-2.00% 0-2.00% 1-2.00% �
MBIA MBIA MBIA AMBAC MBIA MBIA MBIA
5.126,790 2,804,344 950,000 2,430.750 1,339.150 343,900 769.006 r
(�) (�) (�) (�) (�) ��) (�) �
S 0 S 0 $ 0 S 0 S 0 S 0 S 0
2,025,000 0 0 855,000 690,000 35,000 0 �
3,205.899 1,114,665 950,000 1,123,063 690,188 229,795 769,006
5.4584% 5.2939% 4.8571% 4.7961% 4.7043% 6.0485% 4.9502% �
04/01/02 OM13107 08/05/OB O6/24/09 07l17/07 06/14/00 03/26/08 �
�
�
�
30 30 30 30 13 30 �
08/05/03 03/01198 11/28/01 O1l01l98 08/01/95 09/05/02
04/01/33 10/01/28 10/01/31 10/01/27 09/01/08 10/Otl31 �
5.13% 5.00% 4.80°i6 5.10% 5.55% 4.90°/a �
S 4,745,000 S 11,020,000 S 15,695,000 $ 48,780,000 S 6,305,000 S 12,100,000
S 4,4/0,000 S 10,140,000 S 15,085,000 S 45,080,000 S 1,820,000 S 11,380,000 �
2.00°/a 0-2.00% 0-2.00% 0-2.00% 0-2.00°/s 1-2.00%
MBIA MBIA MBIA MBW MBIA MBIA �
297,953 768,020 965,780 3,625,950 630,500 779.250
(1) (t) (1) (1) 762.971 1) �
s o s o a o s o s o s o
90,000 230,000 170,000 590,000 555,000 245,000 �
204,298 520,415 890,825 2,277,410 113,378 521,025 �
4.9358% 5.2271% 4.9464% 5.1343% 5.223196 4.8290%
�
08/05/08 10l01/02 11/28/O6 10/01/02 09/01/04 09/05/07 �
(t)A sucaty bond was issued by MBIA lnsuranc�a,tuluce sesecve balance's will be zero. �
�
�
�
�
�
Sourc:e:City of Palm Desert and Redevebpment Agency �
�
�
�
�
�
r
r
-'�� r
City of Palm Desert
FY 2005/2006
Breakdown of Basic 1% Property Tax Levy Rates
Redevelopment Project Areas
�� -;, - ;�1�.,r,.�:�
.i,. .��
28.39580760% 28.33559878% 26.9588697% 25.6015532% 21.92078568%
2.74938102% 2.88507492% 2.9106429% 2.81745045% 2.82984478%
5.91859825% 6.21070853% 6.2657416°h 6.06513225% 6.09180928%
0.00000000% 0.00000736% 0.00000000% 0.00000000% 0.00000000%
0.00000000% 0.00007881% 0.00000000% 0.00000000% 0.00000000%
0.00000000% 2.17093272% 3.88173970% 4.2370184% 8.65736663%
0.00000000% 0.01607493% 0.00000000% 0.00000000°k 0.000000009'0
0.00000000% 0.03460448% 0.00000000% 0.00000000% 0.00000000%
36.50230863% 36.90429927% 27.0158766% 37.4060432% 37.57054962%
0.00000000% 0.00000000% 8.4647941% 0.00000000% 0.00000000%
7.58504302% 8.03775967% 8.0299267% 7.7728353% 7.80702249%
4.12664995% 4.37295265% 4.3686919% 4.2288195% 4.24742164%
0.42949778% 0.42968059% 0.4077985% 0.3872590% 0.44210227%
0.00000000% 0.00000000% 0.00000000% 0.0000000% 0.00000000%
0.34255535% 0.30187976% 0.2535338% 0.3510362% 0.35258441%
0.00000000% 0.02811780% 0.0501956% 0.0000000% 0.00000000%
2.01227829% 1.32205216% 1.7328647% 1.0684453% 0.00000000%
1.38030813% 1.46269387% 1.4612705% 1.4144811% 1.42070577%
2.08767372% 1.83976963% 1.5451206% 2.1393605% 2.14877338%
2.757811049'0 2.92144624% 2.9195669°h 2.8260887% 2.87850771°/a
0.00000000% 0.97553160% 0.0374297% 0.0324927% 0.03638848%
2 22�9�922% 0.02054566% 0.0000000% 0.0743820% 0.00279735%
3.49116802% 1.73019057% 3.6959367% 3.5776019% 3.59334050%
0.00000000% 0.000000009'0 0.00000000% 0.00000000% 0.00000000%
,,_ 100.00000000% 100.00000000% 100.00000000% 100.00000000% 100.00000000%
-165-
`
City of Palm Desert `
Historical Tax Increment Summary `
Redevelopment Project Area#1 -Original `
Last Ten Fiscal Years
r
FY 2006 2005 Z004 2003 2UO2 f
Secured/Unsecured $ 7,996,533 $ 7,406,602 $ 6,934,754 $ 6,503,515 $ 6,360,760 �
Supplemental-PY �
Supplemencal-CY 817,902 200,879 151,075 49,849 104,267 �
SBE(Utility) 280,131 300,931 297,098 288,489 285.323
Total Cross Increment 9,094,566 7,908,412 7,382,927 6,841,853 6,750,350 �
Low/ModHousingSetAside (1,803,116) (1,561,352) (1,455,810) (I,348,011) (1,328,643) �
Tax Increment Less Low/Mod 7,291,450 6,347,059 5,927,117 5,493,842 5,421,707 �
Total Pass-Throughs (830,846) (279,854) (316,366) (696,443) (922,984) �
SB2557Charges (78,987) (101,653} (103,877) (101,797) (107.137) �
IYet TaY Increment Agency(1) S 6,381,617 S 5,965,552 S 5,506,874 S 4,695,602 S 4,391,586 �
�
FY 2001 2000 1999 i998 1997 �
Securedl[Jnsecured $ 6,199,196 S 5,549,207 S 5,484,253 $ 5,341,708 $ 5,185,911 �
Supplemental-PY 29 0 205,722 I 38,806 �
Supplemental-CY 140,6b7 58,920 0 0 0 M
SB£(Utility) 292,520 332,579 322,956 331,955 324,173 �
Total Gross lncrement 6,63Z,383 5,940,736 5,807,209 5,879,386 5,648,890 �
LowlModHousingSetAside (1,305,693) (1,168,457� (1,161,442) (1,293,465) (1,242,756) �
Tax Increment Less Low!!1�Iod 5,326,690 4,772,279 4,645,767 4,585,921 4,A06,134 �
Total Pass-Throughs 0 0 0 0 0 �
SB 2557 Charges (I 03,919) (98,451) (104,485) (62,056) (105,440) �
Net TaY Increment Agency(1) S 5,222,771 S 4,b73,828 S 4,541,282 S 4,523,865 S 4,300,694 �
«
I —- --- - - - — �
Percentage represents change from prior year. I �
i
6.97% _ � �
i $7,000,000 —' 8.33% �
$6,000,000 17.28% 6.92% �
$5,000,000 -15.9 I% !
$4,000,000 �
$3,000,000
$2,(}00,000 �
$1,000,000 `. ! �
$O �-- ----- -- ---
2006 2005 2004 2003 2002 �
� �
_ _ - - �
(1)Net Tax Increment Agency does not include Debt Service payments. �
�
Sources: City of Palm Desert.Tax Increment Calculations&County of Riverside �
-166- �
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area# 1 -Amended
Last Ten Fiscal Years
F Y 20Q6 2005 2004 2003 2002
Secured/Unsecured $ 31,237,832 $ 27,778,894 $ 25,247,194 $ 22,967,677 $ 19,826.224
Supplemental- PY 0 0 0 0 0
Supplemental-CY 5,644,432 1.502,190 886,454 91U,786 2,011,351
SBE(Utility) 167,752 142,166 144,829 136,296 134,SO�l
Tota!Gross lncremeot 37,050,016 29,423,250 26,278,477 24,014,759 21,972,379
Low/Mod Housing Set A�ide (7,350,269 (5,811,002 (5,182,761 (4,733.721 (4,330,166
Tax Increment Less Low/Mod 29,699,746 23,612,248 21,095,716 19,281,038 17,642,213
Total Pass-Throughs (17,382,480 (I 3,463,639 (1 I,740,730 (I 0,523,374 (9,583,446
SB 2557 Charges (298,669 (368,240 (364,672 (346,I SS) (32(,SS f)
Net Tax Increment Agenc��(1) S 12,018,598 S 9,780,369 S 8,990,314 S 8,411,509 S 7,737,217
F 2001 2000 1999 1998 1997
Secured/Unsecured $ 15,969,365 $ 12,683,176 $ 11,791,667 S 11,283,027 $ 10,962,401
Supplemental-PY 0 399,222 91,071 37,S18 (20,053)
Supplemental-CY 1,352,695 480,210 0 0 0
SBE(Utility) 138,207 152,108 142,885 146,870 135,100
Total Gross Increment 17,460,268 13,714,716 12,025,622 11,467,415 11,077,448
Low/Mod Hou�ing Set Aside (3,440,490 (2,699,974 (2,405,124 (2,293,483 (2,215,490
Taz lncreroent Less Low/Mod 14,019,778 11,014,742 9,620,498 9,173,932 8,861,958
Total Pass-Through� (7,339,I95 (4,598,001 (3,966,585 (3,732,310 (3,605,208
S$2557 Charges (257,820 (214,847 (214,426 (123.390 (219,533)
Net Tax Increment Ageocy(1) S 6,422,763 S 6,201,894 S 5,439,487 S 5,318,232 S 5,037,218
Percentage represents change from prior year.
$14,000,000 22.88% — -- ---- , ,
$12,000,000 8 790�0 �
$10,000,000 6•88% 8.71%
20.47% �
$8,000,000
i
$6,000,000 .
$4,000,000 �
$2,000,000
$0 ---- ------ -- ------ -- -- �
, 2006 2005 2004 20a3 2002 �
�
i (1)Net Tax Increment Agency does not include Debt Service payments.
1
� Sources:City of Palm Desert,Tax Increment Calculations Worksheets&County of Riverside
� -167-
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2006 2005 2004 2003 2002
SecuredNnsecured $ 13,756,558 $ 12,629,958 $ 11,717,869 $ 10,422,746 $ 8,575,348
Supplemental-PY
Supptemental-CY 1,553,145 698,023 812,847 548,5I7 257,896
SBE(Utility) 39,774 23,747 25,689 22,768 22,519
Total Gross Increment 15,349,478 13,351,728 12,556,405 10,994,031 8,855,763
Low/Mod Housing Set Aside (3,043,663) (2,636,969) (2,477,550) (2,167,507) (1,743,454)
Taa Increment Less Low/Mod 12,305,815 t0,714,759 10,078,855 8,826,524 7,112,309
Total Pass-Throughs (6,072,950) (5,459,600) (4,683,769) (4,320,158) (3,296,575)
SB 2557 Chazges (131,163) (166,884) (168,655) (L 56,494) (138,491)
Net Tax Increment Agency(1) S 6,101,702 S 5,088,275 S 5,226,431 S 4,349,872 S 3,677,242
FY 2001 2000 1999 1998 1997
Secured/Unsecured S 7,816,649 $ 7,120,210 $ 6,330,882 $ 5,899,l66 $ 5,377,930 '
Supplemental-PY I5t,051 312,878 187,62� 65,221 '
Supplemental-CY 391,197 93,861 0 0 '
SBE(Utility) 23,088 25,187 21,385 21,982 16,653 '
Total Gross Increment 8,230,934 7,390,309 6,665,145 6,108,774 5,459,805 �
Low/ModHousingSetAside (1,621,091) (1,454,141) (1,333,029) (1,221,755) (1,091,961) �
Tax Increment Less Low/Mod 6,609,843 5,936,168 5,332,116 4,887,019 4,367,844 �
Total Pass-Throughs (2,790,025) (2,423,175) (2,152,320) (1,913,246) (1,702,484) �
SB 2557 Charges (125,482) (119,606) (114,107) (80,229) (70,875) �
I
Net Tax Increment Agency(1) S 3,694,336 S 3,393,387 S 3,065,689 S 2,893,544 S 2,594,485
1
_.. - — -- — - - I
Percentage represents change from prior year.
I
$7,000,000 19.92% --�--- -• -- � --�-� �
$6,��0,��� _Z,64% 20.15%
$5,000,000 1 g•29% �
$4,000,000 -.46% �
$3,000,000 � �
� $2,000,000 ' ,
� �
, $1,000,000
$0 — --- --- — , -- ---� 1
, 2006 2005 2004 2003 2002 � �
I
_ �
(1)Net Tax Increment Agency does not include Debt Service payments. �
Sources: City of Palm Desert,Tax Increment Calculations Worksheets �
-168- �
H�stor�ca� �ax .���.�........ ....---------.,
Redevelopment Prciject Area lt3
Last Ten Fiscal Years
FY 2006 2005 20U4 2003 2002
Sec;uretUUnsecured $ 2.858,918 $ 2,137,750 S 2,(�30,874 $ 1,359,556 $ I,''(?4,Q09
Supplemental-PY 0
Supplemental-CY 607,706 261,674 150,716 79,744 130,497
SBE(Utility) 3,147 763 I.001 731 723
TotalGrosslncrement 3,469,772 1,400,187 2,I92,59t 1,440,031 t,335,219
Low•iMocf Housing Set Aside (688,513) (474,397) (432,653) (283,930) (263,165)
Tax)ncretpent Less LowlMod 2,781,259 1,925,790 1,759,938 1,156,101 1,072,064
Total Pass-Throughs (1,750.650) (1,197,599) (899,766) (448,489) (183,986)
� SB 2557 ChaTges (27,207) (28,204) (29,324) (20,379) (19,405)
� Net i'ax Increment AYency� S 1,003,402 S 699,987 S 830,848 S 687,233 S 868,673
�
, E'Y 2001 2000 1999 1998 1997
Secured/Llnsecured S 1.028,201 S 854,991 S 677,494 S 610,197 S 520,342
, Supplemental-PY 1,764 37,064 6,959 31,702
� Suppfemer�tal-CY 41,444 14,199 0 0
' SB�(Utility) 742 908 538 553 12 I
' Tota1 Gross Increment 1,076.387 871,862 715,096 617,709 552,166
' Low/Mod Housing Set Aside (21 1,984) (171,507) (143,019) (123,542) (I 10,433)
' Tsx tncrement Less I.ow/Mod 864,403 700,355 572,077 494,i67 441,732
, 7ota1 Pass-Throughs (548,t92) (519,921) (660,t39) (642.855) (77,212)
, SS 2557 Cherges (16,469) (14,327) (12,I61) {7,329) (10,789)
NetTax IncrementA�enc}�(1) S 299,742 S 166,107 S (100,243) S (156,O17) S 353,731
, - -- - -
, i Percentage represents change from prior year._
$1,200,000 ---� '
. I 43.35%
$1,000,000
. 20.4% 189.81% '
�
� $800.000 -15.75% -20.89% �
�
� $60Q,000 ,
� ; $4(?0,000 ,
r � �
� $2��.�0�
� � $0 - - -�---- --�
� 2006 2005 2004 2003 2002 ,
� -- - - -
� (I)Negative Tax lncrement for FY 1997/98 and FY I 998/99 due to Regional Access Project pass through,prior year tax
increment used to cover deficit.
Sources:City of Palm Desert,Tax lncrement Calculations Worksheets
-169-
�
�
City of Palm Desert �
Historical Tax Increment Summary �
Redevelopment Project Area t#4
Last Ten Fiscal Years �
�
FY 2006 2005 2004 2003 2UO2 �
Secured/Uncecure� $ IQ,483,484 S 9,017,457 $ 8,044,541 S 7,275.223 S 6,205,401 �
Supplementai-PY p
Suppiemen[ai-Cl�' 2,197,486 . 694,864 318,307 41 1,994 854,021 �
SBE(Utility) 15,009 2,036 3.641 1,952 1,930 �
TotaiCrossfncrement 12,695,978 9,714,357 8,366,489 7,689,169 7,061,353 �
Low/Mod Housing Set Aside (2,5I9,237 (I,919,081 (I,650,18I (I,516,029 (1,392,274 �
Tax Increment Le�s LoH•/Mod 10,176,742 7,795,276 6,716,308 6,173,140 5,669,078 �
Total Pass-Throughs (6,178,536 (5,145,220 (3,569,212 (3,863,556 (3,747,180 �
SB 255'7 Charges (99,794 (I I 8,954 (I I 5,583 (I09,024 (99,981) �
t�fetTax(ncrement A�enc�• S 3,298,411 S 2,531,102 S 3,031,513 S 2,200,560 S 1,821,917 �
�
FY 2001 2000 l994 1998 1997
Securecl/Unsecared S 4,612,165 S 3,293,418 S 1,981,390 S 1,421,671 5 I,IO2,951
Supplemental-PY 0 449,268 455,457 80,639 49,662
Supplemental-CY 829,389 578,l94 0 0 p
SBE(Utility) t,979 2,117 1,044 1,073 0
Total Gross lncrement 5,443,533 4,322,997 2,437,892 1,509,383 1,152,613
LowfMod Housing Set Aside (1,073,936 (853,567 (487,578 (301,877 (230,523
Tax Increment L.ess Low/Mod 4,369,597 3.469,430 1,950,314 1,207,506 922,090
Total Pass-Throughs (3,640,563 (2,856,325 (1,312,022 (811,613 (619,829
SB 2557 Charges (73,853 (SS,164 (35,617 (20,230 (21,723
Net Tax Increment Agency S 655,182 S 557,941 S 602,675 S 375,663 S 280,538
Percentage represents change from prior year.
' $3,500,000 -3032% ^ -- �------;
37.76% i
� $3.000,000 -16.5�°�a , �
$2,500,000 20.7g% �
� $2,000,000 178.08°io i �
I
$1,500,000 �
�
$1,000,000 �
$500,000 f
I
$0 ---- -- --,.-- -----
, 2006 2005 2004 2003 2002
Source: Palm Desert Redevelopment Agency,Tax lncrement Calculations R County of Riverside
-��a
City of Palm Desert
Historical Net Assessed Taxable Values
Rcdevelopment Project Area# I -Original
Last Ten Fiscal Years
S 209,051,600 S 193,066,855 S 180,57I,588 $ 175,028,644 3 171,440,095
515,092,610 468,555,559 430,563,506 403,984,613 389,7I6,686
7,420,696 4,909,559 2,970,008 3,290,180 3,824,393
0 0 0 0 2,536
(610,338) (730,777) (100) 0 0
(70.000) (70,000) (77,000) (75,600) (70,000)
0 0 0 0 0
730,884,568 665,731,196 614,028,002 582,227,837 564,913,710
396 156,701 174,128 201,461 229,626
48,736,306 51,l33,704 52,581,364 48,9l6,729 52,533,594
47,480,402 51,093,465 54,158,601 46,472,846 44,33I,I25
i 0 0 0 0 I,592,700
(32,573) (39,043) (57,842) (57,121) (58,570)
I
96,184,531 102,344,827 ]06,856,251 95,533,915 98,628,475
�
S 827,069,099 S 768,076,023 S 720,884,253 S 677,761,752 S 663,542,185
�
�
�
' S 167,254,618 S 157,749,660 S 158,233,158 S 152,360,397 a 162,089,396
381,168,647 342,048,525 335,487,546 331,532,883 310,347,856
, 4,621,105 3,958,876 4,284,834 3,805,452 3,563,426
, 61,938 24,969 55,034 7,011 22,855
0 0 0 0 0
' (49,000) (56,000) (35,OOd) (28,000) (28,000)
' 0 0 Q 0 0
553,057,308 503,726,030 498,025,577 487,677,743 475,995,133
/
1 19I,925 211,902 225,314 50,747 47,559
' 47,281,799 44,481,749 43,198,389 37,357,588 37,898,4i3
44,847,382 33,234,094 33,519,839 35,834,338 31,172,730
, 2,089,768 735,012 748,851 766,233 585,341
' (61,394) (38,283) (69,264) (58,072) (50,241)
94,349,480 78,624,524 77,623,129 73,950,834 69,653,802
,
, S 647,406,'788 S 582,350,554 S 575,648,706 S 561,628,577 S 545,648,935
, (1)Secured valuesinclude State assessed data.
,
,
, Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&Counry of Riverside
.
.
.
.
�
. -171-
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area# 1 - Original
2006 versus 2005
$ 209,051,600 $ 193,066,855 83%
$ 515,092,610 $ 468,555,559 9.9%
$ 7,420,696 $ 4,909,559 51.1%
$ 0 $ 0 0.0%
$ (610,338) $ (730,777) -16.5%
$ (70,000) $ (70,000) 0.0%
$ 730,884,568 $ 665,731,196 9.8%
$ 396 $ 156,701 -99.7%
$ 48,736,306 $ 51,133,704 -4.7%
$ 47,480,402 $ 51,093,465 -7.1%
$ 0 $ 0 0.0%
$ (32,573) $ (39,043) -16.6%
$ 96,184,531 $ 102�344,827 -6.0%
$ 827,069,099 $ 768,076,023 7.7%
(1)Secured valuesinclude State assessed data.
Source: Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside
-172-
i
1
� City of Palm Desert
Historical Net Assessed Taxable Values
� Redevelopment Project Area# I -Amended
' Last Ten Fiscal Years
�
�
;
' S 1,221,8t7,819 E 1,099,974,404 S 1,037,831,772 S 964,043,115 f 887,797,124
' 2,548,978.946 2,322,285,503 2,109.457,532 1,966,604,300 1,742,745,364
5,081,062 4,080,748 3,722,255 4,822,804 4,009,942
` 0 0 0 0 31,999
(75,212,626) (72,356,678) (50,011,055) (50,251,474) (55,711,920)
' (30,902,546) (31,114,156) (30,819,292) (28,898,212) (28,025,997)
, 0 0 0 0 0
3,669,762,655 3,322,869,821 3,070,181,212 2,856,320,533 2,550,816,512
/
, 0 1,449 9,58I 135,778 143,855
33,710,842 33,165,394 32,087,933 29,960,052 26,976,720
1 51,779,049 53,234,502 56,477,588 46,150,607 42,134,507
0 0 0 0 494,612
, (6,306,859) (6,430,836) (8,791,155) (8,632,424) (9,613,037)
, 79,183,032 79,970,509 79,783,917 67,614,013 60,IJ6,657
, S J,748,945,687 S ]�02,840�30 S 3,149,965,159 S 2,923,934,516 S 2,610,983,169
,
, S 746,195,135 S 631,896,282 S 607,328,618 S 598,056,040 f 593,084,678
, 1,493,036,846 1,292,074,218 1,230,571,559 1,194,367,177 1,169,643,780
3,266,563 1,984,406 1,632,328 1,581,739 I,533,I SS
, 159,145 37,7i7 54,377 26,687 41,966
(47,407,077) (46,013,692) (44,781,911) (43.778,024) (43,171.518)
, (27,838.129) (27,464.787) (28,135,860) (28.427,000) (28.142,400)
0 0 0 0 0
. 2,167,412,483 1,852,511,111 1,766,669,1 l l 1,721,826,619 1,692,989,691
, 52,422 46,463 169,654 778,001 608,936
, 27,217,1 S 1 20,563,813 15,262,873 14,561,036 14,135,932
40,144,238 29,967,514 26,532,412 23,804,436 20,336,143
� 673,565 181,234 592,583 419,541 49,945
. (10,316,419) (6,335,363) (1,377,I78) (5,328,832) (3,957,847)
57,770,987 14�23,681 11,180,341 31,234,182 31,173,I11
� S 2,225,183,470 S 1,8%,937,E25 S 1,807,819,453 S 1,756,060,80! S 1,724,162,802
�
� (I)Secured values include State assessed data.
�
�
�
.
• Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside
�
�
.
�
�
�
. -173-
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area# 1 - Amended
2006 versus 2005
. _
$ 1,221,817,819 $ 1,099,974,404 11.1%
$ 2,548,978,946 $ 2,322,285,503 9.8%
$ 5,081,062 $ 4,080,748 24.5%
$ 0 $ 0 0.0%
$ (75,212,626) $ (72,356,678) 3.9%
$ (30,902,546) $ (31,114,156) -0.7%
S 3,669,762,655 $ 3,322,869,821 10.4%
$ 0 $ 1,449 0.0%
$ 33,710,842 $ 33,165,394 1.6%
$ 51,779,049 $ 53,234,502 -2.7%
$ 0 $ 0 0.0%
$ (6,306,859) $ (6,430,836) -1.9%
$ 79,183,032 S 79,970,509 -1.0%
$ 3,748,945,687 $ 3,402,840�330 10.2%
(1)Secured values include State assessed data.
Source: Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside
-174-
`
` City of Palm Desert
Historical Net Assessed Taxable Values
� Redevelopment Project Area fi7 2
' Last Ten Fiscal Years
�
� i„��:='.< y
' E 414,088,670 S 377,500,739 S 338,504,943 S 298,852,366 S 268,700,076
t 1,043,768,419 964,730,831 915,3t3,076 830,436,695 675,455,198
6,930,907 8,309,969 �,136,535 7,534,988 6,840,530
' 0 0 0 0 0
(3.292,024) (3.133.35� (2,979.i9� (2,823.135) (2.767,7811
' (3,752.000) (3,689,000) (3.316,600) (2,853,200) (2.639,000)
0 0 0 0 0
� 1,457,713,972 1,343,719,182 1,254,6S8,3S7 1,131,152,714 945,589,023
/
' 0 0 0 0 0
4,187,472 3,853,947 4,482,615 2,799,545 2,910,472
� 12,129,647 13,891,103 I1,486,746 7,626,600 8,438,055
0 0 0 0 1I5,676
' 16,317,319 17,74S,OS2 1S,%9�61 l0,426,145 11,464,203
' S 1,474,061,291 S 1,361,464,234 S 1,270,627,718 S 1,141,578,854 S 957,053,226
/
/
' f 254,353,602 S 241,562,963 f 221,877.005 S 210,387,922 f 191,557,269
' 615,75I,576 557,262,592 502,284,327 A69,021,627 433,210,966
6,545,424 10,603,177 6,563,588 7,699,828 4,367,066
' 0 75,371 0 0
(i,zi3,siz) �i,�a9,�i9) (t.i6s.or� �i,zas,i�a� (i,z�z.�zi�
' (2,623.600) (2.522,800) (2,403.800) (2,219.00Oj (2,023.000)
' 0 0 0 0 0
872,813,l90 805,716,213 727,228,414 683,645,203 6J1,889,580
,
' 0 0 0 0 0
2,417,234 1,877,417 1,860,565 2,049,025 1,890,431
, 5,921,587 3,984,295 4,363,617 4,126,229 4,132,977
46,458 77,730 57,857 34,546 14,500
, 8,385,279 5,939�42 6,282,039 6,209,800 5,037,908
� S 881,198,769 S at1,635,635 S 733,510,453 S 689,835,003 S 637,927,488
'
t (1)Secured valuesinclude State assessed data.
�
/
/
' Source:Palm Desen Redevelopmcnt Agency,Tax lncrcment Calculations&County of Riverside
/
/
/
1
/
1
1
�
-175-
�
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area#2
2006 versus 2005
$ 414,088,670 $ 377,500,739 9.7%
$ 1,043,768,419 S 964,730,831 8.2%
$ 6,930,907 S 8,309,969 -16.6%
$ 0 S 0 0.0%
$ (3,292,024) $ (3,133,357) 5.1%
S (3,752,000) $ (3,689,000) 1.7%
S 0 S 0 0.0%
1,457,743,972 1,343,719,182 8.5%
$ 0 $ 0 0.0%
S 4,I 87,472 $ 3,853,947 8.7%
$ 12,129,847 S 13,891,105 -12.7%
S 0 $ 0 0.0%
16�317,319 17,745,052 -8.0%
S 1,474,061,291 S 1,361,464,234 8.3%
(1)Secured values include State assessed data.
Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside
-176-
I
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area ts 3
Last Ten Fiscal Years
w��•;.;
�r�:::�7
S 103,496,559 S 91,523.675 S 83,600,129 S 76,423,641 S 70.984,182
298,197,384 243,I39,587 221,590,995 176.923,362 167,824,429
3,890.56U 3.I52.374 1,581.880 1,224,360 1,221,819
0 0 0 0 25S
(20,251,190) (19,430,222) (3,149,36i) (2.977,801) (2,868,530)
(2,046,80U) (1.974,000) (1,912,400) (1.750.00�) (1,687,000)
383,286,513 316,411,414 301,711,240 249,843,562 235,475,135
370 2,138 2,138 2,213 29,325
12,424,085 9,635,015 13,243.I12 8,281,641 11,021,570
38,091,911 35,730,772 37,209,995 26,061,080 21,453.363
0 0 0 0 904,695
434,582) (455,101) (470,220) (459,656) (646,953)
50,081,784 44,912,824 49,987,025 33,885,278 32,762,000
S 433,368.297 S 361,324,238 S 351,698,265 S 283,728,840 S 268,237,155
S 67,042,691 S 62,879,457 S 62,465,266 S 62,899,697 S 59,741,591
149,512,375 142,889,361 143,323,SS4 I43,172,549 138,853,030
l,139,556 4,247,032 4,474,I27 3,388,041 3,899,940
40,255 0 2,295 2,295 1,036
{2,651,t90) 2,429,452) 19,068,851) (I8,623,087) (16,995,333)
(1,762,600) (1,789.200) (1.807,400 (1,743.000) (1.531,600)
213,921,087 205,797,198 189,389,291 189,096,495 183,968,664
29,992 31,781 29,656 29,703 30,941
11,069,151 8.832.767 8,843,353 5,998,073 4,335,089
24,808,b91 18,345,262 18,062,689 13,493,827 II,759,146
1,176,179 625,647 711,922 SS4,243 186.362
(424,328) (399,507) (341,825) (372,40D) (254,318)
36,659,685 27,435,950 27,305,795 19,703,446 I6,057,220
S 250,580,772 S 233,233,148 S 216,695,086 S 208,799,941 S 200,625,SSA
(1)Saured valuesinclude State assessed data.
Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Rivenidc
-177-
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area#3
2006 versus 2005
$ 103,496,559 $ 91,523,675 13.1%
$ 298,197,384 $ 243,139,587 22.6%
$ 3,890,560 $ 3,(52,374 23.4%
$ 0 $ 0 0.0%
S (20,251,190) $ (19,430,222) 4.2%
S (2,046,800) $ (1,974,000) 3.7%
383,186,513 316,411,414 21.1%
S 370 a 2,138 -82.7%
S 12,424,085 $ 9,635,015 28.9%
S 38,091,911 E 35,730,772 6.6%
S 0 $ 0 0.0%
$ (434,582) � (455,101) -4.5%
50,081,784 44,912,824 11.5%
S 433,368,297 S 361,324,238 19.9%
(1)Secured values include State assessed data.
Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside
-178-
Ciry of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area t�4
Last Ten Fiscal Years
_ ;.
S 480,264,736 S 423,136913 S 387,894,896 S 363,532,124 S 336,601,532
I,I45,343,698 l,060,291,261 1,000,472,990 943,610,707 861,691,896
1,037,306 1,039,548 903,523 1,176,104 1,269,934
0 0 0 0 91,675
(2,988,924) (2,213,136) (2,236,588) (2,003,855) (1,924,�80)
(15.874.600) (16.083,200) (16.032,800) (I5.162.000) (14.604,800)
0 0 0
1,607,782,216 1.166,171�86 1,371,002.021 1,291,t S I.ORO I,187.I25,057
0 0 0 0 0
1,606,970 2,043.627 1,172.618 1,610,760 1,878,576
10,276,814 4,639,732 3,418,910 6,790,656 8,053,034
0 0 0 0 70,495
1I,883,784 6,683,359 1,611,528 8,401,�16 l0,002,105
S 1,6I9,666,000 S 1.,72,851,715 S 1,375,613,549 f 1,299,552,1% S 1,193,127,562
f 295,636,937 f 266,431,690 S 241,556,658 S 239,474,265 S 230,406,034
742,772,488 639,902,284 543,450,593 487,)17,734 464,373,174
1,085,189 1.130,254 J,312,159 1,030,391 1,304,271
32,666 52,911 52,911 158,6B2
(1,240,153) (1,125,349) (943,874) (1,106,989) (1,049,518)
(14,263.200) (13,610.800) (13.367,200) (12.854,800) (12,691,000)
0 0 0 0 0
1,02{,023,9Z7 892,72D,079 77+.p39,2�7 713.913,512 682,SOI.W3
0 0 0 a1,582 41,582
2,018,343 1,874,I35 624,979 923,449 738,984
8,071,994 8,292,670 1,673,026 2,152,303 1,510,108
31.283 28,376 28,741 73.710 4,000
10,121,620 10,193.18� 2J26,716 3,191,044 2,294,671
f 1,034,1{5,517 S 9D2,923,260 S 776,385,993 S 717,104,556 S 681,7%,3t7
(1)Securod values include State assessed data•
Source:Pelm Desert Redevelopment Agency,Tax Incrcment Calculetions&Counry of Riverside
-t79-
`
1
City of Palm Desert ,
Change in Taxable Values ,
Redevelopment Project Area#4
• 2006 versus 2005 `
�
�
�
� 480,264,736 S 423,136,913 13.5% �
S 1,145,343,698 S 1,060,291,261 8.0% ,
S 1,037,306 S 1,039,548 -0.2%
S 0 S 0 0.0% �
S (2,988,924) 5 (2,213,136) 35.1% �
S (15,874,600) S (16,083,200) -13% �
S 0 S 0 0.0%
1,607,782,216 1,466,171,386 9.7•/. �
�
S 0 S 0 0.0% �
S 1,606,970 S 2,043,627 -21.4% .
S 10,276,814 S 4,639,732 121.5%
S 0 S 0 0.0% .
11,883,784 6,683,359 77.8°/. �
S 1,619,666,000 S 1,472,854,745 10.0% �
�
(1)Secured values include State assessed data. �
�
�
�
Source: Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside
-180-