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HomeMy WebLinkAboutAudited Financial Rprts - CC - FY Ended 06/30/08 , _ � 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, 2008 DATE: FEBRUARY 12, 2009 CONTENTS: 1. CITY OF PALM DESERT AUDITED FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2008 2. AUDITOR'S LETTER TO CITY COUNCIL 3. REPORT ON INTERNAL CONTROLS AND COMPLIANCE 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, 2008. Back_qround: Diehl, Evans & Associates, LLP, performed and completed the annual independent audit for the fiscal year ending June 30, 2008, for the City of Palm Desert in November 2008, 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, 2008, and the results of its operations and the cash flows of its proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. In conducting their audit, the auditors test the City's internal controls. Attached is the Report on Internal Controls over Financial Reporting and on compliance and other matters based on an audit of Financial Statements performed in accordance with Government Auditing Standards. The CAFR will be submitted for the Certificate ofAchievement forExcellence 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 G:\Finance\Niamh Ortega\Staff ReportsWudit Staff Reports 2008\audit report CAFR 2008.docx Staff Report Receive and file CAFR for Fiscal Year ended June 30, 2008 February 12, 2009 Page 2 of 2 current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, as it has for the past eleven years. The Audit, Investment and Finance Committee received the audited financial statements at their January 27, 2009 meeting, and it was recommended that the statements for the fiscal year ended June 30, 2008 be received and filed by the City Council. In prior years this report would have come to the Council for review in January following review by the Audit, Investment and Finance Committee. However, due to the timing of the Council meeting, the January meeting of the Audit, Investment and Finance Committee took place after the last Council meeting in January. Staff requests that the Council receive and file the City of Palm Desert's audited financial reports for the fiscal year ending June 30, 2008. Subm� d by: � Paul S. Gibson, Director of Finance/City Treasurer Approved: �� � CtTYCOUNCILACTi ON Jo hlmuth, City Mana er APPROVFn nT;r�rtr[� RECFtvrn_�F re c��s .�.�;�� PSG:JLE:nmo MF,F.TING UATE � - I�- � AYES: � S �, NOES: ABSF,NT: AI3STAIN: � VF,RIFIF,D I3Y: Original on File with City Clerk's O!'fice G:\Finance\Niamh Ortega\Staff ReportsWudit Staff Reports 2008\audit report CAFR 2008.docx �� � ��x56 �� ,�Y �����4' 4P 4 i �.. �� �d�����'' /(., � r,'ild• %�:, 5•• �"", ♦ '«. � COMPREHENSNE ANNUAL FINANCIAL REPORT ofthe CITY OF PALM DESERT,CALIFORNIA For the Fiscal Year Ended JUNE 30, 2008 Prepared by the Finance Department City Treasurer/Director of Finance Paul S.Gibson Assistant Finance Director Jose Luis Espinoza,CPA Finance Staff (in alphabetical order by positions and names) Accounting Technician II Deputy City Treasurer Information Systems James Bounds Thomas Jeffrey Technician Accounting Technician II Director of Information Ray Santos Haracio Celaya Systems Management Analyst Accounting Technician II Doug Van Gelder Jenny Barnes Sharon Christiansen G.I.S.Coordinator Of�'ice Assistant Accounting Technician II Robert Riches Vedrana Spasojevic Diana Leal G.I.S.Technician Of�'ice Assistant I Accounting Technician II John Urkov Cherie Thompson Barbara Wright Information Systems Senior Financial Analyst Administrative Secretary Analyst Anthony Hernandez Niamh Ortega Clay von Helf Sr.Of�ice Assistant Business License Technician Information Systems Claudia Jaime Rob Bishop Technician Troy Kulas CITY OF PALM DESERT TABLE OF CONTENTS JUNE 30,2008 Page Number INTRODUCTORY SECTION Table of Contents i Letter of Transmittal vii GFOA Certificate of Achievement for Excellence in Financial Reporting xii List of Principal Officials xiii Organization Chart xiv FINANCIAL SECTION AUDITORS' REPORT Independent Auditors' Report 1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Exhibit A - Statement of Net Assets 15 Exhibit B - Statement of Activities 16 Exhibit C - Balance Sheet- Governmental Funds 20 Exhibit D - Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 23 Exhibit E - Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 24 Exhibit F - Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26 Exhibit G - Statement of Net Assets - Proprietary Funds 27 Exhibit H - Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 28 i CITY OF PALM DESERT TABLE OF CONTENTS (CONTINUED) JUNE 30,2008 Page Number BASIC FINANCIAL STATEMENTS (CONTINUED): Exhibit I - Statement of Cash Flows - Proprietary Funds 29 Exhibit J - Statement of Fiduciary Assets and Liabilities—Agency Funds 31 Notes to Basic Financial Statements 33 REQUIRED SUPPLEMENTARY INFORMATION Schedule 1 - Budgetary Comparison Schedule - General Fund 107 Schedule 2 - Budgetary Comparison Schedule - Prop A Fire Tax Special Revenue Fund 108 SUPPLEMENTARY SCHEDULES General Fund: 111 Schedule 3 - Budgetary Comparison Schedule by Department- General Fund 112 Other Governmental Funds- Combining Statements: 117 Schedule 4 - Combining Balance Sheet- Other Governmental Funds 118 Schedule 5 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Governmental Funds 119 Other Governmental Funds - Other Special Revenue: 121 Schedule 6 - Combining Balance Sheet- Other Special Revenue Funds 124 Schedule 7 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Special Revenue Funds 128 Schedule 8 - Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Special Revenue Funds: A. Traffic Safety 132 B. Gas Tax 133 C. Housing Mitigation Fees 134 D. Community Development Block Grant 135 E. El Paseo Assessment District 136 F. City-Wide Business License 137 G. Landscape and Lighting Districts No. 1-17 138 ii CITY OF PALM DESERT TABLE OF CONTENTS (CONTINUED) JUNE 30,2008 Page Number SUPPLEMENTARY SCHEDULES (CONTINUED) Other Governmental Funds - Other Debt Service: 139 Schedule 9 - Combining Balance Sheet- Other Debt Service Fund 140 Schedule 10 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Debt Service Fund 141 Other Governmental Funds - Other Capital Projects: 143 Schedule 11 - Combining Balance Sheet- Other Capital Projects Funds 144 Schedule 12 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Capital Projects Funds 148 Agencv Funds: 153 Schedule 13 - Combining Statement of Assets and Liabilities -All Agency Funds 154 Schedule 14 - Combining Statement of Changes in Assets and Liabilities - All Agency Funds 155 STATISTICAL SECTION Description of Statistical Section 157 Financial Trends Net Assets by Component 158 Changes in Net Assets 159 Fund Balances of Governmental Funds 161 Changes in Fund Balances of Governmental Funds 162 Graphs - Changes in Fund Balances of Governmental Funds 163 Supplemental Historical General Fund Revenues 164 Supplemental Graph-Historical General Fund Revenues 165 Supplemental Historical General Fund Expenditures 166 Supplemental Graph- Historical General Fund Expenditures 167 Supplemental Historical General Revenue and Expenditures Per Capita 169 iii CITY OF PALM DESERT TABLE OF CONTENTS (CONTINUED) JUNE 30,2008 Page Number STATISTICAL SECTION (CONTINUED) Revenue Capacitv Assessed Value and Estimated Actual Value of Taxable Property 170 Historical Net Assessed Taxable Values Citywide and Graph-Assessed Valuation Growth 171 Supplemental FY 2008 and 2007 Breakdown of Basic 1% Property Tax Rate Not in Redevelopment Project Area 172 Property Tax Rates Direct and Overlapping Property Tax Rates 173 Principal Property Taxpayers 174 Property Tax Levies and Collections 175 Supplemental Top 25 Sales Tax Generators and Graph - Historical Sales Tax Trends 176 Supplemental Taxable Sales by Category 177 Supplemental Principal Sales Tax Remitters 178 Debt Capacitv Ratios of Outstanding Debt by Type 179 Ratios of General Bonded Debt Outstanding 180 Supplemental Special Assessment Information 181 Direct and Overlapping Government Activities Debt 182 Legal Debt Margin Information 183 Pledged-Revenue Coverage 184 Demo raphic and Economic Information Demographic and Economic Statistics 185 Principal Employers 186 Supplemental Miscellaneous Statistics 187 Operatin� Information Full-time Equivalent City Government Employee's by Function/Program 188 Operating Indicators by Function/Program 189 Capital Asset Statistics by Function/Program 190 iv CITY OF PALM DESERT TABLE OF CONTENTS (CONTINUED) JUNE 30,2008 Page Number SUPPLEMENTAL REDEVELOPMENT AGENCY STATISTICAL SECTION Redevelopment Agency Project Area Map 193 FY 2008 Top Twenty Property Taxpayers: Project Area No. 1 and 1982 Annex 194 Project Area No. 2 195 Project Area No. 3 196 Project Area No. 4 197 Project Area Statistics 198 Tax Allocation Bond Issue Information 199 FY 2007/2008 Breakdown of Basic 1%Property Tax Levy Rates 200 Historical Tax Increment Summary: Redevelopment Project Area No. 1 - Original 201 Redevelopment Project Area No. 1 - Amended 202 Redevelopment Project Area No. 2 203 Redevelopment Project Area No. 3 204 Redevelopment Project Area No. 4 205 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 1 - Original 206 Change in Taxable Values: Redevelopment Project Area No. 1 - Original 207 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 1 - Amended 208 Change in Taxable Values: Redevelopment Project Area No. 1 - Amended 209 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 2 210 Change in Taxable Values: Redevelopment Project Area No. 2 211 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 3 212 Change in Taxable Values: Redevelopment Project Area No. 3 213 Historical Net Assessed Taxable Values: Redevelopment Project Area No. 4 214 Change in Taxable Values: Redevelopment Project Area No. 4 215 v THIS PAGE INTENTIONALLY LEFT BLANK vi 8 ` .+� Y, � . ..... .. . . . � �i ,.. �.. � . ��,—�,� F�z��Xl�,�rr��L��uvE • i"iil2.l�1JB5�RT3�.,.IlF..11''�?ttN[}!t},22�30_��i!V r �. � ' 'C�L.t'�6p ;�1�i—Ofili , ,'� � F:�X:�6� 3��-4��4 � infc�gslm�des�tt.drg � I�fi�vember 17,24t18 . �ati��s�f the�ity�f P�Im D�� Hc�nc�rable I��yt�r�nd�+iembers c��"the�x€y��un��l '�"he Cc�rn�srel��tive A�nuu�1 �°inar►�ial Rep�rt ���R� v�'the +�ity af P�n Desert for the �is��l year er,t�etl Jw�e 3+�, �0�8, is sulxrnitt�ci �ex�with. `Thi� repc�rt +,�as �t�� b�' the City"s �"a�ance I)�aar�m+ent. �Ianageme�zt �sur�e� f�al� r��p��sibility far c�e cc�rnpl��ess and r�lia�ility �f the ir��'ormatic�n c�n�ned in this reg�rrt, upvn a� cQmpre�h�i�e �ra�m,ework of i�tern�l cc��trr}I t1�t it has establishes� ��r t�is purp�o�.B��ause the cc�st�fintern�l contral�h�ul+�nc������d an�i�ip�te+�benetits, th� obj�ctive is �t� p�ravid� �asa�n�bl�, r�t#'►�r t�n �st�lut�, �ssurance th�t th�finaa�ial �ta.t�ments ar� f�'ee+��"�.y m�t�ri�znissta#ement�. It is the pvlic�r c�f t�te �it�r �f F�tn I?�:�rt t�r �►�ve � ��1 �.udit p�rfc�rm�d by an indep�ndent �ertifi+ed pu�alic a��untant. Thh� ir�±dep�ndenk a�u�iit c�f khe �icy�s �►�a�ci�l �tat�anents fc�r �iscat �eax �n�i�d June �t�, �t��, w� ��tdu�te+� by ���1 �v�:ns �c �c�mp�n�} LLY � �ppointed by th� �C��.y �c�u��il. The auc3it�r's u�nqu�Ii�ted �"`cl�an'�) opin��n or� t�ie b��i� f�n�r�+�i�l st�tem�nts is includ� in �he Fin�n�ia! ��t�a�n af fhis c�pc�rt. A.s p�t t o# the +�ity's aru�u�il audit �rtg��ment, the au�ii�rs t�vi�e�v�d th� ��ty's intem�l r�antrol s�tur�,�s�r+ell ��az�:�lian���t:l����ic�hle l�ws a:nnd regulatic�ns. 'T"he r�sult�af the Cit�'s ��nual au;dit fc�r fis�l ye�`�ne� Jta�te �t�, ��8, �l!POYI� B14 Al'�4a'��1C�S Cl�tll$'�'7� �€31��5 iII�(}IIl'�f"Ck.1dJl't v�rich th�in�er�l c�n�c�1 struct�u�c�r�ign:i�ic�nt violatic�ns c���plic�le l�r�r�a�ac�re�ul�:�ic+ns. A� rec��i�nts of f+�d�, �tate �nd cc�unty financial r�s�wrc�s, tf�+e �ity c�f F�,1rxa ��rt is r�uir�d t+v �under�c�an�n�l �ingl� auc�ii. �e� �gp�ic�ble, infvrm�tion relate�d to this singl��uditF inclucling the sck��d�l�c��expenditures+��f�d�ra1 awar�,findin�s�nd recc�a��unner���ti�n��d a�ditc��'s rep�rts an the int�r�l +�t�tr+�l strru�ture and c�rnpli�nce r�vi�h agplic.ak�l� laws �tnd regul�tit�at� �re includ�cl in � separaltely is����l r��. F�r �he �isc�� ���x' end�d ,ltu�� ��, �i��, th� �i�_� a� nc�t requind t4 have a sir��l�at�dit p�rf`orm�i. M�na�me��'s dis+�u�i�n ar�� anaiy�i� �h�:Dl�tr�� imrxt�di�tely follow�th�indeg�nd�t�,t audit�ar's r�art �n�pr��d�� a narr�ti°�� i�►�rc��d�ti��r�v�i�v�, �d z�r;�ly�is of the�� tinauyei�l st�tements, �riD&A cc�rnpl�rnen#s this Iett�ar�f�stnittal�:nd sh�auld be tead i�t�onjt�t��tit�n cvith i�. vii ��«��, Citizens of the Ciry of Palm Desert, Honorable Mayor and Members of the City Council November 17, 2008 CAFR Structure The format and content of this report 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 Government Finance Officers Association of the United States and Canada. Financial Section, presents the City's independent auditor's report on the Basic Financial Statements, the Management's Discussion and Analysis (MD&A), the Basic Financial Statements, the notes to the financial statements, the Required Supplementary Information (RSI), and the non-major supplementary schedules. Statistical Section, provides the reader with additional historical financial data and other information concerning the City. PROFILE OF THE CITY OF PALM DESERT Located in Riverside County in the geographical center of the Coachella Valley's Palm Springs Desert Resorts area, Palm Desert was incorporated on November 26, 1973, as a General Law City. Fourteen years later on November 4, 1997, voters overwhelmingly approved Measure LL adopting a city charter. Under the provisions of the charter, the City of Palm Desert has full authority over its own municipal affairs including bidding and contracting procedures, regulation of parks, libraries, and other facilities, certain fees, imposition of taxes, municipal zoning, salaries of officials and employees, municipal utilities, and municipal election procedures. 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 four years, elected in November of even-numbered years. Each November, the City Council selects the Mayor from among its 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: viii Citizens of the Ciry of Palm Desert, Honorable Mayor an Members of the City Council November 17, 2008 Municipal Services Public Enterprise Services Public improvements, infrastructure and maintenance Golf Course Public art and community promotion Office Complex Planning,zoning, building and engineering Internal Service Housing and community development Code enforcement and inspections Blended & Discrete Component Economic development and business support Units Legislative, city clerk,visitor center,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 are available and that requests are properly authorized prior to being released to vendors. The adopted budget for fiscal year 2007-2008 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. LOCAL ECONOMY The City comprises an area of approximately 26 square miles and, as of January 1, 2008, has a population of 50,907, according to data provided by the California Department of Finance. In addition to permanent residents, approximately 15,000 seasonal residents make Palm Desert their home for three to six months each year. 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. Tourism and sales tax are the City's main revenue sources. ix Citizens of the City of Palm Desert, Honorable Mayor an Members of the City Council November 17, 2008 A balanced community where economic, environmental, social, and cultural development flourishes, Palm Desert is a much sought-after destination as a place to visit and reside. The first city in Riverside County to create a public art program, Palm Desert is home to numerous cultural attractions including: the McCallum Theatre for the Performing Arts, a 1,127-seat theater which hosts some of the biggest names and well-known productions in show business; The Living Desert wildlife and botanical park, a 1,200-acre facility containing a wide array of plants and animals from desert regions around the world; and Palm Desert Art in Public Places, a museum without walls, featuring more than 100 works of art on permanent display throughout the City. Palm Desert's active Chamber of Commerce has more than 1,500 members who work to promote, support, and enhance business prosperity, civic vitality, and the quality of life within their community. Noted for its extensive array of retail options, including the world famous upscale shopping destination of El Paseo, the City is home to a variety of malls and retail centers including Westfield Palm Desert, Desert Crossing, and The Gardens on El Paseo. The internationally acclaimed Desert Willow Golf Resort, one of the nation's premier municipal courses, boasts 36 holes of championship golf and stunning scenery in close proximity to first- class hotel accommodations and fine dining restaurants. In addition to being the home of the Coachella Valley's only community college, College of the Desert, Palm Desert is the location of two new recently opened campuses for California State University, San Bernardino and the University of California, Riverside. Both of these institutions of higher learning offer multiple options for degree programs and continuing education. A balanced foundation of tourism, culture, and education has strengthened the City's labor force making it as strong as the economy. The State of California Employment Development Department Labor Market Information Division reported that for the period ending June 30, 2008 the City of Palm Desert had an unemployment rate of 4.1%compared to Riverside County, which had a rate of 8.4%. LONG-TERM FINANCIAL PLANNING In June 2008, the City Council approved a total of $52.05 million in funding for various capital improvement projects for the fiscal year of 2008-2009. Projects include traffic signals, sidewalk repairs and implementation, street widening, construction of landscaping medians where none existed, improving drainage areas, and completion of the development called Entrada El Paseo. With all these projects slated for the coming fiscal year, it is evident that the City of Palm Desert is committed to promoting tourism, business, culture and education in an effort to maintain the high quality of life that the private and business community enjoys. X (.'itizens of'the (:rtv r�f�l'c�lm Ilesert; Ilonorahle Maynr an Mem�ie�r.s��f�tlie C_'i�y l'ottncil :'��i�verrth��r 1?, ?(108 C'crtificates of Awards for Outstanding Financial Kenartin� -Chc Cic�vernment Finance Oftice.rs Association «f the LTnited States and E.;an�tda (GF()A) awarded a C'���titieate of Achic;vement far Fxcellence in Financial Reporting tr� the City af Pa1m Desert fc�r its compreh�nsive annual financial report for the tiscal y�ar endec! June 30, 2()(}7. 'T'his was the elev��lth canseeutive year that the govc�rnment has achiev�d this prestigiaus aw�rci. In order tc� �e awardeci a C:'e.�rtiticate �f Achievement, the government liad to publish an easily readabie and efficiently arganized cc7m.prehen.sive annual ftn;�neial report that saiistied hoth �eneral accepted accounting principles and ap�alicat�le legal reyuiremei�ts. A CVertificate of Achievement is valid for a period of c�ne year c���ly. We believe fhat our ct�nent ccam��rehensive annual tinancial report continuc;� to me�;t the Certiticate c�f Aehicvement Program's rec�uireinents and we are submitting it te�the UFOA t��cieternainc its tligibility fUr anc�ther certi�icate. Acknowledgments "I�r��: �repar��tican af fhis report could nc�►t have be�n accc�t�iplished without th�; eFfici.ent and dedicated services c�f the entire statf of the imance de}�artment whose nan�c;s ��re listed individually in the title �a�;�. nue credit is given to the Mayar and the City Council Nlembers lc�r their interest anci support in }�Ianning anci conclucting the operations of our C'i.ty ii1 a responsible and pro�ressive manner. Il.ecc7�nitian is also �iven fio all employe�s of the City afi Palm Desert wl�o continue to serve c�ur cotnrnunity with commitnient a»d dedication throughout the year, and to fhe ci.tizens of I'al.m I)esert our�;reatest appreciation for your cc�ntinued support, input and�;ttidan4�; in helpin�us se�v� yc3u better, thus preservir��;our City's quality of life and re�utatic�n f��r innovation and leaelership� Res��:�ttully submitte�t, o�� . .. � �� ..�'(�. Carlc�s I.. (:>rtt;�� Paul S. faribsoi� C;ity :�tanag�f'� Di.rector c�f 1�ii�ane�lCity°Treasurer .TI.t::jle Yl. C�rti�cate of Achievement for E�.cellence in F�nancial Reporting Presented ta C1ty of Palm Desert �aliforn�a Por its Comprehensive Annnal Financial Report for the Fiscal Year Ended June 30, 2007 r'1 Certificate of Achievement for Excellence in Financial Reporting is presented by tbe Government Finance Of�icers Association of the CFnited States and Canada tn governmenf units and public emplayee retirement systerns whose comprehensive annual financia! repvrts(CAFRs)achieve the highest standards in go�°emment accouncing and financial reporting. ,�� �--•-�... �. ��."'�'� ��� =_ �:'�� �����„ � President ,;���.,�` � � ����� �Q�' Ex��uti��e Director xii CITY OF PALM DESERT List of Principal Officials as of June 30, 2008 City Council- Manager Form of Government CITY COUNCIL JEAN M. BENSON Mayor ROBERT A. SPIEGEL Mayor Pro-Tempore JIM FERGUSON CINDY FINERTY RICHARD S. KELLY Council Member Council Member Council Member CITY ADMINISTRATION CARLOS L. ORTEGA City Manager 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 Director of Finance/City Treasurer Paul S. Gibson REDEVELOPMENT AGENCY Executive Director CARLOS L. 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I I I I I � I ( I I I I w � � a � � � � `.d'm � �tl � 7tl � �- �c -� � �� � � � � $' � � � l0 � N tn G ' C m atf � � 52 �� �- � � �� � � '� v-4 ¢ - �g�, m as � `�, � � � � � m -� � � � � _ �.�. � � o � �-� � � � � �� y U � � � �� a' � E i'S g�. s � � �� � $ � � � � � '� UU $ � ..� U � .� -� t' � � � � � m f � ___� � a Z U � aC7U' a �" �p ¢ XV TffiS PAGE INTENTIONALLY LEFT BLANK xvi DIEHL, EVANS cS"� COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS 6t CONSULTANTS MICHAEL R.LUDIN,CPA CRAIG W.SPRAKER CPA A PARTNERSE[IP INCLUDING ACCOi7NTANCY CORPORAT[ONS NITIN P.PATEL,CPA ROBERT i CALLANAN,CPA *PHII.IP H.HOLTKAMP,CPA 5 CORPORATE PARK,SUITE 100 *TxoMas M.rea�.ows�,cPn [RVINE,CALIFORNIA 92606-5 l65 *xnRVEY J.scHaoE�ER,crn 949 399-0600•FAX 949 399-0610 xernve�rt�x.nn�s,cPn ( ) ( ) •wn.LinM c.eENTz,cen www.diehlevans.com "A PROFE53IONAL�ORPORA'f[ON November 10, 2008 INDEPENDENT AUDITORS'REPORT To the Honorable Mayor and Members of the City Council City of Palm Desert, California We have audited the accompanying financial statements of the governmental activities, the business- type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Palm Desert, California, as of and for the year ended June 30, 2008, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Palm Desert's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Palm Desert as of June 30, 2008, and the respective changes in financial position and cash flows, where applicable thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. - 1 - OTHER OFFICES AT: 2965 ROOSEVELT STREET 6l3 W.VALLEY PARKWAY,SUITE 330 CARLSBAD,CALIFORNIA 92008-2389 ESCONDIDQ CALIFORN[A 92025-2598 (760)729-2343�FAX(760)729-2234 (760)741314]•FAX(760)741-9890 In accordance with Government Auditing Standards, we have also issued our report dated November 10, 2008, on our consideration of the City of Palm Desert's internal control over financial " reporting and our tests of its compliance with certain laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis and the required supplementary information identified in the accompanying table of contents are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures to the management's discussion and analysis, which consisted principally of inquiries of management regarding the methods of measurement and presentation of this required supplementary information. However, we did not audit the management's discussion and analysis and express no opinion on it. The budgetary comparison schedules and related note 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying introductory section, the combining and individual fund statements, schedules and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying combining and individual nonmajor fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The accompanying introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. ���.Q.,�,,,_, �'��,,�„ �,,r,,a, c��-� , �L,� - 2 - 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, 2008 provides a comparison of current year to prior year ending resuits based on the government-wide statements; an analysis on the City's overall financial position and resuits of operations to assist users in evaluating the City's financial position; a discussion of significant changes that occurred in funds; and significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. We end our discussion and analysis with a description of currently known facts, decisions, and conditions that are expected to have a significant effect on the financial position or results of operations. Please read it in conjunction with the transmittal letter and the City's financial statements. FINANCIAL HIGHLIGHTS • The City's governmental activities net assets increased $70.58 million, and the net assets of the business-type activities decreased $.22 million. • During the year, the City revenues were $59.18 million more than the $128.87 million expenses recorded in its governmental activities. Compared to prior year, revenues were $72.99 million greaterthan expenses. • In the City's business-type activities, expenses were $.22 million more than the $8.60 million generated in green fees, merchandise sales, rental income, capital contributions and other revenues. Compared to the prior year, the business-type activities income was$.56 million. . The City's governmental activities program revenues and general revenues decreased by $11.75 million, or 5.90 percent from prior year,while program expenses increased $2.06 million. • Business-type activities revenues decreased by $0.67 million from $9.27 million to $8.60 million. This was due to a transfer of $1 million from Parkview O�ce Complex to the Capital Project Reserve Fund for park-related projects. Expenses increased by$.11 million from the prior year. • The revenues available for expenditure were $2.69 million more than budgeted in the General Fund. The City kept expenditures within spending limits by$4.28 million. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Assets and Statement of Activities (on pages 15, 16 and 17) provide information about the activities of the City as a whole and present a long-term view of the City's finances. Fund financial statements start on page 20. For governmental activities, these fund statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operation in more detail than the government-wide statements by providing information about the City's most significant funds and other funds. The remaining fiduciary fund statement provides financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. REPORTING THE CITY AS A WHOLE The Statement of Net Assets and the Statement of Activities: Our analysis of the City as a whole begins on page 15. One of the most important question asked about the City's finances is, "Is the City as a whole better off or worse off as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its activities in a way that answers this question. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. See independent auditors' report. -3- 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. Other non-financial factors should be considered, however, such as changes in the economy that could cause a decrease in consumer spending. In the Statement of Net Assets and the Statement of Activities, we separate City Activities as follows: Governmental activities — Most of the City's basic services are reported in this category, including general administration (city manager, city clerk, finance, etc.), police and fire protection, public works, parks & recreation, and culture departments. Property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues finance these activities. Business-type activities—The City charges a fee to customers to cover all or most of the cost of certain services it provides. The City's municipal golf course, Desert Willow, and the City's Parkview Office Complex activities are reported in this category. Component unit activities —The City includes one separate legal entity in its report—the Palm Desert Recreation Facilities Corporation. Although legally separate, this "component unit" is important because the City is financially accountable for it. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS Fund Financial Statements: The fund financial statements provide detailed information about the most significant funds and other funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management established many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other resources. The City has two types of funds: governmental and proprietary. Governmental funds—Most of the City's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. The differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. Proprietary funds — When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Assets and the Statement of Activities. In fact, the City's enterprise funds are the same as the business-type activities we report in the government-wide statements but provide more detail and additional information such as a statement of cash flows. See independent auditors' report. -4- THE CITY AS TRUSTEE Reporting the City's Fiduciary Responsibilities: The City is the trustee, or fiduciary, for certain funds held on behalf of developers and its employees' retiree service stipend fund. The City's fiduciary activities are reported in separate Statements of Fiduciary Assets and Liabilities. 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 $70.36 million from $566.66 million to $637.02 million. A separate review of the net change in the governmental and business-type activities is provided for the reader. 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 NET ASSETS (IN MILLIONS) As of June 30, 2008 and 2007 Governmental Business-Type Activities Activities Total 2008 2007 2008 2007 2008 2007 Current and restricted assets $ 513.97 $ 536.31 $ 6.21 $ 6.15 $ 520.18 $ 542.46 Capital assets 543.81 461.39 64.40 65.14 608.21 526.53 TOTAL ASSETS 1,057.78 997.70 70.61 71.29 1,128.39 1,068.99 Long-term liabilities outstanding 425.50 434.88 1.58 2.18 427.08 437.06 Other liabilities 63.29 64.41 1.00 0.86 64.29 65.27 TOTAL LIABILITIES 488.79 499.29 2.58 3.04 491.37 502.33 Net assets: Invested in capital assets, net of related debt 287.54 213.69 62.82 62.95 350.36 276.64 Restricted 168.03 173.33 - - 168.03 173.33 Unrestricted 113.42 111.39 5.21 5.30 118.63 116.69 TOTAL NET ASSETS $ 568.99 $ 498.41 $ 68.03 $ 68.25 $ 637.02 $ 566.66 See independent auditors' report. -5- Table 1-Graph Total Assets& Liabilities � a 1,200 = 1,000 g 800 c 600 '� ' '� 400 , ■Total Assets � 200 ���ffi � 3��:� ° - Total Liabilities G 2008 2007 2008 2007 2008 2007 Governmental Business-Type Total Activities Activities Compared to prior year, net assets of the City's governmental activities increased by 14.16 percent, or $70.58 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 19.93 percent of the overall total net assets. It changed $2.03 million from $111.39 million to $113.42 million. This is an indication that the City's Governmental Activities financial position recognized growth from prior year. The City now has$2.03 million in additional unrestricted funds that can be used to finance its operations. The increase is attributable to a one-time contribution of$2.65 million from the State of California Transportation Department (Cal-Trans) to the City for the transfer of maintenance and ownership of Highway 111 and Highway 74. The decrease in restricted net assets of$5.30 million was due to the following; restricted capital projects decreased by $27.37 million due to the use of bond funds for payment of capital projects, restricted special projects increased by $5.11 million due to the decrease in restricted bond cash, and restricted debt projects increased 10.29 million due to an increase in tax increment and $6.67 increase in other post-employment benefits. Investment in capital assets, net of related debt increased $73.85 million. The majority of the change was the contribution from the State of California for the infrastructure on Highway 111 and Highway 74, purchase of land, low-and moderate-income housing projects, and construction of various infrastructure. The net assets of the business-type activities saw a decrease of $.22 million, from $68.25 million to $68.03 million. During the previous year, the business-type activities recognized a $.56 million increase. Both Parkview and Desert Willow Golf Resort recognized a net change in their gross revenues with minimal change in the overall expenditures. The major factor driving this decrease was a transfer of $1 million from Parkview O�ce Complex to the Capital Project Reserve Fund for park-related projects. The major change in the City's governmental activities total assets was the increase in capital assets. Changes in capital assets were the result of contributed capital from the State of California; purchases of various parcels of land for future development; low- to moderate-income housing projects including Laguna Palms, California Villas and La Rocca Villas; and the start and completion of various street, bridge, traffic signal, drainage and park projects. Total liabilities decreased by $10.50 million. Most of the change is due to the retirement of debt by the City's Redevelopment Agency. See independent auditors' report. -6- TABLE 2 CHANGES IN NETASSETS (IN MILLIONS) As of June 30,2008 and 2007 Governmental Business-Type Activities Activities Total 2008 2007 2008 2007 2008 2007 REVENUES: Program Revenues: Charges for services $ 19.22 $ 19.64 $ 9.12 $ 8.75 $ 28.34 $ 28.39 Operating grants and contributions 5.84 7.95 - - 5.84 7.95 Capital grants and contributions 42.55 57.13 0.21 0.28 42.76 57.41 General Revenues: Property taxes 6.25 6.05 - - 6.25 6.05 Tax increment(net of pass-through) 55.41 50.48 - - 55.41 50.48 Transient occupancy tax 8.60 8.63 - - 8.60 8.63 Sales tax 17.15 17.75 - - 17.15 17.75 Other taxes 3.11 3.86 - - 3.11 3.86 Investment earnings 15.31 17.52 0.27 0.24 15.58 17.76 Contribution not restricted for special purpose 7.24 - - - 7.24 - Otherrevenues 6.37 10.79 6.37 10.79 Transfer In/Out 1.00 - (1.00) - - - TOTAL REVENUES 188.05 199.80 8.60 9.27 196.65 209.07 EXPENSES: General government 46.05 39.96 - - 46.05 39.96 Public safety 26.85 24.67 - - 26.85 24.67 Parks,recreation and culture 8.01 4.99 - - 8.01 4.99 Public works 27.25 37.09 - - 27.25 37.09 Interest on long-term debt 20.71 20.10 - - 20.71 20.10 Golf Course-Desert Willow - - 8.17 7.99 8.17 7.99 Office Complex-Parkview - - 0.65 0.72 0.65 0.72 TOTAL EXPENSES 128.87 126.81 8.82 8.71 137.69 135.52 INCREASE(DECREASE) IN NETASSETS 59.18 72.99 (0.22) 0.56 58.96 73.55 BEGINNING NETASSETS 498.41 427.65 68.25 67.69 566.66 495.34 RESTATEMENT OF NET ASSETS 11.40 (2.23) - - 11.40 (2.23) ENDING NETASSETS $ 568.99 $ 498.41 $ 68.03 $ 68.25 $ 637.02 $ 566.66 See independent auditors' report. -7- Table 2- Graph Changes in Net Assets 600 � � . „ _ �„�,��.« ��„ .�., ,�� soo .,�� �'�: �„ � �_w.,,�.. ....�„� ?� �,�. .. �� �� �6�ginr��ngN�t � � �' , u:,; 60 � ~�~~- n Assets �: ;.,,�� , `, a ���-,,, A00 _.»_ ,��� 4 � 50 �. .��� �.;---n �_ ,..'�� ,._.�..M Tak:�t Revenue<_ N � ;:� r,;. � � � r,:; � ' � 30fl `�� .._ ...�. __ _ � ;_ ; —�1—En�� � e.Assets rt N c 30 � _.,�., .a , � N ryp{� ......�. � G ,,, x' ao ; �, 'f -, �rot�iEx��,s�� „ $ �,,,�. �y: y; ' , . ioo =�--•' ln __�w _ �... : Zop7 zoas 2407 2aas Governmttt�dl Rctivities 8usiness-'Ype AcYivities Governmental Activities Totai revenue decreased from $199.80 million to $188.05 million, a 5.90 percent decrease. The decrease is the result of a 25.52 percent decrease in capital grants and contributions of $14.58 million, and a $2.21 million decrease in investment earnings. Governmental Activities revenues did see increases in tax increments of $4.93 million, and $7.24 million from contributions not restricted for special purpose. Factors that contributed to the changes in revenues are as follows: . Prior year capital grants and contributions included contributions from property owners in the amount of$46 million for public improvements and zero for current year; • Decrease in City's earnings due to lower yields in investment; . Increase in property values provided additional tax increment; and . Recognition of the net contribution for Other Post-employment Benefits from the City on behalf of its employees. Total expenses increased from $126.81 million to $128.87 million. Two factors were contributed to the change in expenses. First, an increase in the governmental activities general government was the result of homes sold from the housing project Falcon Crest, and second, a decrease in public works expenses resulting from the capitalization of the expenditures for the University. See independent auditors' report. -8- The following schedule represents the net cost of providing services: Governmental Activities Net(Expense) Revenue (In Millions) 2008 2007 General government ($32.52) ($27.38) Public safety (17.99) (15.44) Parks, recreation and culture (6.82) 0.29 Public works 16.77 20.54 Interest on long term debt (20.71) (20.10) Total ($61.27) ($42.09) aoo� 20OS Governmental AGtivitleS Govemmental RctiviYles Net(Exp¢nsC.)RfvCntiC� Net(Expense�)Revenue � C,eneral E�ovc:mment �Z .,9, y 6 y�,y ... 34:u.� �.d.� $ ��� 3_3'�h ��r�I�I I���N I � � ��II����Y�I��I�i���ll��i���ii��li���l��l���l���l�l� � ■Public safety i � �Parks,recreatian 8n 18% tEdkttCB ■Put�lic v;rctks �i i�ti 25:� � ls�u �Snterrst on lor�terrn G!i dcb: Business-type Activities Business-type activities revenues, before transfers out, increased by $0.33 million, a 3.55 percent increase. Overall, however, the net effect of the transfer out reduced the total revenue by $0.67 million, a 7.22% decrease. 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 tenants' rent at Parkview Office Complex. Operating expenses for business-type activities increased from $8.71 million to$8.82 million, an increase of 1.26 percent. The majority of the increase was directly related to the golf resort and the increased cost for fuel and its effect on other items such as fertilizer and other supplies. Other changes were normal for the business entities and their respective industries. See independent auditors' report. -9- THE CITY'S FUNDS On page 20, the governmental funds balance sheet is shown. The combined fund balance of $429.45 million decreased from $457.46 million, or 6.12 percent. This total includes the General Fund balance of $79.82 million, which increased by $3.71 million from prior year. The City's General Fund balance has reserved $16.30 million for advances, encumbrances, loans, debt service, etc. The change in fund balance was a one-time contribution of $2.65 million from the State of California Transportation Department(Cal-Trans)to the City. Other major funds balance changes are noted below: . The Prop A Fire Tax Fund, fund balance increased due to the change in the tax credit the City receives from the County. • The Redevelopment Agency Financing Authority Debt Service Fund, fund balance decreased due to the cost of administering the Redevelopment debt. • The Redevelopment Agency Debt Service Funds, fund balance increased due to 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 decreased due to the capital projects expenditures. . The Redevelopment Low-income Housing Fund, fund balance decreased due to the construction of housing projects for low-income housing. More detailed information about the combined fund balance reserves is presented in Note 10 to the financial statements. General Fund Budgetary Highlights During the year, based upon recommendations from the City's staff, the City Counci� 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 had been 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, the actual ending revenues of$55.09 million were$2.69 million more than the final budgeted revenues of $52.40 million. The majority of the variance was in the intergovernmental revenues. Within the intergovernmental revenues, the State of California awarded the City $2.65 million for the transfer of highways located in the City. The General Fund actual ending expenditures of $51.38 million were $4.28 million less than the final budget of$55.66 million. There were changes in the original budget compared to the final budget during the year. The original expenditure budget was $52.23 million compared to the fina� budget of $55.66 million, a $3.43 million increase. The major change was due to the re-appropriations of prior year encumbrances and additional appropriations in the Public Works Street Resurfacing Division for the purpose of resurfacing streets in the City. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of 2008, the City had $608.21 million invested in a broad range of capital assets, including land, streets, bridges, drainage systems, traffic lights, parks, buildings, art work, vehicles and equipment (See Table 3). This amount represents a net increase (including additions and deductions) of $81.68 million, or 15.51 percent over prior year. See independent auditors' report. - 10- TABLE 3 CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION, IN MILLIONS) For the years ended June 30,2008 and 2007 Govemmental Business-Type Activities Activities Total 2008 2007 2008 2007 2008 2007 Land $ 118.35 $ 110.65 $ 52.60 $ 52.51 $ 170.95 $ 163.16 Construction in progress 31.80 75.63 - - 31.80 75.63 Buildings and improvements 108.48 76.89 9.90 10.07 118.38 86.96 Equipment 3.26 3.20 1.90 2.56 5.16 5.76 Ir�rastructure 281.92 195.02 - - 281.92 195.02 TOTALS $ 543.81 $ 461.39 $ 64.40 $ 65.14 $ 60821 $ 526.53 Table 3-Graph Capital Assets at Year-End (Net of Depreciation in Millions) � 800 Land ° 600 •� 400 . ` ■Construction in Progress = 200 •� �Buildings and Improvements � 0 2008 2007 2008 2007 2008 2007 ■Equipment 0 Infrastructure Governmental Business Type Total Activities Activities Totals This year's major additions included (in miliions): Land acquisitions $ 2•�9 Capital Contribution of Infrastructure from the State 30.19 Section 29 Infrastructure 12.80 University Infrastructure 8�89 Portola Bridge 2.54 Fred Waring Project 3.94 Henderson Building 5.66 $ 66.21 See independent auditors' report. - 11 - The City's fiscal year 2009 capital budget calls for it to spend an additional $52.05 million plus the continuing capital projects spending of $109.69 million from prior year, the majority being street improvements. Projects will be funded with existing bond proceeds or funds that have been designated by an outside party for specific use. More detailed information about the City's capital assets is presented in Note 1d and Note 5 to the financial statements. Debt At year-end, the City's governmental activities had $425.50 million in bonds, notes, contracts, and compensated absences versus $434.88 million last year, a decrease of $9.38 million, or 2.2 percent as shown in Table 4. The major cause for the decrease was the re-payment of principal payment by the Agency. TABLE 4 OUTSTANDING DEBT,ATYEAR-END (IN MILLIONS) For the years ended June 30, 2008 and 2007 Governmental Business-Type Activities Activities Total 2008 2007 2008 2007 2008 2007 Compensated absences $ 2.88 $ 2.53 $ - $ - $ 2.88 $ 2.53 Notes payable 0.49 0.61 - - 0.49 0.61 Contract and leases payable - - 1.58 2.18 1.58 2.18 Claims Payable 0.44 0.54 - - 0.44 0.54 Special assessments debt with government commitment 2•75 2.78 - - 2•�5 2•�$ Revenue bonds and notes (backed by specific tax and fee revenues) 418.94 428.42 - - 418.94 428.42 TOTALS $ 425.50 $ 434.88 $ 1.58 $ 2.18 $ 427.08 $ 437.06 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 Iand and construction of the City's golf course. The City's business-type activities debt decreased $.60 million from $2.18 million to$1.58 million. Debt in the business-type activities is for capital leasing of equipment. The City's golf course uses leasing as an alternative to purchasing maintenance equipment to maintain a cash flow to operate the day-to-day activities. The decrease in the City's business-type activities debt was directly related to the continued reduction in principal on the leases for golf course equipment, golf carts, and GPS tracking golf cart system. During the next few years, the debt for the business-type activities will be fully amortized. Within the next two years, the golf resort will determine whether to replace the maintenance equipment and golf carts as they reach the end of their useful life. As a result our liability will increase. More detailed information about the City's long-term liabilities is presented in Note 6 to the financial statements. See independent auditors' report. - 12- ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS In preparing the budget for fiscal year 2009, management looked at the following economic factors: • Energy and fuel cost: Uncertainty lingers regarding the energy crisis in California, and 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 created a new energy department whose main focus is to implement 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 enables the employees to share fuel costs by commuting together. The City's 2009 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. . The State of California's budget crisis has started to affect the pass-through revenues that the City receives from the State. In addition, the State is holding payments that belong to the City to meet their obligations. The uncertainty of how the State will balance their budget has caused the City to look at ways to cut costs. Due to this uncertainty, the City's revenues and expenditures have remained flat. • National Economy: The City's main revenue sources, sales tax(34.75%)and transient occupancy tax (15.55%), rely heavily on a strong national and local economy. With a strong national economy, the market demand for leisure activities such as travel, shopping and dining is increased. However, in an economic downturn or a slowing of the economy, the typical trend is for the consumer to reduce their spending of disposable income for leisure activities. The City of Palm Desert does not know the extent of the impact of the current economic environment's effect on the city's main revenue sources, but since the City relies on the local tourism industry for their revenue, a downturn in tourism would affect the City's revenue. Compared to the prior year budget, the City's general fund expenditures are projected to increase by$.99 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 City continues to develop with new hotels, commercial and residential development, construction of a four-year university, street improvements, park construction, and various other projects. The 2009 budget is a reflection of the City's commitment to the residents of Palm Desert. The City's conservative approach has provided for a consistently 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 2008-2009 financial plan can be obtained by contacting the City's finance department or on the City's web-site at www.citVafpafmdessrt.orq. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City's Finance Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, or(760) 346-0611. See independent auditors' report. - 13- THIS PAGE INTENTIONALLY LEFT BLANK - 14 - Exhibit A CITY OF PALM DESERT STATEMENT OF NET ASSETS June 30,2008 Component Primary Government Unit �a m esert Recreational Governmental Business-type Facilities Activities Activities Total Corporation ASSETS Current assets: Cash and investments $ 274,195,214 $ 5,278,483 $ 279,473,697 $ 404,029 Receivables: Accounts 3,785,742 112,568 3,898,310 40,485 Notes 3,748,000 - 3,748,000 - Interest 3,619,177 - 3,619,177 - Loans 9,957,636 - 9,957,636 - Internal balances 1,801 (1,801) - - Prepaidcosts 949,922 11,307 961,229 2,195 Inventories 47,906 240,769 288,675 50,917 Deposits 622,511 - 622,511 - Due from other governments 6,906,711 - 6,906,711 - Property held for resale 25,000 - 25,000 - Due trom component unit 285,000 570,428 855,428 - Unamortized debt issuance costs 10,802,142 - 10,802,142 - Net OPEB asset 6,669,247 - 6,669,247 - Restricted assets: Cash with fiscal agent 192,347,811 - 192,347,811 - Noncurrent assets: Capital assets,not being depreciated 270,034,748 52,599,522 322,634,270 - Capital assets,net of depreciation 273,777,749 11,797,916 285,575,665 - TOTAL ASSETS 1,057,77 ,31 70, ,1 1,1 , 5,5 7, LIABILITIES AND NET ASSETS Cunent liabilities: Accounts payable 12,237,775 609,501 12,847,276 17,064 Accrued liabilities 517,386 194,127 711,513 35,521 Interest payable 5,342,066 - 5,342,066 - Unearned revenues 1,056,417 171,029 1,227,446 41,660 Deposits payable 713,620 25,112 738,732 - Due to primary government - - - 855,428 Amounts due under pass-through agreement 43,419,765 - 43,419,765 - Noncurrent liabilities: Due within one year 13,798,707 627,649 14,426,356 - Due in more than one year 4l 1,704,051 955,133 412,659,184 - TOTAL LIABILITIES NET ASSETS: Invested in capital assets, net of related debt 287,536,477 62,814,656 350,351,133 - Restricted for: Special projects 58,024,051 - 58,024,051 - Debt service 20,221,116 - 20,221,116 - Capital projects 83,115,487 - 83,115,487 - Other Post Employment Benefit 6,669,247 - 6,669,247 - Unrestricted(deficit) 113,420,152 5,211,985 118,632,137 (452,047) TOTAL NET ASSETS(DEFICIT) $ 568,986,530 $ 68,026,641 $ 637,013,171 $ (452,047) See independent auditors'report and notes to basic financial statements. - 15- CITY OF PALM DESERT STATEMENT OF ACTNITIES For the year ended June 30,2008 Program Revenue Charges Operating Capital for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government: Governmental activities: General government $ 46,048,643 $ 8,454,683 $ 1,463,719 $ 3,613,443 Public safety 26,855,060 8,808,300 58,206 - Parks,recreation and culture 8,013,211 1,190,725 - - Public works 27,245,937 762,440 4,321,085 38,931,590 Interest on long term debt 20,706,514 - - Total governmental activities 128,869,365 19,216,148 5,843,010 42,545,033 Business-type activities: Desert Willow GolfCourse 8,167,682 8,182,741 - 206,609 Office Complex-Parkview 649,548 934,833 - - Total business-type activities 8,817,230 9,117,574 - 206,609 Total primary government $137,686,595 $ 28,333,722 $ 5,843,010 $ 42,751,642 Component Unit: Palm Desert Recreational Facilities Corp. $ 2,642,042 $ 2,642,504 $ - $ - General revenues: Taxes: Property taYes,levied for general purpose Ta�c increment,net of pass-throughs Transient occupancy ta�ces Sales ta�ces Franchise taaces Motor vehicle in lieu Investment earnings Contribution not restricted for specific purpose Miscellaneous Transfers Total general revenues Change in net assets Net assets(deficit)-beginning of year,as restated Net assets(deficit)-end of year See independent auditors'report and notes to basic financial statements. - 16- Exhibit B Net(Expenses)Revenues and Changes in Net Assets Component Primary Government Unit Palm Desert Recreational Governmental Business-type Facilities Activities Activities Total Corporation $ (32,516,798) $ - $ (32,516,798) $ - (17,988,554) - (17,988,554) - (6,822,486) - (6,822,486) - 16,769,178 - 16,769,178 - (20,706,514) - (20,706,514) - � (61,265,174) - (61,265,174) - - 221,668 221,668 - - 285,285 285,285 - - 506,953 506,953 - (61,265,174) 506,953 (60,758,221) - _ _ - 462 6,252,863 - 6,252,863 - 55,406,112 - 55,406,112 - 8,605,714 - 8,605,714 - 17,154,764 - 17,154,764 - 2,887,727 - 2,887,727 - 220,785 - 220,785 - 15,309,271 267,797 15,577,068 - 7,240,770 - 7,240,770 - 6,369,028 - 6,369,028 - i,000,000 ��,000,000� - - 120,447,034 (732,203) 119,714,831 - 59,181,860 (225,250) 58,956,610 462 509,804,670 68,251,891 578,056,561 (452,509) $ 568,986,530 $ 68,026,641 $ 637,013,171 $ (452,047) - 17- THIS PAGE INTENTIONALLY LEFT BLANK - 18 - FUND FINANCIAL STATEMENTS - 19 - CITY OF PALM DESERT BALANCE SHEET-GOVERNMENTAL FUNDS June 30,2008 Special Revenue Funds RDA Prop A Low Income General Fire Tax Housing ASSETS: Pooled cash and investments $ 66,045,124 $ 3,776,373 $ 28,055,415 Receivables: Accounts 1,516,427 50 150,863 Assessments - - - Notes 3,748,000 - - Interest 1,724,482 - 105,789 Loans 231,176 - 7,695,368 Prepaid costs 920,938 - 156 Deposits - - - Due from other governments 3,249,502 691,209 340,074 Due from other funds 218,256 - - Advances to other funds 9,236,000 - - Inventories 47,906 - - Property held for resale - - 25,000 Due from component unit 285,000 - - Restricted assets: Cash and investments with fiscal agent - - 32,324,067 TOTAL ASSETS $ 87,222,811 $ 4,467,632 $ 68,696,732 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 4,489,023 $ 795,342 $ 311,808 Accrued liabilities 365,145 - 10,315 Due to other funds - - - Unearnedrevenues 1,170 - 1,925 Advances from other funds - - - Deferred revenue 2,548,185 - - Amounts due under pass-through agreements - - - Deposits payable - - 500 TOTAL LIABILITIES � 7,403,523 795,342 324,548 FUND BALANCES: Reserved 16,304,234 - 19,912,697 Unreserved: Reported in Other Governmental Funds: Special revenue funds - - - Debt services funds - - - Capital projects funds - - - Designated for: Special revenue purposes - 3,672,290 48,459,487 Debt service - - - Capital outlay - - - Undesignated 63,515,054 - - TOTAL FiJND BALANCES 79,819,288 3,672,290 68,372,184 TOTAL LIABILITIES AND FiJND BALANCES $ 87,222,811 $ 4,467,632 $ 68,696,732 See independent auditors'report and notes to basic financial statements. -20- Exhibit C Debt Service Funds RDA RDA RDA Other Total Financing Debt Capital Governmental Governmental Authority Service Projects Funds Funds $ - $ 88,919,907 $ 8,661,452 $ 74,046,911 $ 269,505,182 - 1,275,400 1,683 841,319 3,785,742 _ _ - 2,699,594 2,699,594 _ _ _ - 3,748,000 25,130 - 1,598,155 165,621 3,619,177 _ - 2,000,000 31,092 9,957,636 _ - 27,853 975 949,922 _ - 621,281 1,230 622,511 _ _ - 2,625,926 6,906,711 _ _ _ - 218,256 _ _ - 13,419,000 22,655,000 _ _ _ - 47,906 _ _ _ - 25,000 _ _ _ - 285,000 12,091,959 - i 12,002,654 35,929,131 192,347,811 $ 12,117,089 $ 90,195,307 $ 124,913,078 $ 129,760,799 $ 517,373,448 $ - $ 2,120 $ 2,510,550 $ 4,128,933 $ 12,237,776 _ - 42,170 99,756 517,386 _ _ - 216,455 216,455 _ _ - 1,053,322 1,056,417 - 22,655,000 - - 22,655,000 _ _ - 4,556,645 7,104,830 - 43,419,765 - - 43,419,765 _ - 15,000 698,120 713,620 - 66,076,885 2,567,720 10,753,231 87,921,249 630,500 - 69,620,170 53,871,441 160,339,042 _ _ - 20,346,422 20,346,422 _ _ - 101,009 101,009 _ _ - 44,707,586 44,707,586 _ _ _ - 52,131,777 11,486,589 24,118,422 - - 35,605,011 - - 52,725,188 - 52,725,188 _ _ - (18,890) 63,496,164 ]2,117,089 24,118,422 122,345,358 119,007,568 429,452,199 $ 12,117,089 $ 90,195,307 $ 124,913,078 $ 129,760,799 $ 517,373,448 -21 - THIS PAGE INTENTIONALLY LEFT BLANK -22 - Exhibit D CITY OF PALM DESERT RECONCILIATION OF THE BLANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30,2008 Total fund balance for governmental funds $ 429,452,199 Amounts reported for governmental activities in the Statement of Net Assets are different because: When capital assets(land,buildings,equipment,etc.)that are to be used in governmental activities are purchased or constructed,the costs of those assets are reported as expenditures in governmental funds. However,the Statement of Net Assets includes those capital assets and contribution among the assets of the City as a whole: Beginning Balance,net depreciation $ 459,783,453 Prior period adjustment 11,396,588 Current year additions 52,256,552 Current year deletions (2,496,377) Current year depreciation (8,573,548) Transfer to internal service fund (125,166) Contribution from other governments 30,199,442 Ending Balance,net depreciation 542,440,944 Long-term debt activities and compensated absences have not been included in the governmental fund activities: Long-term debt (416,374,841) Bond premium (7,850,943) Unamortized loss on defeasance 1,606,250 Compensated absences (2,883,224) Interest on long-term debt is not accrued in governmental funds,but rather is recognized as an expenditure when due. (5,342,066) Cost of issuing bonds is recognized as an expenditure in the period paid,however, in the Statement of Net Assets it is amortized over the life of the bond. 10,802,142 Because the focus of governmental funds is on short-term financing,some assets will not be available to pay for current-period expenditures. Those assets(for example,receivables)are offset by deferred revenues in the governmental funds and,thus,are not included in fund balance: Palm Desert Recreational Facilities Corporation-relates to the amount of rent owed by component unit to City's General Fund 285,000 Community Development Block Grant-relates to loans given to low to moderate income families 31,092 Capital reimbursement from developer for work completed by the City on behalf of the developer 1,400,367 Interest that was not paid at year-end 195,300 Sales tax true-up from the State 112,640 Redevelopment Agency payable for City project 325,838 Redevelopment Agency land purchase from City 2,055,000 4,405,237 Other post employment benefit asset is not available to fund current expenditures for governmental funds and therefore is not reported as an asset in the governmental funds. 6,669,247 Internal service funds are used by management to charge the costs of certain activities,such as equipment,management and self-insurance to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Assets. 6,061,585 Net assets of govemmental activities $ 568,986,530 See independent auditors'report and notes to basic financial statements. -23- CITY OF PALM DESERT STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS For the year ended June 30,2008 Special Revenue Funds RDA Prop A Low Income General Fire Tatc Housing REVENUES: Taxes $ 40,876,935 $ 5,516,542 $ - Special assessments collected - 1,620,168 - Licenses and permits 1,180,020 - - Intergovernmental revenues 5,193,161 662,882 19,319 Rental income - - 2,844 Charges for services 1,190,725 - - Investment earnings 4,571,147 165,729 2,656,604 Fines and forfeitures 105,365 - - Sale of inventory - - 15,295,000 Miscellaneous 866,843 - 200,669 TOTAL REVENUES 53,984,196 7,965,321 18,174,436 EXPENDITURES: Current: General government 16,306,128 - 23,984,127 Pass-through agreement - ' ' Public safety 17,674,051 8,942,808 - Parks,recreation and culture 4,572,695 - - Public works 10,153,794 - - Capital outlay 531,589 80,132 1,829,895 Debt service: Principal retirement - ' - [nterest and fiscal charges - ' - TOTAL EXPENDITURES 49,238,257 9,022,940 25,814,022 EXCESS OF REVENUES OVER (LJNDER)EXPENDITURES 4,745,939 (1,057,619) (7,639,586) OTHER FINANCING SOURCES(USES): Transfers in 1,101,610 1,650,000 18,141,936 Transfers out (2,142,660) - (13,021,024) Capital accreation on bonds - ' ' Sale of property ' ' - TOTAL OTHER FINANCING souxcEs�usEs> (i,o4i,oso> i,6so,000 s,t2o,9�2 NET CHANGE IN FLJND BALANCES 3,704,889 592,381 (2,518,674) Fi1ND BALANCES-BEGINNING OF YEAR 76,114,399 3,079,909 70,890,858 FLJND BALANCES-END OF YEAR $ 79,819,288 $ 3,672,290 $ 68,372,184 See independent auditors'report and notes to basic financial statements. -24- Exhibit E Debt Service Funds RDA RDA RDA Other Total Financing Debt Capital Governmental Governmental Authority Service Projects Funds Funds $ - $ 89,927,687 $ - $ 4,010,302 $ 140,331,466 _ _ - 440,623 2,060,791 _ - - 273,157 1,453,177 - - 786,655 12,334,675 18,996,692 - - 83,754 4,702,823 4,789,421 _ _ _ - 1,190,725 523,406 2,716,910 5,714,093 6,244,503 22,592,392 _ _ - 149,492 254,857 _ _ - - 15,295,000 - 624,163 1,754,882 1,422,542 4,869,099 523,406 93,268,760 8,339,384 29,578,117 211,833,620 - 50,334 8,057,814 14,397,201 62,795,604 - 38,993,445 - - 38,993,445 _ - - 60,884 26,677,743 _ _ _ - 4,572,695 _ _ - 12,782,927 22,936,721 - - 9,189,819 40,625,117 52,256,552 10,610,000 122,707 - 35,000 10,767,707 21,402,246 1,836,561 - 137,757 23,376,564 32,012,246 41,003,047 17,247,633 68,038,886 242,377,031 (31,488,840) 52,265,713 (8,908,249) (38,460,769) (30,543,411) 29,853,788 - 2,295,701 6,680,601 59,723,636 - (40,161,795) (648,997) (2,749,160) (58,723,636) 1,484,806 - - - 1,484,806 - - 47,000 - 47,000 31,338,594 (40,161,795) 1,693,704 3,931,441 2,531,806 (150,246) 12,103,918 (7,214,545) (34,529,328) (28,011,605) 12,267,335 12,014,504 129,559,903 153,536,896 457,463,804 $ 12,117,089 $ 24,118,422 $ 122,345,358 $ 119,007,568 $ 429,452,199 -25- Exhibit F CITY OF PALM DESERT RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the year ended June 30,2008 Net change in fund balances-total governmental funds $ (28,011,605) Amounts reported for governmental activities in the Statement of Activities aze different because: Governmental funds report capital outlays as expenditures. However,in the Statement of Activities,the costs of those assets are allocated over their estimated useful lives as a depreciation expense. This is the amount by which capital outlays exceeded depreciation and deletions in the current period: Cunent yeaz additions $ 52,256,552 Current year deletions (2,621,543) Current year depreciation (8,573,548) 41,061,461 Donations of capital assets increase net assets in the Statement of Activities, but do not appear in the governmental funds because they are not financial resources. 30,199,442 Repayment of debt principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the Statement of Net Assets. 1 Q767,707 Proceeds of bonds are reported as other financing sources in governmental funds,however,the receipts of debt increases liabilities in the Statement of Net Asseta (1,484,806) Costs of issuing bonds are recognized as an expenditures in the period paid, however,in the Statement of Net Assets,it is amortized over the life of the bond (509,785) Premium on bonds is recognized as interest in the period received,however, in the Statement of Net Assets it is amortized over the life of the bond. 475,703 Losses on defeased bonds are recorded in the Statement of Net Assets as a reduction to long-term liabilities and amortized over the life of the bonds. (122,715) Some expenses reported in the Statement of Activities do not require the use of current financial resources and,therefore,are not reported as expenditures in governmental funds: Net change in compensated absences for the cunent period (351,171) Net change in accrued interest for the current period 988,568 Net change in claims and judgments for the current period 95,688 Collection of deferred revenues is reported as revenues in governmental funds and thus has the effect of increasing fund balances. For the City as a whole, however,the collection of these receipts reduces the net assets in the Statement of Net Assets and does not result in revenues in the Statement of Activities: Deferred loans (4,781) Redevelopment expenditure offset by City receivables (344,070) Revenues will not be collected within 60 days of the City's fiscal year-end and, therefore,aze not considered available in the governmental funds: Rental income due from Palm Desert Recreational Facilities Corporation (180,000) Capital reimbursement revenue related to construction completed by the City on behalf of the developer (202,402) Interest on note issued by the City (178,300) Sales ta�c true-up from the State (40,979) Contributions from Fiduciary Fund to fund other post employment benefits. 7,240,770 Current year expense for other post employment benefits. (571,523) Internal service funds aze used by management to chazge the wsts of certain activities,such as equipment. The net revenues(eapenses)of the intemal service funds are repoRed with governmental activities. 354,658 Change in net assets of govemmental activities $ 59,181,860 See independent auditors'report and notes to basic financial statements. -26- Exhibit G CITY OF PALM DESERT STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30,2008 Business-type Activities- Enterprise Funds Major Other Fund Fund Governmental Desert Office Total Activities- Willow Complex Enterprise Internal Golf Course Parkview Funds Service Funds ASSETS CURRENT ASSETS: Cash and investments $ 2,159,106 $ 3,119,377 $ 5,278,483 $ 4,690,032 Receivables: Accounts 53,506 59,062 112,568 - Prepaid costs 10,872 435 11,307 - Inventories 240,769 - 240,769 - Due from component unit(PDRFC) 570,428 - 570,428 - TOTAL CURRENT ASSETS 3,034,681 3,178,874 6,213,555 4,690,032 CAPITAL ASSETS: Nondepreciable 52,599,522 - 52,599,522 - Depreciable,net 8,737,381 3,060,535 11,797,916 1,371,553 CAPITAL ASSETS,NET 61,336,903 3,060,535 64,397,438 1,371,553 TOTAL ASSETS 64,371,584 6,239,409 70,6]0,993 6,061,585 LIABILITIES CURRENT LIABILITIES: Accounts payable 587,838 21,663 609,501 - Accrued liabilities 194,127 - 194,127 - Deposits payable - 25,112 25,112 - Unearned revenues 158,925 12,104 171,029 - Due to other funds 1,801 - 1,801 - Current portion-capital leases 627,649 - 627,649 - TOTAL CURRENT LIABILITIES 1,570,340 58,879 1,629,219 - NONCURRENT LIABILITIES: Capitalleases 955,133 - 955,133 - TOTAL NONCURRENT LIABILITIES 955,133 - 955,133 - TOTAL LIABILITIES 2,525,473 58,879 2,584,352 - NET ASSETS Invested in capital assets,net of related debt 59,754,121 3,060,535 62,814,656 1,371,553 Unrestricted 2,091,990 3,119,995 5,211,985 4,690,032 TOTAL NET ASSETS $ 61,846,111 $ 6,180,530 $ 68,026,641 $ 6,061,585 See independent auditors'report and notes to basic financial statements. _27_ Exhibit H CITY OF PALM DESERT STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the year ended June 30,2008 Business-type Activities- Enterprise Funds Major Other Fund Fund Governmental Desert Office Total Activities- Willow Complex Enterprise Internal Golf Course Parkview Funds Service Funds OPERATING REVENUES: Fees and rentals $ 7,201,359 $ 934,833 $ 8,136,192 $ 387,665 Merchandise sales 981,382 - 981,382 - TOTAL OPERATING REVENUES 8,182,741 934,833 9,117,574 387,665 OPERATING EXPENSES: Maintenance and operations 4,302,302 216,187 4,518,489 1,899 Cost of inerchandise 489,126 - 489,126 - General and administrative 2,119,199 220,564 2,339,763 - Depreciation and amortization 1,137,840 212,797 1,350,637 387,665 TOTAL OPERATING EXPENSES 8,048,467 649,548 8,698,015 389,564 OPERATING INCOME(LOSS) 134,274 285,285 419,559 (1,899) NONOPERATING REVENUES(EXPENSES): Interest revenue 61,308 206,489 267,797 231,391 Interest expense (117,951) - (117,951) - Gain(loss)on capital assets (1,264) - (1,264) - TOTAL NONOPERATING REVENUES(EXPENSES) (57,907) 206,489 148,582 231,391 INCOME BEFORE CAPITAL CONTRIBUTIONS ANDTRANSFERS 76,367 491,774 568,141 229,492 CAPITAL CONTRIBUTIONS 206,609 - 206,609 125,166 T�aNSFExs oUT - �i,000,000> (�,000,000> - CHANGE[N NET ASSETS 282,976 (508,226) (225,250) 354,658 NET ASSETS-BEGINNING OF YEAR 61,563,135 6,688,756 68,251,891 5,706,927 NET ASSETS-END OF YEAR $ 61,846,111 $ 6,180,530 $ 68,026,641 $ 6,061,585 See independent auditors'report and notes to basic financial statements. -28- Exhibit I CITY OF PALM DESERT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the year ended June 30,2008 Business-type Activities- Enterprise Funds Major Other Fund Fund Governmental Desert Office Total Activities- Willow Complex Enterprise Internal Golf Course Pazkview Funds Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers $ 8,293,891 $ 917,341 $ 9,211,232 $ - Payments to suppliers (3,956,579) (512,046) (4,468,625) (6,492) Payments to employees (3,173,791) - (3,173,791) - Receipts from interfund services - - - 387,665 NET CASH PROVIDED BY OPERATING ACTNITIES 1,163,521 405,295 1,568,816 381,173 CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: Cash received from other funds - ' ' - Cash paid to otherfunds (657,892) (1,000,000) (1,65�,892) - NET CASH PROVIDED(USED)BY NONCAPITAL AND RELATED ACTIVITIES (657,892) (1,000,000) (1,657,892) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTNITIES: Purchasesofcapitalassets (261,182) (143,091) (404,273) (25,797) Principal paid on leases (598,764) - (598,764) - [nterest paid on leases (117,951) - (117,951) - NET CASH PROVIDED(USED)BY CAPITAL AND RELATED FiNANCING ACTNITIES (977,897) (143,091) (1,120,988) (25,797) CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends 61,308 206,489 267,797 231,391 NET[NCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (410,960) (531,307) (942,267) 586,767 CASH AND CASH EQUNALENTS- BEGINNING OF YEAR 2,57Q066 3,650,684 6,220,750 4,103,265 CASH AND CASH EQUNALENTS- END OF YEAR $ 2,159,106 $ 3,ll9,377 $ 5,278,483 $ 4,690,032 (Continued) See independent auditors'report and notes to basic financial statements. -29- Exhibit I CITY OF PALM DESERT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (CONTINUED) For the year ended June 30,2008 Business-rype Activities- Enterprise Funds Major Other Fund Fund Governmental DeseR Office Total Activities- Willow Complex Enterprise Internal Golf Course Parkview Funds Service Funds RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income(loss) $ 134,274 $ 285,285 $ 419,559 $ (1,899) Adjustments to reconcile operating income(loss)to net cash provided by operating activities: Depreciation and amortization 1,137,840 212,797 1,350,637 387,665 Changes in assets and liabilities: (Increase)decrease in receivables,net 79,213 (18,�18) 60,495 - ([ncrease)decrease in prepaid costs 54,549 - 54,549 - (Increase)decrease in inventories (22,765) - (22,765) - (Increase)decrease in due from component unit (433,666) - (433,666) - Increase(decrease)in accrued liabilities 182,139 (71,734) 110,405 (4,593) Increase(decrease)in deposits payable (3,561) (3,561) - Increase(decrease)in uneazned revenues 31,937 1,226 33,163 - NET CASH PROVIDED BY OPERATING ACTIVITIES $ 1,163,521 $ 405,295 $ 1,568,816 $ 381,173 NONCASH ITEMS: Noncash items include$206,609 and$125,166(net value)of capital assets contributed by the City of Palm Desert to Desert Willow Golf Course and the internal service fund,respectively. See independent auditors'report and notes to basic financial statements. -30- Exhibit J CITY OF PALM DESERT STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCYFUNDS June 30,2008 Total Agency Funds ASSETS Cash and investments $ 14,132,261 Receivables(net of allowance for uncollectibles): Accounts 112,628,103 Interest 20,857 Restricted assets: Cash with fiscal agent 10,035,516 TOTAL ASSETS $ 136,816,737 LIABILITIES Deposits $ 136,816,737 See independent auditors'report and notes to basic financial statements -31 - THIS PAGE INTENTIONALLY LEFT BLANK - 32 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Description of the Reporting Entity: The City of Palm Desert was originally incorporated on November 26, 1973, as a General Law City. In December 1997, the voters in the City passed Measure LL, which adopted a City Charter. The City operates under a Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, public improvements, community development(planning, building and zoning) and general administrative services. The City has defined its reporting entity in accordance with accounting principles generally accepted in the United States of America which provides guidance for determining which governmental activities, organizations and functions should be included in the reporting entity. The Basic Financial Statements present information on the activities of the reporting entity, which include the City of Palm Desert (the primary government) and its component units, entities for which the government is considered financially accountable. Accounting principles generally accepted in the United States of America require that the component units be separated into blended or discretely presented units for reporting purposes. The following criteria were used in determination of blended component units: appointment of the governing board and fiscal dependence. Although legally separate entities, blended component units are, in substance, part of the City's operations. Therefore, they are reported as part of the primary government. Discretely presented component units are reported in a separate column in the basic financial statements to emphasize that they are legally separate from the City. Blended Component Units Following are descriptions of legally separate component units for which the City is financially accountable that are blended with the Primary Government. The governing bodies of these component units are substantially the same as the City. The Palm Desert Redevelopment Agency (Agency) was established October 24, 1974, pursuant to California Health and Safety Code Section 33000 entitled "Community Redevelopment Law." The purpose of the Agency is to prepare and execute plans for the improvement, rehabilitation and redevelopment of blighted areas within the limits of the City. The Agency's transactions are reported in the governmental fund financial statements as special revenue, debt service, and capital projects funds. See independent auditors' report. - 33 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 l. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): a. Description of the Reporting Entity (Continued): Blended Component Units (Continued) The Palm Desert Housing Authority (Housing Authority) was established by the City Council in January 1998, and is partly responsible for the administration of providing affordable housing in the City. The Housing Authority transactions are reported in the governmental fund financial statements under other governmental funds. The Palm Desert Financing Authority (Financing Authority) was formed on January 26, 1989. The purpose of the Financing Authority is to issue debt and loan the proceeds to the City and Agency. The Financing Authority's capital related transactions are reported in the governmental fund financial statements in the capital projects funds, and the collection of assessments and payments of debt service is recorded in the fiduciary funds. The City Council of Palm Desert is the governing body for the Agency, Housing Authority and Financing Authority. The financial statements of the Agency can be obtained at the administrative offices of the City. Separate financial statements are not issued for the Housing Authority and Financing Authority. Discretely Presented Component Unit The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on February 25, 1997. The purpose of the Corporation is to lease, operate and manage a restaurant and bar in the Desert Willow Golf Course in Palm Desert, California. The Board of Directors of the Corporation appoints an executive director to administer operations. The Corporation is in a separate column to emphasize that it is legally separate from the City and is financially accountable to the City. The two-member board governing the Corporation is appointed by the City Council, and the City has authority to control the Corporation's budget. Complete financial statements of the Component Unit can be obtained from the City's administrative offices. See independent auditors' report. - 34 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Basis of Presentation: Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Expenses reported for functional activities include allocated indirect expenses. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fund Financial Statements The accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. See independent auditors' report. - 35 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Basis of Presentation (Continued): Fund Financial Statements (Continued) A fund is considered major if it is the primary operation fund of the City or meets the following criteria: a. Total assets, liabilities, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10%of the corresponding total for all funds of that category or type; and b. Total assets, liabilities, revenues or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5% of the corresponding total for all governmental and enterprise funds combined. c. The government has determined that a fund is important to the financial statement user. The funds of the financial reporting entity are described below: Governmental Fund Types General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term obligation principal, interest and related costs. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. See independent auditors' report. - 36 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Basis of Presentation (Continued): Fund Financial Statements (Continued) The funds of the financial reporting entity are described below (Continued): Proprietary Fund Types Enterprise Funds - The Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the City Council is that the costs (expenses including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. The Primary Government's Enterprise funds consist of the Parkview Office Complex and the Desert Willow Golf Course, which are operated by a management company. The Component Unit's Enterprise fund consists of the Palm Desert Recreational Facilities Corporation. Internal Service Funds - The Internal Service Fund accounts for financial transactions related to replacement of City-owned vehicles and equipment. These services are provided to other departments or agencies of the City on a cost reimbursement basis. Fiduciary Fund Type A�encv Funds - These funds are used to account for assets held by the City in a custodial capacity as a trustee or as an agent. These assets include deposits placed with the City by developers, individuals and groups to obtain future services, as well as deposits from assessment district's property owners. These deposits are reduced by payments and/or refunds to individuals or entities at some future time. The City's Retiree Service Stipend Fund is used to account for assets held to pay for the retiree service stipend. Agency funds are custodial in nature and do not involve measurement of results of operations. See independent auditors' report. - 37 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Basis of Presentation (Continued): Fund Financial Statements (Continued) The major funds are as follows: Governmental Funds The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax collected within the City for upgrading fire protection and prevention. Its use is restricted to obtaining, furnishing, operating and maintaining fire protection and prevention services (currently under contract with Riverside County Fire Department) equipment or apparatus. This fund is reported as a major fund because the tax collected is a voter approved measure. The RDA Low Income Housin� Special Revenue Fund is used to account for the tax increment set aside to be spent on projects that benefit low and moderate income families. The Redevelopment A�encv Financing Authoritv Debt Service Fund is used to account for the resources and payment of the debt issued by the Palm Desert Financing Authority and loaned to the Redevelopment Agency. The Redevelonment A�ency Debt Service Fund is used to account for resources and payments of debt issued by the Redevelopment Agency. The Redevelopment Agencv Canital Projects Fund is used to account for the financial resources to be used for the acquisition or construction of major capital facilities in the Palm Desert Redevelopment Agency. Proprietary Fund The Desert Willow Golf Course Fund is used to account for the fees collected and expenses incurred in connection with operating the municipal golf course in the City of Palm Desert. See independent auditors' report. - 38 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 l. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): c. Measurement Focus and Basis of Accounting: Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government-wide Statement of Net Assets and the Statement of Activities, both governmental and business-like activities are presented using the economic resources measurement focus. The accounting objectives of the economic measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate: 1. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. 2. The proprietary fund utilizes an "economic resources" measurement focus. Proprietary fund equity is classified as net assets. 3. Agency funds are not involved in the measurement of results of operations; therefore, measurement focus is not applicable to them. Basis of Accounting In the government-wide Statement of Net Assets and Statement of Activities, both governmental and business-like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. See independent auditors' report. - 39 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): c. Measurement Focus and Basis of Accounting (Continued): Basis of Accounting (Continued) In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. Revenues that are susceptible to accrual include property taxes and special assessments that are levied for and due for the fiscal year and collected within 60 days after year-end. Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as governmental fund type revenues when received in cash because they are not generally measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the accounting period in which they became both measurable and available to finance expenditures of the fiscal period. Grant funds and reimbursements of expenses under contractual agreements are reported in governmental fund types and are recorded as a receivable when earned rather than when susceptible to accrual. Generally this occurs when authorized expenditures are made under the grant program or contractual agreement. Expenditures are recognized when the fund liability is incurred, if ineasurable, except for unmatured interest on long-term debt, which is recognized when due. Interfund activity in the amount of $6,983,630 has been eliminated from the general government function for the government-wide financial statements except for charges between the government's Desert Willow Golf Course and Parkview Office Complex funds and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues for the various functions considered. The accrual basis of accounting is followed by the proprietary fund. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic assets are used. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary fund's principal ongoing operations. The principal revenue of the Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges to customers for use of the golf course and rental fees. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. See independent auditors' report. -40 - CITY OF PALM DESERT NOTES TO BASIC FiNANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): c. Measurement Focus and Basis of Accounting (Continued): Basis of Accounting (Continued) Private-sector standards of accounting and financial reporting issued prior to December 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private- sector guidance. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, and then unrestricted resources as they are needed. d. Capital Assets and Depreciation: Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, traffic signals, drainage systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the City as assets with an initial cost of more than $500 and an estimated life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. In accordance with GASB Statement No. 34, the City has reported general infrastructure assets acquired in prior and current years. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives: Buildings 40 years Improvements other than buildings 20 years Machinery and equipment 5 to 8 years Infrastructure 20 to 75 years See independent auditors' report. -41 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): e. Appropriations Limit: Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or other refund arrangements. For the fiscal year ended June 30, 2008, proceeds of taxes did not exceed appropriations. £ Investments: Investments are stated at fair value (quoted market price or the best available estimate thereo�. g. Cash and Investments: For purposes of the statement of cash flows, the City has defined cash and investments to include cash on hand, demand deposits, investments held in various instruments, and investments held in the California Local Agency Investment Fund (LAIF) and California Asset Management Program (CAMP). h. Employee Compensated Absences: It is the government's policy to permit employees to accumulate earned but unused vacation and sick leave (compensated absences). Vacation pay and sick leave, which are expected to be liquidated with expendable available resources, are reported as expenditure and liability of the governmental 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 $2,883,224, which are not expected to be liquidated with expendable available financial resources, are reported as long-term liabilities. i. Property Held for Resale: The Agency purchased land within the Agency's project area. The land held for resale is recorded in the Redevelopment Agency Low Income Housing Special Revenue Fund as property held for resale at the lower of acquisition cost or net realizable value. At June 30, 2008, the cost of the property held for resale for various housing properties in Palm Desert totaled $25,000. See independent auditors' report. - 42 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): j. Inventories, Prepaid Costs and Deposits: Inventory in the amount of $240,769 and $50,917 for the Desert Willow Golf Course Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities Corporation (Component Unit), respectively, are stated at lower of cost or market with cost determined using the weighted average cost method. Inventory in the amount of $47,906 in the general fund is stated at cost. Inventory is recorded as an expenditure when consumed rather than purchased. Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid costs in the government-wide and fund financial statements. The Agency has a $571,281 deposit with Coachella Valley Water District for future sewer connection charges at the Indian Springs Mobile Home Park and $51,230 deposited in escrow to purchase various properties. k. 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 Installment March 1 - 2nd Installment Delinquent date: December 10 - 1 st Installment April 10 - 2nd Installment Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas prescribed by state statutes. The City accrues only those taxes, which are received within 60 days after the year-end. The City is a participant in the Teeter Plan under the California Revenue and Taxation Code. The County of Riverside has responsibility for the collection of delinquent taxes and the City receives 100%of the levy. See independent auditors' report. -43 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): 1. Restricted Assets: Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate trustee bank accounts and their use is limited to applicable bond covenants. In addition, funds have been restricted for future capital improvements by City resolution. m. Use of Estimates: The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and, accordingly, include amounts that are based on management's best estimates and judgments. The financial statements include estimates for the value of the capital assets (infrastructure), depreciation expense, fair value of investments, for the amounts reported for the schedule of funding progress for the Defined Benefit Plan (Note 9) and actuarial accrued liability for the other post-employment benefits (Note 13). Accordingly, actual results could differ from the estimates. 2. CASH AND INVESTMENTS: As of June 30, 2008, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 466,543,025 Business-type activities 5,278,483 Component unit 404,029 Fiduciary funds 24,167.777 Total Cash and Investments $ 496.393314 Cash and investments at June 30, 2008 consisted of the following: Demand accounts $ 9,013,495 Petty cash 18,600 Escrow deposits 1,420,404 Investments 485,940,815 Total Cash and Investments 496.393.314 See independent auditors' report. - 44 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 2. CASH AND INVESTMENTS (CONTINUED): The City of Palm Desert maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments. Deposits At June 30, 2008, the carrying amount of the City's deposits was $9,013,495, and the bank balance was $9,771,622. The $(758,127) difference represents outstanding checks and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure an Entity's deposits by pledging government securities with a value of 110% of an Entity's deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $100,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of,the local governmental agency. Investments Under provision of the City's investment policy and in accordance with the California Government Code,the following investments are authorized: • United States Treasury bills, notes, bonds or certificates of indebtedness • United States government-sponsored enterprise obligations, participations or other instruments • Banker's Acceptances issued by commercial banks • Commercial Paper issued by general corporations • Negotiable Certificates of Deposits, issued by a nationally or state-chartered bank, a savings association, a federal association or by a state-licensed branch of a foreign bank • Time Certificates of Deposit issued by qualified public depositories. See independent auditors' report. - 45 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 2. CASH AND INVESTMENTS (CONTINUED): Investments (Continued) • Repurchase Agreements sold by authorized brokers • Medium-Term Notes issued by corporations organized and operating in the United States, or by depository institutions operating in the United States and licensed by the United States or by any state • Money Market Mutual Funds that are registered with the SEC under the Investment Act of 1940 • State of California Local Agency Investment Fund (LAIF) that is managed by the State Treasurer's Office • Structured Notes in the form of callable securities or "STRIPS" issued by the United States Treasury, Federal Agencies or government-sponsored enterprises • Asset-Backed Commercial Paper issued by special purpose corporations, trusts or limited liability companies • Local Government Investment Pools GASB Statement No.31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Credit Risk The City Treasurer is authorized under state and municipal law to invest in various types of securities that meet specified credit quality standards, based upon credit risk ratings assigned by Standard and Poors (S&P) or by Moody's Investor Services (Moody's). Permissible City investments include medium-term notes that are rated "A" or higher at time of purchase; commercial paper that is rated"A-1+" or the equivalent; money market mutual funds that are rated "AAA"; and U.S. Government and Federal Agency securities (the quality of U.S. Treasury securities is not analyzed since they are not deemed to have credit risk). Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required, when applicable, by the California Government Code, the City's investment policy, or debt agreements, and the Standard and Poor's rating as of year-end for each investment type. See independent auditors' report. - 46 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 2. CASH AND INVESTMENTS (CONTINUED): Credit Risk(Continued) Total Minimum as of Legal Investment Tvpe June 30.2008 Rating___ AAA Other Unrated California Local Agency Investment Fund $ 45,037 N/A $ - $ - $ 45,037 California Asset Management Program 96,578,844 AAA 96,578,844 - - U.S.Government-Sponsored Enterprise Securities 87,150,930 N/A 87,150,930 - - Medium-term corporate notes 104,618,758 A 12,174,590 92,444,168 - Held by Fiscal Agent: Money market mutual funds 197,547,246 AAA 197,547,246 - - Total 485.940.815 � 393.451.610 92.444.168 $ 45 037 N/A-Not Applicable The actual ratings for the Medium Term Corporate Notes (MTN) are as follows: Other: AA $ 33,457,952 AA- 39,704,371 A+ 19,281.845 $ 92.444.168 Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for the investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2008, none of the City's deposits or investments were exposed to custodial credit risk. See independent auditors' report. - 47 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 2. CASH AND INVESTMENTS (CONTINUED): 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, 2008, in accordance with GASB Statement No. 40, if the City has invested more than 5% of its total investments in any one issuer then they are exposed to concentration of credit risk. The following investments are considered to be exposed to concentration credit risk. Issuer Type of Investment Amount Federal Home Loan Bank(FHLB) U.S. Government-Sponsored Enterprise Securities $ 34,797,872 Citigroup Medium-Term Corporate Note 26,157,366 Wells Fargo Bank Medi.um-Term Corporate Note 25,891,330 Investments guaranteed by the U.S. government, investments in mutual funds and external investment pools are excluded from this requirement. The City's Investment policy imposes the following restrictions on the maximum percentage it can invest in a single type of investment. Portfolio Single Issuer Issuer Maximum Maximum United States Treasury Bills,Notes, Bonds 100% N/A U.S. Government-Sponsored Enterprise Securities 100% 30% Banker's Acceptances 40% 30% Commercial Paper 25% 10% Negotiable Certificates of Deposit 30% N/A Time Certificates of Deposit 15% N/A Repurchase Agreements 20% N/A Medium-Term Corporate Notes 30% 15% Money Market Mutual Funds 20% N/A Local Agency Investment Fund(LAIF) $40M/Acct N/A Structured Notes (STRIPS) 20% N/A Asset-Backed Commercial Paper 25% N/A Local Government Investment Pools 30% N/A N/A -Not Applicable See independent auditors' report. - 48 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 2. CASH AND INVESTMENTS (CONTINUED): Concentration of Credit Risk(Continued) The City's policy is more conservative than state law, which has no issuer concentration limits on federal agency debt. The federal agency debt that the City purchases have implied credit ratings of "AAA/Aaa". Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that the City shall not invest in securities with maturities exceeding five years and the weighted-average maturity of the City portfolio shall not exceed 540 days. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2008,the City had the following investments and maturities: Less Than 6 months- 1 year- 3 years- Fair 6 Months 1 vear 3 vears 5 vears Value California Local Agency [nvestment Fund $ 45,037 $ - $ - $ - $ 45,037 California Asset Management Program 96,578,844 - - - 96,578,844 U.S.Government-Sponsored Enterprise Securities 31,049,944 - 56,100,986 - 87,150,930 Medium-term corporate notes 8,010,139 22,163,692 66,430,333 8,014,594 104,618,758 Held by Fiscal Agent: Money market mutual funds 197,547,246 - - - 197.547,246 $333.231.210 $ 22.163.692 122.531319 $ 8.014.594 485.940.815 Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. See independent auditors' report. - 49 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 2. CASH AND INVESTMENTS (CONTINUED): Investment in California Asset Management Program The California Asset Management Program (CAMP) is a public joint powers authority which provides California Public Agencies with investment management services for surplus funds and comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax-exempt financings. The CAMP currently offers the Cash Reserve Portfolio, a short-term investment portfolio, as a means for Public Agencies to invest these funds. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants may also establish individual, professionally managed investment accounts (Individual Portfolios) by separate agreement with the Investment Advisor. Investments in the Pools and Individual Portfolios are made only in investments in which Public Agencies generally are permitted by California statute. The CAMP may reject any investment and may limit the size of a Participant's account. The Pool seeks to maintain, but does not guarantee, a constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers. Requests for wire transfers must be made by 9:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the Pool's underlying portfolio. 3. RECEIVABLES: Primary Government's Governmental Funds Notes and Loans Receivable: The City has a note for $1,000,000 to Friends of the Desert Mountains for the sale of land. Friends of the Desert Mountains agreed to repay the note within 36 months from the date of issue, January 9, 2006, with interest accruing at 5.0% per annum. As of June 30, 2008 the outstanding balance of the note was $1,000,000. On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the Bonds will be used to finance the construction of the utility 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 annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and reports a receivable in the general fund that corresponds to the outstanding principal on the bonds. As of June 30, 2008, the receivable balance was $2,748,000. See independent auditors' report. - 50 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 3. RECENABLES (CONTINUED): Primary Government's Governmental Funds(Continued) Notes and Loans Receivable (Continued): On April 21, 2003, the Agency entered into a loan agreement with The Regents of the University of California, on behalf of its Riverside Campus, to loan various amounts over a period of time, not to exceed an aggregate amount of $2,000,000. Proceeds of the loan are to be used for capital improvements at the University's Riverside Campus. The outstanding principal balance and interest on the note is due in five annual payments beginning on a future date yet to be determined. As of June 30, 2008,the amount outstanding on the loan is $2,000,000. The City has $31,092 and the Agency has $35,931 in home improvement loans. Payments of interest and principal are due monthly on these loans. The City entered into several individual loan agreements with residents of the Highlands Utility Undergrounding Assessment District No. 04-01. The loans were issued by the City to pay off the principal of the respective properties assessment. In turn, the residents agreed to pay to the City the full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the loan along with all accrued interest is due and payable at the earliest of September 2, 2036 or any change in ownership of the property. At June 30, 2008 the total receivable from the Highlands Deferral Loan Program is $231,176. A loan receivable for the construction of a multi-family affordable housing development dated June 14, 2001, with a balance of$7,659,437 is due from the Palm Desert Development Company. The loan is secured by a Deed of Trust with assignment to property, rent and fixtures on the housing development located in Palm Desert. Interest is earned and due annually at a rate of 1% per annum from the date on which the final certificate of occupancy is issued. Principal on the loan is based on the applicable agency's percentage of positive net cash flow derived from the operations of the Development. The Agency has issued loans for several other projects, all of which are secured by a deed of trust. A valuation allowance equal to the loan balance has been recognized where there is a significant possibility that these loans either become uncollectible or forgiven by the Agency at a future date if all the terms of the loans have been met. See independent auditors' report. - 51 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 3. RECEIVABLES (CONTINUED): Primary Government's Governmental Funds (Continued) Notes and Loans Receivable (Continued): Detailed information for these loans is as follows: Loan Balance Interest Maturity Special Provisions Project Name Outstanding Rate Date Secured By of Loan Self-Help $ 429,000 7.25% 30 years Deed of Trust Loan balance and interest Housing Program or 2024 due upon maturity, unpaid balance of loan or interest will bear an interest rate of 12%. Home Improvement 98,353 N/A N/A Deed of Trust Loan is payable upon Loans change or transfer of title, refinancing or upon the death of the borrower. Portola Palms 176,965 3.00% 30 years Deed of Trust Loan balance and interest Mobilehome Park from date will be forgiven at of loan maturity if debtor does not breach the terms and conditions of either the unit regulatory agreement or note. Desert Rose 2,200,169 3.00% 30 years Deed of Trust Loan will be forgiven at from date maturity unless the debtor of loan is in violation of the unit regulatory agreement or the deed of trust. See independent auditors' report. - 52 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 3. RECENABLES (CONTINUED): Primary Government's Governmental Funds(Continued) Notes and Loans Receivable (Continued): Detailed information for these loans (Continued): Loan Balance Interest Maturity Special Provisions Project Name Outstanding Rate Date Secured By of Loan Falcon Crest $ 3,204,094 3.00% 45 years Deed of Trust Loan is payable upon from date change or transfer of title, of loan refinancing or upon the death of the borrower. Acyuisition, 190,510 3.00% 30 -45 Deed of Trust Loan balance and interest Rehabilitation, years Assignment N'�ll be forgiven at maturity if debtor does not Resale from date of Rent breach the terms and of loan conditions of either the unit regulatory agreement or note. 4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS: The composition of interfund balances as of June 30, 2008, was as follows: Due To/From Other Funds Due From Due To Amount General Fund Desert Willow Golf Course $ 1,801 Other Governmental Funds 216,455 $ 218 256 The General Fund receivable of $1,801 to Desert Willow Golf Course was to provide temporary funds for operations and $216,455 to the Gas Tax Fund was for uncollected taxes held by the State of California. See independent auditors' report. - 53 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED): The composition of interfund balances as of June 30, 2008, was as follows: Advances To/From Other Funds Advances From Advances To Amount General Fund RDA Debt Service Fund $ 9,236,000 Other Governmental Funds RDA Debt Service Fund 13,419,000 $ 22.655.000 The advances from the General Fund and Other Governmental Funds were made to the Redevelopment Agency for capital improvements. Due To/From Component Unit Due From Component Unit Major Funds: General Fund $ 285,000 Desert Willow Golf Course 570,428 $ 855,428 The receivable by the General Fund is for rent owed by the Palm Desert Recreational Facilities Corporation (PDRFC), and the receivable by the Desert Willow Golf Course represents funds loaned to PDRFC for operations. See independent auditors' report. - 54 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED): The composition of interfund balances as of June 30, 2008, was as follows: Interfund Transfers Transfers In RDA Prop A Low Income RDA Fire Tax Hosing Financing RDA Special Special Authority Capital Other General Revenue Revenue Debt Service Projects Nonmajor Fund Fund Fund Fund Fund Funds Total Transfers Out: General Fund $ - $ 1,650,000 $ - $ - $ - $ 492,660 $ 2,142,660 RDA Low [ncome Housing - - - 9,021,007 507,165 3,492,852 13,021,024 RDA Debt Service - - 18,141,322 20,832,781 1,187,692 - 40,161,795 RDA Capital Projects 47,539 - 614 - 600,844 - 648,997 Other Governmental Funds 1,054,071 - - - - 1,695,089 2,749,160 OY'fice Complex Parkview Enterprise Fund - - - - - 1,000,000 1,000,000 Totals $ 1,101,610 $ 1,650,000 $ 18,141,936 $ 29,853,788 $ 2,295,701 $ 6,680,601 $ 59,723,636 See independent auditors' report. - 55 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 4. INTERFUND RECENABLES, PAYABLES AND TRANSFERS (CONTINUED): Interfund Transfers (Continued) Transfers are used to: L 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. See independent auditors' report. - 56 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 5. CAPITAL ASSETS: A summary of changes in capital assets at June 30, 2008,was as follows: Primary Government- Governmental Activities Balance at July 1,2007 Balance at (As Restated) Balance at June 30,2007 Adjustments (See Note 10) Transfers Additious Deletions June 3Q 2008 Capita(assets,not being depreciated: Land $ 11Q657,921 $ 5,627,304 $ ll6,285,225 $ - $ 2,199,220 $ (135,690) $ 118,348,755 Right-of-way 109,694,446 - 109,694,446 - IQ189,864 - 119,884,310 Co�aVuction-in-progress 75,63Q219 - 75,630,219 (54,969,212) 13,500,120 (2,359,444) 31,801,683 Total capital asse[s,not being depreciated 295,982,586 5,627,304 301,609,890 (54,969,212) 25,889,204 (2,495,134) 27Q034,748 Capital assets,being depreciated: Buildings 9Q419,563 - 9Q419,563 14,111,868 3,785,406 - 108,316,837 Improvements other than buildings 28,402,435 - 28,402,435 14,740,242 3,435,146 - 46,577,823 Machinery and equipment 7,241,246 - 7,241,246 (43,687) 844,081 (236,249) 7,805,391 Infrastructure 137,370,434 5,769,284 143,139,718 26,035,623 48,502,157 - 21'7,677,498 Eqwpment-Internal service fimd 4,662,343 - 4,662,343 125,166 25,797 - 4,813,306 Total capital assets, being depreciated 268,096,021 5,769,284 273,865,305 54,969,212 56,592,587 (236,249) 385,19Q855 Less accumidated depreciation for: Binldings (30,769,773) - (3Q769,773) - (2,517,239) - (33,287,O12) [mprovements o[her [han buildings (11,160,138) - Q 1,160,138) - (1,967,315) - (13,127,453) Machinery and equipment (5,663,932) - (5,663,932) - (485,505) 235,006 (5,914,431) [nfrastructure (52,038,968) - (52,038,968) - (3,603,489) - (55,642,457) Equipment-Intemal service fund (3,054,088) - (3,054,088) - (387,665) - (3,441,753) Total accumulated depreciation (102,686,899) - (102,686,899) - (8,961,213) 235,006 (1ll,413,106) Capital assets,bei�g depreciated,net 165,409,122 5,769,284 171,178,406 54,969,212 47,631,374 (1,243) 273,777,749 Capital assets,net- Govemmental Activitres $ 461,391,708 $ l 1,396,588 $ 472,788,296 $ - $ 73,520,578 $ (2,496,377) $ 543,812,497 See independent auditors' report. - 57 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 5. CAPITAL ASSETS (CONTINUED): A summary of changes in capital assets at June 30, 2008, was as follows: Primary Government-Business-type Activities Balance at Balance at Balance at June 30,2007 Adjushnents July 1,2007 Transfers Additions Deletions June 30,2008 Capital assets,not being depreciated: Land $ 52,S10,900 $ - $ 52,510,900 $ - $ 88,622 $ - $ 52,599,522 Total capital assets,not being depreciated 52,510,900 - 52,S1Q900 - 88,622 - 52,599,522 Capital assets,being being depreciated: Buildings and unprovements 13,043,921 - 13,043,921 - 282,264 - 13,326,185 Machineryandequipment 5,833,165 - 5,833,165 - 24Q245 (272,890) 5,80Q520 Total capital assets, being depreciated 18,877,086 - 18,877,086 - 522,509 (272,890) 19,L26,705 Less accumulated depreciation For: Buildings and vnproveme�ts (2,971,241) - (2,971,241) - (456,633) - (3,427,874) Machinery and equipment (3,278,288) - (3,278,288) - (894,004) 271,377 (3,900,915) Total accumulated depreciation (6,249,529) - (6,249,529) - Q,35Q637) 271,377 (7,328,789) Capital assets,being depreciated,net 12,627,557 - 12,627,557 - (828,128) (1,513) 11,797,916 Capital assets,net- Business-typeActivities $ 65,138,457 $ - $ 65,138,457 $ - $ (739,506) $ (1,513) $ 64,397,438 See independent auditors' report. - 58 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 5. CAPITAL ASSETS (CONTINUED): Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government $ 2,797,934 Public safety 182,266 Public works 4,018,153 Parks, recreation and culture 1,575,195 Depreciation expenses for internal service funds is charged to various functions based on usage of capital assets 387,665 Total depreciation expense - governmental activities $ 8.961.213 Business-type Activities: Desert Willow Golf Course $ 1,137,840 Parkview Office complex 212,797 Total depreciation expense - business-type activities $ 1350.637 See independent auditors' report. - 59 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES: The following is a summary of long-term liability transactions of the City for the year ended June 30, 2008: Primary Government- Governmental Activities Balance Balance Due Within July 1,2007 Additions Reductions June 30,2008 One Year Special assessment debt with government commitment $ 2,783,000 $ - $ (35,000) $ 2,748,000 $ 46,000 Tax allocation bonds 421,819,894 1,484,806 (]0,610,000) 412,694,700 12,610,000 Notes payable 613,535 - (122,707) 490,828 122,707 Claims and judgments payable 537,001 218,647 (314,335) 441,313 320,000 Compensated absences payable 2,532,053 1,868,277 (1,517,106) 2,883,224 700,000 Subtotal 428,285,483 3,571,730 (12,599,148) 419,258,065 13,798,707 Add:Unamortized bond premium 8,326,646 - (475,703) 7,850,943 - Less:Deferred amount on refunding (1,728,965) - 122,715 (1,606,250) - Total $434,883,164 $ 3,571,730 $(12,952,136) $425,502,758 $ ]3,798,707 Debt service payments for the special assessment debt with government commitment, tax allocation bonds and notes payable are made from debt service funds. Primary Government—Business-type Activities: Capitalleases $ 2,181,546 $ - $ (598,764) $ 1,582,782 $ 627,649 See independent auditors' report. - 60 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Special Assessment Debt with Government Commitment Hi��hlands Under�roundinQ Assessment District No 04-01 Limited Obli�ation Improvement Bonds. Series 2006 On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the Bonds will be used to finance the construction of the utility 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. In the event that assessment collections are insufficient to pay the debt service, the City has a potential obligation to provide additional funds to pay the debt service, therefore these bonds are reported as special assessment debt with government commitment. Bond maturities begin September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record of the bonds. The future debt service requirements on the Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows: Year Ending June 30, Principal Interest Total 2009 $ 46,000 $ 136,187 $ 182,187 2010 48,000 134,306 182,306 2011 50,000 132,259 182,259 2012 52,000 130,065 182,065 2013 55,000 127,711 182,711 2014 - 2018 310,000 597,753 907,753 2019 - 2023 393,000 512,438 905,438 2024 - 2028 504,000 399,235 903,235 2029 - 2033 645,000 252,376 897,376 2034 - 2037 645,000 68,572 713,572 $ 2,748,000 $ 2,490,902 $ 5,238,902 See independent auditors' report. - 61 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds A summary of changes in tax allocation bonds at June 30, 2008, was as follows: Balance Additions/ Repayments/ Balance Due Within July 1,2007 Accretion Reduc[ions June 3Q 2008 One Yeaz Project Area No.1 2002A TARRBs,$22,070,000 $ 22,070,000 $ - $ - $ 22,070,000 $ - 2003 TARBs,$19,OOQ000 19,OOQ000 - - 19,OOQ000 - 2004A TARRBs,$24,945,000 22,655,000 - (85Q000) 21,805,000 1,030,000 2006 A&B TARBs,$62,32Q000 6Q105,000 - (1,965,000) S8,140,000 2,075,000 2007A TARRBs,$32,60Q000 32,600,000 - (2,130,000) 30,47Q000 2,410,000 1995A TARRBs,$6,305,000 1,235,000 - (600,000) 635,000 635,000 Project Area No.2 2002A TARRBs,$17,310,000 14,680,000 - (65Q000) 14,030,000 675,000 2003 TARBs,$15,745,000 15,745,000 - - 15,745,000 - 2006 A-D TARBs,$67,618,213 68,554,280 1,024,695 (940,000) 68,638,975 1,320,000 Project Area No.3 2003 TARBs,$4,745,000 4,315,000 - (95,000) 4,22Q000 1OQ000 2006 A-C TABs,$15,059,526 15,191,608 194,507 - 15,386,1IS 25,000 Project Area No.4 1998 TARBs,$11,02,000 8,355,000 - - 8,355,000 - 2001 TARBs,$15,695,000 14,795,000 - (285,000) 14,510,000 310,000 2006A TARBs,$19,273,089 19,509,006 265,604 - 19,774,610 20Q000 Combined Low and Moderate Housiog 1998 TARBs,$48,760,000 5,725,000 - (655,000) 5,070,000 685,000 2002 TARBs,$12,1OQ000 11,130,000 - (255,000) IQ875,000 265,000 2007TARBs,$86,155,000 86,155,000 - (2,185,000) 83,97Q000 2,880,000 Total $ 421,819,894 $ 1,484,806 $ (1Q610,000) $ 412,694,700 $ 12,61Q000 Tax Allocation bonds used for capital improvements are special obligations of the Agency and the Financing Authority (a component unit of the Agency) and are secured by an irrevocable pledge of tax revenues and other funds as provided under the Bond Resolution. The bonds and any interest thereon are not a debt of the City, the State of California or any of its political subdivisions, and neither the City, the State of California nor any of its political subdivisions is liable on the bonds, nor in any event shall the bonds and interest thereon be payable out of any funds or properties other than those provided under the Bond Resolution. The Agency purchased insurance from Ambac Assurance Corporation (Ambac) and MBIA Insurance Corporation (MBIA) for the purpose of enhancing the creditworthiness of the bonds. Since the date of purchase, Ambac and MBIA's ratings by Moody's Investors Services have been downgraded from"AAA"to "Baal", and"AAA" to"Baal", respectively. See independent auditors' report. - 62 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) Pursuant to California Health and Safety Code Section 33670, the total number of dollars of taxes which may be divided and allocated to the Agency for Project Area No. 1 is $500,000,000, and it is estimated that the cap will be reached in the year 2022. Project Area No. 4's total is $600,000,000, and it is estimated that this cap will be reached in the year 2034. The result of reaching the cap limits would preclude the Agency from receiving taxes and using the taxes to pay debt in these project areas,thereby requiring the Agency to call bonds prior to those dates. 2002 Series A Tax Allocation Refundin�Revenue Bonds (Proiect Area No. l, as amended) In March 2002, the Palm Desert Financing Authority issued $22,070,000 of Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended) 2002 Series A. The proceeds from the bonds were loaned to the Palm Desert Redevelopment Agency. A portion of the proceeds of the loan was used to prepay the prior loan, which affected the current refunding of a like portion of the prior bonds. The remainder was used to fund various redevelopment capital projects of the Agency in Project Area No. 1. The bonds consist of$10,905,000 term bonds at 5.00% due April 1, 2025, and $11,165,000 term bonds at 5.10% due April l, 2030. Interest is payable semi-annually on April 1 and October 1. Mandatory sinking fund redemptions begin April 1, 2024. The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. l, as amended) are as follows: Year Ending June 30, Principal Interest Total 2009 $ - $ 1,114,666 $ 1,114,666 2010 - 1,114,666 1,114,666 2011 - 1,114,666 1,114,666 2012 - 1,114,666 1,114,666 2013 - 1,114,666 1,114,666 2014 - 2018 - 5,573,330 5,573,330 2019 - 2023 - 5,573,330 5,573,330 2024 - 2028 17,270,000 3,384,928 20,654,928 2029 - 2030 4,800,000 370,260 5,170,260 $ 22,070,000 $ 20,475,178 $ 42,545,178 See independent auditors' report. - 63 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds(Continued) 2003 Series Tax Allocation Revenue Bonds (Proiect Area No. 1) In July 2003, the Financing Authority issued $19,000,000 Tax Allocation Revenue Bonds (Project Area No. 1, as amended) 2003 Series. The proceeds of the bonds were disbursed to make a loan to the Redevelopment Agency. The Agency will use the proceeds of the loan to fund various redevelopment capital projects of the Agency and to finance costs of issuance of the bonds. The bonds bear interest at 5.0%. They consist of$7,050,000 serial bonds with principal payments due in 2026 and 2027, and $11,950,000 term bonds due in 2030. Interest will be payable on April 1 and October 1 of each year beginning April 1, 2004. Principal payments will be on April 1 of the years stated above. The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project Area No. 1) are as follows: Year Ending June 30, Principal Interest Total 2009 $ - $ 950,000 $ 950,000 2010 - 950,000 950,000 2011 - 950,000 950,000 2012 - 950,000 950,000 2013 - 950,000 950,000 2014 - 2018 - 4,750,000 4,750,000 2019 - 2023 - 4,750,000 4,750,000 2024 - 2028 10,840,000 4,225,500 15,065,500 2029 - 2030 8,160,000 617,000 8,777,000 $ 19,000,000 $ 19,092,500 $ 38,092,500 See independent auditors' report. - 64 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 ' 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 2004 Series A Tax Allocation Refundin�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 fram the bonds were loaned to the Palm Desert Redevelopment Agency to refinance a portion of the Agency's obligations from 1995, and to fund various redevelopment capital projects within or of benefit to the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable semi-annually on April 1 and October 1. Principal payments will be made annually beginning April l, 2005. The future debt service requirements on the 2004 Series A Tax Allocation Revenue Bonds (Project Area No. 1, as amended) are as follows: Year Ending June 30, Principal Interest Total 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 1,050,000 876,213 1,926,213 2013 1,155,000 828,963 1,983,963 2014 - 2018 6,520,000 3,358,600 9,878,600 2019 - 2023 6,460,000 1,715,250 8,175,250 2024 - 2025 3,515,000 238,750 3,753,750 $ 21,805,000 $ 9,944,965 $ 31,749,965 See independent auditors' report. - 65 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) Tax Allocation Revenue Bonds (Proiect Area No 1 as Amended) 2006 Series A and Series B Taxable 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 $24,540,000 of Tax Allocation Refunding Revenue 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 fund various redevelopment capital projects within or of benefit to Project Area No. l, 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 refinance the Agency's obligations incurred under a loan agreement entered into in 1997, pay costs of issuance and pay the premium on a Reserve Fund surety bond. The Series A bonds consist of $26,415,000 Serial Bonds with interest rates ranging from 4.70% to 5.25% 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 l, 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 l. Bond maturities begin April 1, 2007, and 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. The future debt service requirements on the 2006 Series A and Series B Tax Allocation Revenue Bonds (Project Area No. l, as amended) are as follows: Year Ending June 30, Principal Interest Total 2009 $ 2,075,000 $ 3,092,327 $ 5,167,327 2010 2,195,000 2,974,259 5,169,259 2011 2,320,000 2,848,266 5,168,266 2012 2,450,000 2,714,634 5,164,634 2013 2,595,000 2,573,269 5,168,269 2014 -2018 10,730,000 10,557,021 21,287,021 2019 - 2023 29,405,000 6,317,125 35,722,125 2024 - 2028 5,805,000 890,538 6,695,538 2029 -2030 565,000 40,613 605,613 $ 58,140,000 $ 32,008,052 $ 90,148,052 See independent auditors' report. - 66 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) Tax Allocation Refunding Revenue Bonds (Pro�ect Area No. 1, as amended) 2007 Series A On January 9, 2007, the Palm Desert Financing Authority issued $32,600,000 Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended) 2007 Series A. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency. The proceeds of the 2007 Loan will be used to refinance a portion of the outstanding obligations of the Redevelopment Agency, fund various redevelopment capital projects within the Palm Desert Redevelopment Agency Project Area No. 1, as amended, and pay the costs associated with the issuance of the bonds. The Series A bonds consist of$32,600,000 Serial Bonds with interest rates ranging from 3.50% to 5.00% payable semiannually on October 1 and April 1. Bond maturities begin April 1, 2008, and continue annualiy through 2018. The future debt service requirements on the 2007 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. l, as amended) are as follows: Year Ending June 30, Principal Interest Total 2009 $ 2,410,000 $ 1,416,825 $ 3,826,825 2010 2,640,000 1,320,425 3,960,425 2011 2,625,000 1,201,625 3,826,625 2012 2,870,000 1,083,500 3,953,500 2013 2,955,000 940,000 3,895,000 2014 - 2018 16,970,000 2,559,000 19,529,000 $ 30,470,000 $ 8,521,375 $ 38,991,375 1995 Series A Tax Allocation Revenue Refundin Bg onds In August 1995, the Palm Desert Financing Authority issued $6,305,000 in Tax Allocation Revenue Refunding Bonds 1995 Series A. The proceeds from the bonds were loaned to the Palm Desert Redevelopment Agency to provide funds to refund in advance $6,430,000 of the 1988 Tax Allocation Bonds. At June 30, 2008, the Authority has a cash reserve balance of$630,500 which covers the actual reserve requirement of$630,500. 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 l. See independent auditors' report. - 67 - CITY OF PALM DESERT NOTES TO BASIC FiNANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 1995 Series A Tax Allocation Revenue Refundin� Bonds (Continued) The future debt service requirements on the 1995 Series A Tax Allocation Revenue Refunding Bonds are as follows: Year Ending June 30, Principal Interest Total 2009 $ 635,000 $ 17,621 $ 652,621 2002 Series A Tax Allocation Refundin� Revenue Bonds(Proiect Area No. 2) In July 2002, the Palm Desert Financing Authority issued $17,310,000 of Tax Allocation Refunding Revenue Bonds (Project Area No. 2) 2002 Series A. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to prepay outstanding indebtedness and to fund various redevelopment capital projects within or of benefit to the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable semi- annually on February 1 and August 1. The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 2) are as follows: Year Ending June 30, Principal Interest Total 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 760,000 548,638 1,308,638 2013 795,000 509,763 1,304,763 2014 - 2018 4,565,000 1,971,064 6,536,064 2019 - 2023 5,820,000 752,388 6,572,388 $ 14,030,000 $ 5,603,072 $ 19,633,072 See independent auditors' report. - 68 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 2003 Series Tax Allocation Revenue Bonds (Proiect Area No. 2) In March 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency in Project Area No. 2. Interest rates on the bonds vary from 4.5% to 5.0% per annum payable semi-annually on February 1 and August 1, with principal maturing as follows: $ 875,000 Serial Bonds August 1, 2023 910,000 Serial Bonds August l, 2024 2,485,000 Term Bonds August 1, 2026 11,475,000 Term Bonds August l, 2033 The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project Area No. 2) are as follows: Year Ending June 30, Principal Interest Total 2009 $ - $ 769,006 $ 769,006 2010 - 769,006 769,006 2011 - 769,006 769,006 2012 - 769,006 769,006 2013 - 769,006 769,006 2014 - 2018 - 3,845,030 3,845,030 2019 - 2023 - 3,845,030 3,845,030 2024 - 2028 5,675,000 3,264,041 8,939,041 2029 - 2033 8,175,000 1,536,875 9,711,875 2034 1,895,000 47,375 1,942,375 $ 15,745,000 $ 16,383,381 $ 32,128,381 See independent auditors' report. - 69 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) Project Area No 2 Tax Allocation Refundin� Revenue Bonds 2006 Series A, Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B Revenue Bonds 2006 Series C and Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D On July 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 2 $41,340,000 Tax Allocation Refunding Revenue Bonds 2006 Series A, $1,567,118 Tax Allocation 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 loaned 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, fund various redevelopment capital projects 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 fund various redevelopment capital projects within 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 ranging from 4.00% to 5.00% payable semiannually on August 1 and February 1. Bond maturities begin August l, 2007, and continue annually through 2026. Term bonds in the amount of$8,225,000 carry an interest rate of 4.90% and mature August 1, 2031. Term bonds in the amount of $16,865,000 carry an interest rate of 5.125% and mature August 1, 2036. The Series B bonds consist of $1,567,118 Capital Appreciation Bonds with a reoffering yield ranging from 3.85%to 4.08%. Bond maturities begin April l, 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 begin August 1, 2010, and continue annually through 2026. Term bonds in the amount of$1,910,000 carry an interest rate of 4.90% and mature August l, 2031. Term bonds in the amount of $1,915,000 carry an interest rate of 5.00% and mature August 1, 2035. The Series D bonds consist of $16,936,095 Capital Appreciation Bonds with a reoffering yield ranging from 4.65% to 6.10%. Bond maturities begin August l, 2007, and continue annually through 2035. Each year the outstanding balance is increased for the accretion of interest associated with the bonds. The accreted interest at June 30, 2008 is $1,928,200. See independent auditors' report. - 70 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) Project Area No 2 Tax Allocation Refundin� Revenue Bonds 2006 Series A, Tax Allocation Revenue Ca�ital Appreciation Bonds 2006 Series B Revenue Bonds 2006 Series C and Subordinate Tax Allocation Revenue Ca�ital A�preciation Bonds 2006 Series D (Contmued) The future debt service requirements on the 2006 Series A Tax Allocation Itefunding Revenue Bonds, Series B Tax Allocation Revenue Capital Appreciation Bonds, Series C Revenue Bonds and Series D Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 2) are as follows: Year Ending June 30, Principal Interest Total 2009 $ 1,221,594 $ 2,463,783 $ 3,685,377 2010 1,777,789 2,595,139 4,372,928 2011 1,547,001 2,589,956 4,136,957 2012 1,647,818 2,561,720 4,209,538 2013 1,808,558 2,628,779 4,437,337 2014 - 2018 8,060,967 12,717,428 20,778,395 2019 - 2023 8,711,794 13,361,735 22,073,529 2024 - 2028 12,124,808 14,248,755 26,373,563 2029 -2033 12,375,398 11,123,708 23,499,106 2034 - 2037 17,435,048 6,252,386 23,687,434 $ 66,710,775 $ 70,543,389 $ 137,254,164 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 fund various redevelopment capital projects within or of benefit to the project area and to finance costs of issuance of the bonds. The bonds bear interest at rates ranging from 3.000% to 5.125%. Principal maturities for the serial bonds of $2,475,000 began April l, 2004, and continue through October 1, 2031. The term bonds in the amount of$2,270,000 are due in 2033. See independent auditors' report. - 71 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 2003 Series Tax Allocation Revenue Bonds (Project Area No. 3) (Continued) The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project Area No. 3) are as follows: Year Ending June 30, Principal Interest Total 2009 $ 100,000 $ 195,898 $ 295,898 2010 100,000 193,048 293,048 2011 105,000 189,848 294,848 2012 110,000 186,225 296,225 2013 115,000 182,265 297,265 2014 - 2018 635,000 840,932 1,475,932 2019 - 2023 785,000 692,388 1,477,388 2024 - 2028 1,000,000 484,313 1,484,313 2029 -2033 1,270,000 201,669 1,471,669 $ 4,220,000 $ 3,166,586 $ 7,386,586 Project Area No 3 Tax Allocation Revenue Bonds 2006 Series A Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series C On July 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 3 $ll,915,000 Tax Allocation Revenue Bonds 2006 Series A, $383,660 Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B and $2,760,866 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series C. 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 two loans to fund various redevelopment capital projects within or of benefit 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 fund various redevelopment capital projects within or of benefit to the Project Area, fund a debt service reserve fund and pay the costs of issuance of the bonds. See independent auditors' report. - 72 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) Project Area No 3 Tax Allocation Revenue Bonds 2006 Series A Tax Allocation Revenue Capital Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series C (Continued) The Series A bonds consist of$2,980,000 Serial Bonds with interest rates ranging from 4.00% to 4.75% payable semiannually on April 1 and October l. Bond maturities 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% and mature April 1, 2041. The Series B bonds consist of $383,660 Capital Appreciation Bonds with a yield ranging from 5.31% to 5.54%. Bond maturities are April 1, 2020, 2021, 2027 and 2028. The Series C bonds consist of $2,760,866 Capital Appreciation Bonds with a yield ranging from 4.80% to 6.10%. Bond maturities begin April 1, 2009, and continue annually through 2034. Each year the outstanding balance is increased for the accretion of interest associated with the bonds. The accreted interest at June 30, 2008 is $366,589. The future debt service requirements on the 2006 Series A Tax Allocation Revenue Bonds, Series B Tax Allocation Revenue Capital Appreciation Bonds and Series C Subordinate Tax Allocation Revenue Capital Appreciation Bonds(Project Area No. 3) are as follows: Year Ending June 30, Principal Interest Total 2009 $ 22,012 $ 567,263 $ 589,275 2010 126,101 5'73,175 699,276 2011 160,871 570,204 731,075 2012 198,934 562,141 761,075 2013 228,133 565,742 793,875 2014 - 2018 1,524,953 2,954,028 4,478,981 2019 - 2023 1,701,040 3,668,229 5,369,269 2024 - 2028 1,866,831 4,042,744 5,909,575 2029 - 2033 2,398,858 3,990,717 6,389,575 2034 - 2038 3,981,793 1,768,244 5,750,037 2039 - 2041 2,810,000 285,750 3,095,750 $ 15,019,526 $ 19,548,237 $ 34,567,763 See independent auditors' report. - 73 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 1998 Series Tax Allocation Revenue Bonds (Project Area No. 4) On March 1, 1998, the Palm Desert Financing Authority issued $11,020,000 of Tax Allocation Revenue Bonds (Project Area No. 4) 1998 Series. The proceeds from the bonds were loaned to the Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency in Project Area No. 4. Interest rates on the bonds vary from 4.0%to 5.2%per annum payable semi- annually on April 1 and October l, with principal maturing annually on October 1. In July 2006, $1,785,000 of the outstanding balance was advance refunded by the issuance of Tax Allocation Refunding Revenue Bonds (Project Area No. 4) 2006 Series A. The future debt service requirements on the 1998 Series Tax Allocation Revenue Bonds (Project Area No. 4) (after defeasance) are as follows: Year Ending June 30, Principal Interest Total 2009 $ - $ 429,590 $ 429,590 2010 - 429,590 429,590 2011 130,000 426,665 556,665 2012 135,000 420,635 555,635 2013 140,000 414,240 554,240 2014 -2018 1,690,000 1,871,538 3,561,538 2019 - 2023 2,415,000 1,327,950 3,742,950 2024 - 2028 3,120,000 611,000 3,731,000 2029 725,000 18,850 743,850 $ 8,355,000 $ 5,950,058 $ 14,305,058 See independent auditors' report. - 74 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTiNUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 2001 Series Tax Allocation Revenue Bonds (Proiect Area No. 4) In November 2001, the Palm Desert Financing Authority issued $15,695,000 of Tax Allocation Revenue Bonds (Project Area No. 4) 2001 Series. The proceeds from the bonds were loaned to the Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency in Project Area No. 4. Interest rates on the bonds vary from 3.5% to 4.9% per annum payable semi-annually on April 1 and October 1, with principal maturing annually on October 1. The future debt service requirements on the 2001 Series Tax Allocation Revenue Bonds (Project Area No. 4) are as follows: Year Ending June 30, Principal Interest Total 2009 $ 310,000 $ 662,313 $ 972,313 2010 305,000 651,250 956,250 2011 320,000 639,909 959,909 2012 325,000 628,011 953,011 2013 345,000 614,805 959,805 2014 - 2018 1,965,000 2,832,166 4,797,166 2019 - 2023 2,455,000 2,331,840 4,786,840 2024 -2028 3,055,000 1,683,240 4,738,240 2029 - 2032 5,430,000 590,880 6,020,880 $ 14,510,000 $ 10,634,414 $ 25,144,414 See independent auditors' report. - 75 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) Tax Allocation Refundin� Revenue Bonds (Proiect Area No 4) 2006 Series A and Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) 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 $4,663,089 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 two loans to refinance a portion of the outstanding obligations of the Redevelopment Agency under a loan agreement dated March 1, 1998, fund various redevelopment capital projects within or of benefit to its Project Area No. 4, purchase a Reserve Fund surety policy and pay the costs of issuance of the bonds. The Series A bonds consist 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 maturities begin October l, 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$4,663,089 Capital Appreciation Bonds with a yield ranging from 4.14% to 5.56%. Bond maturities begin October 1, 2009, and continue annually through 2034. Each year the outstanding balance is increased for the accretion of interest associated with the bonds. The accreted interest at June 30, 2008 is $501,521. The future debt service requirements on the 2006 Series A Tax Allocation Refunding Bonds and Series B Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) are as follows: Year Ending June 30, Principal Interest Total 2009 $ 200,000 $ 694,945 $ 894,945 2010 439,496 686,949 1,126,445 2011 435,000 662,658 1,097,658 2012 554,233 657,612 1,211,845 2013 656,190 651,686 1,307,876 Z014 -2018 2,342,938 2,917,343 5,260,281 2019 - 2023 1,950,111 2,840,986 4,791,097 2024 - 2028 4,013,240 3,106,161 7,119,401 2029 - 2033 4,968,195 6,220,055 11,188,250 2034 - 2035 3,713,686 4,182,689 7,896,375 $ 19,273,089 $ 22,621,084 $ 41,894,173 See independent auditors' report. - 76 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 1998 Series Tax Allocation (Housin� Set-Aside) Revenue Bonds In January 1998, the Palm Desert Financing Authority issued $48,760,000 in Tax Allocation (Housing Set-Aside) Revenue Bonds. The proceeds from the bonds were loaned to the Palm Desert Redevelopment Agency to finance the acquisition of seven apartment complexes consisting of 725 rental units from the Housing Authority of the County of Riverside. Interest rates on the bonds vary from 4.0% to 5.1% per annum payable semi-annually on April 1 and October 1, with principal maturing annually on October l. In February 2007, $38,740,000 of the outstanding balance was advance refunded by the issuance of Tax Allocation (Housing Set-Aside) Refunding Revenue Bonds Series 2007. The future debt service requirements on the 1998 Series Tax Allocation (Housing Set-Aside) Revenue Bonds (after defeasance) are as follows: Year Ending June 30, Principal Interest Total 2009 $ 685,000 $ 233,806 $ 918,806 2010 1,390,000 184,500 1,574,500 2011 1,460,000 113,250 1,573,250 2012 1,535,000 38,375 1,573,375 $ 5,070,000 $ 569,931 $ 5,639,931 See independent auditors' report. - 77 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 2002 Series Tax Allocation (Housin� Set-Aside) Revenue Bonds In August 2002, the Palm Desert Financing Authority issued $12,100,000 of Tax Allocation (Housing Set-Aside) Revenue Bonds 2002 Series. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to fund various low and moderate housing capital projects of the Agency and to finance costs of issuance of the bonds. Interest rates on the $6,555,000 serial bonds vary from 2.0% to 4.9% per annum payable semi-annually on March 1 and October 1. Annual principal payments began October 1, 2003. The $5,545,000 term bonds bear an interest rate of 5.0%per annum and mature October l, 2031. The future debt service requirements on the 2002 Series Tax Allocation (Housing Set-Aside) Revenue Bonds are as follows: Year Ending June 30, Principal Interest Total 2009 $ 265,000 $ 500,572 $ 765,572 2010 275,000 491,454 766,454 2011 285,000 481,298 766,298 2012 295,000 470,201 765,201 2013 305,000 458,348 763,348 2014 - 2018 1,730,000 2,089,745 3,819,745 2019 - 2023 2,175,000 1,656,220 3,831,220 2024 -2028 2,770,000 1,053,750 3,823,750 2029 - 2032 2,775,000 285,875 3,060,875 $ 10,875,000 $ 7,487,463 $ 18,362,463 See independent auditors' report. - 78 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) Tax Allocation (Housin��Set-Aside) Refundin� Revenue Bonds Series 2007 On February 7, 2007, the Palm Desert Financing Authority issued $86,155,000 Tax Allocation (Housing Set-Aside) Refunding Revenue Bonds Series 2007. The Palm Desert Financing Authority loaned the proceeds to the Palm Desert Redevelopment Agency. The proceeds of the 2007 Loan will be used to finance the development of low and moderate income housing by the Redevelopment Agency, refinance a portion of the outstanding obligations of the Redevelopment Agency, purchase a debt service surety bond for deposit in the Reserve Fund, and pay certain costs associated with the issuance of the bonds. The Series 2007 bonds consist of$86,155,000 Serial Bonds with interest ranging from 4.00% to 5.00%payable semiannually on October 1 and April 1. Bond maturities begin October 1, 2007, and continue annually through 2027. The future debt service requirements on the Tax Allocation (Housing Set-Aside) Refunding Revenue Bonds Series 2007 are as follows: Year Ending June 30, Principal Interest Total 2009 $ 2,880,000 $ 3,861,963 $ 6,741,963 2010 3,005,000 3,736,750 6,741,750 2011 3,135,000 3,606,438 6,741,438 2012 3,265,000 3,478,438 6,743,438 2013 5,005,000 3,313,038 8,318,038 2014 - 2018 29,005,000 12,584,063 41,589,063 2019 - 2023 21,720,000 5,516,469 27,236,469 2024 -2028 15,955,000 1,766,250 17,721,250 $ 83,970,000 $ 37,863,409 $ 121,833,409 See independent auditors' report. - 79 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Notes Payable Countv of Riverside The Agency entered into a cooperation agreement with the County of Riverside on December 15, 1987, regarding the adoption of the Agency's Project Area No. 2. The agreement states that the Agency was to retain 50%of the County's share of tax increment. This was based on the County's share of tax increment being what would be allocated to the County in the absence of a redevelopment project area being adopted. This agreement called for the Agency to retain 50% of the County's share until the gross increment reached $3,500,000. The agreement further states that when gross increment reaches $10,000,000, the Agency 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, 2008, was $490,828. Annual payments on the note are $122,707. Future debt service payments are as follows: Year Ending June 30, Principal Interest Total 2009 $ 122,707 $ - $ 122,707 2010 122,707 - 122,707 2011 122,707 - 122,707 2012 122,707 - 122,707 $ 490,828 $ - $ 490,828 Claims and Judgments Payable Estimates for all workers' compensation and general liabilities up to the self-insured levels have been recorded as long-term liabilities. At June 30, 2008, total estimated workers' compensation and general liability claims payable, including a provision for incurred but not reported claims, were $247,961 and $193,352, respectively. See independent auditors' report. - 80 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Claims and Judgments Payable(Continued) Changes in claims liabilities during the past two years are as follows: June 30, 2007 June 30, 2008 Claims payable -Beginning of Year $ 481,317 $ 537,001 Incurred claims (including IBNR) and changes in estimates 367,479 218,647 Claims payments (311,795) (314,335) Claims payable -End of Year $ 537,001 $ 441,313 Compensated Absences Payable There is no fixed payment schedule to pay the governmental fund types' outstanding liability of $2,883,224 for compensated absences earned at June 30, 2008. Compensated absences are generally liquidated by the General Fund. Business-type Activities - Capital Leases Obligations under capital leases are as follows: Pure Plant Water. Inc. - The present value of the minimum lease payment on water purification equipment was capitalized at $2,802 using an interest rate of 4.94%. Lease is payable in 60 monthly installments of$53 beginning May 15, 2005. $ 1,ll3 Pure Plant Water, Inc. - The present value of the minimum lease pavment on water purification equipment was capitalized at $10,752 � � ; ��� (t,ticest rate of 5.15%. Lease is payable in 60 monthly installments of$204 beginning September 1, 2005. 4,818 Commerca Leasing Corporation - The present value of the minimum lease payment on the Uplink GPS system was capitalized at $569,046 using an interest rate of 6.00%. Lease is payable in 48 monthly installments of 13,364 beginning September 15, 2006. 315,825 See independent auditors' report. - 81 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Business-type Activities-Capital Leases (Continued) Citicapital Commercial Corporation - The present value of the minimum lease payment on the Club Car Golf Carts was capitalized at $663,256 using an interest rate of 5.220%. Lease is payable in 48 monthly installments of$12,249 beginning October l, 2006. There is a balloon payment at the end of the lease of$165,300, which will be paid on October 1, 2010. $ 447,556 Wells Far�o Financial Leasin�, Inc. - The present value of the minimum lease payment on the new golf course equipment (Greens Mowers) was capitalized at $63,292 using an interest rate of 6.00%. Lease is payable in 37 monthly installments of $1,915 beginning July 1, 2006. 18,642 Wells Fargo Financial Leasin�, Inc. - The present value of the minimum lease payment on the new golf course equipment was capitalized at $1,325,933 using an interest rate of 3.720%. Lease is payable in 48 monthly installments of $29,680 beginning December 15, 2006. 794,828 Present value of net minimum lease payments 1,582,782 Less: current portion (627,649) $ 955.133 The following is a schedule by year, of future minimum lease payments and present value of the net minimum lease payments for capital leases as of June 30, 2008: Year Ending Minimum June 30, Lease Payments 2009 $ 685,762 2010 666,498 2011 322,088 1,674,348 Less: amounts representing interest (91,566) Present value of net minimum lease payments $ 1,582,782 See independent auditors' report. - 82 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 6. LONG-TERM LIABILITIES (CONTINUED): Business-type Activities- Capital Leases (Continued) The assets acquired through capital lease are as follows: Machinery and equipment $ 2,876,126 Less: accumulated depreciation (1,252,685) 1.623.441 7. DEFERRED COMPENSATION PLAN: The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Pursuant to changes in August 1996, of IRC Section 457, in January 1997, the City established a trust in which all assets held by Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement Corporation (ICMA) were placed. The City does not have fiduciary responsibility for the plan assets held by NRS and ICMA. The assets, all property and rights purchased with such amounts and all income attributable to such amounts are held in trust for the exclusive benefit of the participants and the beneficiaries. The assets are no longer the property of the City, and as such, are no longer subject to the claims of the City's general creditors. As a result, the assets in the amount of $9,050,688 held by NRS and ICMA of the 457 Plan are not reflected in the City's financial statements. 8. AMOUNTS DUE UNDER REDEVELOPMENT AGENCY PASS-THROUGH AGREEMENTS: Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are, except where otherwise provided by specific agreement, allocated to the Agency. All taxes on the "frozen" assessed valuation of the property are allocated to the City and other taxing agencies. The Agency has entered into various pass-through agreements with other tax ������2�i�s to allocate their tax increment resulting from the increase in assessed values after the ���,��. �_,E�t1�c RedevelopmentPlan. See independent auditors' report. - 83 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 8. AMOUNTS DUE UNDER REDEVELOPMENT AGENCY PASS-THROUGH AGREEMENTS (CONTINUED): At June 30, 2008, the Agency was holding $43,419,765 in trust on behalf of other taxing agencies related to specific pass-through agreements as detailed below: Balance at Balance at Entity July 1,2007 Additions Payments June 30,2008 Riverside County Capital Improvement $ 14,587,299 * $ 16,385,141 $ 18,046,062 $ 12,926,378 Riverside County-Schools 733,098 817,005 733,098 817,005 Riverside County-Library 5,684,682 * 2,039,240 - 7,723,922 Riverside County-Fire 2,990,357 3,248,130 2,990,357 3,248,130 Coachella Valley Mosquito Abatement District 596,686 661,403 596,686 661,403 Coachella Valley Water District 6,649,250 1,554,953 - 8,204,203 Desert Community College District 1,263,533 * 1,410,834 1,263,533 1,410,834 Desert Sands Unified School District 5,410,082 * 6,187,467 5,571,592 6,025,957 Coachella Valley Recreation and Park District 467,479 511,218 467,479 511,218 Coachella Valley Resources District 4,475 4,926 4,475 4,926 Palm Springs Unified School District 270,471 338,347 270,471 338,347 County Juvenile Health District 727,014 1,353,419 1,155,109 925,324 Other Deposits 579,234 263,877 220,993 622,118 $ 39,963,660 $ 34,775,960 $ 31,319,855 $ 43,419,765 * The Redevelopment Agency has used bond proceeds for the construction of capital improvements, which benefit these entities. These entities have agreements with the Redevelopment Agency, which will allow it to use a portion of these amounts to offset debt service costs. See independent auditors' report. - 84 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 9. PENSION PLAN: a. Plan Description: The City of Palm Desert contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and city ordinance. Copies of PERS' annual financial report may be obtained from their executive office: 400 Q Street, Sacramento, CA 95814. b. Funding Policy: Participants are required to contribute 8% of their annual covered salary. The City contributes 7% of the required employee contribution on their behalf and the employee contributes the remaining 1%. The City is required to contribute at an actuarially determined rate; the rate for fiscal year 2007-2008, was 17.546% for non-safety employees of annual covered payroll. The contribution requirements of plan members and the City are established and may be amended by PERS. c. Annual Pension Cost: For 2008, the City's annual pension cost of $3,680,511 for PERS was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2005, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included: a) 7.75% investment rate of return (net of administrative 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-living 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 ' � �������t���cnts over a three-year period (smoothed market value). PERS' unfunded actuarial a�c�ucd liability is being amortized as a level percentage of projected payroll on a closed basis that depends on the plan's entry into PERS. The remaining amortization period was 17 years. See independent auditors' report. - 85 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 9. PENSION PLAN (CONTINUED): d. Three-Year Trend Information for PERS: Fiscal Annual Pension Percentage Net Pension Year Cost(APC) APC Contributed Obli�ation 6/30/06 $ 2,646,409 100% $ - 6/30/07 3,321,061 100% - 6/30/08 3,680,511 100% - e. Schedule of Funding Progress for PERS: As of June 30, 2007, the most recent actuarial valuation date, the plan was 75.0% funded. The actuarial accrued liability for benefits was $61.5 million, and the actuarial value of assets was $46.2 million, resulting in an unfunded actuarial accrued liability (UAAL) of $15.3 million. The covered payroll (annual payroll of active employees covered by the plan) was $13.3 million, and the ratio of the UAAL to the covered payroll was 115.8%. The schedule of funding progress presented below, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Entry Age Normal UAAL as a Actuarial Accrued Actuarial Unfunded %of Valuation Liability Value of AAL Funded Covered Covered Date (AAL) Assets (UAAL) Ratio Pa r�l Pavroll (A) (B) (A-B) (B/A) (C) [(A-B)/C] 6/30/OS $ 43,479,283 $ 36,087,558 $ 7,391,725 83.0% $ 9,403,830 78.6 % 6/30/06 52,739,452 40,523,105 12,216,347 76.8% 11,845,746 103.1 % ` ""� <�,5;5,809 46,180,367 15,355,442 75.0% 13,263,198 115.8 % See independent auditors' report. - 86 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 10. FLJND EQUITY: Reserves of Fund Balance In the fund financial statements, reserves segregate portions of fund balances that are either not available or have been earmarked for specific purposes. The various reserves established as of June 30, 2008,were as follows: RDA RDA Low Income Financing RDA Other General Hosing Authority Capital Governmental Fund Special Revenue Debt Service Projects Funds Total Encumbrances $ 1,724,981 $ 488,506 $ - $ 4,904,332 $ 9,775,686 $ 16,893,505 Inventory 47,905 - - - - 47,905 Continuing appropriations 149,357 11,703,667 - 62,066,704 30,656,063 104,575,791 Prepaid costs and deposits 920,938 156 - 649,134 2,205 1,572,433 Reserve requirement - - - - 18,487 18,487 Property held for resale - 25,000 - - - 25,000 Debt service 2,532,053 - 630,500 - - 3,162,553 Loans and notes receivable 3,748,000 7,695,368 - 2,000,000 - 13,443,368 Advances 7,181,000 - - - 13,419,000 20,600,000 Totals $ 16,304,234 $ 19,912,697 $ 630,500 $ 69,620,170 $ 53,871,441 $ 160,339,042 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, 2008. Although all appropriations lapse at year-end, even if encumbered, the City intends either to honor the contracts ��� �•o�.7ress or to cancel them. Reserve for encumbrances is rebudgeted on July 1, by Council �1��� _;��. Reserved for Inventory - This reserve is to restrict fund balance so that it will not be considered as current funds available. Reserved for Continuin� Appropriations - These reserves are for appropriations for capital projects, which are unexpended as of June 30, 2008, and are carried forward as continuing appropriations to be expended in 2008-2009. See independent auditors' report. - 87 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30,2008 10. FiJND EQUITY(CONTINUED): Reserves of Fund Balance(Continued) Reserved for Prepaid Costs and Deposits - These reserves represent contractual obligations for cash payments made before June 30, 2008, but not recognized as an expenditure until after July l, 2008, and noncurrent portions of deposits. Reserved for Reserve Reauirement - These reserves are set up for the maintenance requirements for the housing apartments. Reserved for Proaertv Held for Resale-This reserve is for property held for resale and has been set aside to indicate that these funds are not available to finance current expenditures. Reserved for Debt Service - These reserves for Debt Service represent reserves accumulated by the City and the Redevelopment Agency that are legally restricted to the payment of long-term debt principal and interest amounts that mature in future years and for compensated absences. Reserved for Loans and Notes Receivables - These reserves are set up to reflect the noncurrent portion of receivables so that they will not be considered as current funds available. Reserved for 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. Net Asset Restatements Net assets of the governmental activities have been restated as follows: Net assets, July l, 2007, as previously reported $ 498,408,082 To adjust capital assets to add prior year acquisition inadvertently not recorded 11,396,588 Net assets, July l, 2007, as restated $ 509.804,670 See independent auditors' report. - 88 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 1 L RISK MANAGEMENT: a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement: The City is a member of the California Joint Powers Insurance Authority (the Authority). The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverage. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine member Executive Committee. b. Self-Insurance Programs of the Authority: General Liability Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between police and non-police. Costs are spread to members as follows: the first $30,000 of each occurrence is charged directly to the member's primary deposit; costs from $30,000 to $750,000 and the loss development reserves associated with losses up to $750,000 are pooled based on the member's share of losses under$30,000. Losses from$750,000 to $5,000,000 and the associated loss development reserves are pooled based on payroll. Costs of covered claims from $5,000,000 to $50,000,000 are currently paid by excess insurance. Costs of covered claims for subsidence losses from $15,000,000 to $25,000,000 are paid by excess insurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. Administrative expenses are paid from the Authority's investment earnings. Workers' Compensation The City of Palm Desert also participates in the workers' compensation pool administered by the Authority. Each member pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between public safety and non-public safety. See independent auditors' report. - 89 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 11. RISK MANAGEMENT (CONTINUED): b. Self-Insurance Programs of the Authority (Continued): Workers' Compensation (Continued) Each member has a retention level of$50,000 for each loss and this is charged directly to the member's primary deposit. 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 to $2,000,000 and employer's liability losses from $5,000,000 to $10,000,000 and loss development reserves associated with those losses are pooled based on payroll. Losses from $2,000,000 to $5,000,000 are pooled with California State Association of Counties - Excess Insurance Authority members. Costs from $2,000,000 to $300,000,000 are transferred to reinsurance carriers. Costs in excess of $300,000,000 are pooled among the Members based on payroll. Protection is provided per statutory liability under California Workers' Compensation law. Administrative expenses are paid from the Authority's investment earnings. c. Purchased Insurance: Property Insurance The City of Palm Desert participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. The City of Palm Desert property is currently insured according to a schedule of covered property submitted by the City of Palm Desert to the Authority. The City's property currently has all-risk property insurance protection in the amount of $129,477,524. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retroactive adj ustments. Crime Insurance The City of Palm Desert purchases crime insurance coverage in the amount of$1,000,000 with $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retroactive adjustments. See independent auditors' report. - 90 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 11. RISK MANAGEMENT (CONTINUED): c. Purchased Insurance (Continued): Special Event Tenant User Liability Insurance The City of Palm Desert further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on City property. The insurance premium is paid by the tenant user and is paid to the City of Palm Desert according to a schedule. The City of Palm Desert then pays for the insurance. The insurance is arranged by the Authority. d. Adequacy of Protection: 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. 12. DEFERRED REVENUES AND UNEARNED REVENUES: Major Governmental Funds General Fund: On March 13, 1997, the Redevelopment Agency (Agency) purchased land from the City for the purpose of developing a second golf course financed by a note in the amount of$2,055,000. The note has no specific due date and carries an interest rate that equates the rate of return the City receives on its investment with the Local Agency Investment Fund (2.894% at June 30, 2008). Recognition of the revenue from the sale has been deferred until it becomes available. On March 13, 1997, the City entered into an agreement; along with amendments on June 4, 1997 and May 18, 2004; with the Palm Desert Recreational Facilities Corporation (Corporation) for the use of property at the City's Golf Resort (Desert Willow). Payment is due when the Corporation's revenues exceed its expenses. At June 30, 2008, the Corporation owed the City rent totaling $285,000, which will be recognized as revenue by the City when the rent is paid by the Corporation. See independent auditors' report. - 91 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS ' (CONTINUED) June 30, 2008 12. DEFERRED REVENUES AND UNEARNED REVENUES (CONTINUED): Major Governmental Funds (Continued) General Fund(Continued): On January 9, 2007, a promissory note for $1,000,000 was issued from the City to the Friends of the Desert Mountains. Any unpaid principal accrues interest at a rate of 5%per annum. The entire balance of principal and accrued interest is due within thirty-six months of issuance. As of June 30, 2008, $74,658 in interest has been accrued. Recognition of the interest revenue has been deferred until it becomes due. The City entered into several individual loan agreements with residents of the Highlands Utility Undergrounding Assessment District No. 04-01. The residents agreed to pay to the City the full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the loan along with all accrued interest is due and payable at the earliest of September 2, 2036, or any change in ownership of the property. As of June 30, 2008, $20,887 in interest has been accrued. Recognition of the interest revenue has been deferred until it becomes due. The State of California collects taxes and fees for the City and makes payments to the City at various times. Due to the City's policy of recognizing revenue, the amount of$112,640 for sales tax has been deferred. Other amounts reported as unearned revenues include $1,170 in miscellaneous rents. RDA Low Income Housing Special Revenue Fund: Other amounts reported as unearned revenues include $1,925 in miscellaneous rents. Other Governmental Funds: Special Revenue Funds: Gas Tax fund has $800,227 of unearned revenues representing Prop 1B funds received in advance. Measure A fund has $26,222 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. See independent auditors' report. - 92 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30,2008 12. DEFERRED REVENUES AND UNEARNED REVENUES (CONTINUED): Other Governmental Funds (Continued): Special Revenue Funds (Continued): Loans receivable in the amount of$31,092 for home improvement loans are recorded as deferred in the Community Development Block Grant Fund. $42,226 and $47,320 of grant funds are deemed unearned until expenditures are incurred in the Recycling Fund and Public Safety Police Grants Fund, respectively. Prepaid rents in the amount of$29,676 from the eight apartment complexes operated by the Palm Desert Housing Authority will be recognized as revenue when earned. Debt Service Funds: Assessment receivables in the amount of $2,699,594 represent future assessments to be received from property owners in Highlands Undergrounding Assessment Districts 04-1 to pay for long- term obligations incurred in making capital improvements in the Assessment District. Recognition of the revenue from the assessments has been deferred until it becomes available. Once received, the monies will be used to make annual debt service payments. Ca�tal Project Funds: $1,719,601 has been deferred for capital reimbursements due from developers and other agencies for work completed by the City on their behalf. 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 beginning two years from the final payment date of February 6, 2004. The entire balance of principal and accrued interest is due by February 6, 2009. As of June 30, 2008, $99,755 in interest has been accrued. Recognition of the interest revenue has been deferred until it becomes due. $107,651 of unearned revenue represents deposits from developers for street improvements, which have not been spent as of June 30, 2008. See independent auditors' report. - 93 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 12. DEFERRED REVENUES AND UNEARNED REVENUES (CONTINUED): Business-type Activities The balance of$171,029 represents the unused portions of prepaid golf fees, value of unredeemed gift certificates and unearned rent. Component Unit The balance of$41,660 represents the unused portions of prepaid banquets. 13. OTHER POST-EMPLOYMENT BENEFITS: a. Plan Description: This study analyzes the postretirement held benefit plans provided by the City. The City provides post-employment medical benefits to eligible employees at retirement through the "Retiree Service Stipend Program". All full-time or part-time employees who meet the eligibility requirements for this program may continue their medical coverage through the Ca1PERS Health Plan and receive reimbursement from the City for a portion of the costs for the coverage. Em�lovees Hired Prior to January 1, 2008 Eligibility for the stipend requires retirement simultaneously from the City and CaIPERS on or after age 50 with at least 10 consecutive years of service with the City. Eligible employees must be covered under the Ca1PERS Health Plan at the time of retirement and elect to participate in the stipend program within 30 days of retirement. The City's contribution towards the coverage is based on years of service as follows: Consecutive Years of Service City's Contribution With the Citv at Retirement Percenta�e 10 years of service 50% 11 years of service 55% 12 years of service 60% 13 years of service 65% 14 years of service ��% 15 or more years of service 75% See independent auditors' report. - 94 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED): a. Plan Description (Continued): Emplovees Hired On or After January 1, 2008 Eligibility for the stipend requires retirement simultaneously from the City and CaIPERS on or after age 50 with at least 15 consecutive years of service with the City. Eligible employees must be covered under the Ca1PERS Health Plan at the time of retirement and elect to participate in the stipend program within 30 days of retirement. The stipend is discontinued when the retiree reaches Medicare eligibility age. The City's contribution towards the coverage will be applied to the lowest cost plan and is based on age at retirement and consecutive years of service with the City as outlined in the following table: Consecutive Years of Service at Retirement Age 15 16 17 18 19 20 21 22 23 24 25+ 50 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 51 10% 15% 20% 25% 30% 35% 40% 45% 50% 50% 50% 52 20% 25% 30% 35% 40% 45% 50% 50% 50% 50% 50% 53 30% 35% 40% 45% 50% 50% 50% 50% 50% 50% 50% 54 40% 45% 50% 50% 50% 50% 50% 50% 50% 50% 50% 55+ 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% Employees with at least 5 years of service, not meeting the eligibility requirements for the stipend program, who retire simultaneously from the City and CaIPERS are eligible to continue medical coverage through the CaIPERS Health Plan. The City is required to pay the CaIPERS minimum employer contribution ($80.80 in 2007 and $97.00 in 2008) for these employees. b. Funding Policy: The contribution requirements of plan members and the City are established and may be amPnded by the City, City Council, and/or the employee associations. Currently, contributions � o� :rquired from plan members. During the fiscal year ended June 30, 2008, the City contributed $7,428,386 to the plan, which included $759,139 of the Annual Required Contribution of which $187,616 were pay-as-you-go premiums. The purpose of these contributions is to cover the required City contribution rate of 5.5% of annual covered payroll (annual payroll of active employees covered by the plan) and to prefund benefits. As a result, the City calculated and recorded a Net OPEB Asset, representing the difference between the Annual Required Contribution (ARC) and actual contributions, as presented below: See independent auditors' report. - 95 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED): b. Funding Policy (Continued): Annual required contribution(ARC) $ 759,139 Interest on Net OPEB obligation - Adjustment to ARC - Annual OPEB cost 759,139 Contribution made 7,428,386 Increase in Net OPEB obligation(asset) (6,669,247) Net OPEB obligation(asset) at June 30, 2007 - Net OPEB obligation (asset) at June 30, 2008 $ (6,669,247) The contribution rate of 5.5% is based on the ARC of $759,139, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis is projected to cover the annual normal cost and the amortization of unfunded actuarial accrued liabilities (or funding excess) over a thirty year period. c. Annual OPEB Cost and Net OPEB Obligation(Asset): For fiscal year 2008, the City's annual OPEB cost (expense) of $759,139 was equal to the ARC. Since this fiscal year is the transition year, information on the annual OPEB cost, percentage of Annual OPEB Cost contributed, and Net OPEB Obligation is only available for the current fiscal year, are presented below: Actual Percentage of Fiscal Annual Contribution Annual Net OPEB Year OPEB (Net of OPEB Cost Obligation Ended Cost Adj ustments) Contributed (Asset) 6/30/2008 $ 759,139 $ 7,428,386 979% $ (6,669,247) See independent auditors' report. - 96 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED): d. Funded Status and Funding Progress: The funded status of the plan as of July 1, 2007 is as follows: Actuarial accrued liability(AAL) $ 6,481,631 Actuarial value of plan assets - Unfunded actuarial accrued liability(UAAL) $ 6,481,631 Funded ration (actuarial value of plan assets/AAL) 0.0% Covered payroll (active plan members) $ 13,800,864 UAAL as a percentage of covered payroll 46.97% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the City are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress is presented below: Actuarial UAAL as a Actuarial Accrued Actuarial Unfunded °/a of Valuation Liability Value of AAL Funded Covered Covered Date (AAL) Assets (UAAL) Ratio Pavroll Pavroll �A) �B) �A-B) (B/A) �C) L�A-B)/C] 7/O1/07 $ 6,481,631 $ - $ 6,481,631 - % $13,800,864 46.97 % e. Act�iaria,! 1l�iethods and Assumptions: Projections of benefits for financial reporting purposes are based on the substantive plan and include the types of benefits provided at the time of each valuation. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the long-term perspective of the calculations. See independent auditors' report. - 97 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED): e. Actuarial Methods and Assumptions (Continued): In the July 1, 2007, actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 7.75% investment rate of return (net of administrative expenses) and an initial annual healthcare cost trend rate of 10%, reduced by decrements to an ultimate rate of 5% after ten years. A 3.25% annual rate of increase in future salaries is also assumed in the valuation. The City's unfunded actuarial accrued liability will be amortized as a level percentage of projected covered payroll on a closed basis. The amortization period at July l, 2007,was thirty years. 14. SPECIAL ASSESSMENT DEBT: Below is a summary of the changes in the special assessment bonds payable: Balance at Payments and Balance at July 1,2007 Additions Reductions June 30,2008 1995 Revenue Bonds $ 220,000 $ - $ (220,000) $ - 1997 Revenue Bonds 17,265,000 - (17,265,000) - 2003 Assessment Revenue Bonds 3,765,000 - (265,000) 3,500,000 AD 98-1 Limited Obligation Refunding Bonds 1,015,000 - (145,000) 870,000 CFD 2005-1 Special Taac Bonds Series 2006A 67,915,000 - - 67,915,000 AD 2004-2 Limited Obligation Improvement Bonds 29,430,000 - - 29,430,000 2008 Special Tax Refunding Bonds - 10,935,000 - 10,935,000 $ 119,610,000 $ 10,935,000 $ (17,895,000) $ 112,650,000 The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special Improvement Acts and the 1982 Mello-Roos Community Facilities Act(1982 Bonds). The City has 'lal-�ility to 1911 Act bondholders until assessments have been collected from the property �wner. Such liability is then recorded in the Agency Funds. Therefore, the 1911 Bonds are not recorded as liabilities in the accompanying financial statements. The City also has no liability to the 1915 Act bondholders or the bondholders of bonds issued under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the tax rolls. However, the City may take certain actions to assume secondary liability for all or part of 1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are consummated. See independent auditors' report. - 98 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 14. SPECIAL ASSESSMENT DEBT (CONTINUED): Special assessment bonds payable, as described below, and are not recorded as long-term liabilities, as these obligations do not constitute a debt or obligation of the City. 1995 Revenue Bonds In September 1995, the Palm Desert Financing Authority issued $7,540,000 of 1995 Revenue Bonds. The proceeds from the revenue bonds were loaned to the Assessment Districts to provide funds to refund in advance $900,000 in Assessment District No. 83-1 Bonds, $5,575,000 in Assessment District 84-1 Refunding Bonds and $3,200,000 in Assessment District No. 87-1 Bonds. These bonds were issued under the 1915 Act to provide funds for capital improvements in the respective assessment districts. Interest rates on the Bonds are paid at a rate of 6.0% with interest payable semi-annually on March 2 and September 2, with principal maturing annually on September l. As of June 30, 2008, the bonds are paid off. 1997 Revenue Bonds In December 1997, the Palm Desert Financing Authority issued $30,915,000 in 1997 Revenue Bonds. The proceeds were loaned to the Assessment Districts to refund in advance $2,298,980 in Assessment District No. 92-1 Bonds, $11,870,000 in Community Facilities District No. 91-1 (1992 Bonds), $6,945,000 in Assessment District No. 94-1 Bonds and $12,835,000 in Community Facilities District No. 91-1 (1995 Bonds). These bonds were issued under the 1915 Act or the 1982 Mello-Roos Community Facilities Act to provide funds for capital improvements in the respective assessment districts. During the fiscal year, portions of the bonds were called and the remaining balance was defeased by the 2008 Special Tax Refunding Bonds. See independent auditors' report. - 99 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 14. SPECIAL ASSESSMENT DEBT(CONTINUED): 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. Ol-01. These bonds were issued under the 1915 Improvement Bond Act to provide funds for public improvements in the respective assessment districts. Debt service requirements to maturity are as follows: Year Ending June 30, Principal Interest Total 2009 $ 175,000 $ 166,336 $ 341,336 2010 185,000 159,355 344,355 2011 195,000 151,755 346,755 2012 205,000 143,550 348,550 2013 215,000 134,408 349,408 2014-2018 945,000 525,460 1,470,460 2019-2023 770,000 306,701 1,076,701 2024-2028 660,000 132,419 792,419 2029 150,000 4,031 154,031 $ 3,500,000 $ 1,724,015 $ 5,224,015 As of June 30, 2008,the principal amounts to be repaid by each assessment district to pay off the loans from the Financing Authority are as follows: Assessment District 94-2 $ 520,000 Assessment District 94-3 960,000 Assessment District Ol-1 2,020,000 $ 3,500,000 See independent auditors' report. - 100 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 14. SPECIAL ASSESSSMENT DEBT(CONTINUED): Assessment District 98-1 Limited Obligation Refunding Improvement Bonds The bonds were issued in an original amount of $2,955,000 in February 2004, to redeem and defease the outstanding limited obligation improvement bonds of Assessment District No. 98-1, which were issued in 1998. The bonds are secured by unpaid assessments on parcels within the District. Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the scheduled debt service requirements are to be included on the regular county tax bills for the assessed parcels for which there are unpaid assessments. Interest rates vary from 1.5% to 5.1% with interest payable semi-annually on March 2 and September 2, with principal maturing annually on September 2. Debt service requirements to maturity are as follows: Year Ending June 30, Principal Interest Total 2009 $ 65,000 $ 37,186 $ 102,186 2010 65,000 35,025 100,025 2011 70,000 32,575 102,575 2012 70,000 29,863 99,863 2013 75,000 26,888 101,888 2014-2018 425,000 79,544 504,544 2019-2021 100,000 2,549 102,549 $ 870,000 $ 243,630 $ 1,113,630 Community Facilities District No. 2005-1 The bonds were issued in an original amount of$50,000,000 in May 2006, to construct and acquire certain public facilities 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 payable semi-annually on March 1 and September 1, with principal maturing annually on September 1. See independent auditors' report. - 101 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 14. SPECIAL ASSESSSMENT DEBT(CONTINUED): Community Facilities District No. 2005-1 (Continued) In May 2007, the 2007 Bonds were issued in the amount of $17,915,000 pursuant to the Bond Indenture in May 2006, as supplemented by a First supplemental Indenture in May 2007, to provide construct and acquire certain public facilities of benefit to the District, provide capitalized interest, and pay the costs of issuance of the 2007 Bonds. The bonds are secured by and payable, on parity with the bonds issued in May 2006 for $50,000,000, 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 3.875% to 5.20% with interest payable semi-annually on March 1 and September l, with principal maturing annually on September 1. Debt service requirements to maturity are as follows: Year Ending 3une 30, Principal Interest Total 2009 $ 825,000 $ 3,462,259 $ 4,287,259 2010 1,165,000 3,422,219 4,587,219 2011 1,210,000 3,373,361 4,583,361 2012 1,260,000 3,320,818 4,580,818 2013 1,310,000 3,264,628 4,574,628 2014-2018 7,515,000 15,339,701 22,854,701 2019-2023 9,525,000 13,276,441 22,801,441 2024-2028 12,205,000 10,504,399 22,709,399 2029-2033 15,795,000 6,818,120 22,613,120 2034-2038 17,105,000 2,055,230 19,160,230 $ 67,915,000 $ 64,837,176 $ 132,752,176 See independent auditors' report. - 102 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 14. SPECIAL ASSESSSMENT DEBT(CONTINUED): Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds, Series 2007 In March 2007, the City of Palm Desert issued $29,430,000 Limited Obligation Improvement Bonds. The proceeds of the Bonds will be used to finance certain infrastructure improvements within the City's Section 29 Assessment District (No. 2004-02). 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. The bonds consist of Serial Bonds in the amount of $6,870,000 with interest ranging from 4.00%to 4.70%payable semiannually on March 2 and September 2. Bond maturities begin September 2, 2009, and continue annually through 2019. Term bonds in the amount of $2,525,000 carry an interest rate of 4.75% and mature September 2, 2022. Term bonds in the amount of$5,110,000 carry an interest rate of 5.05% and mature September 2, 2027. Term bonds in the amount of$14,925,000 carry an interest rate of 5.10%and mature September 2, 2037. Debt service requirements to maturity are as follows: Year Ending June 30, Principal Interest Total 2009 $ - $ 1,437,860 $ 1,437,860 2010 505,000 1,427,760 1,932,760 2011 525,000 1,407,160 1,932,160 2012 545,000 1,385,760 1,930,760 2013 570,000 1,363,175 1,933,175 2014-2018 3,220,000 6,421,108 9,641,108 2019-2023 4,030,000 5,590,868 9,620,868 2024-2028 5,110,000 4,476,263 9,586,263 2029-2033 6,535,000 3,005,813 9,540,813 2034-2038 8,390,000 1,112,563 9,502,563 $ 29,430,000 $ 27,628,330 $ 57,058,330 See independent auditors' report. - 103 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 14. SPECIAL ASSESSSMENT DEBT(CONTINUED): 2008 Special Tax Refunding Bonds In December 2007, the City of Palm Desert Communities Facilities District No. 91-1 (Indian Ridge Public Improvements) issued $10,935,000 of Special Tax Refunding Bonds, Series 2008 to refund and defease all the outstanding $16,260,000 principal amount of the Palm Desert Financing Authority 1997 Revenue Bonds. These bonds were issued pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5, of the Government Code of the State of California. Debt service reyuirements to maturity are as follows: Year Ending June 30, Principal Interest Total 2009 $ 1,665,000 $ 42'7,903 $ 2,092,903 2010 855,000 301,385 1,156,385 2011 880,000 274,920 1,154,920 2012 905,000 247,026 1,152,026 2013 935,000 217,813 1,152,813 2014-2018 5,170,000 583,336 5,753,336 2019-2021 525,000 31,900 556,900 $ 10,935,000 $ 2,084,283 $ 13,019,283 Bond Reserve Requirements At June 30, 2008, the fund balance reserve requirements and actual reserve balances were as follows: Requirement Actual Assessment District 98-1 $ 87,000 $ 142,152 2003 Financing Authority Revenue Bonds 310,594 337,735 CFD 2005-1 Special Tax Bonds 4,587,219 4,654,779 Assessment District 29 1,933,175 1,963,935 2008 Special Tax Refunding Bonds 1,093,500 1,100,415 See independent auditors' report. - 104 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 15. CONDUIT DEBT OBLIGATIONS: 2003 Series A-$22,310,000 Lease Revenue Bonds In December 2003, the Palm Desert Financing Authority (Authority) issued $22,310,000 in Lease Revenue Bonds. The proceeds of the Bonds were used to: a) finance the construction of a County animal shelter and related facilities located in the unincorporated area of Thousand Palms, California; b) finance construction of certain County medical clinic facilities located in Mecca, California; c) refund the Palm Desert Financing Authority Lease Revenue Bonds Series 1996; d) acquire a debt service reserve insurance policy; e) fund capitalized interest on the bonds; and � pay costs of issuance of the bonds. The Authority will lease sites relating to each project from the County of Riverside (County) pursuant to a Site Lease dated as of December 1, 2003, and will lease back to the County the Sites and the Facilities pursuant to a Facilities Lease dated December l, 2003. Under the Lease, the County will pay to the Trustee Base Rental Payments in the amount equal to the scheduled debt service of the Bonds. The Authority will assign its right to receive the Base Rental Payments to the Trustee for the benefit of the owners of the bonds. The debt service on the bonds is to be paid solely from lease payments made by the County. The Authority has no obligation to make the debt service payments in the event that the County is not able to make the required base rental payments. As of June 30, 2008, the outstanding amount was $20,365,000. 16. OTHER DISCLOSURERS: The Palm Desert Recreational Facilities Corporation has a net asset deficit of$452,047, which will be eliminated by increasing revenues through banquet reservations. See independent auditors' report. - 105 - CITY OF PALM DESERT NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2008 17. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS: Construction Commitments Current Year Spent Remaining Project Spent to Date Commitment Parks $ 89,664 $ 89,664 $ 195,821 Low income housing 4,064,433 10,100,119 3,791,448 Street resurfacing 27,644 27,644 110,664 Building construction 5,527,239 8,084,114 1,671,103 Street improvements 4,199,773 4,809,899 1,929,200 Freeway on-ramp improvements 284,562 1,140,282 493,911 Bridge consturction 256,957 463,109 129,473 Residential street construction 9,757,868 9,757,868 2,749,781 Sewer construction 226,174 433,242 140,210 Parking lot construction - 1,558,073 599,747 24,434,314 36,464,014 11,811,358 Miscellaneous non construction 1,259,015 2,354,981 5,198,773 $ 25,693,329 $ 38,818,995 $ 17,010,131 18. CONTINGENCIES: 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 financial position of the City. The City incurs various costs under federal and state grant reimbursement programs and records the related revenue and receivables for grant claims. Such grant claims are subject to final audit by federal and state agencies. See independent auditors' report. - 106 - Schedule 1 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fundbalance,July 1 $ 76,114,399 $ 76,114,399 $ 76,114,399 $ - Resources(inflows): Taxes 42,620,000 42,620,000 40,876,935 (1,743,065) Licenses and permits 2,100,000 1,600,000 1,180,020 (419,980) Intergovernmental revenues 2,471,100 2,471,100 5,193,161 2,722,061 Charges of services 500,000 1,000,000 1,190,725 190,725 Fines and forfeitures 175,000 175,000 105,365 (69,635) Investment earnings 2,650,000 2,650,000 4,571,147 1,921,147 Miscellaneous 480,000 480,000 866,843 386,843 Transfers from other funds 1,400,000 1,400,000 1,101,610 (298,390) Total resources 52,396,100 52,396,100 55,085,806 2,689,706 Charges to appropriations(outflows): Current: General government 15,126,596 17,767,739 16,306,128 1,461,611 Public safety 19,686,625 18,412,806 17,674,051 738,755 Public works 9,064,500 11,194,387 10,153,794 1,040,593 Parks,recreation and culture 5,728,802 5,105,335 4,572,695 532,640 Capital outlay - 531,589 531,589 Transfers to other funds 2,625,000 2,652,225 2,142,660 509,565 Total charges to appropriations 52,231,523 55,664,081 51,380,917 4,283,164 Excess of resources over(under) charges to appropriations 164,577 (3,267,981) 3,704,889 6,972,870 Fund balance,June 30 $ 76,278,976 $ 72,846,418 $ 79,819,288 $ 6,972,870 See independent auditors'report and note to required supplementary information. - 107- Schedule 2 C1TY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PROP A FIRE TAX SPECIAL REVENUE FUND For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July 1 $ 3,079,909 $ 3,079,909 $ 3,079,909 $ - Resources(inflows): Taxes 4,400,000 4,400,000 5,516,542 1,116,542 Special assessments collected 2,550,000 2,550,000 1,620,168 (929,832) Intergovernmental revenues 719,000 719,000 662,882 (56,118) Investment earnings - - 165,729 165,729 Transfers from other funds 1,852,000 1,852,000 1,650,000 (202,000) Total resources 9,521,000 9,521,000 9,615,321 94,321 Charges to appropriations(outflows): Current: Public safety 8,855,671 8,912,866 8,942,808 (29,942) Capital outlay - 185,302 80,132 105,170 Total charges to appropriations 8,855,671 9,098,168 9,022,940 75,228 Excess of resources over(under) charges to appropriations 665,329 422,832 592,381 169,549 Fund balance,June 30 $ 3,745,238 $ 3,502,741 $ 3,672,290 $ 169,549 See independent auditors'report and note to required supplementary information. - 108- CITY OF PALM DESERT NOTE TO REQUIRED SUPPLEMENTARY INFORMATION June 30, 2008 BUDGETS AND BUDGETARY ACCOUNTING: The City used the following procedures in establishing the budgetary data reported in the financial statements: 1. Before the beginning of the fiscal year, the City Manager submits to the City Council a proposed budget for the year commencing the following July 1. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is subsequently adopted through passage of a resolution. 4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level, which is the legal level of control. For other funds, expenditures cannot exceed the total amount budgeted for each fund, which is the legal level of control. The City Manager is authorized to transfer appropriations (without council approval) between an object of a General Fund Department. The City Council approves all other changes. Annual appropriation amounts lapse at year-end. 5. Encumbrances and continuing appropriations are rebudgeted as of July l, by Council action. 6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project length budgets and debt service funds that are not budgeted as effectively budgetary control is achieved through debt indenture provisions. The following special revenue funds had legally adopted budgets during the current fiscal year: Prop A Fire Tax Traffic Safety Gas Tax Housing Mitigation Fees Community Development Block Grant Fl Paseo Assessment District ` cie Business License Landscape and Lighting DistrictNo. 1-17 See independent auditors' report. - 109 - THIS PAGE INTENTIONALLY LEFT BLANK - 110 - GENERAL FUND The General Fund is used to account for all financial resources traditionally associated with government, except those required to be accounted for in another fund. It is the primary operating fund that includes the operating budgets for all the departments and the majority of the City's tax revenues. - 111 - Schedule 3 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERALFUND For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July 1 $ 76,114,399 $ 76,114,399 $ 76,114,399 $ - Resources(inflows): Taxes: Property taxes 5,500,000 5,500,000 5,648,627 148,627 Property transfer tax 900,000 900,000 604,236 (295,764) Property tax in lieu 3,600,000 3,600,000 3,685,215 85,215 Timeshare mitigation fee 750,000 750,000 881,350 131,350 Sales ta� 19,500,000 19,500,000 ]7,195,743 (2,304,257) Business license tax 1,430,000 1,400,000 1,311,090 (88,910) Job valuation fees 40,000 40,000 38,872 (1,128) Transient occupancy tax 8,150,000 8,150,000 8,605,714 455,714 Franchises 2,750,000 2,750,000 2,887,727 137,727 Penalties and interest on taxes - 30,000 18,361 (11,639) Total Taxes 42,620,000 42,620,000 40,876,935 (1,743,065) Licenses and Permits: Buildingpermits 2,100,000 1,500,000 974,676 (525,324) Grading - - 620 620 Valet parking permits - 700 700 Encroachmentpermits - 50,000 131,340 81,340 Miscellaneous permits - 2,650 2,650 Business regulatory permits - 50,000 70,034 20,034 Total Licenses and Permits 2,100,000 1,600,000 1,180,020 (419,980) Intergovernmental Revenues: 7,053 Federal grants - - 7,053 State grants - - 10,373 10,373 Motor vehicle in-;lieu fees 400,000 400,000 220,785 (179,215) Monthly parking ball - - 21,143 21,143 Reimbursement RDA costs 1,771,100 1,771,100 1,585,225 (185,875) Other reimbursements 300,000 300,000 3,348,582 3,048,582 Total Intergovernmental Revenues 2,471,100 2,471,100 5,193,161 2,722,061 See independent auditors'report. (Continued) - 112- Schedule 3 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERALFUND (CONTINUED) For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Resources(inflows)(Continued): Charges for Services: Subdivision fees $ - $ 500,000 $ 465,360 $ (34,640) Zoning fees - - 102,484 102,484 Plan check fees 500,000 500,000 562,930 62,930 Sale of maps and publications - - 21,369 21,369 Microfilm fees - - 18,346 18,346 _ 20,236 20,236 Other fees - � Total Charges for Services 500,000 1,000,000 1,190,725 190,725 Fines and Forfeitures: 37,535 (37,465) Vehicle code fines 75,000 75,000 Municipal court fines 100,000 100,000 67,830 (32,170) Total Fines and Forfeitures 175,000 175,000 105,365 (69,635) Investment Earnings: Interest income 1,950,000 1,950,000 3,255,223 1,305,223 Interest on advances 700,000 700,000 1,150,492 450,492 Interest on notes receivable - - 165,432 165,432 Total Investment Earnings 2,650,000 2,650,000 4,571,147 1,921,147 Miscellaneous Revenues: _ 200 200 Code compliance ' Strong motion instrument fee - - 15,531 15,531 Special investigation fee - - 2,298 2,298 Certificate of compliance fee ' - 1'775 �'��� Nuisanceabatementtax - - 52,153 52,153 Abandoned vehicle abatement - 62,552 62,552 Rental income 300,000 300,000 418,998 118,998 Other revenue 180,000 180,000 313,336 133,336 Total Miscellaneous Revenues 480,000 480,000 866,843 386,843 Transfers from other funds 1,400,000 1,400,000 1,101,610 (298,390) Amounts Available for Appropriation 52,396,100 52,396,100 55,085,806 2,689,706 See independent auditors'report. (Continued) - 113- Schedule 3 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERALFUND (CONTINUED) For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Charges to appropriations(outflows): General Government-Departmental: City council $ 403,814 $ 445,814 $ 442,643 $ 3,171 City clerk 521,904 581,904 580,562 1,342 Legislative advocacy 63,000 63,000 41,427 21,573 City attorney 216,000 216,000 216,000 - Legal special services 273,000 883,000 871,778 11,222 City manager 700,907 806,075 804,174 1,901 Community services 1,786,800 1,899,747 1,872,934 26,813 Finance 1,812,454 1,862,015 1,861,970 45 Auditing 80,000 103,510 42,760 60,750 Human resources 855,100 855,100 749,129 105,971 General services 580,300 654,238 654,110 128 Data processing 1,400,140 1,429,844 1,340,120 89,724 Unemployment insurance 25,000 25,000 11,618 13,382 Insurance 648,500 648,500 371,881 276,619 Community promotions 2,112,690 3,023,986 2,532,637 491,349 Community development 1,058,950 1,095,612 9l 8,435 177,177 Office of energy management 440,700 706,602 636,434 70,168 Marketing 1,172,337 1,387,161 1,319,621 67,540 Total General Government-Departmental 14,151,596 16,687,108 15,268,233 1,418,875 General Government-Nondepartmental: Contributions to other agencies 975,000 1,080,631 1,037,895 42,736 Public Safety: Police services 14,436,425 12,888,711 12,786,719 101,992 Animal regulation 240,000 240,000 224,702 15,298 Traffic safety 628,000 802,374 477,336 325,038 �` ���lopmentservices 1,144,800 1,158,764 924,439 234,325 ��ngandsafety 3,237,400 3,322,957 3,260,855 62,102 Total Public Safety 19,686,625 18,412,806 17,674,051 738,755 See independent auditors'report. (Continued) - 114- Schedule 3 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERALFUND (CONTINUED) For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Charges to appropriations(outflows)(Continued): Public Works: Administration $ 3,286,900 $ 3,384,829 $ 3,329,792 $ 55,037 Street maintenance 2,186,050 2,175,966 2,133,448 42,518 Street resurfacing 1,750,000 3,559,900 3,342,542 217,358 Curb and gutter 200,000 200,716 198,779 1,937 Parking lot 100,000 ]00,716 284 100,432 Storm drain 100,000 100,000 7,637 92,363 Stripping 150,000 346,500 - 346,500 Corporate yard 83,500 78,623 70,801 7,822 Equipment 430,000 479,673 353,388 126,285 Building maintenance 644,350 640,018 598,276 41,742 Portola community center 83,700 77,446 75,615 1,831 Storm water permit 50,000 50,000 43,232 6,768 Total Public Works 9,064,500 11,194,387 10,153,794 1,040,593 Parks,Recreation and Culture: Park maintenance 1,469,918 717,881 657,782 60,099 Civic center park 1,384,034 1,374,095 1,368,513 5,582 Landscape service 2,165,750 2,302,917 1,874,321 428,596 Visitors center 709,100 710,442 672,079 38,363 Total Parks,Recreation and Culture 5,728,802 5,105,335 4,572,695 532,640 Capital Outlay-Departmental - 531,589 531,589 - Transfers to other funds 2,625,000 2,652,225 2,142,660 509,565 Amounts Charged to Appropriation 52.231,523 55,664,081 51,380,917 4,283,164 Excess of resources over(under) charges to appropriations 164,577 (3,267,981) 3,704,889 6,972,870 Fi�*��ha�a;ic�. T�mc 3Q $ 76,278,976 $ 72,846,418 $ 79,819,288 $ 6,972,870 See independent auditors'report. - 115- THIS PAGE INTENTIONALLY LEFT BLANK - 116 - OTHER GOVERNMENTAL FUNDS COMBINING STATEMENTS - 117 - Schedule 4 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS June 30,2008 Total Special Debt Capital Other Revenue Service Projects Governmental Funds Fund Funds Funds ASSETS: Pooled cash and investments $ 40,909,505 $ 93,924 $ 33,043,482 $ 74,046,911 Receivables: Accounts 135,054 - 706,265 841,319 Assessments - 2,699,594 - 2,699,594 Interest 165 - 165,456 165,621 Loans 31,092 - - 31,092 Prepaid costs - - 975 975 Deposits - - 1,230 1,230 Due from other governments 995,437 7,085 1,623,404 2,625,926 Advances to other funds 654,000 - 12,765,000 13,419,000 Restricted assets: Cash and investments with fiscal agent 3,415,635 - 32,513,496 35,929,131 TOTAL ASSETS $ 46,140,888 $ 2,800,603 $ 80,819,308 $ 129,760,799 L[ABILITIES AND Fi.JND BALANCES LIAB[LITIES: Accounts payable $ 1,825,943 $ - $ 2,302,990 $ 4,128,933 Accrued liabilities 96,335 - 3,421 99,756 Due to other funds 216,455 - - 216,455 Unearned revenues 945,671 - 107,651 1,053,322 Deferred revenue 37,695 2,699,594 1,819,356 4,556,645 Deposits payable 370,168 - 327,952 698,120 TOTAL LIABILITIES 3,492,267 2,699,594 4,561,370 10,753,231 FUND BALANCES: Reserved for: Encumbrances 4,660,693 - 5,t 14,993 9,775,686 Continuing appropriation 16,987,909 - 13,668,154 30,656,063 Prepaids and deposits - - 2,205 2,205 Advances to other funds 654,000 - 12,765,000 13,419,000 Reserve requirement 18,487 - - 18,487 Unreserved: Designated for: Special revenue purposes 20,346,422 - - 20,346,422 Debt service - 101,009 - 101,009 Capital outlay - - 44,707,586 44,707,586 Undesignated (18,890) - - (18,890) TOTAL FL1ND BALANCES 42,648,621 101,009 76,257,938 119,007,568 TOTAL L[ABILITIES AND FLJND BALANCES $ 46,140,888 $ 2,800,603 $ 80,819,308 $ 129,760,799 See independent auditors'report. - 118- Schedule 5 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS For the year ended June 30,2008 Total Special Debt Capital Other Revenue Service Projects Governmental Funds Fund Funds Funds REVENUES: TaYes $ 4,010,302 $ - $ - $ 4,010,302 Special assessments collected 264,877 175,746 - 440,623 Licenses and permits - - 273,157 273,157 Intergovernmental revenues 3,725,087 - 8,609,588 12,334,675 Rental income 4,702,823 - - 4,702,823 Investment earnings 2,252,978 3,288 3,988,237 6,244,503 Fines and forfeitures 149,492 - - 149,492 Miscellaneous 1,197,266 - 225,276 1,422,542 TOTAL REVENUES 16,302,825 179,034 13,096,258 29,578,117 EXPENDITURES: Current: General government 9,727,182 1,896 4,668,123 14,397,201 Public safety 60,884 - - 60,884 Public works 668,664 - 12,114,263 12,782,927 Capital outlay 8,087,092 - 32,538,025 40,625,117 Debt service: Principal retirement - 35,000 - 35,000 Interest and fiscal charges - 137,757 - 137,757 TOTAL EXPENDITURES 18,543,822 174,653 49,320,411 68,038,886 EXCESS OF REVENUES OVER ([1NDER)EXPENDITURES (2,240,997) 4,381 (36,224,153) (38,460,769) OTHER FINANCING SOURCES(USES): Transfers in 3,554,343 - 3,126,258 6,680,601 Transfers out (2,730,329) - (18,831) (2,749,160) TOTAL OTHER FINANCING SOURCES(USES) 824,014 - 3,107,427 3,931,441 NET CHANGE IN FLJND BALANCES (1,416,983) 4,381 (33,116,726) (34,529,328) FtJND BALANCES-BEGINNING OF YEAR 44,065,604 96,628 109,374,664 153,536,896 FLJND BALANCES-END OF YEAR $ 42,648,621 $ 101,009 $ 76,257,938 $ 119,007,568 See independent auditors'report. - 119- THIS PAGE INTENTIONALLY LEFT BLANK - 120 - OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE Special Revenue Funds are used to account for proceeds of specific revenue sources other than expendable trust that are legally restricted to expenditures for specific purposes. Traffic Safety Fund - Traffic and court fines are collected in these funds. A transfer from this Fund to the General Fund is made at the end of the fiscal year by council action to be applied toward the eligible expenditures permitted by law. Gas Tax Fund - Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State. These funds are restricted to expenditure for transit and street-related purposes. Measure A Fund - In 1988, Riverside County voters approved a half-cent sales tax, known as Measure A, to fund a variety of highway improvements, local street and road maintenance, commuter assistance and specialized transit projects. This fund is used to collect this tax, and pursuant to the provision of Measure A (Ordinance No. 88-1 of the County of Riverside) it is restricted for local street and road expenditures only. Housin� Miti�ation Fee Fund - This fund is used to account for fees collected from construction of commercial and office buildings for low and moderate income mitigation purposes to be used strictly for projects and programs that benefit the low and moderate income households. Communitv Develo�ment Block Grant Fund - This fund is used to account for the receipts and expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development. New Construction Tax Fund - This fund is used to account for tax collected upon application to the City for a building permit from every person/entity for the construction of any new building, addition or trailer space in the city according to a fee schedule. Its use is restricted for the acquisition and development of public facilities such as parks, playgrounds and public structures. Planned Draina�e Fund -This fund is used to account for off-site drainage fees based on an established fee schedule collected prior to approval of the final map in the case of land being subdivided or prior to the issuance of a building permit in the case of construction or improvement of subdivided land. Park and Recreation Facilities Fund - This fund is used to account for fees collected for residential and subdivision developments collected either at the time grading permits are paid or prior to the approval of the final map. Its use is restricted for expenditures related to park development, maintenance and equipment. Traffic Signals Fund - This fund is used to account for fees collected for residential, commercial and industrial developments either at the time grading permits are paid or prior to the approval of the final map. Its use is restricted for expenditures related to the acquisition and maintenance of traffic signals. Recvclin�nd - This fund is used to account for resources resulting from lower landfill tipping fees of$8.50 per ton, which took effect in July 1996. Due to limited landfill resources, it will be used for the implementation of appropriate long-range plans to be determined by the City Council for municipal solid waste disposal. - 121 - THIS PAGE INTENTIONALLY LEFT BLANK - 122 - OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE (CONTINUED) Public Safetv Police Grants Fund - This fund is used to account for grants received from the U.S. Department of Justice under the Local Law Enforcement Block Grants Program for the purpose of purchasing equipment related to public safety. El Paseo Assessment District Fund - This fund is used to collect assessments on all business establishments located within the boundaries set for the El Paseo parking and business improvement area based on a fee schedule established for the various types of businesses. Collections are made in the same manner and at the same time as the City business license fees. Proceeds from all charges are used for the promotion of business activities in the area. Air Qualitv Management Fund - This fund accounts for receipts from South Coast Air Quality Management District, forty-five percent of which is disbursed to the Coachella Valley Association of Governments. The remaining fifty-five percent are spent for programs that promote the goal of attaining Federal and State air quality standards. City-Wide Business License Fund - This fund accounts for receipts received from the College of the Desert Alumni Association Fair collected from all street fair vendors at $2.00 per day for each space. Fifty percent of the proceeds are spent for city-wide business promotion and the other fifty percent is transferred to the General Fund for partial business licensing cost recovery. Various Landscape and Li�hting District Funds - These funds are used to account for expenditures and receipts of property taxes and service fees levied to the property owners in the various landscaping and lighting districts, which were formed to provide landscaping and street lighting maintenance. Individual landscaping and lighting funds are set up for Districts No. 1 through 17. AIPP Maintenance Fund - This fund is used to account for monies set aside to maintain the artwork in the City of Palm Desert. Child Care Pro�ram Fund - This fund is used to collect funds from developers for the purpose of providing child care programs. Golf Course Maintenance Fund - This fund is used to offset the cost of capital improvements, equipment purchases, perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are collections from the IROC and Standard Vacation Ownership, Inc. time-share project. Fire Facilities Restoration Fund - This fund is used to collect funds from developers for the purpose of construction, restoration and purchase of equipment for fire stations within the City. Redevelopment A�ncy Housin� Authoritv Fund - This fund is used to account for revenues and expenditures related to rental units owned by the Housing Authority. - 123 - CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS June 30,2008 Housing Traffic Mitigation Safety Gas Ta�c Measure A Fee ASSETS: Pooled cash and investments $ - $ 800,227 $ 13,516,535 $ 1,939,036 Receivables: Accounts - - - - [nterest - - - - Loans - - - - Due from other governments 33,143 297,545 537,038 - Advances to other funds - - - - Restricted assets: Cash and investments with fiscal agent - - - - TOTAL ASSETS $ 33,143 $ 1,097,772 $ 14,053,573 $ 1,939,036 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ - $ - $ 36,506 $ - Accrued liabilities - - - - Due to other funds - 216,455 - - Unearned revenues - 800,227 26,222 - Deferred revenue - - 6,603 - Deposits payable - - - - TOTAL LIABILITIES - 1,016,682 69,331 - FUND BALANCES: Reserved for: Encumbrances - - 592,774 - Continuing appropriation - - 10,741,686 - Advances to other funds - - - - Reserve requirement - - - - Unreserved: Designated for: Specialrevenue purposes 33,143 81,090 2,649,782 1,939,036 Undesignated - - - - TOTAL FiJND BALANCES 33,143 81,090 13,984,242 1,939,036 TOTAL LIABiLITIES AND FLJND BALANCES $ 33,143 $ 1,097,772 $ 14,053,573 $ 1,939,036 See independent auditors'report. - 124- Schedule 6 Community New Park and Public Development Construction Planned Recreation Traffic Safety Police Block Grant Tax Drainage Facilities Signals Recycling Grants $ 5,801 $ 50,630 $ 5,360,504 $ 3,257,889 $ 774,449 $ 6,170,055 $ 73,457 - - - - - 128,782 - 31,092 - - - - - - 99,729 - - - - 1,295 3,253 - 654,000 - - - - - $ 136,622 $ 704,630 $ 5,360,504 $ 3,257,889 $ 774,449 $ 6,300,132 $ 76,710 $ 59,234 $ 35,665 $ - $ 88,214 $ - $ 142,237 $ 18,257 - - - - - 1,754 - - - - - - 42,226 47,320 31,092 - - - - - - 90,326 35,665 - 88,214 - 186,217 65,577 155,350 323 50,602 151,522 - 110,889 30,023 - 6,473 - 2,959,242 515,000 480,000 - - 654,000 - - - - - (109,054) 8,169 5,309,902 58,911 259,449 5,523,026 - - - - - - - (18,890) 46,296 668,965 5,360,504 3,169,675 774,449 6,113,915 11,133 $ 136,622 $ 704,630 $ 5,360,504 $ 3,257,889 $ 774,449 $ 6,300,132 $ 76,710 (Continued) - 125- CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS (CONTINUED) June 30,2008 Landscape El Paseo Air City Wide and Lighting Assessment Quality Business Districts District Management License Nos. 1 - 17 ASSETS: Pooled cash and investments $ 52,604 $ 209,088 $ 199,634 $ 742,746 Receivables: Accounts - - 1,424 - Interest - - - - Loans - - - - Due from other governments - 15,528 - 7,906 Advances to other funds - - - - Restricted assets: Cash and investments with fiscal agent - - - - TOTAL ASSETS $ 52,604 $ 224,616 $ 201,058 $ 750,652 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 10,331 $ 6,987 $ - $ 46,820 Accrued liabilities - - - - Due to other funds - - - - Unearned revenues - - - - Deferred revenue - - - - Deposits payable - - - - TOTAL LIABILITIES 10,331 6,987 - 46,820 FUND BALANCES: Reserved for: Encumbrances - - 25,000 12,608 Continuing appropriation - 80,000 - - Advances to other funds - - - - Reserve requirement - - - - Unreserved: Designated for: Special revenue purposes 42,273 137,629 U6,058 691,224 Undesignated - - - - TOTAL FLTND BALANCES 42,273 217,629 201,058 703,832 TOTAL LIABILITIES AND FLJND BALANCES $ 52,604 $ 224,616 $ 201,058 $ 750,652 See independent auditors'report. - 126- Schedule 6 Redevelopment Total Fire Agency Other AIPP Child Care Golf Course Facilities Housing Special Revenue Maintenance Program Maintenance Restoration Authority Funds $ 55,090 $ 1,260,759 $ 2,440,556 $ 484,281 $ 3,516,164 $ 40,909,505 - - - - 4,848 135,054 - - - - 165 165 - - - - - 31,092 - - - - - 995,437 - - - - - 654,000 - - - - 3,415,635 3,4i5,635 $ 55,090 $ 1,260,759 $ 2,440,556 $ 484,281 $ 6,936,812 $ 46,140,888 $ 4,235 $ - $ 17,688 $ - $ 1,359,769 $ 1,825,943 - - - - 94,581 96,335 - - - - - 216,455 - � - - - 29,676 945,671 - - - - - 37,695 - - - - 370,168 370,168 4,235 - 17,688 - 1,854,194 3,492,267 35,955 6,223 146,520 - 3,342,904 4,660,693 - - - 484,281 t,721,227 16,987,909 - - - - - 654,000 - - - - 18,487 18,487 14,900 1,254,536 2,276,348 - - 20,346,422 - - - - - (18,890) 50,855 1,260,759 2,422,868 484,281 5,082,618 42,648,621 $ 55,090 $ 1,260,759 $ 2,440,556 $ 484,281 $ 6,936,812 $ 46,140,888 - 127- CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS For the year ended June 30,2008 Housing Traffic Mitigation Safety Gas Tax Measure A Fee REVENUES: Ta�ces $ - $ - $ 2,451,091 $ 233,857 Special assessments collected - - - - Intergovernmental revenues - 890,642 256,781 2,010,000 Rental income - - - - Investmentearnings 2,189 30,122 652,234 65,560 Fines and forfeitures 149,492 - - - Miscellaneous - - 40,215 - TOTAL REVENUES 151,681 920,764 3,400,321 2,309,417 EXPENDITURES: Current: General government - - - 2,010,000 Public safety - - - - Public works - - - - Capital outlay - - 438,455 - TOTAL EXPENDITURES - - 438,455 2,010,000 EXCESS OF REVENUES OVER (IJNDER)EXPENDITURES 151,681 920,764 2,961,866 299,417 OTHER FINANCING SOURCES(USES): Transfers in - - - - Transfers out (128,248) (925,823) - - TOTAL OTHER FINANCING SOURCES(USES) (128,248) (925,823) - - NET CHANGE IN FiJND BALANCES 23,433 (5,059) 2,961,866 299,417 Fi��'�R AI AN('F S- REGINNING OF YEAR 9,710 86,149 11,022,376 1,639,619 FUNU BALANCES-END OF YEAR $ 33,143 $ 81,090 $ 13,984,242 $ 1,939,036 See independent auditors'report. - 128- Schedule 7 Community New Park and Public Development Construction Planned Recreation Traffic Safety Police Block Grant Ta�c Drainage Facilities Signals Recycling Grants $ - $ 311,433 $ 12,960 $ - $ 86,929 $ - $ - 366,367 - - - - 70,351 71,524 4,725 33,149 297,965 177,094 50,734 322,472 2,273 - - - 33,570 - 545,005 - 371,092 344,582 310,925 210,664 137,663 937,828 73,797 456,590 - - - - 524,939 - _ _ _ _ _ - 60,884 - 1,719 168,442 58,179 - - - - 272,214 311,301 120,964 3,446 - 12,859 456,590 273,933 479,743 179,143 3,446 524,939 73,743 (85,498) 70,649 (168,818) 31,521 134,217 412,889 54 - - - - (676,258) - - - - - - (676,258) - - (85,498) 70,649 (168,818) 31,521 (542,041) 412,889 54 131,794 598,316 5,529,322 3,138,154 I,316,490 5,701,026 11,079 $ 46,296 $ 668,965 $ 5,360,504 $ 3,169,675 $ 774,449 $ 6,113,915 $ 11,133 (Continued) - 129- CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS (CONTINUED) For the year ended June 30,2008 Landscape El Paseo Air Ciry Wide and Lighting Assessment Quality Business Districts District Management License Nos. 1 - 17 REVENUES: TaYes $ - $ - $ 46,347 $ 574,745 Special assessments collected 264,877 - - - Intergovernmental revenues - 59,422 - - Rental income - - - - Investment earnings - 10,104 9,274 11,329 Fines and forfeitures - - - - Miscellaneous - - - - TOTAL REVENUES 264,877 69,526 55,621 586,074 EXPENDITURES: Current: General government 249,626 19,982 - - Public safety - - - - Public works - - - 440,324 Capital outlay - - - - TOTAL EXPENDITURES 249,626 19,982 - 440,324 EXCESS OF REVENUES OVER (LTNDER)EXPENDITURES 15,251 49,544 55,621 145,750 OTHER FINANCING SOURCES(USES): Transfers in - - - 42,660 Transfers out - - - - TOTAL OTHER FINANCING SOURCES'(USES) - - - 42,660 NET CHANGE IN Fi1ND BALANCES 15,251 49,544 55,621 188,410 FLJND BALANCES-BEGINNING OF YEAR 27,022 168,085 145,437 515,422 FiIND BALANCES-END OF YEAR $ 42,273 $ 217,629 $ 201,058 $ 703,832 See independent auditors'report. - 130- Schedule 7 Redevelopment Total Fire Agency Other AIPP Child Care Golf Course Facilities Housing Special Revenue Maintenance Program Maintenance Restoration Authority Funds $ - $ 197,399 $ - $ 95,541 $ - $ 4,010,302 - - - - - 264,877 - - - - - 3,725,087 - - - - 4,702,823 4,702,823 3,182 60,281 169,225 22,768 328,298 2,252,978 - - - - - 149,492 - - 578,476 - - 1,197,266 3,182 257,680 747,701 118,309 5,031,121 16,302,825 56,145 26,277 406,745 - 5,976,878 9,727,182 - - - - - 60,884 - - - - - 668,664 - - - - 6,927,853 8,087,092 56,145 26,277 406,745 - 12,904,731 18,543,822 (52,963) 231,403 340,956 118,309 (7,873,610) (2,240,997) 18,830 - - - 3,492,853 3,554,343 - - ��,000,000> - - �z,�3o,329> 18,830 - (1,000,000) - 3,492,853 824,014 (34,133) 231,403 (659,044) 118,309 (4,380,757) (1,416,983) 84,988 1,029,356 3,081,912 365,972 9,463,375 44,065,604 $ 50,855 $ 1,260,759 $ 2,422,868 $ 484,281 $ 5,082,618 $ 42,648,621 - 131 - Schedule 8-A CITY OF PALM DESERT SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL TRAFFIC SAFETY For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July 1 $ 9,710 $ 9,710 $ 9,710 $ - Resources(inflows): Investment earnings 5,000 5,000 2,189 (2,811) Fines and forfeitures 220,000 220,000 149,492 (70,508) Total resources 225,000 225,000 151,681 (73,319) Charges to appropriations(ouCflows): Transfers to other funds 225,000 225,000 128,248 96,752 Total charges to appropriations 225,000 225,000 128,248 96,752 Excess of resources over(under) charges to appropriations - - 23,433 23,433 Fund balance,June 30 $ 9,710 $ 9,710 $ 33,143 $ 23,433 See independent auditors'report. - 132- Schedule 8-B CITY OF PALM DESERT SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GAS TAX For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July 1 $ 86,149 $ 86,149 $ 86,149 $ - Resources(inflows): Intergovernmental revenues 1,330,000 1,330,000 890,642 (439,358) Investment earnings 20,000 20,000 30,122 ]0,122 Total resources 1,350,000 1,350,000 920,764 (429,236) Charges to appropriations(outflows): Current: Public works 250,000 250,000 - 250,000 Transfers to other funds 1,100,000 1,100,000 925,823 174,177 Total charges to appropriations 1,350,000 1,350,000 925,823 424,177 Excess of resources over(under) charges to appropriations - - (5,059) (5,059) Fund balance,June 30 $ 86,149 $ 86,149 $ 81,090 $ (5,059) See independent auditors'report. - 133- Schedule 8-C CITY OF PALM DESERT SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL HOUSING MITIGATION FEES For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July 1 $ 1,639,619 $ 1,639,619 $ 1,639,619 $ - Resources(inflows): Taxes 240,000 240,000 233,857 (6,143) Intergovernmental revenues 2,790,000 2,790,000 2,010,000 (780,000) Investment earnings 30,000 30,000 65,560 35,560 Total resources 3,060,000 3,060,000 2,309,417 (750,583) Charges to appropriations(outflows): Current: General government - 2,010,000 2,010,000 - Excess of resources over(under) charges to appropriations 3,060,000 1,050,000 299,417 (750,583) Fund balance,June 30 $ 4,699,619 $ 2,689,619 $ 1,939,036 $ (750,583) See independent auditors'report. - 134- Schedule 8-D CITY OF PALM DESERT SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July 1 $ 131,794 $ 131,794 $ 131,794 $ - Resources(inflows): Intergovernmental revenues 240,000 240,000 366,367 126,367 [nvestment earnings 6,500 6,500 4,725 (1,775) Total resources 246,500 246,500 371,092 124,592 Charges to appropriations(outflows): Current: General government 351,500 782,191 456,590 325,601 Total charges to appropriations 351,500 782,191 456,590 325,601 Excess of resources over(under) chargestoappropriations (105,000) (535,691) (85,498) 450,193 Fund balance,June 30 $ 26,794 $ (403,897) $ 46,296 $ 450,193 See independent auditors'report. - 135- Schedule 8-E CITY OF PALM DESERT SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL EL PASEO ASSESSMENT DISTRICT For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July i $ 27,022 $ 27,022 $ 27,022 $ - Resources(inflows): Special assessments collected 260,000 260,000 264,877 4,877 Total resources 260,000 260,000 264,877 4,877 Charges to appropriations(outflows): Current: General government 260,000 260,000 249,626 10,374 Total charges to appropriations 260,000 260,000 249,626 10,374 Excess of resources over(under) charges to appropriations - - 15,251 15,251 Fund balance,June 30 $ 27,022 $ 27,022 $ 42,273 $ 15,251 See independent auditors'report. - 136- Schedule 8-F CITY OF PALM DESERT SCHEDULE OF REVENUES,EXPENDITURES AND CHANGESINFUND BALANCE-BUDGET AND ACTUAL CITY WIDE BUSINESS LICENSE For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July 1 $ 145,437 $ 145,437 $ 145,437 $ - Resources(inflows): T�es 50,000 50,000 46,347 (3,653) Investment earnings 5,000 5,000 9,274 4,274 Total resources 55,000 55,000 55,621 621 Charges to appropriations(outflows): Current: General government 51,000 76,000 - 76,000 Total charges to appropriations 51,000 76,000 - 76,000 Excess of resources over(under) charges to appropriations 4,000 (21,000) 55,621 76,621 Fund balance,June 30 $ 149,437 $ 124,437 $ 201,058 $ 76,621 See independent auditors'report. - 137- Schedule 8-G CITY OF PALM DESERT SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL LANDSCAPE AND LIGHTING DISTRICTS NOS. 1 - 17 For the year ended June 30,2008 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Fund balance,July 1 $ 515,422 $ 515,422 $ 515,422 $ - Resources(inflows): Taxes 587,431 587,431 574,745 (12,686) Investment earnings - 11,329 11,329 Transfers from other funds 75,000 75,000 42,660 (32,340) Total resources 662,431 662,431 628,734 (33,697) Charges to appropriations(outflows): Current: Public works 543,745 593,366 440,324 153,042 Total charges to appropriations 543,745 593,366 440,324 153,042 Excess of resources over(under) charges to appropriations 118,686 69,065 188,410 119,345 Fund balance,June 30 $ 634,108 $ 584,487 $ 703,832 $ 119,345 See independent auditors'report. - 138- OTHER GOVERNMENTAL FUNDS -DEBT SERVICE City Hi�hlands Under�rounding Fund - This fund is used to account for the resources and payment for debt related to Highlands Undergrounding. � - 139 - Schedule 9 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER DEBT SERVICE FUND June 30,2008 Total City Other Highlands Debt Service Undergrounding Fund ASSETS: Pooled cash and investments $ 93,924 $ 93,924 Receivables: Assessments 2,699,594 2,699,594 Due from other governments 7,085 7,085 TOTAL ASSETS $ 2,800,603 $ 2,800,603 LIABILITIES AND FUND BALANCES LIAB[LITIES: Deferred revenue $ 2,699,594 $ 2,699,594 TOTAL LIABILITIES 2,699,594 2,699,594 FUND BALANCES: Unreserved: Designated for: Debt service 101,009 101,009 TOTAL FCJND BALANCES 101,009 101,009 TOTAL LIAB[LITIES AND FLJND BALANCES $ 2,800,603 $ 2,800,603 See independent auditors'report. - 140- Schedule 10 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OTHER DEBT SERVICE FUND For the year ended June 30,2008 Total City Other Highlands Debt Service Undergrounding Fund REVENUES: Special assessments collected $ 175,746 $ 175,'746 Investment earnings 3,288 3,288 TOTAL REVENUES 179,034 179,034 EXPENDITURES: Current: General government 1,896 1,896 Debt service: Principal retirement 35,000 35,000 Interest and fiscal charges 137,757 137,757 TOTAL EXPENDITURES 174,653 174,653 EXCESS OF REVENUES OVER (LJNDER)EXPENDITURES 4,381 4,381 FUND BALANCES-BEGINNING OF YEAR 96,628 96,628 FLIND BALANCES-END OF YEAR $ 101,009 $ 101,009 See independent auditors'report. - 141 - THIS PAGE INTENTIONALLY LEFT BLANK - 142 - OTHER GOVERNMENTAL FUNDS - CAPITAL PROJECTS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities, except for those financed by certain Special Revenue and Enterprise funds. Arts in Public Places Fund - This fund is used to account for fees collected from residential, commercial and public facilities development except for street and drainage projects. Its use is restricted for acquisition, installation, improvement and maintenance of artwork to be displayed in the City, the administration of the program and community public art education programs. Capital Projects Reserve Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and development of public facilities, infrastructure and equipment. Drainage Facilities Fund - This fund is used to account for resources and expenditures for planned capital improvement projects that are under the Master Drainage Plan. Park and Recreational Facilities Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to park development, maintenance and equipment. Si�nalization 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. Buildin s� - This fund is used to account for resources and expenditures for capital improvement projects that are related to the improvement and maintenance of public facilities and structures. Library Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the purchase of library resources for the Multi-Agency Library. CFD Indian Ridge Fund - This fund is used to account for the construction of public improvements from bond proceeds Series A resulting from the creation of this District. Snecial Assessment District Funds - This fund is used to account for the construction of public improvements from proceeds resulting from the creation of various assessment Districts. Assessment District No. 94-3 Merano Town Center Parking Lot - This fund is used to account far resources and expenditures for construction of a two-story parking lot at the Westfield Shopping Center. Silver Spur Ranch Fund - This fund is used to account for the construction of public improvements from bond proceeds resulting from the creation of this District. Hi�hlands Undergroundin� - This fund is used to account for the construction of public improvements from bond proceeds resulting from the creation of this District. CFD Universitv - This fund is used to account for the construction of public improvements from proceeds resulting from the creation of this District. Assessment 29 - This fund is used to account for the construction of public improvement from proceeds resulting from the creation of this District. - 143 - CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS June 30,2008 Capital Arts in Projects Drainage Public Places Reserve Facilities ASSETS: Pooled cash and investments $ 2,655,402 $ 14,919,898 $ 3,182,188 Receivables: Accounts - 706,265 - Interest - 99,755 - Prepaid costs - - - Deposits - 1,230 - Due from other governments - 1,623,404 - Advances to other funds - 8,000,000 - Restricted assets: Cash and investments with fiscal agent - - - TOTAL ASSETS $ 2,655,402 $ 25,350,552 $ 3,182,188 LIABILITIES AND FUND BALANCES LIABIL(TIES: Accounts payable $ 4,104 $ 583,782 $ 7,625 Accrued liabilities 3,421 - - Deferred revenue - 1,819,356 - Unearned revenue - 107,651 - Deposits payable 327,952 - - TOTAL LIABILITIES 335,477 2,510,789 7,625 FUND BALANCES: Reserved for: Encumbrances 1,500 2,60'7,079 34,610 Continuing appropriation 277,000 12,194,990 - Prepaid costs and deposits - 1,230 - Advances to other funds - 8,000,000 - Unreserved: Designated for: Capital outlay 2,041,425 36,464 3,139,953 TOTAL FUND BAC,ANCES 2,319,925 22,839,763 3,174,563 TOTAL LIABILITIES AND FLJND BALANCES $ 2,655,402 $ 25,350,552 $ 3,182,188 See independent auditors'report. - 144- Schedule 11 Parks and Assessment Recreation CFD District No.94-3 Facilities Signalization Buildings Library Indian Ridge Merano $ 1,265,910 $ 341,405 $ 3,692,842 $ 544,203 $ 7,401 $ - - - - - - 368 4,765,000 - - - - - - - - - - 177,230 $ 6,030,910 $ 341,405 $ 3,692,842 $ 544,203 $ 7,401 $ 177,598 $ - $ - $ - $ 20,153 $ - $ - - - - 20,153 - - 49,430 - 85,030 - - - 1,096,164 - 100,000 - - - 4,765,000 - - - - - 120,316 341,405 3,507,812 524,050 7,401 177,598 6,030,910 341,405 3,692,842 524,050 7,401 177,598 $ 6,030,910 $ 341,405 $ 3,692,842 $ 544,203 $ 7,401 $ 177,598 (Continued) - 145- CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS (CONTINUED) June 30,2008 Town Center Silver Spur Parking Lot Ranch ASSETS: Pooled cash and investments $ 220,556 $ 569 Receivables: Accounts ' " Interest ' - Prepaid costs ' ' Deposits ' - Due from other governments ' ' Advances to other funds ' ' Restricted assets: Cash and investments with fiscal agent - ' TOTAL ASSETS $ 220,556 $ 569 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable $ 220,556 $ - Accrued liabilities ' ' Defened revenue ' ' Unearned revenue ' ' Deposits payable ' ' TOTAL LIABILITIES 220,556 - FUND BALANCES: Reserved for: Encumbrances ' ' Continuing appropriation - ' Prepaid costs and deposits - ' Advances to other funds - ' Unreserved: Designated for: Capital outlay - 569 TOTAL FUND BALANCES - 569 TOTAL LIABILITIES AND FiJND BALANCES $ 220,556 $ 569 See independent auditors'report. - 146- Schedule 1 l Total Other Highlands CFD Assessment Capital Projects Undergrounding University 29 Funds $ 1,016,368 $ - $ 5,196,740 $ 33,043,482 _ _ - 706,265 - 64,058 1,275 165,456 - - 975 975 _ _ - 1,230 _ _ - 1,623,404 _ _ - 12,765,000 - 30,302,033 2,034,233 32,513,496 $ 1,016,368 $ 30,366,091 $ 7,233,223 $ 80,819,308 $ - $ - $ 1,466,770 $ 2,302,990 _ _ - 3,421 _ _ - 1,819,356 _ _ - 107,651 _ _ - 327,952 - - 1,466,770 4,561,370 286,659 - 2,050,685 S,ll4,993 _ _ - 13,668,154 - - 975 2,205 _ _ - 12,765,000 729,709 30,366,091 3,714,793 44,707,586 1,016,368 30,366,091 5,766,453 76,257,938 $ 1,016,368 $ 30,366,091 $ 7,233,223 $ 80,819,308 - 147- CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FLJNDS For the year ended June 30,2008 Capital Arts in Projects Drainage Public Places Reserve Facilities REVENUES: Licenses and permits $ 273,157 $ - $ - Intergovernmental revenues - 8,609,588 - Investment earnings 139,145 1,023,132 168,809 Miscellaneous 540 218,133 - TOTAL REVENUES 412,842 9,850,853 168,809 EXPENDITURES: Current: General government 278,710 - - Public works - 4,462,242 79,509 Capital outlay 176,744 8,838,127 30,259 TOTAL EXPENDITURES 455,454 13,300,369 109,768 EXCESS OF REVENUES OVER (CTNDER)EXPENDITURES (42,612) (3,449,516) 59,041 OTHER FINANCING SOURCES(USES): Transfers in - 2,676,258 - Transfers out (18,831) - - TOTAL OTHER FINANCING SOURCES(USES) (18,831) 2,676,258 - NET CHANGE IN FLJND BALANCES (61,443) (773,258) 59,041 Fi1ND BALANCES-BEGINNING OF YEAR 2,381,368 23,613,021 3,115,522 Fi1ND BALANCES-END OF YEAR $ 2,319,925 $ 22,839,763 $ 3,174,563 See independent auditors'report. - 148- Schedule 12 Parks and Assessment Recreation CFD District No.94-3 Facilities Signalization Buildings Library Indian Ridge Merano $ - $ - $ - $ - $ - $ - 270,625 18,071 196,008 - 134,662 6,414 270,625 18,071 196,008 - 134,662 6,414 - - - 278,393 - - 70,000 - 2,793 - 5,093,980 - 44,716 - 18,096 - 88,677 - 114,716 - 20,889 278,393 5,182,657 - 155,909 18,071 175,119 (278,393) (5,047,995) 6,414 - - - 450,000 - - - - - 450,000 - - 155,909 18,071 175,119 171,607 (5,047,995) 6,414 5,875,001 323,334 3,517,723 352,443 5,055,396 171,184 $ 6,030,910 $ 341,405 $ 3,692,842 $ 524,050 $ 7,401 $ 177,598 (Continued) - 149- CITY OF PALM DESERT COMBIMNG STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS (CONTINUED) For the year ended June 30,2008 Town Center Silver Spur Parking Lot Ranch REVENUES: Licenses and permits $ - $ - Intergovernmental revenues - - Investment earnings - 30 Miscellaneous - - TOTAL REVENUES - 30 EXPENDITURES: Current: General government - - Public works - - Capital outlay - - TOTAL EXPENDITURES - - EXCESS OF REVENUES OVER (UNDER)EXPENDITURES - 30 OTHER FINANCING SOURCES(USES): Transfers in - - Transfers out - - TOTAL OTHER FINANCING SOURCES(USES) - - NET CHANGE IN FUND BALANCES - 30 FUND BALANCES-BEGINNING OF YEAR - 539 FUND BALANCES-END OF YEAR $ - $ 569 See independent auditors'report. - 150- Schedule 12 Total Other Highlands CFD Assessment Capital Projects Undergrounding University 29 Funds $ - $ - $ - $ 273,157 - - - 8,609,588 57,142 1,417,217 556,982 3,988,237 - 3,567 3,036 22�,276 57,142 1,420,784 560,018 13,096,258 - - 4,111,020 4,668,123 187,730 2,218,009 - 12,114,263 - 10,536,649 12,804,757 32,538,025 187,730 12,754,658 16,915,777 49,320,411 (130,588) (11,333,874) (16,355,759) (36,224,153) - - - 3,126,258 - - - (18,831) - - - 3,107,427 (130,588) (11,333,874) (16,355,759) (33,116,726) 1,146,956 41,699,965 22,122,212 109,374,664 $ 1,016,368 $ 30,366,091 $ 5,766,453 $ 76,257,938 - 151 - THIS PAGE INTENTIONALLY LEFT BLANK - 152 - 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. A�enc� - This fund is used to account for deposits placed with the City by developers, individuals and groups to obtain future services. Deposits are reduced by disbursements and/or refunds to the depositors when the cost of services is determined. Treasurers 1911 Bond Act- This fund is used to account for the assets held on behalf of the assessment district's property owners until they are remitted to the bondholders. Retiree Service Stipend Fund- This fund is used to account for assets held to pay for the retiree service stipend. Snecial Assessment Funds - These funds are used to account for the collection of special assessments and the future payment of debt service related to bonds issued. - 153 - Schedule 13 CITY OF PALM DESERT COMBINING STATEMENT OF ASSETS AND LIABILITIES ALL AGENCY FUNDS June 30,2008 Special Treasurers Retiree Service Assessment Agency 1991 Bond Act Stipend Fund Funds Totals ASSETS Cash and investments $ 3,492,113 $ 270,664 $ 3,708,059 $ 6,661,425 $ 14,132,261 Receivables(net of allowance for uncollectibles): Accounts - - - 112,628,103 112,628,103 Interest - - - 20,857 20,857 Restricted assets: Cash with fiscal agent 43 - - 10,035,473 10,035,516 TOTAL ASSETS $ 3,492,156 $ 270,664 $ 3,708,059 $ 129,345,858 $ 136,816,737 LIABILITIES Deposits $ 3,492,156 $ 270,664 $ 3,708,059 $ 129,345,858 $ 136,816,737 TOTAL LIABILITIES $ 3,492,]56 $ 270,664 $ 3,708,059 $ 129,345,858 $ 136,816,737 See independent auditors'report. - 154- Schedule 14 CITY OF PALM DESERT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS For the year ended June 30,2008 Balance Balance July 1, June 30, 2007 Additions Deletions 2008 AGENCY ASSETS: Cash and investments $ 3,466,152 $ 2,660,629 $ 2,634,668 $ 3,492,113 Restricted assets: Cash with fiscal agent 627,956 461,483 1,089,396 43 TOTAL ASSETS $ 4,094,108 $ 3,122,112 $ 3,724,064 $ 3,492,156 LIABILITIES: Deposits $ 4,094,108 $ 3,122,112 $ 3,724,064 $ 3,492,156 TOTAL LIABILITIES $ 4,094,108 $ 3,122,112 $ 3,724,064 $ 3,492,156 TREASURERS 1911 BOND ACT ASSETS: Cash and investments $ 274,514 $ - $ 3,850 $ 270,664 TOTAL ASSETS $ 274,514 $ - $ 3,850 $ 270,664 LIABILITIES: Deposits $ 274,514 $ - $ 3,850 $ 270,664 TOTAL LIABILITIES $ 274,514 $ - $ 3,850 $ 270,664 RETIREE SERVICES STIPEND FUNll ASSETS: Cash and investments $ 10,119,163 $ 1,025,148 $ 7,436,252 $ 3,708,059 TOTAL ASSETS $ 10,119,163 $ 1,025,148 $ 7,436,252 $ 3,708,059 LIABILITIES: Deposits $ 10,119,163 $ 1,025,148 $ 7,436,252 $ 3,708,059 TOTAL LIABILITIES $ 10,119,163 $ 1,025,148 $ 7,436,252 $ 3,708,059 See independent auditors'report (Continued) - l55- Schedule 14 CITY OF PALM DESERT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCYFUNDS (CONTINUED) For the year ended June 30,2008 Balance Balance July l, June 30, 2007 Additions Deletions 2008 SPECIAL ASSESSMENT FUNDS ASSETS: Cash and investments $ 4,590,670 $ 6,608,024 $ 4,537,269 $ 6,661,425 Receivables(net of allowance for uncollectibles): Accounts 119,146,524 94,013 6,612,434 112,628,103 Interest 56,410 20,857 56,410 20,857 Restricted assets: Cash with fiscal agent 13,383,596 18,591,270 21,939,393 10,035,473 TOTAL ASSETS $ 137,177,200 $ 25,314,164 $ 33,145,506 $ 129,345,858 LIABILITIES: Deposits $ 137,177,200 $ 25,314,164 $ 33,145,506 $ 129,345,858 TOTAL LIABILTIES $ 137,177,200 $ 25,314,164 $ 33,145,506 $ ]29,345,858 TOTAL-ALL AGENCY FUNDS ASSETS: Cash and investments $ 18,450,499 $ 10,293,801 $ 14,612,039 $ 14,132,261 Receivables(net of allowance for uncollectibles): Accounts 119,146,524 94,013 6,612,434 112,628,103 Interest 56,410 20,857 56,410 20,857 Restricted assets: Cash with fiscal agent 14,011,552 19,052,753 23,028,789 10,035,516 TOTAL ASSETS $ 151,664,985 $ 29,461,424 $ 44,309,672 $ 136,816,737 LIABILITIES: Deposits $ 151,664,985 $ 29,461,424 $ 44,309,672 $ 136,816,737 TOTAL LIABILITIES $ 151,664,985 $ 29,461,424 $ 44,309,672 $ 136,816,737 See independent auditors'report. - 156- DESCRIPTION OF STATISTICAL SECTION CONTENTS June 30, 2008 This part of the City of Palm Desert's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the City's overall financial health. Contents Financial Trends Theses schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2001; schedules presenting government-wide information include information beginning in that year. 157 City of Palm Desert Net Assets by Component Last Eight Fiscal Years (Accrual Basis of Accounting) F�,. ' �� ,r w�a `�z' � ,:� . ...�. »�zt., �..-` �*ss ,,,e.;w�� :,`.<.. � ..�i�+�.,.�v,.� ;r,�, .�x,�. � ;;�. r�� z , . �,.� ��. . -. . , �, ..�..,. � �...r�.. ,. . . ..:.,�. : . ,. ... .. .:. . ..:..�.: ..r .. �:.,_ „•.... . . , . . .:,;.�, , ._ 287,536,477 (3) 213,685,471 166,229,783 147,410,323 141,303,283 143,448,973 ., ;: � 168,029,901 173,335,615 (Z) 153,342,045 ��> 103,701,569 100,268,597 99,313,317 ,* "• 113,420,152 111,386,996 108,077,101 96,445,212 79,075,507 80229,689 .. . ..,, � �f \� :. . ,�,;z.... .'s.., :.;.. °,3 „f '� `' " '' :"� "`' S68,986,530 498,408,082 427 648 929 347,557,104 320,647,387 322 991 979 R � s 31°,� .< .�"�� �� w�°° '' ��u »,n,� ` �. �. > .,..:� ��... ..�;', E 62,814,656 62,956,911 63,233,079 63,588,616 63,857,424 64,269,694 �' r�� - - - - - - �� �, , �� ,, 5,211,985 5,294,980 4,459,840 2,948,910 1,830,204 1,288,488 '�' '� " 68 026 641 68 251 891 67 692 919 66 537 526 65 687 628 65 558 182 ; ' «, �..'• � �, ' �F��a:t��.:����^��\���. '„� ...� �"�r������„?�p�`��� �Y �`' ���� '"�?. °' . ;' lT�k$.�a..3�N�. ..,,�.; .R�i., �.a.4,�1.�',4,.�.. W&�&. ��e.,A.,.. �.�` ,.:r...:x . 3 . .� ,::,.,` � '"' � '"" ' �'� 350,351,133 276,642,382 229,462,862 210,998,939 205,160,707 207,718,667 [F1 F , `� ' � � �f" ��q� 168,029,907 173,335,615 153,342,045 103,701,569 100,268,597 99,313,317 '��?'��� � � "'� 118,632,137 116,681,976 112,536,941 99,394,122 80,905,711 81,518,177 ,.�.. �� .,,. _ ` , , n,.; 637,013,171 566,659,973 495,341,848 414,094,630 386,335,015 388,550,161 ..�"'� '��r�3-� �?�'� r � ��� '`� �:� 3,;.� � g �'� ,.,��.:•.y'. -•-�: 44,179,223 41,332,088 � 78,732,876 72,610,266 � ° 88,266,933 80,007,103 � �� � � � 211 179 032 793 949 457 � 'a� ����"�s� � ,„ � � �� s '� '�'.n... +� � � � � 64,085,563 64,702,174 � t � � `�'� � �`%`��a�ic � � � » �; ,� ��' �;� 1,494,726 1 419 665 "� �,,.` , ��� 65,580 289 66 121 839 ..,..' a � `' � i �� y*�9� : "� .. . ,. �.,R..���;.x . .�..e�,',. . . , .p,.,., • ....a: . . '. �,.a^ �\•...:. �+' .:. ., ,,.. . ,;� . 108,264,786 106,034,262 � ' ��` � � ' 78,732,876 72,610,266 �e �: � a `�'�� � �h� 89,761,659 81,426,768 ' D � �,;� 276,759,321 260,071,296 (1)Tlse increase for FY 200G is due to issuance of District Bond,see note l�6. (2)The increase for FY 2007 is due to issuance oJDistrict Bond,.cee note�6. (3J The increase for FY 2008 is due to Capital Contribution ofHwy!I1&Hwy 7a infastructure totalling�3019 million from the State qf Califbrnia. Note: The Ciry of Palm Desert rmplemented GASB 34 for the fiscal year ended June 30,2001. Schedules presenting government-wide lnformation include lnformution beginning rn thal year. 158 City of Palm Desert Changes in Net Assets Last Eight Fiscal Years (Accrual Basis of Accounting) .:: ,� ��, � � _ , � ..,;. f,c� H ,'��,� � �r . K.�..,,, . ,� � . �.,: �; �a;::� <,. , y �, � "� � � . ,,. , �y" , � „ ;, 46,048,643 39,956,767 34 362,850 27,144,038 28,402,902 21,05�,957 20,830,544 18,625,329 � � �'�' 1 ��''" �?,�� � 26,855,060 24,674,424 21,856,311 18,743,083 15,420,151 15,601,833 14,547,981 12,744,434 �'"� ' �r4� ��� �°t 8,013,211 4,996,692 4,243,119 4,043,034 3,977,447 3,480,264 19,686,164 3,542,671 3's,`� � `'r<c' 27,245,937 37,091,512 13,894,980 10,428,219 13,046,864 23,009,640 3,775,417 15,595,997 .,. � 20,706,514 20,097,198 12,526,964 12,749,188 14,124,371 14,443,467 15,271,200 16,224,248 ... ..,«y::, •�....�;:.. � ��- � °' 128,869,365 126,816,593 86,884,224 73 707,562 74,871,735 77,591,167 74111 306 66,732,679 � �. .� s� �ms; �; ,. . � � ,..x . , � > ^'-• 8,167,682 7,989,321 6,913,5t7 6,636,889 6,657,220 6,653,242 6,629,866 6,901,576 649,548 716,592 646,769 609,298 570,135 511,272 534,865 1,481,938 v s �^ "" � 8,817,230 8,705,913 7 560,286 7,246,187 7,227,355 7,164,514 7,164,731 8 383,514 ��, "` ' �`N' "' � 137 686 585 135,522 506 94 444 510 8Q353,749 82,199,090 84,755,675 81,276,037 75 116193 �� ��� `���,� �� �^°h � � ` �� � � � r�� ' � � „ :• q , � ,3 i.,�.;, `;��t' �� ,. '. 3 . � 'S ..«., �y,'� k' ' � _ '',. + � '1 a, � S'.., a � � . . � 3 :r ,.i`P' ,k'i��� �d� Y�;- e�d :i ' �.\} �r ����p�y s � " "' 8,454,683 8,225,112 8,318,175 7,059 609 6 540 065 6,605 215 8 166,557 6,237,731 ��� `��y ;,'��� 5��� �� � 8,808,300 9,078,214 8,376,981 3,945,395 2,737,585 2,737,571 2,903,623 2,882,947 "`� 3�- ��•:�• ���ar?s�. 1,190,725 1,822,685 1994,163 1,442,098 1,048,667 868,255 394,263 322,606 762,440 514,838 491,179 540,028 511,317 455,676 959,412 845,097 ,� .,� 5,843,010 7,951,650 4,930,120 4,800,413 4,632,297 6,249,955 5,568,966 4,607,448 �� ��, �� 42,545,033 57,132,742 51,780,221 5,166,856 7,134,158 4,325,033 4,434,722 5,300,829 r � + :'� . �.� . � 67 604191 84 725 241 75 890,839 22 954 399 22 604 089 21 241 705 20 427 543 20 196 658 ..y� � . � .� .. a� €u�'�;� ���'���'�L�Fz�,�"��`� � `�;� ��� � . � s .: s �� ,� ' I�3�6� '���.� � 4 r �v . ' �. ' �� ,a a�i..' �`` �����$ � '� 3 � < ;, �' s � �a�:� ''' u��,�,���'•,. � �. S 182,741 7,830,863 7,442,330 6,814,638 6,237,087 5,824 079 5,753,581 5 882 813 �'� 934,833 915,975 864,447 898,884 851,763 843,812 861,405 943,895 206,609 278,757 295,304 338,478 267,951 414,967 8,195 543,303 "�"'�"'' 9,324,183 9,025,595 8,602,081 8,052,000 7,356,801 7,082,858 6,623,181 7,370,011 � '' ' y � 76 928 374 93 750 836 84 492 920 31 006 399 29 960 890 28,324,563 27 050 724 27 566 669 � �. � - �.� "�a 3 �.# s+ .;- � - , ,.�.. , .,,. . � , -�. � .¢_,. . . ,... � .. �. :: ,�. � ',. ,•„ ..,ux, «�, s .. . �.:. k � -: ...� ,.;,, , ::� n, a..�..., . .� a� ,��� �, �,� � ,��z ,^ !. = ;�.,y�•� (61,265,174) (42,091,352) (47837,446) (80,336,571) Q6,418,938) Q8,490,293) (71,417,934) (60,853,995) � .;:•. 506,953 319,682 1,041,795 805,813 129,446 81,656 541,550 1,013,503 (60 758 221) (41,771 670) (46 795 657) (79,530 758) (76,289,492) (76 289 492) (71 959 484) (61 867 498) �.;;Y� .''�., '„s � �:.:, '. ��'�,:.,. � .., . � � -ss� ��,��\ �s,�`;,� r .:�yr,�y � � s,r�x._ ... � . , �e. �.'�..... " ,.s..., q: �e v��� ��l � � . .;w�, t a ,,,.� �»s,r �. ..i.�,� � .,.. • . ..,,i�^ ...�.. , ,., �.., �. . � .,: . „ x.. .., .: .�<.,..��. ,,: �,�. 90,527,965 86,766,864 114,826,387 96,926,134 87,551,146 81,297,385 73,257,210 66,975,636 3�ij, � 15,309,271 17,521,600 6,197,595 4,240,360 2,985,463 3,366,548 6,388,234 11,539,085 y���� �� „��'�'b �\ 7,240,770 - - - - - ' _ `� �°`�.�a,�;�" _ - - 17,459 - (984,837) 204,000 764,000 .,� _ _ _ _ - 262,193 4,328,656 �� ;`���z �� �� � 6,369,028 10,790,417 7,025,216 6,347,396 1,852,229 3,997,338 4,709,580 2,785,106 v. *`r�����' � '' _ _ - - �a,706,206) - - ��.; � 1,000,000 - - - - - � r�" 120 447 034 115 078 881 128 049 198 107 531 349 83 682 632 87 676 434 84 821 217 86 392,483 , <: . .: � <r� � ...�P i2 . ;�._ - � a 7 �� re ` :��t' '�-�q��, � .: n�: . , , . yj ,d, :. ., , r �• ' . y . � "":�'.�"�1�.��'.4�i�� \ ,¢k,4si...L�3: .e•�3�Y3��.. �` :• ,.. ,.�1„a''.�;;..�.�.�� �\a� ��.'z .�:�.'.. �:" , .., �T : , : ... � . . :.. .. � . `. 267,797 239,290 113,598 43,831 - ��.��a ' � ' � ` 1,000,000 254 - 47,831 - - �u �� 3E'?', � � ' 732,203 239,290 113,598 44,085 - 59,549 - �',.�� ��;�"'' e �. R�� � �', 119 774 831 115 318 171 128 162 796 107 575 434 83 682 632 87 735 983 84 821 217 88 392 483 �-, � s a �.:� � p . � r. ...... f ;. �f'- � -� �t� �.�'., � �� "��y� ' 9r�'� ` , ._ �. ya�_*n, �' ;5� Z��.a _ �- �.mvC� ...._v , �>'% a, _ - J.n. v, . l„ 59,181,860 72,987,529 80,211.752 27,194,778 w 7,263,694 9,186,141 13,403,283��25,538,488 � �\ " �'� 225,250 558,972 1,155,393 849,898 129,446 22,107 541,550 1,013,503 `` : �,...:.:,;,{` F� a �„ , ,,,,.> 58 956 670 73,546 501 81,367 745 28 044 676 7 393 140 9164 034 72 861 733 24 524 985 (1)7he Increase jor FY 2006 is dve to Bond Famds received jor capital improvement at(he Distric!known as University Park and Asses.�ment 29. Nofe:!he City of Palm De.rert fmpTemen(ed(iASB 3J for ehe ftsca[year ended Jeme 3Q 2001. tichedvdes presenling govemment-wide information incle�de information begrnning rn lhat year. 159 THIS PAGE INTENTIONALLY LEFT BLANK 160 City of Palm Desert Fund Balances of Governmental Funds Last Eight Fiscal Years (Modified Accrual Basis of Accounting) __\\ W \. � .:.: 3 .,u�.� 3 � ,5` i\. .� s`�� ��� ��` � ���� 16,304,234 25,198,118 26,345,859 26,505,414 27,838,819 25,701,984 27,506,623 22,951,643 63,515,054 50,916,281 48,004,509 36,793,370 27,619,600 23,113,284 23,827,558 24,419,570 ''' �� � 79,819,288 76,114,399 74,350,368 63,298,784 55,458,419 48,815,268 51,334,181 47,371,213 '" ,,� � °, � � ,, � � :� �, r 5 , �" �,�� „ �„�, 144 034 808 133 768 988 115 924 400 96 349 160 �83 603 140 86,423,841 89,223 387 77 271 685 ,, �,,, �, r� �� � � _ � �; �„ ��� .��_ r r.: . ' ,�� �a " .�',.,� �5 ,r ;. - :�,. '� 97,413,884 175,094,003 55,995,596 � R y M � � � \� X ��; ��� 72,478,199 48,231,447 19,944,227 v, 25,991,171 32,614,358 24,709,698 24,222,615 15,521,068 � s ` 34,196,750 40,652,793 48,976,239 46,630,038 53,720,744 � `� T'"�'���� 35,706,020 24,254,967 10,095,576 8,430,170 12,899,972 11,641,650 5,803,153 6,744,244 �°"�'" � °'\'� �' 349,632,911 381,349,405 201,959,799 164,967,251 169 770,263 171,751,428 165,879 193 153,257,741 Note: The City of Padm Desert rmplemented GASB 39 for!lve fisca!year ended June 30,2001. Schedules presenting government-wide information include injormation 6eginning in that year. 161 City of Palm Desert Changes in Fund Ba►ances of Governmental Funds Last Eight Fiscal Years (Modified Accrual Basis of Accounting) �;:.-- �a �r�, , ;:;, s: "• �� '„� ae �;'��� �ix���; yy� .� r�, .�o.., a�,. ��2�.. .3'. ,.\ 'A ,., ••. .,... .. ...._.,»:... ...., . ..... .. <...,- ... ;.. . .. , , .. � �, . . .,�;: ...... ......... . .�..._.... . ........ . .. :..... ...... . . ,,,....., ...... 140,331,466 138,272,454 131303,483 102,020,742 93,948,185 83762,760 78,631,363 72.173,943 2,060,797 929,348 269,036 227,848 214,950 5,818,624 6,684,402 12,884,346 �' " �` �� �i` ,� �, 1,453,177 2,691,486 2,685,415 2,056,554 1,316,669 7,286,262 1,417,012 1,511,652 ��;�?' 18,996,692 23,499,937 11,095,613 11,064,037 6,067,555 11,488,993 10,581A51 6,463,484 �� 4,789,421 4,513,146 4,737,861 4,430,915 4,494,098 4,115,892 4,186,607 3,943,706 1,190,725 1,822,685 1,994,163 1,463,850 1,052,467 873,605 975,841 845,097 ������"�'� 22,592,392 23,985,001 9,351,716 5,654,986 3,322,733 5,035,799 7,677,358 15,114,698 254,857 274,365 310,868 323,775 306,630 367,903 305,197 238,872 ^� . 20,164,099 2,847,802 2,470,623 3,232,825 4,779,567 2,443,684 1,405,298 11,037,622 '.:�`•.:. �`�` . 46,006.292 42.979,973 - e� ' � 211 833 620 244 842 518 207 198 751 130 475 532 114 902 854 17 5,193,52Y 111,858,129 124 213 420 � , , k ����� �����t�� E �a� ��' ,, �� aE„� � �.� ����� ��� ����a 62,795,604 44,587,985 34,506,987 26,112,125 27,122,532 �20,034,295 19,794,096 17,286,613 �3�� r 38,993,445 35,719,075 36,844,061 30,183,408 24,051,292 22,140,837 17,734,171 14,317,974 26,677,743 24,550,431 21,715,373 18,567,736 15,290,696 15,410,771 74,368,399 12,598,263 � ,e,;�� �� 4,572,695 3,921,063 3,304,867 2,889,789 2,638,386 2,656,809 2,580,841 2,434,884 "� � 22,936,721 33,925,623 11,103,943 7,306,791 10,153,096 20,631,322 17,657,120 13,167,046 �' .��.. � 52 256 552 85 604 515 35 359 139 22 409 057 18 927 787 36 687 223 17 159 885 14 330 725 ,:, ��. � - -f" �� � r i �.:: ��. � !� �.`��a � ? wnr- ��e r,��, .,�..:• .�.a�� b..�'��-..�„ ��,.<3 �� `� �+' � z� � � � ; �,:; �a ��:� �...� i i `' �m�r�&"�1�'c.,�.: „��s�`.<��a.��. z.`..>,�.... ,��.�., ..�,us,��.:. .....�� ,�� :. � -��_�, �c;..�a�r..:: _.s. 10,787 707 8 209,707 5,607,707 9 788 423 28,372,707 25,975,000 28,360,000 16,820,000 23,376,564 25,814,526 14,072,572 13,537,219 16,643,049 17,071,421 17,062,974 16,452,210 �`�"��'�'`�" 242 377 031 262 332 925 162 514 649 130 794 548 143 199 Sd5 760 607 618 134117 486 107 607 715 '�'i.e. � .�:...:;.. . �, >�.�a .�,..��,�,�.�,��'�c� ��z>a,. \..�..�v:���i`���x_:�.i� .���a..�?,.�.., .���..:.. r•• . ��a� (30 543 411) (17 490 409) 44 684 102 (319,016) (27,377 918) (45 414 096) (22,259,357) 16 805,705 "�'. ; :�:ty. -;h,�al'r�'�. e�:� t �.��s�z;�.,�, Z'C �. ,%"�'� ����.�..'a�-t�a,... ��S�e�m�«� `r..��= •� . �"�����"`.�..,, ���� �,� 59,723,636 249,249,847 50225,747 48,697,604 68,236,264 87,390,536� 60,894,943 37,122,796 �, ��'�r''� (58,723,636) (249,249,847) (50225,747) (48,697,604) (68,236,264) (90,285,014) (60,894,943) (37,122,796) �x �.: - - .�,"�-'�-_`'.--: - 7,785,375 - - 915.773 - 1,484,806 287,534,894 - - 48,690,000 50,682,363 37,765,000 - (101,656,501) - - - - - - 47,000 5,230,000 3,360,030 3,356,369 1,728,522 979,533 766,279 767,500 2,537 806 196,893,768 ', 3,38D,03i7 3,356.369 51'.334,295 .�... 48,767,418'�: 38,331,279 7fi7,500J "� � ��� � � � � Y8,011,605 181,403,359� � 48,044,132 3,037,353 14,334,398 3,353,322 16,271,922 17,573,205 � � ; 78.0°k 19.3% 15.5% 21.5% 36.2% 34.7Y 38.8% 35.8� � � 's'4 '' �kW' . .<.....—. .,....�e:...: ...^.(_'...�,.,, (I)Bond wns issued in F7 2006 and FY 2007.See note d]6 J'or fi�rtlrer p[anatlon. (2)Prlar m 200a,Ihe Ciry wos recordtng Assessment D�stric!Propertv Taxes In i(s debt servlce fundr,ciry hns since removed Ihese fram its debt sen�fee j�nds. (3)See Note�h ojthe Finnncial Sm�emen[ine[uded Cnpim(Accrenttan ojBonds. (JJ Plor ta 200A Sn(e of Properry-7nvenlory was recorded ns other financing saurces.In 2008 Sn(e aflnvenmry was moved m Genern/Revemie (5J The$1.6 million in specia!assessmett!callecfed represents the amo�mt received fram property awners jor Fire Pmrection. In prior yenrs fim�received from praperN awnero�were cfnss fed Qs taxes. Note:Ihe Citv ojPn/m Deser!implemented GASB 34 for the fisca[year enJedJurce 30,2001. 162 City of Palm Desert Graphs-Changes in Fund Balances of Governmentals Funds Last Eight Fiscal Years (Modified Accrual Basis of Accounti�g) Total Reveoues �__. ___.._._.._..�....___........__.._____.._. � $35QOOQ000 .__...__________.._.__..__........._.._._._..._.__.._._.._._._____.__..._........—........_.._...._.....__.�_........._.._._......... i OCombinedother(1) � $300,000,000 � $25QOOQ000 � �E ■Miscellaneous other(2) I $200,000,000 � E ❑Intergovemmental revenues $ISQOOQ000 ' � $100,000,000 ; � ■Licenses&permits $SO,OOQ000 - $� ■7anes&Special � $ 3 H ? � Assessments m � w w � w y � � � Total Expenditures $350,000,000 �._.._.......______._.._._.._____-_........____......_.�_ ...._______._____mm__....._._.__._._._...._..__....___ , � � � � ■Parks,recreation&culture ( $300,000,000 �P ass-thro ugh-agreement $25QOOQ000 "�-- � E �Debt Expenditures(3) $200,000,000 $150,OOQ000 oCapital outlay $100,00Q000 - ! € �Public works $50,000,000 I OPublic safety $0 g � � ' g $ � g ■General Govemment � � � � c�.� ��,. m Combined Other(L)is a cambina(ion of renla!income,t�se of money&property,and charges for services. Miscellaneays Other(2)is a combination offines and forefeih�res,misceAaneo:is and contrihutions from property owners Debt Expenditures(3)is a combination of interes��fisca!charges and prrncipa!retirement Nofe:The City of Palm Desert rmplemen[ed GASB 3-1 jor the fiscal year ended June 30,2007. 163 City of Palm Desert Supplemental - Historical General Fund Revenues (Including Transfers In) Last Ten Fiscal Years s � � �� � y��a� ,.��=" ��..�`',,,�> .:v:.�� 7��;�F\ �" a ,•_� � .�F.�. �:. ••,. .. . . . ... ..... .. .. . _:'`� ,^,;. �'`T" '°''����� $ 17,195,743 $ 17,918,375 $ 17,776,928 $ 15,453,148 $ 15,138,424 ��' 8,605,714 8,627,221 8,026,101 7,715,624 7,660,831 '�' 9,333,842 8,714,568 8,261,944 4,003,585 3,369,711 ��"' M+.„ - �', 4,571,147 4,89Q891 2,636,050 1,486,830 1,135,952 '" A � � 1,101,610 1,122,224 1,083,589 1,13Q231 1,092,475 �,. �. " , � � �� ��,x '�' 2,887,727 2,907,062 2,580,917 2,439,134 2,417,856 _' , � �„ 220,785 267,595 358,954 3,712,256 2,020,583 n �� 3 „ �,� 975,296 1,476,290 1,963,733 1,446,524 970,826 ;�. 4,933,807 2,465,685 1,982,846 1,830,295 1,547,862 1,311,090 1,231,587 1,242,721 1,154,143 955,501 "� ''' 881,350 782,739 bb1,187 526,271 392,988 �" 562,930 617,999 702,857 701,215 459,046 `� y ' �' 604,236 671,806 1,030,412 1,099,665 870,415 ��," xi __ x_ � w.��"�\�. �' '` �a� `� � 1,900,529 2,436,664 2,606,760 2,019,035 1,144,752 �' � `'' '�"�' $ 55,085,806 $ 54,130,706 $ 50,914,999 $ 44,717,956 $ 39,177,222 ;,'. 3 , ..,.. �--- � _-:,--- `�° Z`n�� � ,',�"+E.�:.� c� . '.� ": . ���� W ,� ��'+���� ' �� � `� �p� A . ? :• ,`,:.... .- �. .. .,_. „:.�...,. �#,,�.n, • ... .\. = a ., . ... � �.�:?• � . . . . . . . .... .._... „.,..�. ,W...... .. -a�. ::ir� �_,,;;_. �,? �� �` �� �;�„ � -� $ 13,463,197 $ 13,027,395 $ 13,619,607 $ 13,203,564 $ 10,877,715 6,816,682 7,043,454 7,385,707 7,280,625 6,725,876 �;�,� ��� �,-"-' 3,078,047 2,765,556 2,466,758 2,393,368 2,417,572 j� '''��� � , °�' a� ' � ��' 1,573,165 2,379,764 3,147,544 2,688,963 2,169,894 � � �r � A� ; Y�, " �� 2,450,600 870,624 934,039 957,817 1,026,956 �,. � ��; �y«' 2,198,663 2,131,820 1,981,697 1,837,806 1,612,054 ��. ... " �` �� ��u.; 2,634,949 2,555,811 2,262,535 1,991,034 1,679,519 y y :° �, � , e �it�� �; ��`, 876,372 1,064,097 1,101,743 1,182,392 1,517,286 ' - �� �n ���M ��`��`,:• 1,367,303 1,036,133 2,125,784 958,858 830,198 � � '`� ��` ,� _, 961,675 898,113 826,591 749,831 744,444 ����' 262,403 158,302 265,350 553,800 476,050 � �•'f'� �s�' 472,356 612,845 623,936 538,590 866,757 �., � � �� �'r�' , ��, ,;', 689,147 497,967 578,238 698,934 516,513 � �-���"�� �� 1,845,700 1,116,608 711,438 1,255,860 1,142,810 ,.. � � "": 3 � $ 38,690,259 $ 36,158,489 $ 38,03Q967 $ 36,291,442 $ 32,603,644 (1)State Subventions is any combination of motor vehicle and off-highway in-lieus,and subventions from state. (2)Other Revenues rs any combination of miscellaneous penalties and interest,permrts,grants,parking bails,fees, sales of maps and publications,vehicle and court fines and other revenues. (3)The State of California reprogramed motor vehicle fees, the City now receives this as property taxes. 164 City of Palm Desert Supplemental Graph - Historical General Fund Revenues (Including Transfers In) Last Ten Fiscal Years $70,000,000 $60,000,000 $50,000,000 ■Combined Other(1) � ■Interest $40,000,000 ■Property Tax $30,000,000 OTransient Occupancy Taac 0 Sales Taac $20,000,000 $10,000,000 $0 m n m �n a M w o m 0 0 0 0 0 0 0 0 0 o°fi N N N N N N N N N LL LL LL � LL LL LL LL � LL (1)Combined Other is any combination of transfers,franchises,state subventions*, building and grading permits,reimbursements, business license taxes, timeshare mitigation fees,p[an check fees,property transfer taxes. /t 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. 165 City of Palm Desert Supplemental- Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years J ,x� ,�p,e^r EC 3'� ��.��`,��� � J / 1� �� i:1. ''�:.� 5 < � � "�� $ 14,413,196 $ 13,404,056 $ 12,323,448 $ 12,135,671 $ 11,432,803 ° � 9,861,106 8,588,341 8,410,706 7,196,081 5,999,228 �' � "�``' ��<�: 3,329,792 3,014,583 2,823,359 2,506,688 2,270,854 � 2,532,637 2,402,435 1,687,148 1,616,071 1,420,717 , „,:. :� ;.J _�......�Y,. LS .':.�� � ... 2,133,448 1,968,849 1,681,583 1,558,970 1,411,018 �� ' �° 3,260,855 3,084,015 2,695,889 2,297,814 1,620,160 � �° .�: �, 3,342,542 1,192,629 1,277,554 1,375,409 897,153 ' '"`'� 1,348,012 1,204,079 1,117,417 934,821 676,505 �, �' � �'r �� 11,159,329 17,989,005 7,846,311 7,256,066 6,805,633 ��:��-rc,, $ 51,380,917 $ 52,847,992 $ 39,863,415 S 36,877,591 S 32,534,071 �, . Sy � � � .\�3 Y5. \. � � .y'Y �� f i £ �.'�"�S ,.� � �,� ti',�, "�5 �'Z':. � �� � Y�,��,'....��a�. �5�' .,£;.: � $ 10,869,991 $ 10,732,159 $ 9,489,468 $ 8,841,693 $ 7,932,755 f�� � '�� � � 6,573,351 6,461,706 4,972,981 4,617,682 4,375,851 .0 ' " �;f � 1,937,184 1,745,513 1,764,947 1,673,434 1,607,836 �.,, � ��� 1,654,768 2,262,129 2,052,281 1,676,995 1,677,282 � ��` '�� '��� 1,323,955 1,378,064 1,455,268 1,451,917 1,515,287 �:: , � �: �.. �� � _ �� ,,. _� .,`' ;,�; -� �;.; _}p, 1,535,427 1,386,988 1,201,802 1,134,696 1,424,124 ���:�. �'' '" � ' " � Y 2,078,218 608,616 1,422,637 1,028,354 861,490 ?�a �`°' ��x� � c „�''' �., � � 1,007,637 880,295 918,575 1,035,644 934,744 "' � � ,����� 14,228,641 7,052,549 8,398,278 11,503,552 6,161,641 �. H � . �„ � � , �.= $ 41,209,172 $ 32,508,019 � 31,676,237 $ 32,963,967 $ 26,491,010 � �,� (1)Public Safety is any combinatron ofanimal regulation,development services,police services,and tra�c safety expenditures. (2)Caty Admdnastration is any corrtbina[ion of communary services,auditing,City attorney,City clerk,City counci[and Ciry manager,data processing,elections,finance,genera!services,human resources, insurance,legal special services, legistlative advocacy and unemploymen[ansurance expenditures. (3)Other Expenditures is any combination of aquisitions,centers,committees,contributions,community development,o�ce of energy management,news[etter,marketing, interfund transfers,parks,recreation and culture, and visitor center. 166 City of Palm Desert Supplemental Graph-Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years $6QOOQ000 0 Combined Other(1) � $SO,OOQ000 ❑CommuniTy Promotions $40,000,000 $3Q000,000 ❑Public Works Admimstrat�on $2QOOQ000 ■City Adminisvation(2) $10,00Q000 �Public Safery(3) ' $0 0 0 0 0 0 0 0 0 o a N N N N N N N N N w � w w w w � w w � (IJ"(.ombined Other"is any combination of street maintenance,buildrng safety,.rtreet resurfacrng and public workc. It may also be ayuisitions,centers,commitrees,contributions,communrty development, offtce ojenerp�management,newsletter,marketing,interfund transfenr,parkr,recrealion and cul[ure, vrsitor center. (2)City Administration is any combination of communiry servrces,auditing,City attorney,Crty clerk,Ciry counci[and City manager,data processrng,elections,finance,generad services,human resources,insurance,legal specia!services, legrst/ative advocacy and unemployment insurance expenditures. (3J Publrc Safery rs arry combina[ron of animal regu/ation,development services,police services,and traffie safety expenditures. 167 THIS PAGE INTENTIONALLY LEFT BLANK 168 City of Palm Desert Supplemental Historical General Revenue and Expenditures Per Capita Last Ten Fiscal Years �.:,t, a:a � ��..� K, ,�x: , ,� � ,.3:.?;= : .` � ,, �:;�_.._.y , � ,�t'„�. x F*'S� ��� � .�� , .,� 3 ,� �' . . •x•u�• \ � � \n ,✓ �� va., � \� 7,k's.,.� ,� r�i� ���`��'s,wxi,..."r.'.. a � ��., ...��.:�.�,., ��€ 9• �. .;�: .. . . . ... . ... � $ 53,984,196 $ 53,008,482 $ 49,831,410 $ 43,587,725 $ 38,084,747 � ��•, �,{. 50,907 49,752 49,539 49,280 44,812 ;;,�, ' e� :' ' � $ 1,060 $ 1,065 $ 1,006 $ 884 $ 850 a � "� ' `� ��a �,. � v � a � �s�� ` � �z����� � r � ��n ��v° � L � � z" �� r'�- �:� ,s• X �� � ,:., h � ... .,�', :.'�.,�" ".y � ,.., �`� ,.,�a�"`� .....> ,,.:a ..�. ����Ez. ..n . .:� .. .. . .. . a • ..� � �:�' ��� ��� � � ��* � � . �.�, , . $ 36,239,659 $ 35,287,865 $ 37,096,928 $ 35,333,625 $ 31,576,688 �..'.:..,�,. '�6 : � 43,917 42,863 42,334 37,634 36,287 �r _ ��'�� �� $ 825 $ 823 $ 876 $ 939 $ 870 :��,�y„y�aN, �, � h � 3;:: E,� �� � y� � a ' , � �' � ���, � �� `�� �� y�� � � � , '� ,__ .. � .<i , t+` E� .: _.._.:..:.. .,.. ..,..�,.. �±,... .... ... � .....:..�,.>�, , .'�. ....... ...ro... . , ,;,� _:�. . . �-, � � ;�` :l.,a� . �..z; ;,:� -':- '�._. �°::: \:.,y��.: � �,�. ' $ 49,238,257 $ 43,565,108 $ 38,488,367 $ 35,426,268 $ 31,674,743 p _ 50,907 49,752 49,539 49,280 44,812 a � � � � .����"����`�� $ 967 $ 876 $ 777 $ 719 $ 707 �` � �`.e.�.�. " _ ��`,',. \2, : ._.; � r ;�. � ,. ;.j, ,����<�.: ..;=r � �� .z�.•�.'�:. ...��:ew,i, : � .„, ^�...�`� �' �£�...��i,/s � ��� .,.o,���� .. ..........t,, , . ,„,.: - ,. ... ,;: � ,. ..r.:..... .••.' _... . .. . . A j��.�, ��`� u, .-:�.,._.. '� $ 34,935,591 $ 30,941,156 $ 28,902,706 $ 26,343,720 $ 25,059,899 •:«� � ,.��..<�� ' � �. �� �'�?�"��'�� �k,���� 43,917 42,863 42,334 37,634 36,28'7 �.��� � ; � �: $ 795 $ 722 $ 683 $ 700 $ 691 �� �;,, (1)Population figures are as of January start of fiscal year. (2)Interfund Transfers!n/Out are not included in total. Sources: Population figures from State Department of Finance 169 City of Palm Desert Assessed Value and Estimated Actual Value of Taxable Property Last Eight Fiscal Years �:� �� �. �t y�,.� �'`8 . � "' 4,.:,� �°.::^ . .€.. � :�.':T\� �y;p . �;��...: �'�p � �n � `Z� Po `.. �� r .::•', :i � ��, .. " �� �.. .�, xa.�, i �. ��a � ��:a.. ,� 9,160,443,514 1,929,224,481 134,910,803 688,045,095 (242,839,445) 13,491,080,286 1.00000 13,114,105,220 �� ,. . �, �,, 8,931,447,910 1,684,439,737 143,634,396 639,825,947 (248,095,775) 13,057,672,383 1.00000 11,853,797,089 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 (239,745,884) 10,423,734,072 1.00000 9,281,846,679 `�'` �\ 6,061,076,589 1,306,579,384 108,881,615 372,012,186 (199,616,295) 9,073,467,947 1.00000 8,704,132,380 `�?�� :. ` 5,360,801,928 1,200,179,536 88,013,166 328,049,073 (184,027,529) 8,001,196,907 1.00000 8,066,795,481 �� � 4,806,079,266 1,069,623,656 79,499,056 332,450,596 (173,452,485) 7,227,186,866 1.00000 7,291,094,312 ���'',, 4,153,891,190 838,518,408 70,951,558 296,706,514 (161,253,540) 6,450,141,599 1.00000 6,511,773,110 ([J Estima�ed Actua!Taxable value=Net Tacable�alue Notes:Property Taxe.s in Riverside CounN are subject!o the Sm�e oJCal jornia's Proposi�ian l3,Jarvis-Gann lm6a�ire ivhich al]ows reappraisa/s of real property nnly when Ihere is a change in ownership or new cons(nstion mkes ploce. F'urther,Ihe proposilinn/imi(s praperty assessmen!increase lo no more Ihan nvoQ%J percent annually. Propeny is assessed at one hundred percent(l00%)ojits fair market value at the trme q�new constnicban or change in ownership. The�tix rate fs ane(/%J percen!nf the assessed rahie. The Ciry oJPalm Desert chose m imp/ement this schedule retroactively for the lase eight years. Govemments are errcw�raged,but not reguired,to imp/ement retroactively. U!limately,�his schedule will inchiJe�en years. Per GASB4J assessed i•alues are shown by major type. .Saurce:Rrverside Co�mry Assessor�hru HD/.Coren�Cone 170 City of Palm Desert Historical Net Assessed Taxable Values Citywide Graph -Assessed Valuation Growth Last Eight Fiscal Years Net Assessed Valuation - Historical Comparison Value in Millions FY 2001 to FY 2008 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 2001 2002 2003 2004 2005 2006 2007 2008 Percent Increase in Assessed Valuation FY 2001 to FY 2008 30.00% -��. �-----m---�----�-� 27.71% . % 23.88% --------_"•-•z 25.00% ---------------------------- -- ----------------------------------------------ZQ:67o--- ---- �„� 19.38% ---------- ---------------------------- -------------------------------- 20.00% -----o------------------- 15.06°/ 2.76/0 11.97° 15.00% ------------------ -------------------------------------•---- ------------------------------------------------ 10.00% --------------------------------------------------------------------------------------------------------------------- 5.00% --------------------------------------------------------------------------------------------------------------------- 0.00% 2001 2002 2003 2004 2005 2006 2007 2008 Historical Major Additions Annexations FY Retail Centers FY Cook Street Area 88/89 Town Center Mall 83/84 Country Club#28 93/94 Desert Springs Marriott $6�87 Price Club/Costco 93/94 One Eleven Town Ctr as�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 05/06 Walmart/Sams Supercenters 05/06 Kohls 07/08 171 City of Palm Desert Supplemental FY 2008 and 2007 Breakdown of Basic 1% Property Tax Rate Not In Redevelopment Project Area � � �, ,:: �� � �.� .. ,� � � ��� � � ,� z �,; � ���,r � �� � � .....a.�'�. „a :<.,,,::• &.....5. E � .��. ..� ;� . _..£ 28.177327% 28.177327% c�'�^-, > . �� :;�.r ' � . N y., . 3„�'�.1�!�. ���° �� ,'"° �°'` 2.728242% 2.728242% �:-:., ,•� � �� ��y. f�`� ;� 5.873086% 5.873086% , �F ,�,;.� �" � � �����`.` 0.000000% 0.000000% F�. ��`� �. � � � �,� � �' 36.221587% � � �,.;,,�:��„ � 36.221587% "l .�.�:� S. ��F-::. � ..<��... �`�"`*. �.,� �,a. .,. • ���. �, ��.�,;�� t�`�„�`\.':, o 0 \ 7.526714/a 7.526714/o ,� ` � ": " � ` 0.426231°/a 0.426231% c � w'� - ;, � ..;�.;;�. � s �.,. ` ' � �p° g � 4.094919°/a 4.094919% � �m ,� � �� ����"` 1.996808% 1.996808% ��c �.v � a,s. ��"T �����•' �" 0.339927% 0.339927% � �; � �u �. .:, '�'� � � `% 2.071624% 2.071624% ;.;>i �,„�:. .._ �.. ��.-. : �-._ ......: � ` f� � 1.369698°/a 1369698% �. ,,�.• �=z> .. ., .. • � e� , � `r�:, "�` Y„ 2.736607% 2.736607% .�� .�:Y' k ������� � � �'� ���" �� *"��>��ry' 2.972906/0 2.972906/0 zc;` o � ak �; a ,.,.: .., � ��� ���� � ,� � .,� .� '. � � " ' 3.464324% 3.464324% � ; .. ,,..;., �. �.. -.. ��..,..,.. �� ' ��`�' �`"� �� y 100.000000% 100.000000% , . -r; �..::.� �:_;.�� ,:,�.. ��:_ : (1)Ciry of Palm Desert is a No-Low Property Tax Ciry and the 7%represents what the state a/locates to No-Gow Properry Tax Cdties. Source:County of Riverside,Properry Tax Aldocation Percentages, TRA 018-041. 172 City of Palm Desert Property Tax Rates Direct and Overlapping Property Tax Rates Last Eight Fiscal Years �� �.:, �r F �� � �. �.:; .��: � �-:;,. � � a� : �A���n�t ��)'�3t�� � _ "��'� _ � ���µ�., � £�1� � {� � � � T�+1�Y�� �. �`?&`. t�'�'�'� `k�.. .✓s' � , a,, .,�:,., .,rt,�n M� w '�• a` .....�.'�.�L �.....�°'.'.a3�'.� . .�w.�a ' ,. , .. ...:::. '"'%�.,._:. ..�.:.. ......,_.. . , . ��.......�..>, ,. ,... . . „�. ,.�.,.... �, .; fr�. ,� +..,xa.....�..,zW � � a�=; 1.00000 1.00000 0.07561 OA1995 0.04000 0.00230 � � �:: � ��+. ��;:; 1.00000 1.00000 0.07613 0.01995 0.02080 0.01560 � �:, � n; ;� � � 1.00000 1.00000 0.07674 0.01995 0.02080 0.02520 ����3 V i��..��r__ y�\„� 1.00000 1.00000 0.09581 0.01994 0.02080 OA2690 �� � 1.00000 1.00000 0.09750 0.00000 0.02080 0.02870 ���.:����.. �"';� 1.00000 1.00000 0.09750 0.00000 0.02080 0.03060 � � 1.00000 1.00000 0.09750 0.00000 0.02080 0.03060 ���������; � ,� �; 1.00000 1.00000 0.09750 0.00000 0.02080 0.04060 Notes: Proposition 13 limits the ability of the city to raise the properry tax rate. The Ciry of Palm Desert chose to implement this schedule retroactively for the last eight years. Governments are encouraged, but not required, to implement retroactively. Ultimately, this schedule will dnclude ten years. Source:CalMuni Statistics Inc , 173 City of Palm Desert Principal Property Taxpayers Current Year and Ten Years Ago �/ '� � -3 a�i5 .•� :'' t'�� �.�k� �r ; �,� 3 ��`�''`` t'��� �' E ;..� �.•:..�., ,�,,: �: h., t ,; �� '+' r,t• ;a�' *�. �� s s�� z ��'' ��� ;e'."""y, � � r., �.. � .. , ; . ,.,, �,>�. E. , �; �,:. �;: ,: u �': ��:. ' k53 ��' ✓a � �, �. ..�,: •:al k� �i..� :�:�'.. :.� r. aa �y�,c''.*w ^c5, $ 269,412,639 1 2.97% $180,082,114 1 4.37% ��.:r, s,;,vr 133,043,368 2 1.51% 67,233,066 2 1.91% ,����,r=i: .,;�._ �� y � 84,863,834 3 0.96% �,�" z 59,679,408 3 1.69% k � � �� 23,778,809 4 0.61% � �� �= t,�" 75,697,198 4 0.76% ,� � f ; ,;: �. �, f � „, �* ,,< 80,872,011 5 0.55% ` 21,075,491 5 0.55% �u�.�,;;,, , . ,:::s-.:;.� ` y � 37,127,327 6 0.41% � �`�5 18,771,663 6 0.53% ��,'''{ �_: 41,819,730 7 0.38% 17,648,792 7 0.50% �:. ;^, �,' ��.,, �:� ahv 3:,�� r��?M. 33,649,303 8 0.38% s " " 16,377,049 8 0.47% �x� ��-. ���i�`� "'�. �,sv : „ �_ 28,769,329 9 0.33% 48,707,276 9 0.45% �- �& \:�� i: ...°k, .. ,.\�.:.�d,,' „:��¢ .3 i� � 25,364,517 10 0.29% 17,223,749 10 0.42% �r, � �� "��_ ,,:;��. � ;.� �� � � ��"" ° ��` `;f�' $ 470,577,417 11.50% � . ��..,.,,h��,�; $ 810,619,256 8.54/o � � Note:The estimated properry ta.z revenue stated above is bused upon net tcixable values,tcLr ratios and base year values thut impact the revenue cule:dalion.As u result,purcele with the same assessed value that are assigned to di�erent taz rate areas mcry contribute dissimilur umounte qftotal revenue to the City und Redevelopmenl Agency. Souree:HdG Coren&Cone thru Riverside Counry Assessor OZ-08 Combined Tcix IZolls 174 City of Palm Desert Property Tax Levies and Coilections Last Eight Fiscal Years � :� ��• � ��� ��:^� E �F` y �,�:'�.�u'r�'Ys., $c, .,i,^��� 1 �,.., 3 I * ° by�i"`�. "',� hiW`,�,. a ,a Kc � ��•: S r �.: � � �,�'�". ,�\� �5�+..:�3 *`C. '"' �,�Z� �.S •��., . 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% 75,285 $ 4,318,880 100.00% 2007 4,820,583 4,575,158 94.91% 245,425 $ 4,820,583 100.00% 2008 5,206,384 4,734,970 90.95% 471,414 $ 5,206,384 100.00% (!)Gity ofPalm Desert is on the°Teeter P[an"with the County oflUverside.1'he frrs!paynrent was reeeived in the fiscal year 1993i9d. (1)City ofPulm Desert is a"No-Low Properry Tcu City". Proposrtfon 13 ro!!ed the tax rates back to 1973 which is when the Ciry of Palm Desert Incorporated and the Property Tcix rates were�ero. Based on curren!stute law the County allocades 7%of the 1%assessed values within the City[ess the Redevelopnrent Agency tax increment. Fiscal Year 1992�93 was the frrst year to receive the No/Low tcixes. (3)Fiscal Year/99h'97 final tota!collected includes udjustments for No-I,ow properry tax collections from prior years modified by the County ofRiverside. The County adjusted the payment to the City oJPalm Deser[(FY l995-96)for the annexation nJ'Palm Desert Country Club. (-IJ Itticludes tca collecaions accrued as of,Iune 3Q 2008 and reeeived before the completion of the audit field work. Note: "!'he City ofPalm Desert chose m rmplement this schedule retroactrvely far the last seven years. (iovernnrents are encouraged,but not required,to implement retroactively. Ultinrately,this schedu[e will include ten years. Source:2iversrde CoUnty Auditor Controller O�ce and City ofPalm Desert 175 City of Palm Desert Supplemental Top 25 Sales Tax Generators Graph-Historical Sales Tax Trends June 30,2008 Top 25 Sales Tax Generators(1) Primary Economic Category ALBERTSON'S FOOD CENTERS FOOD MARKETS ARCO AM/PM SERVICE STATIONS BED BATH&BEYOND MISCELLANEOUS RETAIL BEST BUY STORES LP FURNITURE/APPLIANCE CIRCUIT CITY STORES FURNITURE/APPLIANCE CHEVRON USA SERVICE STATIONS COSTCO WHOLESALE COMPANY DEPARTMENTSTORES DESERT E�ECTRIC SUPPLY BLDG.MATLS-WHSLE DESERT SPRINGS RESORT&SPA RESTAURANTS HIGH TECH IRRIGATION SPECIAL MATLS-WHSLE J.C.PENNY COMPANY INC DEPARTMENT STORES KOHLS DEPARTMENTSTORES LEGACY HOME FURNISHINGS FURNITURE/APPLIANCE LOWE'S HOME IMPROVEMENT BLDG.MATLS-WHSLE MACY'S DEPARTMENT STORES DEPARTMENT STORES MARSHALLS OF CA APPAREL STORES MERVYN'S STORE APPAREL STORES PETE CARLSONS GOLF&TENNIS RECREATION PRODUCTS SAKS FIFTH AVENUE DEPARTMENT STORES SAM'S CLUB DEPARTMENT STORES SEARS-ROEBUCK AND CO DEPARTMENT STORES TARGET STORE DEPARTMENT STORES TOMMY BAHAMA RESTAURANTS WAL-MART SUPERCENTER SPECIAL MATLS-WHSLE WEST COAST TURF DEPARTMENT STORES p)Listed in Alphabetical Order Sales and Use Tax Trends FY 2001- 2008 %_%Change from PriorYear Millions $20.0 .............................................................................................................................................................................................................................................................................................................................................................. $�s.o ,50� oa% _z5% $�s.o $17.0 $16A ii i% z�% -In Lieu' $15.0 ;�::.� $„14.0 31% 32% ' 45% y $�3.0 ��� .i � � $�2.0 %'�"; " �: //.. $11A �t; s< � $10.0 t _ N ,. tr!,< � .. N � O O O O O � � p O O N N N N N N N N Amounb in munons 13.620 13.027 13.463 15.138 15.453 17.776 17.918 17.481 Note:Current('allfornia law prohibi�s proJuc�ion q(inJinidual�ax infarmauan as an effort not[o infringe on proprietary informa�ion,therefore confidentral Informaiion�vhich 1s pra�ec�ed by law is not disc]osed. * 77ie.Staie of California exchanged Sales Tax Revenve�vith Propertv�axes,�his amount represents the portian oJsales�ax that were exchanged. Sonrce:SBO£Dam.MnnlServires LLC In Lien grven to ci(v,(rom Smte F,RAF'Properry Taxes.CIN of PnJm Desert 176 City of Palm Desert Supplemental Taxable Sales by Category Last Eight Calendar Years �`� �` �'� " � �� � �� � �; ���, � � �, �� ��r �• �. � .. ���,�,�, , : .:,•. . ...,,, �..::.. � �.�::: � � ' � � $ 159,207 $ 155,859 $ 141,510 $ 132,831 $ 108,829 $ 97,924 $ 93,792 $ 92,192 � .....� � ��. � �*'' 388,583 392,738 362,512 340,277 307,186 278,583 272,856 269,776 �� •°�. � '° 49,398 53,870 50,556 47,455 52,461 51,738 52,282 55,817 ��`. ',,;,:. ;,; �� 181,731 184,954 178,248 167,315 152,508 148,228 155,911 153,970 M��.,: � 3`� a'�;.;;'.. �' "" �� 135,775 161,997 166,109 155,921 135,694 128,623 125,130 128,899 +��, �. �.a+ ;� $ 95,633 69,773 73,228 68,737 56,180 54,111 64,251 57,865 �� �� � � x���� i„�� � '�" �'� ; �`:N 8,596 6,121 6,245 5,862 8,211 6,904 8,825 8,108 "� ��,�� Y. _3 .'� � ���\\,� � k'�° 63,969 59,401 48,564 45,585 39,146 23,930 22,633 25,807 �F;_ �.. �` � ���'� •.�:.1 � y�� � 282,973 295,830 281,388 264,129 243,474 228,286 220,252 227,591 � g�,,;,;� 219,411 222,177 218,591 205,184 193,041 190,058 195,137 197,961 Amounts in mitlions Totals $ 1,585,276 $1,602,720 $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% 1.00% 1.00% (/)Non-retai!are a mix of manufacturers,di.rtributors,builders and professionals se!/ing direct to consumers. 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 tau imposed by the Counry of Riverside. 77te Ciry of Palm Desert receives L%of all sales tax generated wdthin the city limits. The Ciry of Palm Desert chose to implement this schedule retroactively for the last edght years. Governments are encouraged,but not required,to implement retroacrively. Ultimately,this schedule wdll inclucte ten years. Source:Economzcs and Politics Inc vza Califomia State Board of Equaliza/zon 177 City of Palm Desert Supplemental Prinicipal Sales Tax Remitters Current and Eight Calendar Years Agocz� �;��� � `� �: � � � �z �� �� �.,�. � 2 ..r �i� a �,�� �` s � ,,,,,,, . ' '° $ 388,583 1 24.51% $ 269,800 1 22.15% �?` o 282,973 2 17.85% 227,600 2 18.69/o _� �� K E 0 s : 219,411 3 13.84% 198,000 3 16.26/o ,� ;° 181,731 4 11.46% 154,000 4 12.64% \ o ''�, �\ 159,207 5 10.04% 128,900 5 10.58/o z R f y. ' � ' " � 135,775 6 8.56% 92,200 6 7.57% 95,633 7 6.03% 57,870 7 4.75% �f ,, � 63,969 8 4.04% 25,800 9 2.12% � � ` 3.12% 55,800 8 4.58% �„; 49,398 9 � �'`°''` v` 8,596 10 0.54% 8,100 10 0.66% :y .," Amounts in millions Totals $ 1,585,276 $ 1,218,070 (l)Non-retail are a mix of manufacturers,distrdbutors,buidders and professionals selldng direct to consumers. (2)Ciry only has the last eight years of informarron avadlable. Note: Current California/aw prohibits production of indivrdual tcix information as an effort not to infringe on proprietary information,therefore confidential information which rs protected by law is ttot disclosed. Source:Economics and Po/itics/nc via California State Board of Eguali_ation 178 Ciry of Palm Desert Ratios of Outstanding Debt by Type Last Eight Fiscal Years � � ' r _, w ..:�. ', � a .,�,u' �+.,� ,� � ro �°�y� d � ����t�� y,���,�,T �L w �u . �,� �. , a � ���� �� �i,yS,�i ���a°,�., a(�.; � � �FSa�� .� �...'�. �;� a„ ° � �������' ��� t�¢ ...,�:� 9. � �, e� � ..� E,.r: ..._ � .�: � . , � � � , ��� � �� •..,o�, a . -- '�' �' ;� .�.� �� � � �_ ':,:'���.�� � :�.. ���ai�������.�+� �������++����� � 3 � 2001 193,015,000 48,415,000 - 373,556 241,803,556 13.90% 5,712 2002 207,990,000 43,145,000 - 106,373 251,241,373 15.96% 5,861 2003 234,464,000 40,528,000 1,104,363 1,146,582 277,242,945 16.73% 6,313 2004 256,000,000 28,623,000 981,656 833,358 286,438,014 16.16% 6,392 2005 250,485,000 26,050,000 858,949 509,755 277,903,704 13.45%° 5,639 2006 245,000,000 73,855,000 736,242 170,493 319,025,493 15.21%` 6,440 2007 a 421,819,894 122,393,000 613,535 2,181,546 547,007,975 25.65%` 10,987 2008 412,694,700 115,398,000 490,828 1,582,782 530,166,310 21.49% 10,414 Notec:Details regarding the crty's ou[standing debt can be found in the no[es to the frnancial statements. The City oJPalm Desert chose to implement thrs schedule retroactively jor the/ast eight years. Governments are encouraged,but not required,to rmplement retroactrvely. Ultrmately,this schedu[e will ittclude ten years. -The ciry issued 350SI mr![ion of specra!assessment honds in fisca!year end 2007 allocated to three separate assessment districts./n addition rhe City's Redevelopment Agency issued 528-l.37 rn honds of which�l83.!S was new defit. b-Persona!rncome,popu[ation and per caprta information provrde by John E.Htuing,Ph.D.Economies&Poli6es,Ine., California Department of Finance, and U.S Census Bureau. `-Persona[Income estrmated 6ased on average growth rate of previous four years.The growth rate fac[or used was 1.5°/n.Income data will be updated once the aetual ctuta rs available. `�-Specia!Assessment includes Highlands Undergrounding AD No#OJ-01,as ofJune 30,2008 lhe balance was.�2,7d8,000 179 City of Palm Desert Ratios of General Bonded Debt Outstanding Last Eight Fiscal Years � , � ,� .. �u�,__ ; .� �,� �,, =,a.-:. .,�v \ ��, �;� � ,, � �;�� ���: r��•� � �� � �?� �� �� t� �a��. ��` a. � �``r R " � s��. ��,� �� � ' ;� ,�a, 2001 193,015,000 2.990% $ 4,559 2002 207,990,000 2.880% $ 4,852 2003 234,464,000 2.930% $ 5,339 2004 256,000,000 2.820% $ 5,713 2005 250,485,000 2.400% $ 5,083 2006 245,000,000 2.080% $ 4,946 2007 421,819,894 2,783,000 3.250% $ 8,478 2008 412,694,700 2,748,000 3.170% $ 8,107 Notes: Details regarding the ciry's outstanding debd can be found in the notes to the financial statements. The Caty of Palm Desert chose to implement this schedule retroactively for the dast eight years. Governments are encouraged, but not required,to implement retroactively. Ultimately,this schedule will include ten years. °- County of Riverside,County Auditor Controller,Assessed valuations b-Population informationprovided by John E.Husing,Ph.D.Economics&Politics,Inc., California Department of Finance., and U S Census Bureau. 180 City of Palm Desert Supplemental Special Assesment Information June 30,2008 1995 C 21103 Ol-Ol 2003 Ol-Ol 2003 Ol-Ol 2004 R-Bonds Revenue Bonda Silver District Name�Descripfion Marks-Roos Pool Revenue Bonds 9 Revenue Bonds 94 Spur RancA 9&t (87-1)�� 2 Sun[errace 3 Merano Utility Undergroaoding Canyone @ Bighom Bond Issue Date 09/26/9 06/25/0 0625/0 06/25/0. 02/19/0 Final Maturity Data (KJ/02/0 09/02/l 09/02/2 09/02/2 09/02/1 Hi hest Interest Rate 5J0% 4.80% 5 25% 5.37i% 5.100% BondlssueAmount 1,775,000 93Q000 I,153,000 2,3JQ000 2,955,000 Matured Principal 1,28Q000 340,000 248,000 265 000 955,000 CalledPrincipal 495,000 235,000 - 1IQ000 1,22Q000 Outstanding Bonds(4) - 355,000 905,000 1,965,000 7RQ000 RedemptionPremium 325% 3.00% 3.00°/ 3.00% 3.00% Original Parcels 1,317 71 201 250 73 AcriveParcels I)3 65 121 197 20 ReserveRequirement(5) S 0 $ 35,500 $ 90,500 $ 166,000 $ 78,000 ReserveBalance08/09(I) S 0 $ 90.S16 $ RQ408 $ I66,J77 $ 142,152 Principal Due 08/09(2) 0 70,000 55,000 6Q000 65,000 Principal Levied 08/09(3) - 77,817 55,000 62,297 67,468 Interest Due OS/09(2) 0 18,750 42,310 99,R13 35,025 Interest Levied OS/09(3) 0 22,480 40,410 IOQ680 36,958 08/09 Del9nquenry Rate 0.73% 1 S t% 3.41% 824% 0.00% Arbitrage Installment Computation Date: 09/02/1 09/02/0 09/02/0 12/17/0 12/16/0 90%Rebate Due ArbihageYieldRate i.R194% 7.9769% 6672% 5.1577°/ 5.83R6% Arbitrage-Amount Owed - ' ' - - ConbnuingDisclosure LastReport �y�z�ZOo 12/12/200 12/12/200 l2/12200 l2/l2/200 Issued: Community z�-2 Series 2008 1997 Bonds Section 29 201M-1 Palm Desert Communi Facilities Facilities District No �3' 91-1 Asseeament District Highlands District Name�Description �ndian Rid e Z005'1(Univeraity Limited Obligafion Undergrounding District No.91-1 g Park)Special Tax �mprovemeot Series 2006 Specisl Tax 1992A R Bonds Series 2006A gonds Refunding Bonds Bond Issue Date 12/I 1/9 OS/09N 3/29/200 8/SR00 l2/19200 Final Maturity Date 10/OIYL 09/01/3 9/2203 9Y2/203 10/I/202 Highest[nterestRate 6.800% 53�1% 5.100% 0.000% 4.000% Bond[ssue Amount 23,509,000 67,915,000 29,430,000 3,165,000 IQ935 000 MaturedPrincipal 7,189,000 825,000 - RI,000 I,665,000 CalledPrincipal 16,320,000 - - 3R2,000 - Outstanding Bonds(4) - 67,09Q000 29,43Q000 2,902,000 9,270,000 RademptionPrertuum 3.00% 3.00% 3A0% 3.00% 3A0% Onginal Parcels I,L54 37 167 172 �,�34 Aclive Parcels 1,063 27 318 135 I,063 Reserve Requiremant(5) S 0 $ 4,587,219 $ 1,945,358 NA $ 1,093,500 Reserva Balance 07/08(1) $ 0 $ 4,62U,473 $ 1,94535R NA $ I 093,500 Principal Due 08/09(2) - 1.165,000 505.000 4N,000 855,UU0 Principal Leviad 08/09(3) - 1,165,000 505,000 47,J38 855,000 Interast Due OS/09(2) - 3p22,219 1,437.Afi0 134,306 314,210 Interest Levied 08/09(3) - 3,445,759 1,437,860 I35,180 314,210 07/08DelinquencyBate 0.00% 0.63% 000% 5.44% 160% Arbihage Ins[allment Computation Date: NA OS/09/I 03/29/I 08/OR/I OR/OS/I l 90%Rebate Due Arbi[rageYieldRate 0.0000% 53599% 5,0134% 5.0691% 3.Sfi81% Arbi[rage-Amoun[Owed - - " - ContinuingDisclosu�e LastReport �Z��Z�z00 12/12l200 OUIS/2008 NA NA Issued (IJ Reserve Rnl�mces are as of 990'08.shortfall will fie recovered by nd�Httonn/leiry,axd interest aarnings see Flnnncin!S'tatemettts No(e/0 (2J Amounr represents principnl and+nterest m be ca[7ecteAon the FY 07�08 mx roll j r Uebt 5'ervYce Pnymeat due ln FY 08.09. (3J Levied amwm(s reflect ndJustments f r c�ttstruction fimds,reserve f:mAs,redemp6on fimdr and other ndjustments. /J)Repree�ents Ou(stnnd7ng Bands aJ�er September 2,IOON prfnelpnl p�mnerct. (5)Reserve Req�iiremenl as oj9i2�T18 � (6f 7Re 7995 C Mnrks-Roos Pool(87-[J was pnid tn fiJ!drirtng the 2007100R fiscal year.77iere are no mme bonds outstnnding(or dris i.s ue. (7J Dre 1997 967 Bonds u�os rejmAed in fid/on Aprif I,2008,wiUr Communiiies FnclGtles Dt.strict no.9l-/Improvemenq Speclal T Refimdircg Bnnd.s So�vice�Muni Finnncinl Annnaf Report 181 City of Palm Desert Direct and Overlapping Government Acitivities Debt J[JNE 30,2008 2007/08 Assessed Valuation: $ 13,142,781,016 Redevelopment Incremental Valuation: 8,434,944,115 Adjusted Assessed Valuation: $ 4,707,836,901 City's Share of DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT: Total Debt 6/30/08 °/Applicable(1) Debt 6/30/08 Desert Community College District $ 337,870,330 13293% $ 44,913,103 Desert Sands Unified School Dishict Gene�al Obligation Bonds 214,839,044 27.725% 59,564,l25 Desert Sands Unified School District Lease Tax Obligations 13,590,000 27.725% 3,767,828 Palm Springs Unified School Dis[rict 237,685,000 2321% 5,516,669 Coachella Valley County Water District,ID No.54 3,275,000 62.450% 2,045,238 Coachella Valley County Water District,ID No.55 4,590,000 4.306% 197,645 Coachella Valley Counry Water District,ID No.58 2,160,000 34.259% 739,994 City of Palm Desert 0 100.000% 0 City of Palm Desert 1915 Act Bonds 36,748,000 100.000% 36,748,000 City of Palm Desert Community Facilities District No.91-1 10,935,000 100.000% 10,935,000 City of Palm Desert Community Facilities District No.2005-1 67,915,000 100.000% 67,915,000 TOTAL D[RECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 232,342,602 OVERLAPPING GENERAL FUND OBLIGAT[ON DEBT: Riverside Counry General Fund Obligations $ 701,562,000 2J10% $ 19,012,345 Riverside Counry Pensions Obligations 387,995,000 2.710°/ 10,514,665 Riverside Counry Boazd of Educatio�Certificate of Participation 9,275,000 2910% 251,353 Desert Sands Unified School District Certificates of Par[icipation 12,47Q000 27.725% 3,443,445 Coachella Valley Recreation and Park District Certificates of Participation 2,S 10,000 21.997% 552,125 Coachella Valley Counry Water District,[D No.71 Certificate of Participation 6,390,000 19.006% 1,214,483 TOTAL GROSS OVERLAPPING GENERAL FUND OBL[GATION DEBT S 34,988,416 Less: Riverside Counry Adminishative Center Authoriry 474,361 Palm Desert Water Services District Certificates of Participation(3) - TOTAL NET OVERLAPP[NG GENERAL FUND OBLIGATION DEBT $ 34,514,055 GROSS COMBINED TOTAL DEBT 267,337,018 (2) NET COMBINED TOTAL DEBT 266,856,657 (1)Percentage of overlapping ageny's assessed valuation located within bondaries of city (2)Excludes tax revenue anticipation noted,enterprise revenue,mortage revenue and tax allocation bonds and non-bonded capital lease obliga[ions (3)Palm Desert Water Services District C.O.P.was assumed by Coachella Valley Water District Ratios[0 2007-08 Assessed Valualtions: Direct Debt 0.00% Total Direct and Overlapping Tax and Assessment Debt 1.77% Ratios to Adjusted Valuations Gross Combined Total Debt 5.68% Net Combined Total Debt 5.67% STATE SCHOOL BUILDING A[D REPAYABLE AS OF 6/30/08 $ 0 Source:Califomia Municipal Statistics,[nc.,San Francisco 182 Ciry of Palm Desert Legal Debt Margin Information Last Eight Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2008 " � �� %�` ,� $13,142,781,016 .a �s:>, � � '�� � ?.>` 1,971,408,152 � hh r ^ �� �� . �K r � � \5.� •��':�'� � ��� 2,748,000 .;� „� t�ya. ; , " � i��,i"�^� � � vy^��,�.Y1 fi� k \��� ,�� - ¢ ��? �y,�„;s�� 2,748,000 � E 1,968,660,152 ��,•'�,.� ����' i�� �•^.���,� FISCAL YEAR 2001 2002 2003 2004 2005 2006 2007 2008 s.�i3W:;'������ � �.' 3 ,����� �' 967,521,240 1,084,078,030 1,200,179,536 1,306,436,757 1,397,304,489 1,582,592,579 1,783,572,979 t,971,408,152 �- ,. '� - - - - - - 2,783,000 2,746.000 a ��::d11� � �ia� � 967,521,240 1,084,078,030 1,200,179,536 1,306,436,757 1,397,304,489 1,582,592,579 1,780,789,979 1,968,660,152 '��' ,,,;. � y�� ' � ��.. � 0% 0°k 0% 0% 0% 0% 0.16% 0.14% ([)Sec�ion a3605 of the C'a(ifornia Govemmettt Code. Note:77te City oJPaTm De.rert chose to implement this schedule retrcwctively jnr!he/ast eight years. Governmenrs are encouraged,but not reqiured,lo impfement retrrwctively. U/rimately,ihis schedule will inclvde[en years. Source:CaliJ'omfa Mvnicipal Statistic,Inc.San H�rancisco 183 Ciry of Palm Desert Pledged-Revenue Coverage Last Eight Fiscal Years � � �� ���� ���� � �'' � ,� � � � .. � *�a.�:r :'. �.q�a .,�:��, ...;.��;: r,;rx. '- . �. .• .-- �,. �•� �.l � � � �� ^�' �� �.�.� � � �� '` � � ,'��' \ s�. 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 11,748,004 123 2005 2,878,134 2,073,000 1,483,245 0.8093 23,585,980 5,260,000 12,366,733 1.34 2006 a 2,788,698 1,645,000 1,378,548 0.9223 24,065,285 5,485,000 12,409,968 1.34 2007 a 4,444,967 1,972,000 3,464,355 0.8176 28,675,094 7,704,000 16,434,841 1.19 2008 6,245,888 1,635,000 ` 5,414,793 0.8860 41,978,187 10,610,000 21,402,246 1.31 Notes:Details regarding rhe ciry's outstanding debt can be found in the notes m[he financral statemenrs. l'he City of Palm Desert chose ro implement ihis schedule retroacdvely for the la.rt erghl yems. Governments are encouraged,but not required,to implemen[retroactively. Uliimately,this schedule wrll inc[ude�en years. °-7he city issued$SO.i!million of specia!assessment bonds in fiscal year end 2007.The RDA issuerl$28d.37 mrllion ofdebt of which$L83.l5 was new debt. ' °-Tax rncremenl bond.s are backed by properry tctt increment based on calcu[ation provided 6y the Riverside Counry taz assessor offibe. Additiona!informantion on tax increment can be found in the notes to the financial s[alements. `-The l997 91-1 Bondt was refunded Fn full on Apri/1,2008,N�uh Communi[ies Faci(ities District no.9!-! lmprovementJ Speeial Tcix Refuncdng Honds Additiona[pnncipa/on note 1-1 reflects rhe�otal prineipal paid along N�rrh the refunded portion. 184 City of Palm Desert Demographic& Economic Statistics Last Eight Calendar Years y, � F�_ z �:;: b k,.� s;' �:. 3L � . .u�i.. ��:>: i..S_.�.��b'/':� �h.�U."�i..� .:�5.z.. ..::d'w.. i' . -.. ��. . . '- . . ._. . ... .,. � __ .. . . ....�_. ..,o.. ...�.a - 2008 50,907 2.3% $ 2,439,420,309 $ 47,919 2,088,322 6.91% 4.1% 2007 49,752 0.4% 2,132,710,348 42,867 2,031,625 4.01% 3.6% 2006 49,539 0.5% 2,097,434,084 42,339 1,953,330 4.07% 2.9% 2005 49,280 10.0% 2,066,437,521 41,933 1,877,000 5.64% 3.1% 2004 44,812 2.0% 1,772,405,266 39,552 1,776,743 5.00% 3.5% 2003 43,917 2.5% 1,657,414,199 37,740 1,692,187 2.91% 3.8% 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% 3.2% 2000 37,634 3.7% 1,713,352,340 45,527 1,509,114 2.43% 3.1% No[e: The Ciry of Palm Desert chose to implement d:is schedule retroactively for dhe last eight years. Governments are encouraged,bud not reyuired,to implement retroactively. [/ltimately,this schedule wiU include ten years. a-Yersonul income,population and per capita informution provided by John E.Husing,Ph.D.Economics&Politics Inc., Cadiforna Deparlment of Finance.,and U.S.Census Bureau. b-Personal Income estimated based on average growd7 rate of previous f'our years.The growth rate factar used was 1.5%.Income data w!!1 he upda�ed once the actual data is uvuiluble. c-Unemployment rnte for fiscal year 07�08 is based on June 30,2008 State of California Employment Development Department Labor Market lnJormatFon Division(not seasonally adjusted) Sources:State Department ofFinance, U.S.Dept ojLubor.Jolen E.Husing,PhD,Economics&Po/itics,Inc,State Employment Development Department 185 Ciry of Palm Desert Principal Employers Current and Ten Years Ago � �.�_ �� ,�, �"' �°` £'' ;,` ,��,. �_ � �., �:�. �,s�`�, ,�;. �• 's.=�' ...>.:: � �. �� . � \ $�,�3 ���y�� 1,300 1 3.95% Q �� �, �����y' ,y r s � �'� � � � a���'� 700 2 2.13% '' , c h'� �ua �, �u�� �.; ��� � . $" E i''�� � u „�.,A '�. �� ' ' ���, �:: 630 3 1.91% � ��. � � �?� `�"� `� �"'� 500 4 1.52% s�\�� �,�- �1a��.. �,��;�� � �; a � � �=�'� 500 5 1.52% � ��, '� r � � �; �� ��� : ��, , 400 6 1.22% ;��r `• yy �^ ` \ �,��� ` ,�{, � r�� 300 7 0.91% ��. �r � e ' '' ��.�� s r �a � � �,�i � Yu�� � ������� . ?r �+> ��,��"' s,�"`�=�� ��'' 250 8 0.76% �; �: ��'�x � �� � � ���"`�� d � 236 9 0.72% ' �'� ��, �„a , �� 3`���c x � � �� �;��"�� ��m`� �` �� � y^�� � , ,iy.. .:. 220 10 0.67% � . ;l�� _ �.�. .v, �. ����.�_ Totals 5,036 15% Totals - 0% (1)The information for/999 is not available (2)As of Jauary 1,2008 Sources:MB/A Muni-Services thru America's Labor Market Information System(ALM/S). 186 City of Palm Desert Supplemental Miscellaneous Statistics June 30, 2008 City/Municipal Government Form of Gorvernment: Council-City Manager/Charter City Date of Incorporation: November 26, 1973 Number of Employees 169 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 159 paved street miles Number of Business Licenses 10,992 active business licenses CONTRACT SERVICES: Police Department Contract with Riverside County Sheriff-75 positions plus 19 support staff Fire Department Contract with Riverside County/State Fire 47 positions plus 5 Fire Prevention Staff Animal Control Riverside County Animal Services Water&Sewer: Coachella Valley Water District Trash Collection Burrtec-Waste Management Electric Southern Calif. Edison Gas Southern California Gas Telephone Verizon Airport Palm Springs International Airport Public Education Elementary School(grades K-5) 3 Middle School (grades 6-8) 1 High School (grades 9- 12) 1 Community College-C.O.D. 1 CSUSB-Palm Desert Campus 1 Insurance Coveracte General Liability Coverage Calif. Joint Powers Insurance Authority 50 Million/Event (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-Standard Insurance Company Life Standard Insurance Company Retirement California PERS-Public Employers Retirement System Source:City of Pa[m Desert 187 City of Palm Desert Full-time Equivalent City Government Employee's by Function/Program Last Eight Fiscal Years z. �,n '.���c ..�a:; '�tm� ��,�, �,y�s �i .. _.,-�, s�,�i a •�ii ;,�'�' ����.;; �.,., �,r�����\: .'y:-;. .., o, � Y �;, . �• �.'`K . ; .d � � / ' �;�• 49 51 53 52 51 51 48 45 �'� � `�� ��� �"���;i:: 19 19 19 19 18 18 15 11 :.-,. �'.:..�y�� :.�'�.. "' ' �,: 35 35 28 28 28 32 30 31 �� ``'.�' 146 143 129 123 123 126 126 125 � =� ?� '�i � ��,^ � f� 52 44 49 39 39 39 36 35 � ��,.� �� � 14 18 11 16 16 16 16 14 �� Totals 315 310 289 277 275 282 271 261 (l)The City operates as a"contract city"utili�ing,pnmarrly,agreement with other governmental entities,private firms and individuals to provide services. Contracted services inc/ude:Police and Fire protection through the Counry of Riverside,animal control,hea/th services, legalservices andlandscape maintenance. Note: The Crty of Palm Desert chose to implement this schedule retroactive/y,for the last eight years. Governments are encouraged,but not required,to rmplement retroactively. Ultdmately,thrs schedule will include ten years. Sozrrce:City of Palm Desert Financial Plan,California Department of Forestry and Fire Protection,Riverside Counry SheriJ�s Department 188 City of Palm Desert Operating Indicators by Function/Program Last Three Fiscal Years �. �t��- �`���.,,..; �`�;� ��,� �:�g s`f � ..a�,���,'�.� ,s�5 ��.�� ��� t��'�`� �� � '�','�. � .z. � : a� ;.� '� / � 3' ':'� ,3.., �f�. R-' � e�.. '� '£a3 .' �F�...:. � ,�, .»��.y��a�.0 •«..'�4.' � i - '���� �� '�,�.na�.'��viRd'�.���.�� ..,�; .� .�e�. , _.. , .:. ,>..., � � 4gg 447 420 ���� ��� �+ a� �..sy„ '�£ "�, �t� �y.z,'.� ;y y,� �"�r�¢Yh� e ���"a.�.����,�.�'�2,�..<.�§�.�i.�?.. .��..«.�uw.��.��.rr�?„ ,.. ,, ., .. �� �` 67,940 73,467 71,820 3� }'`� '� � `' 23 798 24 089 24 359 � a �� �- ,a � �� ��� ,�� ��� �:, �� � rw � �, � � s.. .., �aM� � � �"' ��v �`` 1,550 1,430 543 �: �� ��a 770 694 1,374 �� � �� �� `� �` �"` �� 5,929 6,875 4,527 x � 600 'x` 1 �.�l� � �w�:.:, � � 6,908 6,785 6, �'��`�" �`��1�" y 154 241 928 ° �' ft 4,267 5,934 1,845 ��., b'�ri t � �����,^�3 is ,,:,������b �;���3 �� � � 3�• 4,012 5,813 5,683 �, ;-� :, '�n . � . � ' ' = 26,401 33 215 29 925 � ;�� � .. ; , � � „ � a '��: a S:F "�� ��i �� � � �' �,�.�:�� a:+�,M < t�, � �,, � �°�. �;y 1.7, . � 9 11 , � ,� � ,� ��a � � � ������ � � �,� � �� � v i\ �` i d i �r`r.S'mw � -�v � .����.�"r.�.\�..ax.a.a�..:s�,: � r ���\ �:-_ �� �r:✓.,..,ar� '� � � � �r% c �a.... . �� ' � ` "r�� � 5,949 4,510 2,967 ' ���� '� �r�k��� �� � � � ��,.Y � �� �`���, y �� 13� 8 3 r���p, s�.� � 112 5 0 97 9 92 083 '�� � ��e rt� � i � " � ���`���' �` '" '` u...,�. ��".,��� .r:,� p��..�`i`,�' .,"�.�. '�' .......�.: .,..�.ax< .�r.,.�,:� .� :`.... .. .,�;. _....� ... .. . ..... ....... .�..,,�"� (1) The City operates as a"contract city"utilizing,prlmarily,agreement with other governmental entities,private firms and indaviduals to provide servrces. Contracted services rnclude:Police and Fire protection through the County of Riverside,animal control,health services, legal services and landscape maintenance. Note: The City of Palm Desert chose to implement this schedule retroactively. Governments are encouraged, but not requirec�to implement retroactively. Ultimatety,this schedule wi[l include ten years. Sources:Riverside County Sheriffs Dept.,California State Department of Forestry&Fire Protection, City of Palm Desert,Coachella Valley Recreation&Park District,Burrtec Waste 189 City of Palm Desert Capital Asset Statistics by Function/Program Last Three Fiscal Years ,.� � Es;� �. � �`� ��� �` � , ,.a;� .�- � � �� �'� �� � , T._. � .. �,�.�: ..v, „ ,.. _ �„ . ,:,„ ... ..,., „, . ,.,,s ,,,,� : _.. .,: �., .�. ::. - ,r>,. �:. ��.`� '�� a�z� � ��va�; ��&''�r" u�t! ��� �:' - , � � a�r�� � 69 61 71 a �'�;�;r;y hE �'�u+�x T � � c� y�q,�� �, `�Y'-� � ,�,��,�; �'����'��.,��y: '��..,°:��3�.� , � � � ,��., �...,��� ��� .���� '�� ,? � 1 1 � �`°���„�\ 2 2 2 29 29 28 � ,, ,<: ���y����.:c�� �� t*�. 5 4 ��ye� ����7 � ��� ��"����������. ��.�� ���,� �`� � a��, 3 3 3 ` �'� 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved `�-� ,,. �t u" _. �,�E � 3 plus 1 Breathing Support 3 plus 1 Breathing Support 3 plus 1 Breathing Support �� � .>�i;, ., �= 3 3 3 :, i,•...,,, > ,� � '�+.,a��'�z: `+�" .�e' s 7 �r:;',� �'.' �Y S: .. ��1h "���vt�+ 3,a.- �;j,....�..✓t„�'.�`.., ..., Z� .a..��:�.., N :\�e�:��� ..<?�,�. ,.,,�.�... ��...,.ti., r.r, . .,.::�z _�°G��:���. �� �� �� , �5g 154 11 154 11 �y;� �` � : ��.. �;E \ .,t � �� 9� �� � 87 _ � � 85 ��xa _ 4���° '��,... " a 'u,....�o...�.�a i�:'�:'���......,ai�:��� �c .:._ 3.�,:.u�- ,. .. . '^`�...,r,. '�����"�......:.5�� �� ,n,. .:.:.� .�<..y „ . .. ;.�. ��c� �� 200 200 200 � : �3 13 11 ;,; � �_;!ii, 9 g 7 '� 11 11 S �;o- �., - 7 7 5 � � � g 9 6 �'� ����`� ������ a��\� 10 1� 8 � �� � "� f.�•r ���"�;„, i�` `�' 10 10 6 .r��� � � � � �� 2 2 � � 3 1.r1� �9� 1 � v� { .:� �'� � �,� c� H yr�e � �� �t� � wr��� � ' � ��. ��^ �� �.�:���p � � ���`���. � � �, a�w o � . � r �� r,. �Z� �� �.. a,3� � - .„y ��r �;;\ .�'� '. i ��"'":_\.�� E.���. ,.,.�1S.��c '�'.�"�*� � ��'a�... ..��o�.<��..:�:i: ...��a � `�� � �,,�� � 50 322 50 322 50 322 � � �?`t� �' �a ��+�� 100% 100% 100% ; y y,��:''y'�'`��j1� � � �r��� `e� "'?9.r���. �.'� �,�`�i . �.. " ��' ' y' : � �;� �..�.. �.,.,,..� �,'�..'.., t.�� „ ....,..�...�, ,,....�e . ��.�... ,. ..� ` ,' �f"�* m:. ,�... .,..,a. �_,s .. .� .'�.: .w ...0 � ".�x::� �`�` 11 10 9 �� '+: 7 6 6 S � '� � 6 � \\ � s �� � � � '���� u�a �„ V --'v �..� ���r .� °' � .. � , n � � „ ., �''m c ..�.�.�.,.� ; », 0 .� '-d. ..,.�f�__;;;o .�.�..?._ ��-.,,�:4.... ., s��...:�:,.; �'�,�. .:�c„s' � � 34,402 33,298 32,457 �', �� 3,`�` " 3�� 6,188 5,708 5,708 3w 9,732 11,316 10,836 °� �'>^ p 0 1,321 - �� � � ��� ��� � ffi `� # k✓'`�Y� �,p 1 � 'K° :1,�,.��'� t, ��`� ��.: � �\ _a�,�� ,�``�„!, �., \ �,..���'�..��u�.,?... �.�.�������'� �n:>�,, � .... _.�.�.-� 3 � �,"w 2 �L ,� _. 2 2 2 � ��'"��� 36 36 36 � `* ` � 160 160 160 f ��� � � 33 000 33 000 33 000 w- �`� ��' °� �� ��� ��z k � �` �"`����,.,��� ,�«...,�'>�,:' � ,,:�� ?2`.w 3;;a� . �s� '� . . .......a � � 5� � �` 46,688 47,263 46,602 a '''• �'��-� 43,898 41,182 43,725 y 90 586 88 445 90 327 %�ti �c��: .:,. � �._ r �'��e``�.: ` s': i�,.�'-- `�'�i � � ��i'. .. ��v"c,w.. ...�._,,,.�x.. ..., ._.,.,,F,����.: ....., ... .......�,. „,.. ...< , .. ,w,., .. ..,wa,._.:,�....�.a W-t,..� ...�,„x ..a�.�- ...........�.,�a�__..� (!)The Ciry operates as a"contraet city"utilrzing primarily,agreement with othergovernmental entities,private firms and individuals to provide services. Contracted services include:Police and Fire protection through the County ofRiverside,animal control,health services, legal services and[andscape maintenance. Note: The Ciry afPalm Desert chose to implement this schedule retroactFvely. Governments are encouraged,but not reyuired,to implement retroactively. Ultimately,this schedule will include ten years. Sources:Riverszde County Sheriff,s Dept.,California State Deparhnent of Farestry&Fire Protection, City ojPalm Desen,Coachella Vadley Recreation&Park District,Burrtec Waste 190 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. 191 THIS PAGE INTENTIONALLY LEFT BLANK 192 ; � ,T�^►S,9r City f alm e�ert I l•Fyty� ��y esurpa DINAH•SMOR6UR '��� `�' l , W ' y ¢ ti � } � Z Redevelopment � Agency GERAL•D�FQRD'U Project Areas � sW `,> g .�J N ''vj'�•RS 0 0 � rF,� � `�o FRANK•SINAFRA�DR �. FRANK� INA�TRA UR--a� T,q Project Area No.2 M�R�s'�'R ' ?987 o�p"r', w, �, W , �' a ¢ ' COUNTFbYCI-UB°D , C UNTRY'CL'UB'DR f w w b�� � � R' 7 ��. � i.G � W F Q � O '�� ii C �€�� u 2 a O � m � O—HOVL-EY L-N•W—O Y o � � � o ga ' � CJi�aa � V p �i��',� S' v.� y�. �� .: HOVL-EY j N•E W ` � , O r � Pr�oject Area No.3 Hou�E N�E � � �i991 PriS}ect�rea Na Q,'� , Z "9993 � ,� J Q MAGNESIA•PAL-L-S�UR r �• � � ^' � � 3 ' � .. K Y :� W 2 V PARK•VIEW'DR^Q a jv"�� p. S '` "% P ¢'� � W � p Q . Z� . , i ..CALIFORN�P.x .;, „ �Z� � �� a O � �a�—FRED•WARING�DR� '� 'FRED�WARING�UR` Project Rrea IVo 1 a': z Z � w ;' O W CJPit�/Ii7a1 �cW��';r', .� � H " � a c �?97� ` �r, ` .�: % _.�,.::... ..- $TrATE°HWY^171��. . . �EL PASEO ,�. - # ����MOWNTAIN^DR " .. .... O. � .:� . . . . . � .� � � � -. � -� � � S . : Q FAIRWAYDR Q � yGRAPEVINE^ST p a - o � a 0 Project Area No. 1 -Original(1975) � ►,�, n�ACK Rn 0 Project Area No. 1 -Added Territory (1982) � , � � . , _ , _ .� � � 0 Project Area No. 2(1987) � Mesn-view•uR;,,,PoaTo�PP 0 Project Area No. 3(1991) � ������&������ � � Project Area No.4(1993) 1. ^, ,��c��ca r��r����y L ._�:City Limits � �s�z = N �� � Q w„ - W � , E _ y , `, r i ` • s _ . �� � � � . . o os � z � . � r � ; � ies . 1 � '. _ , �. — July, 2004 193 City of Palm Desert RDA Project Area#1 and 1982 Annex FY 2008 Top Twenty Property Taxpayers x \4 . u'fi T.� ��:f 3 � iEY`�', Q ,h ).. '.`��� . � . 8'.: 5 W.: �c�.� ..:�' 'E h�.y..,�vv� H y 0: Y�� �'� '�. �� � ' 4,'.s ^ .. ..,� ' . � �.�,�\ .� � f� �. � .. � v . : � . . �f �3 3� ,b •a? a i:i.± � � �...A. �� � � $M 133,043,368 20.5% $00,000 sq.ft.Retail Shopping Mall Westfield � Sho m Town �:.� �.• PP 9 �:;; '� $ 84,863,834 13.1% Major Commercial/Retail Buildings � � $ 80,929,883 12.5% Golf Course/Country Club �y.;,,; Garden's at EI Paseo up-scale retail shopping ry�, $ 75,697,198 11.7% Center. ,, � °� . �� Mix Commercial Buildin s One-Eleven Town ,- $ 28,769,329 4.4% 9 � �:. �.,: Center Shopping Center �� � :; � n�;;;: �• $ 28,762,407 4.4% Recreationai/Residential Land Developer t�:;�� �,F �.:'�a� �. � , " $ 25,746,944 4.0% 198 Suite Hotel � � � . � �:: ��. �,. ' _' $ 20,400,000 3.1% Commercial Shopping Center \ @ $ 19,367,644 3.0% Retail Store in Wes�eld Mall(Macy's) °-�<. %' o Commercial Center Palms to Pines �~� � $ 17,450,000 2.7/o , a �,;., Ralphs/Washington Mutual '"'�' $ 15,875,802 2.4% Assissted Living Center �:i�...�f.� �, �:. ��,r, � ��i;;' ��:,,, $ 14,958,006 2.3% Retail Store in Wes�eld Mall(Sears) =� 'x z-.. �� ������ `�P�y�� $ 14,267,778 2.2% Westfield Mall(Macy's Parking Structure) � � ��..�., .�:? '� `' �'''"_ , $ 14,159,620 2.2% Residential Land Bighorn Development z: �;�,.. ; ,� : �y, � �, $ 14,047,254 2.2°/a Vacant Commerciai Land(Village Court) ��,,. .�� � � � -�y�, � ;� $ 13,299,488 2.0% Residential Land Bighorn Development ..� � ��... .�.s� � ' �.' � �" q , ���a,s � $ 12,592,614 1.9% Commercial Shopping Center&Parking lot ;, � � � �� „ $ 12,546,000 1.9% Commercial Shopping Center&Parking lot , ' .y ' :°aJ', �. • -- � .. � _... � �:„ v� : "� � .._, x � ::: � ���*�`�� �;; $ 11,523,991 1.8% 152 Room Hotel n •,.ia » ;,z� ��,, ' � . � �� $ 11,126,572 1.7% Residential Development � � � �� � ` r` � ��� r?� ,�*�� ��� � 4 a �,� s � �� � ���` � a 649,427,732 100% j,� s ����� ���r� �ax'� � a � y� �, r -- �.m � ���, ' �.�'`�� � G �.�y , . � �" °'a`�� � t �"�.eW. � �� �i,• �n�'. (I)Cumu[ative represents only!he top nventy properties. Source: Muniservrces LLC and Rrverside County Assessor 2007i2008 Combined Tax Ro![s 194 City of Palm Desert RDA Project Area#2 FY 2008 Top Twenty Property Taxpayers u„ ::.� � .; ��� � �� � � ����� y�, ��' ��..k;;y, ��3,� ��, i �.�y � i.`� '����. . . . � � ;.., . ' � ... �^: ;�., "�� .:. :;' � � �.<.. `c.a�.,�;,��;� y -- d,, ,..:.-.- . ,.,:•�...., � '�� ,Er.. :.?;�....:.:.:..... $ 257,455,433 48.5% Marriott Desert Springs Resort 895 room Hotel �'.,, ;� �,; $ 37,127,327 7.0%Vacant Commercial/Residential Land � ,� $ 32,255,461 6.1% Time Share CondosNillas(Shadow Ridge& „ � \� , Desert Springs Villas) �� $ 25,331,593 4.8% Mixed Use shopping Center(Ralphs/Walgreens) � � �� :� $ 25,210,660 4 go�o Courtyard 151 Room and Residence Inn 130 Room < ,.....,,. �� � ' ��..M Hotels �,,. ,�, .�.•". $ 20,681,427 3.9%Vacant Commercial Land \� � � ��� $ 20,100,000 3.8%Vacant Residential Land , �sa� � $ 13,741,930 2.6%Vacant Commercial Land ;�, � $ 11,901,070 2.2%Desert Springs Golf Course � ��; $ 11,366,370 2.1%Vacant Commercial Land � �:, �,, $ 9,798,968 1.8%Private Golf Course&Homes � ,�, � �"� �"� � �� $ 9,568,784 1.8%Golf Course Timeshares Condominiums 5 ;: a "¢�; �,, v � $ 9,095,144 1.7%Assissted Living Center ��,, ;x. � , . ��`. �; $ 7,941,034 1.5%Vacant Commercial Land �,� "' " � $ 7,918,317 1.5%Golf Course Timeshares Land ,. � S � ...g .Ia .�r;>>�,,,. �ir�^�:,z ,� � r. ,: $ 7,2g2,7g9 1.4%Vacant Commercial Land �W' � ��,'� $ 6,958,393 1.3%Desert Springs Golf Course 3' e £ ' ♦ $ 6,051,646 1.1%Vacant Commercial Land � " � ��`� � $ 5,430,357 1.0%Office Buildings �;.;� z � ����:, . �' ' ; �`,. � $ 5,314,857 1.0%Golf Course Timeshares Land .� �c" - �a a�.` u � r�" '; � r �� ��s �:��:� � � ��: � ����. ���r� �'� ,.�.`?��3 �.:` E 530,531,570 100%��� � ��-�� �w� `�' �' ���» �, '��.�. -•r.; .. .. . s°.:..`i.�>,. • �. .� . ..»,:�:�.,> ., �' . -��- .,.,:;,, .� .-�.� . � �'�a����„ .�_ �:'�..., . �...: . ,..<.... (/J Ctemtelative repre.rents only the lop twenty properties. tioterce:Mtmisen�ices Ll,C and Riverside Coimty Assessor 2007.2008 Combined Tax Rolls 195 City of Palm Desert RDA Project Area#3 2008 Top Twenty Property Taxpayers � ,.:.. �.:;.. �:.; ., ..:.;.,x; ._. ,� � . 5� 4 ,; ;r� '�%,: ,. � ��a � .. �,� , :; ��`. � a.',s•�:; '3�0i � ;'tti.�� a'� �sw�` � ..0 a,'.��. �� � �:.' a a �...�'��. � s� � �: �. r- a :. .:... . �� :. ::;A. , ..,..�e=,,...�.. ..,i,. � c � �� . ulti Family Dwelling (Canterra Apts&Vacant w, z � :�,, $ 32,157,097 17.3% land) �. �;' Senior Citizens Assisted Living Center(The `'' $ 27,565,888 14.8% Fountains) ;`:� "'"�.. ��...,. �,� Y $ 18,123,504 9.7% Cable Operator(Commercial Office Buildings) �;��, , �.r..� � . �_ � $ 10,666,952 5.7% Industrial/Commercial Business Park ;�.�, ,:� � :��; � �t ��,�zy. $ 10,057,144 5.4% Refuse Collection Base/Industrial Offices :. Y�, �i��' �� � $ 9,200,200 4.9% Industrial/Commercial Business Park �:a =:a. �"� � � �` \ w�'�'�°''' $ 8,359,666 4.5%a Industrial/Commercial Business Park � �� ��. , � ,,r-�:; . �..,A�.. � $ 7,591,626 4.1% Industrial/Commercial Business Park �:• $ 7,424,247 4.0% Business/Commercial Offices � . .:� � �; � ��� $ 6,443,505 3.5% Industrial Offices&Parking Lot �:. �, �. ;�-.% �� � �, �r����; $ 6,190,380 3.3% Multi Family Dwellings (Rancho Vista Apts) � �:, � �,. ��?. s�� � $ 6,152,924 3.3% Industrial/Commercial Business Park ,, W-;� �.. . ...: .. .....:....... ..�: ,. , , �;�� �,�� ���� $ 6,068,842 3.3% Business/Commercial Offices 3� �;;� � � ` ����ti,� , Y $ 5,362,437 2.9% Business/Commercial Offices ��: � ' Business/Commercial Offices(Comer of � �� $ 5,005,815 2.7% ;,; , , � Cook/Hovley St) �•: � �s . �� � � �: $ 4,573,434 2.5% Mix Use Industrial/Commercial Buildings/Stores ; � �::�;: � � : �S�rK«;��;;,. � $ 4,161,600 2.2% Industrial/Commercial Business Park x ``.��� �� °' � �� �� � $ 3,788,533 2.0% Storage Facility(Stor-n-Lock) ��� � £, �� �"` � ' �������"'� �� �' $ 3,661,166 2.0% Business/CommercialOffices ..•,.t;• �� . ..... . '�.� .,....�. � � '"r�� r „ $ 3,627,135 1.9% Vacant Commercial Land w�. >. , . � �. �� ��a ���r�. � 5�� : � ��� � a � � � x � � � "' � � a T}9 �� b $ 186�182�095 100% t"�� � F rti�""L� �� " ��r u \f� �\ �/ � -:;. . �,:, »y � ,.a;.�� � ,� �� a3 y��'�: : , .��, , ' ...., w, x. �.., . , :�.. ...a,� (1)Cumulative represents only the top hventy properties. Source: Muniservices LLC and Rrverside County Assessor 2007 2008 Comhined Tax Ralls 196 City of Palm Desert RDA Project Area#4 2008 Top Twenty Property Taxpayers � , 3:��a, �;r.:,. ��;::v �\� - �;;?� � .,�,": La.:. � " u t < � ; .:: l" , � '£. �'",,, ��_ ` �. . � ... .,.. _ - '.. � �,.� u.��� �;� �� Cc � �.:'; ��� � � \ � ��� ,; ���� � ��: �,,,j„. $ 32,829,509 19.3% Indian Ridge Golf Course&Homes(Private) �i:'..t i 5:., d:.:� �z�� $ 28,064,225 16.5% Multi-Family Dwellings(Desert Oasis Apts) ���' $ 19,352,306 11.4% Business/Commercial Offices ��; ��: � ' �;, $ 12,734,494 7.5% Storage Facility(Sure Save Storage) �,, ,r �„�; k^* � � ��:i ` " �,; $ 12,042,013 7.1% Multi-Family Owellings(Palm Desert Apts) ��.. � ��"" � �`��: $ 9,324,196 5.5% Palm Desert C.C.Golf Course&Clubhouse �. ,'� � ��� � $ 7,761,402 4.6% Multi-Family Dwellings(Villas on th Green, ���� � � �- 55+Apts) :�• �,., $ 5,666,561 3.3% Muiti-Family Dwellings(Royal Palms Apts) :k� �. $ 5,413,863 3.2%Woodhaven Golf Course ? `� � � $ 5,188,900 3.1% Palm Desert Resort Golf Course&Clubhouse n��� '� .°.�.; � � ��������' $ 5,132,005 3.0% Multiple Singe Family Residences(PDCC) r.� �,.. ya :'�. ,� �� � ��� $ 3,687,467 2.2% Single Family Residences � ��W; ,���.. � " Business/Commercial Offices(Comer of Fred � `� ; $ 3,563,555 2�1%Warin &Washin ton St " �.��,R, � �F:. � � $ 3,461,051 2.0% Single Family Residence(Indian Ridge C.C.) ,s?,y -:� ,��;,. , a:y. ��, � s ;,, �`: ��.- yµ �� � $ 3,196,816 1.9% 2 Single Family Residences(Indian Ridge C.C.) �x- � �� ��� c � ' $ 2,775,559 1.6% Multi-Family Dwelling ,. �=.•�-...� .. .,�"�a':�� '���.., � $ 2,595,119 1.5%2 Single Family Residences(Indian Ridge C.C.) .-r`t.•� ..s... y� ,.� ,„f.' J..: �. �� Y.�� ��, a; $ 2,402,351 1.4% Professional Medical �: �.. �"; ��,:• ,` ',,r ���y �. � ;. $ 2,390,344 1.4% Commercial Bidg&Parking LotQndian Ridge C.C.) �> � . . � �d,a� $ 2,298,977 1.4% 3 Single Family Residence(Indian Ridge C.C.) , � r�., .: � ,. _ ,<. ,, ,, , .,. �i r � �"�" � �rc � $ 169,880,773 100% �� � \�,�� �� � �'�� *��� r� 7 .. . ,�� .:•�" "i,x�,� � ,,,r ,.��a st�6 �� (IJ Cumu/a[ive represena only the rop nvenry propertie.r. Source: Muniservices LLC and Riverside Counry Assessor 2007 2008 Combrned Tax Ro[Is 197 City of Palm Desert Project Area Statistics June 30, 2008 ,�s� .� ;.` ��� '' �:. ' � ::� � �� r� �,,�� ���� s 3 �� :� .., . � ,,^ �� �� ,� � j' a , t .: .�.,x'. � �` .��... . �:�..,, �.\i\ .. ..�-.: � .:.� S�"r,.. ��y�� x C'"'� E� � .. ..:�.- ._ '� �:. ' . , ...� ... .. .�a�.... � .;. . .':...: 'f ..:x:.,. >. . .:.,x ���' '�'��� 07/16/75 11/25/81 07/IS/87 07/17/91 07/19/93 �' �-� ��r�'\__ 12/09/04 12/09/04 12/09/04 12/09/04 12/09/04 o ��"\' K, E� � ���� v� = 7/16/2026 11/25/2032 7/15/2038 7/17/2042 7/19/2044 �'� � ;, �� . �, ' a �` �y�� ��-� 7/16/2016 I1/2512022 7/IS/2028 7/17/2032 7/19/2034 ,.� ':'"��eh �:,�, �� Repealed Repealed Repealed Repealed Repealed ,��:��•: fY••. � '�� ;�a ' none $ 200,000,000 $ 150,000,000 $ 100,000,000 $ 135,000,000 ti�.� a`'' �; �;, $ 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 �; , > > , , > �: :,. y\� 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 (Adjusted Limit at,$1,489,892,031 through 2007). Source: Palm Desert Redevelopment Agency 198 City of Palm DeseA Redevelopment Agency Tax Allocation Bond Issue Infortnation June 30,2008 ti �� �� "� �..' a �,�\ x �� ,� �p � � �� '�� �. 28 27 21 24 �11 . ....13 03/13/02 08/05/03 O6/24/04 07/O6/O6 01/09/07 08I01/95 04/01/30 04/Ot/30 04/01/25 04/Ot/30 04/01/18 09/01/OS 5.100% 5.000% 5.000% 5.820% 5.000% 5.550% $ 22,070,000 $ 19,000,000 $ 24,945,000 $ 62,320,000 $ 32,600,000 $ 6,305,000 ` $ 22,070,000 $ 19,000,000 $ 21,805,000 $ 58,140,000 $ 30,470,000 $ 635,000 :,z'��:� �'`�:�,� 0-2.00% 0.00% 0.00% 0.00% 0.00% 0-2.00% MBIA MBIA AMBAC MBIA MBIA MBIA 2,804,344 950,000 2,430,750 13,117,662 13,116,979 123,500 .,,.:.�.� :;,,... � F .. ,:::� (�) (�) (�) (�) (i� 123,500 ,, p S - S - 8 - $ - $ - $ ,,.;:*',�_, - 1,030,000 2,075,000 2,410,000 635,000 � "" ��w�,�,'����' 1,114,665 950,000 1,025,813 3,092,327 1,416,825 17,621 ..�....... ... y€.... �.:�'.,,'. 5.2939% 4.8571% 47961% 4.7182% 3.8374% 5.2231% 04/13/12 08/05/OS O6/24/09 07/06/11 01/09/12 09/01/08 .:.,.W ;,.:.,x,:. . . .. �. ... „. „.- , ... . ., .,,.. s; �;:.. . - a N \ �'•�' .�\�' �, ' f�.,.. ..3�.: ,�.;. , .,. .._-._. � G ,� - : .. ..: �� . .. . ..' .,.,# i: a ' �" ,�. �i.� . c, .� a.. , � t.:�' 1�� ..:..'.. S �, „�'���� � ?�;��.: ' 20 30�� 30 30 35 �' S 07/17/02 03/26/03 07/25/O6 OS/05/03 07/25/O6 � `' �;'-0. OS/01/22 OS/01/33 08/01/36 04/01/33 04/01/41 � .,,�;�i� 5.000% 5.00% 6.10% 5.13% 6.10% �, c.;y� $ 17,310,000 $ 15,745,000 $ 67,618,213 $ 4,745,000 $ 15,059,526 r��"�<' $ 14,030,000 $ 15,745,000 $ 68,638,975 $ 4,220,000 $ 15,386,115 �;�. � 0-2.00% 1-2.00% 0.00% 2.00% 0.00% �;�:�� �„�,:i� MBIA MBIA AMBAC MBIA MBIA ��+�.� 1,324,750 769,006 5,309,825 297,953 1,034,250 � !�) (�) (�) (�) (�) v3ai..a•E.:..$ - $ - $ - $ - ��;'�:;_��; 675,000 - 1,221,594 100,000 25,000 f ��� i 631,858 769,006 2,463,783 195,898 567,263 �, 4.7043% 4.9502% 52580% 4.9358% 5.3626% v� �:';:•.*:: - ' - i N� 07/17/12 03/26/OS 07/25/11 08/05/OS 07/25/11 � �-� � ��� T � � �,� �': �r ��� �� � �� »:_ ; �, .3� � ��`+ -- F .. ..c `� � - �:. `�� ��'. ���,.. w:�.,I u '.:.... � �-:.. �su:; .,:,... W �. . ',.F. , i' . � .�,..a�....�� . ..,; �:_" . „ .n...�'�:,.,, .�.' . A ,� ��:`:E 30 30 28 30 30 20 .." �'. +,�,�;�,:?z:.-. 03/01/98 N/28/01 07/25/O6 01/Ot/98 09/05/02 02/07/07 . �-.'.. � ` ' ^� .. ��"'= 10/01/28 10/01/31 10/01/34 10/01/27 10/01/31 10/Ot/27 " "" �€' S.00% 4.80% 5.56% 5.10% 4.90% 5.00% ;;;. $ 11 020,000 $ 15 695 000 $ 19 273,089 $ 48,760 000 $ 12,100 000 $ 86,155 000 �':'':'.;- $ 8,355 000 $ 14 510 000 $ 19 774 610 $ 5 070,000 $ 10,875 000 $ 83,970,000 �✓"� 0-2.00% 0-2.00% 0.00% 0-2.00% 1-2.00% 0.00% MBIA MBIA MBIA MBIA MBIA MBIA 768 020 482 890 3 740,843 572,500 767 625 7 887,224 .;�:,,�.�i:- 1 1 1 1 1 1 $ 105 000 $ $ S - S - $ - i„�,„,:c4 310 000 200,000 685,000 265 000 2,880,000 � '" 2;;•�i��'�: 429 590 662 313 694 945 233,806 500 572 3 861,963 �g�,,,... •����. 52271°/ 4.9464% 5.1111% 5.1343% 4.8290% 4.1830% z '� ��', , ��L,':• � :��,,.`?, 10/01/12 11/28/11 07/25/11 10/01/12 09/05/12 02/07/12 �'111/�� (1)A surety bond was issued by MBIA Insurance,future reserve balance's will be zero. Source:City of Palm Desert and Redevelopment Agency 199 City of Palm Desert FY 200712008 Breakdown of Basic 1% Property Tax Levy Rates Redevelopment Project Areas ;� � � � � ��' �� � ��� �*� ' � � �<:` � a � �. ��.,,. � �� s � � � � �=,�. � '�'�� � � �a*,s ,��,, . ��,;. 28.40651296% 28.33884282% 26.79017236% 25.4134567% 21.90819693% 2.75042000% 2.88437501% 2.93918534°/a 2.8166515% 2.82811205% � '�:� �;��?:; 5.92083447% 6.20920014% 6.32718444% 6.0634120% 6.08807843% T v 0.00000000% 0.00000597% 0.00000000% 0.00000000% 0.00000000% �...^: .�' r.=.,. .......t���- k" �. `= r�a: :�,.`��. . , \�,s � p p o �?'�` 0.00000000% 0.00007714/0 0.00000000/0 0.00000000/0 0.00000000/o .,�� �°�'��s � �`��: r ��.,.� �' �,^� 0.00000000% 2.12289319% 4.41618414% 4.4435240% 870369381% ��..,,��� a, 0.00000000% 0.01431487% 0.00000000% 0.00000000% 0.00000000% ,�. �.�: ; �, ;`;,� ,� ;-. � ��: �� ,, 0.00000000% 0.03081565% 0.00000000% 0.00000000% 0.00000000% f�'' 36.51609457% 36.92797169% 24.06019277% 37.3954253% 37.54753251% �;., ,..�,�E �.:� ��� �;: o '�r;, 0.00000000% 0.00000000% 10.89242058% 0.00000000% 0.00000000% `' " �"'`' 7.58790746% 8.02811785% 8.10866944% 7.7706301% 7.80224016% �,;, v H, � `�'' T ' ' '""' � \ 4.12820919% 4.36770739% 4.41153204% 4.2276196% 4.24482042% � � ��` 0.42967360% 0.42965824% 0.40524693% 0.3844155% 0.44183209% ,�z r =� � j` �i'�= 0.00000000% 0.00000000% 0.00000000% 0.0000000% 0.00000000% . ��� _�„ .�,a�, rti� - �a;: " �j 0.34268622% 0.30395515% 0.22579576% 0.3509372% 0.35236897% ,�;..: w.: , . �� �a 4:, � � ��' 0.00000000% 0.02696317% 0.06459145% 0.0000000% 0.00000000% ' ��,> �, ,.� �E.�°- ��� `� '�� ' �3 n �� ; «��� $� 2.01303889% 1.30913346% 1 J8897514% 1.0680300% 0.00000000% ,,.�„*��.� �,, �. , : a� N z�� 1.38082974% 1.46093990% 1.47559998% 1.4140803% 1.41983589% ,K � •.� p.,, � •;��:_ ,s�;� s 'yi,,�:.:. .,, o 0 0 " �� 2.08846295/0 1.85241315/0 1.37607609/0 2.1387538% 2.14745746% � .�, -;,, �, \`�` ` �3; �;, 2J5885213% 2.91794190% 2.94819696% 2.8252874% 2.88607351% /� �h 1 �.'�,t/ _ �:' d-^.� o L.`,�' 0.00000000% 0.02046901% 0.03779673% 0.0317706% 0.03636678% �e R ��- ;, � �; 2.18399077% 1.01028948% 0.0000000% 0.0794184% 0.00225180% ��,m�„�f� 3.49248704% 1.74391483% 3.73217986% 3.5765875% 3.59113917% .W= ,, �: � ' �"���'"' �a 0.00000000% 0.00000000% 0.00000000% 0.00000000% 0.00000000% _: �?a. . :���.. „ : ;� �\ � . � �r,; 100.00000000% 100.00000000% 100.00000000% 100.00000000% 100.00000000% Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&County of Riverside 200 City of Palm Desert Historical Tax Increment Summary Redevelopment Project Area#1 -Original Last Ten Fiscal Years FY 20U8 2�07 2U06 2UQ5 2Ml4 Secured/txnsecured $ 9,112,173 $ 8,618,586 $ 7,996,533 $ 7,406,602 $ 6,934,754 Supplernental 330,285 255,077 817,902 200,879 151,075 'SBE(Utility} , 362,009 358,243 280,131 300,931 297,098 Total Gross Increment 9,804,467 9,231,907 9,094,566 7,908,412 7,382,927 LvwtMvd Housii�g Set ASida (1,960,893) (1,829,832) (1,803,llb) (1,561,352) (1,455,810) Tax In�remen�Less Low/Mod 7,843,574 7,402,075 7,291,450 6,347,059 5,927,117 `TotalPass-Tltro�ghs (841,237) (724,021) (830,846) (279,854) (316,366) SB 255'i Charges (86,539) (82,749) (78,987) (101,653) (103,877) Net Tax Increment Agency{2j ` $ 6,915,798 S 6,595,305 $ 6,381,617 S 5,965,552 $ 5,506,874 �Y '2(r03 2Q02 2001 ' 200U 1999 Secured/Unsecured $ 6,503,515 $ 6,360,760 $ 6,199,196 $ 5,549,207 $ 5,484,253 Supplemental 49,849 104,267 140,667 58,949 0 SBE(Utility} �� 288,489 285,323 292,520 332,579 322,956 Tota�Gross Inerement� 6,841,853 6,750,350 6,632,383 5,940,736 5,807,209 Law/1V�adHausingS�tAsida (1,348,011) (1,328,643) (1,305,693) (1,168,457) (1,161,442) Tax Increment Less Low/Mod 5,493,842 5,421,707 5,326,690 4,772,279 4,645,767 Tatal�Pass-Thrbughs(1)�< (696,443) (922,984) 0 0 0 SB 25S`l Charges (101,797) (107,137) (103,919) (98,451) (104,485) Net Tax Increment Agency(Z) $ 4,695,602 $ 4,391,586 $ 5,222,771 $ 4,673,828 � 4,541,282 Percentage represents change from prior year. $9,000,000 0 $7,500,000 5.94/0 3.35% 6,97% 8.33% 17.28% $6,000,000 $4,500,000 $3,000,000 $1,500,000 $0 2008 2007 2006 2005 2004 (1)RDA Project Area 1 does not have Total Pass-Througbs with the exception of FY 1991/92. (2)Net Ta�Increment Agency does not include Debt Service payments. Sources:City of Palm Desert,Taac Increment Calculations&County of Riverside 201 City of Palm Desert Historical Tax Increment Summary Redevelopment Project Area# 1 -Amended Last Ten Fiscal Years '; FY ' 2QU8 200? 2(106 20Q5 2004 Secured/iJnsecuced $ 40,030,758 $ 36,24Q089 $ 31,237,832 $ 27,778,894 $ 25,247,194 Supplemental 2,644,698 3,587,825 5,644,432 1,502,190 886,454 S$�(jjti]jty) 280,014 255,476 167,752 142,166 144,829 T�fal Gross�ncrem�ent 42,955,470 40,083,390 37,050,016 29,423,250 26,278,477 Low/Mod Housing Set Aside (8,591,094) (7,949,224) (7,350,269) (5,811,002) (5,182,761) '�ax Increment Less Lowfl�od 34,364,376 32,134,166 29,699,746 23,612,248 21,095,716 Tqtal Pass-Througlts (20,349,225) (18,869,733) (17,382,480) (13,463,639) (11,740,730) S$2557 CIIEu'ges � (368,824) (337,271) (298,669) (368,240) (364,672) Net Tax Incremer�t',Ageney',(lj S 13,646,327 $ 12,927,162 $ 12,O18,598 S 9,780,369 S 8,990,314 FY ' 20Q3 ZO(12 ' 20ti1 200(1 1499 Secured/[Tnsecured ' $ 22,967,677 $ 19,826,224 $ 15,969,365 $ 12,683,176 $ 11,791,667 �upplemental 910,786 2,011,351 1,352,695 879,432 91,071 SBE(Util�ty) 136,296 134,804 138,207 152,108 142,885 Total Grass Increr�ent �� 24,014,759 21,972,379 17,460,268 13,714,716 12,025,622 Lb�vlModHausing�SetAsid� (4,733,721) (4,330,166) (3,440,490) (2,699,974) (2,405,124) Tax Increment Less LowlMad 19,281,038 17,642,213 14,019,778 11,014,742 9,620,498 TOt�I P�ss-"I'hTougllS (10,523,374) (9,583,446) (7,339,195) (4,598,001) (3,966,585) SB�2557�harges �� � � (346,155) (321,551) (257,820) (214,847) (214,426) Net Tax Incremeqt Agene�(1) $ 8,41 t,509 $ 7,737,217 $ 6,422,763 $ 6,201,894 $ 5,439,487 Percentage represents change from prior year. $18,000,000 $15,000,000 6.53% 7.56% 22.88% $12,000,000 g�q% 16.20% $9,000,000 $6,000,000 $3,000,000 $0 2008 2007 2006 2005 2004 (1)Net Tax Increment Agency does not include Debt Service payments. Sourees:City of Palm Desert,T�Increment Calculations Worksheets&County of Riverside 202 City of Palm Desert Historical Tax Increment Summary Redevelopment Project Area#2 Last Ten Fiscal Years FY 20t}$ 2007 2006 2Q05 2004 Seeured(ETnsee[tred $ 17,779,922 $ 15,816,298 $ 13,756,558 $ 12,629,958 $ 11,717,869 Supplemental 1,121,602 1,332,272 1,553,145 698,023 812,847 S$E(Utility� 81,421 70,380 39,774 23,747 25,689 Totai Gross�ncrement ° 18,982,945 17,218,950 15,349,478 13,351,728 12,556,405 I,ow/ModHousit�gSeEASidc (3,796,589) (3,414,421) (3,043,663) (2,636,969) (2,477,550) T�%IQC�`E�lEflt L8S8 LOW�MQ(I . 15,186,356 13,804,529 12,305,815 10,714,759 10,078,855 Totdl P�ss-'CFti'O�t�hs (7,598,015) (6,846,307) (6,072,950) (5,459,600) (4,683,769) SB 2557 Ct�arges (163,443) (146,845) (131,163) (166,884) (168,655) Net Tax Increment Agency(i� ' $ 7,424,898 $ 6,811,376 � 6,101,702 S 5,088,275 $ 5,226,431 FY' 2003 2402 20U1 2QOa 1999 Secured/CTnseGured ` $ 10,422,746 $ 8,575,348 $ 7,816,649 $ 7,120,210 $ 6,330,882 Suppletnerital ` 548,517 257,896 391,197 244,912 312,878 SBE(TJ�ility} � � 22,768 22,519 23,088 25,187 21,385 Tatal Gross Increment 10,994,031 8,855,763 8,230,934 7,390,309 6,665,t45 Low/IVIod�-Tausi�gSetAside (2,167,507) (1,743,454) (1,621,091) (1,454,141) (1,333,029) Tax IncTe�ent�7,.ess L��v/Mod � 8,826,524 7,112,309 6,609,843 5,936,168 5,332,t16 TotalPasg-Thro�tghs (4,320,158) (3,296,575) (2,790,025) (2,423,175) (2,152,320) S$235?�harge� (156,494) (138,491) (125,482) (119,606) (114,107) Net Tax It�crement Agency(i) $ 4,349,872 S 3,677,242 $ 3,694,336 S 3,393,387 $ 3,065,689 Percentage represents change from prior year. $10,000,000 - $g,��0,��0 10.56% 11.63% 19.92% $6,000,000 - -2.64% 20.15% $4,000,000 - $2,000,000 $0 _ 2008 2007 2006 2005 2004 (1)Net TaY Increment Agency does not include Debt Service payments. Sources:City of Palm Desert,Tax Increment Calculations Worksheets 203 City of Palm Desert Historical Tax Increment Summary Redevelopment Project Area#3 Last Ten Fiscal Years FY 2008 2007 < ZOQ6 20QS ZOQ4 Secured/[Jnsecured $ 3,924,542 $ 3,402,301 $ 2,858,918 $ 2,137,750 $ 2,040;874 Supplementai ; 454,199 185,346 607,706 261,674 150,716 SBE(Uti}ity) ', 9,990 6,910 3,147 763 1,001 Tota�Gross Tncrement 4,388,731 3,594,557 3,469,772 2,400,187 2,192,591 LowfMad Hou'sing Set;l�side �'�� (877,746) (712,606) (688,513) (474,397) (432,653) 'f a�Incremeq#Less IkowlMnd 3,510,985 2,881,951 2,781,259 1,925,790 t,759,938 Total�PasS-Th�oughs �� (2,173,895) (1,806,340) (1,750,650) (1,197,599) (899,766) SB 2557 Cha�'ges(1} '- (36,007) (31,526) (27,207) (28,204) (29,324) Net Tax Incremept�Xgenep " � 1,301,083 S 1,044,084 S 1,003,402 $ 699,987 $ 830,848 FY 2(!03 Z�Z ' 2t�ll 2000 1999 SecuredlEJnsecuTed ' $ 1,359,556 $ 1,204,009 $ 1,028,201 $ 854,991 $ 677,494 Supplemental 79,744 130,497 47,444 15,963 37,064 SBE(TJtility) ; � 731 723 742 908 538 Totai Gross��ncrerae�t 1,440,031 1,335,229 1,076,387 871,862 715,096 Low/Moc�Bni�singS�t;�lside ��� (283,930) (263,165) (211,984) (171,507) (143,019) TaXlpererY►ent Less LowtMifd 1,156,1O1 1,072,064 864,403 700,355 572,077 Tota1�T'ass-T'hroltgh��� � (448,489) (183,986) (548,192) (519,921) (660,139) SB 2557 C`harges(ij � (20,379) (19,405) (16,469) (14,327) (12,181) Net Tax I�crement AgenCy{2) $ 687,233 $ 868,673 $ 299,742 $ 166,107 $ (100,243) Percentage represents change from prior year. $2,100,000 $1,800,000 $1,500,000 24.98% $1,200,000 4.05% 43.35% $900,000 -is.�s°io Zo.9o°ro $600,000 $300,000 � $0 2008 2007 2006 2005 2004 (1)Data for SB 2557 Charges is available from FY 1993/94. (2)Negative Ta�c Increment for FY 1997/98 and FY 1998/99 due to Regional Access Project pass through,prior year tax increment used to cover deficit. Sources:City of Palm Desert,Tax Increment Calculations Worksheets 204 City of Palm Desert Historical Tax Increment Summary Redevelopment Project Area#4 Last Ten Fiscal Years �� zoas Zoo� �oas �ou� Zu��; Secured/ITnsecur�d $ 13,518,052 $ 12,117,535 $ 10,483,484 $ 9,017,457 $ 8,044,54] Supplement3l 1,013,384 1,296,818 2,197,486 694,864 318,307 SBE(Utility) 43,558 34,914 15,009 2,036 3,641 Total Gross Incr�ement 14,574,994 13,449,266 12,695,978 9,714,357 8,366,489 Low/NfodHoasingSetAside (2,914,999) (2,667,385) (2,519,237) (1,919,081) (1,650,181) Tax Inerement Less Low/Nlod 11,659,995 10,781,881 10,176,742 7,795,276 6,716,308 'F4t�1 Pas&-ThFoughs�: (8,032,775) (7,426,842) (6,778,536) (5,145,220) (3,569,212) SB��2557Chd1'ges(1)� (1�24,107) (112,342) (99,794) (118,954) (115,583) Net Ta�c Increment Agettc� ' $ 3,503,113 � 3,242,697 $ 3,298,411 $ 2,531,102 S 3,031,513 FY 2043 20tF2 2�01 2Ut1U 1999 SeCured/LTnsecured $ 7,275,223 $ 6,205,401 $ 4,612,165 $ 3,293,418 $ 1,981,390 Supptementat 411,994 854,021 829,389 1,027,462 455,457 SF��(ITtility) 1,952 1,930 1,979 2,117 1,044 Totai Gro�s Increment 7,689,169 7,061,353 5,443,533 4,322,997 2,437,892 I.,owlMad�atzsing Set Aside� (1,516,029) (1,392,274) (1,073,936) (853,567) (487,578) Tax Incremen#Lcss Lvw/Mod 6,173,140 5,669,078 4,369,597 3,469,431 1,950,314 Tpt,�l P�sS-`I"kiroa$hS�'�� (3,863,556) (3,747,180) (3,640,563) (2,856,325) (1,312,022) SL�2557 Chat'ges(l� � (109,024) (99,981) (73,853) (55,164) (35,617) Net Tax Incremertt Agency ' � 2,200,560 $ 1,821,917 $ 655,182 S 557,941 $ 602,675 Percentage represents change from prior year. $5,000,000 8.49% $4,000,000 -1.69% 30.32% 37.76% -16.51% $3,000,000 $2,000,000 $1,000,000 $0 ��1ry 2008 2007 2006 2005 2004 (1)Data for SB 2557 Charges is available from FY 1995/96. Source:Palm Desert Redevelopment Agency,Ta�c Increment Calculations&County of Riverside 205 City of Palm Desert Historical Net Assessed Taxable Values Redevelopment Project Area#1-Original Last Ten Fiscal Years r ... � �. . ��-�� � x� � ��.. � � - �?. �.:� � ,� . a �":,Y:;.� . 3 ' . ��,: �'� � " .�: 1 .��.. �.�:,� ..,m� ^�, i.:,.�c. �:� -.�,_s.r� a'i: ��:8• '�::� I '�:� .• •=P"• ,��;Q'" $ 233,208,647 $ 216,759,847 $ 209,051,600 $ 193,066,855 $ 180,571,588 ���.' ' �„�">„i 584,395,005 552,604,613 Si5,092,610 468,555,559 43Q563,506 �', 4,856,393 6,825,265 7,42Q696 4,909,559 2,970,008 � �"' 0 0 0 0 0 _'� � ,�� .�r -��:�, (1,57Q949) (760,295) (61Q338) (730,777) (100) ���4 (63,000) (70,000) (70,000) (7Q000) (77,000) f:;± ,,��^� �.;, p 0 0 0 0 �'w � � .,���,., � : ' y ,,, ���, 82Q826,096 775,359,430 73Q884,568 665,731,196 614,028,002 ��. ,.€.. � ,,� ��ti�� ?�� ���`� v��� �� � �'�� � ..�. �� 1,245 1,220 396 156,701 174,128 � J" 60,185,535 56,536,963 48,736,306 51,133,704 52,581,364 c. ' �: "''` ` ,,;N ��w,��„� `' a;5 ,r� �;' S7,684,012 57,404,440 47,48Q402 51,093,465 54,158,601 4„�,..... , �F;f 0 0 0 0 0 ��� !;�,�� �` �°�, ��k�;�i�;� (56,785) (32,652) (32,573) (39,043) (57,842) ,. _ „.. 117,814,007 113,909,971 96,184,531 102,344,827 106,856,251 w,� ��::1.a ^a'.;.-- a�'l.:'��., �, �� * �'�� `� x ��»s � $ 938,640,103 S 889,269,401 $ 827,069,099 $ 768,076,023 $ 72Q884,253 r � � � , � --s� ,��s ��^ i>'� �' :: ��.: �� � .: -- y., �\ .:�� N ,�,j.,,..r7' � 3 . '.� .. �3 .� � `1�Y�.`s ' Sl T., \ --Y/ ��,. .,a' �'. ;, ,.,;::;� ... '.�..�.::: ' .. , ..�.........:, a.�•.:n..,-, r .,� � .��... a-' �� ': �.� , , � .'• 9� Jp. 5 , �x.. .U" �i: •'' . ....��., r� , .. � .. . •.. ..,i.,: . ,,, �... . .. . « . � �� �\ � \:. ,y �" ;�� �� � . ��.���z,�f £E� ,•*� ,� $ 175,028,644 $ 171,440,095 $ 167,254,618 $ 157,749,660 $ 158,233,158 ',,� , �':'� .,�,' ���; � ,..,,,�� , � ..: 403,984,613 389,716,686 381,168,647 342,048,525 335,487,546 s ���.� "=�e� � �-�;5��'' 3,290,180 3,824,393 4,621,105 3,958,876 4,284,839 �<,.. .,�� " `3 � ,�'� N o�-=�' 0 2,536 61,938 24,969 55,034 fi< 0 0 0 0 0 ��; � �����,,,, - ��s,600) ��o,000� �(a9,000> (sb,000� (ss,000� ': a. __ � �:: o 0 0 0 0 � .' < :. �t.���_.... ��._.r.,.,..... � � ; , ��; < �� F� _ ; � �'�� ' �'�� 582,227,837 564,913,710 553,057,308 503,726,030 498,025,577 ;�: �'�� . ,, .• �.. � ..; ,;. � :;F�'�� �� . � �, �,'��^,x;t,�a,,�`;, , r'����� 201,461 229,626 191,925 211,902 225,314 ' � -;�, ��a �" , `� � 48,916,729 52,533,594 47,281,799 44,481,799 43,198.389 r�;,�, ,����,� ��: � �; : 46,472,846 44,331,125 44,847,382 33,234,094 33,519,839 �� � .w � ��a ;, . � - 0 1,592,700 2,089,768 735,012 748,851 a ; ' -� �' `�;v *•' �� (57,121) (58,570) (61,394) (38,283) (69,264) __3 ��;�rv.. ,,��,3 r '�; 95,533,915 98,628,475 94,349,480 78,624,524 77,623,129 ':-y- x% � �;. � ' � �� ;� ���a $ 677,761,752 $ 663,542,185 $ 647,406,788 $ 582,350,554 $ 575,648,706 �.. ,r. (1)Secured valuesinclude State assessed data. Source:County of Riverside,Counry Auditor Controller,Assessed Valuations 206 City of Palm Desert Change in Taxable Values Redevelopment Project Area# 1 - Original 2008 versus 2007 ,; x,,.: '�„ �.\ ,+ x 3� R §�y \ al, e'.`i� r ,,;u:. � `�� $ 233,208,647 $ 216,759,847 ,,. , � � s„ , �` ��� $ 584,395,005 $ 552,604,613 ,�; ! $ 4,856,393 $ 6,825,265 � � �. .,�, $ 0 $ 0 �;= ' yr,...� � >�,��.. :'" ' . `''�"� � 1,570,949 $ 760 295 ,� ��. , a< � ;,F � _' "��, .z .�F,; $ � ) � , ) �� ' �se'��`� �.�, ,,`°�'�� $ (63,000) $ (70,000) R5: a •3.29�i: � x>�� _� H a�� $ 820,826,096 $ 775,359,430 .a <<,, -::-� r ;�s,�.3,'� � `� Sa s�;-. '�:�� � � ft� � 3.,. � a � � ��a, y $ 1,245 $ 1,220 � f y ^ � �",;, M� \ $ 60,185,535 $ 56,536,963 � ` �a , � '" ` � . , $ 57,684,012 $ 57,404,440 .� ,., � � ,TM � - ,�, ��.. . *: � �;•.. � �� �� "' �� ,� � � � 0 $ 0 � "', '�,,,:..�, �"' '� �:.�° � ��: $ 2 _ s� ` $ (56,785) $ (32,652) �,.. s x >���:, .� ' �� � � �� t `�,� $ 117,814,007 $ 113,909,971 a�. ` �� ���-�x ,�, '� �, ' ?�w?Q���a �� �� �. �.::�¢ ���.��`'�„�,y r � , � \ � �� �� � �'�� $ 938,640,103 $ 889,269,401 ,:;; .....,� �� _ . �,.;.,�,, . , _.., .:.. . (1) Secured values include State assessed data. Source: County of Riverside, County Auditor Controller,Assessed Valuations 207 City of Palm Desert Historical Net Assessed Taxable Values Redevelopment Project Area#1-Amended Last Ten Fiscal Years , �. ,,�; �'• „ �,¢.'.:�: a„ ., ��.. ,i e , ., ..,, .a� ..... � . :,. :: . .....� . , . ',ti �.•:. ' $ 1,548,363,317 $ 1,404,883,142 $ 1,221,817,819 S 1,099,974,404 $ 1,037,831,772 � 3,09$549,660 2,848,708,294 2,548,978,946 2,322,285,503 2,109,457,532 3"' 4,850,231 5,159,912 S,OSI,062 4,OSQ748 3,722,255 '� ' ��`.„� �r � c � �;9; 0 0 0 0 0 ..c>; ��"+�..' (84,042,297) (71,117,424) (75,212,62� (72,356,678) (SQO11,055) (3Q606,235) (30,941,142) (30,902,546) (31,114,156) (30,819,292) -�j�,�� 0 0 0 0 0 �X � ��r �� 4,537,114,676 4,156,692,782 3,669,762,655 3,322,869,821 3,07Q181,212 � ,,��� • S"�., iaf 'n,�., \?� �§��',F� �: "> 714 781 0 1,449 9,581 �;F , ��' ,;,,, 36,438,840 38,277,529 33,71Q842 33,165,394 32,087,933 x�` ,;,„�;", �;��a �, �,.'� 62,97I,014 57,326,123 51,779,049 53,234,502 56,477,588 � " " 0 0 0 0 0 s �� �' (7,990,591) (3,164,410) (6,306,859) (6,430,836) (8,79I,155) 91,419,977 92,440,023 79,183,032 79,970,509 79,783,947 ' \M\� ;�'� $ 4,628,534,653 $ 4,249,132,805 $ 3,748,945,687 $ 3,402,840,330 $ 3,149,965,159 �.a. ` ,£_ �"% r � .,., � . . „ • ��:: �.a�� � �� ,w,N� �„�� �� �� ,� ����. �7 " �� :.'' � ,..a _' ":� ., ::,,'' . .,a� .�� �, � :�::`,. <„�:,, - x .,r �; � �, � -' � " � uy, s t'. 964,043,115 $ 887,797,124 $ 746,195,135 $ 631,896,282 $ 607,328,615 �. �, a� :�, .. �{sr. .-. �� $ �.... �^ "`�,`" �, �'" ' 1,966,604,300 1,742,745,364 1,493,036,846 1,292,074,218 1,230,571,559 "''=,��. v ;'��, � '�:��` 4,822,804 4,009,942 3,266,563 1,984,406 1,632,328 �,,�" � �, , � �.•,�;�3 0 31,999 I59,l45 37,717 54,377 ��: (SQ251,474) (55,711,920) (47,407,077) (46,013,692) (44,78I,911) �� '' (28,898,212) (28,025,997) (27,838,129) (27,464,757) (28,135,860) r�s y..; a\` ��. ��� �` ���.,a 0 0 0 0 0 � �' 2,856,320,533 2,550,846,512 2,167,412,483 1,852,514,144 1,766,669,ll1 ��. s , ��} .. � �.� 1i ...vf� �' �s �,`�c:, �� .,�.;��t,Y 135,778 143,855 52,422 46,483 I69,654 X ..._ � �'�;' = 29,96Q052 26,976,720 27,217,181 20,563,813 15,262,873 �,� �1� " ;;_'�� � �r,<� ��; 46,15Q607 42,134,507 4Q144,238 29,967,S14 26,532,412 �, '+,a �• �?, �„�; 0 494,612 673,565 181,234 592,583 �� �: � ,;'„ (8,632,424) (9,613,037) (10,316,419) (6,335,363) (1,377,178) r sp..,i �,�: ,e:: �,.�:. � 67,614,013 60,136,657 57,770,987 44,423,681 41,180,344 a '` ��� '�°:• �3 �� -' $ 2,923,934,546 $ 2,610,983,169 $ 2,225,183,470 $ 1,896,937,825 $ 1,807,849,455 �lu. (1)Secured values include State assessed data. Source: County of Riverside,County Auditor Controller,Assessed Valuations 208 City of Paim Desert Change in Taxable Value Redevelopment Project Area# 1 - Amended 2008 versus 2007 ��� �� ��� � � ��' � W. � �E � N �,.�. "? ''\1' Y�F \5. .r^. :'s� .�.Y.� F �,,;, ��'�'� ... �d �'^ � l .'v��. . �. . � k:� .�: : �; '.::, ���� . ',;� ����s�,�� $ 1,548,363,317 $ 1,404,883,142 10.2% R« -. �t. - .l \ '�;n'C'2. �� ��;_„ :" e�s ' ��__���:. $ 3,098,549,660 $ 2,848,708,294 8.8% � ' � '�,Y,�,, $ 4,850,231 $ 5,159,912 -6.0% � � �\ � �� �\\, $ 0 $ 0 0.0% ;a � ; �,; .�.. � � - ;; � � . � �:? $ (84,042,297) $ (71,117,424) 18.2% ,. ����� "'� � ` �������': ,,� s� $ (30,606,235) $ (30,941,142) -1.1% � - $ 4,537,114,676 $ 4,156,692,782 9.2% < �I l � ` � t�-� �;�k.e't ' �: Y,,•\ $ 714 $ 781 -8.6% � ;. .. ��... �,. �,,n �,.���,;;,, $ 36,438,840 $ 38,277,529. -4.8% � ' � ;;����'�>. ;;� ��'�'` '''' $ 62,971,014 $ 57,326,123 9.8% � ?�'�.�� �„�„ � az;, $ 0 $ 0 0.0% ��. �... � :: ��� � , , a��.; $ (7,990,591) $ (3,164,410) 152.5% �,..,�_� t,.�. ��', � �� -�;?���� P � $ 91,419,977 $ 92,440,023 -1.1% „ �\.�:\\����� �� �:�i"i�"''5��0 �`"� : n ..a'�jF.�'::°u.. .�?. :<1 �t1......<.-- ,.,„ �..•! ,.a^. „=X.�. 'C\\.�r.:<....: � l. 3. �' . �� . � ��� �� �; � $ 4,628,534,653 $ 4,249,132,805 8.9% ,,,: . ..�..� : .. ._,... _. ;�_ ..: .���� ;.,.£�� �•....,;.� . ..:�:„ � : (1)Secured values include State assessed data. Source: County of Riverside,County Auditor Controlier,Assessed Valuations 209 City of Palm Desert Historical Net Assessed Taxable Values Redevelopment Project Area#2 Last Ten Fiscal Years �, �� � � �� �� � ,� . � $ 587,058,715 $ 521,340,003 $ 414,088,670 $ 377,500,739 $ 338,504,943 1,276,315,674 1,137,488,315 1,043,768,419 964,730,831 915,313,076 t,^ 59Q836 6,592,802 6,93Q907 8,309,969 7,136,535 `" 0 0 0 0 0 �� �' ' ��:` : (9,SSQ463) (7,655,384) (3,292,024) (3,133,357) (2,979,597) " " (3,735,200) (3,752,000) (3,752,000) (3,689,000) (3,316,600) �+ a�'t�sr'� 0 0 0 0 0 ��, 1,850,679,562 1,654,013,736 1,457,743,972 1,343,719,182 1,254,658,357 ;.� � �.; 3 � n�:; �r �,,��- 0 0 0 0 0 ��� 5,343,62t 6,215,099 4,187,472 3,853,947 4,482,615 `�'` w' ° �e' •�;. 20,391,298 19,806,418 12,129,847 13,891,105 I 1,486,746 0 0 0 0 0 y � 25,734,919 26,021,517 16,317,319 17,745,052 15,969,361 �� y'"'� �„"��� . $ 1,876,414,481 $ 1,680,035,253 $ 1,474,061,291 $ 1,361,464,234 $ 1,270,627,718 ' i' : D3,:�.:,. � � f L3 y, y,r � <.,C�. ``���R'�� vz � 8• r.. .�.%., r.Y F.: ry ' . .. ,� ��,'y. ,.� y'�., � �` �'r', ��� „ ... .-:. . \� .,...... , „�„ ._ , :: ��en.. . . � ,�� �.... ' . ..., ..< � ���� �„�� � `�� � � ,. $ 298,852,366 $ 268,70Q076 $ 254,353,602 $ 241,562,963 $ 221,877,005 -� ' �:�; 83Q436,695 675,455,198 615,751,576 557,262,592 502,284,327 '. '�, � � � : 7,539,988 6,840,530 6,545,424 10,G03,177 6,563,588 ,� " ` 0 0 0 75,371 '�v � �� g '� � '_';� (2,823,135) (2,767,781) ,a, ; � , (1,213,S12) (1,189,7t9) (1,168,077) F���=� � '�= ' � ,_-`� ��_;�� (2,853,200) (2,639,000) (2,623,600) (2,522,800) (2,403,800) ��• a�. � � 0 0 0 0 0 � t"�. >,, ' W \ 1,131,152,714 945,589,023 872,813,490 805,716,213 727,228,414 ;•� ��• �` z . a � �r,;' c..� 0 0 0 0 0 �' -' ' ,„,,,�;- ` ;;',� '�'7 2,799,545 2,91Q472 2,417,234 1,877,417 1,86Q565 �� '"" 7,626,600 8,438,055 5,921,587 3,984,295 4,363,617 \�M � .,,' �;�� �,`;, ,� 0 115,676 46,458 77,730 57,857 � . ,,��. �'... „ ' v ,� � . � . . � , 10,426,145 11,464,203 8,385,279 5,939,442 6,282,039 c : ,,� ��, $ 1,141,578,859 $ 957,053,226 $ 881,198,769 $ Sll,655,655 $ 733,510,453 (1)Secured valuesinclude State assessed data. Source:Palm Desert Redevelopment Agency,Tax Increment Calculations&Counry of Riverside 210 City of Palm Desert Change in Taxable Value Redevelopment Project Area# 2 2008 versus 2007 � ��� � m�.,, .. � � �. � � .,. � �, �� �� , ...���,�;. �.��� ���� �� �� �. � �� 4� � � .a,,. < ,�����..... ,+,'�.: �'e ' ;.w,�,,. , .,. ....,.'.', .::-.. - ' ,_<�., ,.;...�....;•. �,^�:'. � '�.r � :�Y 5 ��' a�. y�`aa,�;. ��,, � �";, � �� `� +�f;,'. �. $ 587,058,715 $ 521,340,003 3., � A � ��,.���n�..:� � , �`��;; $ 1,276,315,674 $ 1,137,488,315 �;: ��:: ,'� " s�y_ $ 590,836 $ 6,592,802 „ ::.; > �.,�,�:�;.� ,����� , a �,�'i�.3� � ,��� x.. � y.°...,y �,/ � � � � W�, ' r ,., �� �,.. � x°� _: ���� $ (9,550,463) $ (7,655,384) � :��. �� � � , .M _ _..��. :. � . .��.:;:,��.....`�� � :� �?� `�`'�... $ �3,735>200) $ (3,752,000) � ��� a� �« �. x $ 0 $ 0 � '. ..`�. ,3A 5�,N�i�\ >y.� � .; " � `' � �'; 1,850,679,562 1,654,013,736 ,• � ,� �3�s ,. r;� � z.::�, �E� \ 3 �e, �j � �Ij � � ��.. _. . tt._ ... ,. . .....,. a , ��a �. s x � $ 5,343,621 $ 6,215,099 � " �-:�r..�; � ,�'��^ w v , $ 20,391,298 $ 19,806,418 " �°� � �� `� $ 0 $ 0 �_ ��;: � + �� � � ? ,�= � � r 25,734,919 26,021,517 � $�„ �.; �� �;�: � .z�>, � � ,� �o � c �:� � � r �� y�� 3� 3 ,��� �� ' $ 1,8'76,414,481 $ 1,680,035,253 ��,:. �,� , >, ,,,�.,, �, T'. �x�,.,;�., � �.. (1)Secured values include State assessed data. Source: County of Riverside,County Auditor Controller,Assessed Valuations 211 City of Palm Desert Historical Net Assessed Taxable Values Redevelopment Project Area#3 Last Ten Fiscal Yeazs v r' ,,, ,.���'- � �� `y ,` ` � 'm: ,,. _.:;; _ � � ��•,�, ` ��. �� :, u � , ...� �.. :,,. ' � a�����`� �4 �, r� „ h h v $ 119,422,958 $ 114,253,170 $ 103,496,559 $ 91,523,675 $ 83,600,129 � ;;�n�� 375,24Q496 333,347,161 298,197,384 243,139,587 221,590,995 ���'��` ,��, e�„.ra�y: 3,629,77] 3,893,071 3,890,560 3,152,374 1,581,880 0 0 0 0 0 �;,�,,.���.. (19,251,214) (]9,311,510) (20,251,190) (19,43Q222) (3,149,364) ' ,� ,�� �z,zos,600> �2,2ob,aoo> �z,oa6,aoo� p,9�a,000� �t,9�z,aoo> r"Y:,�..•�� �. . .��$' �, .,�,�,� 476,838,411 429,975,492 383,286,513 316,411,414 301,711,240 ti .�.� ,y v� �� � �. � `:�:"" Nx��'x � ��� 0 0 370 2,138 2,138 17,795,034 13,109,332 12,424,085 9,635,015 L3,245,112 �� ;�i� 45,542,975 44,899,884 38,091,911 35,730,'772 37,209,995 � '�R�� 0 0 0 0 0 ° , (402,531) (437,726) (434,582) (455,101) (470,220) �'� "' ��' h i � 62,935,478 57,571,490 50,081,784 44,912,824 49,987,025 ��� � � $ 539,773,889 $ 487,546,982 $ 433,368,297 $ 361,324,238 $ 351,698,265 �;; . � ��as:" ��,� , a� ��'^ ���.,���*�, u"� � " c �� a��w/ �,� \ f�Y �jy�y.� � * . � '� � 'w'`�N r �f :���'� , '� --� `` a �u�r s�... \: ;�.. v .4. };s, '?�'� ,�' ;'fr �. .u3 .... ... ...... . .t -.. �r,.,.,'�.. •:."� r: � ,:y''. .. . ..,. �:,:-s. . . . , . .. u ...!,..... . ,..:, • , „ . ,.. . .. . ...... . ��. �qj'gT�'�y* 4�...� ,. ��"`s``" ��`" a�� $ 76,423,641 $ 70,984,182 $ 67,042,691 $ 62,879,457 $ 62,465,266 _...:. . �', ,. ,-., n.�... , ; �.�� ,,., s 176,923,362 167,824,429 149,512,375 142,889,361 143.323,854 " `"'' `�°'`' � 3 ��"' � 1,224,360 1,221,819 1,739,556 4,247,032 4,474,127 .� � >, . �h... � ,�x "�".: .c....... ..:......�c � 0 255 40,255 0 2,295 � _ - ��`� ����'�.,�,.�r ��� �� „ (2,977,801) (2,868,530) (2,651.190) (2,429,452) (19,068,851) �� ��� �,�� ��- � F,� - � � „'.��� (1,750,000) (1,687,000) (1,762,600) (1,789,200) (1,807,400) �' ; �; � �.,�, ; ���� n�� 249,843,562 235,475,155 213,921,087 205,797,198 189,389,291 Y �\'�'���.�,{ ~3-L � d � 2,213 29,325 29,992 31,781 29,656 �: <, ,, , � _ ��,� ':, q;u �a ,�?,,,;�,;,,;,;, 8,281,641 11,021,570 I1,069,151 8,832,767 8,843,353 '' ��,,,,H�3 ,,,�;;. ;,' 26,061,080 21,453,363 24,808,691 18,345,262 18,062,689 '� � �' �`'�'� , ��� � 0 904,695 1,176,179 625,647 771,922 r .... `�°" �` � ''�' �` �` „ ��` � (459,656) (646,953) (424,328) (399,507) (341,825 � , .-� � : >, .� � a� ) � � ,� ��`�� 33,885,278 32,762,000 36,659,685 27,435,950 27,305,795 . ,::; ., ., :�;... `�.. ., . � � „� . �. a � � � y a� � . $ 283,728,840 $ 268,237,155 $ 250,580,772 $ 233,233,148 $ 216,695,086 ��', �. � ���. .: (1)Secured values include State assessed data. Source:Palm Desert Redevelopment Agency,TaY Increment Calculations&County of Riverside 212 City of Palm Desert Change in Taxable Values Redevelopment Project Area# 3 2008 versus 2007 � � � � � ,�- � �:. � � �z� �. �� � z . � `r �� ff � ,��� � �J \.,4=� p..r:::Y � „xa. "� . . .,§'� , � ,• � , a� $ 119,422,958 $ 114,253,170 4.5% r . �" � , y � ��;; $ 375,240,496 $ 333,347,161 12.6% � � ,,. � ,;, $ 3,629,771 $ 3,893,071 -6.8% v � �. ' $ � $ p 0.0% _ � � k ,,, � '�y � �. $ (19,251,214) $ (19,311,510) -0.3% , � , ,,, ,.�., ,;, � � - � '' $ (2,203,600) $ �2,206,400) -0.1% �.. � 476,838,411 429,975,492 10.9% _ , �� Y; ,� . >> <:�, :..� � $ � $ � 0.0% � � � , ` ` "'' $ 17,795,034 $ 13,109,332 35.7% � �: �� � �`' � �� `` ;� $ 45,542,975 $ 44,899,884 1.4% �.� E "� � ,h $ 0 $ 0 0.0% � 4'.,. li x �' �� ..:. r � ,.. A $ (402,531) $ (437,726) -8.0% � ., ., . � , � _, , ' ;;� ; 62,935,478 57,571,490 9.3% �,..� 3. , e� ,:� ::: ��,�, .. . .... ,�.�c,.::�: .;.. . . .��.: ,....., �.� ;.�.w ,, . , .�� , $ 539,773,889 $ 487,546,982 10.7% , � � ; ��. , x, z ! �, ,.v ,., .:.. .� w, �.:• (1) Secured values include State assessed data. Source: County of Riverside,County Auditor Controller,Assessed Valuations 213 City of Palm Desert Historical Net Assessed Taxable Values Redevelopment Project Area#4 Last Ten Fiscal Years . ar 3 �� _ ��.ss�.a,-:�v� �� . ,3„`�� .^,,,t ,���, -. .� , �' �. ..`;�". �'� ...y i.. � a.�:. � , a., �_. � � £�' f r,�"� y� s..>��h>y'��� ��,, v`�,����Y.' $ 589,549,492 $ 538,079,392 $ 480,264,736 $ 423,136,913 $ 387,894,896 '` �� ,��,�� � � � s`�.'' 1,340,102,309 1,253,230,590 1,145,343,698 1,06Q291,261 1,000,472,990 �•• .-,����. , �a"....�,:� :a,: �"��?�` � �� 4,306,781 895,558 1,037,306 1,039,548 903,523 �.•; a��x,,, "� �'�.,��„-; 0 0 0 0 0 „�: ° - s * "��?�.... (3,046,149) (2,814,993) (2,988,924) (2,213,136) (2,236,588) �� ,.. ..,; ... , . ..�. . „ �,,,;-. - „�.. "�- �"'��;+" .,�;,�,, (15,577,800) (15,797,600) (15,874,600) (16,083,200) (16,032,800) �, '" ,,."� .'.� O �=.� �: .�«;�,� \ `:�'� '�' ', Zv,� y - 1,915,334,633 1,773,592,947 1,607,782,2t6 ],466,171,386 I}71,002,02t :��, 3.:=� � `,�.., �wa. '>�. � �' 3 � a�����` � � �.,�� y��, � :'�y,�;a.,-° 0 0 0 0 0 3�' 1,372,786 1,581,231 1,606,970 2,043,627 1,172,618 �• 2�.'�-�. < �' j °�:;.. 6,712,170 7973,923 10,276,814 4,639,732 3,438,910 0 0 0 0 0 �� .,� r. �'�. 8,084,956 9,555,154 11,883,784 6,683,359 4,61t,528 t.. �� , � �' ��3 3 � �. $ 1,923,419,589 $ 1,783,148,101 $ 1,619,666,000 $ I,472,854,745 $ 1,375,613,549 „,� . . .� .:. . . ...�,,, ...,,,...�... :;^ . ...:: ,�:� �. . ...,..:�..,.9 ....� � a .� y � x� :, Z.. � �� � �. .,� � � �:�w � � � �`r,��' '�-��� �a `� ��. � ` �:.'. �y ;, ... __, � w � p j � � �, � � �,r a ��� . .. .. , . . ,.. • � � � `" z � � ,��` '���, > a � d �"�' -:� $ 363,532,124 $ 336,601,532 $ 295,636,937 $ 266,431,690 $ 241,556,658 ��� �.�� ��,�.,?- �`;�`�.,.'���',,�.,,,w .::����� 943,610,707 861,691,896 742,772,488 639,902,284 543,45Q593 „� ,:,'.�� .,��- F' i�c� 1,176,t04 1,269,934 1,085,189 1,13Q254 3,312,159 � �' ..� �� :.. ��.�:'s :�, 0 91,675 32,666 52,911 �, ,"„ ���" +�'�,�; � ��,`�',a ,�,'�''. (2,005,855) (1,924,780) (1,24Q153) (1,125,349) (945,874) � �gp,, � . �;`y �'�,�;��_,,;' (15,162,000) (14,604,800) (14,263,200) (13,61Q800) (13,367,200) .:��.�' �,�,. � ,iz=� 0 0 0 0 0 �;$. 1,291,151,080 1,183,125,457 1,024,023,927 892,728,079 774,059,247 �+ � , ��� � ,�� a�. ;� �\�r. ,�j ti�� ,�=.,. 0 0 0 0 0 i c '. �_;�..�,,,�� � � ` `` ''�' � '�.�G,.�.,���F . 1,610,760 1,878,576 2,018,343 1,874,135 624,979 .., �;_���\ �` �� '`�� 6,79Q656 8,053,034 8,071,994 8,292,670 1,673,026 ;,.'�!'�"� •a:'. � `�...;r:, ,,; y, ,,,'t ,...�a.,�:� '�e: 0 7Q495 31,283 28,376 28,�41 � ,a::3.� ; ��,:::�. Y'�, 8,401,416 10,002,105 10,121,620 ]0,195,181 2�26,746 �. �:t.,� „ >,�. ... .,... . ._ . .. , �� �?��„;: f;;;_; $ 1,299,552,496 $ 1,193,127,562 $ 1,034,145,547 $ 902,923,260 $ 776,385,993 (I)Secured valuesinclude State assessed data. 214 City of Palm Desert Change in Taxable Values Redevelopment Project Area#4 2008 versus 2007 , ,..: , . �»� . . .. ,.,,�.� E@ \ � ��- ., f, �'�, . . . �� �k.. �:�"f����., a.... � � �:: � ..:� � .y:� � �:: , � F. �. � u x � e a�Y. ,x?��: n h .R:� \ �P k' r% 1 ��.. ,y��h \�. �� � C3 •.:Y.. �,s, , , � ;,' � ` a� ,,�����;� ��. $ 589,549,492 $ 538,079,392 9.6% ' � ,� ������� , . ;; ��;��„ �: $ 1,340,102,309 $ 1,253,230,590 6.9% ; .. �'�, a; � ,��� ��. $ 4,306,781 $ 895,558 380.9% �..., . �. .z. �\ �, v � " O $ ,��:', ��r,• �^�", �� . $ 0 0.0% � ,,.:.: � "' '.` ' "� v � �' $ (3,046,149) $ (2,814,993) 8.2% �n„, , �� � ��x :.G.. \..r , x ; ��' �:'. , '`' $ (15,577,800) $ (15,797,600) -1.4% ;,, - �, „ $ 0 $ 0 0.0% -� �: ��_..nr.� �. . �.���. ^�:, �\� � '; n.,�,- �r���.� � o 1,915,334,633 1,773,592,947 8.0/o .:�. rs ,°;;�, ;; .� ; � � �, � � �;. : ' ,. '�,.. ��'° �"��� � ; ��. �� o r `� $ 0 $ 0 0.0°/a _�...�� ,R . .� � ,� ,` �.' ° , ,�, �;� $ 1,372,786 $ 1,581,231 -13.2% ,,�:. c,� ,. ,.��:� '' ry " � � z' �_,�„� �;� $ 6,712,170 $ 7,973,923 -15.8% , � '� .u.� '_� _ �. . $ 0 $ 0 0.0% � � �.;; � a � ;�� � � � '� �,� 8,084,956 9,555,154 -15.4% ,��;. � , �f� ,� ��� � � ` � �,��� x ���� $ 1,923 419,589 $ 1,783 148,101 7.9% � � � Q��,' �.� �,,���; , , ..tt�•::.�.. ,,. . �: �,....... .. �,,,;:. 215 THIS PAGE INTENTIONALLY LEFT BLANK 216