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:
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VF,RIFIF,D I3Y:
Original on File with City Clerk's O!'fice
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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
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vi
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�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
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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
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�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. ORTEGA
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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-
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- 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-
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- 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 -
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-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 -
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- 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.
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- 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.
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- 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.
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- 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
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� .� � � � -. � -� � � S . : Q FAIRWAYDR
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� yGRAPEVINE^ST p
a
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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
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. 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
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216