HomeMy WebLinkAboutCAFR Final FYE 06302018
City of Palm Desert
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2018
Palm Desert, California
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2018
Prepared by the Finance Department
City Treasurer/Director of Finance
Janet M. Moore
Assistant Finance Director
Jose Luis Espinoza, CPA
Finance Staff
(in alphabetical order by positions and last names)
ACCOUNTING TECHNICIAN II
James Bounds
ACCOUNTING TECHNICIAN II
Horacio Celaya
ACCOUNTING TECHNICIAN II
Sharon Christiansen
ACCOUNTING TECHNICIAN II
Diana Leal
ADMINISTRATIVE SECRETARY
Niamh Ortega
DEPUTY CITY TREASURER
Thomas Metz
MANAGEMENT ANALYST II
Jenny Weill
SENIOR FINANCIAL ANALYST
Anthony Hernandez
SENIOR MANAGEMENT ANALYST
Veronica Tapia
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CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................. i
GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................... v
List of Principal Officials ......................................................................................................................... vi
Organizational Chart ............................................................................................................................. vii
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1
MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................ 5
BASIC FINANCIAL STATEMENTS
Statement of Net Position ............................................................................................................... 17
Statement of Activities .................................................................................................................... 18
Balance Sheet – Governmental Funds .......................................................................................... 22
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position ................................................................................................. 25
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ....................................................................................... 26
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities ........................................................................................................... 28
Statement of Net Position – Proprietary Funds .............................................................................. 29
Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds ................................................................................................ 30
Statement of Cash Flows – Proprietary Funds ............................................................................... 31
Statement of Fiduciary Net Position – Fiduciary Funds ................................................................. 32
Statement of Changes in Fiduciary Net Position – Fiduciary Funds .............................................. 33
Notes to Basic Financial Statements .............................................................................................. 35
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous Plan – Agent Multiple-Employer Schedule of Changes
in the Net Pension Liability and Related Ratios ....................................................................... 98
Miscellaneous Plan- Agent Multiple – Employer Schedule of Plan Contributions ......................... 99
Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................... 100
Schedule of Contributions – OPEB .............................................................................................. 101
Budgetary Comparison Schedule by Department – General Fund .............................................. 102
Budgetary Comparison Schedule – Measure A ........................................................................... 104
Budgetary Comparison Schedule – Prop A Fire Tax ................................................................... 105
Budgetary Comparison Schedule –Housing Asset Fund ............................................................. 106
Budgetary Comparison Schedule – Housing Authority ................................................................ 107
Note to Required Supplementary Information .............................................................................. 108
SUPPLEMENTARY SCHEDULES
Combining Balance Sheet – Other Governmental Funds ............................................................ 110
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Other Governmental Funds .............................................................................. 111
Combining Balance Sheet – Other Special Revenue Funds ....................................................... 116
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Other Special Revenue Funds ................................................................... 122
Budgetary Comparison Schedules – Special Revenue Funds:
Traffic Safety .......................................................................................................................... 127
Gas Tax .................................................................................................................................. 128
Housing Mitigation Fees......................................................................................................... 129
Community Development Block Grant ................................................................................... 130
Child Care Program ............................................................................................................... 131
Public Safety Police Grants ................................................................................................... 132
New Construction Tax ............................................................................................................ 133
Planned Drainage .................................................................................................................. 134
Parks and Recreational Facilities ........................................................................................... 135
Traffic Signals ........................................................................................................................ 136
Fire Facilities Restoration ...................................................................................................... 137
Recycling ................................................................................................................................ 138
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
Energy Independence Loan ................................................................................................... 139
Air Quality Management......................................................................................................... 140
Aquatic Center ....................................................................................................................... 141
Cannabis Compliance ............................................................................................................ 142
El Paseo Assessment District ................................................................................................ 143
Landscape and Lighting Districts No. 1-17 ............................................................................ 144
Former RDA Low Income Housing ........................................................................................ 145
Combining Balance Sheet – Other Capital Projects Funds ......................................................... 148
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Other Capital Projects Funds ..................................................................... 152
Budgetary Comparison Schedules – Capital Project Funds:
Capital Properties ................................................................................................................... 156
Capital Projects Reserve........................................................................................................ 157
Drainage Facilities .................................................................................................................. 158
Economic Development ......................................................................................................... 159
Parks and Recreational Facilities ........................................................................................... 160
Art in Public Places ................................................................................................................ 161
Signalization ........................................................................................................................... 162
Capital Golf ............................................................................................................................ 163
Buildings ................................................................................................................................. 164
Balance Sheet – Other Debt Service Fund .................................................................................. 166
Statement of Revenues, Expenditures and Changes in
Fund Balances – Other Debt Service Fund ........................................................................... 167
Budgetary Comparison Schedule – Debt Service Fund:
City Highland Undergrounding ............................................................................................... 168
Combining Statement of Net Position – Internal Service Funds .................................................. 170
Combining Statement of Revenues, Expenses and Changes
In Fund Net Position – Internal Service Funds ...................................................................... 171
Combining Statement of Cash Flows – Internal Service Funds ................................................... 172
Combining Statement of Assets and Liabilities – All Agency Funds ............................................ 175
Combining Statement of Changes in Assets and
Liabilities – All Agency Funds ................................................................................................ 176
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
STATISTICAL SECTION
Description of Statistical Section ......................................................................................................... 179
Financial Trends:
Net Position by Component .......................................................................................................... 181
Changes in Net Position ............................................................................................................... 182
Fund Balances of Governmental Funds ....................................................................................... 185
Changes in Fund Balances of Governmental Funds .................................................................... 186
Graphs – Changes in Fund Balances of Governmental Funds .................................................... 187
Supplemental Historical General Fund Revenues ....................................................................... 188
Supplemental Graph – Historical General Fund Revenues ......................................................... 189
Supplemental Historical General Fund Expenditures ................................................................... 190
Supplemental Graph – Historical General Fund Expenditures .................................................... 191
Supplemental Historical General Revenue and Expenditures Per Capita ................................... 193
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property .............................................. 194
Historical Net Assessed Taxable Values Citywide and
Graph – Assessed Valuation Growth ........................................................................................ 195
Supplemental FY 2018 and 2017 Breakdown of Basic 1% Property
Tax Rate Not In Redevelopment Project Area .......................................................................... 196
Property Tax Rates Direct and Overlapping Property Tax Rates ................................................ 197
Principal Property Taxpayers ....................................................................................................... 198
Property Tax Levies and Collections ............................................................................................ 199
Supplemental Top 25 Sales Tax Generators and
Graph – Historical Sales Tax Trends ........................................................................................ 200
Supplemental Taxable Sales by Category ................................................................................... 201
Supplemental Principal Sales Tax Remitters ............................................................................... 202
Debt Capacity:
Ratios of Outstanding Debt by Type............................................................................................. 203
Ratios of General Bonded Debt Outstanding ............................................................................... 204
Supplemental Special Assessment Information ........................................................................... 205
Direct and Overlapping Government Activities Debt .................................................................... 206
Legal Debt Margin Information ..................................................................................................... 207
Pledged-Revenue Coverage ........................................................................................................ 208
Demographic and Economic Information:
Demographic and Economic Statistics ......................................................................................... 209
Principal Employers ...................................................................................................................... 210
Supplemental Miscellaneous Statistics ........................................................................................ 211
Operating Information:
Full-Time Equivalent City Government Employees by Function/Program ................................... 212
Operating Indicators by Function/Program ................................................................................... 213
Capital Asset Statistics by Function/Program .............................................................................. 214
CITY OF PALM DESERT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page
Number
SUPPLEMENTAL REDEVELOPMENT AGENCY STATISTICAL SECTION
Redevelopment Agency Project Areas Map ................................................................................. 216
Tax Allocation Bond Issue Information ......................................................................................... 217
Historical Tax Increment – Redevelopment Property
Tax Trust Fund Summary ...................................................................................................... 218
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D ecemb er 14 , 201 8
R es ide nts of P alm D esert ,
C I l Y 0 f P Al M
73-5 10 FR E D W A RI NG DRI VE
P ALM D ES ERT , C A LI FO R N I A 9226 0-25 78
TEL: 760 346-0 61 I
info@c it yofpa lmdese rt .org
H o norabl e M ay or a nd M e mb er s of th e City C o un c il
Of~f Rl
Th e Fin a nce D e pa rtme nt is ple a sed to pre se nt th e C o mpre h e ns ive A nnu al Fin anc ial R e port (CAFR) of th e City
of Pal m D esert fo r th e fi scal year e nd ed Jun e 30 , 2 01 8.
The fin a ncia l state m e nts are pre p are d in acc orda nce w ith ge nera ll y accepte d accounting pri nc ipl es (G A AP) a nd
th e Go ve rnme nt a l Acco untin g S ta nd ard s B o ard (G A SB ). W e beli eve th e d ata, as prese nted , is acc ura te in all
m ateri al res pec ts a nd is pre se nted in a m ann e r th at fa irl y represe nt s th e fin a nc ial pos ition and chan ges in fin anci al
pos ition o f th e City as m eas ure d by th e fin a nc ial ac ti vit y of eac h of it s fund s. W e als o beli eve th at all di sclo sures
necessary to e na bl e the read er to full y und e rs ta nd th e C it y's fin a nc ia l ac ti viti e s ha ve been p rese nt ed.
R es pon s ibility for th e acc uracy, co mpl e te ness a nd reli a bility of th e informa ti o n contain ed in thi s re port res ts w ith
th e City.
The City of Palm Desert c ondu c ts a n a nnu al a ud it , whi c h is perform ed by an ind epend e nt certifi ed publi c
accounta nt. The inde pe nd e nt audit of th e City's fin a nc ial state me nt s for fi scal year e nd ed Jun e 30 , 2 01 8 w a s
co nducted b y Lance S o ll & Lun g hard , LLP . Th e auditor 's unmodifi ed ("cl ean") o pini o n on th e bas ic fin anc ial
s tate me nt s is included in th e Fin a nc ial S ection o f thi s re po rt. Thi s is th e mo st favorab le o pini o n .
A s part of th e City 's annu al a udi t e ngagem e nt , th e a udit ors rev iew ed th e City 's intern al c ontrol stru cture as well
as c ompli a nce with a ppli cab le laws a nd reg ul ati o ns . B eca use th e co st of inte rn al co ntrol should no t exceed
anti c ip a te d be ne fit s, th e obj ec ti ve is to pro v id e reas on abl e , rath er th a n ab solute a ss urance, that th e fin anc ial
state m e nt s are free of a ny m ateri al mi ss tate me nt s . Th e res ult s of th e City 's a nnual a udit fo r fi scal ye ar ended June
30 , 2 01 8 prov id ed no in s ta nces o f m a teria l weakn esses in co nn ection w ith th e intern al cont ro l structure or
s ig nific a nt vio lati o ns of a ppli c abl e laws a nd reg ul ati o ns.
A s recipi e nt s o ffed eral , s tate and c ount y fin a nc ial reso urces, th e C ity may b e required to und er g o a n a nnual s in g le
a udit. H owever , for th e fi scal year e nd ed June 30 , 2 01 8, th e City is no t re quire d to h ave a s in g le audit pe rform e d .
M anagem e nt 's di sc uss io n a nd a nal ys is (MD &A) immedi atel y follo w s th e inde pe nd e nt audito r 's re port a nd
pro vid es a na rrati ve introdu c tion , overv iew, a nd a nal ys i s o f th e bas ic fin a nc ial state m e nt s . MD&A c omp leme nt s
thi s letter of tra ns mittal a nd sho uld be read in conjun ction w ith it.
O PRIMTEOONRECYCLEOPAPU
Res idents of the C ity of Pa lm Desert, Ho no ra ble Mayo r a nd M emb e rs of th e Ci ty Cou n c il
December 14, 2018
PROFILE OF THE CITY OF PALM DESERT
Loc a ted in Rive r s id e County in th e geo g raphi c al cent e r o f th e Coac he ll a V a ll ey, P a lm D esert wa s in c orporate d
on Nove mbe r 2 6 , 1973 , as a G e ne ral Law City . On No ve mbe r 4 , 1997 , v ote rs o ve rwh e lmingl y approved M eas ure
LL a d o ptin g a c it y c h a rt e r.
Und e r th e p rov is io ns o f th e c harte r, th e City of P a lm D ese rt h as full a uth o rit y over it s ow n muni c ip a l a ffa irs
in c ludin g: bidding a nd co nt rac tin g p rocedures; reg ul a ti o n o f p arks, lib ra ri es, a nd o th e r fac iliti es; cert a in fees;
impos iti o n o f taxes; muni c ip a l zo nin g; sala ri es of offi c ia ls a nd e mpl oyees; muni c ip a l utiliti es; a nd muni c ip a l
e lec tion procedures.
The City o p e rates unde r a Coun c il -Manage r form of governm e nt. The City C o un c il co ns ists o f fi ve m e mbe rs
e lec te d b y th e res id e nts o f th e City. Council te rm s are four years and e lecti o ns occ ur in Novemb er durin g even-
numbe red yea rs. E ac h D ece mbe r, th e City C o un c il se lec ts th e M ay or fr o m a mon g it s m e mbers fo r a o ne -yea r
te rm . Th e City Coun c il a p po int s th e City M a n ager a nd th e City A ttorn ey.
The City o pe rates as a "cont rac t c it y," prim a ril y utili z in g agreem e nts w ith o th e r governme ntal e ntiti es, pri va te
firm s, a nd indi v idu a ls to pro v id e m a n y serv ices. C o ntracted serv ices includ e: p o li ce prote ction throu g h th e
C ounty of Ri ve rs id e; fir e protec ti o n throu g h C a l-Fire; a nim a l c ontrol ; ro ad m a inte n a nce a nd co ns tru c ti o n
se rv ices; legal serv ices; la nd scap e m a inte n a nce; and recreati o n prog ram serv ices . The C ity is a m e mbe r o f th e
C a liforni a Joint Powers In s uran ce Auth o rit y th a t prov id es in s uran ce c o verage for th e City. Was te a nd recyc lin g
serv ices a re prov id e d und e r a fr a nc hi se ag reem e nt w ith Burrtec W as te a nd R ecyclin g S e rv ices. Th e City pro v id es
t ra dition a l muni c ip a l, publi c e nte rpri se, a nd ho us in g se rv ices as follow s:
Municipal Services
Public improve m e nts, infras tru c ture a nd m a inte na nce
Public a rt a nd c ommunity promoti o n
Pl a nnin g, zo nin g, building and e ng in eerin g
Hou s in g a nd c ommunity d e ve lopme nt
Code e nforcem e nt and in s pection s
E c onomi c d evelopme nt , bu s in ess s upport and e ne rgy
c on servati o n
L eg is la ti ve, c ity cl erk, v i sitor's serv ices, publi c
inform a tion , general a dmini stration , fi scal serv ices,
hum a n res ources, a nd ri s k manageme nt
Building p e rmittin g, in sp ec ti o ns a nd serv ices
II
Public Enterprise Services
G o lf c ourse
Offi ce complex
Inte rnal serv ice
Blended & Discrete Component Units
PD Hou sing A uthority
PD Financ in g Auth o rit y
PD R e cre ation a l Fac iliti es C o rporati o n
R es idents of the Ci ty of Pa lm Dese rt, H on orable Mayo r and M em bers of the City Co un cil
D ece mber 14, 2 01 8
The City maint ain s bud ge tary co nt ro ls to e nsur e co mpli ance with legal prov i sio ns e mb odi ed in th e annu al
a ppropri ate d bud ge t app rove d b y th e Cit y Co un c il. Ac tiviti es of th e G e neral , Spec i al R eve nu e, Debt Service, and
C apital Proj ec t Fund s are includ e d i n th e annu al appropriated budget. Budge tar y am o unt s for D e bt Service ,
Capital Proj ec ts, and ce rt ain Spec ial Revenu e Fund s a re ad opted annu all y; however, th ese budge ts are c o nsid ered
to be long-t erm in nature .
The City al so m ain tain s a n e nc umbrance acco untin g sys te m of purc hase ord ers and co nt rac ts at th e fund le ve l as
a m e an s of acco m p li s hi ng bud ge tary co nt ro l. At eac h fi scal year e nd , op e n e nc umb ra nces are carri e d o ve r to th e
new fi scal year. Purc hase orde rs ar e rev iewed to e ns ure th at fund s are ava il abl e and th at requ es ts are prop e rl y
a uthori ze d prior to be in g re leased to ve nd ors.
The adopte d bud ge t for fisca l year 2017 -2 01 8 was pre p are d in accor dance wi th acco unti ng pri nci ples ge nerall y
acce pt ed in th e United S tates of Am erica. As re fl ec ted in th e s tate me nt s and sc hedul es include d in th e fin anci al
section of thi s re p ort, th e City co ntinu es to mee t it s res po nsibilit y for sound fin anc ial ma nage me nt.
LOCAL ECONOMY
Th e City compri ses an area o f ap p rox imatel y 26 squ are mil es a nd , as of Janu ary 1, 201 8, h as a popul ati on of
52,769 acc ordi ng to data prov id e d b y the Cali fo rni a De p ar tm e nt of F in ance. In addition to perm ane nt res id e nt s,
approximate l y 20 ,000 seaso n al res id ents m ak e P alm Desert th e ir hom e fo r thr ee to six mo nth s e ac h year.
The Cit y has c ulti vated a so und fo und ati o n of ge neral fund reve nu es includin g sales tax, tra nsie nt occ up anc y tax,
li ce nses an d p e rmit s, pro perty tax, and in ves tm e nt earnin gs. T o uri s m and sales ta x are th e Ci ty's main re ve nu e
s ources. Du e to th e timin g of Palm Desert 's in corp oration in 197 3, th e Cit y receives less th a n 7 p ercent of th e
po s t-Pro p osi ti o n 13 p ro p e rt y taxes; th ere fo re, th e Cit y re li es heavil y on sales tax a nd tran sie nt occ up ancy tax.
As a c ommunity w here eco nomi c, e nvi ro nme nt al , soc ial , and c ultur al deve lo pme nt fl o uri s hes, P alm Des ert is a
mu c h so ught -after place to vi sit and res ide . As th e fi rs t cit y in Ri vers id e C ount y to create a publi c art pro gram ,
Palm Desert is home to numerou s cultur al attracti ons includin g: th e M cCallum Theatre fo r th e Pe rfo rming Arts,
a 1,127 -s eat theater th at hos ts a wid e var ie ty of A-li st e nt ert a in ers, to urin g th eatrical produ c ti ons, and art s-re l ated
e ducati o nal p rog ra ms; The Li vin g Desert Zoo and G ar de ns, a 1,200-acre fac ilit y co nt ainin g a wid e arr ay o f pl ants
and animal s fr o m desert reg io ns aro un d th e world ; and th e Palm Desert A rt in Public Pl aces progr am , a mu se um
without w all s, fe aturin g m ore th an 150 wo rks of art on pe rm ane nt di s pl ay throu ghout th e c it y.
P alm Desert's ac ti ve, five-star acc re dite d C ha mb er of C o mm erce h as more th a n 1,125 m emb ers who work to
promote, s upp ort , and e nh ance bu sin ess pros perit y, c ivic vit alit y, and th e qu ality of life within th ei r c ommunity.
Note d for it s ex te nsive arr ay of re tail o pti o ns , includin g th e wo rld -fam o us ups cal e sho pping des tin ation of El
Pase o, P alm Desert is hom e to a va ri e ty of m all s and re tail ce nt er s in cl udin g W es tfi eld P alm Desert , Desert
Cro ss in g, The Garde ns o n El Paseo, and El P aseo Vill age .
The intern ati o nall y accl a ime d Desert Will ow G olf R es ort , o ne o f th e nati on 's premi er muni cipal co urses, boas ts
36 holes of ch amp io nshi p go lf and stunnin g sce ner y in cl ose prox imity to fir st-cl ass hot e l ac commodation s a nd
fin e dinin g.
In additi on to be in g th e hom e of th e Coache ll a Vall ey's onl y co mmunity coll e ge , College of th e Dese rt , Palm
Desert i s th e l ocati on of s at ellite ca mpu se s fo r b o th th e Uni ve r sit y of Cali fo rni a, Ri ve r side, and C alifornia State
[~yre~~tyPl11MB r r ff~yo , th e regio n 's onl y publi c, fo ur -year uni ve rsit y.
lll
O PR IMTEOONRE(Y(l[DPAPER
R es idents of the City of Palm D esert, H onorable M ayor an d M embers of the City Counci l
D ecember 14 , 2 01 8
The S tate of Cali fornia E mpl oy me nt Develo pme nt D epartme nt Lab or Market In for m ati o n Di vi sio n reporte d th at
th e C it y of P alm D esert had an un empl oym ent rate of 5.0 % com pared to Ri ver side Co un ty, w hic h had a rate o f
4.8 %. The Ci ty 's b al anced foun da ti o n of to uri s m , c ulture, and edu cati o n has stre ngth e ne d t he C ity's l ab or fo rce .
LONG-TERM FINANCIAL PLANNING
In June 20 18 th e C it y Coun c il a pp rove d a total of $23.39 milli o n in fu ndin g for vario us capital i mproveme nt
proj ec ts for the fi sc al year o f 201 8-2 01 9 . P rojects i ncl ude resurfac in g street s, sid ewalk repairs and co nstru c ti o n,
access ibili ty improve me nt s, str ee t w id enin g, improv in g d rai nage areas, p ark imp rove me nts, a nd imp rove m ents
at Desert Wi ll ow Go lf Reso rt and P ar kv iew Office Co mpl ex .
Ce rtifi cates o f Awards for Outstanding Financial Reporting
The Govern me nt F in a nce Offi cers Associatio n of th e U ni ted S ta tes and Can ada (GFOA) awarded a Cer tifica te o f
Ac hi eveme nt for Excell e nce in F in anci al R eport in g to the C it y o f P alm Dese rt fo r it s co mpre he nsive annu al
fin anci al re port fo r th e fi scal yea r e nd ed Jun e 30 , 2017 . Thi s was th e 2 1st co nsec uti ve year th at the C it y has
ac hi eved thi s pres tig io us award . In order to be awarde d a Certifi cate of Ac hi eveme nt , a governme nt mu st publi sh
an eas il y read ab le a nd effic ie ntl y organi ze d co m pre he nsi ve a nnu al fin a nc ial re po rt. This report m ust sa ti sfy b o th
ge nerall y acce p te d acco untin g prin c ipl es and ap pli cabl e legal require m e nt s.
A Cert i fi cate of Ac hi evem e nt i s valid fo r a perio d of o ne year o nl y. We b e li eve th at our curre nt co m prehensive
an nu al fi na nc ia l re port continu es to m ee t th e Cert ificate of Ac hi eveme nt P rogram 's requireme nt s and we are
submitti ng it to the GFO A to d etermin e its e li g ibility fo r a no th er certifi cate .
Acknowledgments
Th e pre p ara tio n of th is re p ort i s attributabl e to th e effic ie nt a nd d edi cated st aff of th e Finance Departme nt who
are indi vidu all y recog nized o n th e titl e page. The Mayo r a nd t he C it y Co un cil are credited for the ir s upp ort in
pl annin g and co ndu ctin g th e o perat io ns of th e C ity in a prude nt , res po nsi bl e a nd progressive man ner. R ecog niti o n
i s al so g ive n to all e mpl oyees o f th e City o f P alm Desert w ho conti nu e to se rve o ur co mm unity wi th commitme nt
and de di cati o n th ro ug ho ut th e ye ar. Our greates t a p prec iati o n goes to yo u , th e res id ent s of Palm Desert, fo r yo ur
continu e d sup p o rt , inpu t, and g uid ance in hel pi ng us se rve yo u be tt er , thu s p reservin g o ur c ity 's q uality o f li fe
and re putati o n fo r inn ovati o n and lead ers hi p.
R es pectfull y s ubmitte d ,
L auri Ayl aian
Ci ty M anager
JLE:j le
Direc tor of F in an ce
l V
v
CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2018
City Council - Manager Form of Government
CITY COUNCIL
SABBY JONATHAN
Mayor
SUSAN MARIE WEBER
Mayor Pro-Tempore
JAN C. HARNIK
Council Member
KATHLEEN KELLY
Council Member
GINA NESTANDE
Council Member
CITY ADMINISTRATION
LAURI AYLAIAN
City Manager
City Attorney - Best, Best & Krieger, LLP Robert W. Hargreaves
Director of Finance/City Treasurer Janet M. Moore
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
LAURI AYLAIAN
Executive Director
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vii
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Report on the Financial Statements
We have audited the accompanying financial statements of governmental activities, the business-type
activities, discretely presented component unit, each major fund, and the aggregate remaining fund
information of City of Palm Desert, California, (the City) as of and for the year ended June 30, 2018, and
the related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022
An Association of Independent Accounting Firms
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
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, California, as of June 30, 2018, and the respective changes in financial position and,
where applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note 18 to the financial statements, in 2018 the City adopted new accounting guidance,
GASB Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than
Pensions. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the budgetary comparison schedules for the general fund and major special
revenue funds as listed in the table of contents, the schedule of changes in net pension liability and
related ratio, the schedule of contributions, the schedule of changes in net OPEB and related ratios, and
the schedule of contributions be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual
nonmajor fund financial statements and schedules, and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the combining and individual nonmajor fund financial statements
and schedules are fairly stated in all material respects in relation to the basic financial statements as a
whole.
2
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 14, 2018 on our consideration of the City’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely 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
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Brea, California
December 14, 2018
3
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4
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, 2018 provides: a comparison of current year to prior year ending results based on the
government-wide financial statements; an analysis of the City’s overall financial position and results of
operations to assist users in evaluating the City’s financial position; a discussion of significant changes that
occurred in the 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 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 total assets and deferred outflows exceeded its liabilities and deferred inflows by $793.31
million (net position).
The City’s governmental activities net position decreased $15.36 million, and the net position of the
business-type activities increased $0.06 million.
During the year, the City’s revenues were $88.89 million and expenses were $91.47 million in its
governmental activities, excluding transfers, compared to fiscal year 2017, where revenues were
$88.51 million and expenses were $86.61 million.
In the City’s business-type activities, expenses were $0.36 million less than the $10.05 million
generated in golf course green fees, merchandise sales, rental income and other revenues
compared to the prior year, where business-type activities revenues were $0.28 million more than
its expenses.
The City’s governmental activities program revenues and general revenues increased by $0.38
million, while program expenses increased $4.86 million.
Business-type activities revenues increased $0.64 million, from $9.41 million to $10.05 million.
Expenses increased from the $9.13 million to $9.69 million.
The City kept its General Fund expenditures within spending limits by $2.49 million. The revenues
available for expenditures were over budget by $0.06 million.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and
Statement of Activities (on pages 17, 18 and 19) provide information about the activities of the City as a
whole and present a long-term view of the City’s finances. The fund financial statements start on Page 22.
For governmental activities, these fund statements tell how these services were financed in the short term
as well as what remains for future spending. The 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.
5
REPORTING THE CITY AS A WHOLE
The Statement of Net Position and the Statement of Activities:
Our analysis of the City as a whole begins on page 17. One of the most important questions asked about
the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?” The
Statement of Net Position and the Statement of Activities report information about the City as a whole and
about its activities in a way that answers this question. These statements include all assets and liabilities
of the City using the accrual basis of accounting, which is similar to the accounting used by most
private-sector companies. All of the current year’s revenues and expenses are taken into account
regardless of when cash is received or paid.
These two statements report the City’s net position and changes in them. Net position is the difference
between total assets and deferred outflows of resources less liabilities and deferred inflows, which is one
way to measure the City’s financial health, or financial position. Over time, increases or decreases in the
City’s net position 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 Position 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.), housing and redevelopment, public safety
(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
Recreational 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 three types of funds: governmental, proprietary and fiduciary.
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.
6
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 Position and the Statement of Activities. 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 information such as a statement of cash flows.
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statement because the
resources of those funds are not available to support the City of Palm Desert operations. The accounting
used for fiduciary funds is much like that used for proprietary funds.
THE CITY AS TRUSTEE
Reporting the City’s Fiduciary Responsibilities:
The City is the trustee, or fiduciary, for the Successor Agency to the Palm Desert Redevelopment Agency’s
(Successor Agency) private-purpose trust fund and for certain agency funds held on behalf of developers
and its employees’ retiree service stipend fund. The City’s fiduciary activities are reported in separate
Statements of Net Position, Statement of Changes in Net Position, Statement of Assets and Liabilities, and
Statement of Changes in 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
During the fiscal year ending June 30, 2018, the City’s combined net position decreased $15.30 million
from $808.61 million to $793.31 million. A separate review of the net change in the governmental and
business-type activities is provided for the reader. Our analysis focuses on the net position (Table 1) and
changes in net position (Table 2) of the City’s governmental and business-type activities.
7
2018 2017 2018 2017 2018 2017
Current and restricted assets 344.26$ 349.47$ 6.62$ 5.96$ 350.88$ 355.43$
Capital assets 438.18 449.04 70.60 70.33 508.78 519.37
TOTAL ASSETS 782.44 798.51 77.22 76.29 859.66 874.80
Deferred outflows of resources 12.62$ 9.10$ -$ -$ 12.62$ 9.10$
Long-term liabilities
outstanding 48.49 43.34 1.49 0.50 49.98 43.84
Other liabilities 24.88 25.76 1.01 1.13 25.89 26.89
TOTAL LIABILITIES 73.37 69.10 2.50 1.63 75.87 70.73
Deferred inflows of resources 3.10$ 4.56$ -$ -$ 3.10$ 4.56$
Net position:
Net investment in capital
assets 438.18 449.04 69.11 69.83 507.29 518.87
Restricted 197.36 197.82 - - 197.36 197.82
Unrestricted 83.05 87.09 5.61 4.83 88.66 91.92
TOTAL NET
POSITION 718.59$ 733.95$ 74.72$ 74.66$ 793.31$ 808.61$
TABLE 1
NET POSITION
As of June 30, 2018 and 2017
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
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1,200
2018 2017 2018 2017 2018 2017
Governmental
Activities
BusinessͲType
Activities
Total
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Table 1Ͳ Graph
Total Assets&Liabilities
TotalAssets
TotalLiabilities
8
The City’s governmental activities net position decreased $15.36 million. The City’s net position is made up
of three components: Net investment in capital assets; restricted net position; and unrestricted net position.
For governmental activities, unrestricted net position, which represents the part of net position that can be
used to finance day-to-day operations, accounted for 11.56 percent of the overall total net position.
Unrestricted net position decreased $4.04 million from $87.09 million in 2017 to $83.05 million in 2018. At
first glance, an assumption can be made that the City did not fare as well as last year. However, when you
analyze the figures, the General Fund had a positive net change of $6.38 million. The main reason for the
decrease was the restatement of net position from $733.95 million to $720.87 million, a $13.08 million
decrease. The City implemented GASB No. 75, which required the City to record its net OPEB liability,
which was $4.12 million. In 2017, the City had $9.43 million as a Net OPEB Assets, representing the
difference between the Annual Required Contribution and actual contribution (see Note 18).
The decrease of $0.46 million in restricted net position was due to the following: restricted capital projects
decreased by $0.22 million from $110.16 million in 2017 to $109.94 million in 2018. During the year, capital
restricted funds were expended for street resurfacing, drainage improvements, and street improvements.
Restricted special projects decreased by $0.24 million, the majority of which is attributable to the cost of
maintaining the City’s affordable apartment complexes at a high standard and the cost of the City’s
fire protection services.
Investment in capital assets decreased $10.86 million. The decrease is attributed to current year
depreciation of $12.01 million. The calculation of investment in capital assets includes outstanding debt
used to purchase or construct the City’s capital assets.
The City’s governmental activities total assets and deferred outflow of resources combined decreased
$12.55 million from $807.61 million in 2017 to $795.06 million in 2018. The decrease is mostly attributable
to the $9.43 million decrease in the net OPEB Assets. Other major changes that affected total assets and
deferred outflow combined were the capital assets decrease of $10.86 million and a $3.52 million increase
in deferred outflow of resources which is due to the $2.31 million pension plan deferred outflows
(see Note 8d) and $1.21 million OPEB deferred outflows (see Note 12h).
Total liabilities and deferred inflows combined increased by $2.81 million from $73.66 in 2017 to
$76.47 million in 2018. The increase is due to OPEB liability of $4.12 million discussed above.
The net position of the business-type activities saw a slight increase of $0.06 million, from $74.66 million to
$74.72 million. The main factor for the increase in net position was overall increase in gross revenues which
increased by $0.64 million from the previous year. During the 2017-18 fiscal year, the regional golf market
recognized a 7.4 percent increase in the overall revenue per available golf round. Desert Willow’s dynamic
pricing strategy increased it’s revenue per available round by 11.3 percent.
Total liabilities increased $0.87 million from $1.63 million in 2017 to $2.50 million in 2018. The increase in
debt obligation for the new lease of golf course maintenance equipment (see Note 6) is the major factor for
the increase in total liabilities.
9
2018 2017 2018 2017 2018 2017
REVENUES:
Program Revenues:
Charges for services 24.25$ 22.68$ 9.68$ 8.78$ 33.93$ 31.46$
Operating grants and
contributions 8.56 7.93 - - 8.56 7.93
Capital grants and
contributions 2.44 7.71 0.17 0.60 2.61 8.31
General Revenues:
Property taxes 11.51 10.85 - - 11.51 10.85
Transient occupancy tax 17.30 15.24 - - 17.30 15.24
Sales tax 18.25 18.39 - - 18.25 18.39
Other taxes 3.09 3.15 - - 3.09 3.15
Investment earnings 1.90 1.04 0.07 0.03 1.97 1.07
Gain on sale of capital assets 0.02 - - - 0.02 -
Other revenues 1.57 1.52 0.13 - 1.70 1.52
TOTAL REVENUES 88.89 88.51 10.05 9.41 98.94 97.92
EXPENSES:
General government 18.47 15.71 - - 18.47 15.71
Housing and redevelopment 9.61 10.95 - - 9.61 10.95
Public safety 36.54 34.94 - - 36.54 34.94
Parks, recreation and culture 8.24 9.85 - - 8.24 9.85
Public works 18.35 14.89 - - 18.35 14.89
Interest on long-term debt 0.26 0.27 - - 0.26 0.27
Golf Course-Desert Willow - - 8.76 8.24 8.76 8.24
Office Complex-Parkview - - 0.93 0.89 0.93 0.89
TOTAL EXPENSES 91.47 86.61 9.69 9.13 101.16 95.74
INCREASE (DECREASE ) IN NET
POSITION BEFORE TRANSFERS (2.58) 1.90 0.36 0.28 (2.22) 2.18
Transfers 0.30 0.30 (0.30) (0.30) - -
INCREASE (DECREASE) IN NET POSITION (2.28) 2.20 0.06 (0.02) (2.22) 2.18
BEGINNING NET POSITION, AS RESTATED 720.87 731.75 74.66 74.68 795.53 806.43
ENDING NET POSITION 718.59$ 733.95$ 74.72$ 74.66$ 793.31$ 808.61$
TABLE 2
CHANGES IN NET POSITION
As of June 30, 2018 and 2017
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
10
Table 2- Graph
Changes in Net Position
Governmental Activities
Total revenue (excluding transfers) increased from $88.51 million to $88.89 million. Factors that contributed
to the changes in revenues are as follows:
x Transient occupancy tax increase from $15.24 million in 2017 to $17.30 million in 2018, an increase
of $2.06 million.
x In 2018, the City accounted for $1.90 million in investment earnings compared to $1.04 million in
2017, an increase of $0.86 million.
x The City’s combined general property taxes and sales tax increased by $0.52 million from
$29.24 million in 2017 to $29.76 million in 2018. These increases were offset by:
x A decrease of $5.27 million in capital contributions and grants from $7.71 million in 2017 to
$2.44 million in 2018. In 2017, the Successor Agency made a capital contribution of $3.55 million
to be used for capital expenditures, no such contribution was made in 2018.
Total expenses increased from $86.61 million to $91.47 million, a 5.61 percent increase. The primary
reason for the increase was in the public work function that increased 3.46 million. The increase is attributed
the City spending $4.30 million more on street resurfacing than in the prior year. Additional factors in the
change in amount of expenses for the year include, general government increased $2.76 million, which
was largely due to the City’s additional pension payment of $1.70 million. Public safety increased
$1.60 million attributed to the increase in police costs from $19.83 million to $20.51 million and the increase
in fire protection services from $12.10 million to $13.50 million.
Ͳ
100
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500
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800
2018 2017
GovernmentalActivities
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2018 2017
BusinessͲTypeActivities
BeginningNet
Position
TotalRevenues
EndingNet
Position
TotalExpenses
11
The following schedule represents the net cost of providing services:
Governmental Activities
Net (Expense) Revenue
(In Millions)
Business-type Activities
In the business-type activities, total revenues increased by 6.8 percent from $9.41 million to $10.05 million,
a $0.64 million increase. The overall increase was related to the dynamic pricing structure implemented at
the Desert Willow Golf Resort. Total green fees were $0.72 million more than the previous year.
Desert Willow Golf Resort management continued to utilize a strategic pricing structure, which allowed the
golf resort to retain the course utilization, which optimized the green fee revenue during periods that were
traditionally under-utilized and sold at a discount. The overall rounds mix and play remained consistent with
the previous years.
The Parkview Office Complex revenues increased slightly. The rental market remained soft during the
fiscal year; the tenant mix remained unchanged.
Operating expenses for business-type activities increased by $0.56 million from $9.13 million to
$9.69 million. The increase was directly related to increased golf course rounds, increased interest from a
$1.50 million dollar loan from the City of Palm Desert General Fund, and new golf course equipment lease
of $1.39 million. Both Desert Willow and the City continued to implement effective and efficient methods to
control costs without impacting service.
2018 2017
General government ($13.82) ($11.51)
Housing and redevelopment (1.96) (2.67)
Public safety (25.62) (23.99)
Parks, recreation and culture (4.97) (6.55)
Public works (9.59) (3.30)
Interest on long term debt (0.26) (0.27)
Total ($56.22) ($48.29)
25%
4%
44%
9%
18%
0%
2018
GovernmentalActivities
Net(Expense)Revenue
25%
4%50%
14%6%1%
2017
GovernmentalActivities
Net(Expense)Revenue Generalgovernment
Housingand
redevelopment
Publicsafety
Parks,recreation&
culture
Publicworks
Interestonlong
termdebt
12
THE CITY’S FUNDS
On Page 22, the governmental funds balance sheet is shown. The combined fund balance of
$299.93 million increased from $295.05 million, or 1.65 percent. This total includes the General Fund
balance of $90.37 million, which increased by $6.38 million from the prior year. The City’s General Fund
balance has a non-spendable balance of $10.51 million, committed balance of $59.67 million, assigned
balance of $15.49 million, and $4.70 million of unassigned fund balance. The change in the General Fund’s
balance was due to growth in transient occupancy tax and investment earning. Other major fund balance
changes are noted below:
x The Prop A Fire Tax Special Revenue Fund: The fund balance decreased $0.41 million. The City
transferred $3.67 million to cover the shortage.
x The Housing Asset Fund: The fund balance had a decrease of $0.21 million. The housing asset
fund reimbursed the housing authority for costs associated with improvements to the Authority
owned affordable apartment complexes.
x Measure A Special Revenue Fund: the fund balance increased from $21.55 million to
$21.97 million. Projects budgeted at $29.98 million are at their early stage which resulted in non-
spending of available funds.
x Housing Authority Fund: This fund had a minor decrease of $0.26 million from $20.24 million to
$19.98 million.
x Capital Properties Fund: The fund balance decreased $0.40 million from $69.15 million to
$68.75 million. The decrease was due to the capital project expenditures.
More detailed information about the combined fund balance reserves is presented in Note 9 to the financial
statements.
General Fund Budgetary Highlights
Based upon recommendations from the staff, the City Council revised the budget several times during the
year. Adjustments were made on a monthly basis as City staff requested additional appropriations to cover
the cost of projects that either had change orders for additional work, or were underestimated. At mid-year,
no adjustments were requested as department budgets met current demands. At year-end, budgets were
adjusted for unanticipated approved 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 $60.85 million were $0.06 million more than the
final budgeted revenues of $60.79 million. Sales and transient occupancy taxes continue to be the top two
revenue generators for the City, totaling $36.65 million or 58.58 percent of the total General Fund actual
revenues.
The General Fund actual ending expenditures of $54.47 million were $2.49 million less than the final budget
of $56.96 million. There were changes in the original budget compared to the final budget during the year.
The original expenditure budget was $56.27 million compared to the final budget of $56.96 million, a
$0.69 million increase. An additional $1.70 million was appropriated to reduce the City’s pension liability,
which represents the major change between original budget and final budget.
13
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2018, the City had $508.78 million invested in a broad range of capital assets including land,
streets, bridges, drainage systems, traffic lights, parks, buildings, artwork, vehicles, golf courses and
equipment (See Table 3). This amount represents a net decrease (including additions and deductions) of
$10.59 million over the prior year, due mainly to depreciation.
2018 2017 2018 2017 2018 2017
Land 79.29$ 79.45$ 53.31$ 53.31$ 132.60$ 132.76$
Construction-in-progress 2.51 2.02 - - 2.51 2.02
Buildings and improvements
other than buildings 99.92 105.69 15.67 16.40 115.59 122.09
Machinery and equipment 2.70 2.79 1.62 0.62 4.32 3.41
Infrastructure & right-of-way 253.76 259.09 - - 253.76 259.09
TOTALS 438.18$ 449.04$ 70.60$ 70.33$ 508.78$ 519.37$
TABLE 3
CAPITAL ASSETS AT YEAR-END
For the years ended June 30, 2018 and 2017
TotalActivities
Business-TypeGovernmental
Activities
(NET OF DEPRECIATION, IN MILLIONS)
Ͳ
100
200
300
400
500
600
700
2018 2017 2018 2017 2018 2017
Governmental
Activities
BusinessͲType
Activities
Total
Do
l
l
a
r
s
in
mi
l
l
i
o
n
s
Table3Ͳ Graph
CapitalAssetsatYearͲEnd
(NetofDepreciationinMillions)
Land
ConstructioninProgress
BuildingsandImprovements
Equipment
Infrastructure
Totals
14
This year’s major additions included (in millions):
Street improvements $ 0.44
Park and recreation improvements 0.15
Equipment and software purchases 0.71
Land acquisitions 0.10
$ 1.41
The City’s fiscal year 2019 adopted capital budget calls for an additional $23.39 million to be spent, plus
continuing capital projects of $58.16 million from prior year, with the majority being spent on street,
infrastructure and golf course 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 1g and Note 5 to the financial statements.
Debt
At year-end, the City’s governmental activities had $48.49 million in bonds, claims, compensated absences,
OPEB liability and pension liability versus $43.34 million last year, an increase of $5.15 million as shown in
Table 4. The major increase was the City’s pension liability that grew from $37.55 million to $38.97 million,
which was the result of PERS changing the discount rate from 7.65 percent to 7.15 percent. In addition, a
new GASB standard required cities to report any OPEB liability. The City OPEB liability was $4.12 million.
2018 2017 2018 2017 2018 2017
Compensated absences payable 2.39$ 2.58$ -$ -$ 2.39$ 2.58$
Capital leases - - 1.49 0.50 1.49 0.50
Claims and judgements payable 0.36 0.40 - - 0.36 0.40
Special assessments debt with
government commitment 1.36 1.41 - - 1.36 1.41
Limited Obligation Improvement
bonds 1.29 1.40 - - 1.29 1.40
OPEB liability 4.12 - - - 4.12 -
Pension liability 38.97 37.55 - - 38.97 37.55
TOTALS 48.49$ 43.34$ 1.49$ 0.50$ 49.98$ 43.84$
TABLE 4
OUTSTANDING DEBT AT YEAR-END
For the years ended June 30, 2018 and 2017
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
15
The City was able to meet its current year debt obligation in a timely manner. Bonds that were issued in
prior years have been used to finance various capital projects.
The City’s business-type activities debt increased $0.99 million from $0.50 million to $1.49 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 golf carts and maintenance equipment to maintain a cash flow to operate the
day-to-day activities. The increase in the City’s business-type activities debt was directly related to entering
a new golf course equipment lease in the amount of $1.39 million. The City’s business-type activities were
able to meet their current year debt obligation in a timely manner. More detailed information about the City’s
long-term liabilities is presented in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for fiscal year 2019, management focused three core principles: 1) maintain the
level of service expected by residents, businesses, and visitors; 2) review standards of infrastructure
maintenance and operation and adjust standards to provide quality City facilities in line with budget
considerations, including but not limited to parks, roads, and buildings; and 3) invest in infrastructure and
technology to address deferred maintenance and outdated hardware/software that resulted from necessary
cost-cutting measures in previous years. The following economic factors were considered by management:
x Goals of the strategic plan as top priority.
x Increase in healthcare and retirement costs.
x Increase in police and fire protection services.
The 2019 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 necessary infrastructure
improvements. Copies of the City’s 2018-2019 Financial Plan can be obtained by contacting the City’s
Finance Department or by visiting the City’s website at www.cityofpalmdesert.org.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our residents, 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, please contact the Finance
Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, or
(760) 346-0611.
16
CITY OF PALM DESERT
STATEMENT OF NET POSITION
Component
Unit
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash and investments 176,991,043$ 7,613,487$ 184,604,530$ 120,150$
Receivables:
Accounts 2,350,390 98,972 2,449,362 2,877
Notes 1,369,200 - 1,369,200 -
Accrued interest 6,282,188 - 6,282,188 -
Loans 9,817,074 - 9,817,074 -
Internal balances 2,000,000 (2,000,000) - -
Prepaid costs 192,991 94,446 287,437 16,368
Deposits 15,393,231 - 15,393,231 -
Due from other governments 5,333,143 - 5,333,143 -
Inventories 4,868 199,741 204,609 47,624
Property held for resale 61,516 - 61,516 -
Due from component unit 285,000 608,947 893,947 -
Restricted assets:
Cash with fiscal agent 96,804,305 - 96,804,305 -
Advances to Successor Agency 27,366,140 - 27,366,140 -
Capital assets, not being depreciated 202,902,112 53,304,965 256,207,077 -
Capital assets, net of depreciation 235,281,958 17,300,162 252,582,120 -
TOTAL ASSETS 782,435,159 77,220,720 859,655,879 187,019
DEFERRED OUTFLOWS OF RESOURCES:
Deferred outflows from pensions 11,410,531 - 11,410,531 -
Deferred outflows from OPEB 1,217,465 - 1,217,465 -
Total Deferred Outflows
of Resources 12,627,996 - 12,627,996 -
LIABILITIES:
Accounts payable 7,993,501 787,222 8,780,723 38,922
Accrued liabilities 286,450 52,135 338,585 12,059
Accrued interest 84,239 - 84,239 -
Due to primary government - - - 893,947
Unearned revenue 15,623,162 138,564 15,761,726 79,452
Deposits payable 892,664 27,829 920,493 -
Long-term liabilities:
Due within one year 451,000 562,498 1,013,498 -
Due in more than one year 4,954,009 930,832 5,884,841 -
Net OPEB liability 4,120,584 - 4,120,584 -
Net pension liability 38,965,978 - 38,965,978 -
TOTAL LIABILITIES 73,371,587 2,499,080 75,870,667 1,024,380
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows from pensions 3,054,378 - 3,054,378 -
Deferred inflows from OPEB 49,049 - 49,049 -
Total Deferred Inflows
of Resources 3,103,427 - 3,103,427 -
NET POSITION:
Net investment in capital assets 438,184,070 69,111,797 507,295,867 -
Restricted for:
Special projects 87,404,989 - 87,404,989 -
Capital projects 109,944,375 - 109,944,375 -
Unrestricted (deficit)83,054,707 5,609,843 88,664,550 (837,361)
TOTAL NET POSITION 718,588,141$ 74,721,640$ 793,309,781$ (837,361)$
JUNE 30, 2018
Primary Government
Palm Desert
Recreational
Facilities
Corporation
See Notes to Financial Statements 17
CITY OF PALM DESERT
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2018
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants
Primary Government:
Governmental activities:
General government 18,467,097$ 2,388,260$ 874,490$ 1,386,262$
Housing and redevelopment 9,605,756 7,551,760 - 92,273
Public safety 36,543,050 10,801,436 84,196 35,084
Parks, recreation and culture 8,240,115 821,824 2,211,563 237,136
Public works 18,358,907 2,685,831 5,385,632 691,866
Interest on long-term debt 259,250 - - -
Total governmental activities 91,474,175 24,249,111 8,555,881 2,442,621
Business-type activities:
Desert Willow Golf Course 8,763,220 8,432,273 - 167,670
SewerParkview Office Complex 930,815 1,250,456 - -
Total Business-Type Activities 9,694,035 9,682,729 - 167,670
Total Primary Government 101,168,210$ 33,931,840$ 8,555,881$ 2,610,291$
Component Unit:
Palm Desert Recreational Facilities Corp.2,742,877$ 3,030,343$ -$ -$
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Restatement of Net Position
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
Functions/Programs
See Notes to Financial Statements 18
Net (Expenses) Revenues and Changes in Net Position
Primary Government
Component
Unit
Governmental Business-Type
Activities Activities Total
(13,818,085)$ -$ (13,818,085)$ -$
(1,961,723) - (1,961,723) -
(25,622,334) - (25,622,334) -
(4,969,592) - (4,969,592) -
(9,595,578) - (9,595,578) -
(259,250) - (259,250) -
(56,226,562) - (56,226,562) -
- (163,277) (163,277) -
- 319,641 319,641 -
- 156,364 156,364 -
(56,226,562) 156,364 (56,070,198) -
-$ -$ -$ 287,466$
11,512,243 - 11,512,243 -
17,295,857 - 17,295,857 -
18,245,029 - 18,245,029 -
3,097,521 - 3,097,521 -
1,901,536 74,873 1,976,409 -
1,573,106 131,175 1,704,281 -
17,274 - 17,274 -
300,000 (300,000) - -
53,942,566 (93,952) 53,848,614 -
(2,283,996) 62,412 (2,221,584) 287,466
733,953,668 74,659,228 808,612,896 (1,124,827)
(13,081,531) - (13,081,531) -
720,872,137 74,659,228 795,531,365 (1,124,827)
718,588,141$ 74,721,640$ 793,309,781$ (837,361)$
Palm Desert
Recreational
Facilities
Corporation
See Notes to Financial Statements 19
THIS PAGE INTENTIONALLY LEFT BLANK
20
FUND FINANCIAL STATEMENTS
21
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2018
General
ASSETS:
Pooled cash and investments 79,377,363$ 21,309,404$ 2,718,350$ 8,552,903$
Receivables:
Accounts 1,865,849 ---
Assessments ----
Notes 1,368,000 --1,200
Interest 2,501,225 -- 1,111,702
Loans 14,978 -- 6,420,276
Prepaid costs 154,316 --476
Deposits - 15,393,231 --
Due from other governments 3,611,229 660,745 611,638 -
Due from other funds 3,638,000 -- 4,531,000
Inventories ----
Property held for resale ---61,516
Due from component unit 285,000 ---
Restricted assets:
Cash and investments with fiscal agent --- 22,977,137
Advances to Successor Agency 9,236,000 -- 4,711,140
TOTAL ASSETS 102,051,960$ 37,363,380$ 3,329,988$ 48,367,350$
Liabilities, Deferred Inflows of
Resources and Fund Balances
LIABILITIES:
Accounts payable 4,781,718$ 130$ 1,434,921$ -$
Accrued liabilities 203,839 ---
Unearned revenues 2,198 15,393,231 --
Deposits payable ----
Due to other funds 1,847,200 ---
TOTAL LIABILITIES 6,834,955 15,393,361 1,434,921 -
DEFERED INFLOWS OF RESOURCES:
Unavailable revenue 4,846,457 - -1,052,054
4,846,457 - - 1,052,054
FUND BALANCES:
Nonspendable 10,509,094 --476
Restricted - 21,970,019 1,895,067 47,314,820
Committed 59,666,638 ---
Assigned 15,492,508 - --
Unassigned 4,702,308 - --
Total Fund Balances 90,370,548 21,970,019 1,895,067 47,315,296
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 102,051,960$ 37,363,380$ 3,329,988$ 48,367,350$
Special Revenue Funds
Measure A
Prop A Fire
Tax
Housing
Asset Fund
See Notes to Financial Statements 22
CITY OF PALM DESERT
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Assessments
Notes
Interest
Loans
Prepaid costs
Deposits
Due from other governments
Due from other funds
Inventories
Property held for resale
Due from component unit
Restricted assets:
Cash and investments with fiscal agent
Advances to Successor Agency
TOTAL ASSETS
Liabilities, Deferred Inflows of
Resources and Fund Balances
LIABILITIES:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERED INFLOWS OF RESOURCES:
Unavailable revenue
FUND BALANCES:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Special
Revenue
Funds
Capital
Projects Funds
17,725,742$ 15,718$ 36,233,193$ 165,932,673$
3,932 - 480,609 2,350,390
- - 1,227,632 1,227,632
- - - 1,369,200
33 81,269 2,587,959 6,282,188
- - 3,381,820 9,817,074
- - 1,250 156,042
- - - 15,393,231
- - 449,531 5,333,143
- - 500,000 8,669,000
- - 4,868 4,868
- - - 61,516
- - - 285,000
3,006,404 68,800,391 2,020,373 96,804,305
- - 13,419,000 27,366,140
20,736,111$ 68,897,378$ 60,306,235$ 341,052,402$
144,139$ 142,630$ 1,440,533$ 7,944,071$
73,303 - 9,308 286,450
13,098 - 214,635 15,623,162
527,568 - 365,096 892,664
- - 4,821,800 6,669,000
758,108 142,630 6,851,372 31,415,347
- - 3,807,260 9,705,771
- - 3,807,260 9,705,771
- - 1,250 10,510,820
8,102,515 68,754,748 21,511,957 169,549,126
11,875,488 - 4,876,333 76,418,459
- - 23,258,063 38,750,571
- - - 4,702,308
19,978,003 68,754,748 49,647,603 299,931,284
20,736,111$ 68,897,378$ 60,306,235$ 341,052,402$
Housing
Authority
Capital
Properties
Other
Governmental
Funds
Total
Governmental
Funds
See Notes to Financial Statements 23
THIS PAGE INTENTIONALLY LEFT BLANK
24
CITY OF PALM DESERT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2018
Total fund balance for governmental funds 299,931,284$
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets net of depreciation have not been included as financial resources
in the govenmental fund activity.436,029,572
Deferred outflows related to pension and OPEB related items are not included in the
governmental fund activity:
Pension
Contributions made after the measurement date 5,396,908$
Changes in assumptions 4,911,815
Net Difference between projected and actual earning on plan investments 1,101,808 11,410,531
OPEB
Contributions made after the measurement date 1,217,465
Deferred inflows related to pension and OPEB related items are not included in the
governmental fund activity:
Pension
Changes in assumptions (130,710)
Differences between expected and actual experiences (2,923,668) (3,054,378)
OPEB
Net Difference between projected and actual earning on plan investments (49,049)
Long-term debt, claims and judgements, net OPEB, and net pension liability are not
the governmental fund activity:
Bonds (2,658,000)
Claims and judgments (360,237)
Net OPEB liability (4,120,584)
Net pension liability (38,965,978) (46,104,799)
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due.(84,239)
Unavailable revenues are not reported as revenues in governmental funds and thus
has the effect of decreasing fund balances. For the City as a whole, however, the
collection of these receipts increases the net position in the Statement of Net Position
and results in revenues in the Statement of Activities.8,478,139
Internal service funds are used by management to charge the costs of certain activities,
such as equipment and compensated absences to individual funds. The assets and
liabilities of the internal service fund must be added to the Statement of Net Position.
10,813,615
Net Position of Governmental Activities 718,588,141$
See Notes to Financial Statements 25
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
General
REVENUES:
Taxes 52,936,454$ 2,765,692$ 5,909,280$ -$
Special assessments collected -- 2,237,916 -
Licenses and permits 1,144,404 ---
Intergovernmental revenues 1,443,808 200,450 1,188,743 -
Rental income 161,038 ---
Charges for services 1,659,248 ---
Investment earnings 1,237,562 254,693 21,772 470,234
Fines and forfeitures 149,576 - --
Miscellaneous 509,309 75,000 62,247 45,748
TOTAL REVENUES 59,241,399 3,295,835 9,419,958 515,982
EXPENDITURES:
Current:
General government 17,836,155 ---
Public safety 22,668,601 - 13,476,152 -
Parks, recreation and culture 3,835,946 ---
Public works 5,490,461 2,871,083 --
Housing and redevelopment --- 722,168
Capital outlay 161,225 -19,579 -
Debt service:
Principal retirement ----
Interest and fiscal charges ----
TOTAL EXPENDITURES 49,992,388 2,871,083 13,495,731 722,168
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 9,249,011 424,752 (4,075,773) (206,186)
OTHER FINANNCING SOURCES (USES):
Transfers in 1,610,830 - 3,668,540 -
Transfers out (4,475,837) ---
TOTAL OTHER FINANCING
SOURCES (USES)(2,865,007) - 3,668,540 -
NET CHANGE IN FUND BALANCES 6,384,004 424,752 (407,233) (206,186)
FUND BALANCES - BEGINNING OF YEAR 83,986,544 21,545,267 2,302,300 47,521,482
FUND BALANCES - END OF YEAR 90,370,548$ 21,970,019$ 1,895,067$ 47,315,296$
Special Revenue Funds
Housing
Asset Fund
Prop A Fire
Tax Measure A
See Notes to Financial Statements 26
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANNCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
Special
Revenue
Funds
Capital
Projects
Funds
-$ -$ 295,433$ 61,906,859$
- - 1,207,330 3,445,246
- - 181,645 1,326,049
632,541 - 2,217,162 5,682,704
6,514,594 - - 6,675,632
- - 1,235,573 2,894,821
264,030 640,924 737,677 3,626,892
- - 12,794 162,370
121,443 - 2,072,795 2,886,542
7,532,608 640,924 7,960,409 88,607,115
- - 1,444,947 19,281,102
- - 102,903 36,247,656
- 667,245 1,964,522 6,467,713
- 79,748 3,742,560 12,183,852
7,243,409 - 557,224 8,522,801
10,424 291,221 432,973 915,422
- - 150,000 150,000
- - 260,971 260,971
7,253,833 1,038,214 8,656,100 84,029,517
278,775 (397,290) (695,691) 4,577,598
- - 1,333,982 6,613,352
(536,434) - (1,301,081) (6,313,352)
(536,434) - 32,901 300,000
(257,659) (397,290) (662,790) 4,877,598
20,235,662 69,152,038 50,310,393 295,053,686
19,978,003$ 68,754,748$ 49,647,603$ 299,931,284$
Capital
Properties
Housing
Authority
Other
Governmental
Funds
Total
Governmental
Funds
See Notes to Financial Statements 27
CITY OF PALM DESERT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2018
Net change in fund balances - total governmental funds 4,877,598$
Amounts reported for governmental activities in the statement of activities are
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 depreciation expense.
Capital outlay 915,422$
Gain/(loss) on sale and disposal of capital assets (252,796)
Depreciation (11,558,228) (10,895,602)
Repayment of debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position.150,000
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Net change in accrued interest for the current period 1,721
Net change in claims and judgments for the current period 38,446 40,167
Pension obligation and OPEB expenses are expenditures in the governmental funds,
but reduce the Net Pension Liability and Net OPEB Liability in the statement of net position:
Pension expense 2,402,162
OPEB expense 697,005 3,099,167
Unavailable revenues are not reported as revenues in governmental funds and thus
has the effect of decreasing fund balances. For the City as a whole, however, the
collection of these receipts increases the net position in the Statement of Net Position
and results in revenues in the Statement of Activities.819,946
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities.(375,272)
Change in Net Position of Governmental Activities (2,283,996)$
See Notes to Financial Statements 28
CITY OF PALM DESERT
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2018
Major Fund Other Fund
ASSETS:
CURRENT ASSETS:
Cash and investments 2,803,640 $ 4,809,847 $ 7,613,487$ 11,058,370 $
Receivables:
Accounts 48,119 50,853 98,972 -
Prepaid costs 94,272 174 94,446 36,949
Inventories 199,741 - 199,741 -
Due from component unit (PDRFC)608,947 - 608,947 -
TOTAL CURRENT ASSETS 3,754,719 4,860,874 8,615,593 11,095,319
CAPITAL ASSETS:
Nondepreciable 53,304,965 - 53,304,965 224,011
Depreciable, net 10,749,583 6,550,579 17,300,162 1,930,487
CAPITAL ASSETS, NET 64,054,548 6,550,579 70,605,127 2,154,498
TOTAL ASSETS 67,809,267$ 11,411,453$ 79,220,720$ 13,249,817$
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable 757,794$ 29,428$ 787,222$ 49,430$
Accrued liabilities 52,135 - 52,135 -
Unearned revenues 129,654 8,910 138,564 -
Deposits payable - 27,829 27,829 -
Due to other funds 2,000,000 - 2,000,000 -
Compensated absences - - - 300,000
Capital leases 562,498 - 562,498 -
TOTAL CURRENT LIABILITIES 3,502,081 66,167 3,568,248 349,430
NONCURRENT LIABILITIES:
Compensated absences - - - 2,086,772
Capital leases 930,832 - 930,832 -
TOTAL NONCURRENT LIABILITIES 930,832 - 930,832 2,086,772
TOTAL LIABILITIES 4,432,913 66,167 4,499,080 2,436,202
Net Position:
Net investment in capital assets 62,561,218 6,550,579 69,111,797 2,154,498
Unrestricted 815,136 4,794,707 5,609,843 8,659,117
Total Net Position 63,376,354 11,345,286 74,721,640 10,813,615
Total Liabilities, Deferred Inflows
of Resources, and Net Position 67,809,267$ 11,411,453$ 79,220,720$ 13,249,817$
Parkview
Office
Complex
Total
Enterprise Funds
Governmental
Activities -
Internal
Service Funds
Business-Type Activities -
Enterprise Funds
Desert Willow
Golf Course
See Notes to Financial Statements 29
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2018
Major Fund Other Fund
OPERATING REVENUES:
Fees and rentals 7,098,349$ 1,250,456$ 8,348,805$ -$
Miscellaneous 125,728 5,447 131,175 -
Merchandise sales 1,333,924 -1,333,924 -
TOTAL OPERATING REVENUES 8,558,001 1,255,903 9,813,904 -
OPERATING EXPENSES:
General and administrative 2,405,293 200,410 2,605,703 -
Cost of merchandise 555,763 -555,763 -
Maintenance and operations 4,578,672 367,603 4,946,275 78,934
Depreciation and amortization 1,062,033 362,802 1,424,835 453,019
TOTAL OPERATING EXPENSES 8,601,761 930,815 9,532,576 531,953
OPERATING INCOME (LOSS)(43,760) 325,088 281,328 (531,953)
NONOPERATING REVENUES (EXPENSES)
Interest revenue 16,326 58,547 74,873 139,407
Interest expense (161,459) -(161,459) -
Gain on disposal of capital assets - - -17,274
TOTAL NONOPERATING
REVENUES (EXPENSES)(145,133) 58,547 (86,586) 156,681
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS & TRANSFERS (188,893) 383,635 194,742 (375,272)
CAPITAL CONTRIBUTIONS 167,670 -167,670 -
TRANSFERS OUT -(300,000) (300,000) -
CHANGE IN NET POSITION (21,223) 83,635 62,412 (375,272)
NET POSITION - BEGINNING OF YEAR 63,397,577 11,261,651 74,659,228 11,188,887
NET POSITION - END OF YEAR 63,376,354$ 11,345,286$ 74,721,640$ 10,813,615$
Parkview
Office
Complex
Business-Type Activities - Enterprise Funds
Total
Enterprise Funds
Governmental
Activities -
Internal Service
Funds
Desert Willow
Golf Course
See Notes to Financial Statements 30
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2018
Major
Fund Other Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers 8,980,556$ 1,254,520$ 10,235,076$ -$
Payments to suppliers (7,632,052) (564,471) (8,196,523) (59,181)
Cash paid to employees for services - - - (196,947)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 1,348,504 690,049 2,038,553 (256,128)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Interest paid on loan (50,000) - (50,000) -
Cash received from other funds 1,500,000 - 1,500,000 -
Cash paid to other funds - (300,000) (300,000) -
NET CASH PROVIDED (USED) BY
NONCAPITAL AND RELATED
FINANCING ACTIVITIES 1,450,000 (300,000) 1,150,000 -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (121,834) (11,522) (133,356) (496,066)
Principal paid on leases (405,834) - (405,834) -
Interest paid on leases (111,459) - (111,459) -
Proceeds from sales of capital assets - - - 17,819
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (639,127) (11,522) (650,649) (478,247)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 16,326 58,547 74,873 139,407
Net Cash Provided (Used) by
Investing Activities 16,326 58,547 74,873 139,407
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 2,175,703 437,074 2,612,777 (594,968)
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 627,937 4,372,773 5,000,710 11,653,338
CASH AND CASH EQUIVALENTS -
END OF YEAR 2,803,640$ 4,809,847$ 7,613,487$ 11,058,370$
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:
Operating income (loss)(43,760)$ 325,088$ 281,328$ (531,953)$
Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization 1,062,033 362,802 1,424,835 453,019
Changes in assets and liabilities:
(Increase) decrease in receivables, net 73,626 (21) 73,605 -
(Increase) decrease in prepaid costs (35,825) 297 (35,528) (13,269)
(Increase) decrease in inventories 65,720 - 65,720 -
(Increase) decrease in due
from component unit 356,010 - 356,010 -
Increase (decrease) in accounts payable
and accrued liabilities (122,219) 3,246 (118,973) 33,022
Increase (decrease) in deposits payable - 1,975 1,975 -
Increase (decrease) in unearned revenue (7,081) (3,338) (10,419) -
Increase (decrease) in compensated absences - - - (196,947)
Total Adjustments 1,392,264 364,961 1,757,225 275,825
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 1,348,504$ 690,049$ 2,038,553$ (256,128)$
NONCASH ITEMS:
Capital Contributions 167,670$ -$ 167,670$ -$
Capital Lease 1,399,284 - 1,399,284 -
Governmental
Activities -
Internal Service
Funds
Parkview
Office Complex
Total
Enterprise
Funds
Desert Willow
Golf Course
See Notes to Financial Statements 31
CITY OF PALM DESERT
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2018
Private-Purpose
Trust Fund
Agency
Funds
Assets:
Pooled cash and investments 11,367,398$ 19,038,309$
Receivables:
Accounts 1,875 -
Assessments 53,894,172 -
Accrued interest 15,197 25,781
Prepaid costs - 1,836,915
Due from other governments 69,468 50
Restricted assets:
Cash and investments with fiscal agents 4,682,972 23,556,767
Capital assets:
Capital assets, not being depreciated - 34,933,959
Capital assets, being depreciated - 898,151
Total Assets 70,031,082$ 80,289,932$
Deferred Outflows of Resources:
Deferred charge on refunding 52,612$
Total Deferred Outflows of Resources 52,612$
Liabilities:
Accounts payable -$ 423,159$
Deposits payable 70,031,082 200,000
Long-term liabilities:
Due in one year - 17,210,000
Due in more than one year - 239,474,246
Advances from City of Palm Desert - 22,655,000
Interest payable - 7,442,195
Advances from Housing Authority - 4,711,140
Total Liabilities 70,031,082$ 292,115,740$
Deferred Inflows of Resources:
Deferred charge on refunding 650,958$
Total Deferred Inflows or Resources 650,958$
Net Position:
Held in trust (212,424,154)$
Total Net Position (212,424,154)$
Successor Agency
to the Palm Desert
Redevelopment
Agency Private-
Purpose Trust Fund
See Notes to Financial Statements 32
CITY OF PALM DESERT
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2018
ADDITIONS:
Taxes 31,863,474$
Investment income 292,418
Gain on disposition and transfer of property 1,891,106
Other 125,150
TOTAL ADDITIONS 34,172,148
DEDUCTIONS
Housing and development 3,650,937
Interest 9,295,985
Depreciation 31,622
TOTAL DEDUCTIONS 12,978,544
CHANGES IN NET POSITION 21,193,604
NET POSITION - BEGINNING OF YEAR (233,617,758)
NET POSITION - END OF YEAR (212,424,154)$
Private-Purpose Trust
Fund
Successor Agency to
the Palm Desert
Redevelopment
Agency Private-
Purpose Trust Fund
See Notes to Financial Statements 33
THIS PAGE INTENTIONALLY LEFT BLANK
34
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies
a. Description of the Reporting Entity
The City of Palm Desert was originally incorporated on November 26, 1973, as a
General Law City. In December 1997, Measure LL was enacted following a vote by
Palm Desert residents, 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 with operational responsibility
as the City and provides a financial benefit.
The Palm Desert Housing Authority (Housing Authority) was established by the
City Council in January 1998, and is responsible for the administration of providing
affordable housing in the City. The Housing Authority transactions are reported in the
governmental funds balance sheet as a major fund.
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 Housing Authority and
Financing Authority.
35
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
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, the City has authority to approve the
Corporation’s budget, and the City must approve any debt issued.
Complete financial statements of the Component Unit can be obtained from the City’s
administrative offices.
b. Basis of Presentation:
Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position 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.
36
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
Fund Financial Statements
The accounting system of the City is organized and operated on the basis of separate
funds, each of which is considered to be a separate accounting entity. Each fund is
accounted for by providing a separate set of self-balancing accounts that constitute its
assets, liabilities, deferred inflows of resources, fund equity, revenues and
expenditures/expenses. Funds are organized into three major categories: governmental,
proprietary and fiduciary. An emphasis is placed on major funds within the governmental
and proprietary categories.
A fund is considered major if it is the primary operation fund of the City or meets the
following criteria:
a. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of
resources, 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 plus deferred outflows of resources, liabilities plus deferred inflows of
resources, 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.
37
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (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. Desert Willow Golf Course is operated by a management
company. The discretely presented Component Unit’s fund consists of the Palm Desert
Recreational Facilities Corporation, also operated by a management company.
Internal Service Funds - The Internal Service Funds account for financial transactions
related to replacement of City-owned vehicles and equipment and to fund compensated
absences. These services are provided to other departments or agencies of the City on a
cost reimbursement basis.
Fiduciary Fund Types
Private-Purpose Trust Fund
The Successor Agency to the Palm Desert Redevelopment Agency Private Purpose Trust
Fund is used to account for the activities of the Successor Agency to the Palm Desert
Redevelopment Agency.
Agency Funds
The Agency, Special Assessment and Treasurers 1911 Bond Act 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. Agency funds are custodial in nature and do not involve measurement of
results of operations.
The City’s Retiree Service Stipend Fund is used to account for assets held to pay for the
retiree service stipend.
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.
38
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
The Measure A Special Revenue 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 and Ordinance No. 02-001 of the County of Riverside) it is restricted
for local street and road expenditures only.
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 Housing Asset Fund is used to account for any funds generated from housing assets
of the former Redevelopment Agency to be used for projects that benefit low and moderate
income families.
The Housing Authority Special Revenue Fund is used to account for revenues and
expenditures related to rental units owned by the Housing Authority, established in
January, 1998.
The Capital Properties Capital Projects Fund is used to account for the cost of city owned
properties that will either be sold or for the construction of public facilities, and the proceeds
of bond funds for capital related properties.
Proprietary Fund
The Desert Willow Golf Course Fund is used to account for the fees collected and expenses
incurred in connection with operating the municipal golf course in the City of
Palm Desert.
c. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are recorded
regardless of the measurement focus applied.
On the government-wide Statement of Net Position 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 position (or cost recovery), financial
position and cash flows. All assets, deferred outflows of resources, liabilities and deferred
inflows of resources (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:
39
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
1. All governmental funds utilize a “current financial resources” measurement focus. Only
current financial assets, deferred outflows of resources, current liabilities and deferred
inflows of resources 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 and private purpose trust fund utilize an “economic resources”
measurement focus. Proprietary fund and private purpose trust fund equity are
classified as net position.
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 Position and Statement of Activities, both
governmental and business-like activities are presented using the accrual basis of
accounting. Under the accrual basis of accounting, revenues are recognized when earned
and expenses are recorded when the liability is incurred or economic asset used.
Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and
exchange-like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual
basis of accounting. Under this modified accrual basis of accounting, revenues are
recognized when “measurable and available”. Measurable means knowing or being able
to reasonably estimate the amount. Available means collectible within the current period
or soon enough thereafter to pay current liabilities.
Revenues that are susceptible to accrual include property taxes and special assessments
that are levied for and due for the fiscal year and collected within 60 days after year-end.
Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues are
recorded as governmental fund type revenues when received in cash because they are
not generally measurable until actually received. Revenue from taxpayer assessed taxes,
such as sales taxes, are recognized in the accounting period in which they became both
measurable and available to pay liabilities of the current period. Grants and similar items
are recognized as soon as all eligibility requirements imposed by the provider have been
met. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However debt service expenditures as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is
due.
Interfund activity 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 and private purpose
trust 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.
40
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
Proprietary funds distinguish operating revenues and expenses from non-operating 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
non-operating revenues and expenses.
d. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance
sheet will sometimes report a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to future periods and so will not be recognized as
an outflow of resources (expense/expenditure) until that time. The City has the following
items that qualify for reporting in this category:
Deferred amount on refunding. A deferred amount on refunding results from the
difference in the carrying value of the refunded debt and its reacquisition price. This
amount is deferred and amortized over the shorter of the life of the refunded or
refunding debt.
Deferred outflows related to pensions and OPEB. This amount is equal to employer
contributions made after the measurement date of the net pension liability and net
OPEB liability.
Deferred outflows related to pensions resulting from the difference in projected and
actual earnings on investments of the pension plan fiduciary net position. These
amounts are amortized over five years.
Deferred outflows of resources related to pensions arising from a change in
assumptions. These amounts are amortized over a closed period equal to the average
of the expected remaining service lives of all employees that are provided with
pensions through the plan, which is 3.0 years.
In addition to liabilities, the statement of net position and the governmental funds balance
sheet will sometimes report a separate section for deferred inflows of resources. This
separate financial statement element, deferred inflows of resources, represents an
acquisition of net position that applies to future periods and will not be recognized as an
inflow of resources (revenue) until that time. The City has the following items that qualify
for reporting in this category:
Deferred inflows from unavailable revenue, which arises under a modified accrual
basis of accounting is reported only in the governmental fund balance sheet. The
governmental funds report unavailable revenues from the following sources: rent,
investment income, grants, notes receivables collections and reimbursements. These
amounts are unavailable and recognized as an inflow of resources in the period that
the amounts become available.
41
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
Deferred inflows related to pensions for differences between expected and actual
experience. These amounts are amortized over a closed period equal to the average
of the expected remaining service lives of all employees that are provided with
pensions through the plan, which is 3.0 years.
Deferred inflows from pensions resulting from changes in assumptions. These
amounts are amortized over a closed period equal to the average expected remaining
service lives of all employees that are provided with pensions through the plan, which
is 3.0 years.
Gains and losses related to changes in total OPEB liability and fiduciary net position are
recognized in OPEB expense systematically over time. Amounts are first recognized in
OPEB expense for the year the gain or loss occurs. The remaining amounts are
categorized as deferred outflows and deferred inflows of resources related to OPEB and
are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual
earnings on OPEB plan investments
5 years
All other amounts Expected average remaining service lifetime
(EARL) (5.44 years at June 30, 2017
measurement date)
e. Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted
(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate
the amounts to report as restricted - net position and unrestricted - net position, a flow
assumption must be made about the order in which the resources are considered to be
applied.
It is the City’s practice to consider restricted - net position to have been depleted before
unrestricted - net position is applied.
f. 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 acquisition value at the date of donation.
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.
42
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
Property, plant and equipment of the primary government, as well as the component units,
are depreciated using the straight-line method over the following estimated useful lives:
Buildings 40 years
Improvements other than buildings 20 years
Machinery and equipment 5 to 8 years
Infrastructure 20 to 75 years
g. 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, 2018, proceeds of taxes did not exceed appropriations.
h. Investments
Investments are reported in the accompanying financial statements at fair value. Fair value
is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Changes in fair value
that occur during a fiscal year are recognized as investment income reported for that fiscal
year. Investment income includes interest earnings, changes in fair value, and any gains
or losses realized upon the liquidation, maturity, or sale of investments.
i. 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),
California Asset Management Program (CAMP) and Riverside County Treasurer’s Pooled
Investment Fund.
j. 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 $2,386,772, are reported in the Compensation Benefits Internal Service Fund.
k. Property Held for Resale
The land held for resale is recorded in the Housing Asset Fund as property held for resale
at the lower of cost or market. At June 30, 2018, the cost of the property held for resale for
various housing properties in Palm Desert totaled $61,516.
43
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
l. Inventories, Prepaid Costs and Deposits
Inventory in the amount of $199,741 and $47,624, for the Desert Willow Golf Course
Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities
Corporation (Component Unit), respectively, are reported at lower of cost or market.
Inventory in the amount of $4,868 in the Other Governmental Funds are also reported at
lower of cost or market. Inventory and prepaid costs are 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 Measure A Special Revenue Fund has a deposit in the amount of $15,393,231 with
another governmental agency to pay for future construction of a City project.
m. Property Tax Calendar
Property taxes are assessed and collected each fiscal year according to the following
property tax calendar:
Lien date: January 1
Levy date: July 1 to June 30
Due date: November 1 - 1st Installment
March 1 - 2nd Installment
Delinquent date: December 10 - 1st Installment
April 10 - 2nd Installment
Under California law, property taxes are assessed and collected by the counties up to 1%
of assessed value, plus other increases approved by the voters. The property taxes go into
a pool and are then allocated to the cities based on complex formulas prescribed by state
statutes. The City accrues only those taxes, which are received within 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.
n. 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.
o. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of
resources related to pensions, and pension expense, information about the fiduciary net
position of the District’s California Public Employees’ Retirement System (CalPERS) plans
(Plans) and additions to/deductions from the Plans’ fiduciary net position have been
determined on the same basis as they are reported by CalPERS. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
44
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 1: Summary of Significant Accounting Policies (Continued)
p. Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and the OPEB expense have been
determined by an independent actuary. For this purpose, benefit payments are recognized
when currently due and payable in accordance with the benefit terms.
Generally accepted accounting principles require that the reported results must pertain to
liability and asset information within certain defined timeframes. For this report, the
following timeframes are used:
Valuation Date June 30, 2017
Measurement Date June 30, 2017
Measurement Period June 30, 2016 to June 30, 2017
q. Use of Estimates
The financial statements are prepared in accordance 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, the fair
value of investments, the amounts reported for the net pension liability and related items
(Note 8), the amounts reported for the net pension liability, net OPEB liability and related
items (Note 12), and claims payable (Note 6). Accordingly, actual results could differ from
the estimates.
r. New Accounting Pronouncement – GASB 75
In June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. The Statement establishes new
accounting and financial reporting for OPEB provided to the employees of state and local
governments. Statement No. 75 replaces the requirements of Statements No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other
Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and
Agent Multiple-Employer Plans, for OPEB.
GASB Statement No. 75 is effective for periods beginning after June 15, 2017 and was
implemented by the City for the fiscal year ending June 30, 2018.
Note 2: Cash and Investments
As of June 30, 2018, cash and investments were reported in the accompanying financial
statements as follows:
Governmental activities 273,795,348$
Business-type activities 7,613,487
Component unit 120,150
Fiduciary funds 58,645,446
340,174,431$ Total cash and investments
45
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 2: Cash and Investments (Continued)
Cash and investments at June 30, 2018, consisted of the following:
Primary Government
Demand accounts (2,812,107)$
Petty cash 22,750
Investments 284,198,192
Total cash and investments - Primary Government 281,408,835$
Component Unit
Demand accounts 120,150$
Fiduciary Funds
Demand accounts 17,688,778$
Pooled with primary government 11,367,398
Investments 29,589,270
Total cash and investments - Fiduciary Funds 58,645,446$
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, 2018, the carrying amount of the deposits was $26,364,219, and the bank balance
was $28,382,756. The $2,018,537 difference represents outstanding checks, deposits in transit
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 $250,000 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.
46
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 2: Cash and Investments (Continued)
Investments
Under provision of the City’s investment policy and in accordance with the
California Government Code, the following investments are authorized:
x United States Treasury bills, notes, bonds or certificates of indebtedness
x United States government-sponsored agency obligations, participations or other
instruments
x Banker’s Acceptances issued by commercial banks
x Commercial Paper issued by general corporations
x 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
x Time Certificates of Deposit issued by qualified public depositories.
x Repurchase Agreements sold by authorized brokers
x 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
x Money Market Mutual Funds that are registered with the SEC under the Investment
Act of 1940
x State of California Local Agency Investment Fund (LAIF) that is managed by the
State Treasurer’s Office
x Structured Notes in the form of callable securities or “STRIPS” issued by the
United States Treasury, Federal Agencies or government-sponsored enterprises
x 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.
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), Fitch, 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 United States Government and Federal Agency securities (the quality of
United States 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 rating by Standard and Poor’s, Fitch and Moody’s as of year-end for each
investment type.
47
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 2: Cash and Investments (Continued)
Primary Government
Investment Type
Total as of
June 30, 2018
Minimum
Legal
Rating Aaa AAA Other Unrated
California Local Agency
Investment Fund 900,544$ N/A -$ -$ -$ 900,544$
California Asset Management
Program 58,259,364 N/A - 58,259,364 - -
Riverside County Treasurer's
Pooled Investment Fund 68,385,716 N/A 68,385,716 - - -
Medium-Term Corporate Notes 7,466,985 A 1,968,624 - 5,498,361 -
Commercial Paper 73,420,540 A1/P1 - - 73,420,540 -
Held by Fiscal Agent:
Money Market Deposit Account 73,931,314 N/A - - - 73,931,314
California Local Agency
Investment Fund 1,833,729 N/A - - - 1,833,729
Total 284,198,192$ 70,354,340$ 58,259,364$ 78,918,901$ 76,665,587$
The ratings for the “Other” category above are as follows:
Investment Type Aa P-1 Total
Medium-Term Corporate Notes 5,498,361$ -$ 5,498,361$
Commercial Paper - 73,420,540 73,420,540
Total 5,498,361$ 73,420,540$ 78,918,901$
48
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 2: Cash and Investments (Continued)
Fiduciary Funds
Investment Type
Total as of
June 30, 2018
Minimum
Legal
Rating Aaa AAA Unrated
California Local Agency
Investment Fund 701$ N/A -$ -$ 701$
California Asset
Management Program 5,492 N/A - 5,492 -
Riverside County Treasurer's
Pooled Investment Fund 53,339 N/A 53,339 - -
Investment in City Bonds -
Successor Agency RDA 1,290,000 N/A - - 1,290,000
Held by Fiscal Agent:
Money Market Deposit Accounts
Successor Agency RDA 23,556,767 N/A - - 23,556,767
Money Market Deposit Accounts
Assessment District 2,128,077 N/A - - 2,128,077
California Local Agency
Investment Fund -
Assessment District 2,554,894 N/A - - 2,554,894
Total 29,589,270$ 53,339$ 5,492$ 29,530,439$
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, 2018, none of the City’s deposits or investments were exposed to custodial
credit risk.
49
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 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, 2018, in
accordance with GASB Statement No. 40, if the City has invested more than 10% of its total
investments in any one issuer then they are exposed to concentration of credit risk. The City is
not invested in any one issuer that is more than 10% of its total investments.
The City’s Investment policy imposes the following restrictions on the maximum percentage it
can invest in a single type of investment.
Issuer
Portfolio
Maximum
Single Issuer
Maximum
United States Treasury Bills, Notes, Bonds 100% N/A
United States Government-Sponsored Agency
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% 10%
Money Market Mutual Funds 20% N/A
Local Agency Investment Fund (LAIF) $50M/Acct N/A
Structured Notes (STRIPS) 20% N/A
Local Government Investment Pools 75% N/A
N/A - Not Applicable
The City’s policy is more conservative than state law, which has no issuer concentration limits
on federal agency debt.
Interest Rate Risk
The City’s investment policy limits investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates. The City’s investment policy states
that the City shall not invest in securities with maturities exceeding five years and the
weighted-average maturity of the City portfolio shall not exceed 540 days. The City has elected
to use the segmented time distribution method of disclosure for its interest rate risk.
50
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 2: Cash and Investments (Continued)
As of June 30, 2018, the City had the following investments and maturities:
Primary Government
Less Than 6 months - 1 year -Over Fair
6 months 1 year 3 years 3 years Value
Investment Fund 900,544$ -$ -$ -$ 900,544$
Management Program 58,259,364 - - - 58,259,364
Pooled Investment Fund 68,385,716 - - - 68,385,716
Agency Securities - - - - -
Medium-Term Corporate Notes 5,498,361 - 1,968,624 - 7,466,985
Commercial Paper 58,652,890 14,767,650 - - 73,420,540
Held by Fiscal Agent:
Money Market Deposit Accounts 73,931,314 - - - 73,931,314
California Local Agency
Investment Fund 1,833,729 - - - 1,833,729
Total Investments 267,461,918$ 14,767,650$ 1,968,624$ -$ 284,198,192$
Investment Type
Riverside County Treasurer's
U.S. Government Sponsored
California Local Agency
California Asset
Fiduciary Funds
Less Than 6 months - 1 year -Over Fair
6 months 1 year 3 years 3 years Value
Investment Fund 701$ -$ -$ -$ 701$
Management Program 5,492 - - - 5,492
Riverside County Treasurer's
Pooled Investment Fund 53,339 - - - 53,339
Successory Agency RDA 107,000 - 314,000 869,000 1,290,000
Held by Fiscal Agent:
Money Market Deposit Accounts -
Successory Agency RDA 23,556,767 - - - 23,556,767
Money Market Deposit Accounts -
Assessment District 2,128,077 - - - 2,128,077
LAIF - Assessment District 2,554,894 - - - 2,554,894
Total Investments 28,406,270$ -$ 314,000$ 869,000$ 29,589,270$
Investment Type
California Asset
Investment in City Bonds -
California Local Agency
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.
51
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 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 same-day
wire transfers must be made by 11:00 a.m. that day. Fair value of the Pool is determined by
the fair value per share of the Pool’s underlying portfolio.
Investment in Riverside County Treasurer’s Pooled Investment Fund
The City is a voluntary participant in the Riverside County Treasurer’s Pooled Investment Fund
(Pooled Fund). 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 that the Riverside County Treasurer’s Office has provided for the entire Pooled Fund
(in relation to the amortized cost of that portfolio). The balance available for withdrawal is based
upon the accounting records that the Riverside County Treasurer’s Office maintains, which are
recorded on an amortized cost basis.
Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the relative inputs used to
measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets (Level 1 measurements) and the lowest
priority to unobservable inputs (Level 3 measurements).
The three levels of the fair value hierarchy are described as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical
assets in active markets that the City has the ability to access.
Level 2: Inputs to the valuation methodology include:
x Quoted prices for similar assets in active markets;
x Quoted prices for identical or similar assets in inactive markets;
x Inputs other than quoted prices that are observable for the asset;
x Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
52
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 2: Cash and Investments (Continued)
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair
value measurement. Unobservable inputs reflect the City’s own assumptions
about the inputs market participants would use in pricing the asset
(including assumptions about risk). Unobservable inputs are developed based on
the best information available in the circumstances and may include the City’s
own data.
The asset’s level within the hierarchy is based on the lowest level of input that is significant to
the fair value measurement. Valuation techniques used need to maximize the use of
observable inputs and minimize the use of unobservable inputs.
The determination of what constitutes observable requires judgment by the City’s
management. City management considers observable data to be that market data which is
readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and
provided by multiple independent sources that are actively involved in the relevant market.
The categorization of an investment within the hierarchy is based upon the relative observability
of the inputs to its fair value measurement and does not necessarily correspond to City
management’s perceived risk of that investment.
The methods described may produce a fair value calculation that may not be indicative of net
realizable value or reflective of future fair values. The use of different methodologies or
assumptions to determine the fair value of certain financial instruments could result in a
different fair value measurement at the reporting date.
When available, quoted prices are used to determine fair value. When quoted prices in active
markets are available, investments are classified within Level 1 of the fair value hierarchy.
When quoted prices in active markets are not available, fair values are based on evaluated
prices received by City’s asset manager from third party service provider.
The following is a description of the recurring valuation methods and assumptions used by the
City to estimate the fair value of its investments.
For a large portion of the City’s portfolio, the City’s custodian applies their leveling methodology
across all securities in a specific sector (i.e. U.S. Government Sponsored
Agency Securities). Inputs to their pricing models are based on observable market inputs in
active markets.
The Successor Agency Former RDA’s investment in City bonds is not tradable and is
categorized in Level 3. When valuing Level 3 securities, the inputs or methodology are not
necessarily an indication of the risks associated with investing in those securities. Changes in
valuation techniques may result in transfers into or out of an assigned level within the disclosure
hierarchy.
53
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 2: Cash and Investments (Continued)
Primary Government
Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Medium-Term Corporate Notes -$ 7,466,985$ -$ 7,466,985$
Commercial Paper - 73,420,540 - 73,420,540
Negotiable Certificates of Deposit - - - -
Total Leveled Investments -$ 80,887,525$ -$ 80,887,525
California Local Agency Investment Fund*900,544
California Asset Management Program*58,259,364
Pooled Investment Fund*68,385,716
Held by Fiscal Agent:
Money Market Deposit Accounts*73,931,314
California Local Agency Investment Fund* 1,833,729
Total Investment Portfolio 284,198,192$
Investment Type
Riverside County Treasurer's
Fiduciary Funds
Quoted Observable Unobservable
Prices Inputs Inputs
Level 1 Level 2 Level 3 Total
Investment in City Bonds -
-$ -$ 1,290,000$ 1,290,000$
Total Leveled Investments -$ -$ 1,290,000$ 1,290,000$
California Local Agency Investment Fund*701
California Asset Management Program*5,492
Pooled Investment Fund*53,339
Held by Fiscal Agent:
Money Market Deposit Accounts* -
Successor Agency Former RDA 23,556,767
Money Market Deposit Accounts* -
Assessment District 2,128,077
LAIF* - Assessment District 2,554,894
Total Investment Portfolio 29,589,270$
* Not subject to fair value measurements
Investment Type
Riverside County Treasurer's
Successor Agency Former RDA
54
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 3: Receivables
Primary Government’s Governmental Funds
Notes and Loans Receivable:
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were 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
began 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, 2018, the receivable balance was $1,368,000.
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. As of June 30, 2018, the total
receivable from the Highlands Deferral Loan Program was $14,978.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have
been transferred to the Housing Asset Fund as the successor housing entity. The Housing
Asset Fund has a loan receivable for the construction of a multi-family affordable housing
development dated June 14, 2001, with a balance of $6,419,855 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 Housing Asset Fund has $421 in home improvement loans and an additional notes
receivable of $1,200. Payments of interest and principal are due monthly on these loans.
The Community Development Block Grant Special Revenue Fund has $15,613 in a home
improvement loan.
On August 28, 2008 the City Council approved through resolution the Energy Independence
Program (EIP), which is supported by Assembly Bill AB811. The EIP program allowed the City
to create the funding mechanism to assist the residents and businesses entering into a loan
agreement with the City and providing the money for the borrowers to acquire and install energy
efficient improvements. Assembly Bill AB811 allows the City to lien the properties through
annual property tax assessments for a period not to exceed 20 years. To date,
279 residents and business owners entered into loan agreements with the City and have
completed their improvements through the EIP program, as of June 30, 2018, 105 loans have
been repaid. The loans are payable in two annual installments for a period of 5 years to
20 years at an interest rate of 7% annually. On June 30, 2018, the outstanding loans receivable
through the EIP Program was $3,366,207.
55
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 3: Receivables (Continued)
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have
been transferred to the Palm Desert Housing Authority as the successor housing entity. The
Housing Authority has loans for several other projects, all of which are secured by a deed of
trust. A valuation allowance equal to the loan balance has been recognized since there is a
significant possibility that these loans will either become uncollectible or forgiven by the
Housing Authority at a future date if all the terms of the loans have been met.
Detailed information for these loans is as follows:
Loan
Balance Interest Maturity Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Self-Help Housing
Program
429,000$ 7.25% 30 years
or 2024
Deed of Trust Loan balance and interest due
upon maturity, unpaid balance of
loan or interest will bear an
interest rate of 12%.
Home Improvement
Loans (1)
340,692$ N/A N/A Deed of Trust
Loan ispayable upon c hange or
transfer of title, refinancing or
upon the death of the borrower.
Restrictive covenants are placed
against property to maintain
affordability for up to 45 years in
exchange for favorable loan
terms.
Portola Palms
Mobilehome Park
104,865$ 3.00% 30 years
from date
of loan
Deed of Trust Loan balance and interest will be
forgiven at maturity if debtor does
not breach the terms and
conditions of either the unit
regulatory agreement or note.
Desert Rose (1) 2,452,457$ 3.00% 30-45
years*
from date
of loan
Deed of Trust Loan will be forgiven at maturity
unless the debtor is in violation of
the unit regulatory agreement or
the deed of trust.
Falcon Crest (1) 5,649,429$ 3.00% 30-45
years*
from date
of loan
Deed of Trust Loan is payable upon change or
transfer of title, refinancing or
upon the death of the borrower.
Acquisition,
Rehabilitation, Resale
190,510$ 3.00% 30-45
years
from date
of loan
Deed of Trust
Assignment of
Rent
Loan is payable upon change or
transfer of title, refinancing or
upon the death of the borrower.
Restrictive covenants are place
against property to maintain
affordability from up to 45 years
in exchange for favorable loan
terms.
* All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive covenant.
(1) Portion of deferred loans are from funding sources other than Housing Authority.
56
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 4: Interfund Receivables, Payable and Transfers
Due To/From Other Funds
The composition of interfund balances as of June 30, 2018, was as follows:
Due To Due From Amount
General Fund Other Governmental Funds 2,138,000$
Desert Willow Golf Course 1,500,000
Housing Asset Fund General Fund 1,847,200
Other Governmental Funds 2,683,800
Other Governmental Funds Desert Willow Golf Course 500,000
8,669,000$
The General Fund advanced $2,138,000 to the Energy Independence Special Revenue Fund
to payoff the bonds used to fund energy efficiency and loaned $1,500,000 to Desert Willow
Golf Course to fund the daily operations, including the daily operations of the restaurant.
The Housing Asset Fund amounts are related to the advances due from the Successor Agency
(former Redevelopment Agency) per AB 1484.
The Golf Capital Projects Fund advanced $500,000 to Desert Willow Golf Course for operations
during the construction phase of the clubhouse and kitchen expansion.
Due To/From Component Unit
Due From
Component
Unit
Major Funds:
General Fund 285,000$
Desert Willow Golf Course 608,947
893,947$
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 operation.
57
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 4: Interfund Receivables, Payable and Transfers (Continued)
Interfund Transfers
The composition of interfund transfers as of June 30, 2018, was as follows:
Transfers Out General Fund
Prop A Fire Tax
Special
Revenue Fund
Other
Governmental
Funds Totals
General Fund -$ 3,668,540$ 807,298$ 4,475,838$
Housing Authority
Special Revenue
Fund 9,750 - 526,684 536,434
Other
Governmental
Funds 1,301,080 - - 1,301,080
Enterprise Fund
Parkview Office Complex 300,000 - - 300,000
Totals 1,610,830$ 3,668,540$ 1,333,982$ 6,613,352$
Transfers In
Transfers are used to:
1. Transfer revenues to provide for capital projects.
2. Transfer revenues to provide for additional resources to pay for expenditures.
3. Transfer to cover future cost of assets.
58
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 5: Capital Assets
A summary of changes in capital assets at June 30, 2018, was as follows:
Primary Government – Governmental Activities
Balance at
June 30, 2017 Transfers Additions Deletions
Balance at
June 30, 2018
Capital assets, not being
depreciated:
Land 79,452,532$ -$ 85,097$ (248,680)$ 79,288,949$
Right-of-way 121,078,691 - 16,954 - 121,095,645
Construction-in-progress 1,885,789 (38,256) 445,974 - 2,293,507
130,668 - 93,343 - 224,011
Total capital assets, not
being depreciated 202,547,680 (38,256) 641,368 (248,680) 202,902,112
Buildings 144,174,975 - - - 144,174,975
60,140,409 - 154,567 (24,699) 60,270,277
Machinery and equipment 10,478,840 38,256 212,830 (155,589) 10,574,337
Infrastructure 241,725,688 - - - 241,725,688
6,217,457 - 402,723 (255,442) 6,364,738
Total capital assets,
being depreciated 462,737,369 38,256 770,120 (435,730) 463,110,015
Buildings (60,568,116) - (3,499,729) - (64,067,845)
(38,060,540) - (2,418,434) 20,583 (40,458,391)
Machinery and equipment (9,667,904) - (295,470) 155,589 (9,807,785)
Infrastructure (103,715,190) - (5,344,595) - (109,059,785)
(4,236,129) - (453,019) 254,897 (4,434,251)
(216,247,879) - (12,011,247) 431,069 (227,828,057)
Capital assets, being
depreciated, net 246,489,490 38,256 (11,241,127) (4,661) 235,281,958
Capital assets, net -
Governmental Activities 449,037,170$ -$ (10,599,759)$ (253,341)$ 438,184,070$
Equipment - Internal
service fund
Total accumulated
depreciation
Internal Service Fund -
Construction-in-progress
Capital assets,
being depreciated:
Improvements other
than buildings
Equipment - Internal
service fund
Less accumulated
depreciation for:
Improvements other
than buildings
59
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 5: Capital Assets (Continued)
A summary of changes in capital assets at June 30, 2018, was as follows:
Primary Government – Business-Type Activities
Balance at
July 1, 2017 Additions Deletions
Balance at
June 30, 2018
Land 53,304,965$ -$ -$ 53,304,965$
Total capital assets, not being depreciated 53,304,965 - - 53,304,965
Buildings and improvements 27,340,012 159,863 - 27,499,875
Machinery and equipment 6,630,388 1,540,446 (1,547,296) 6,623,538
Total capital assets, being depreciated 33,970,400 1,700,309 (1,547,296) 34,123,413
Buildings and improvements (10,939,629) (890,925) - (11,830,554)
Machinery and equipment (6,006,083) (533,910) 1,547,296 (4,992,697)
Total capital assets being depreciated, net 17,024,688 275,474 - 17,300,162
Capital assets, net - Business-Type Activities 70,329,653$ 275,474$ -$ 70,605,127$
1,547,296 (16,823,251)
Capital assets, not being depreciated:
Capital assets, being depreciated:
Less accumulated depreciation for:
Total accumulated depreciation (16,945,712) (1,424,835)
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General government 2,085,099$
Housing and redevelopment 1,706,242
Public safety 107,145
Public works 5,891,456
Parks, recreation and culture 1,768,286
Depreciation expenses for internal service funds is charged to
various functions based on usage of capital assets 453,019
Total depreciation expense - governmental activities 12,011,247$
Business-Type Activities:
Parkview Office complex 362,802$
Desert Willow Golf Course 1,062,033
Total depreciation expense - business-type activities 1,424,835$
60
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 6: Long-Term Liabilities
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2018.
Primary Government – Governmental Activities
Balance
June 30, 2017 Additions Reductions
Balance
June 30, 2018
Due Within
One Year
Special assessment debt
with government
commitment 1,410,000$ -$ (42,000)$ 1,368,000$ 44,000$
Limited obligation
improvement bonds 1,398,000 - (108,000) 1,290,000 107,000
Claims and judgments
payable 398,683 367,025 (405,471) 360,237 -
Compensated absences
payable 2,583,719 1,309,296 (1,506,243) 2,386,772 300,000
Total 5,790,402$ 1,676,321$ (2,061,714)$ 5,405,009$ 451,000$
Debt service payments for the special assessment debt with government commitment, tax
allocation bonds and notes payable are made from debt service funds and a special revenue
fund.
The City historically allocates costs to liquidate liabilities for compensated absences and
pension liability based on the allocation of the employees earning the respective benefits and
their respective payroll expense to various fund across the City.
Primary Government – Business-type Activities
Balance
June 30, 2017 Additions Reductions
Balance
June 30, 2018
Due Within
One Year
Capital leases 499,881$ 1,399,284$ (405,835)$ 1,493,330$ 562,498$
Special Assessment Debt with Government Commitment
Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement
Bonds, Series 2006
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured
on the property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential
obligation to provide additional funds to pay the debt service, therefore these bonds are
reported as special assessment debt with government commitment. Bond maturities begin
September 2, 2007, and continue annually through 2036. The interest rates of the bonds range
from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record of the bonds
and the City does not own the constructed assets.
61
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 6: Long-Term Liabilities (Continued)
The future debt service requirements on the Highlands Undergrounding Assessment District
No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:
Year Ending
June 30, Principal Interest Total
2019 44,000$ 68,895$ 112,895$
2020 47,000 66,653 113,653
2021 49,000 64,265 113,265
2022 52,000 61,727 113,727
2023 54,000 59,037 113,037
2024-2028 315,000 249,650 564,650
2029-2033 404,000 157,899 561,899
2034-2037 403,000 42,874 445,874
Total 1,368,000$ 771,000$ 2,139,000$
Limited Obligation Bonds
Limited Obligation Improvement Bonds Series 2009A (Taxable)
On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds
Series 2009A (Taxable). The proceeds of the Bonds were used to fund the City’s Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a
bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds
equal to par value.
The Series 2009A (Taxable) bonds consist of $2,015,000 Serial Bonds with interest at
3% payable semiannually on September 2 and March 2. Bond maturities commenced
September 2, 2010, and continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series
2009A (Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2019 63,000$ 21,825$ 84,825$
2020 64,000 19,920 83,920
2021 58,000 18,090 76,090
2022 59,000 16,335 75,335
2023 61,000 14,535 75,535
2024-2028 318,000 44,220 362,220
2029-2030 136,000 4,050 140,050
Total 759,000$ 138,975$ 897,975$
62
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 6: Long-Term Liabilities (Continued)
Limited Obligation Improvement Bonds Series 2009B (Taxable)
On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds
Series 2009B (Taxable). The proceeds of the Bonds were used to fund the City’s Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a
bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds
equal to par value.
The Series 2009B (Taxable) bonds consist of $1,136,000 Serial Bonds with interest at
3% payable semiannually on September 2 and March 2. Bond maturities commenced
September 2, 2010, and continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds
Series 2009B (Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2019 44,000$ 15,270$ 59,270$
2020 45,000 13,935 58,935
2021 43,000 12,615 55,615
2022 45,000 11,295 56,295
2023 46,000 9,930 55,930
2024-2028 219,000 29,235 248,235
2029-2030 89,000 2,715 91,715
Total 531,000$ 94,995$ 625,995$
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, 2018, total estimated workers’ compensation
and general liability claims payable, including a provision for incurred but not reported claims,
were $141,272 and $218,965, respectively, for a total claims and judgments payable of
$360,237.
Changes in claims liabilities during the past two years are as follows:
June 30, 2017 June 30, 2018
Claims payable - Beginning of year 324,332$ 398,683$
Incurred claims (including IBNR) and
changes in estimates 503,647 367,025
Claims payments (429,296) (405,471)
Claims payable - End of year 398,683$ 360,237$
63
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 6: Long-Term Liabilities (Continued)
Business-type Activities – Capital Leases
Obligations under capital leases are as follows:
De Lange Landen Public Finance LLC - The present value of the minimum
lease payment on the Club Car cart fleet equipment was capitalized at $976,366
using an interest rate of 2.99%. Lease is payable in 48 months, commencing on
October 1, 2014; scheduled in 24 periods during the months of February through
July of each year of the lease. Payments are $33,671. There are no payments
scheduled from August through January of each year. Interest accrues each
month. The lease agreement was executed on August 11, 2014.274,175$
GPSI Leasing, LLC - The present value of the minimum lease payment on the
GPSI Visage Golf Cart GPS System was capitalized at $303,530 using an
interest rate of 16.66%. On December 27, 2013 GPSI lease was amended to
extend for an additional 31 months and lower the payment to $7,044. The
amended lease was payable in 48 monthly installments of $7,044 beginning
January 1, 2014. On August 4, 2017 GPSA lease was amended to extend the
initial term of the lease to expire on December 26, 2018. All other attributes of
the original lease as amended on December 27, 2013 remained the same.19,650
PNC Equipment Finance LLC -
The present value of the minimum lease
payment on the Toro golf course maintenance equipment was capitalized at
$1,399,284 using an interest rate of 2.95%. Lease is payable in 60 monthly
installments of $25,078 beginning on October 1, 2017. The lease was executed
on June 21, 2017.1,199,505
Present value of net minimum lease payments 1,493,330
Less: current portion (562,498)
930,832$
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, 2018:
Year Ending Minimum Lease
June 30, Payments
2019 620,468$
2020 300,933
2021 300,933
2022 300,933
2023 75,233
Total 1,598,500
Less: amounts representing interest (105,170)
Present value of net minimum lease payments 1,493,330$
The assets acquired through capital lease are as follows:
Machinery and equipment 2,878,011$
Less: accumulated depreciation (1,634,085)
1,243,926$
64
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 7: Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan, available to all City employees, permits them to
defer a portion of their salary until future years. The deferred compensation is not available to
employees until termination, retirement, death or unforeseeable emergency. Pursuant to
changes in August 1996, of IRC Section 457, in January 1997, the City established a trust in
which all assets held by Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement
Corporation (ICMA) were placed. The City does not have fiduciary responsibility for the plan
assets held by NRS and ICMA. The assets, all property and rights purchased with such
amounts and all income attributable to such amounts are held in trust for the exclusive benefit
of the participants and the beneficiaries. The assets are no longer the property of the City, and
as such, are no longer subject to the claims of the City’s general creditors. As a result, the
assets in the amount of $15,438,281 held by NRS and ICMA of the 457 Plan are not reflected
in the City’s financial statements.
Note 8: Pension Plan
a. General Information about the Pension Plan:
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s
Miscellaneous Plan, agent multiple-employer defined benefit pension plans administered
by the California Public Employees’ Retirement System (CalPERS), which acts as a
common investment and administrative agent for its participating member employers.
Benefit provisions under the Plan are established by State statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plan
regarding benefit provisions, assumptions and membership information that can be found
on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. All members are eligible for non-duty disability benefits after
10 years of service. The death benefit is one of the following: the Basic Death Benefit, the
1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living
adjustments for the plan are applied as specified by the Public Employees’ Retirement
Law.
The Plan’s provisions and benefits in effect at June 30, 2018, are summarized as follows:
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service
Benefit payments monthly for life monthly for life
Retirement age 50-67 52-67
Monthly benefits, as a % of eligible compensation 2.0% - 2.7% 1.0% - 2.5%
Required employee contribution rates 7%-8%6.25%
Required employer contribution rates 35.067%35.067%
65
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 8: Pension Plan (Continued)
Employees Covered
At June 30, 2018, the following employees were covered by the benefit terms for all Plans:
Inactive employees or beneficiaries currently receiving benefits 149
Inactive employees entitled to but not yet receiving benefits 75
Active employees 111
Total 335
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the
employer contribution rates for all public employers be determined on an annual basis by
the actuary and shall be effective on the July 1 following notice of a change in the rate.
Funding contributions for both Plans are determined annually on an actuarial basis as of
June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary
to finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability. The City is required to contribute the
difference between the actuarially determined rate and the contribution rate of employees.
b. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less
the pension plan’s fiduciary net position. The net pension liability of Plan is measured as
of June 30, 2017, using an annual actuarial valuation as of June 30, 2016 rolled forward to
June 30, 2017 using standard update procedures. A summary of principal assumptions
and methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2016 actuarial valuations were determined using
the following actuarial assumptions:
Valuation date June 30, 2016
Measurement date June 30, 2017
Actuarial cost method Entry age normal
Actuarial assumptions:
Discount rate 7.15%
Inflation 2.75%
Payroll Growth 3.00%
Projected Salary Increase
Investment Rate of Return
Mortality rate table *
Varies by Entry Age and Service
7.50 Net of Pension Plan Investment and Administrative
Expenses; includes Inflation
Derived using CalPERS' membership data
for all funds
All other actuarial assumptions used in the June 30, 2016 valuation were based on the
results of an actuarial experience study for the period from 1997 to 2011, including updates
to salary increase, mortality and retirement rates. The Experience Study report can be
obtained at the CalPERS website under Forms and Publications.
66
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 8: Pension Plan (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15% for the Plan. To
determine whether the municipal bond rate should be used in the calculation of a discount
rate for the plan, CalPERS stress tested plans that would most likely result in a discount
rate that would be different from the actuarially assumed discount rate. Based on the
testing of the Plans, the tests revealed the assets would not run out. Therefore, the current
7.15% discount rate is appropriate and the use of the municipal bond rate calculation is not
deemed necessary. The long term expected discount rate of 7.15% is applied to all plans
in the Public Employees Retirement Fund (PERF). The stress test results are presented in
a detailed report called “GASB Crossover Testing Report” that can be obtained from the
CalPERS website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using
a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both
short-term and long-term market return expectations as well as the expected pension fund
cash flows. Such cash flows were developed assuming that both members and employers
will make their required contributions on time and as scheduled in all future years. Using
historical returns of all the funds’ asset classes, expected compound (geometric) returns
were calculated over the short-term (first 10 years) and the long-term (11-60 years) using
a building-block approach. Using the expected nominal returns for both short-term and
long-term, the present value of benefits was calculated for each fund. The expected rate
of return was set by calculating the single equivalent expected return that arrived at the
same present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. The expected rate of return was then set equivalent to the single
equivalent rate calculated above and rounded down to the nearest one quarter of one
percent.
The table below reflects the long-term expected real rate of return by asset class. The rate
of return was calculated using the capital market assumptions applied to determine the
discount rate and asset allocation. The target allocation shown was adopted by the
CalPERS Board effective on July 1, 2014.
Asset Class
New Strategic
Allocation
Real Return
Years 1 - 10 (1)
Real Return
Years 11+ (2)
Global Equity 47.00% 4.90% 5.38%
Global Fixed Income 19.00% 0.80% 2.27%
Inflation Sensitive 6.00% 0.60% 1.39%
Private Equity 12.00% 6.60% 6.63%
Real Estate 11.00% 2.80% 5.21%
Infrastructure and Forestland 3.00% 3.90% 5.36%
Liquidity 2.00% -0.40% -0.90%
Total 100.00%
(1) An expected inflation of 2.5% used for this period.
(2) An expected inflation of 3.0% used for this period.
67
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 8: Pension Plan (Continued)
c. Changes in the Net Pension Liability
The changes in the net pension liability for the year ended June 30, 2018, with a
measurement date of June 30, 2017, for the Miscellaneous Plan are as follows:
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability (Asset)
Balance at June 30, 2016 (Valuation Date)115,826,117$ 78,278,246$ 37,547,871$
Changes in the Year:
Service Cost 2,204,265 - 2,204,265
Interest on the Total Pension Liability 8,558,529 - 8,558,529
Difference between Expected and Actual Experience (1,895,482) - (1,895,482)
Changes in Assumptions 7,367,723 - 7,367,723
Contributions - Employer - 5,303,371 (5,303,371)
Contributions - Employee - 828,467 (828,467)
Net Investment Income - 8,800,663 (8,800,663)
Benefit Payments including Refunds of Employee
Contributions (5,401,531) (5,401,531) -
Administrative expense - (115,573) 115,573
Net Changes 10,833,504 9,415,397 1,418,107
Balance at June 30, 2017 (Measurement Date)126,659,621$ 87,693,643$ 38,965,978$
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for the Plan, calculated using the
discount rate for the Plan, as well as what the City’s net pension liability would be if it were
calculated using a discount rate that is 1-percentage point lower or 1-percentage point
higher than the current rate:
1% Decrease 6.15%
Net Pension Liability 56,816,307$
Current Discount Rate 7.15%
Net Pension Liability 38,965,978$
1% Increase 8.15%
Net Pension Liability 24,279,287$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports.
Changes of Assumptions
In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent.
68
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 8: Pension Plan (Continued)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2018, the City recognized pension expense of $3,479,313. At
June 30, 2018, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 5,396,908 -$
Difference between actual and expected experience - (2,923,668)
Change in Assumptions 4,911,815 (130,710)
Net difference between projected and actual earnings on
pension plan investments 1,101,808 -
Total 11,410,531$ (3,054,378)$
$5,396,908 reported as deferred outflows of resources related to contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability in the
year ending June 30, 2019. Other amounts reported as deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Year Ending
June 30 Amount
2019 164,082$
2020 2,970,042
2021 461,800
2022 (636,679)
2023 -
Thereafter -
Total 2,959,245$
e. Payable to the Pension Plan
At June 30, 2018, the City had no outstanding amount of contributions to the pension plan
required for the year ended June 30, 2018.
Note 9: Fund Balances
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, 2018, were as follows:
69
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 9: Fund Balances (Continued)
General Fund Measure A
Prop A Fire
Tax
Housing
Asset Fund
Housing
Authority
Capital
Properties
Other
Governmental
Funds Total
Nonspendable:
Advances 8,971,800$ -$ -$ -$ -$ -$ -$ 8,971,800$
1,382,978 - - - - - - 1,382,978
Prepaid costs 154,316 - - 476 - - 1,250 156,042
Total Nonspendable 10,509,094 - - 476 - - 1,250 10,510,820
Restricted for:
Capital projects:
Assessment districts improvements - - - - - - 2,030,638 2,030,638
Capital bond projects - - - 4,944,279 - 68,754,748 - 73,699,027
Total capital projects - - - 4,944,279 - 68,754,748 2,030,638 75,729,665
Debt service - - - - - - 91,368 91,368
Low income housing:
Projects and programs - - - 42,370,541 - - 2,858,798 45,229,339
Apartments - - - - 8,102,515 - - 8,102,515
Total low income housing - - - 42,370,541 8,102,515 - 2,858,798 53,331,854
Public facilities:
Park facilities - - - - - - 1,416,407 1,416,407
Childcare facilities - - - - - - 1,332,828 1,332,828
City facilities - - - - - - 1,656,520 1,656,520
Total public facilities - - - - - - 4,405,755 4,405,755
Public safety:
Fire facilities - - 5,895 - - - 1,108,171 1,114,066
Fire operation - - 1,889,172 - - - - 1,889,172
Police programs & equipment - - - - - - 94,630 94,630
Total public safety - - 1,895,067 - - - 1,202,801 3,097,868
Special programs:
Community projects - - - - - - 31,510 31,510
Recycling projects - - - - - - 2,494,126 2,494,126
Special district advertising - - - - - - 63,586 63,586
Air quality projects - - - - - - 127,342 127,342
Landscaping and lighting - - - - - - 3,242,212 3,242,212
Art construction & improvements - - - - - - 1,383,878 1,383,878
Total special programs - - - - - - 7,342,654 7,342,654
Street related purposes:
Construction & improvements - 15,652,497 - - - - - 15,652,497
Street resurfacing - - - - - - 1,576,768 1,576,768
Facilities maintenance reserve - 6,317,522 - - - - - 6,317,522
Drainage projects - - - - - - 1,592,857 1,592,857
Traffic signals projects - - - - - - 410,318 410,318
Total street related purposes - 21,970,019 - - - - 3,579,943 25,549,962
Total Restricted - 21,970,019 1,895,067 47,314,820 8,102,515 68,754,748 21,511,957 169,549,126
Committed to:
Aquatic Center - - - - - - 2,134,436 2,134,436
Capital asset replacement - - - - 11,875,488 - - 11,875,488
Capital Improvement Projects Reserve 12,297,553 - - - - - - 12,297,553
Facilities Maintenance Reserve 15,541,441 - - - - - - 15,541,441
Liability Reserve 4,000,000 - - - - - - 4,000,000
Other Fund Stability Reserve 3,300,000 - - - - - - 3,300,000
Emergency/Contigency Reserve 11,602,479 - - - - - - 11,602,479
Employment Benefits Reserve 8,925,165 - - - - - - 8,925,165
Economic Development/Land Acquisition Reserve 4,000,000 - - - - - - 4,000,000
Energy loan program - - - - - - 2,741,897 2,741,897
Total Committed 59,666,638 - - - 11,875,488 - 4,876,333 76,418,459
Assigned to:
General fund operating reserve 14,502,403 - - - - - - 14,502,403
Capital projects:
Facilities maintenance reserve - - - - - - 2,197,824 2,197,824
City capital outlay projects - - - - - - 6,400,000 6,400,000
Total capital projects - - - - - - 8,597,824 8,597,824
Property acquisition - - - - - - 420,387 420,387
Community contingency 444,000 - - - - - - 444,000
Public facilities:
City facilities 51,035 - - - - - - 51,035
Parks facilities - - - - - - 3,812,000 3,812,000
Facilities maintenance reserve - - - - - - 3,360,178 3,360,178
Public facilities - - - - - - 737,119 737,119
Golf facilities - - - - - - 3,502,886 3,502,886
Total public facilities 51,035 - - - - - 11,412,183 11,463,218
Special programs:
Library - - - - - - 667,255 667,255
Professional services 487,649 - - - - - - 487,649
Total special programs 487,649 - - - - - 667,255 1,154,904
Street related purposes:
Street maintenance 7,421 - - - - - - 7,421
Facilities maintenance reserve - - - - - - 2,160,414 2,160,414
Traffic signals projects - - - - - - - -
Total street related purposes 7,421 - - - - - 2,160,414 2,167,835
Total Assigned 15,492,508 - - - - - 23,258,063 38,750,571
Unassigned 4,702,308 - - - - - - 4,702,308
Totals 90,370,548$ 21,970,019$ 1,895,067$ 47,315,296$ 19,978,003$ 68,754,748$ 49,647,603$ 299,931,284$
Loans and notes receivable
Capital
Projects Fund Special Revenue Funds
70
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 9: Fund Balances (Continued)
The fund balances reported on the fund statements now consist of the following categories:
Nonspendable - This classification includes amounts that cannot be spent because they are
either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted - This classification includes amounts that can be spent only for specific purposes
stipulated by constitution, external resource providers or through enabling legislation.
Committed - This classification includes amounts that can be used only for the specific
purposes determined by a formal action of the City Council. The City considers the adoption of
a resolution to institute a formal action of City Council for the purpose of establishing, modifying
or rescinding committed fund balances.
Assigned - This classification includes amounts to be used by the government for specific
purposes but do not meet the criteria to be classified as restricted or committed. This includes
amounts that are assigned through adoption of a resolution by City Council. The Council may
delegate the ability of an employee or committee to assign uses of specific funds, for specific
purposes. Such delegation of authority occurred on September 27th, 2018 and will be in effect
for future fiscal years.
Unassigned - This classification includes the residual balance for the government’s general
fund and includes all spendable amounts not contained in other classifications. In other funds,
the unassigned classification is used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had been restricted, committed or
assigned.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balances are available, the City’s policy is to apply restricted fund balance first.
When an expenditure is incurred for purposes for which committed, assigned or unassigned
fund balances are available, the City’s policy is to apply committed fund balance first, then
assigned fund balance, and finally unassigned fund balance.
Note 10: Risk Management
a. Description of Self-Insurance Pool Pursuant to Joint Power Agreement
The City of Palm Desert is a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 116 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 lines of coverage. The
Authority began covering claims of its members in 1978. Each member government has
an elected official as its representative on the Board of Directors which operates through a
nine-member Executive Committee.
71
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Risk Management (Continued)
b. Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A
retrospective adjustment is then conducted annually thereafter, for coverage years
2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual
retrospective adjustment. The total funding requirement for self-insurance programs is
based on an actuarial analysis. Costs are allocated to individual agencies based on payroll
and claims history, relative to other members of the risk-sharing pool.
Primary Liability Program
In the liability program, claims are pooled separately between police and general
government exposures. (1) The payroll of each member is evaluated relative to the payroll
of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the
formula. (2) The first layer of losses includes incurred costs up to $30,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the
first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000
for each occurrence and is evaluated as a percentage of the pool’s total incurred costs
within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed
based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is
$50 million per occurrence. Costs of covered claim for subsidence losses have a
sub-limit of $40 million per occurrence.
Workers’ Compensation
The City of Palm Desert also participates in the workers’ compensation pool administered
by the Authority. In the workers’ compensation program claims are pooled separately
between public safety (police and fire) and general government exposures. (1) The payroll
of each member is evaluated relative to the payroll of other members. A variable credibility
factor is determined for each member, which establishes the weight applied to payroll and
the weight applied to losses within the formula. (2) The first layer of losses includes incurred
costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s
total incurred costs within the first layer. (3) The second layer of losses includes incurred
costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of
the pool’s total incurred costs within the second layer. (4) Incurred costs in excess from
$100,000 to statutory limits are distributed based on the outcome of cost allocation within
the first and second loss layers.
For 2017-18, the Authority’s pooled retention is $2 million per occurrence, with reinsurance
to statutory limits under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from
$2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability
losses from $5 million to $10 million are pooled among members.
72
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 10: Risk Management (Continued)
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’s property is currently insured according to a schedule of covered
property submitted by the City of Palm Desert to the Authority. The City of Palm Desert’s
property currently has all-risk property insurance protection in the amount of $243,753,167.
There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance,
which has a $2,500 deductible.
Crime Insurance
The City of Palm Desert purchases crime insurance coverage in the amount of
$10,000,000 with a $2,500 deductible. The fidelity coverage is provided through the
Authority.
Special Event Tenant User Liability Insurance
The City or 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 agency 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 facilitated by the Authority.
d. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were no
significant reductions in pooled or insured liability coverage in the fiscal year
2017-18.
73
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 11: Unearned Revenues and Deferred Inflows of Resources
Unearned Revenues
Major Governmental Funds
General Fund has received $2,198 in advance rent payments.
Measure A Special Revenue Fund has $15,393,231 in funds received from the Successor
Agency that are deemed unearned until expenditures are incurred related to construction of
interchange.
Housing Authority Special Revenue Fund has other amounts reported as unearned revenues
include $13,098 for prepaid rents.
Other Governmental Funds
Special Revenue Funds
$105,807 of grant funds are deemed unearned until expenditures are incurred in the
Public Safety Police Grants Fund.
$12,141 of grant funds are deemed unearned until expenditures are incurred in the
Recycling Fund.
$33,646 represents the unused portions of prepaid aquatic fees in the Aquatic Center Fund.
Capital Projects Fund
Capital Projects Reserve fund has $63,041 of unearned revenue represents deposits for street
improvements and public facilities, as the funds have not been spent as of
June 30, 2018.
Business-type Activities
The balance of $129,654 represents the unused portions of prepaid golf fees and value of
unredeemed gift certificates.
The balance of $8,910 represents the unearned rent for the Parkview Office.
Component Unit
The balance of $79,452 represents the unused portions of prepaid banquets.
74
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 11: Unearned Revenues and Deferred Inflows of Resources (Continued)
Deferred Inflows of Resources
Major Governmental Funds
General Fund
On March 13, 1997, the former 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. Recognition of the revenue from the sale has
been reported as deferred inflows of resources until it becomes available.
On March 13, 1997, the City entered into an agreement with subsequent amendments on
June 4, 1997, May 18, 2004, and May 12, 2009, 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, 2018, 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.
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, 2018, $38,628
in interest has been accrued. Recognition of the interest revenue has been reported as
unavailable until it becomes due.
Interest receivable in the amount of $48,802 on the advance from the General Fund to the
Energy Independence Special Revenue Fund, and $495,618 on investments purchased, and
$1,662,480 on advances to the Successor Agency is reported as unavailable revenue.
Other accounts receivable for reimbursement of court fees in the amount of $19,952,
outstanding lien in the amount of $49,562, traffic light reimbursements in the amount of
$83,440, county abandoned vehicle reimbursement in the amount of $17,224 and Transient
Occupancy tax from hotels in the amount of $90,751 are not available at year end.
Housing Asset Fund
Uncollected interest on notes receivable of $32,579 due from the Palm Desert Development
Company has been reported as unavailable.
Interest in the amount of $1,019,475 on advances to the Successor Agency is reported as
unavailable revenue.
75
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 11: Unearned Revenues and Deferred Inflows of Resources (Continued)
Other Governmental Funds
Special Revenue Funds
The Community Development Block Grant Special Revenue Fund has $15,613 in a home
improvement loan as unavailable.
The New Construction Tax Special Revenue Fund has $117,720 in interest on advances to the
Successor Agency is reported as unavailable.
Interest accrued on loans of $148,595 on loans receivable through the City’s EIP Program is
reported as unavailable (see Note 3).
Capital Projects Funds
The Capital Projects Reserve Capital Projects Fund has $1,440,000 in interest on advances to
the Successor Agency is reported as unavailable.
The Parks and Recreational Facilities Capital Projects Fund has $857,700 in interest on
advances to the Successor Agency is reported as unavailable.
Debt Service Fund
Assessment receivables in the amount of $1,227,632 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.
Note 12: Other Post-Employment Benefits
a. Plan Description
In addition to the pension benefits described in Note 8, the City provides other
post-employment benefits (OPEB) through the California Employers’ Retiree Benefit Trust
Fund (CERBT), an agent multiple-employer defined benefit healthcare plan administered
by the California Public Employees’ Retirement System (CalPERS).
All full-time or part-time employees who meet the eligibility requirements for this program
may continue their medical coverage through the CalPERS Health Plan and receive
reimbursement from the City for a portion of the costs for the coverage. Separate financial
statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North,
400 Q Street, Sacramento, California 95811, or by visiting the CalPERS website at
www.calpers.ca.gov.
76
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 12: Other Post-Employment Benefits (Continued)
Employees Hired Prior to January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on
or after age 50 with at least 10 consecutive years of service with the City. Eligible
employees must be covered under the CalPERS 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 City at Retirement Percentage
10 years of service 50%
11 years of service 55%
12 years of service 60%
13 years of service 65%
14 years of service 70%
15 or more years of service 75%
Employees Hired On or After January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on
or after age 50 with at least 15 consecutive years of service with the City. Eligible
employees must be covered under the CalPERS 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:
Age1516171819202122232425+
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%
Consecutive Years of Service at Retirement
Employees with at least 5 years of service, not meeting the eligibility requirements for the
stipend program, who retire simultaneously from the City and CalPERS are eligible to
continue medical coverage through the CalPERS Health Plan. The City is required to pay
the CalPERS minimum employer contribution ($128 in 2017 and $133 in 2018) for these
employees.
77
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 12: Other Post-Employment Benefits (Continued)
Employees Hired On or After January 1, 2015
Employees are not eligible for either of the defined retiree health benefits plan, but are
instead enrolled in the City’s ICMA Retirement Health Savings Account. Employees have
a mandatory 1% contribution to the Retirement Health Savings Plan and the City matches
the 1% contribution. In addition, an employee can participate in the ICMA 401A
Governmental Money Purchase Plan with a maximum pre-tax dollar contribution of 10%,
with the City maximum match of 2%.
As of June 30, 2017, the date of the most recent actuarial valuation, the City's plan has
110 active employees.
Employees Covered - Plan membership, at June 30, 2017, membership consisted of the
following:
Inactive plan members or beneficiaries 103
Active plan members 110
b. City Contributions to the Plan
City contributions to the Plan occur as benefits are paid to retirees and/or to the OPEB
trust.
c. Net OPEB Liability
The City’s Net OPEB Liability was measured as of June 30, 2017 and the Total OPEB
Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation
as of June 30, 2017. Standard actuarial update procedures were used to project/discount
from valuation to measurement dates.
Actuarial assumptions. The total OPEB liability was determined using the following
actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:
Inflation 2.75%
Salary Increase 3.25% per annum
Assumed Wage Inflation 3% per annum
Investment Rate of Return 6.73% per annum
Healthcare cost-trend rates Assumed to start at 7.50% and grade down to 5.00% for years
2024 and thereafter.
Retirement Age The City offers the same plans to its retirees as to its active
employees, with the general exception that upon reaching age 65
and becoming eligible for Medicare, the retiree must join one of the
Medicare Supplement coverages offered under PEMHCA.
Mortality Mortality rates used were those published by CalPERS, adjusted to
back out 20 years of Scale BB to central year 2008, then projected
using the MacLeod Watts Scale 2017 applied generationally.
78
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 12: Other Post-Employment Benefits (Continued)
d. Discount Rate
GASB 75 requires a discount rate that reflects the following:
a) The long-term expected rate of return on OPEB plan investments – to the extent that
the OPEB plan’s fiduciary net position (if any) is projected to be sufficient to make
projected benefit payments and assets are expected to be invested using a strategy to
achieve that return;
b) A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with
an average rating of AA/Aa or higher – to the extent that the conditions in
(a) are not met.
e. Changes in the Net OPEB Liability
The changes in the Net OPEB liability for the Plan are as follows:
Total OPEB
Liabilit y
Plan Fiduciary
Net Position
Net OPEB
Liabilit y
Balance at June 30, 2016 (Measurement Date)16,980,271$ 12,198,460$ 4,781,811$
Changes recognized for the measurement period:
Service Cost 346,417 - 346,417
Interest 1,144,106 - 1,144,106
Expected Investment Income - 841,020 (841,020)
Employer Contributions - 1,255,960 (1,255,960)
Administrative Expenses - (6,541) 6,541
Benefit Payments (653,187) (653,187) -
Investment Experience - 61,311 (61,311)
Net Changes in Fiscal Year 2016-2017 837,336 1,498,563 (661,227)
Balance at June 30, 2017 (Measurement Date)17,817,607$ 13,697,023$ 4,120,584$
Increase (Decrease)
f. Sensitivity of the Total OPEB Liability and Net OPEB Liability to Changes in the
Discount Rate
The following presents the Total OPEB liability and Net OPEB liability, as well as what the
total OPEB liability and net OPEB liability would be if they were calculated using a discount
rate that is 1-percentage point lower (5.73 percent) or 1-percentage-point higher
(7.73 percent) than the current discount rate:
Discount Rate - 1%
(5.73%)
Current Discount Rate
(6.73%)
Discount Rate +1%
(7.73%)
Total OPEB Liability $ 20,159,568 $ 17,817,607 $ 15,876,175
Net OPEB Liability 6,462,545 4,120,584 2,179,152
79
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 12: Other Post-Employment Benefits (Continued)
g. Sensitivity of the Total OPEB Liability and Net OPEB Liability to Changes in the
Health Care Cost Trend Rates
The following presents the Total OPEB liability and net OPEB liability, as well as what the
Total OPEB liability and net OPEB liability would be if they were calculated using
healthcare cost trend rates that are 1-percentage-point lower (6.50 percent decreasing to
4.00 percent) or 1-percentage-point higher (9.50 percent decreasing to 7.00 percent) than
the current healthcare cost trend rates:
1% Decrease
(6.50% decreasing
to 4.00%)
Trend Rate
(7.50% decreasing to
5.00%)
1% Increase
(8.50% decreasing
to 6.00%)
Total OPEB Liability $ 15,657,265 $ 17,817,607 $ 20,763,124
Net OPEB Liability 1,960,242 4,120,584 7,066,101
h. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2018, the City recognized OPEB expense of $643,782.
As of fiscal year ended June 30, 2018, the City reported deferred outflows and inflows of
resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between projected and actual return on
OPEB plan investments
Contributions made subsequent to the
measurement date 1,217,465 -
Total 1,217,465$ 49,049$
$ - $ 49,049
The City will recognize the Contributions Made Subsequent to the Measurement Date in
the next fiscal year. In addition, future recognition of the deferred resources is shown
below:
Measurement
Period ended
June 30:
Deferred
Outflows/(Inflows)
of Resources
2018 (12,262)$
2019 (12,262)
2020 (12,262)
2021 (12,263)
2022 -
Thereafter -
Total (49,049)$
80
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 13: Special Assessment Debt
Below is a summary of the changes in the special assessment bonds payable:
Balance at
July 1, 2017 Additions
Payments and
Reductions
Balance at
June 30, 2018
Due Within
One Year
2003 Assessment Revenue
Bonds 1,695,000$ -$ 170,000$ 1,525,000$ 170,000$
AD 98-1 Limited Obligation
Refunding Bonds 130,000 - 65,000 65,000 65,000
CFD 2005-1 Special Tax Bonds
Series 2006A 30,085,000 - 890,000 29,195,000 935,000
AD 2004-2 Limited Obligation
Improvement Bonds 22,575,000 - 640,000 21,935,000 670,000
2008 Special Tax Refunding
Bonds 1,630,000 - 1,630,000 - -
Total 56,115,000$ -$ 3,395,000$ 52,720,000$ 1,840,000$
The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special
Improvement Acts and the 1982 Mello-Roos Community Facilities Act
(1982 Bonds). The City has no liability to 1911 Act bondholders until assessments have been
collected from the property owner. Such liability is then recorded in the Agency Funds.
Therefore, the 1911 Bonds are not recorded as liabilities in the accompanying financial
statements.
The City also has no liability to the 1915 Act bondholders or the bondholders of bonds issued
under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the
tax rolls. However, the City may take certain actions to assume secondary liability for all or part
of 1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are
consummated.
Special assessment bonds payable, as described below, and are not recorded as
long-term liabilities, as these obligations do not constitute a debt or obligation of the City.
81
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 13: Special Assessment Debt (Continued)
2003 Assessment Revenue Bonds
In June 2003, the Palm Desert Financing Authority issued $4,423,000 in
2003 Assessment Revenue Bonds. The proceeds were used to purchase three series of limited
obligation improvement bonds issued by the City in connection with the financing and
refinancing of certain improvements of benefit to property within the City’s Assessment District
No. 94-2 (Sunterrace), Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility
Undergrounding Assessment District No. 01-01. These bonds were issued under the
1915 Improvement Bond Act to provide funds for public improvements in the respective
assessment districts.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2019 170,000$ 76,229$ 246,229$
2020 175,000 67,344 242,344
2021 180,000 58,069 238,069
2022 100,000 50,719 150,719
2023 110,000 45,206 155,206
2024-2028 640,000 130,271 770,271
2029 150,000 4,031 154,031
Total 1,525,000$ 431,869$ 1,956,869$
As of June 30, 2018, the principal amounts to be repaid by each assessment district to pay off
the loans from the Financing Authority are as follows:
Assessment District 94-3 265,000$
Assessment District 01-1 1,270,000
1,535,000$
Assessment District 98-1 Limited Obligation Refunding Improvement Bonds
The bonds were issued in an original amount of $2,955,000 in February 2004, to redeem and
defease the outstanding limited obligation improvement bonds of Assessment District
No. 98-1, which were issued in 1998. The bonds are secured by unpaid assessments on
parcels within the District.
Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the
scheduled debt service requirements are to be included on the regular county tax bills for the
assessed parcels for which there are unpaid assessments. Interest rates vary from 1.5% to
5.1% with interest payable semi-annually on March 2 and September 2, with principal maturing
annually on September 2.
82
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 13: Special Assessment Debt (Continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2019 65,000$ 1,658$ 66,658$
Total 65,000$ 1,658$ 66,658$
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.
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. On March 1, 2016, a combined total of $20,885,000 of the outstanding bonds
were called. Interest rates vary from 3.875% to 5.20% with interest payable semi-annually on
March 1 and September 1, with principal maturing annually on September 1.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2019 935,000$ 1,533,500$ 2,468,500$
2020 980,000 1,485,625 2,465,625
2021 1,030,000 1,435,375 2,465,375
2022 1,080,000 1,382,625 2,462,625
2023 1,140,000 1,325,700 2,465,700
2024-2028 6,635,000 5,643,617 12,278,617
2029-2033 8,680,000 3,610,479 12,290,479
2034-2037 8,715,000 990,414 9,705,414
Total 29,195,000$ 17,407,335$ 46,602,335$
83
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 13: Special Assessment 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 $14,925,000 carry an interest rate of 5.10%
and mature September 2, 2037.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2019 670,000$ 1,086,913$ 1,756,913$
2020 700,000 1,054,885 1,754,885
2021 735,000 1,020,979 1,755,979
2022 765,000 985,354 1,750,354
2023 800,000 948,185 1,748,185
2024-2028 4,660,000 4,080,324 8,740,324
2029-2033 5,960,000 2,739,975 8,699,975
2034-2038 7,645,000 1,013,753 8,658,753
Total 21,935,000$ 12,930,368$ 34,865,368$
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 $16,260,000 principal amount of the
Palm Desert Financing Authority 1997 Revenue Bonds. These bonds were issued pursuant to
the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being
Chapter 2.5, Part 1, Division 2, Title 5, of the Government Code of the State of California.
These Special Tax Refunding Bonds were paid off during the current fiscal year.
Bond Reserve Requirements
At June 30, 2018, the fund balance reserve requirements and actual reserve balances were as
follows:
Requirement Actual
Assessment District 98-1 66,658$ 68,651$
2003 Financing Authority Revenue Bonds 222,372 234,011
CFD 2005-1 Special Tax Bonds 2,468,500 2,559,689
Assessment District 29 1,756,913 1,806,018
84
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 14: Other Disclosures
The Palm Desert Recreational Facilities Corporation has a deficit of $837,361, which will be
eliminated by increasing revenues through banquet reservations and outings directly related to
the expansion of the outside dining terrace and the kitchen.
The Fiduciary Private-Purpose Trust Fund has a deficit of $212,424,154, which will be funded
through future property taxes collected by the County under the direction of the State. The
State of California is the responsible body for the elimination of this deficit.
Note 15: Construction and Other Significant Commitments
Construction Commitments
Primary Government
Project
Current Year
Spent
Prior Year
Spent
Remaining
Commitment
General Fund
Parks / Recreation $ 41,510 $ - $ 129,376
City Owned Buildings Improvements 4,430 9,000 51,035
Street Improvements - - 7,421
ADA Compliance Assistance Program - - 141,500
CDBG - - 957
Building & Safety Microfilm Conversion - - 58,916
Governmental Software Implementation 5,457 - 10,194
Promotion Advertising / Rebranding 54,306 - 8,664
Urban Plan 20,554 - 6,446
Hotel Feasibility 6,810 14,535 28,655
Misc. Non-Construction 192,485 - 102,942
Measure A
Street Improvements 14,880 - 16,452
Prop A Fire Fund
City Owned Buildings Improvements - - 5,895
Capital Properties
San Pablo Improvements 283,429 - 607,726
Presidents Plaza Parking Lot Improvements - - 606,120
Other Governmental Funds
Parks / Recreation - - 9,032
City Owned Buildings Improvements 4,056 - 164,587
Street Resurfacing 1,264,776 - 465,823
Street Improvements 780 - 19,763
Recycle Projects 16,950 - 48,050
CDBG 90,068 - 77,890
Governmental Software Implementation 92,379 - 64,884
Alessandro West Improvement Project 5,032 12,904 37,999
Drainage Improvements 162,659 129,716 221,113
El Paseo Art Exhibit - 36,416 9,000
Landscape and Lighting 11,060 - 2,415
Misc. Non-Construction 15,692 - 2,408
$ 2,287,313 $ 202,571 $ 2,905,263
85
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 15: Construction and Other Significant Commitments (Continued)
Fiduciary Funds
Project
Current Year
Spent
Prior Year
Spent
Remaining
Commitment
El Paseo Revitalization $ - $ 3,709 $ 131,714
Sewer Rent Payment 93,115 - 2,898,211
93,115$ 3,709$ 3,029,925$
Note 16: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies
Pursuant to AB X1 26 (adopted by the California Legislature in June 2011) and the State
Supreme Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos,
et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State were dissolved as of
February 1, 2012, and a successor agency was established for each former redevelopment
agency to wind-down the affairs of its former redevelopment agency. Certain actions of each
successor agency must first be approved by its oversight board, composed of seven-members
representing taxing entities.
On August 25, 2011, the City Council adopted Resolution No. 2011-76, pursuant to Health and
Safety Code (“HSC”) Section 34172, electing for the City to serve as the successor agency
(“SARDA”) to the former Palm Desert Redevelopment Agency (the “Dissolved RDA”). Although
the Board of Directors of the SARDA is comprised of the same individuals as the City Council,
HSC Section 34173(g) expressly affirms that the SARDA is a separate public entity from the
City,and that the liabilities of the Dissolved RDA shall not be transferred to the City nor shall
the assets of the Dissolved RDA become assets of the City.
The City elected on February 9, 2012 to have the Palm Desert Housing Authority serve as the
Housing Successor. Under HSC Section 34176, the Housing Successor assumed the
housing functions of the Dissolved RDA. The Housing Authority (as the Housing Successor)
submitted to the State Department of Finance (“DOF”) a list of housing assets to be transferred
by the SARDA to the Housing Successor. On August 31, 2012, the DOF issued a letter
indicating that the DOF did not have any objection to such housing asset list.
The housing assets (per the housing asset list), obligations, and activities of the Dissolved RDA
were transferred to the Housing Successor and are reported in the Housing Asset Fund
beginning in fiscal year 2011-2012. However, outstanding bonds (“Housing Bonds”), secured
by a pledge of moneys which would have been deposited into the Dissolved RDA’s low and
moderate income housing fund (known as the “Housing Set Aside”), remain as the SARDA’s
enforceable obligations. See also “Stipulated Judgment” below. All other assets, obligations,
and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund
(private-purpose trust fund) in the financial statements of the City.
Upon dissolution of the Dissolved RDA, the County Auditor-Controller (“CAC”) is charged
with establishing a Redevelopment Property Tax Trust Fund (the “RPTTF”) for the SARDA and
depositing into the RPTTF the amount of property taxes that would have been redevelopment
property tax increment had the Dissolved RDA not been dissolved.
86
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 16: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies (Continued)
The SARDA is required to prepare an annual recognized obligation payment schedule
(the “ROPS”) approved by the oversight board setting forth the amounts due for enforceable
obligations from each July 1 through the following June 30. The ROPS is submitted to the CAC
and the DOF for consideration. The CAC only makes payments to the SARDA from the RPTTF
based on the ROPS amount approved by the DOF.
SARDA was required to conduct due diligence reviews of both the low and moderate income
housing fund and all other funds by October 15, 2012 and January 15, 2013, respectively, to
compute the funds (cash) which were not needed by the SARDA to be retained to pay for
existing enforceable obligations or were otherwise restricted, and therefore, must be remitted
to the CAC. The SARDA paid a total amount of $40,988,399 to the CAC based on the due
diligence reviews per the DOF’s determination.
The DOF issued a Finding of Completion on May 15, 2013 after SARDA made the payments
required as a result of the due diligence reviews. The Finding of Completion allows the
placement of loan agreements between the Dissolved RDA and the City (which were previously
voided by operation of law upon the Dissolved RDA’s dissolution) on the ROPS. On
February 23, 2015, the Oversight Board approved Resolution OB-114, making the finding to
reestablish the City loans as enforceable obligations of the SARDA. DOF subsequently
approved this action on April 10, 2015. When the repayments begin, 20% of each repayment
amount will be allocated to the Housing Asset Fund. At June 30, 2018, the long-term advances
totaled $22,655,000 (the “Advances”). In the financial statements $9,236,000 is reported in the
General Fund and $13,419,000 is reported in Other Governmental Funds. An offset of 20%
has been reported as due to other funds in the respective funds totaling $4,531,000, which is
based on principal only. See further discussion under Note 17.
Pursuant to HSC Section 34191.4(b), unpaid interest on the remaining principal amount of the
Advances shall be calculated at a simple rate of 3%. No interest on the Advances has been
paid since December 31, 2010. Based on the 3% simple rate, the unpaid accrued interest on
the Advances as of June 30, 2018 totaled $5,097,375.
The State Controller of the State of California was directed to review the propriety of any
transfers of assets between the Dissolved RDA and other public bodies that occurred after
January 1, 2011. The State Controller completed its review on March 14, 2013 and did not
identify any unallowable transfers of assets that occurred between the Dissolved RDA and the
City or other public agencies.
The SARDA’s use and disposition of all properties held (Long Range Property Management
Plan (“LRPMP”), was approved by the DOF on June 2, 2014. The LRPMP allowed the SARDA
to transfer property used for government purposes with a cost basis of $6,390,263 to the City.
Stipulated Judgment
On May 15, 1991, the Riverside County Superior Court entered a final judgment incorporating
the terms of a Stipulation for Entry of Judgment (“Original Stipulation”) in Case No. 51124 and
a Stipulation for Entry of Judgment pursuant to Settlement Agreement and Mutual Release
(“Settlement Agreement”) in Case No. 51124, among the Dissolved RDA, the City, the Western
Center on Law and Poverty, Inc., California Rural Legal Assistance, and others. On June 18,
1997 and on September 20, 2002, the Riverside County Superior Court amended the
judgment, incorporating Stipulations Amending Stipulation for Entry of Judgment.
87
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 16: Dissolution of California Redevelopment Agencies and Wind-Down by Successor
Agencies (Continued)
The judgment, as amended (the “Judgment”), generally required the Dissolved RDA to use
20% of its tax increment revenues, and additional tax increment revenues if necessary, to
develop, rehabilitate, or otherwise financially assist affordable housing units and to meet certain
housing needs of the City. Before dissolution, the Dissolved RDA used its Low and Moderate
Housing Set-Aside to fulfill its obligations under the Judgment (including the payment of debt
service on the Housing Bonds issued to finance and refinance affordable housing projects that
satisfied the requirements of both the Judgment and the relevant Redevelopment Law
provisions).
While the low and moderate income housing fund has been eliminated upon the dissolution
of the Dissolved RDA and the requirement to deposit the Housing Set-Aside into such fund,
the SARDA continues to recognize the Judgment as its enforceable obligation. On its ROPS,
the SARDA has included line items designated as “Stipulation Judgment Case No. 51124,”
listing the amounts necessary to fulfill its obligations under the Judgment (after taking into
account the amounts already listed for the repayment of the Housing Bonds). While the DOF
originally approved such line items, the DOF changed its position beginning with ROPS
14-15A (i.e., covering the period commencing July 1, 2014).
On August 14, 2014, the SARDA filed an action, SARDA to the Palm Desert Redevelopment
Agency v. Michael Cohen, Sacramento Superior Court Case No. 34-2014-00167698
(the “Successor Agency Lawsuit”), seeking to compel the DOF to permit payment of the
affordable housing obligations mandated by the Judgment. Subsequently, in view of the fact
that there were similar cases pending in the California Court of Appeal (Third District), the
SARDA voluntarily dismissed its action without prejudice pending resolution of those other
cases. To date, none of the other cases has resulted in a decision that would compel the DOF
to permit payment of the obligations under the Judgment as an enforceable obligation.
Note 17: Successor Agency Disclosures
The assets and liabilities of the Dissolved RDA (except for those transferred to the Housing
Successor and reported in the Housing Asset Fund) have been transferred to the SARDA. The
SARDA is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to
these transactions are as follows:
Advances To/From the City of Palm Desert
The composition of advances as of June 30, 2018, was as follows:
Advances From Advances To Amount
General Fund Successor Agency 9,236,000$
Other Governmental Funds Successor Agency 13,419,000
Housing Asset Fund Successor Agency 4,711,140
27,366,140$
The advances from the General Fund and Other Governmental Funds were made to the
Dissolved RDA for capital improvements. The Dissolved RDA’s Low Moderate Housing Fund
made advances to the Dissolved RDA for the purpose of covering the SERAF payment. Both
SERAF and City
88
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 17: Successor Agency Disclosures (Continued)
Loans were approved by both the Oversight Board and DOF as enforceable obligations of the
SARDA. The initial repayments of the SERAF loan have been included and approved with the
15-16A ROPS period.
The advances repayable to City Funds are to be repaid with a defined schedule over a
reasonable term of years, are subject to a formula distribution pursuant to HSC Section
34191.4, and have a lower priority for repayment relative to the repayment of SERAF loans.
The advances related to the borrowing for the SERAF payment have a priority over repayment
of the other advances. 20% of the repayment of the other advances not related to the SERAF
advances shall be deducted and transferred to the Housing Asset Fund (Housing Authority, as
Housing Successor).
Balance at
July 1, 2017 Additions Deletions
Balance at
June 30, 2018
Capital assets, not being depreciated:
Land 35,501,118$ -$ (567,159)$ 34,933,959$
Total capital assets, not being depreciated 35,501,118 - (567,159) 34,933,959
Buildings and improvements 1,264,879 - - 1,264,879
Total capital assets, being depreciated 1,264,879 - - 1,264,879
Buildings and improvements (335,106) (31,622) - (366,728)
Total capital assets being depreciated, net 929,773 (31,622) - 898,151
Capital assets, net 36,430,891$ (31,622)$ (567,159)$ 35,832,110$
- (366,728)
Capital assets, being depreciated:
Less accumulated depreciation for:
Total accumulated depreciation (335,106) (31,622)
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2018, was as follows:
Balance
July 1, 2017
Additions/
Accretion
Repayments/
Reductions
Balance
June 30, 2018
Due Within
One Year
Project Area No. 1
2007A TARRBs, $32,600,000 3,680,000$ -$ (3,680,000)$ -$ -$
Project Area No. 2
2003 TARBs, $15,745,000 15,745,000 - - 15,745,000 -
2017 A TARBs, $52,390,000 52,390,000 - (1,385,000) 51,005,000 2,740,000
2017 B TARBs, $140,130,000 140,130,000 - (2,045,000) 138,085,000 6,545,000
2017 H-A TARBs, $7,365,000 7,365,000 - (355,000) 7,010,000 365,000
2017 H-B TARBs, $45,815,000 45,815,000 - (6,770,000) 39,045,000 7,560,000
Subtotal 265,125,000 - (14,235,000) 250,890,000 17,210,000
Add: Unamortized bond premium 8,707,367 - 771,586 7,935,781 -
Less: Unamortized bond discount (2,276,267) - (134,732) (2,141,535) -
Total 271,556,100$ -$ (13,598,146)$ 256,684,246$ 17,210,000$
2017 Tax Allocation Refunding Bonds
89
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 17: Successor Agency Disclosures (Continued)
The tax allocation revenues bonds issued before 2011 (i.e., before the dissolution of the
Dissolved RDA) were issued by the Palm Desert Financing Authority, the proceeds of which
were loaned to the Dissolved RDA for financing or refinancing redevelopment projects.
Pursuant to the bond documents, the Authority’s bonds were secured by the Dissolved RDA’s
(and after dissolution, are secured by the Successor Agency’s) repayment of the loans, and
the repayment of the loans were secured by tax increment (after the Dissolved RDA’s
dissolution, are secured by certain moneys deposited in the RPTTF, see Notes 16) and other
funds as provided in the bond documents.
In January 2017, the Successor Agency issued four series of bonds: (i) the Tax Allocation
Refunding Bonds, 2017 Series A, in the aggregate principal amount of $52,390,000
(the “2017A Bonds”), (ii) the Taxable Tax Allocation Refunding Bonds, 2017 Series B, in the
aggregate principal amount of $140,130,000 (the “2017B Bonds”), (iii) the Tax Allocation
Refunding Bonds, 2017 Series H-A, in the aggregate principal amount of $7,365,000
(the “2017H-A Bonds”); and (iv) the Taxable Tax Allocation Refunding Bonds, 2017 Series
H-B, in the aggregate principal amount of $45,815,000 (the “2017H-B Bonds”). As further
described below, the 2017 refunding refunded all of the outstanding tax allocation revenue
bonds, except for the Project Area No. 1 2007A Bonds and the Project Area No. 2 2003 Bonds.
None of these bonds or any interest thereon are a debt of the City, the State of California or
any of its political subdivisions (except for the Successor Agency), and none the City, the
State of California nor any of its political subdivisions (except for the Successor Agency) 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 respective bond documents.
The remaining outstanding the Project Area No. 2 2003 Bonds are, Project Area No. 1 2007A
Bonds (prior to the final pay-off in June 2018) were, insured by MBIA Insurance Corporation
(“MBIA”). On February 18, 2009, MBIA announced the restructuring of its financial guaranty
insurance operations into two separately capitalized sister companies, with one entity
(MBIA Illinois) assuming the risk associated with its US municipal exposures, and the other
(MBIA Corp) insuring the remainder of the portfolio. Effective March 19, 2009, MBIA Illinois
was renamed National Public Finance Guarantee Corporation (“NPFGC”).
Some (but not all) of the maturities of each series of the 2017 Bonds are insured by Build
America Mutual Assurance Company.
Tax Allocation Refunding Revenue Bonds (Project 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 Dissolved RDA. The proceeds of the bond
were loaned to refinance a portion of the outstanding obligations of the Dissolved RDA, fund
various redevelopment capital projects within 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 began April 1, 2008, and continue annually through 2018.
The 2007 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
were paid off as of June 30, 2018.
90
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 17: Successor Agency Disclosures (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 2)
On March 26, 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 Dissolved RDA to fund various redevelopment capital projects 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 1, 2024
2,485,000 Term Bonds August 1, 2026
11,475,000 Term Bonds August 1, 2033
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds
(Project Area No. 2) are as follows:
Principal Interest Total
2019 -$ 769,006$ 769,006$
2020 - 769,006 769,006
2021 - 769,006 769,006
2022 - 769,006 769,006
2023 - 769,006 769,006
2024 - 2028 5,675,000 3,264,041 8,939,041
2029 - 2033 8,175,000 1,536,876 9,711,876
2034 1,895,000 47,375 1,942,375
15,745,000$ 8,693,322$ 24,438,322$
Year Ending
June 30,
2017 Series A Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017A Bonds, in the principal amount
of $52,390,000. The proceeds from the 2017A Bonds were utilized to refund the Project Area
No. 1 2002A Bonds, Project Area No. 1 2003 Bond, Project Area No. 1 2004 Bonds, the Project
Area No. 2 2002A Bonds, and the Project Area No. 4 1998 Bonds and pay certain costs
associated with the issuance of the bonds.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of ($3,569), which is reported as a deferred inflow of resources in the
accompanying financial statements and amortized over the remaining life of the refunding debt.
The agency completed the refunding to reduce its total debt service payments by $9,247,916
and to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $7,627,413.
91
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 17: Successor Agency Disclosures (Continued)
Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on
April 1 and October 1, commencing April 1, 2017, with principal maturing annually on
October 1. As of June 30, 2018, the outstanding principal balance on the bonds is $51,005,000.
The future debt service requirements on the 2017A Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2019 2,740,000$ 2,427,050$ 5,167,050$
2020 2,730,000 2,331,350 5,061,350
2021 2,875,000 2,204,875 5,079,875
2022 3,060,000 2,056,500 5,116,500
2023 3,195,000 1,900,125 5,095,125
2024 - 2028 24,995,000 6,385,625 31,380,625
2029 - 2030 11,410,000 841,250 12,251,250
Total 51,005,000$ 18,146,775$ 69,151,775$
2017 Series B Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017B Bonds, in the principal amount
of $140,130,000. The proceeds from the 2017B Bonds were utilized refund the Project Area
No. 1 2006A Bonds, the Project Area No. 2 2006A Bonds, the Project Area No. 2 2006D Bonds,
the Project Area No. 3 2003 Bonds, the Project No. 3 2006A Bonds, the Project Area
No. 3 2006B Bonds, the Project Area No. 3 2006C Bonds, the Project Area No. 4 2001 Bonds,
the Project Area No. 4 2006A Bonds, and the Project Area No. 4 2006B Bonds and pay certain
costs associated with the issuance of the bonds.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of ($414,197), which is reported as a deferred inflow of resources in the
accompanying financial statements and amortized over the remaining life of the refunding debt.
The agency completed the refunding to reduce its total debt service payments by $22,311,587
and to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $13,310,309.
Interest rates on the bonds vary from 1.25% to 4.25% per annum payable semi-annually on
April 1 and October 1, commencing April 1, 2017, with principal maturing annually on
October 1. As of June 30, 2018, the outstanding principal balance on the bonds is
$138,085,000.
92
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 17: Successor Agency Disclosures (Continued)
The future debt service requirements on the 2017B Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2019 6,545,000$ 4,500,828$ 11,045,828$
2020 8,685,000 4,360,800 13,045,800
2021 8,325,000 4,180,294 12,505,294
2022 8,780,000 3,971,400 12,751,400
2023 9,405,000 3,726,844 13,131,844
2024 - 2028 35,820,000 14,844,841 50,664,841
2029 - 2033 30,135,000 9,533,322 39,668,322
2034 - 2038 27,755,000 2,783,431 30,538,431
2039 - 2042 2,635,000 229,606 2,864,606
Total 138,085,000$ 48,131,366$ 186,216,366$
2017 Series H-A Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017H-A Bonds, in the principal
amount of $7,365,000. The proceeds from the 2017H-A Bonds were used to refund the
2002 Housing Bonds and pay certain costs associated with the issuance of the bonds.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of $58,238, which is reported as a deferred outflow of resources in the
accompanying financial statements and amortized over the remaining life of the refunding debt.
The agency completed the refunding to reduce its total debt service payments by $1,332,840
and to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $1,063,959.
Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on
April 1 and October 1, commencing April 1, 2017, with principal maturing annually on
October 1. As of June 30, 2018, the outstanding principal balance on the bonds is $7,010,000.
The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds
are as follows:
Year Ending
June 30, Principal Interest Total
2019 365,000$ 310,194$ 675,194$
2020 380,000 297,119 677,119
2021 395,000 279,644 674,644
2022 415,000 259,394 674,394
2023 430,000 238,269 668,269
2024 - 2028 2,515,000 835,718 3,350,718
2029 - 2032 2,510,000 186,784 2,696,784
Total 7,010,000$ 2,407,122$ 9,417,122$
93
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 17: Successor Agency Disclosures (Continued)
2017 Series H-B Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017H-B Bonds, in the principal
amount of $45,815,000. The proceeds from the 2017 H-B Bonds were used to refund the
2007 Housing Bond and pay certain costs associated with the issuance of the bonds.
The refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of ($353,876), which is reported as a deferred inflow of resources in the
accompanying financial statements and amortized over the remaining life of the refunding debt.
The agency completed the refunding to reduce its total debt service payments by $3,419,425
and to obtain an economic gain (difference between the present values of the old and new debt
service payments) of $1,617,843.
Interest rates on the bonds vary from 1.25% to 3.00% per annum payable semi-annually on
April 1 and October 1, commencing April 1, 2017, with principal maturing annually on
October 1. As of June 30, 2018, the outstanding principal balance on the bonds is $39,045,000.
The future debt service requirements on the 2017H-B Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2019 7,560,000$ 849,150$ 8,409,150$
2020 7,680,000 710,925 8,390,925
2021 5,735,000 569,606 6,304,606
2022 5,860,000 428,175 6,288,175
2023 6,015,000 268,556 6,283,556
2024 6,195,000 92,925 6,287,925
Total 39,045,000$ 2,919,337$ 41,964,337$
Note 18: Restatement of Net Position
In the current fiscal year, the City implemented GASB Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions. Due to this
implementation, the City restated governmental activity net position, as of the beginning of the
fiscal year, by the amount of $13,081,531 due to the following:
733,953,668$
(9,432,358)
(4,781,811)
1,132,638
(13,081,531)
Net Position - beginning of year, as restated 720,872,137$
Net Position - beginning of year
OPEB contribution made after measurement date
Increase in OPEB liability
Decrease in Net OPEB assets
Changes to beginning Net Position
94
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2018
Note 19: Subsequent Events
On August 13th, 2018, the City Council, acting as the as governing body of the
Successor Agency to the Palm Desert Redevelopment Agency (SARDA) executed a Purchase
and Sale Agreement to sell SARDA owned Desert Willow Lot Pad E to the City of Palm Desert
for the appraised value of $2,670,000. The goals of this comprehensive disposition strategy
are to implement the requirements of the Long Range Property Management Plan (LRPMP)
and to maximize the property’s economic development opportunities that align with the City’s
Strategic Plan.
95
THIS PAGE INTENTIONALLY LEFT BLANK
96
REQUIRED SUPPLEMENTARY INFORMATION
97
CITY OF PALM DESERT
MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018
TOTAL PENSION LIABILITY
Service Cost 2,156,598$ 2,125,437$ 2,076,964$ 2,204,265$
Interest 7,991,591 8,223,320 8,327,823 8,558,529
Difference between Expected and Actual Experience - (2,378,254) (4,259,317) (1,895,482)
Changes in Assumptions - (2,091,348) - 7,367,723
Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531)
Net Change in Total Pension Liability 5,298,869 1,282,130 1,344,218 10,833,504
Total Pension Liability - Beginning 107,900,900 113,199,769 114,481,899 115,826,117
Total Pension Liability - Ending (a)113,199,769$ 114,481,899$ 115,826,117$ 126,659,621$
PLAN FIDUCIARY NET POSITION
Contributions - Employer 3,320,450$ 4,065,411$ 4,257,322$ 5,303,371$
Contributions - Employee 995,504 878,171 870,981 828,467
Net Investment Income 11,290,314 1,682,498 448,184 8,800,663
Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531)
Administrative Expense - (87,279) (47,263) (115,573)
Net Change in Fiduciary Net Position 10,756,948 1,941,776 727,972 9,415,397
Plan Fiduciary Net Position - Beginning 64,851,550 75,608,498 77,550,274 78,278,246
Plan Fiduciary Net Position - Ending (b)75,608,498$ 77,550,274$ 78,278,246$ 87,693,643$
Plan Net Pension Liability/(Assets) - Ending (a) - (b)37,591,271$ 36,931,625$ 37,547,871$ 38,965,978$
66.79%67.74%67.58%69.24%
Covered Payroll 11,110,759$ 11,448,621$ 11,342,713$ 10,684,238$
338.33%322.59%331.03%364.71%
Notes to Schedule:
Plan Fiduciary Net Position as a Percentage of the Total Pension
Liability
Plan Net Pension Liability/(Asset) as a Percentage of Covered
Payroll
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2016 valuation date.
This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported
reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.)
In 2014, amounts reported were based on the 7.5 percent discount rate.
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only four
years are shown.
See Notes to Required Supplementary Information 98
CITY OF PALM DESERT
MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER
SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2015 2016 2017 2018
Actuarially Determined Contribution 3,393,171$ 3,585,082$ 3,550,127$ 4,219,764$
Contribution in Relation to the Actuarially Determined Contribution (4,065,411) (4,257,322) (5,303,371) (5,396,908)
Contribution Deficiency (Excess)(672,240)$ (672,240)$ (1,753,244)$ (1,177,144)$
Covered Payroll 11,448,621$ 11,342,713$ 10,684,238$ 12,033,485$
Contributions as a Percentage of Covered Payroll 35.51%37.53% 49.64%44.85%
Note to Schedule:
Valuation Date:June 30, 2015
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal
Amortization method/period Level percentage of payroll, closed
Asset valuation method Market value
Inflation 2.75%
Salary increases Varies by entry age and service
Payroll growth 3.00%
Investment rate of return
Retirement age
Mortality
The probabilities of retirement are based on the 2010
CalPERS Experience Study for the period from 1997 to
The probabilities of retirement are based on the 2010
CalPERS Experience Study for the period from 1997 to
2007. Pre-retirement and post-retirement mortality rates
include 5 years of projected mortality improvement using
Scale AA published by the Society of Actuaries.
7.15% net of pension investment and administrative
expenses, including inflation.
(1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only four
years are shown.
See Notes to Required Supplementary Information 99
CITY OF PALM DESERT
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018
Total OPEB Liability
Service cost 346,417$
Interest on the total OPEB liability 1,144,106
Benefit payments (653,187)
Net change in total OPEB liability 837,336
Total OPEB liability - beginning 16,980,271
Total OPEB liability - ending (a)17,817,607$
Plan Fiduciary Net Position
Contribution - employer 1,255,960$
Net investment income 902,331
Benefit payments (653,187)
Administrative expense (6,541)
Net change in plan fiduciary net position 1,498,563
Plan fiduciary net position - beginning 12,198,460
Plan fiduciary net position - ending (b) 13,697,023$
Net OPEB Liability/(Assets) - ending (a) - (b)4,120,584$
Plan fiduciary net position as a percentage of the total OPEB liability 76.87%
Covered-Employee payroll 10,584,400$
Net OPEB liability as a percentage of covered payroll 38.93%
(1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018
was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes
available.
100
CITY OF PALM DESERT
SCHEDULE OF CONTRIBUTIONS - OPEB
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018
520,620$
(1,217,465)
(696,845)$
10,749,431$
4.84%
Notes to Schedule:
Methods and assumptions used to determine contributions:
Actuarial Cost Method
Amortization Valuation Method/Period
Asset Valuation Method Market value of assets
Inflation 2.75%
Payroll Growth 3% per annum, in aggregate
Investment Rate of Return 6.73% per annum
Healthcare cost-trend rates
Retirement Age
Mortality
Change Since the Prior Valuation:
None.The beginning of measurement period liabilities were developed based on a roll back of the July 2017 valuation
results. This methodology produces no liability gains or losses between the beginning of the measurement period and the
measurement date.
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions
Contribution Deficiency (Excess)
Covered-Employee payroll
Contributions as a percentage of covered payroll
Mortality rates used were those published by CalPERS, adjusted
to back out 20 years of Scale BB to central year 2008,then
projected using the MacLeod Watts Scale 2017 applied
generationally.
(1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018
was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes
available.
*Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2018 were from
the June 30, 2017 actuarial valuation.
Entry Age Normal
Level percent of payroll over a closed rolling 15-year period
7.50%; Medical plan premiums and claims costs by age are
assumed to increase once each year. The required PEMHCA
minimum employer contribution (MEC)is assumed to increase
annually by 4.5%.
Tier 1 employees - 2.50% @55 and Tier 2 employees - 2.00%
@62 The probabilities of Retirement are based on the 2014
CalPERS Experience Study for the period of 1997 to 2011.
101
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 83,986,544$ 83,986,544$ 83,986,544$ -$
Resources (Inflows):
Taxes
Property taxes 6,304,500 6,904,500 6,726,940 (177,560)
Property transfer tax 550,000 550,000 664,822 114,822
Property tax in lieu 4,035,000 4,035,000 4,051,058 16,058
Timeshare mitigation fee 1,615,000 1,615,000 1,543,762 (71,238)
Sales tax 18,800,000 18,630,000 18,627,704 (2,296)
Business license tax 1,275,000 1,275,000 1,154,275 (120,725)
Job valuation fees 30,000 30,000 18,253 (11,747)
Transient occupancy tax 13,650,000 16,930,000 17,019,034 89,034
Franchises 3,250,000 3,250,000 3,097,521 (152,479)
Penalties and interest on taxes 35,000 35,000 33,085 (1,915)
Total Taxes 49,544,500 53,254,500 52,936,454 (318,046)
Licenses and Permits
Building permits 579,600 974,600 975,308 708
Grading permits 15,000 15,000 73,665 58,665
Encroachment permits 95,000 95,000 60,567 (34,433)
Miscellaneous permits 1,500 1,500 1,155 (345)
Business regulatory permits 35,000 35,000 31,134 (3,866)
Golf cart permits - - 1,900 1,900
Valet parking permits 500 500 675 175
Total Licenses and Permits 726,600 1,121,600 1,144,404 22,804
Intergovernmental
State mandate cost - - 12,167 12,167
Motor vehicle in-lieu fees 21,000 21,000 26,709 5,709
Monthly parking bail 7,500 7,500 16,278 8,778
Reimbursement RDA costs 750,000 750,000 842,562 92,562
Other reimbursements 745,000 745,000 546,092 (198,908)
Total Intergovernmental 1,523,500 1,523,500 1,443,808 (79,692)
Rental income 160,000 160,000 161,038 1,038
Charges for Services
Subdivision fees 200,000 200,000 165,393 (34,607)
Zoning fees 120,000 120,000 66,177 (53,823)
Plan check fees 450,000 450,000 691,096 241,096
Sale of maps and publications 3,500 3,500 6,706 3,206
Microfilm fees 10,000 10,000 6,727 (3,273)
Vehicle impact fee 480,000 480,000 584,487 104,487
Other fees 65,000 65,000 138,662 73,662
Total Charges for Services 1,328,500 1,328,500 1,659,248 330,748
Investment Earnings
Interest income 502,500 902,500 996,680 94,180
Interest on notes receivable 175,000 175,000 240,882 65,882
Total investment Earnings 677,500 1,077,500 1,237,562 160,062
Fines and Forfeitures
Vehicle code fines 20,000 20,000 58,527 38,527
Municipal court fines 20,000 20,000 2,795 (17,205)
VICR fees 75,000 75,000 88,254 13,254
Total Fines and Forfeitures 115,000 115,000 149,576 34,576
Miscellaneous
Code compliance 13,000 13,000 88,648 75,648
Strong motion instrument fee 10,000 10,000 - (10,000)
Special investigation fee 3,500 3,500 185 (3,315)
Certificate of compliance fee 1,675 1,675 900 (775)
Nuisance abatement tax 30,000 30,000 - (30,000)
Abandoned vehicle abatement 50,000 50,000 75,902 25,902
Fire inspection service 225,000 225,000 88,249 (136,751)
Other revenue 75,000 75,000 255,425 180,425
Total Miscellaneous 408,175 408,175 509,309 101,134
Transfers in 1,802,500 1,802,500 1,610,830 (191,670)
Amounts Available for Appropriations 140,272,819 144,777,819 144,838,773 60,954
See Notes to Required Supplementary Information 102
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Charges to Appropriation (Outflow):
General Government
City Council 282,296 282,296 228,757 53,539
City Clerk 867,485 909,485 909,299 186
Legislative Advocacy 36,200 36,200 36,180 20
Elections 500 500 394 106
City Attorney 260,000 260,000 251,365 8,635
Legal Special Services 280,000 310,000 255,026 54,974
City Manager 559,486 567,227 542,124 25,103
Community Services 451,145 451,145 389,013 62,132
Finance 1,691,600 1,691,600 1,667,081 24,519
Independent Audit 85,000 85,000 47,733 37,267
Human Resources 832,047 962,852 899,325 63,527
General Services 3,365,400 5,219,365 4,977,560 241,805
Information Technology 968,042 978,101 834,001 144,100
Unemployment Insurance 10,000 17,000 16,996 4
Insurance 558,439 558,439 405,471 152,968
Retiree Funding - 250,000 250,000 -
Contributions to other Agencies 657,500 662,500 547,518 114,982
Community Promotions 1,085,000 1,179,881 1,179,305 576
Marketing 1,303,000 1,222,540 1,177,746 44,794
Visitors Info Center 182,225 182,225 157,183 25,042
Economic Development Center 964,950 768,945 754,376 14,569
Planning & Community Development 2,444,185 2,322,921 2,309,702 13,219
Total General Government 16,884,500 18,918,222 17,836,155 1,082,067
Public Safety
Police Services 21,955,729 20,555,729 20,506,082 49,647
Animal Regulation 245,000 245,000 233,933 11,067
Traffic Safety 253,600 356,659 348,852 7,807
Building and Safety 1,790,300 1,690,300 1,579,734 110,566
Total Public Safety 24,244,629 22,847,688 22,668,601 179,087
Parks, Recreation and Culture
Civic Center Park 1,109,311 1,148,489 1,105,936 42,553
Park Maintenance 1,057,686 1,063,754 826,089 237,665
Landscaping Service 1,868,214 1,947,609 1,817,582 130,027
Civic Center Park - Improvement 254,500 279,500 86,339 193,161
Total Parks, Recreation and Culture 4,289,711 4,439,352 3,835,946 603,406
Public Works
Administration 2,537,263 2,453,263 2,333,897 119,366
Street Maintenance 2,188,600 2,088,600 2,020,797 67,803
Street Resurfacing - 192,136 2,760 189,376
Curb & Gutter 25,000 35,000 - 35,000
Parking Lot 50,000 50,000 11,923 38,077
Corporate Yard 64,500 68,600 68,508 92
Auto Fleet / Equipment 362,000 262,000 223,704 38,296
Public Bldg - Opr/Maint.785,500 785,500 675,740 109,760
Portola Comm Center 75,000 117,000 116,014 986
Storm Water Permit 60,000 60,000 37,118 22,882
Total Public Works 6,147,863 6,112,099 5,490,461 621,638
Capital outlay - 162,000 161,225 775
Transfers out 4,698,540 4,478,540 4,475,837 2,703
Total Charges to Appropriations 56,265,243 56,957,901 54,468,225 2,489,676
Budgetary Fund Balance, June 30 84,007,576$ 87,819,918$ 90,370,548$ 2,550,630$
See Notes to Required Supplementary Information 103
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
MEASURE A
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 21,545,267$ 21,545,267$ 21,545,267$ -$
Resources (Inflows):
Taxes 2,660,000 2,660,000 2,765,692 105,692
Intergovernmental 3,165,000 3,165,000 200,450 (2,964,550)
Investment earnings 73,000 73,000 254,693 181,693
Miscellaneous -- 75,000 75,000
Amounts Available for Appropriations 27,443,267 27,443,267 24,841,102 (2,602,165)
Charges to Appropriation (Outflow):
Public works 6,077,000 29,986,596 2,871,083 27,115,513
Total Charges to Appropriations 6,077,000 29,986,596 2,871,083 27,115,513
Budgetary Fund Balance, June 30 21,366,267$ (2,543,329)$ 21,970,019$ 24,513,348$
See Notes to Required Supplementary Information 104
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,302,300$ 2,302,300$ 2,302,300$ -$
Resources (Inflows):
Taxes 5,560,960 5,560,960 5,909,280 348,320
Assessments 2,115,800 2,115,800 2,237,916 122,116
Intergovernmental 1,050,000 1,050,000 1,188,743 138,743
Charges for services - 300,000 - (300,000)
Investment earnings 10,000 10,000 21,772 11,772
Miscellaneous 20,000 20,000 62,247 42,247
Transfers in 3,668,540 3,668,540 3,668,540 -
Amounts Available for Appropriations 14,727,600 15,027,600 15,390,798 363,198
Charges to Appropriation (Outflow):
Public safety 12,825,300 13,454,251 13,476,152 (21,901)
Capital outlay 50,000 50,000 19,579 30,421
Total Charges to Appropriations 12,875,300 13,504,251 13,495,731 8,520
Budgetary Fund Balance, June 30 1,852,300$ 1,523,349$ 1,895,067$ 371,718$
See Notes to Required Supplementary Information 105
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING ASSET FUND
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 47,521,482$ 47,521,482$ 47,521,482$ -$
Resources (Inflows):
Investment earnings 80,000 80,000 470,234 390,234
Miscellaneous -- 45,748 45,748
Amounts Available for Appropriations 47,601,482 47,601,482 48,037,464 435,982
Charges to Appropriation (Outflow):
Housing and redevelopment 475,300 1,026,300 722,168 304,132
Total Charges to Appropriations 475,300 1,026,300 722,168 304,132
Budgetary Fund Balance, June 30 47,126,182$ 46,575,182$ 47,315,296$ 740,114$
See Notes to Required Supplementary Information 106
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 20,235,662$ 20,235,662$ 20,235,662$ -$
Resources (Inflows):
Rents 6,446,228 6,446,228 6,514,594 68,366
Intergovernmental - - 632,541 632,541
Investment earnings 70,000 70,000 264,030 194,030
Miscellaneous - - 121,443 121,443
Amounts Available for Appropriations 26,751,890 26,751,890 27,768,270 1,016,380
Charges to Appropriation (Outflow):
Housing and redevelopment 7,720,418 13,487,677 7,243,409 6,244,268
Capital outlay - 1,772,248 10,424 1,761,824
Transfers out 532,870 532,870 536,434 (3,564)
Total Charges to Appropriations 8,253,288 15,792,795 7,790,267 8,002,528
Budgetary Fund Balance, June 30 18,498,602$ 10,959,095$ 19,978,003$ 9,018,908$
See Notes to Required Supplementary Information 107
CITY OF PALM DESERT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2018
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 1, by Council action.
6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted
in the United States of America for all governmental funds except for certain special revenue funds
and capital projects funds, which adopt project length budgets and debt service funds that are not
budgeted as effective budgetary control is achieved through debt indenture provisions. The
following funds did not have legally adopted budgets during the current fiscal year:
Other Governmental Funds
Library
Assessment District No. 94-3 Merano
Silver Spur Ranch
Highlands Undergrounding
CFD University Special Assessment District
Assessment 29
108
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
109
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments 21,763,069$ 14,270,347$ 199,777$ 36,233,193$
Receivables:
Accounts 475,999 4,610 -480,609
Assessments - - 1,227,632 1,227,632
Loans 3,381,820 - - 3,381,820
Interest 266,315 2,321,644 - 2,587,959
Prepaid costs 1,250 - -1,250
Due from other governments 442,772 2,132 4,627 449,531
Due from other funds - 500,000 -500,000
Inventories 4,868 - -4,868
Restricted assets:
Cash and investments with fiscal agents - 2,020,373 - 2,020,373
Advances to Successor Agency 654,000 12,765,000 - 13,419,000
TOTAL ASSETS 26,990,093$ 31,884,106$ 1,432,036$ 60,306,235$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable 1,246,667$ 190,356$ 3,510$ 1,440,533$
Accrued liabilities 9,308 - -9,308
Unearned revenues 151,594 63,041 -214,635
Deposits payable 148,140 107,430 109,526 365,096
Due to other funds 2,268,800 2,553,000 - 4,821,800
TOTAL LIABILITIES 3,824,509 2,913,827 113,036 6,851,372
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 281,928 2,297,700 1,227,632 3,807,260
Total Deferred Inflows of Resources 281,928 2,297,700 1,227,632 3,807,260
FUND BALANCES:
Nonspendable:
Prepaid costs 1,250 - -1,250
Restricted for:
Public safety 1,202,801 - - 1,202,801
Capital Projects - 2,030,638 - 2,030,638
Debt service - - 91,368 91,368
Street related purposes 3,579,943 - - 3,579,943
Low income housing 2,858,798 - - 2,858,798
Public facilities 4,405,755 - - 4,405,755
Special programs 5,958,776 1,383,878 - 7,342,654
Committed to:
Aquatic center 2,134,436 - - 2,134,436
Energy loan program 2,741,897 - - 2,741,897
Assigned to:
Capital projects - 8,597,824 - 8,597,824
Property acquisition - 420,387 -420,387
Public facilities - 11,412,183 - 11,412,183
Special programs - 667,255 -667,255
Street related purposes - 2,160,414 -2,160,414
TOTAL FUND BALANCES 22,883,656 26,672,579 91,368 49,647,603
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 26,990,093$ 31,884,106$ 1,432,036$ 60,306,235$
Special
Revenue
Funds
Total Other
Governmental
Funds
Debt Service
Fund
Capital
Projects
Funds
110
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Taxes 295,433$ -$ -$ 295,433$
Special assessments collected 1,072,061 - 135,269 1,207,330
Licenses and permits - 181,645 - 181,645
Intergovernmental revenues 2,082,629 134,533 - 2,217,162
Charges for services 1,235,573 -- 1,235,573
Investment earnings 517,250 218,460 1,967 737,677
Fines and forfeitures 12,794 -- 12,794
Miscellaneous 33,750 2,039,045 - 2,072,795
TOTAL REVENUES 5,249,490 2,573,683 137,236 7,960,409
EXPENDITURES:
Current:
General government 997,600 424,743 22,604 1,444,947
Public safety 83,205 19,698 - 102,903
Parks, recreation and culture 1,459,940 504,582 - 1,964,522
Public works 3,470,473 272,087 - 3,742,560
Housing and redevelopment 557,224 -- 557,224
Capital outlay 284,629 148,344 - 432,973
Debt service:
Principal retirement 108,000 - 42,000 150,000
Interest and fiscal charges 189,980 - 70,991 260,971
TOTAL EXPENDITURES 7,151,051 1,369,454 135,595 8,656,100
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,901,561) 1,204,229 1,641 (695,691)
OTHER FINANCING SOURCES (USES)
Transfers in 1,265,361 68,621 - 1,333,982
Transfers out (13,917) (1,287,164) - (1,301,081)
TOTAL OTHER FINANCING
SOURCES (USES)1,251,444 (1,218,543) - 32,901
NET CHANGE IN FUND BALANCES (650,117) (14,314) 1,641 (662,790)
FUND BALANCES - BEGINNING OF YEAR 23,533,773 26,686,893 89,727 50,310,393
FUND BALANCES - END OF YEAR 22,883,656$ 26,672,579$ 91,368$ 49,647,603$
Total Other
Governmental
Funds
Special
Revenue
Funds
Capital
Projects
Funds
Debt Service
Fund
111
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112
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.
Housing Mitigation Fee Fund - This fund is used to account for fees collected from construction of
commercial and office buildings for low and moderate income mitigation purposes to be used strictly for
projects and programs that benefit the low and moderate income households.
Community Development Block Grant Fund - This fund is used to account for the receipts and
expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development.
Child Care Program Fund – This fund is used to collect funds from developers for the purpose of
providing child care programs.
Public Safety Police Grants Fund - This fund is used to account for grants received from the U.S.
Department of Justice under the Local Law Enforcement Block Grant Program for the purpose of
purchasing equipment related to public safety.
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 Drainage 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.
Parks and Recreational 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.
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.
Recycling Fund - This fund is used to account for resources resulting from lower landfill tipping fees which
have been reduced to zero in 2013, and State grant funds. Funds will be utilized for purposes of
promoting recycling and recycling related activities.
113
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Energy Independence Loan Fund – This fund is used to provide funding for the AB811 Energy Loans and
collect assessments from those AB811 loans through property tax collections. The assessments
collected will be used to service debt issued and to provide additional funding for the AB811 loans.
Air Quality Management Fund – This fund accounts for receipts from South Coast Air Quality
Management District, sixty percent of which is disbursed to the Coachella Valley Association of
Governments.
Aquatic Center Fund – This fund is used to account for revenues and expenditures for the City’s aquatic
facility.
Cannabis Compliance Fund – This fund is used to account for revenues and expenditures for the City’s
cannabis compliance activity.
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. Proceeds from all charges
are used for the promotion of business activities in the area.
Various Landscape and Lighting District Funds – These funds are used to account for expenditures and
receipts of property taxes and service fees levied to the property owners in the various landscaping and
lighting districts, which were formed to provide landscaping and street lighting maintenance. Individual
landscaping and lighting funds are set up for Districts No 1 through 17.
Former RDA Low Income Housing Fund – This fund is used to account for the management and
operation of the City’s housing assets.
114
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115
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments -$ 2,136,045$ 2,858,798$ 31,510$
Receivables:
Accounts - - - -
Loans - - - 15,613
Interest - - - -
Prepaid costs - - - -
Due from other governments 664 195,065 - 204,965
Inventories - - - -
Advances to Successor Agency - - - -
TOTAL ASSETS 664$ 2,331,110$ 2,858,798$ 252,088$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable -$ 755,006$ -$ 204,965$
Accrued liabilities - - - -
Unearned revenues - - - -
Deposits payable - - - -
Due to other funds - - - -
TOTAL LIABILITIES - 755,006 - 204,965
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - 15,613
Total Deferred Inflows of Resources - - - 15,613
FUND BALANCES:
Nonspendable:
Prepaid costs - - - -
Restricted for:
Public safety - - - -
Street related purposes 664 1,576,104 - -
Low income housing - - 2,858,798 -
Public facilities - - -
Special programs - - - 31,510
Committed to:
Aquatic center - - - -
Energy loan program - - - -
TOTAL FUND BALANCES 664 1,576,104 2,858,798 31,510
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 664$ 2,331,110$ 2,858,798$ 252,088$
Traffic Safety Gas Tax
Housing
Mitigation Fee
Community
Development
Block Grant
116
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Loans
Interest
Prepaid costs
Due from other governments
Inventories
Advances to Successor Agency
TOTAL ASSETS
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
(CONTINUED)
1,332,828$ 100,172$ 1,133,320$ 1,620,210$
- - - -
- - - -
- - 117,720 -
- - - -
- 25,000 - -
- - - -
- - 654,000 -
1,332,828$ 125,172$ 1,905,040$ 1,620,210$
-$ 10,985$ -$ 27,353$
- - - -
- 105,807 - -
- - - -
- - 130,800 -
- 116,792 130,800 27,353
- - 117,720 -
- - 117,720 -
- - - -
- 8,380 - -
- - - 1,592,857
- - - -
1,332,828 - 1,656,520 -
- - - -
- - - -
- - - -
1,332,828 8,380 1,656,520 1,592,857
1,332,828$ 125,172$ 1,905,040$ 1,620,210$
Public Safety
Police Grants
New
Construction
Tax
Planned
Drainage
Child Care
Program
117
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Loans
Interest
Prepaid costs
Due from other governments
Inventories
Advances to Successor Agency
TOTAL ASSETS
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
1,419,507$ 410,318$ 1,108,171$ 2,478,570$
- - - 58,439
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
1,419,507$ 410,318$ 1,108,171$ 2,537,009$
3,100$ -$ -$ 29,991$
- - - 751
- - - 12,141
- - - -
- - - -
3,100 - - 42,883
- - - -
- - - -
- - - -
- - 1,108,171 -
- 410,318 - -
- - - -
1,416,407 - - -
- - - 2,494,126
- - - -
- - - -
1,416,407 410,318 1,108,171 2,494,126
1,419,507$ 410,318$ 1,108,171$ 2,537,009$
Parks and
Recreational
Facilities
Traffic
Signals
Fire Facilities
Restoration Recycling
118
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Loans
Interest
Prepaid costs
Due from other governments
Inventories
Advances to Successor Agency
TOTAL ASSETS
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
(CONTINUED)
1,513,690$ 123,166$ 1,924,678$ 233,250$
- 16,705 399,715 1,140
3,366,207 - - -
148,595 - - -
- - - -
- - - -
- - 4,868 -
- - - -
5,028,492$ 139,871$ 2,329,261$ 234,390$
-$ 12,529$ 161,179$ -$
- - - -
- - 33,646 -
- - - 148,140
2,138,000 - - -
2,138,000 12,529 194,825 148,140
148,595 - - -
148,595 - - -
- - - -
- - - 86,250
- - - -
- - - -
- - - -
- 127,342 - -
- - 2,134,436 -
2,741,897 - - -
2,741,897 127,342 2,134,436 86,250
5,028,492$ 139,871$ 2,329,261$ 234,390$
Energy
Independence
Loan
Air Quality
Management
Aquatic
Center
Cannabis
Compliance
119
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Loans
Interest
Prepaid costs
Due from other governments
Inventories
Advances to Successor Agency
TOTAL ASSETS
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
LIABILITIES:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
Total Deferred Inflows of Resources
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
69,535$ 3,260,744$ 8,557$ 21,763,069$
- - - 475,999
- - - 3,381,820
- - - 266,315
1,250 - - 1,250
- 17,078 - 442,772
- - - 4,868
- - - 654,000
70,785$ 3,277,822$ 8,557$ 26,990,093$
5,949$ 35,610$ -$ 1,246,667$
- - 8,557 9,308
- - - 151,594
- - - 148,140
- - - 2,268,800
5,949 35,610 8,557 3,824,509
- - - 281,928
- - - 281,928
1,250 - - 1,250
- - - 1,202,801
- - - 3,579,943
- - - 2,858,798
- - - 4,405,755
63,586 3,242,212 - 5,958,776
- - - 2,134,436
- - - 2,741,897
64,836 3,242,212 - 22,883,656
70,785$ 3,277,822$ 8,557$ 26,990,093$
Total Other
Special
Revenue Funds
El Paseo
Assessment
District
Landscape
and Lighting
Districts Nos.
1 - 17
Former RDA
Low Income
Housing
120
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121
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Taxes -$ -$ 30,975$ -$
Special assessments collected -- - -
Intergovernmental revenues - 1,463,604 - 405,876
Charges for services -- - -
Investment earnings 59 24,227 34,599 178
Fines and forfeitures 12,794 - - -
Miscellaneous -- 26,699 7,000
TOTAL REVENUES 12,853 1,487,831 92,273 413,054
EXPENDITURES:
Current:
General government -- - 405,876
Public safety -- - -
Parks, recreation and culture -- - -
Public works - 2,264,826 - -
Housing and redevelopment -- 30,540 -
Capital outlay -- - -
Debt service:
Principal retirement -- - -
Interest and fiscal charges -- - -
TOTAL EXPENDITURES - 2,264,826 30,540 405,876
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 12,853 (776,995) 61,733 7,178
OTHER FINANCING SOURCES (USES)
Transfers in -- - -
Transfers out (13,633) - - -
TOTAL OTHER FINANCING
SOURCES (USES) (13,633) - - -
NET CHANGE IN FUND BALANCES (780) (776,995) 61,733 7,178
FUND BALANCES - BEGINNING OF YEAR 1,444 2,353,099 2,797,065 24,332
FUND BALANCES - END OF YEAR 664$ 1,576,104$ 2,858,798$ 31,510$
Traffic Safety Gas Tax
Housing
Mitigation
Fee
Community
Development
Block Grant
122
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
(CONTINUED)
43,649$ -$ 158,147$ 7,330$
- - - -
- 83,291 - -
- - - -
15,804 905 12,274 21,852
- - - -
- - - -
59,453 84,196 170,421 29,182
- - - -
- 81,685 - -
- - - -
- - - 335,517
- - - -
- 1,606 - 98,807
- - - -
- - - -
- 83,291 - 434,324
59,453 905 170,421 (405,142)
- - - -
- - - -
- - - -
59,453 905 170,421 (405,142)
1,273,375 7,475 1,486,099 1,997,999
1,332,828$ 8,380$ 1,656,520$ 1,592,857$
Child Care
Program
Public
Safety Police
Grants
New
Construction
Tax
Planned
Drainage
123
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
17,054$ 16,512$ 21,766$ -$
- - - -
- - - 9,091
- - - 345,834
17,882 4,912 13,318 31,757
- - - -
- - - 51
34,936 21,424 35,084 386,733
- - - 300,458
- - - -
- - - 18,879
- 780 - 227,065
- - - -
66,700 - - 78,876
- - - -
- - - -
66,700 780 - 625,278
(31,764) 20,644 35,084 (238,545)
- - - -
- - - (284)
- - - (284)
(31,764) 20,644 35,084 (238,829)
1,448,171 389,674 1,073,087 2,732,955
1,416,407$ 410,318$ 1,108,171$ 2,494,126$
Parks and
Recreational
Facilities
Traffic
Signals
Fire
Facilities
Restoration Recycling
124
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
(CONTINUED)
-$ -$ -$ -$
- - - -
- 120,767 - -
- - 802,946 86,793
283,086 1,092 18,878 977
- - - -
- - - -
283,086 121,859 821,824 87,770
5,516 54,028 - -
- - - 1,520
- - 1,441,061 -
- - - -
- - - -
- - 38,640 -
108,000 - - -
189,980 - - -
303,496 54,028 1,479,701 1,520
(20,410) 67,831 (657,877) 86,250
- - 657,877 -
- - - -
- - 657,877 -
(20,410) 67,831 - 86,250
2,762,307 59,511 2,134,436 -
2,741,897$ 127,342$ 2,134,436$ 86,250$
Energy
Independence
Loan
Air Quality
Management
Aquatic
Center
Cannabis
Compliance
125
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Taxes
Special assessments collected
Intergovernmental revenues
Charges for services
Investment earnings
Fines and forfeitures
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Housing and redevelopment
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
-$ -$ -$ 295,433$
245,387 826,674 - 1,072,061
---2,082,629
---1,235,573
-35,450 -517,250
---12,794
---33,750
245,387 862,124 -5,249,490
231,722 - - 997,600
---83,205
---1,459,940
-642,285 - 3,470,473
--526,684 557,224
---284,629
---108,000
-- -189,980
231,722 642,285 526,684 7,151,051
13,665 219,839 (526,684) (1,901,561)
-80,800 526,684 1,265,361
-- -(13,917)
-80,800 526,684 1,251,444
13,665 300,639 -(650,117)
51,171 2,941,573 -23,533,773
64,836$ 3,242,212$ -$ 22,883,656$
El Paseo
Assessment
District
Landscape
and Lighting
Districts Nos.
1 - 17
Former RDA
Low Income
Housing
Total Other
Special Revenue
Funds
126
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,444$ 1,444$ 1,444$ -$
Resources (Inflows):
Investment earnings 100 100 59 (41)
Fines and forfeitures 135,000 135,000 12,794 (122,206)
Amounts Available for Appropriations 136,544 136,544 14,297 (122,247)
Charges to Appropriation (Outflow):
Transfers out 135,000 135,000 13,633 121,367
Total Charges to Appropriations 135,000 135,000 13,633 121,367
Budgetary Fund Balance, June 30 1,544$ 1,544$ 664$ (880)$
127
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
GAS TAX
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,353,099$ 2,353,099$ 2,353,099$ -$
Resources (Inflows):
Intergovernmental 1,381,145 1,859,892 1,463,604 (396,288)
Investment earnings 2,000 2,000 24,227 22,227
Amounts Available for Appropriations 3,736,244 4,214,991 3,840,930 (374,061)
Charges to Appropriation (Outflow):
Public works 1,500,000 2,778,747 2,264,826 513,921
Total Charges to Appropriations 1,500,000 2,778,747 2,264,826 513,921
Budgetary Fund Balance, June 30 2,236,244$ 1,436,244$ 1,576,104$ 139,860$
128
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
HOUSING MITIGATION FEE
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,797,065$ 2,797,065$ 2,797,065$ -$
Resources (Inflows):
Taxes 111,900 111,900 30,975 (80,925)
Investment earnings 15,000 15,000 34,599 19,599
Miscellaneous - - 26,699 26,699
Amounts Available for Appropriations 2,923,965 2,923,965 2,889,338 (34,627)
Charges to Appropriation (Outflow):
Housing and redevelopment 310,000 310,000 30,540 279,460
Total Charges to Appropriations 310,000 310,000 30,540 279,460
Budgetary Fund Balance, June 30 2,613,965$ 2,613,965$ 2,858,798$ 244,833$
129
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 24,332$ 24,332$ 24,332$ -$
Resources (Inflows):
Intergovernmental 294,000 294,000 405,876 111,876
Investment earnings - - 178 178
Miscellaneous - - 7,000 7,000
Amounts Available for Appropriations 318,332 318,332 437,386 119,054
Charges to Appropriation (Outflow):
General government 294,000 415,669 405,876 9,793
Total Charges to Appropriations 294,000 415,669 405,876 9,793
Budgetary Fund Balance, June 30 24,332$ (97,337)$ 31,510$ 128,847$
130
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CHILD CARE PROGRAM
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,273,375$ 1,273,375$ 1,273,375$ -$
Resources (Inflows):
Taxes 68,700 68,700 43,649 (25,051)
Investment earnings 4,000 4,000 15,804 11,804
Amounts Available for Appropriations 1,346,075 1,346,075 1,332,828 (13,247)
Charges to Appropriation (Outflow):
Capital outlay - 1,079,440 - 1,079,440
Total Charges to Appropriations - 1,079,440 - 1,079,440
Budgetary Fund Balance, June 30 1,346,075$ 266,635$ 1,332,828$ 1,066,193$
131
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PUBLIC SAFETY POLICE GRANTS
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 7,475$ 7,475$ 7,475$ -$
Resources (Inflows):
Intergovernmental 100,000 100,000 83,291 (16,709)
Investment earnings - - 905 905
Amounts Available for Appropriations 107,475 107,475 91,671 (15,804)
Charges to Appropriation (Outflow):
Public safety 100,000 100,000 81,685 18,315
Capital outlay - - 1,606 (1,606)
Total Charges to Appropriations 100,000 100,000 83,291 16,709
Budgetary Fund Balance, June 30 7,475$ 7,475$ 8,380$ 905$
132
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
NEW CONSTRUCTION TAX
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,486,099$ 1,486,099$ 1,486,099$ -$
Resources (Inflows):
Taxes 288,300 288,300 158,147 (130,153)
Investment earnings 6,000 6,000 12,274 6,274
Amounts Available for Appropriations 1,780,399 1,780,399 1,656,520 (123,879)
Budgetary Fund Balance, June 30 1,780,399$ 1,780,399$ 1,656,520$ (123,879)$
133
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PLANNED DRAINAGE
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,997,999$ 1,997,999$ 1,997,999$ -$
Resources (Inflows):
Taxes 75,000 75,000 7,330 (67,670)
Investment earnings 3,100 3,100 21,852 18,752
Amounts Available for Appropriations 2,076,099 2,076,099 2,027,181 (48,918)
Charges to Appropriation (Outflow):
Public works 80,000 1,515,113 335,517 1,179,596
Capital outlay - 100,000 98,807 1,193
Total Charges to Appropriations 80,000 1,615,113 434,324 1,180,789
Budgetary Fund Balance, June 30 1,996,099$ 460,986$ 1,592,857$ 1,131,871$
134
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATIONAL FACILITIES
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,448,171$ 1,448,171$ 1,448,171$ -$
Resources (Inflows):
Taxes 475,000 475,000 17,054 (457,946)
Investment earnings 9,600 9,600 17,882 8,282
Amounts Available for Appropriations 1,932,771 1,932,771 1,483,107 (449,664)
Charges to Appropriation (Outflow):
Capital outlay 175,000 295,000 66,700 228,300
Total Charges to Appropriations 175,000 295,000 66,700 228,300
Budgetary Fund Balance, June 30 1,757,771$ 1,637,771$ 1,416,407$ (221,364)$
135
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
TRAFFIC SIGNALS
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 389,674$ 389,674$ 389,674$ -$
Resources (Inflows):
Taxes 50,000 50,000 16,512 (33,488)
Investment earnings 1,300 1,300 4,912 3,612
Amounts Available for Appropriations 440,974 440,974 411,098 (29,876)
Charges to Appropriation (Outflow):
Public works 175,000 350,000 780 349,220
Total Charges to Appropriations 175,000 350,000 780 349,220
Budgetary Fund Balance, June 30 265,974$ 90,974$ 410,318$ 319,344$
136
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
FIRE FACILITIES RESTORATION
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,073,087$ 1,073,087$ 1,073,087$ -$
Resources (Inflows):
Taxes 83,700 83,700 21,766 (61,934)
Investment earnings 3,500 3,500 13,318 9,818
Amounts Available for Appropriations 1,160,287 1,160,287 1,108,171 (52,116)
Charges to Appropriation (Outflow):
Capital outlay - 1,000,171 - 1,000,171
Total Charges to Appropriations - 1,000,171 - 1,000,171
Budgetary Fund Balance, June 30 1,160,287$ 160,116$ 1,108,171$ 948,055$
137
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
RECYCLING
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,732,955$ 2,732,955$ 2,732,955$ -$
Resources (Inflows):
Intergovernmental - - 9,091 9,091
Charges for services 140,000 140,000 345,834 205,834
Investment earnings 10,000 10,000 31,757 21,757
Miscellaneous - - 51 51
Amounts Available for Appropriations 2,882,955 2,882,955 3,119,688 236,733
Charges to Appropriation (Outflow):
General government 494,875 544,388 300,458 243,930
Parks, recreation and culture 30,000 30,000 18,879 11,121
Public works 140,000 340,000 227,065 112,935
Capital outlay 185,000 205,000 78,876 126,124
Transfers out 40,000 40,000 284 39,716
Total Charges to Appropriations 889,875 1,159,388 625,562 533,826
Budgetary Fund Balance, June 30 1,993,080$ 1,723,567$ 2,494,126$ 770,559$
138
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ENERGY INDEPENDENCE LOAN
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,762,307$ 2,762,307$ 2,762,307$ -$
Resources (Inflows):
Investment earnings 542,500 542,500 283,086 (259,414)
Amounts Available for Appropriations 3,304,807 3,304,807 3,045,393 (259,414)
Charges to Appropriation (Outflow):
General government 10,000 10,000 5,516 4,484
Debt service:
Principal retirement 108,000 108,000 108,000 -
Interest and fiscal charges 189,980 189,980 189,980 -
Total Charges to Appropriations 307,980 307,980 303,496 4,484
Budgetary Fund Balance, June 30 2,996,827$ 2,996,827$ 2,741,897$ (254,930)$
139
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY MANAGEMENT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 59,511$ 59,511$ 59,511$ -$
Resources (Inflows):
Intergovernmental 64,000 64,000 120,767 56,767
Investment earnings 300 300 1,092 792
Amounts Available for Appropriations 123,811 123,811 181,370 57,559
Charges to Appropriation (Outflow):
General government 50,750 50,750 54,028 (3,278)
Capital outlay 7,000 7,000 - 7,000
Total Charges to Appropriations 57,750 57,750 54,028 3,722
Budgetary Fund Balance, June 30 66,061$ 66,061$ 127,342$ 61,281$
140
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
AQUATIC CENTER
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,134,436$ 2,134,436$ 2,134,436$ -$
Resources (Inflows):
Charges for services 795,550 795,550 802,946 7,396
Investment earnings 7,000 7,000 18,878 11,878
Transfers in 680,000 680,000 657,877 (22,123)
Amounts Available for Appropriations 3,616,986 3,616,986 3,614,137 (2,849)
Charges to Appropriation (Outflow):
Parks, recreation and culture 1,432,550 1,432,550 1,441,061 (8,511)
Capital outlay 50,000 66,191 38,640 27,551
Total Charges to Appropriations 1,482,550 1,498,741 1,479,701 19,040
Budgetary Fund Balance, June 30 2,134,436$ 2,118,245$ 2,134,436$ 16,191$
141
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CANNABIS COMPLIANCE
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Charges for services - 100,000 86,793 (13,207)
Investment earnings - - 977 977
Amounts Available for Appropriations - 100,000 87,770 (12,230)
Charges to Appropriation (Outflow):
Public safety - 100,000 1,520 98,480
Total Charges to Appropriations - 100,000 1,520 98,480
Budgetary Fund Balance, June 30 -$ -$ 86,250$ 86,250$
142
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
EL PASEO ASSESSMENT DISTRICT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 51,171$ 51,171$ 51,171$ -$
Resources (Inflows):
Assessments 250,000 250,000 245,387 (4,613)
Amounts Available for Appropriations 301,171 301,171 296,558 (4,613)
Charges to Appropriation (Outflow):
General government 250,000 250,000 231,722 18,278
Total Charges to Appropriations 250,000 250,000 231,722 18,278
Budgetary Fund Balance, June 30 51,171$ 51,171$ 64,836$ 13,665$
143
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
LANDSCAPE AND LIGHTING DISTRICT NOS 1 -17
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,941,573$ 2,941,573$ 2,941,573$ -$
Resources (Inflows):
Assessments 830,381 830,381 826,674 (3,707)
Investment earnings 1,400 1,400 35,450 34,050
Transfers in 100,000 100,000 80,800 (19,200)
Amounts Available for Appropriations 3,873,354 3,873,354 3,884,497 11,143
Charges to Appropriation (Outflow):
Public works 869,055 876,557 642,285 234,272
Total Charges to Appropriations 869,055 876,557 642,285 234,272
Budgetary Fund Balance, June 30 3,004,299$ 2,996,797$ 3,242,212$ 245,415$
144
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
FORMER RDA LOW INCOME HOUSING
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$ -$ -$ -$
Resources (Inflows):
Transfers in 532,870 532,870 526,684 (6,186)
Amounts Available for Appropriations 532,870 532,870 526,684 (6,186)
Charges to Appropriation (Outflow):
Housing and redevelopment 531,870 531,870 526,684 5,186
Capital outlay 1,000 1,000 - 1,000
Total Charges to Appropriations 532,870 532,870 526,684 6,186
Budgetary Fund Balance, June 30 -$ -$ -$ -$
145
THIS PAGE INTENTIONALLY LEFT BLANK
146
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.
Capital Projects Reserve - 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.
Economic Development - This fund is used to account for façade enhancement projects for Palm Desert
businesses utilizing funds from the sales of certain City-owned properties.
Parks 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.
Art 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.
Signalization Fund - This fund is used to account for resources and expenditures for capital improvement
projects that are related to the acquisition and maintenance of traffic signals.
Capital Golf 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.
Buildings Fund - This fund is used to account for resources and expenditures for capital improvement
projects that are related to the improvement and maintenance of public facilities and structures.
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.
Special Assessment District Funds - This fund is used to account for the construction of public
improvements from proceeds resulting from the creation of various assessment Districts.
Assessment District No. 94-3 Merano
Silver Spur Ranch
Highlands Undergrounding
CFD University Special Assessment
Assessment 29
147
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments 2,708,487$ 2,056,936$ 737,119$ 85,380$
Receivables:
Accounts - - - -
Interest 1,440,000 - - 857,700
Due from other governments 2,132 - - -
Due from other funds - - - -
Restricted assets:
Cash and investments with fiscal agents - - - -
Advances to Successor Agency 8,000,000 - - 4,765,000
TOTAL ASSETS 12,150,619$ 2,056,936$ 737,119$ 5,708,080$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable 29,367$ 131$ -$ -$
Unearned revenues 63,041 - - -
Deposits payable - - - -
Due to other funds 1,600,000 - - 953,000
TOTAL LIABILITIES 1,692,408 131 - 953,000
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 1,440,000 - - 857,700
TOTAL DEFERRED INFLOWS OF RESOURCES 1,440,000 - - 857,700
FUND BALANCES:
Restricted for:
Capital Projects - - - -
Special programs - - - -
Assigned to:
Capital projects 8,597,824 - - -
Property acquisition 420,387 - - -
Public facilities - - 737,119 3,897,380
Special programs - - - -
Street related purposes - 2,056,805 - -
TOTAL FUND BALANCES 9,018,211 2,056,805 737,119 3,897,380
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 12,150,619$ 2,056,936$ 737,119$ 5,708,080$
Capital
Projects
Reserve
Drainage
Facilities
Economic
Development
Parks and
Recreational
Facilities
148
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Interest
Due from other governments
Due from other funds
Restricted assets:
Cash and investments with fiscal agents
Advances to Successor Agency
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES:
Restricted for:
Capital Projects
Special programs
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
(CONTINUED)
1,500,372$ 103,609$ 3,031,517$ 3,378,392$
--4,610 -
--14,959 -
----
--500,000 -
----
----
1,500,372$ 103,609$ 3,551,086$ 3,378,392$
9,064$ -$ 48,200$ 103,594$
----
107,430 ---
----
116,494 -48,200 103,594
----
----
----
1,383,878 ---
----
----
-- 3,502,886 3,274,798
----
- 103,609 --
1,383,878 103,609 3,502,886 3,274,798
1,500,372$ 103,609$ 3,551,086$ 3,378,392$
Buildings
Art in Public
Places Signalization Capital Golf
149
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Interest
Due from other governments
Due from other funds
Restricted assets:
Cash and investments with fiscal agents
Advances to Successor Agency
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES:
Restricted for:
Capital Projects
Special programs
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
667,255$ -$ 604$ 21$
- - - -
- 261 - -
- - - -
- - - -
- 182,051 - -
- - - -
667,255$ 182,312$ 604$ 21$
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 182,312 604 21
- - - -
- - - -
- - - -
- - - -
667,255 - - -
- - - -
667,255 182,312 604 21
667,255$ 182,312$ 604$ 21$
Library
Assessment
District No. 94-
3 Merano
Silver Spur
Ranch
Highlands
Undergrounding
150
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
JUNE 30, 2018
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Interest
Due from other governments
Due from other funds
Restricted assets:
Cash and investments with fiscal agents
Advances to Successor Agency
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES:
LIABILITIES:
Accounts payable
Unearned revenues
Deposits payable
Due to other funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES:
Restricted for:
Capital Projects
Special programs
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
Street related purposes
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
-$ 655$ 14,270,347$
- - 4,610
8,724 - 2,321,644
- - 2,132
- - 500,000
1,838,322 - 2,020,373
- - 12,765,000
1,847,046$ 655$ 31,884,106$
-$ -$ 190,356
- - 63,041
- - 107,430
- - 2,553,000
- - 2,913,827
- - 2,297,700
- - 2,297,700
1,847,046 655 2,030,638
- - 1,383,878
- - 8,597,824
- - 420,387
- - 11,412,183
- - 667,255
- - 2,160,414
1,847,046 655 26,672,579
1,847,046$ 655$ 31,884,106$
Total Other
Capital Projects
Funds
CFD
University
Special
Assessment Assessment 29
151
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Licenses and permits -$ -$ -$ -$
Intergovernmental revenues 65,110 - 69,423 -
Investment earnings 35,252 25,158 8,595 1,043
Miscellaneous - - - -
TOTAL REVENUES 100,362 25,158 78,018 1,043
EXPENDITURES:
Current:
General government 7,879 - 75,000 -
Public safety - - - -
Parks, recreation and culture 24,653 - - -
Public works 270,206 1,881 - -
Capital outlay 103,617 - - -
TOTAL EXPENDITURES 406,355 1,881 75,000 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (305,993) 23,277 3,018 1,043
OTHER FINANCING SOURCES (USES)
Transfers in - - 68,621 -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES (USES)- - 68,621 -
NET CHANGE IN FUND BALANCES (305,993) 23,277 71,639 1,043
FUND BALANCES - BEGINNING OF YEAR 9,324,204 2,033,528 665,480 3,896,337
FUND BALANCES - END OF YEAR 9,018,211$ 2,056,805$ 737,119$ 3,897,380$
Capital
Projects
Reserve
Drainage
Facilities
Economic
Development
Parks and
Recreational
Facilities
152
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Licenses and permits
Intergovernmental revenues
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
(CONTINUED)
181,645$ -$ -$ -$
----
19,729 1,266 57,941 42,742
826 - 2,038,219 -
202,200 1,266 2,096,160 42,742
---341,864
---19,698
107,013 -372,916 -
----
---44,727
107,013 -372,916 406,289
95,187 1,266 1,723,244 (363,547)
----
(159,664)- (1,127,500)-
(159,664)- (1,127,500)-
(64,477)1,266 595,744 (363,547)
1,448,355 102,343 2,907,142 3,638,345
1,383,878$ 103,609$ 3,502,886$ 3,274,798$
Art in Public
Places Signalization Capital Golf Buildings
153
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Licenses and permits
Intergovernmental revenues
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
-$ -$ -$ -$
- - - -
- 2,186 8 -
- - - -
- 2,186 8 -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 2,186 8 -
- - - -
- - - -
- - - -
- 2,186 8 -
667,255 180,126 596 21
667,255$ 182,312$ 604$ 21$
Library
Assessment
District No. 94-
3 Merano
Silver Spur
Ranch
Highlands
Undergrounding
154
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2018
REVENUES:
Licenses and permits
Intergovernmental revenues
Investment earnings
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Parks, recreation and culture
Public works
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
-$ -$ 181,645$
- - 134,533
24,531 9 218,460
- - 2,039,045
24,531 9 2,573,683
- - 424,743
- - 19,698
- - 504,582
- - 272,087
- - 148,344
- - 1,369,454
24,531 9 1,204,229
- - 68,621
- - (1,287,164)
- - (1,218,543)
24,531 9 (14,314)
1,822,515 646 26,686,893
1,847,046$ 655$ 26,672,579$
Total Other
Capital
Projects Fund
CFD
University
Special
Assessment
District
Assessment
29
155
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROPERTIES
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 69,152,038$ 69,152,038$ 69,152,038$ -$
Resources (Inflows):
Investment earnings 250,100 250,100 640,924 390,824
Amounts Available for Appropriations 69,402,138 69,402,138 69,792,962 390,824
Charges to Appropriation (Outflow):
Parks and recreation - 667,245 667,245 -
Public works 5,020,000 13,020,000 79,748 12,940,252
Capital outlay 1,765,000 10,000,000 291,221 9,708,779
Total Charges to Appropriations 6,785,000 23,687,245 1,038,214 22,649,031
Budgetary Fund Balance, June 30 62,617,138$ 45,714,893$ 68,754,748$ 23,039,855$
156
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS RESERVE
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 9,324,204$ 9,324,204$ 9,324,204$ -$
Resources (Inflows):
Intergovernmental 2,370,000 2,370,000 65,110 (2,304,890)
Investment earnings 14,000 14,000 35,252 21,252
Amounts Available for Appropriations 11,708,204 11,708,204 9,424,566 (2,283,638)
Charges to Appropriation (Outflow):
General government - 120,188 7,879 112,309
Public safety 75,000 75,000 - 75,000
Parks, recreation and culture 4,500 282,291 24,653 257,638
Public works 870,000 1,398,407 270,206 1,128,201
Capital outlay 65,000 2,157,611 103,617 2,053,994
Total Charges to Appropriations 1,014,500 4,033,497 406,355 3,627,142
Budgetary Fund Balance, June 30 10,693,704$ 7,674,707$ 9,018,211$ 1,343,504$
157
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
DRAINAGE FACILITIES
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,033,528$ 2,033,528$ 2,033,528$ -$
Resources (Inflows):
Investment earnings 4,000 4,000 25,158 21,158
Amounts Available for Appropriations 2,037,528 2,037,528 2,058,686 21,158
Charges to Appropriation (Outflow):
Public works - 476,292 1,881 474,411
Capital outlay - 10,000 - 10,000
Total Charges to Appropriations -486,292 1,881 484,411
Budgetary Fund Balance, June 30 2,037,528$ 1,551,236$ 2,056,805$ 505,569$
158
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ECONOMIC DEVELOPMENT
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 665,480$ 665,480$ 665,480$ -$
Resources (Inflows):
Intergovernmental - - 69,423 69,423
Investment earnings 3,000 3,000 8,595 5,595
Transfers in - - 68,621 68,621
Amounts Available for Appropriations 668,480 668,480 812,119 143,639
Charges to Appropriation (Outflow):
General government 200,000 623,620 75,000 548,620
Total Charges to Appropriations 200,000 623,620 75,000 548,620
Budgetary Fund Balance, June 30 468,480$ 44,860$ 737,119$ 692,259$
159
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATIONAL FACILITIES
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,896,337$ 3,896,337$ 3,896,337$ -$
Resources (Inflows):
Investment earnings 500 500 1,043 543
Amounts Available for Appropriations 3,896,837 3,896,837 3,897,380 543
Charges to Appropriation (Outflow):
Parks, recreation and culture - 20,000 - 20,000
Total Charges to Appropriations - 20,000 - 20,000
Budgetary Fund Balance, June 30 3,896,837$ 3,876,837$ 3,897,380$ 20,543$
160
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
ART IN PUBLIC PLACES
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,448,355$1,448,355$1,448,355$-$
Resources (Inflows):
Licenses and permits 205,700 205,700 181,645 (24,055)
Investment earnings 6,000 6,000 19,729 13,729
Miscellaneous --826 826
Amounts Available for Appropriations 1,660,055 1,660,055 1,650,555 (9,500)
Charges to Appropriation (Outflow):
Parks, recreation and culture 149,950 170,808 107,013 63,795
Transfers out 200,000 200,000 159,664 40,336
Total Charges to Appropriations 349,950 370,808 266,677 104,131
Budgetary Fund Balance, June 30 1,310,105$1,289,247$1,383,878$94,631$
161
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
SIGNALIZATION
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 102,343$ 102,343$ 102,343$ -$
Resources (Inflows):
Investment earnings 300 300 1,266 966
Amounts Available for Appropriations 102,643 102,643 103,609 966
Charges to Appropriation (Outflow):
Capital outlay - 35,000 - 35,000
Total Charges to Appropriations - 35,000 - 35,000
Budgetary Fund Balance, June 30 102,643$ 67,643$ 103,609$ 35,966$
162
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CAPITAL GOLF
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,907,142$ 2,907,142$ 2,907,142$ -$
Resources (Inflows):
Investment earnings 30,000 30,000 57,941 27,941
Miscellaneous 1,948,606 1,948,606 2,038,219 89,613
Amounts Available for Appropriations 4,885,748 4,885,748 5,003,302 117,554
Charges to Appropriation (Outflow):
Parks, recreation and culture 782,840 803,053 372,916 430,137
Transfers out 1,127,500 1,127,500 1,127,500 -
Total Charges to Appropriations 1,910,340 1,930,553 1,500,416 430,137
Budgetary Fund Balance, June 30 2,975,408$ 2,955,195$ 3,502,886$ 547,691$
163
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
BUILDINGS
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,638,345$ 3,638,345$ 3,638,345$ -$
Resources (Inflows):
Investment earnings 17,500 17,500 42,742 25,242
Amounts Available for Appropriations 3,655,845 3,655,845 3,681,087 25,242
Charges to Appropriation (Outflow):
General government 509,100 302,373 341,864 (39,491)
Public safety 165,000 165,000 19,698 145,302
Capital outlay 45,000 572,360 44,727 527,633
Total Charges to Appropriations 719,100 1,039,733 406,289 633,444
Budgetary Fund Balance, June 30 2,936,745$ 2,616,112$ 3,274,798$ 658,686$
164
OTHER GOVERNMENTAL FUNDS – DEBT SERVICE FUND
City Highlands Undergrounding Fund – This fund is used to account for the resources and payment for
debt related to Highlands Undergrounding.
165
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
JUNE 30, 2018
ASSETS:
Pooled cash and investments 199,777$ 199,777$
Receivables:
Assessments 1,227,632 1,227,632
Due from other governments 4,627 4,627
TOTAL ASSETS 1,432,036$ 1,432,036$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES:
LIABILITIES:
Accounts payable 3,510$ 3,510$
Deposits payable 109,526 109,526
TOTAL LIABILITIES 113,036 113,036
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 1,227,632 1,227,632
TOTAL DEFERRED INFLOWS OF RESOURCES 1,227,632 1,227,632
FUND BALANCES:
Restricted for:
Debt service 91,368 91,368
TOTAL FUND BALANCES 91,368 91,368
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 1,432,036$ 1,432,036$
Total Other Debt
Service Fund
City Highland
Undergrounding
166
CITY OF PALM DESERT
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
OTHER DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2018
Total Other
Debt Service
Fund
REVENUES:
Special assessments collected 135,269$ 135,269$
Investment earnings 1,967 1,967
TOTAL REVENUES 137,236 137,236
EXPENDITURES:
Current:
General government 22,604 22,604
Debt service:
Principal retirement 42,000 42,000
Interest and fiscal charges 70,991 70,991
TOTAL EXPENDITURES 135,595 135,595
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,641 1,641
FUND BALANCES - BEGINNING OF YEAR 89,727 89,727
FUND BALANCES - END OF YEAR 91,368$ 91,368$
City
Highlands
Undergrounding
167
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
CITY HIGHLAND UNDERGROUNDING
YEAR ENDED JUNE 30, 2018
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 89,727$ 89,727$ 89,727$ -$
Resources (Inflows):
Assessments 133,991 133,991 135,269 1,278
Investment earnings 200 200 1,967 1,767
Amounts Available for Appropriations 223,918 223,918 226,963 3,045
Charges to Appropriation (Outflow):
General government 21,000 22,700 22,604 96
Debt service:
Principal retirement 42,000 42,000 42,000 -
Interest and fiscal charges 70,991 70,991 70,991 -
Total Charges to Appropriations 133,991 135,691 135,595 96
Budgetary Fund Balance, June 30 89,927$ 88,227$ 91,368$ 3,141$
168
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for services provided to other departments or agencies of the
City on a cost reimbursement basis.
Equipment Replacement – This fund is used to account for financial transactions related to replacement
of City-owned vehicles and equipment.
Compensation Benefits Fund – This fund is used to account for funding of compensated absences.
169
CITY OF PALM DESERT
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2018
Total
ASSETS:
CURRENT ASSETS:
Cash and investments 8,616,983$ 2,441,387$ 11,058,370$
Prepaid costs 36,949 - 36,949
TOTAL CURRENT ASSETS 8,653,932 2,441,387 11,095,319
CAPITAL ASSETS:
Nondepreciable 224,011 - 224,011
Depreciable, net 1,930,487 - 1,930,487
CAPITAL ASSETS, NET 2,154,498 - 2,154,498
TOTAL ASSETS 10,808,430$ 2,441,387$ 13,249,817$
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable 49,430$ -$ 49,430$
Compensated absences - 300,000 300,000
TOTAL CURRENT LIABILITIES 49,430 300,000 349,430
NONCURRENT LIABILITIES:
Compensated absences - 2,086,772 2,086,772
TOTAL NONCURRENT LIABILITIES:- 2,086,772 2,086,772
TOTAL LIABILITIES 49,430 2,386,772 2,436,202
NET POSITION:
Invested in capital assets 2,154,498 - 2,154,498
Unrestricted 8,604,502 54,615 8,659,117
TOTAL NET POSITION 10,759,000$ 54,615$ 10,813,615$
Equipment
Replacement
Compensation
Benefits
170
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2018
Total
OPERATING EXPENSES:
Maintenance and operations 78,934$ -$ 78,934$
Depreciation and amortization 453,019 - 453,019
TOTAL OPERATING EXPENSES 531,953 - 531,953
OPERATING LOSS (531,953) - (531,953)
NONOPERATING REVENUES:
Interest revenue 105,819 33,588 139,407
Gain on disposal of capital assets 17,274 - 17,274
TOTAL NONOPERATING REVENUES 123,093 33,588 156,681
CHANGE IN NET POSITION (408,860) 33,588 (375,272)
NET POSITION - BEGINNING OF YEAR 11,167,860 21,027 11,188,887
NET POSITION - END OF YEAR 10,759,000$ 54,615$ 10,813,615$
Equipment
Replacement
Compensation
Benefits
171
CITY OF PALM DESERT
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2018
Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Payments to suppliers (59,181)$ -$ (59,181)$
Cash paid to employees for services -(196,947) (196,947)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES (59,181) (196,947) (256,128)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (496,066) - (496,066)
Proceeds from sales of assets 17,819 - 17,819
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (478,247) - (478,247)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 105,819 33,588 139,407
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (431,609) (163,359) (594,968)
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 9,048,592 2,604,746 11,653,338
CASH AND CASH EQUIVALENTS - 8,616,983$ 2,441,387$ 11,058,370$
END OF YEAR
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:
Operating income (loss)(531,953)$ -$ (531,953)$
Adjustments to reconcile operating loss to net
cash provided (used) by operating activities:
Depreciation and amortization 453,019 - 453,019
(Increase) decrease in prepaid expense (13,269) - (13,269)
Increase (decrease) in accounts payable 33,022 - 33,022
Increase (decrease) in compensated absences -(196,947) (196,947)
Total Adjustments 472,772 (196,947) 275,825
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES (59,181)$ (196,947)$ (256,128)$
Equipment
Replacement
Compensation
Benefits
172
AGENCY FUNDS
Agency Funds are used to account for assets held by the city as an agent for individuals, private
organizations, other governments and/or funds.
Agency Fund - This fund is used to account for deposits placed with the City by developers, individuals
and groups to obtain future services. Deposits are reduced by disbursements and/or refunds to the
depositors when the cost of services 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.
Special Assessment Funds - These funds are used to account for the collection of special assessments
and the future payment of debt service related to bonds issued.
173
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174
CITY OF PALM DESERT
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
JUNE 30, 2018
Totals
Assets:
Pooled cash and investments 1,948,057$ 268,804$ 1,325,341$ 7,825,196$ 11,367,398$
Receivables:
Accounts 1,875 ---1,875
Assessments --- 53,894,172 53,894,172
Accrued interest ---15,197 15,197
Due from other governments 47,008 --22,460 69,468
Restricted assets:
Cash and investments with fiscal agents ---4,682,972 4,682,972
Total Assets 1,996,940$ 268,804$ 1,325,341$ 66,439,997$ 70,031,082$
Liabilities:
Deposits payable 1,996,940$ 268,804$ 1,325,341$ 66,439,997$ 70,031,082$
Total Liabilities 1,996,940 $ 268,804 $ 1,325,341 $ 66,439,997 $ 70,031,082 $
Agency
Treasurers
1991 Bond Act
Retiree
Service
Stipend Fund
Special
Assessment
Funds
175
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2018
Balance Balance
July 1, 2017 Additions Deductions June 30, 2018
AGENCY
ASSETS:
Pooled cash and investments 3,092,350$ 2,964,144$ 4,108,437$ 1,948,057$
Receivables:
Accounts - 1,875 - 1,875
Due from other governments 47,703 47,008 47,703 47,008
TOTAL ASSETS 3,140,053$ 3,013,027$ 4,156,140$ 1,996,940$
LIABILITIES:
Deposits 3,140,053$ 3,013,027$ 4,156,140$ 1,996,940$
TOTAL LIABILITIES 3,140,053$ 3,013,027$ 4,156,140$ 1,996,940$
TREASURERS 1911 BOND ACT
ASSETS:
Pooled cash and investments 270,664$ -$ 1,860$ 268,804$
TOTAL ASSETS 270,664$ -$ 1,860$ 268,804$
LIABILITIES:
Deposits payable 270,664$ -$ 1,860$ 268,804$
TOTAL LIABILITIES 270,664$ -$ 1,860$ 268,804$
RETIREE SERVICES STIPEND FUND
ASSETS:
Pooled cash and investments 2,278,600$ 283,687$ 1,236,946$ 1,325,341$
TOTAL ASSETS 2,278,600$ 283,687$ 1,236,946$ 1,325,341$
LIABILITIES:
Deposits payable 2,278,600$ 283,687$ 1,236,946$ 1,325,341$
TOTAL LIABILITIES 2,278,600$ 283,687$ 1,236,946$ 1,325,341$
176
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
YEAR ENDED JUNE 30, 2018
Balance Balance
July 1, 2017 Additions Deductions June 30, 2018
SPECIAL ASSESSMENT FUNDS
ASSETS:
Pooled cash and investments 8,311,961$ 6,687,879$ 7,174,644$ 7,825,196$
Receivables:
Assessments 57,387,797 - 3,493,625 53,894,172
Accrued interest 7,685 15,197 7,685 15,197
Due from other governments 310,849 22,459 310,848 22,460
Restricted assets:
Cash and investments with fiscal agents 5,454,155 323,032 1,094,215 4,682,972
TOTAL ASSETS 71,472,447$ 7,048,567$ 12,081,017$ 66,439,997$
LIABILITIES:
Deposits payable 71,472,447$ 7,048,567$ 12,081,017$ 66,439,997$
TOTAL LIABILITIES 71,472,447$ 7,048,567$ 12,081,017$ 66,439,997$
TOTAL - ALL AGENCY FUNDS
ASSETS:
Pooled cash and investments 13,953,575$ 9,935,710$ 12,521,887$ 11,367,398$
Receivables:
Accounts - 1,875 - 1,875
Assessments 57,387,797 - 3,493,625 53,894,172
Accrued interest 7,685 15,197 7,685 15,197
Due from other governments 358,552 69,467 358,551 69,468
Restricted assets:
Cash and investments with fiscal agents 5,454,155 323,032 1,094,215 4,682,972
TOTAL ASSETS 77,161,764$ 10,345,281$ 17,475,963$ 70,031,082$
LIABILITIES:
Deposits payable 77,161,764$ 10,345,281$ 17,475,963$ 70,031,082$
TOTAL LIABILITIES 77,161,764$ 10,345,281$ 17,475,963$ 70,031,082$
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DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2018
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
These 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.
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 preforms.
Sources: Unless otherwise noted, the information in theses 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.
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180
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2018 2017 2016 2015 2014
Net Investment in capital assets 438,184,070 449,037,170 459,644,720 473,722,694 466,246,732
Restricted 197,349,364 197,824,604 193,298,431 135,900,520 140,460,575
Unrestricted 83,054,707 87,091,894 78,812,066 71,530,456 105,537,785
Total Governmental Activities Net Position 718,588,141 733,953,668 731,755,217 (3) 681,153,670 (2) 712,245,092
Business-Type Activities -
Net Investment in capital assets 69,111,797 69,829,772 70,202,487 71,129,743 72,009,184
Restricted - - - - -
Unrestricted 5,609,843 4,829,456 4,479,575 4,302,958 3,920,382
Total Business-type Activities Net Position 74,721,640 74,659,228 74,682,062 75,432,701 75,929,566
Primary Government
Net Investment in capital assets 507,295,867 518,866,942 529,847,207 544,852,437 538,255,916
Restricted 197,349,364 197,824,604 193,298,431 135,900,520 140,460,575
Unrestricted 88,664,550 91,921,350 83,291,641 75,833,414 109,458,167
Total Primary Government Net Position 793,309,781 808,612,896 806,437,279 756,586,371 788,174,658
Governmental Activities 2013 2012 2011 2010 2009
Net Investment in capital assets 465,756,172 475,457,375 302,757,128 304,702,414 302,507,877
Restricted 132,741,798 119,736,419 147,648,424 143,394,780 159,157,317
Unrestricted 103,603,715 107,622,257 107,314,002 110,918,145 113,883,303
Total Governmental Activities Net Position 702,101,685 702,816,051 (1) 557,719,554 559,015,339 575,548,497
Business-Type Activities
Net Investment in capital assets 72,892,200 73,375,634 74,043,419 67,902,786 68,263,719
Restricted - - - - -
Unrestricted 3,682,061 3,901,816 4,068,623 4,391,160 4,686,899
Total Business-type Activities Net Position 76,574,261 77,277,450 78,112,042 72,293,946 72,950,618
Primary Government
Net Investment in capital assets 538,648,372 548,833,009 376,800,547 372,605,200 370,771,596
Restricted 132,741,798 119,736,419 147,648,424 143,394,780 159,157,317
Unrestricted 107,285,776 111,524,073 111,382,625 115,309,305 118,570,202
Total Primary Government Net Position 778,675,946 780,093,501 635,831,596 631,309,285 648,499,115
(1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
(2) The implementation of GASB Statement No. 68 and Statement No. 71 resulted in a prior year restatement decrease of $37.73 million in the
governmental activities net positons.
(3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of
$72,138,669 of capital bond proceeds transferred from the Successor Agency.
181
City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 18,467,097 15,708,054 14,836,881 16,337,393 19,194,343
Public safety 36,543,050 34,943,220 34,009,984 32,077,635 29,339,106
Housing & Redevelopment (1) 9,605,756 10,954,630 8,162,859 11,666,724 7,852,611
Parks, recreation and culture 8,240,115 9,850,200 9,223,126 8,598,242 8,327,402
Public works 18,358,907 14,892,145 47,044,197 19,144,213 21,123,197
Payments to other agencies - - - - -
Interest on long term debt 259,250 271,603 289,000 294,258 237,053
Total Governmental activities Expenses 91,474,175 86,619,852 113,566,047 88,118,465 86,073,712
Business-Type Activities:
Desert Willow Golf Course 8,763,220 8,243,515 8,165,183 8,433,267 8,452,001
Office Complex - Parkview 930,815 893,125 1,005,918 934,296 922,341
Total Business-Type Activities 9,694,035 9,136,640 9,171,101 9,367,563 9,374,342
Total primary government expenses 101,168,210 95,756,492 122,737,148 97,486,028 95,448,054
Program Revenues
Governmental Activities
Charges for services
General government 2,388,260 2,095,648 2,185,123 2,088,393 2,152,280
Housing & Redevelopment 7,551,760 6,861,450 7,029,595 7,971,265 6,851,603
Public safety 10,801,436 10,603,708 10,606,464 9,987,891 10,239,886
Parks, recreation and culture 821,824 793,527 772,801 772,728 729,076
Public works 2,685,831 2,327,521 2,186,153 1,832,241 2,180,877
Operating grants & contributions 8,555,881 7,931,900 9,496,520 7,512,894 9,745,609
Capital grants & contributions 2,442,621 7,710,355 10,839,715 19,297,015 21,086,051
Total Governmental Activities Program Revenues 35,247,613 38,324,109 43,116,371 49,462,427 52,985,382
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 8,432,273 7,497,664 7,240,866 7,894,676 7,804,904
Office Complex - Parkview 1,250,456 1,284,462 1,280,230 1,306,042 1,254,521
Capital grants & contributions 167,670 605,186 111,942 47,768 94,076
Total Business-type activities program revenue 9,850,399 9,387,312 8,633,038 9,248,486 9,153,501
Total Primary Government program revenue 45,098,012 47,711,421 51,749,409 58,710,913 62,138,883
Net (Expense) / Revenue
Governmental activities (56,226,562) (48,295,743) (70,449,676) (38,656,038) (33,088,330)
Business-type activities 156,364 250,672 (538,063) (119,077) (220,841)
Total Primary Government Net Expense (56,070,198) (48,045,071) (70,987,739) (38,775,115) (33,309,171)
General Revenues & Other Changes in Net Position
Governmental Activities:
Taxes: (Combined/Net Pass-through) 50,150,650 47,628,454 44,747,151 41,931,997 39,952,738
Investment Earnings 1,901,536 1,041,232 2,074,934 494,452 358,674
Contributions not restricted for specific purpose - - - - -
Gain(loss) on sales of capital assets 17,274 2,145 24,292 11,720 488,319
Miscellaneous 1,573,106 1,522,363 1,828,677 1,726,007 1,994,506
Refunding of special assessment debt - - - - -
Transfers In / (Out) 300,000 300,000 237,500 437,500 437,500
Gain on Transfer to Successor Agency/ Extraordinary Gain (4)- - 72,138,669 - - - -
Total Governmental activities Net Revenues 53,942,566 50,494,194 121,051,223 44,601,676 43,231,737
Business-Type Activities:
Investment Earnings 74,873 26,494 24,924 11,774 13,646
Gain(loss) on sales of capital assets 131,175 - - 47,938 -
Transfers Out (300,000) (300,000) (237,500) (437,500) (437,500)
Total Business-type activities (93,952) (273,506) (212,576) (377,788) (423,854)
Total primary government 53,848,614 50,220,688 120,838,647 44,223,888 42,807,883
Change in Net Position
Governmental Activities: (2,283,996) 2,198,451 50,601,547 5,945,638 10,143,407
Business-Type Activities:62,412 (22,834) (750,639) (496,865) (644,695)
Total primary government (2,221,584) 2,175,617 49,850,908 5,448,773 9,498,712
(1)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(2) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397.
(3) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
(4) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of
$72,138,669 of capital bond proceeds transferred from the Successor Agency.
Expenses 2016 2015 201420172018
182
City of Palm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 16,375,295 17,387,080 17,182,987 16,701,292 17,328,291
Public safety 28,614,153 28,037,453 26,601,668 27,027,643 27,670,237
Housing & Redevelopment (1) 6,944,033 10,519,663 15,976,383 16,220,066 16,760,877
Parks, recreation and culture 8,752,623 6,033,019 7,337,403 7,312,679 7,210,706
Public works 16,316,237 17,407,751 16,984,334 19,900,937 22,036,017
Payments to other agencies - 16,994,265 39,418,936 63,320,650 39,085,940
Interest on long term debt 253,381 10,971,707 18,989,167 20,069,813 20,128,441
Total Governmental Activities Expenses 77,255,722 107,350,938 142,490,878 170,553,080 150,220,509
Business-Type Activities:
Desert Willow Golf Course 8,655,754 8,471,567 7,946,063 7,832,690 7,804,265
Office Complex - Parkview 984,811 1,031,178 861,786 875,394 852,746
Total Business-Type Activities 9,640,565 9,502,745 8,807,849 8,708,084 8,657,011
Total primary government expenses 86,896,287 116,853,683 151,298,727 179,261,164 158,877,520
Program Revenues
Governmental Activities
Charges for services
General government 1,833,823 1,805,442 1,921,573 2,127,138 7,574,059
Housing & Redevelopment 5,308,858 5,034,002 4,935,422 4,986,066 -
Public safety 11,147,297 9,041,801 9,825,352 9,431,478 9,396,435
Parks, recreation and culture 898,222 728,721 768,786 618,440 803,218
Public works 768,775 826,251 762,015 706,374 701,125
Operating grants & contributions 5,876,028 7,411,902 5,675,777 6,558,892 5,582,470
Capital grants & contributions 7,733,439 2,309,678 2,255,393 2,722,312 5,048,666
Total Governmental Activities Program Revenues 33,566,442 27,157,797 26,144,318 27,150,700 29,105,973
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,494,819 7,635,352 7,338,640 7,054,263 6,872,935
Office Complex - Parkview 1,215,860 1,222,971 1,217,985 988,056 958,942
Capital grants & contributions 660,685 236,419 - - -
Total Business-type activities program revenue 9,371,364 9,094,742 8,556,625 8,042,319 7,831,877
Total Primary Government program revenue 42,937,806 36,252,539 34,700,943 35,193,019 36,937,850
Net (Expense) / Revenue
Governmental Activities (43,689,280) (80,193,141) (116,346,560) (143,402,380) (121,114,536)
Business-type activities (269,201) (408,003) (251,224) (665,765) (825,134)
Total Primary Government Net Expense (43,958,481) (80,601,144) (116,597,784) (144,068,145) (121,939,670)
General Revenues & Other Changes in Net Position
Governmental Activities:
Taxes: (Combined/Net Pass-through) 38,742,060 73,105,614 114,880,586 120,872,421 123,650,887
Investment Earnings 318,996 1,102,309 2,158,556 2,916,753 6,161,309
Contributions not restricted for specific purpose - 791,256 762,588 644,603 613,648
Gain(loss) on sales of assets --- - -
Miscellaneous 3,894,203 5,838,881 3,169,977 2,382,208 2,912,180
Refunding of special assessment debt -- - - -
Transfers In / (Out)437,500 440,000 (6,046,761) 53,237 (5,661,521)
Gain on Transfer to Successor Agency/Extraordinary Gain (4) - 144,011,578 - - -
Total Governmental Activities Net Revenues 43,392,759 225,289,638 114,924,946 126,869,222 127,676,503
Business-Type Activities:
Investment Earnings 3,512 13,411 22,559 62,330 87,590
Gain(loss) on sales of capital assets - - - -
Transfers Out (437,500) (440,000) 6,046,761 (53,237) 5,661,521
Total Business-type activities (433,988) (426,589) 6,069,320 9,093 5,749,111
Total primary government 42,958,771 224,863,049 120,994,266 126,878,315 133,425,614
Change in Net Position
Governmental Activities: (296,521) 145,096,497 (1,421,614) (16,533,158) 6,561,967
Business-Type Activities:(703,189) (834,592) 5,818,096 (656,672) 4,923,977
Total primary government (999,710) 144,261,905 4,396,482 (17,189,830) 11,485,944
(1)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(2) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397.
(3) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
(4) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of
$72,138,669 of capital bond proceeds transferred from the Successor Agency.
Expenses 2011 (2)2010 (2)20092012 (3)2013
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184
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:2018 2017 2016 2015 2014
Nonspendable 10,509,094 9,067,979 9,528,630 10,312,261 7,745,320
Restricted - - - - -
Committed 59,666,638 - - - -
Assigned 15,492,508 658,817 991,853 1,771,278 4,425,423
Unassigned 4,702,308 74,259,748 71,842,172 67,727,130 66,203,203
Total General Fund 90,370,548 83,986,544 82,362,655 79,810,669 78,373,946
All other Governmental Funds:
Nonspendable 1,726 1,276 3,052 348 6,713 (5)
Restricted 169,549,126 171,044,474 165,411,544 (6) 106,261,212 114,194,435 (5)
Committed 16,751,821 16,771,055 16,873,834 16,952,887 21,644,068
Assigned 23,258,063 23,250,337 23,776,468 24,172,531 24,429,824
Unassigned - - - - -
Total all other Governmental Funds 209,560,736 211,067,142 206,064,898 147,386,978 160,275,040
General Fund:2013 2012 2011 2010 2009
Nonspendable 7,678,250 2,926,739 2,939,850 (1) 9,676,961 (1) 11,629,384
Restricted - - - - -
Committed - - - - -
Assigned 3,224,761 3,297,152 4,501,159 4,044,421 3,654,300
Unassigned 65,311,919 69,438,971 66,776,414 63,847,586 59,066,988
Total General Fund 76,214,930 75,662,862 74,217,423 77,568,968 74,350,672
All other Governmental Funds:
Nonspendable 49,319,200 39,525,247 40,925,918 41,050,481 23,361,744
Restricted 76,725,388 69,065,451 230,623,054 260,163,043 296,323,735
Committed 15,649,703 20,289,309 17,285,733 (3) 8,871,910 (3) 4,559,739 (2)
Assigned 14,144,969 17,552,726 19,375,999 16,432,292 23,812,325
Unassigned - - - - (2,392)
Total all other Governmental Funds 155,839,260 146,432,733 (4) 308,210,704 (4) 326,517,726 (4) 348,055,151
(1) RDA made payment on advances from the city.
(2) Start of new Energy program that loaned residents funds for energy efficiency.
(3) Housing Asset fund transfer for Capital Asset replacement to the Housing Authority.
(4) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
(5) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds.
(6) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined
total of $72,138,669 of capital bond proceeds transferred from the Successor Agency.
185
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues:2018 2017 2016 2015 2014
Taxes 61,906,859 59,466,545 56,735,503 52,571,369 50,464,511
Special assessments collected 3,445,246 3,318,114 3,296,705 3,058,766 3,486,220
Licenses & permits 1,326,049 1,678,709 2,057,843 1,757,250 2,262,907
Intergovernmental revenues 5,682,704 7,249,515 15,429,238 18,981,304 7,380,744
Rental income 6,675,632 6,439,458 5,896,480 5,660,762 5,626,850
Charges for services 2,894,821 2,356,363 2,082,843 1,819,464 2,165,020
Investment Earnings 3,626,892 2,086,224 1,837,319 1,242,662 864,853
Fines & forfeitures 162,370 135,276 295,269 224,612 231,768
Miscellaneous 2,886,542 2,594,433 2,317,499 2,377,923 3,539,552
Contributions from other government - 3,550,991 - 9,168 10,749,218
Contributions from property owners - - 7,868 - 420,590
Total Revenues 88,607,115 88,875,628 89,956,567 87,703,280 87,192,233
Expenditures:
General government 19,281,102 16,887,293 15,783,955 15,467,746 17,070,816
Housing & redevelopment 8,522,801 9,239,680 6,438,849 9,349,021 6,650,178
Pass-through-agreement - - - - -
Public safety 36,247,656 34,674,418 33,750,347 31,819,214 29,139,735
Parks, recreation & culture 6,467,713 7,157,821 6,831,534 6,236,717 5,802,941
Public works 12,183,852 8,794,894 11,031,584 13,082,388 12,741,764
Contributions to property owners - - 19,584,487 49 2,350,187
Capital outlay 915,422 2,169,035 7,071,738 19,339,987 6,273,822
Debt service:
Principal retirement 150,000 237,000 257,000 4,944,000 674,000
Interest and fiscal charges 260,971 277,814 296,336 240,219 242,495
Total Expenditures 84,029,517 79,437,955 101,045,830 100,479,341 80,945,938
Excess(deficiency of Revenues
over(under) expenditures 4,577,598 9,437,673 (11,089,263) (12,776,061) 6,246,295
Other financing sources (uses)
Transfers in 6,613,352 9,406,888 6,030,706 6,132,859 4,861,551
Transfers out (6,313,352) (12,218,428) (6,075,206) (6,971,359) (5,424,051)
Bond Premiums - - - - -
Bonds issued/Capital Accreation on bonds - - - - -
Payment refunded bond escrow agent - - - - -
Extraordinary Gain / (Loss) (2)- - 72,138,669 - -
Sale of property - - 225,000 2,163,222 911,001
Total Other financing sources (uses)300,000 (2,811,540) 72,319,169 1,324,722 348,501
Net Change In Fund Balance 4,877,598 6,626,133 61,229,906 (11,451,339) 6,594,796
Revenues:2013 2012 (1) 2011 2010 2009
Taxes 50,768,200 82,901,921 124,672,062 130,655,949 134,060,681
Special assessments collected 3,654,337 3,232,923 3,262,163 3,182,549 2,759,444
Licenses & permits 1,586,796 1,041,834 1,089,543 782,271 1,383,778
Intergovernmental revenues 5,097,892 6,637,426 7,605,282 8,700,234 9,543,551
Rental income 5,367,630 5,146,499 5,011,205 5,023,770 5,050,479
Charges for services 898,222 728,721 701,481 618,440 803,218
Investment Earnings 373,012 1,469,142 3,102,649 4,681,243 8,322,808
Fines & forfeitures 242,568 276,452 310,840 343,054 315,284
Miscellaneous 9,028,698 6,814,924 3,095,689 3,374,309 3,479,370
Contributions from other government - - - - -
Contributions from property owners - - - - -
Total Revenues 77,017,355 108,249,842 148,850,914 157,361,819 165,718,613
Expenditures:
General government 14,028,252 15,851,883 15,273,085 19,294,744 18,950,675
Housing & redevelopment 5,650,666 8,942,097 18,033,576 13,612,720 14,359,340
Pass-through-agreement - 16,994,265 39,418,936 63,320,650 39,085,941
Public safety 28,299,876 27,551,113 26,824,434 26,882,787 26,906,123
Parks, recreation & culture 6,162,449 3,685,334 3,845,901 4,534,505 5,122,900
Public works 9,819,591 11,306,021 11,256,499 13,971,797 16,241,963
Contributions to property owners - - - - -
Capital outlay 2,788,676 9,575,227 14,205,889 6,333,521 22,348,953
Debt service:
Principal retirement 318,000 9,032,707 22,914,707 15,250,707 12,778,707
Interest and fiscal charges 255,239 10,187,765 18,176,454 19,280,517 19,424,623
Total Expenditures 67,322,749 113,126,412 169,949,481 182,481,948 175,219,225
Excess(deficiency of Revenues
over(under) expenditures 9,694,606 (4,876,570) (21,098,567) (25,120,129) (9,500,612)
Other financing sources (uses)
Transfers in 11,274,539 24,453,724 69,995,597 59,960,402 68,088,670
Transfers out (11,010,550) (24,013,724) (70,555,597) (59,520,402) (67,649,434)
Bond Premiums - - - - -
Bonds issued/Capital Accreation on bonds - - 6,361,000 -
Payment refunded bond escrow agent - - - - 2,015,000
Extraordinary Gain / (Loss) (2)- (155,895,962) - - -
Sale of property - - - - -
Total Other financing sources (uses)263,989 (155,455,962) (560,000) 6,801,000 2,454,236
Net Change In Fund Balance 9,958,595 (160,332,532) (21,658,567) (18,319,129) (7,046,376)
0.9%18.6% 26.4% 19.6% 21.1%
(1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see Note 16 and 17.
(2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined
total of $72,138,669 of capital bond proceeds transferred from the Successor Agency.
1.2%
Debt service as a percentage of noncapital expenditures
Debt service as a percentage of noncapital expenditures 0.6%6.4%0.7%0.5%
186
City of Palm Desert
Graphs - Changes in Fund Balances of Governmentals Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(1) Combined Other is a combination of rental income, investment earnings, and charges for services.
(2) Miscellaneous Other is a combination of fines and forefeitures, miscellaneous, contributions from other governments, and contributions from property owners.
(3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement .
(4) Public works is a combination of public works and contributions to property owners.
Note: Graphs excludes Other financing sources and uses.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
FY
2
0
1
8
FY
2
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1
7
FY
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6
FY
2
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1
5
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2
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4
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2
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1
3
FY
2
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1
2
FY
2
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1
1
FY
2
0
1
0
FY
2
0
0
9
Total Revenues
Combined other (1)
Miscellaneous other (2)
Intergovernmental revenues
Licenses & permits
Taxes & Special Assessments
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
FY
2
0
1
8
FY
2
0
1
7
FY
2
0
1
6
FY
2
0
1
5
FY
2
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1
4
FY
2
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1
3
FY
2
0
1
2
FY
2
0
1
1
FY
2
0
1
0
FY
2
0
0
9
Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works (4)
Public safety
Housing & Redevelopment
General Government
187
City of Palm Desert
Supplemental - Historical General Fund Revenues
(including Transers In)
Last Ten Fiscal Years
FY 2018 2017 2016 2015 2014
Revenue Type:
Sales Tax 18,627,704$ 18,505,449$ 18,994,779$ 17,565,134$ 17,258,958$
Transient Occupancy Tax 17,019,034 15,054,259 11,252,997 10,799,680 9,855,509
Property Tax (3)10,777,998 10,157,813 10,461,595 9,710,990 9,041,428
Investment Earnings 1,237,562 644,341 725,015 416,656 405,456
Transfer In 1,610,830 1,472,852 1,390,258 2,179,472 1,373,786
Franchises 3,097,521 3,146,702 3,095,873 3,102,431 3,007,215
State Subventions (1) (3)38,876 23,101 59,317 155,049 22,089
Building & Grading Permits 1,048,973 1,247,390 1,216,115 1,279,706 1,695,303
Reimbursments (4)1,388,654 1,407,811 1,589,511 1,604,707 1,809,323
Business License Tax 1,154,275 1,118,183 1,269,082 1,160,207 1,169,316
Timeshare Mitigation Fee 1,543,762 1,467,028 1,500,683 1,483,158 1,333,586
Plan Check Fees 691,096 431,115 592,818 505,370 662,893
Property Transfer Tax 664,822 690,975 491,060 558,965 530,556
Other Revenues (2)1,951,122 2,185,703 2,189,063 1,713,758 1,932,009
Total General Revenue 60,852,229$ 57,552,722$ 54,828,166$ 52,235,283$ 50,097,427$
FY 2013 2012 2011 2010 2009
Revenue Type:
Sales Tax 16,764,808$ 15,836,953$ 14,680,578$ 13,273,793$ 14,474,933$
Transient Occupancy Tax 9,188,981 8,085,225 7,421,769 6,848,132 7,030,048
Property Tax (3)9,529,018 7,976,494 8,341,728 8,707,567 8,776,917
Investment Earnings 126,206 408,661 793,461 1,766,868 2,142,915
Transfer In 2,127,655 2,240,703 2,691,634 4,747,672 2,684,568
Franchises 2,892,805 2,856,679 2,771,594 2,705,902 2,818,729
State Subventions (1) (3)26,691 25,759 236,211 151,489 173,448
Building & Grading Permits 1,206,935 750,442 783,031 575,852 950,805
Reimbursments (4)1,868,804 2,535,977 1,971,505 2,488,378 3,263,247
Business License Tax 1,149,551 1,076,541 1,085,411 1,071,997 1,258,688
Timeshare Mitigation Fee 1,292,859 1,110,227 1,192,490 1,483,220 949,871
Plan Check Fees 500,698 275,728 317,332 224,325 389,770
Property Transfer Tax 520,393 485,040 399,280 455,580 324,817
Other Revenues (2)1,961,314 1,398,669 1,475,154 1,567,651 1,601,947
Total General Revenue 49,156,718$ 45,063,098$ 44,161,178$ 46,068,426$ 46,840,703$
(1) State Subventions is any combination of motor vehicle and off-highway in-lieus, and subventions from state.
(2) Other Revenues is any combination of miscellaneous penalties and interest, permits, grants, parking bails, fees,
sales of maps and publications, vehicle and court fines, rental income and other revenues.
(3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes.
(4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement
is limited and applies to existing projects.
188
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property
transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants,
incomes, penalties, permits, sales and taxes.
*State Subventions is any combination of motor vehicle and off-highway in-lieus, and
subventions from state.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
F
Y
2
0
1
8
F
Y
2
0
1
7
F
Y
2
0
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6
F
Y
2
0
1
5
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2
0
1
4
F
Y
2
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1
3
F
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2
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1
2
F
Y
2
0
1
1
F
Y
2
0
1
0
F
Y
2
0
0
9
Combined Other (1)
Interest
Property Tax
Transient Occupancy Tax
Sales Tax
189
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2018 2017 2016 2015 2014
Expenditure:
Public Safety (1)21,088,867$ 20,424,249$ 20,151,237$ 18,784,117$ 17,306,342$
City Administration (2)11,460,325 8,238,228 7,971,706 7,561,255 7,413,578
Public Works Administration 2,333,897 2,637,630 2,664,871 2,645,443 2,556,967
Community Promotions 1,179,305 1,062,611 791,565 749,631 618,138
Street Maintenance 2,020,797 2,418,451 2,709,328 2,631,590 2,806,168
Building Safety 1,579,734 1,849,442 1,888,290 1,847,798 1,783,918
Street Resurfacing 2,760 25,326 1,083,919 998,463 4,466
Public Works (4)1,133,007 970,877 1,004,989 1,067,837 1,018,435
Other Expenditures (3)13,669,533 18,302,019 14,010,275 14,512,426 14,430,399
Total Expenditures 54,468,225$ 55,928,833$ 52,276,180$ 50,798,560$ 47,938,411$
FY 2013 2012 2011 2010 2009
Expenditure:
Public Safety (1)17,002,291$ 16,532,894$ 16,047,991$ 15,671,095$ 16,266,052$
City Administration (2)7,180,519 7,670,377 8,023,314 8,556,627 10,076,543
Public Works Administration 2,528,131 2,527,817 2,380,255 3,021,319 3,720,106
Community Promotions 575,119 526,804 497,366 990,505 1,798,860
Street Maintenance 2,353,655 2,446,854 2,522,117 2,565,567 2,183,445
Building Safety 1,517,937 1,538,506 1,523,748 1,756,589 2,082,996
Street Resurfacing 1,179,743 2,332,968 2,268,901 708,006 1,115,721
Public Works (4)1,505,018 1,056,998 1,354,255 1,278,983 1,552,242
Other Expenditures (3)14,762,237 8,984,441 12,894,776 8,301,439 13,513,354
Total Expenditures 48,604,650$ 43,617,659$ 47,512,723$ 42,850,130$ 52,309,319$
(1) Public Safety is any combination of animal regulation, police services, and traffic safety expenditures, this does not include the cost
for Fire Services. Fire Services are reported in a different fund.
(2) City Administration is any combination of community services, auditing, City attorney, City clerk, City council and
City manager, information technology, elections, finance, general services, human resources, insurance, legal special services,
legislative advocacy and unemployment insurance expenditures.
(3) Other Expenditures is any combination of acquisitions, committees, contributions, community, retiree health
development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center,
included in the transfer out is transfer to the Fire fund for its shortfall.
(4) Public Works is a combination of curb & gutter, parking lot, storm drain, auto fleet, corporate yard
equipment, building maintenance, Portola Community center, storm water permit.
190
City of Palm Desert
Supplemental Graph- Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
(1) "Combined Other" is any combination of street maintenance, building safety, street resurfacing and public
works. It may also be aquisitions, centers, committees, contributions, community development,
marketing, interfund transfers, parks, recreation and culture, visitor center.
(2) City Administration is any combination of community services, auditing, City attorney, City clerk, City council and
City manager, information technology, elections, finance, general services, human resources, insurance, legal special services,
legislative advocacy and unemployment insurance expenditures.
(3) Other Expenditures is any combination of acquisitions, committees, contributions, community, retiree health
development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center,
included in the transfer out is transfer to the Fire fund for its shortfall.
(4) Public Works is a combination of curb & gutter, parking lot, storm drain, auto fleet, corporate yard
equipment, building maintenance, Portola Community center, storm water permit.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
F
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9
Combined Other (1)
Community Promotions
Public Works Administration
City Administration (2)
Public Safety (3)
191
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192
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2018 2017 2016 2015 2014
Total General Revenue (2)59,241,399$ 56,079,870$ 53,437,908$ 50,055,811$ 48,723,641$
Population (1)52,769 50,740 49,335 51,053 50,417
General Revenue Per Capita 1,123 1,105 1,083 980$966$
FY 2013 2012 2011 2010 2009
Total General Revenue (2)47,029,063$ 42,822,395$ 41,469,544$ 41,320,754$ 44,156,135$
Population (1)49,949 49,471 49,111 52,067 51,509
General Revenue Per Capita 942$866$844$794$857$
FY 2018 2017 2016 2015 2014
Total General Expenditures (2)49,992,388$ 48,427,111$ 48,134,252$ 46,302,187$ 44,183,659$
Population (1)52,769 50,740 49,335 51,053 50,417
General Expenditures Per
Capita 947 954 976 907$876$
FY 2013 2012 2011 2010 2009
Total General Expenditures (2)42,155,428$ 42,099,903$ 41,833,291$ 42,499,812$ 48,696,321$
Population (1)49,949 49,471 49,111 52,067 51,509
General Expenditures Per
Capita 844$851$852$816$945$
(1) Population figures are as of January start of fiscal year.
(2) Interfund Transfers In/Out and extraordinary loss (gain) are not included in total.
Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department
193
City of Palm Desert
Assessed Value and Esitmated Actual Value of Taxable Property
Last Ten Fiscal Years
Fiscal Year
Ended June 30
Residential
Property
Commercial
Industrial
Property
Institutional
Property Vacant Land Less: Tax
Exempt
Total Taxable
Assessed Value
Total Direct
Tax Rate
Estimated Actual
Taxable Value (1)
2018 10,757,283,204 2,554,854,761 59,762,684 388,457,449 (313,754,093) 14,940,671,116 1.00000 14,445,331,683
2017 10,555,732,091 2,434,816,656 58,318,962 379,073,252 (306,174,550) 14,579,740,457 1.00000 14,095,158,994
2016 10,174,360,142 2,358,860,033 56,840,001 412,090,006 (312,620,004) 14,210,000,198 1.00000 13,743,682,041
2015 9,636,181,445 2,290,456,630 54,211,991 420,142,932 (298,165,952) 13,552,997,813 1.00000 13,086,962,905
2014 9,043,372,632 2,247,924,054 64,595,519 426,330,424 (297,139,386) 12,919,103,760 1.00000 12,453,921,285
2013 8,621,493,305 2,239,836,432 62,565,263 462,982,950 (300,313,265) 12,513,052,693 1.00000 12,064,845,537
2012 8,694,403,021 2,198,729,088 50,256,665 452,309,984 (288,975,823) 12,564,166,215 1.00000 12,123,771,853
2011 8,982,403,643 2,179,940,065 52,528,676 564,683,270 (288,907,720) 13,132,169,069 1.00000 12,707,884,566
2010 9,210,638,643 2,419,511,046 54,988,887 426,163,878 (274,944,437) 13,747,221,855 1.00000 13,334,233,975
2009 9,376,213,348 2,130,957,579 127,857,455 667,700,041 (255,714,909) 14,206,383,860 1.00000 13,808,181,235
(1) Estimated Actual Taxable Value = Net Taxable Value
Notes: Property Taxes in Riverside County are subject to the State of California's Proposition 13, Jarvis-Gann Initiative which allows reappraisals of real property only
when there is a change in ownership or new construction takes place. Further, the proposition limits property assessment increase to no more than two(2%) percent
annually. Property is assessed at one hundred percent (100%) of its fair market value at the time of new construction or change in ownership.
The tax rate is one (1%) percent of the assessed value.
Source: Riverside County Assessor thru HDL Coren & Cone
194
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Ten Fiscal Years
Historical Major Additions
Annexations FY Retail Centers FY
Cook Street Area 88/89 Town Center Mall 83/84
Country Club #28 93/94 Desert Springs Marriott 86/87
Price Club/Costco 93/94 One Eleven Town Ctr 88/89
Palm Desert CC #29 94/95 Mervyn's Center 92/93
Palm Desert Greens 04/05 Desert Crossing 95/96
Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97
Remodel 111 Town Ctr (Best Buy)97/98
Gardens on El 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
Golfsmith Extreme 08/09
El Paseo Village 09/10
Best Buy & Ulta 11/12
Remodel Westfield Mall (Dick's/H&M/Restaurants) 12/13
PGA Tour Superstore 12/13
Total Wine & More 13/14
Tesla Motors 15/16
Source: Riverside County Assessor thru HDL Coren & Cone
10.63%
-3.43%-4.70%-4.60%-0.49%
3.22%5.08% 5.02%2.56%2.48%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Percent Increase in Assessed Valuation
FY 2009 to FY 2018
$-
$5,000
$10,000
$15,000
$20,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Value in Millions
Net Assessed Valuation - Historical Comparison
FY 2009 to FY 2018
195
City of Palm Desert
Supplemental FY 2018 and 2017 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency FY 2018 Rate FY 2017 Rate
County General 28.177327%28.177327%
County Free Library 2.728242%2.728242%
County Structure Fire Protection 5.873086%5.873086%
City of Palm Desert (1)0.000000%0.000000%
Desert Sands Unified School District 36.221587%36.221587%
Desert Community College 7.526714%7.526714%
Riverside County Reg. Park & Open Space 0.426231%0.426231%
Riverside County Office of Education 4.094919%4.094919%
Desert Hospital 1.996808%1.996808%
Coachella Valley Public Cemetary 0.339927%0.339927%
Coachella Valley Recreation & Park 2.071624%2.071624%
Coachella Valley Mosquito & Vector Control 1.369698%1.369698%
Coachella Valley County Water 2.736607%2.736607%
Coachella Valley County Water Imp. District 80 2.972906%2.972906%
Coachella Valley County Water Storm Water Unit 3.464324%3.464324%
General Purpose Basic 1%100.000000%100.000000%
(1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low Property
Tax Cities.
Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041.
196
City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Fiscal
Year
Basic
County-wide
Levy
Total
Direct Tax
Rate
Desert Sands
Unified School
District
Desert
Community
College Dist.
Coachella
Valley Water
District
Coachella
Valley Water
District I.D. 58
2018 1.00000 1.00000 0.07251 0.04030 0.01000 0.00000
2017 1.00000 1.00000 0.08599 0.02036 0.10000 0.00000
2016 1.00000 1.00000 0.10915 0.02087 0.10000 0.00000
2015 1.00000 1.00000 0.10984 0.02325 0.10000 0.00000
2014 1.00000 1.00000 0.10954 0.01995 0.10000 0.00000
2013 1.00000 1.00000 0.11156 0.01995 0.08000 0.00000
2012 1.00000 1.00000 0.11467 0.01995 0.08000 0.00000
2011 1.00000 1.00000 0.10036 0.01995 0.08000 0.00000
2010 1.00000 1.00000 0.08112 0.01995 0.06000 0.00000
2009 1.00000 1.00000 0.07990 0.01995 0.04000 0.00000
Notes:Proposition 13 limits the ability of the city to raise the property tax rate.
Source: CalMuni Statistics Inc
City Direct Overlapping Rates
197
City of Palm Desert
Principal Property Taxpayers
Current and Ten Years Ago
2018 2009
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
WEA Palm Desert 153,280,347$ 1.06%Marriott Desert Springs $279,271,039 2.01%
Marriott Desert Springs 152,134,509 1.05%WEA Palm Desert LP 135,678,768 0.98%
Gardens on El Paseo LLC 133,879,627 0.92%Desert Crossing II 86,575,826 0.62%
WVC Ranco Mirage 128,514,726 0.89%Elisabeth E. Stewart 80,189,869 0.58%
PRU Desert Crossing LLC 98,233,189 0.68%Gardens SPE II 77,210,317 0.56%
CC Cimarron LP 65,426,527 0.45%Monarch Sevilla Venture 62,544,816 0.45%
Walmart Real Estate
Business Trust 50,780,771 0.35%Palm Desert Funding Co 60,922,381 0.44%
First American Trust 50,682,887 0.35%Canterra 58,920,898 0.42%
Segovia Operations 50,639,859 0.35%Walmart Real Estate
Business Trust 46,666,992 0.34%
Sunrise Spectrum 49,650,678 0.34%Time Warner Ent 43,628,923 0.31%
Total 933,223,120$ 6.44%Total 931,609,829$ 6.72%
Note:The estimated property tax revenue stated above is based upon net taxable values, tax ratios and base year values that impact the revenue
calculation. As a result, parcels with the same assessed value that are assigned to different tax rate areas may contribute dissimilar amounts
of total revenue to the City and Redevelopment Agency.
Source: HdL Coren & Cone thru Riverside County Assessor 17/18 and HdL Coren & Cone thru Riverside County Assessor 08/09
198
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years (4)Amount (4)(5)of Levy
2009 5,697,181 4,760,806 83.56% 135,057 4,895,863$ 85.93%
2010 5,372,247 4,686,541 87.24% 282,866 4,969,407$ 92.50%
2011 5,312,856 4,560,417 87.24%486,495 4,776,795$ 89.91%
2012 5,478,345 4,366,451 79.70% 1,111,894 5,478,345$ 100.00%
2013 5,398,524 4,913,780 91.02%484,744 5,398,524$ 100.00%
2014 5,623,740 5,048,787 89.78%574,953 5,623,740$ 100.00%
2015 5,911,501 5,523,658 93.44%387,843 5,911,501$ 100.00%
2016 6,212,993 5,943,252 95.66%269,741 6,212,993$ 100.00%
2017 6,731,899 6,022,566 89.46%182,652 6,205,218$ 92.18%
2018 6,729,952 6,553,297 97.38%173,642 6,726,940$ 99.96%
(1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was
received in the fiscal year 1993/94.
(2) City of Palm Desert is a "No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973
which is when the City of Palm Desert incorporated and the Property Tax rates were zero.
Based on current state law the County allocates 7% of the 1% assessed values within the City less the
Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes.
(3) Fiscal Year 1996/97 final total collected includes adjustments for No-Low property
tax collections from prior years modified by the County of Riverside. The County adjusted the payment to
the City of Palm Desert (FY 1995/96) for the annexation of Palm Desert Country Club.
(4) Includes tax collections accrued as of June 30, 2018.
(5) Includes amounts receivable for tax year 2017-2018 along with prior receivables due for prior tax years.
Source: Riverside County Auditor Controller Office and City of Palm Desert
Collected within the
Fiscal Year of the Levy (1) (2) (3)
Total Collections to Date
199
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2018
Top 25 Sales Tax Generators (1)Primary Economic Category
ALBERTSON'S FOOD CENTERS SUPERMARKETS
APPLE STORES SPECIALTY STORES
BEST BUY STORES LP APPLIANCE / ELECTRONICS
CIRCLE K FOOD STORES SERVICE STATIONS
COSTCO WHOLESALE COMPANY WHOLESALE GENERAL STORES
J.C.PENNY COMPANY DEPARTMENT STORES
JW MARRIOTT DESERT SPRINGS HOTEL / FOOD & BEVERAGE
KOHLS DEPARTMENT STORES DEPARTMENT STORES
LOWE'S HOME CENTERS BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES
NORDSTROM RACK DEPARTMENT STORES
PGA TOUR SUPERSTORE GOLF & SPORTING GOODS
RALPHS GROCERY SUPERMARKETS
SAKS FIFTH AVENUE DEPARTMENT STORES
SAM'S CLUB WHOLESALE GENERAL STORES
SEARS ROEBUCK & CO DEPARTMENT STORES
SIMPLOT PARTNERS SPECIALTY WHOLESALE STORES
SPECTRUM TV CABLE PROVIDER
STONELEDGE FURNITURE HOME FURNISHINGS
SUPERIOR POOL PRODUCTS SPECIALTY WHOLESALE STORES
TARGET STORES DEPARTMENT STORES
TESLA MOTORS AUTOMOBILE DEALER
TOMMY BAHAMA APPAREL STORES/RESTAURANT
TOTAL WINE & MORE SUPERMARKETS
WAL-MART SUPERCENTER DEPARTMENT STORES
(1) Listed in Alphabetical Order
Note : Current California law prohibits production of individual tax information as an effort not to infringe on proprietary
information, therefore confidential information which is protected by law is not disclosed.
*The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged.
Source: SBOE Data, MuniServices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert
$7.0
$9.0
$11.0
$13.0
$15.0
$17.0
$19.0
$21.0
$23.0
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
Millions
Sales and Use Tax Trends FY 2009 - 2018
-2.57%.66%
-15.8%
-8.3%
7.9%
5.9%
Amounts
% = % Change from Prior Year
1.8%
8.1%
14.474 13.273 14.680 15.836 16.764 17.258 17.564 18.994 18.505 18.627
10.6%
-In Lieu *2.9%
200
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Apparel Stores 1,912,324$ 2,017,617$ 2,054,232$ 2,080,342$ 1,956,390$ 1,884,720$ 1,738,840$ 1,682,350$ 1,341,860$ 1,424,880$
General Merchandise 3,675,927 3,588,672 3,678,239 3,786,704 3,809,305 3,783,700 3,667,800 3,210,230 3,043,960 3,266,730
Food Markets 804,225 753,419 757,334 799,835 807,438 767,770 507,340 468,900 405,730 448,800
Restaurants 3,074,872 2,955,944 2,820,500 2,725,634 2,561,784 2,377,780 2,276,530 1,520,430 1,374,750 1,459,070
Furniture/Appliance 1,093,695 1,146,949 1,099,638 1,048,971 988,716 996,960 973,270 971,710 974,150 1,061,660
Bldg.Matls-Wholesale 1,389,484 1,274,500 1,200,141 1,128,350 1,113,345 984,810 882,170 730,230 582,410 865,640
Automotive 606,305 525,291 256,144 221,758 201,898 198,570 182,640 150,940 113,140 103,010
Service Stations 465,705 430,720 508,861 597,432 624,849 638,490 866,370 607,640 664,160 649,120
Other Retail 1,875,083 1,912,870 1,879,937 1,869,242 1,769,914 1,586,330 1,489,210 1,414,080 1,857,220 2,180,050
Non-Retail (1)1,641,878 1,911,824 1,859,439 1,681,430 1,498,793 1,455,190 1,262,170 1,822,270 1,856,550 1,822,230
Totals 16,539,496$ 16,517,806$ 16,114,465$ 15,939,698$ 15,332,432$ 14,674,320$ 13,846,340$ 12,578,780$ 12,213,930$ 13,281,190$
City direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
(1) Non-retail are a mix of manufacturers, distributors, builders and professionals selling 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 tax imposed by the County of Riverside.
The City of Palm Desert receives 1% of all sales tax generated within the city limits.
Source: Muniservices LLC via California State Board of Equalization
201
City of Palm Desert
Supplemental Principal Sales Tax Remitters
Current and Ten Calendar Years Ago
Tax Amount Percentage Tax Amount Percentage
General Merchandise 3,675,927 22.23% 3,266,730$ 24.60%
Other Retail 1,875,083 11.34% 2,180,050$ 16.41%
Non-Retail (1) 1,641,878 9.93% 1,822,230$ 13.72%
Restaurants 3,074,872 18.59% 1,459,070$ 10.99%
Apparel Stores 1,912,324 11.56% 1,424,880$ 10.73%
Furniture/Appliance 1,093,695 6.61% 1,061,660$ 7.99%
Service Stations 465,705 2.82% 649,120$ 4.89%
Bldg.Matls-Wholesale 1,389,484 8.40% 865,640$ 6.52%
Food Markets 804,225 4.86% 448,800$ 3.38%
Automotive 606,305 3.67% 103,010$ 0.78%
Totals 16,539,496$ 13,281,190$
(1) Non-retail are a mix of manufacturers, distributors, builders and professionals selling 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 tax imposed by the County of Riverside.
The City of Palm Desert receives 1% of all sales tax generated within the city limits.
Source: Muniservices LLC via California State Board of Equalization
2017 2008Industry
202
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business Type Activities
Special Assessment/ Compensated Absences Total Percentage Total Debt
Fiscal Local Obligation Claims and Judgments Note Capital Primary of Total Personal Per
Year Bonds b Payable Payable Leases Government Income a,f Capita a,f
2009 4,717,000 c 3,538,422 368,121 955,141 9,578,684 0.39%200
2010 10,095,000 d,e 3,062,201 245,414 328,273 13,730,888 0.56%287
2011 9,543,000 2,798,466 122,707 1,035,721 13,499,894 0.55%282
2012 9,238,000 3,268,224 -2,291,358 14,797,582 0.61%309
2013 8,920,000 3,334,322 -1,751,083 14,005,405 0.57%292
2014 8,246,000 3,713,172 -1,222,915 13,182,087 0.54%275
2015 3,302,000 2,972,605 -1,435,046 7,709,651 0.32%161
2016 3,045,000 2,737,997 -929,860 6,712,857 0.28%140
2017 2,808,000 2,583,719 -499,881 5,891,600 0.24%123
2018 2,658,000 2,747,009 -1,493,330 6,898,339 0.28%144
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
a - Personal income, population and per capita information provided by California Department of Finance,
and U.S Census Bureau and/or estimated by City Finance using 1% growth rate.
b - Special Assessment Government Activities includes Highlands Undergrounding AD No# 04-01, as of June 30, 2018 the balance was $1.368M.
c - Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million to fund the
Energy Independence Loan Program. The actual Bond Issuance was for $2.015m.
d - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011. At June 30, 2018 the outstanding balance was $0.531M.
e - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). On September 2, 2014 the bonds were called in full.as of June 30, 2017 their were no outstanding bonds.
f - Personal income and Per Capita statistic includes government and business type activities combined.
Governmental Activities
203
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Percentage of Actual
Special Assessment Taxable Value of Per
Bonds Property Capita
Note: There is no General Obligation Bonds from FY 2009 to FY 2018
204
City of Palm Desert
Supplemental Special Assessment Information
June 30, 2018
District Name\Description 2003 01-01 Revenue
Bonds 94-3 Merano 5
2003 01-01
Revenue Bonds
Silver Spur Ranch
Utility
Undergrounding 5
2004 R-Bonds
98-1
Canyons @ Bighorn
Community Facilities District
No. 2005-1 (University Park)
Special Tax Bonds Series
2006A
2004-2 Section 29
Assessment District
Limited Obligation
Improvement Bonds
Bond Issue Date 06/25/03 06/25/03 02/19/04 05/09/06 3/29/2007
Final Maturity Date 09/02/20 09/02/28 09/02/18 09/01/37 9/2/2037
Highest Interest Rate 5.25%5.375%5.100%5.424%5.100%
Bond Issue Amount 1,153,000$ 2,340,000$ 2,955,000$ 67,915,000$ 29,430,000
Matured Principal 878,000$ 910,000$ 1,550,000$ 11,705,000$ 5,190,000
Called Principal 10,000$ 160,000$ 1,340,000$ 27,015,000$ 2,305,000
Outstanding Bonds (4)265,000$ 1,270,000$ 65,000$ 29,195,000$ 21,935,000
Redemption Premium 3.00%3.00%3.00%3.00%3.00%
Original Parcels 121 201 97 78 748
Active Parcels 118 193 3 67 777
Reserve Requirement 26,500$ 1,270,000$ 66,658$ 2,468,500$ 1,756,913$
Reserve Balance 17/18 70,375$ 163,636$ 68,651$ 2,559,689$ 1,806,018$
Principal Due 18/19 (2)85,000$ 85,000$ 65,000$ 935,000$ 670,000
Principal Levied 17/18 (3)88,168$ 89,252$ 61,813$ 935,000$ 734,391
Interest Due 18/19 (2)6,870$ 65,179$ 1,658$ 1,533,500$ 1,086,913
Interest Levied 17/18 (3)13,965$ 68,737$ 3,152$ 1,556,875$ 1,208,534
17/18 Delinquency Rate 1.68%3.09%0.00%0.50%0.60%
Arbitrage Installment Computation Date:
90% Rebate Due 06/25/23 06/25/23 09/02/18 05/08/21 04/11/22
Arbitrage Yield Rate 4.913%4.9129%4.4994%5.3599%5.0134%
Arbitrage-Amount Owed - ----
Continuing Disclosure Last Report
Issued:1/10/2018 1/10/2018 12/15/2017 1/10/2018 1/20/2018
(1) Reserve Balances are as of 6/30/18.
(2) Amount represents principal and interest collected suring the FY 17/18 tax roll for Debt Service Payment due in FY 18/19.
(3) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments.
(4) Outstanding bond balance at June 30, 2018.
(5) The schedule presents the information for each individual local obligation bonded district. Assessment Districts
94-3 Merano and 01-01 Silver Spur were refunded and obligated to pay Debt Service to Series 2003 Assessment Revenue Bonds
see note 13 for additional information.
Source: Wildan Financial Annual Report
205
City of Palm Desert
Direct and Overlapping Government Activites Debt
June 30, 2018
2017/18 Assessed Valuation:14,447,437,657$
City's Share of
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT:Total Debt 6/30/18 % Applicable (1) Debt 6/30/18
Desert Community College District 314,935,000$ 18.654% 58,747,975$
Desert Sands Unified School District 294,895,000 34.138% 100,671,255
Palm Springs Unified School District 405,516,959 4.382% 17,769,753
City of Palm Desert Limited Obligation Improvement Bonds 1,183,000 100.000%1,183,000
City of Palm Desert 1915 Act Bonds 24,903,000 100.000%24,903,000
City of Palm Desert Community Facilities District No. 91-1 0 100.000%-
City of Palm Desert Community Facilities District No. 2005-1 29,195,000 100.000%29,195,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 232,469,983$
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Riverside County General Fund Obligations 812,829,106$ 5.479%44,534,907$
Riverside County Pensions Obligations 266,365,000 5.479%14,594,138
Desert Sands Unified School District Certificates of Participation 43,550,000 34.138%14,867,099
City of Palm Desert General Fund & Enterprise Obligations 4,151,330 100.000%4,151,330 (3)
Coachella Valley Recreation and Park District Certificates of Participation 778,538 26.689%207,784
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT 78,355,258$
Less: Riverside County Supported Obligations 272,754
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT 78,082,504$
OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)530,573,028$ 0.252-100%251,814,224$
TOTAL CITY DIRECT DEBT -$
TOTAL GROSS OVERLAPPING DEBT 558,488,135$
TOTAL NET OVERLAPPING DEBT 558,215,381$
GROSS COMBINED TOTAL DEBT 558,488,135$ (2)
NET COMBINED TOTAL DEBT 558,215,381$
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided
by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
(3) Includes special assessment debt with government commitment, enterprise obligations with government comitment, and lease revenue bonds; if applicable.
Ratios to 20107-18 Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.61%
Total Direct Debt 0.00%
Gross Combined Total Debt 3.87%
Net Combined Total Debt 3.86%
Ratios to Redevelopment Successor Agencies Incremental Valuation (9,333,112,954)$
Total Overlapping Tax Increment Debt 2.70%
Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department
206
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Value 14,447,437,657$
Debt Limit (15% of Assessed Value) (1)2,167,115,649
Debt Applicable to Limit:
General Obligation Bonds 1,368,000
Less: Amount set aside for
repayment of general obligation
debt -
Total Debt Applicable to Limit -
Legal debt margin 2,165,747,649$
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Debt Limit 2,076,172,690 1,999,731,410 1,969,825,360 1,884,624,932 1,811,620,824 1,869,699,132 1,963,741,235 2,059,815,120 2,114,442,742 2,167,115,649
Total Net debt applicable to limit 2,702,000 1,719,000 1,658,000 1,624,000 1,589,000 1,526,000 1,489,000 1,451,000 1,410,000 1,368,000
Legal debt margin 2,073,470,690 1,998,012,410 1,968,167,360 1,883,000,932 1,810,031,824 1,868,173,132 1,962,252,235 2,058,364,120 2,113,032,742 2,165,747,649
Total net debt applicable to the limit
as a percentage of debt limit 0.13% 0.09% 0.08% 0.09% 0.09% 0.08% 0.08% 0.07% 0.07% 0.06%
(1) Section 43605 of the California Government Code.
Source: California Municipal Statistic, Inc. San Francisco
Legal Debt Margin Calculation for Fiscal Year 2018
FISCAL YEAR
207
City of Palm Desert
Pleadge-Revenue Coverage
Last Ten Fiscal Years
Special Special
Fiscal Assessment Assessment
Year Collections Principal Interest Coverage Collections Principal Interest Coverage
2009 a 8,486,467 2,816,000 5,666,827 1.0004 33,095,785 12,610,000 20,043,623 1.013
2010 c 6,304,563 3,793,000 5,515,677 0.6773 33,292,785 14,145,000 19,516,455 0.989
2011 9,695,868 3,452,000 5,595,543 1.0717 39,400,572 22,240,000 18,767,205 0.961
2012 8,822,163 3,332,000 4,897,651 1.0720 32,941,958 e 15,290,000 17,651,958 1.000
2013 9,524,786 3,786,896 5,255,558 1.0533 33,473,418 e 16,315,000 17,158,418 1.000
2014 d 14,895,214 12,324,000 d 4,954,432 0.8621 38,444,447 e 23,650,000 14,794,447 1.000
2015 10,848,129 g 8,159,000 f 4,543,692 0.8540 32,294,255 e 18,295,000 13,999,255 1.000
2016 8,537,227 25,401,000 h 4,463,786 0.2859 34,810,024 e 18,055,000 16,755,024 1.000
2017 5,896,670 3,192,000 3,233,399 0.9177 37,535,680 e, i 16,255,000 e, i 21,280,680 1.000
2018 5,590,479 3,545,000 3,088,864 0.8427 23,428,001 e, i 14,235,000 e, i 9,193,001 1.000
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
a - The City issued $2.015 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2009-2010 with the first interest payment paid on March 2, 2010.
b - Tax increment bonds are backed by property tax increment based on calculation provided by the Riverside County tax assessor office.
Additional information on tax increment can be found in the notes to the financial statements.
c - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011
In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment was paid on September 2, 2010.
d- A portion of the $50.51 (2007) and $17.915 (2008) million CFD 2005-1 (University Park) was prepaid in the amount of $6.269 Million. The prepaid
$6.269M and $2.280 (2004-1) were called during on September 2, 2014.
e- The total amount payable for the bonded obligations is disbursed by the State of California Department of Finance to the City of Palm Desert Successor Agency.
The annual collection equal the annual obligations.
f The City called the $5.225 Million Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable) in
full on September 2, 2014 in the amount of $4.485 Million. The Energy Fund used the remaining $5.225 Bond Funds in the amount of $2.155 Million
in addition to the $2.5 Million loan from the City General Fund as proceeds to call the bonds.
g The City of Palm Desert loaned the Energy Fund $2.5 Million to call the $5.225 Million Energy Independence Program Lease Revenue Bonds,
Series 2009 (Federally Taxable). The $2.5 Million is included as Special Assessment Collections.
h- During the Fiscal Year 2015-16 the Communities Facilities District 2005-1 (University Park Series, Special Tax Bonds Series 2006A and Series 2007
defeased $20.885M of the original issued $67.715M.
i- During the Fiscal Year 2016-17 the Successor Agency issued four series of bonds (1) the Tax Allocation Refunding Bonds, 2017 Series A ($52.39M),
(ii) Taxable Tax Allocation Refunding Bonds, 2017 Series B ($140.130M), Tax allocation Refunding Bonds, 2017 Series H-A ($7.365M), and
(iv) Taxable Tax Allocation Refunding Bonds, 2017 H-B ($45.815M). See Note 18 Tax Allocation Bonds. The 2017 Refunding Bonds refunded all of the
tax allocation revenue bonds; with the exception of the Project Area No. 1 2007A Bonds, and the Project Area No. 2 2003 Bonds.
Tax Increment b
Debt ServiceDebt Service
Special Assessment Bonds
208
City of Palm Desert
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Percentage Per Capita City Riverside Percentage County
Year City Increase Personal Personal Unemployment County Increase Unemployment
End Population (Decrease)Income CY a Income CY Rate b Population (Decrease)Rate b
2018 52,769 4.0% 2,831,046,858$ 53,650$ 5.00% 2,415,955 1.31% 4.80%
2017 50,740 2.8% 2,789,208,727$ 54,971$ 4.00% 2,384,783 1.57% 5.70%
2016 49,335 -3.4% 2,747,988,894$ 55,701$ 4.20%2,347,828 1.71%6.70%
2015 51,053 1.3% 2,707,378,221$ 53,031$ 4.60%2,308,441 1.25%6.50%
2014 50,417 0.9% 2,667,367,705$ 52,906$ 4.90%2,279,967 1.10%8.40%
2013 49,949 1.0% 2,627,948,478$ 52,613$ 6.00%2,255,059 1.23% 10.20%
2012 49,471 0.7% 2,589,111,801$ 52,336$ 7.74%2,227,577 0.44% 11.99%
2011 49,111 -5.7% 2,550,849,065$ 51,940$ 8.67%2,217,778 3.66% 14.44%
2010 52,067 1.1% 2,513,151,788$ 48,268$ 8.8%2,139,535 1.51% 14.65%
2009 51,509 1.2% 2,476,011,613$ 48,069$ 6.8%2,107,653 0.93% 11.46%
a - Personal Income estimated based on average growth rate of previous four years. The growth rate factor used was 1.5%. Income data will be
updated once the actual data is available.
b - Unemployment rate for fiscal year 17/18 is based on annual information from State of California Employment Development Department
Labor Market Information Division (not seasonally adjusted)
Sources: State Department of Finance, U.S. Dept of Labor, State Employment Development Department
209
City of Palm Desert
Principal Employers
Current and Ten Years Ago
Employer Employees Rank
Percentage of
Total City
Employment
Employer Employees Rank
Percentage of
Total City
Employment
JW Marriot-Desert Springs
Resort & DS Villas 2,304 1 9.76%
JW Marriot-Desert Springs
Resort 2,000 1 6.08%
Universal Protection Services 1,500 2 6.36%
Heckmann Corp.1,811 2 5.50%
Securitas-Security Service
USA 700 3 2.97%
Guthy Renker Corp.825 3 2.51%
Organization of Legal Pro's 501 4 2.12%
College of the Desert 711 4 2.16%
Sunshine Landscape 500 5 2.12%
Securitas-Security Service USA 700 5 2.13%
Marriott Shadow Ridge 300 6 1.27%
Desert Valley Industries 400 6 1.22%
Desert Arc 250 7 1.06%
WalMart Super Center 350 7 1.06%
Costco Wholesale 250 8 1.06%
William Bower Associates 350 8 1.06%
Bighorn Golf Club 250 9 1.06%
Macy's West 300 9 0.91%
Spectrum 236 10 1.00%
Bighorn Golf Club 250 10 0.76%
Totals 6,791 29%Totals 7,697 23%
Sources: Infogroup, CA Employment Development Department - Federal and State Government not included
2018 2009
210
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2018
City/ Municipal Government
Form of Government:Council - City Manager/Charter City
Date of Incorporation:November 26, 1973
Number of Employees:109 Full-time Employees
Size of City:26.96 Square Miles
Geographic Location:Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
Streets:170 paved street miles
Number of Business Licenses:9,094 active business licenses
Number of Hotels & Rooms: 17 hotels, 2,616 rooms
CONTRACT SERVICES:
Police Department Contract with Riverside County Sheriff - 78 positions plus 36 support staff
Fire Department Contract with Riverside County/State Fire 54 positions plus 11 Fire Prevention staff
Animal Control Riverside County Animal Services
Water & Sewer Coachella Valley Water District
Trash Collection Burrtec - Waste Management
Electric Southern California Edison
Gas Southern California Gas
Telephone Verizon
Airport Palm Springs International Airport
Public Education
Elementary School (grades K - 5) 4
Middle School (grades 6 - 8)1
High School (grades 9 - 12)1
Community College - College of the Desert 1
CSUSB - Palm Desert Campus 1
UCR - Palm Desert Graduate Center 1
Insurance Coverage
General Liability Coverage Calif. Joint Powers Insurance Authority $50 Million/Event
(Excludes Earthquake & Flood)Excess Coverage: from $2 Million up to $50 Million limit
Special Events Calif. Joint Powers Insurance Authority $1 Million
Worker's Compensation Calif. Joint Powers Insurance $10 Million
Property Insurance Calif. Joint Powers Insurance Based on Prop. Value
Health Insurance
Medical California PERS; choice of PPO, HMO, Kaiser, Blue Shield
Dental Delta Dental
Vision Vision Service Plan
Disability Insurance Disability - Standard Insurance Company
Life Standard Insurance Company
Retirement California PERS - Public Employees' Retirement System
Source: City of Palm Desert
211
City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program
Last Ten Fiscal Years
Function / Program 2018 2017 2016 2015 2014 2013 a 2012 a,b 2011 a 2010 2009
General Government
City 31 32 32 34 34 33 26 31 31 49
Economic Dev & Housing # 10 11 13 13 13 12 17 24 25 19
Public Safety 29 29 28 26 25 24 24 25 26 35
Police & Fire (1)179 170 163 169 173 157 162 155 151 148
Public Works 39 39 40 40 40 38 40 47 49 53
Totals 288 281 276 282 285 264 271 284 284 318
(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, Cal-Fire, animal control, health services,
legal services and landscape maintenance.
a - As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013.
b - On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriff's Department
212
City of Palm Desert
Operating Indicators by Function / Program
Last Ten Fiscal Years
Function / Program 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
General Government
Business License Inspections ***24 33 196 477 515 473 617
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons)56,346 54,301 52,772 54,865 57,935 52,131 49,205 53,108 51,483 58,198
Recyclables Collected 28,119 26,651 23,818 24,611 26,424 24,862 23,588 22,867 20,591 22,155
Public Safety
Physical Arrests 1,654 1,620 1,284 1,946 1,348 986 1,012 1,134 1,342 1,446
Parking Violations 575 587 712 794 386 198 569 332 933 1,278
Traffic Violations 7,012 6,939 6,223 5,525 5,284 5,080 6,216 8,360 10,200 9,162
Emergency Responses-Fire Department 9,984 9,617 9,285 8,628 8,235 7,907 7,151 7,720 7,772 7,149
Fires Extinguished 90 68 103 88 106 104 101 107 104 119
Fire Inspections 3,378 1,274 2,118 2,989 2,552 3,048 5,235 4,651 4,825 8,248
Building Permits Issued 3,644 4,734 4,704 4,909 5,552 4,548 3,448 3,711 3,230 3,637
Building Inspections Conducted 18,601 23,542 24,756 24,057 24,830 19,107 14,749 14,069 14,080 18,040
Public Works
Street Resurfacing (miles)(3)7.3 25.8 2.9 8 34 23 60 5 8 13
Parks, recreation & culture
Athletic Field Permits Issued 2,934 3,197 2,997 4,430 6,548 2,635 3,682 6,050 6,281 6,149
Amphitheater / Pavilions Permits Issued 121 106 104 283 247 128 266 286 226 133
Community Center Admissions 60,769 51,694 64,493 53,426 50,204 53,062 69,240 30,298 59,986 55,954
Aquatic Center Admissions (2)53,739 58,023 60,359 64,103 43,545 48,663 45,909 4,329 - -
(1) The City operates as a "contract city" utilizing, primarily, agreement 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.
(2) Aquatic Center operations began in June 2011, managed by the YMCA.
(3) New methods of street resurfacing have improved efficiency, therefore equaling more miles resurfaced.
(*)Per Building & Safety Department business license inspections are no longer done.
Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste and The YMCA.
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City of Palm Desert
Capital Asset Statistics by Function / Program
Last Ten Fiscal Years
Function / Program 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
General Government
Contracted Services (1)
Collection trucks 24 24 35 30 30 36 36 51 51 54
Public Safety - Police & Fire
Police Stations 1 1 1 1 1 11111
Police Sub Stations 1 1 1 1 1 10022
Patrol Units-Cars 30 29 29 29 26 28 31 31 26 30
Patrol Units-Motorcycles 9 9 11 10 10 10 10 10 10 10
Fire Stations 3 3 3 3 3 33333
Fire Trucks 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Rsrvd 4 plus 1 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd
Ambulance 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Rsrvd 4 plus 3 Rsrvd 4 plus 1 Rsrvd 4 plus 1 Rsrvd 3 plus 1 Spprt 3 p lus 1 Spprt 3 plus 1 Spprt
Fire Prevention Pick-ups 3 3 3 3 3 33333
Public Works
Streets (miles)170 170 170 170 170 170 174 159 159 159
Traffic Signals 99 99 98 98 98 98 98 97 99 99
Parks, recreation & culture
Acreage 201 201 201 201 201 201 201 201 201 212
Total Parks 13 13 13 13 13 13 13 13 13 14
Playgrounds 16 16 16 16 16 16 16 16 16 16
Baseball/softball diamonds 8 8 8 8 8 88889
Soccer/football fields 9 9 9 9 9 99999
Basketball Courts 11 11 11 11 11 11 11 11 11 11
Tennis Courts 10 10 10 10 10 10 10 10 10 10
Volleyball Courts 8 8 8 8 8 88888
Community Centers 2 2 2 2 2 22222
Skateboard Parks 2 2 2 2 2 22222
Aquatic Center (2)11111111
Commercial Office Space
(Parkview Office Complex)
Leaseable Space (square feet)50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322
Occupancy Rate 82%84%90%90%86%88%83%90%97%98%
Number of Tenants by Type
Government (State, local regional)7 7 9 8 9 8 10 10 10 11
Non-Profit 3 3 4 3 4 45775
Private 2 3 1 1 4 53467
Square Footage lease by tenant
Government (State, local regional)30,907 32,287 33,127 30,907 31,921 31,321 32,021 32,696 34,617 34,617
Non-Profit 4,061 4,061 3,561 6,269 3,294 4,467 5,215 5,663 4,735 4,735
Private 6,218 6,938 8,688 8,025 8,025 8,513 4,310 7,350 10,212 10,212
Vacant 9,136 8,416 4,946 5,121 7,082 6,021 8,776 4,613 758 758
Municipal Golf Course
(Desert Willow Golf Resort)
Courses - Fire Cliff and Mountain View 2 2 2 2 2 22222
Holes 36 36 36 36 36 36 36 36 36 36
Golf Carts 172 172 172 172 172 172 172 172 160 160
Clubhouse square footage 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 33,000 33,000
Rounds per Course
Fire Cliff 46,620 39,424 39,366 44,845 45,841 45,645 45,005 44,745 45,988 46,041
Mountain View 43,712 39,931 40,910 42,407 43,160 38,669 41,666 39,178 37,146 34,899
Total Annual Rounds 90,332 79,355 80,276 87,252 89,001 84,314 86,671 83,923 83,134 80,940
(1) The City operates as a "contract city" utilizing, primarily, agreement 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.
(2) Aquatic Center operations began in June 2011
Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste
214
Note: This section is not required by GASB No. 44, however, City believes that statistical
information is beneficial to the reader.
On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency
as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created
the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see note 16 and note 17.
Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
215
Redevelopment
Agency
Project Areas
CO
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FRANK SINATRA DR
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CALIFO R N I A AVE
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PARK VIEW DR
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MAGNESIA FALLS
D
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DINAH
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HAYSTACK RD
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GRAPEVINE ST
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FAIRWAY DR
HOVLEY LN E
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FRED
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COUNTRY CLUB DR
FRANK SINATRA DR
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COUNTRY CLUB DR
MO
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CO
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0
Project Area No. 1
Original
1975
Project Area No. 1
Added Territory
1982
Project Area No. 3
1991
Project Area No. 2
1987
Project Area No. 4
1993
0120.5
Miles
Project Area No. 1 - Original (1975)
Project Area No. 1 - Added Territory (1982)
Project Area No. 2 (1987)
Project Area No. 3 (1991)
Project Area No. 4 (1993)
City Limits
City of Palm Desert
July, 2004
216
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2018
DESCRIPTION
$15,745,000
Tax Allocation
Revenue
Bond
Years 30
Bond Issue Date 03/26/03
Final Maturity Date 08/01/33
Highest Interest Rate 5.00%
Bond Issue Amount 15,745,000$
Outstanding Bond Amount 15,745,000$
Call Premium 1 - 2.00%
Bond Insurer MBIA
Reserve Requirement (1)1,574,500
Reserve Balance (1)(1)
Called Bonds -$
Principle due 18/19 -
Interest Due 18/19 769,006
Arbritage Yield Rate 4.9502%
Arbritage-Amount Owed -
Arbritage Five Year Due Date:03/26/23
DESCRIPTION
Non-Housing
Tax Allocation
Bond (Exempt)1
Non-Housing
Tax Allocation
Bond (Taxable)2
Years 13 24
Bond Issue Date 01/31/17 01/31/17
Final Maturity Date 10/01/30 10/01/41
Highest Interest Rate 5.000% 4.250%
Bond Issue Amount 52,390,000$ 140,130,000$
Outstanding Bond Amount 52,390,000$ 140,130,000$
Call Premium 0.00%0.00%
Bond Insurer BAM BAM
Reserve Requirement (1)5,828,809 9,680,207
Reserve Balance (1)(1) (1)
Called Bonds -$ -$
Principle due 18/19 2,740,000 6,545,000
Interest Due 18/19 2,427,050 4,500,828
Arbritage Yield Rate 3.659%3.659%
Arbritage-Amount Owed - -
Arbritage Five Year Due Date:01/31/22 01/31/22
DESCRIPTION
Housing
Tax Allocation
Bond (Exempt)3
Housing
Tax Allocation
Bond (Taxable)4
Years 14 6
Bond Issue Date 01/31/17 01/31/17
Final Maturity Date 10/01/31 10/01/23
Highest Interest Rate 5.000%3.000%
Bond Issue Amount 7,365,000$ 45,815,000$
Outstanding Bond Amount 7,365,000$ 45,815,000$
Call Premium 0.00%0.00%
Bond Insurer BAM BAM
Reserve Requirement (1)687,519 4,581,500
Reserve Balance (1)(1) (1)
Called Bonds -$ -$
Principle due 18/19 365,000 7,560,000
Interest Due 18/19 310,194 849,150
Arbritage Yield Rate 2.907%2.907%
Arbritage-Amount Owed - -
Arbritage Five Year Due Date:01/31/22 01/31/22
(1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero.
1 Refunded PA 1-4 tax exempt portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M)
2 Refunded PA 1-4 taxable portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M)
3 Refunded Housing tax exempt portion of bonds (12.1M and $86.155M)
4 Refunded Housing taxable portion of bonds (12.1M and $86.155M)
Source: City of Palm Desert and Successor Agency to the Palm Desert Redevelopment Agency
217
City of Palm Desert
Historical Tax Increment/
Redevelopment Property Tax Trust Fund Summary
All Project Areas
Project Area No. 1 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18
Gross Tax Increment 48,562,361 48,767,884 51,298,203 53,437,088 56,610,029 58,222,677 59,842,517
Less:
Housing Set-Aside*9,712,472 9,753,577 10,259,641 10,687,418 11,322,006 11,644,535 11,968,503
SB 2557 610,071 714,717 673,261 686,944 629,449 725,403 662,238
Gross Pass-Throughs 18,843,301 18,642,892 20,111,377 21,241,903 22,961,604 25,052,727 22,919,420
Net Tax Increment 19,396,517 19,656,698 20,253,925 20,820,823 21,696,970 20,800,012 24,292,356
RPTTF Amount Deposited 29,927,559 26,848,203 25,090,381 26,530,801 24,696,424 25,131,004 19,798,469
Project Area No. 2 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18
Gross Tax Increment 14,335,941 13,700,701 13,556,184 15,232,096 16,232,329 16,302,895 16,916,067
Less:
Housing Set-Aside*2,867,188 2,740,140 2,711,237 3,046,419 3,246,466 3,260,579 3,383,213
SB 2557 176,347 200,429 179,214 192,900 180,457 202,348 187,481
Gross Pass-Throughs 5,381,108 4,983,714 4,967,602 5,665,961 6,078,194 6,103,481 6,372,798
Net Tax Increment 5,911,298 5,776,418 5,698,132 6,326,816 6,727,213 6,736,487 6,972,575
RPTTF Amount Deposited 7,503,009 7,568,241 7,017,531 5,441,721 5,547,427 5,887,814 5,596,560
Project Area No. 3 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18
Gross Tax Increment 3,847,543 3,575,242 3,760,421 3,754,999 4,039,902 4,360,574 4,364,606
Less:
Housing Set-Aside*769,509 715,048 752,084 751,000 807,980 872,115 872,921
SB 2557 49,034 52,858 49,871 48,901 45,175 52,745 8,947
Gross Pass-Throughs 1,671,676 1,277,864 1,377,700 1,371,786 1,510,219 1,656,158 1,662,390
Net Tax Increment 1,357,325 1,529,472 1,580,766 1,583,312 1,676,528 1,779,556 1,820,348
RPTTF Amount Deposited 2,088,587 1,491,532 1,357,678 1,237,930 1,290,623 1,295,156 1,443,999
Project Area No. 4 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18
Gross Tax Increment 11,342,081 11,153,422 11,941,800 13,057,891 13,889,272 14,287,533 14,685,301
Less:
Housing Set-Aside*2,268,416 2,230,684 2,388,360 2,611,578 2,777,854 2,857,507 2,937,060
SB 2557 143,002 164,046 156,818 166,634 154,976 178,812 162,715
Gross Pass-Throughs 6,730,420 7,530,089 7,901,830 8,381,422 8,866,804 9,433,947 9,943,062
Net Tax Increment 2,200,243 1,228,603 1,494,792 1,898,257 2,089,637 1,817,267 1,642,464
RPTTF Amount Deposited 3,910,755 4,064,105 3,675,440 3,071,966 2,443,507 2,610,660 4,858,527
*For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution.
218
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
760-346-0611
www.cityofpalmdesert.org
219