HomeMy WebLinkAboutCity of Palm Desert ACFR FY2223AnnualComprehensiveFinancial Report
FISCAL YEAR 2022-2023
CITY OF PALM DESERT, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2023
Prepared by the Finance Department
City Treasurer/Director of Finance
Veronica Chavez
Deputy Director of Finance
John Ramont
Deputy Director of Finance
Liberty Urban, CPA
Finance Staff
(in alphabetical order by positions and last names)
ACCOUNTANT
Mitchell Arbaugh
ACCOUNTANT
Arlene Arellano
ACCOUNTANT
Sarah Sullivan
ACCOUNTING TECHNICIAN II
Horacio Celaya
ACCOUNTING TECHNICIAN II
Kalaina Perez
ACCOUNTING TECHNICIAN II
Miguel Zepeda
ADMINISTRATIVE ASSISTANT
Sarah Castro
FINANCE SUPERVISOR
James Bounds
MANAGEMENT ANALYST I
Skky Garcia
SENIOR CONTRACTS & GRANTS
ANALYST
Joe Barron
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CITY OF PALM DESERT, CALIFORNIA
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2023
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 ......................................................................................................................................... vii
Organizational Chart ............................................................................................................................................. viii
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 .......................................................................................................... 20
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position ................................................................................................................. 23
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ...................................................................................................... 24
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities ........................................................................................................................... 27
Statement of Net Position – Proprietary Funds .............................................................................................. 28
Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds ................................................................................................................ 29
Statement of Cash Flows – Proprietary Funds .............................................................................................. 30
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, CALIFORNIA
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous Plan – Agent Multiple-Employer Schedule of Changes
in Net Pension Liability and Related Ratios ................................................................................................ 88
Miscellaneous Plan- Agent Multiple – Employer Schedule of Plan Contributions ............................................ 90
Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios ................................................... 92
Schedule of Plan Contributions – OPEB ........................................................................................................... 94
Budgetary Comparison Schedule by Department – General Fund ................................................................... 96
Budgetary Comparison Schedule – Prop A Fire Tax ........................................................................................ 98
Budgetary Comparison Schedule –Housing Asset Fund .................................................................................. 99
Budgetary Comparison Schedule – Housing Authority ................................................................................... 100
Notes to Required Supplementary Information ............................................................................................... 101
SUPPLEMENTARY SCHEDULES
Combining Balance Sheet – Other Governmental Funds ............................................................................... 103
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Other Governmental Funds ................................................................................................. 104
Other Governmental Funds – Special Revenue Funds .................................................................................. 107
Combining Balance Sheet – Other Special Revenue Funds .......................................................................... 113
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Other Special Revenue Funds ..................................................................................... 114
Budgetary Comparison Schedules – Special Revenue Funds:
Traffic Safety ............................................................................................................................................. 119
Gas Tax..................................................................................................................................................... 120
Measure A ................................................................................................................................................. 121
Housing Mitigation Fees ........................................................................................................................... 122
Community Development Block Grant ...................................................................................................... 123
Child Care Program .................................................................................................................................. 124
Public Safety Police Grants ...................................................................................................................... 125
New Construction Tax ............................................................................................................................... 126
Planned Drainage ..................................................................................................................................... 127
Parks and Recreational Facilities ............................................................................................................. 128
Traffic Signals ........................................................................................................................................... 129
CITY OF PALM DESERT, CALIFORNIA
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
Fire Facilities Restoration ...................................................................................................................... 130
Recycling................................................................................................................................................ 131
Energy Independence Loan ................................................................................................................... 132
Air Quality Management ........................................................................................................................ 133
Aquatic Center ....................................................................................................................................... 134
Cannabis Compliance ............................................................................................................................ 135
El Paseo Assessment District ................................................................................................................ 136
Landscape and Lighting Districts Nos. 1-17 .......................................................................................... 137
Affordable Housing Fund ....................................................................................................................... 138
Permanent Local Housing Allocation Grant ........................................................................................... 139
Other Governmental Funds – Capital Projects ............................................................................................ 141
Combining Balance Sheet – Other Capital Projects Funds ......................................................................... 142
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Other Capital Projects Funds .................................................................................... 146
Budgetary Comparison Schedules – Capital Project Funds:
Capital Properties .................................................................................................................................. 150
Capital Projects Reserve ....................................................................................................................... 151
Drainage Facilities ................................................................................................................................. 152
Economic Development ......................................................................................................................... 153
Parks and Recreational Facilities .......................................................................................................... 154
Art in Public Places ................................................................................................................................ 155
Signalization ........................................................................................................................................... 156
Capital Golf ............................................................................................................................................ 157
Buildings................................................................................................................................................. 158
Other Governmental Funds – Debt Service Funds ...................................................................................... 159
Balance Sheet – Other Debt Service Fund .................................................................................................. 160
Statement of Revenues, Expenditures and Changes in
Fund Balances – Other Debt Service Fund ........................................................................................... 161
Budgetary Comparison Schedule – Debt Service Fund:
City Highland Undergrounding ............................................................................................................... 162
Internal Service Funds ................................................................................................................................. 163
Combining Statement of Net Position – Internal Service Funds .................................................................. 164
Combining Statement of Revenues, Expenses and Changes
In Fund Net Position – Internal Service Fund ........................................................................................ 165
Combining Statement of Cash Flows – Internal Service Funds ................................................................... 166
CITY OF PALM DESERT, CALIFORNIA
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
Custodial Funds ............................................................................................................................................ 167
Combining Statement of Net Position – All Custodial Funds ....................................................................... 168
Combining Statement of Changes in Fiduciary Net Position – All Custodial Funds .................................... 169
STATISTICAL SECTION
Description of Statistical Section ........................................................................................................................ 171
Financial Trends:
Net Position by Component .......................................................................................................................... 173
Changes in Net Position ............................................................................................................................... 174
Fund Balances of Governmental Funds ....................................................................................................... 177
Changes in Fund Balances of Governmental Funds ................................................................................... 178
Graphs – Changes in Fund Balances of Governmental Funds ................................................................... 179
Supplemental Historical General Fund Revenues ....................................................................................... 180
Supplemental Graph – Historical General Fund Revenues ......................................................................... 181
Supplemental Historical General Fund Expenditures .................................................................................. 182
Supplemental Graph – Historical General Fund Expenditures .................................................................... 183
Supplemental Historical General Revenue and Expenditures Per Capita ................................................... 184
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property .............................................................. 185
Historical Net Assessed Taxable Values Citywide and
Graph – Assessed Valuation Growth ........................................................................................................ 186
Supplemental FY 2020 and 2019 Breakdown of Basic 1% Property
Tax Rate Not In Redevelopment Project Area .......................................................................................... 187
Property Tax Rates Direct and Overlapping Property Tax Rates ................................................................ 188
Principal Property Taxpayers ....................................................................................................................... 189
Property Tax Levies and Collections ............................................................................................................ 190
Supplemental Top 25 Sales Tax Generators and
Graph – Historical Sales Tax Trends ........................................................................................................ 191
Debt Capacity:
Ratios of Outstanding Debt by Type ............................................................................................................ 192
Ratios of General Bonded Debt Outstanding ............................................................................................... 193
Supplemental Special Assessment Information ........................................................................................... 194
Direct and Overlapping Government Activities Debt .................................................................................... 195
Legal Debt Margin Information ..................................................................................................................... 196
Pledged-Revenue Coverage ........................................................................................................................ 197
Demographic and Economic Information:
Demographic and Economic Statistics ......................................................................................................... 198
Principal Employers ...................................................................................................................................... 199
Supplemental Miscellaneous Statistics ........................................................................................................ 200
CITY OF PALM DESERT, CALIFORNIA
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2023
Table of Contents
Page
Number
Operating Information:
Full-Time Equivalent City Government Employees by Function/Program ................................................... 201
Operating Indicators by Function/Program .................................................................................................. 202
Capital Asset Statistics by Function/Program .............................................................................................. 203
SUPPLEMENTAL REDEVELOPMENT CUSTODIAL STATISTICAL SECTION
Redevelopment Custodial Project Areas Map ............................................................................................. 205
Tax Allocation Bond Issue Information ......................................................................................................... 206
Historical Tax Increment – Redevelopment Property
Tax Trust Fund Summary ...................................................................................................................... 207
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CITY OF PALM DESERT
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
INFO@PALM-DESERT.ORG
January 19, 2024
Residents of Palm Desert,
Honorable Mayor and Members of the City Council
The Finance Department is pleased to present the Annual Comprehensive Financial Report (ACFR) of the
City of Palm Desert for the fiscal year ended June 30, 2023.
The financial statements are prepared in accordance with generally accepted accounting principles (GAAP) and
the Governmental Accounting Standards Board (GASB). We believe the data, as presented, is accurate in all
material respects and is presented in a manner that fairly represents the financial position and changes in
financial position of the City as measured by the financial activity of each of its funds. We also believe that all
disclosures necessary to enable the reader to fully understand the City's financial activities have been presented.
Responsibility for the accuracy, completeness and reliability of the information contained in this report rests with
the City.
The City of Palm Desert conducts an annual audit, which is performed by an independent certified public
accountant. The independent audit of the City’s financial statements for fiscal year ended June 30, 2023 was
conducted by Lance Soll & Lunghard, LLP. The auditor’s unmodified opinion on the basic financial statements
is included in the Financial Section of this report. This is the most favorable opinion.
As part of the City’s annual audit engagement, the auditors reviewed the City’s internal control structure as well
as compliance with applicable laws and regulations. Because the cost of internal control should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute assurance, that the financial
statements are free of any material misstatements. The results of the City’s annual audit for fiscal year ended
June 30, 2023 provided no instances of material weaknesses in connection with the internal control structure or
significant violations of applicable laws and regulations.
As recipients of federal, state and county financial resources, the City may be required to undergo an annual
single audit. For the fiscal year ended June 30, 2023, the City will have a single audit performed. Management’s
discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative
introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of
transmittal and should be read in conjunction with it.
PROFILE OF THE CITY OF PALM DESERT
Located in Riverside County in the geographical center of the Coachella Valley, Palm Desert was incorporated
on November 26, 1973, as a General Law City. On November 4, 1997, voters overwhelmingly approved Measure
LL adopting a city charter.
ii
Under the provisions of the charter, the City of Palm Desert has full authority over its own municipal affairs
including: bidding and contracting procedures; regulation of parks, libraries, and other facilities; certain fees;
imposition of taxes; municipal zoning; salaries of officials and employees; municipal utilities; and municipal
election procedures.
The City operates under a Council-Manager form of government. The City Council is comprised of five members
elected to four-year terms every two years by the residents of the City. The City has two-districts, District One
includes neighborhoods in and around the Palm Desert Civic Center core, comprising about 20% of the City’s
population which is represented by one (1) elected City Council member. District Two comprises 80% of the
City’s population, which is represented by four (4) elected City Council members. Each December, the
City Council selects the Mayor from among its members for a one-year term. The City Council appoints the
City Manager and the City Attorney.
The City operates as a “contract city,” primarily utilizing agreements with other governmental entities, private
firms, and individuals to provide many services. Contracted services include: police protection through the
County of Riverside; fire protection through Cal-Fire; animal control; road maintenance and construction
services; legal services; landscape maintenance; and recreation program services. Palm Desert is a member of
the California Joint Powers Insurance Authority that provides insurance coverage for the City. Water, sewage
treatment and wastewater disposal are provided by the Coachella Valley Water District. Southern California Gas
Company supplies natural gas to the City and electric power is provided by the Southern California Edison
Company. Waste Disposal is provided by Burrtec Waste & Recycling Services. Telephone/Internet service is
available through Frontier Communications. Cable television/Internet service is provided by Time Warner
Cable/Spectrum.
The City provides traditional municipal, public enterprise, and housing services as follows:
Municipal Services
Public improvements, infrastructure and maintenance
Public art and community promotion
Planning, zoning, building and engineering
Housing and community development
Code compliance
Economic development and business advocacy
Legislative, city clerk, visitor’s services, public information,
general administration, fiscal services, human resources,
and risk management
Building permitting, inspections and services
Public Enterprise Services Blended & Discrete Component Units
Golf course Palm Desert Housing Authority
Office complex Palm Desert Financing Authority
Internal service Palm Desert Recreational Facilities Corporation
The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council. Activities of the General, Special Revenue, Debt Service,
and Capital Project Funds are included in the annual appropriated budget. Budgetary amounts for Debt Service,
Capital Projects, and certain Special Revenue Funds are adopted annually; however, these budgets are
considered to be long-term in nature.
Palm Desert Civic Center
iii
The City also maintains an encumbrance accounting system of purchase orders and contracts at the fund level
as a means of accomplishing budgetary control. At each fiscal year end, open encumbrances are carried over
to the new fiscal year. Purchase orders are reviewed to ensure that funds are available and that requests are
properly authorized prior to being released to vendors.
The adopted budget for fiscal year 2022-2023 was prepared in accordance with accounting principles generally
accepted in the United States of America. As reflected in the statements and schedules included in the financial
section of this report, the City continues to meet its responsibility for sound financial management.
LOCAL ECONOMY
The City comprises an area of approximately 26 square miles and, as of January 1, 2023, has a population of
50,615 according to data provided by the California Department of Finance. In addition to permanent residents,
approximately 20,000 seasonal residents make Palm Desert their home for three to six months each year.
The City has cultivated a sound foundation of general fund revenues including sales tax, transient occupancy
tax, licenses and permits, property tax, and investment earnings. The City’s main revenue sources are transient
occupancy taxes and sales tax. Due to the timing of the City’s incorporation, in 1973, and the implementation
of Proposition 13, the City receives less than 7 percent of property taxes; therefore, the City relies heavily on
sales tax and transient occupancy tax.
As a community where economic, environmental, social, and cultural development flourishes, Palm Desert is a
much sought-after place to visit and reside. Palm Desert is the first city in Riverside County to create a public art
program and is home to numerous cultural attractions including: the McCallum Theatre for the Performing Arts,
a 1,127-seat theater that hosts a wide variety of A-list entertainers, touring theatrical productions and arts-related
educational programs; the Living Desert Zoo and Gardens, a 1,200-acre facility containing a wide array of plants
and animals from desert regions around the world; and the Palm Desert Art in Public Places program, a museum
without walls, featuring more than 150 works of art on permanent display throughout the city.
Palm Desert’s active, five-star accredited Chamber of Commerce has more than 1,125 members who work to
promote, support, and enhance business prosperity, civic vitality, and the quality of life within their community.
Noted for its extensive array of retail options, including the world-famous upscale shopping destination of
El Paseo, Palm Desert is home to a variety of malls and retail centers including The Shops at Palm Desert,
Desert Crossing, The Gardens on El Paseo, and El Paseo Village.
The internationally acclaimed Desert Willow Golf Resort, one of
the nation’s premier municipal courses, boasts 36 holes of
championship golf and stunning scenery in close proximity to
first-class hotel accommodations and fine dining.
In addition to being the home of the Coachella Valley’s only
community college, College of the Desert, Palm Desert is the
location of satellite campuses for both the University of California,
Riverside, and California State University, San Bernardino, the
region’s only public, four-year university.
The State of California Employment Development Department
Labor Market Information Division reported that the City of Palm Desert had an unemployment rate of 4.8%
compared to Riverside County, which had a rate of 5.0%. Worldwide issues such as inflation and supply-chain
Desert Willow Golf Resort
constraints presented anew set of challenges over the course of the COVID-19 pandemic, and the City continues
to face such challenges through the same lens of fiscal responsibility and sound financial practices that have
proven successful in the past. Despite such challenges, the City of Palm Desert continued to provide exceptional
services and amenities to residents throughout the course of the year.
LONG-TERM FINANCIAL PLANNING
In June 2023, the City Council approved a total of $78.88 million in funding for various capital improvement
projects for Fiscal Year 2023-24. Projects include resurfacing streets, sidewalk repairs and construction,
accessibility improvements, street widening, improving drainage areas, park improvements, and improvements
at Desert Willow Golf Resort and Parkview Office Complex. During Fiscal Year 2022-23, a standalone Capital
Projects Department was created to begin tackling the large list of capital projects in the adopted financial plan.
CERTIFICATES OF AWARDS FOR OUTSTANDING FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Palm Desert for its comprehensive annual
financial report for the fiscal year ended June 30, 2022. This was the 26th consecutive year that the City has
achieved this prestigious award. To receive the Certificate of Achievement, a government must publish an easily
readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and
we are submitting it to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGEMENTS
The preparation of this report is attributable to the efficient and dedicated staff of the Finance Department who
are individually recognized on the title page. The Mayor and the City Council are credited for their support in
planning and conducting the operations of the City in a prudent, responsible and progressive manner.
Recognition is also given to all employees of the City of Palm Desert who continue to serve our community with
commitment and dedication throughout the year. Our greatest appreciation goes to you, the residents of Palm
Desert, for your continued support, input, and guidance in helping us serve you better, thus preserving our city's
quality of life and reputation for innovation and leadership.
Respectfully submitted,
Todd Hil ma (Dec 23, 202311:26 EST)
L. Todd Hileman
City Manager
LAU:Iau
Veronica Chavez (Dec 22, 2023 16:00 PST)
Veronica Chavez
Director of Finance
1V
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Palm Desert
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2023
City Council - Manager Form of Government
CITY COUNCIL
KATHLEEN KELLY
Mayor
KARINA QUINTANILLA
Mayor Pro-Tempore
JAN C. HARNIK
Council Member
GINA NESTANDE
Council Member
EVAN TRUBEE
Council Member
CITY ADMINISTRATION
TODD HILEMAN
City Manager
Robert W. Hargreaves Veronica Chavez
City Attorney - Best, Best & Krieger, LLP Director of Finance/City Treasurer
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
TODD HILEMAN
Executive Director
vii
City Manager Executive
Assistant
Public Affairs
Manager
Management
Analyst I/II
(Environmental
)
HR Manager
Director of
Economic
Development
Records
Coordinator
Management
Analyst I/II (2)
Deputy Clerk
I/ II
Management
Analyst I/II
(Art)
Assistant City
Clerk
Admin
Assistant I/II
City Clerk
Senior Deputy
Clerk
Senior Admin
Assistant
Human
Resources
Analyst I/II (2)
Office
Assistant I/ II
Communicatio
ns Analyst I/II
(2)
Marketing
Specialist
Special Events
Coordinator
Admin
Assistant I/II
Deputy
Director of
Economic
Development
Admin Assistant
Special
Programs
I/II
Housing
Manager
Management
Analyst I/II
Housing
Program Tech
Director of
Finance
Deputy
Director of
Finance
Deputy
Director of
Finance
Finance
Supervisor
Senior
Contracts and
Grants Analyst
Purchasing
Coordinator
Admin
Assistant I/II
Senior
Network
Engineer
Accountant (2)
Information
Systems
Manager
Senior
Information
Systems
Admin
Senior GIS
Admin
Biz Systems
Enterprise
Accounting
Technician
Accounting
Technician (5)
Admin
Assistant I/II
Management
Analyst I
Assistant City
Manager
Receptionist
Social Services
Coordinator
Management
Analyst I/II
City EngineerDirector of
Public Works
Director of
Development
Services
Director of
Capital
Projects
CITY OF PALM DESERT ORGANIZATION CHART
viii
Director of
Public Works
Deputy
Director of
Public Works
Assistant City
Manager
Social Services
Coordinator
Management
Analyst I/II
Director of
Development
Services Deputy
Director of
Development
Services
Senior Admin
Assistant
Management
Analyst I/II
Executive
Assistant
Permit Center
Supervior
Code
Compliance
Office I/II (5)
Permit
Specialist I/II
(4)
Principal
Planner
Chief Building
Official
Code
Compliance
Supervisor
Senior
Building
Inspector
Office
Assistant I/II
Building
Inspector I/II
(3)
Office
Assistant I/II
Senior Planner
Associate
Planner I/II
Assistant
Planner I/II
Chief
Inspector
Land
Development
Tech
Director of
Capital
Projects
Admin
Assistant I/II
Capital
Projects
Manager (2)
PW Inspector
(3)
Senior Project
Manager
Project
Manager (2)
Transportation
Manager
Business
Operations
Manager
Project
Manager
Senior
Managment
Analyst
Admin
Assistant I/II
(2)
Traffic Signal
Specialist
Traffic Signal
Tech I/II (2)
Street
Maintenance
Supervisor
Community
Services
Manager
Admin
Assistant I/II
Office
Assistant I/II
Senior
Maintenance
Worker
Maintenance
Worker I/II/III
(10)
Supervising
Landscape
Supervisor
Landscape
Inspector (3)
Project
Manager
Senior
Facilities
Specialist
Project
Technician
Facilities
Specialist
City Engineer
CITY OF PALM DESERT ORGANIZATION CHART
ix
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1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
the discretely presented component unit, each major fund, and the aggregate remaining fund information of the
City of Palm Desert, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to
the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
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, as of June 30, 2023, 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.
Basis for Opinions
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. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2023, the City adopted new accounting guidance,
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements
and GASB Statement No. 96, Subscription Based Information Technology Arrangements. Our opinion is not
modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for 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.
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material
if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by
a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the
required pension and other postemployment benefits schedules, as listed on the table of contents, presented to
supplement the basic financial statements. Such information is the responsibility of management and, 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.
2
To the Honorable Mayor and Members of the City Council
City of Palm Desert, California
Supplementary 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 accompanying combining and individual fund financial statements and
schedules (supplementary information) are presented for purposes of additional analysis and are not a required
part of the basic financial statements. Such information is the responsibility of management and was derived from
and relates 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 supplementary information is fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the introductory and statistical sections but does not include the basic financial statements and our auditor’s report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express
an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2024, 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 the effectiveness of the City’s 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 City’s internal control over financial reporting and compliance.
Brea, California
January 30, 2024
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, 2023, 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
$825.09 million (net position).
The City’s governmental activities net position increased by $11.51 million, and the net position of
the business-type activities increased by $1.95 million.
During the year, the City’s revenues were $131.59 million and expenses were $120.10 million in
its governmental activities, compared to fiscal year 2022, where revenues were $125.46 million
and expenses were $102.87 million.
In the City’s business-type activities, expenses were $12.48 million, $1.62 million more than the
$10.86 million in prior year expenses. Revenues generated from golf course green fees,
merchandise sales, rental income and other revenues increased by $1.00 million compared to
prior year, and Parkview Office Complex revenues for business-type activities revenues
increased $132.70 thousand from prior year.
The City’s governmental activities program revenues and general revenues increased by
$6.13 million, while program expenses increased by $17.23 million.
Business-type activities revenues increased $1.79 million, from $12.64 million to $14.43 million.
Expenses increased from $10.86 million to $12.48 million.
The City kept its General Fund expenditures within spending limits by $5.39 million. The revenues
available for expenditures exceeded budget by $14.34 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 20.
For governmental activities, these fund statements tell how these services were financed in the short term
as well as what remains for future spending. 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 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 custodial funds held on behalf of
developers and its employees’ retiree service stipend fund. The City’s fiduciary activities are reported in
separate Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position, Combining
Statement of Statement of Assets and Liabilities-All Custodial Funds, and Combining Statement of
Changes in Fiduciary Net Position-All Custodial Funds. 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, 2023, the City’s combined net position increased $4.15 million from
$811.63 million to $815.78 million. A separate review of the net change in the governmental and
business-type activities is provided for the reader. Our analysis focuses on the net position (Table 1) and
changes in net position (Table 2) of the City’s governmental and business-type activities.
7
2023 2022 2023 2022 2023 2022
Current and restricted assets 397.71$ 373.47$ 11.31$ 11.08$ 409.02$ 384.55$
Noncurrent assets
Receivables 3.44 1.23 5.89 5.90 9.33 7.13
Capital assets 422.26 424.81 69.55 67.52 491.81 492.33
TOTAL ASSETS 823.41 799.51 86.75 84.50 910.16 884.01
Deferred outflows of resources 18.10$ 6.75$ -$ -$ 18.10$ 6.75$
841.51 806.26
Current liabilities 45.70 32.33 1.69 1.36 47.39 33.69
Noncurrent liabilities 45.28 24.79 0.23 - 45.51 24.79
TOTAL LIABILITIES 90.98 57.12 1.92 1.36 92.90 58.48
Deferred inflows of resources 5.22$ 16.53$ -$ -$ 5.22$ 16.53$
96.20 73.65
Net position:
Net investment in capital assets 416.68 422.40 69.24 67.33 485.92 489.73
Restricted 172.53 164.63 - - 172.53 164.63
Unrestricted 156.10 146.77 10.54 10.50 166.64 157.27
TOTAL NET POSITION 745.31$ 733.80$ 79.78$ 77.83$ 825.09$ 811.63$
Activities Activities Total
TABLE 1
NE T P OSITION
(IN MILLIONS)
As of June 30, 2023 and 2022
Governmental Business-Type
8
The City’s governmental activities net position increased $11.51 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 20 percent of the overall total net
position. Unrestricted net position increased $9.33 million from $146.77 million in 2022 to $156.10 million
in 2023, and restricted net position increased from $164.63 million to $172.53 million, an increase of
$7.9 million. The increase in unrestricted net position was primarily driven by increases in program
revenues, investment earnings and transient occupancy tax, as tourism continued to strengthen after
pandemic closures were lifted and the City’s investment portfolio took advantage of high interest rates in
both short-term savings vehicles and longer-term investments. A portion of these increases was offset by
$7.29 million in decreases for operating grants and contributions compared to prior year. Total charges
for services increased from $32.22 million in 2022 compared to $38.83 million in 2023, an increase of
$6.13 million; and transient occupancy tax increased from $22.13 million in 2022 to $23.96 million in
2023, representing an increase of $1.83 million. Investment earnings saw an increase of $7.14 million
from 2022 to 2023 and interest rates remained high through the end of fiscal year 2023.
The decrease of $1.41 million in restricted net position was due to restricted special projects decreasing
by $2.76 million from the prior year, while restricted capital projects funds increased by $1.35 million.
During the year, construction on major projects continued; including the completion of the Council
Chambers renovation and Cook Street resurfacing, progress on the Development Services Lobby
renovation, and continuation of the annual street resurfacing program. Investment in capital assets in
governmental funds decreased marginally by $5.72 million, slightly over 1 percent of the total balance.
The City’s governmental activities total assets and deferred outflow of resources combined increased
$35.25 million from $806.26 million in 2022 to $841.51 million in 2023. The majority of increases to total
assets were in cash and investments, which increased by $22.04 million over the prior year. Some of
this increase is related to stronger-than-expected revenue results in General Fund sales tax and charges
for services, along with robust interest earnings for the fiscal year, whereas other portions of the
increase, such as those in the Fire Tax fund, are related to the timing of cash outflows for yearend
expenditures. Increases to deferred outflows made up the remainder of the $35.25 million increase,
totaling $8.91 million in pension deferred outflows and $2.44 million in OPEB deferred outflows.
Total governmental fund liabilities and deferred inflows combined increased by $22.55 million from
$73.65 million in 2022 to $96.20 million in 2023. An increase of $33.86 million in total liabilities, mainly
attributable to a pension liability increase of $19.09 million and an accounts payable increase of
$15.92 million, was offset by a decrease in deferred inflows of $11.31 million, mostly due to increased
deferred inflows from pensions.
The net position of the business-type activities recognized an increase of $1.95 million, from
$77.83 million during 2022 to $79.78 million during 2023. The main factor for the increase in net position
was the addition of just over $2 million in capital assets, primarily new golf carts and equipment for
Desert Willow Golf Course.
Total assets in the business-type activities increased by $2.25 million from $84.50 million in 2022 to
$86.75 million in 2023. The major increase was related to the addition of Desert Willow Golf Course golf
carts and equipment mentioned above. Total liabilities in the business-type activities increased slightly by
$0.56 million from $1.36 million in 2022 to $1.92 million in 2023.
9
2023 2022 2023 2022 2023 2022
REVENUES
Program Revenues:
Charges for services 38.83$ 32.22$ 13.63$ 12.41$ 52.46$ 44.63$
Operating grants and contributions 13.04 20.33 - - 13.04 20.33
Capital grants and contributions 4.67 4.83 0.09 0.19 4.76 5.02
General Revenues:
Property taxes 13.89 12.94 - - 13.89 12.94
Transient occupancy tax 23.96 22.13 - - 23.96 22.13
Sales tax 26.37 27.50 - - 26.37 27.50
Other taxes 3.58 3.63 - - 3.58 3.63
Investment earnings 5.17 (1.97) 0.45 (0.10) 5.62 (2.07)
Other revenues 2.08 3.85 0.26 0.14 2.34 3.99
TOTAL REVENUES 131.59 125.46 14.43 12.64 146.02 138.10
EXPENSES
General Government 26.19 24.74 - - 26.19 24.74
Housing and redevelopment 13.25 9.63 - - 13.25 9.63
Public safety 40.76 37.40 - - 40.76 37.40
Parks, recreation and culture 19.11 8.88 - - 19.11 8.88
Public works 20.65 22.07 - - 20.65 22.07
Interest on long-term debt 0.15 0.15 - - 0.15 0.15
Golf Course - Desert Willow - - 11.07 9.91 11.07 9.91
Office Complex - Parkview - - 1.41 0.95 1.41 0.95
TOTAL EXPENSES 120.10 102.87 12.48 10.86 132.58 113.73
INCREASE (DECREASE) IN NET POSITION 11.49 22.59 1.95 1.78 13.44 24.37
BEGINNING NET POSITION 733.80 711.21 77.83 76.05 811.63 787.26
RESTATEMENT OF NET POSITION 0.02 - - - 0.02 -
ENDING NET POSITION 745.31$ 733.80$ 79.78$ 77.83$ 825.09$ 811.63$
Activities Activities Total
TABLE 2
CHANGES IN NET POSITION
(IN MILLIONS)
As of June 30, 2023 and 2022
Governmental Business-Type
10
Governmental Activities
Total revenue increased by $6.13 million from $125.46 million to $131.59 million. Factors that contributed
to the changes in revenues are as follows:
Transient occupancy tax increased from $22.13 million in 2022 to $23.96 million in 2023, a slight
increase of $1.83 million. The use of hotels and short-term rentals throughout the city continued
to strengthen through 2023, and the implementation of a new online system for short-term rental
registration and payment of transient occupancy taxes gave residents a new, convenient option
for tax and fee remittance.
The City’s sales tax decreased by $1.13 million from $27.50 million in 2022 to $26.37 million in
2023. Despite the year-over-year decrease, sales tax receipts still exceeded budget expectations
by about $680 thousand for 2023.
In 2023, the City’s investment earnings were $7.14 million more than the prior year, an increase
from $(1.97) million in 2022 to $5.17 million in 2023, which was strongly correlated to the high
interest rate environment. The City continued to utilize multiple investment vehicles throughout
the year, taking advantage of high interest rates available in short-term investment pools such as
the Local Agency Investment Fund (LAIF), and the California Asset Management Program
(CAMP), along with the reinvestment of maturing investments into long-term investment products.
Charges for services saw a strong increase from $32.22 million in 2022 to $38.83 million in 2023.
Operating contributions and grants recognized a decrease of $7.29 million. This decrease was
mainly the result of one-time public safety operating contributions and grants that were received
in the prior year, but not in the current year. Capital contributions and grants decreased by
$0.16 million, from $4.83 million in 2022 to $4.67 million in 2023.
Total governmental expenses increased from $102.87 million in 2022 to $120.10 million in 2023, an
increase of about 17 percent. Factors that contributed to the changes in expenditures are as follows:
Expenditures in housing and redevelopment increased from $9.63 million in 2022 to
$13.25 million in 2023, an increase of $3.62 million.
Public safety expenditures increased by $3.36 million, from $37.40 million in 2022 to
$40.76 million in 2023, related to increases in contracted police services of $1 million, and
increases in contracted fire protection services of $1.90 million. The large increase in fire
protection costs was related to the adoption of new memorandums of understanding for fire
protection staff.
Parks, recreation, and culture saw increases in expenditures of $10.23 million, from $8.8 million
in 2022 to $19.11 million in 2023.
11
0%11%
20%
10%
31%
28%
2023
Governmental Activities Net
(Expense) Revenue
1%7%
7%
25%
27%
33%
2022
Governmental Activities Net
(Expense) Revenue
Interest on long
term debt
Housing and
redevelopment
Parks, recreation
and culture
Public works
Public safety
General
Government
0%3%
23%
11%
30%
33%
2023
Governmental Activities Net
(Expense) Revenue
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 14 percent from $12.64 million to
$14.43 million, a $1.79 million increase. The main factor for the change in total revenues was the overall
increase in fee revenue, which recognized a $1.22 million growth from prior year.
The Parkview Office Complex revenues increased slightly from $1.34 million in 2022 to $1.47 million in
2023 due to annual lease adjustments.
Operating expenses for business-type activities increased by $1.62 million from $10.86 million to
$12.48 million. The majority of the increase is related to the growth in operations at Desert Golf resort
which recognized an $1.16 million increase in overall expenditures. Parkview Office Complex accounts
for the remaining increase of $0.46 million due to tenant improvements completed throughout 2023.
THE CITY’S FUNDS
On page 20, the governmental funds balance sheet is shown. The combined fund balance of
$341.59 million increased $13.34 million from $328.25 million. This total includes the General Fund
balance of $120.92 million, which increased by $1.04 million from the prior year. The City’s General Fund
balance has a non-spendable balance of $3.49 million, committed balance of $83.42 million, assigned
2023 2022
General government ($21.01) ($15.13)
Housing and redevelopment (1.76) (3.11)
Public safety (19.18) (12.43)
Parks, recreation and culture (14.39) (3.33)
Public works (7.07) (11.34)
Interest on long term debt (0.15) (0.15)
Total ($63.56) ($45.49)
12
balance of $19.28 million, and $14.72 million of unassigned fund balance. The increase in the General
Fund’s balance was due to increases in sales tax and development fees as building remained strong
throughout the City during fiscal year 2023. Other major fund balance changes are noted below:
The Prop A Fire Tax Special Revenue Fund: The fund balance increased by $3.06 million.
The Housing Asset Fund: The fund had an increase of $1.41 million mainly due to significant
increases in investment earnings during the fiscal year.
The Housing Authority Fund: The fund balance had a slight increase of $132 thousand.
Capital Properties Fund: The fund balance increased $3.02 million from $48.19 million to
$51.21 million. The increase represents the accumulation of fund balance needed to implement
the City’s Capital Improvement Plan for the 2024 fiscal year.
The remaining increase of $4.69 million is spread across multiple non-major funds.
More detailed information about the combined fund balance reserves is presented in Note 16 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, some adjustments were also requested to better meet departmental demands and adjust for
any revenue fluctuations. 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 $86.12 million were $14.34 million more than
the final budgeted revenues of $71.79 million. Sales and transient occupancy taxes continue to be the top
two revenue generators for the City, totaling $50.33 million or 58.27 percent of the total General Fund
actual revenues. The original budget was $71.18 million compared to the final budget of $71.79 million,
an increase of $0.61 million. The City increase in the final budget was related to better-than-expected
increases in both building permit and plan check fee revenues.
The General Fund actual ending expenditures of $85.11 million were $5.39 million less than the final
budget of $90.50 million. There were changes in the original budget compared to the final budget
during the year. The original expenditure budget was $71.18 million compared to the final budget of
$90.50 million, a $19.32 million increase. During the year, the following represent the major changes
between the original budget and the final budget: the City Clerk, Street Maintenance, and Public Buildings
Operations/Maintenance budgets were increased to accommodate new staff and expanded city services.
The budget for transfers out was increased by $16.91 million. These transfers were mainly to capital
project funds to cover upcoming projects, including the Discover PD visitors’ center, Lupine Plaza, Turf
Retrofit grants, the Development Services Lobby renovation, along with property purchases.
13
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2023, the City had $491.79 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
$0.53 million over the prior year, due mainly to depreciation.
2023 2022 2023 2022 2023 2022
Land 82.29$ 82.06$ 53.31$ 53.31$ 135.60$ 135.37$
Construction-in-progress 10.12 18.45 - - 10.12 18.45
Buildings and improvements 82.59 78.28 82.59 78.28
other than buildings 12.51 13.34 12.51 13.34
Machinery and equipment 3.53 4.35 3.74 0.87 7.27 5.22
Infrastructure & right-of-way 241.19 241.66 - - 241.19 241.66
Lease assets 2.13 - - - 2.13 -
Subscription assets 0.41 - - - 0.41 -
TOTALS 422.26 424.80 69.56 67.52 491.82 492.32
Activities Activities Total
TABLE 3
CAPITAL ASSETS AT YEAR-END
(NET OF DEPRECIATION, IN MILLIONS)
For the years ended June 30, 2023 and 2022
Governmental Business-Type
14
This year’s major additions included (in millions):
Buildings $ 6.85
Improvements other than buildings 2.78
Equipment purchases 0.28
Infrastructure 1.04
Land/right of way 0.27
Lease assets – subscriptions 0.00
Subscription assets 0.54
$ 11.76
The City’s fiscal year 2024 adopted capital budget calls for an additional $78.88 million to be spent, plus
continuing capital projects of $14.89 million from prior year, with the majority being spent on streets,
infrastructure, buildings, parks, 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. The City has adopted a
bold capital improvement program to make significant capital improvements throughout the jurisdiction,
and to catch up on projects that may have been deferred in the past. More detailed information about the
City’s capital assets is presented in Note 1h and Note 5 to the financial statements.
Debt
At year-end, the City’s governmental activities had $48.80 million in bonds, claims, compensated
absences, and pension liability versus $26.14 million last year, a increase of $22.66 million as shown in
Table 4. The major increase was the City’s Net Pension liability which went from $19.59 million in 2022 to
$38.68 million in 2023, an increase of $19.09 million.
2023 2022 2023 2022 2023 2022
Compensated absences 2.60$ 2.29$ -$ -$ 2.60$ 2.29$
Due to primary government 2.10 - - - 2.10 -
Lease liability 2.20 2.41 - 2.20 2.41
Financed purchase - - 0.32 0.19 0.32 0.19
SBITA liability 0.40 - - - 0.40 -
Claims and judgments payable 0.68 0.56 - - 0.68 0.56
Special assesments debt with
government commitment 1.03 1.08 - - 1.03 1.08
Limited obligation improvement
bonds 0.26 0.21 - - 0.26 0.21
OPEB liability (net)0.86 - - - - -
Pension liability (net)38.68 19.59 - - 38.68 19.59$
TOTALS 48.80$ 26.14$ 0.32$ 0.19$ 48.27$ 26.33$
Activities Activities Total
TABLE 4
OUTSTANDING DEBT AT YEAR-END
(IN MILLIONS)
For the years ended June 30, 2023 and 2022
Governmental Business-Type
15
The City was able to meet its current year debt obligations 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 $0.13 million from $0.19 million to $0.32 million. Debt in
the business-type activities is for amounts due back to the City for the financing of capital equipment. The
City’s golf course used a city-funded financing option as an alternative to purchasing golf carts and
maintenance equipment from cash flows derived through day-to-day operations. 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 through Note 10 to the financial
statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for fiscal year 2024, management and the City Council considered many ongoing
economic impacts such as inflation, supply chain constraints, and labor issues associated with contracts.
Keeping the well-being and safety of residents, visitors, and businesses as the highest priority, the
City Council has maintained funding to sustain current service levels and supported efforts to ensure that
much of the deferred maintenance owing to the pandemic is now being addressed. In addition, the
City Council established strategic goals and objectives before the creation of the annual budget, which
were given the highest priority during the budget development process. The City Council’s strategic goals
and objectives include both capital and monetary investments to support the City’s economic stability.
Most notably, the fiscal year 2024 budget includes a robust Capital Improvement Plan, which will be
supported by a newly created Capital Projects department. Additionally, during fiscal year 2024, the City
expects to transition the local library from a county-run facility to a municipal library with support from a
new Library Services department. These considerations, among others, have been factored into the fiscal
year 2024 budget to date.
The City’s 2023-2024 Financial Plan can be found on 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 serves as a resource to demonstrate the stewardship
and accountability for the public monies it receives.
If you have questions about this report or need additional financial information, please contact the
Finance Department at (760) 346-0611 or info@cityofpalmdesert.org.
16
Statement of Net Position
Component
Unit
Governmental Business-Type
Activities Activities Total
Assets:
Current assets:
Cash and investments 295,587,088$ 14,100,518$ 309,687,606$ 1,216,690$
Receivables:
Accounts 4,839,487 241,436 5,080,923 33,236
Notes 1,032,000 - 1,032,000 -
Accrued interest 917,006 - 917,006 -
Loans 12,415,466 - 12,415,466 -
Leases 177,671 799,886 977,557 -
Internal balances 4,179,888 (4,179,888) --
Prepaid costs 535,478 25,479 560,957 10,937
Deposits 20,000 -20,000 -
Due from other governments 9,556,392 - 9,556,392 -
Inventories 17,570 313,932 331,502 75,170
Property held for resale 61,516 -61,516 -
Restricted assets:
Cash with fiscal agent 68,373,658 - 68,373,658 -
Noncurrent assets:
Leases receivable 3,018,822 4,312,103 7,330,925 -
Due from component unit 420,000 1,578,564 1,998,564 -
Capital assets, not being depreciated/amortized 213,726,834 53,304,965 267,031,799 -
Capital assets, net of depreciation/amortization 208,530,757 16,253,767 224,784,524 2,494,164
Total Assets 823,409,633 86,750,762 910,160,395 3,830,197
Deferred Outflows of Resources:
Deferred outflows from pensions 13,243,801 - 13,243,801 -
Deferred outflows from OPEB 4,860,869 - 4,860,869 -
Total Deferred Outflows of Resources 18,104,670 - 18,104,670 -
Liabilities:
Current liabilities:
Accounts payable 24,202,824 1,006,261 25,209,085 37,113
Accrued liabilities 737,981 232,666 970,647 137,002
Accrued interest 56,038 -56,038 3,594
Unearned revenue 15,460,263 333,836 15,794,099 188,193
Deposits payable 3,949,536 26,590 3,976,126 -
Noncurrent liabilities:
Due within one year:
Compensated absences 500,000 - 500,000 -
Lease liability 218,453 - 218,453 53,295
SBITA liability 274,401 - 274,401 -
Long-term debt 74,000 86,217 160,217 -
Claims and judgements 224,361 - 224,361 -
Due in more than one year:
Due to primary government --- 1,998,564
Compensated absences 2,101,028 - 2,101,028 -
Lease liability 1,978,673 - 1,978,673 2,475,747
SBITA liability 125,182 - 125,182 -
Claims and judgements 455,520 - 455,520 -
Long-term debt 1,084,000 232,952 1,316,952 -
Net OPEB liability 855,839 - 855,839 -
Net pension liability 38,681,819 - 38,681,819 -
Total Liabilities 90,979,918 1,918,522 92,898,440 4,893,508
Deferred Inflows of Resources:
Deferred inflows from pensions 1,614,248 - 1,614,248 -
Deferred inflows from OPEB 433,542 - 433,542 -
Deferred inflows from leases 3,168,657 5,051,339 8,219,996 -
Total Deferred Inflows of Resources 5,216,447 5,051,339 10,267,786 -
Net Position:
Net investment in capital assets 416,680,537 69,239,563 485,920,100 -
Restricted for:
Special projects 93,279,580 - 93,279,580 -
Capital projects 79,251,472 - 79,251,472 -
Unrestricted (deficit)156,106,349 10,541,338 166,647,687 (1,063,311)
Total Net Position 745,317,938$ 79,780,901$ 825,098,839$ (1,063,311)$
June 30, 2023
Primary Government
Palm Desert
Recreational
Facilities
Corporation
CITY OF PALM DESERT
See Notes to Financial Statements.17
Statement of Activities
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Primary Government:
Governmental activities:
General government 26,185,065$ 2,678,135$ 781,822$ 1,711,324$
Housing and redevelopment 13,251,192 11,016,631 266,263 211,596
Public safety 40,753,734 18,831,126 2,393,227 346,836
Parks, recreation and culture 19,112,483 3,339,445 632,113 750,777
Public works 20,646,936 2,958,606 8,966,309 1,652,965
Interest on long-term debt 143,521 -- -
Total Governmental Activities 120,092,931 38,823,943 13,039,734 4,673,498
Business-type activities:
Desert Willow Golf Course 11,073,128 12,159,419 -99,154
Parkview Office Complex 1,409,321 1,473,376 --
Total Business-Type Activities 12,482,449 13,632,795 -99,154
Total Primary Government 132,575,380$ 52,456,738$ 13,039,734$ 4,772,652$
Component Unit:
Palm Desert Recreational Facilities Corp.4,958,674$ 4,875,792$ -$-$
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Other taxes
Investment earnings
Miscellaneous
Gain on sale of capital assets
Total general revenues
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
CITY OF PALM DESERT
Program Revenues
Functions/Programs
Year Ended June 30, 2023
See Notes to Financial Statements.
18
Net (Expenses) Revenues and Changes in Net Position
Primary Government
Component
Unit
Governmental Business-Type
Activities Activities Total
(21,013,784)$ -$(21,013,784)$ -$
(1,756,702) - (1,756,702) -
(19,182,545) - (19,182,545) -
(14,390,148) - (14,390,148) -
(7,069,056) - (7,069,056) -
(143,521) - (143,521) -
(63,555,756) - (63,555,756) -
- 1,185,445 1,185,445 -
- 64,055 64,055 -
- 1,249,500 1,249,500 -
(63,555,756) 1,249,500 (62,306,256) -
- - -(82,882)
13,887,103 - 13,887,103 -
23,959,975 - 23,959,975 -
26,373,509 - 26,373,509 -
3,574,273 - 3,574,273 -
14,330 -14,330 -
5,165,176 450,279 5,615,455 -
1,250,480 257,743 1,508,223 -
825,294 - 825,294 -
75,050,140 708,022 75,758,162 -
11,494,384 1,957,522 13,451,906 (82,882)
733,803,875 77,823,379 811,627,254 (960,750)
19,679 -19,679 (19,679)
733,823,554 77,823,379 811,646,933 (980,429)
745,317,938$ 79,780,901$ 825,098,839$ (1,063,311)$
Palm Desert
Recreational
Facilities
Corporation
See Notes to Financial Statements.
19
CITY OF PALM DESERT
Balance Sheet
Governmental Funds
General
Assets:
Pooled cash and investments 124,938,153$ 19,058,450$ 38,807,689$ 16,258,989$
Receivables:
Accounts 2,322,660 496,957 - 36,378
Assessments --- -
Notes 1,032,000 -- -
Interest 590,361 -19,553 -
Loans 14,978 -11,178,813 -
Leases Receivable 3,196,493 ---
Prepaid costs 498,844 -551 -
Deposits --- -
Due from other governments 6,287,055 1,787,917 - -
Due from other funds 1,136,962 -- -
Advances to other funds 1,956,000 -- -
Inventories --- -
Property held for resale --61,516 -
Due from component unit 420,000 -- -
Restricted assets:
Cash and investments with fiscal agent --2 3,758,346
Total Assets 142,393,506$ 21,343,324$ 50,068,124$ 20,053,713$
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable 12,918,122$ 5,604,693$ 33,692$ 28,404$
Accrued liabilities 575,858 -- 147,603
Unearned revenues --- 27,002
Deposits payable 3,352,482 -- 593,274
Due to other funds --- -
Advances from other funds --- -
Total Liabilities 16,846,462 5,604,693 33,692 796,283
Deferred Inflows of Resources:
Unavailable revenue 1,461,875 - 19,551 -
Leases 3,168,657 - --
Total Deferred Inflows of Resources:4,630,532 -19,551 -
Fund Balances:
Nonspendable 3,501,822 -551 -
Restricted -15,738,631 50,014,330 7,381,942
Committed 83,424,843 -- 11,875,488
Assigned 19,282,496 - - -
Unassigned 14,707,351 - - -
Total Fund Balances 120,916,512 15,738,631 50,014,881 19,257,430
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 142,393,506$ 21,343,324$ 50,068,124$ 20,053,713$
June 30, 2023
Housing Asset
Fund
Housing
Authority
Prop A Fire
Tax
Special Revenue Funds
See Notes to Financial Statements.
20
CITY OF PALM DESERT
Balance Sheet
Governmental Funds
Assets:
Pooled cash and investments
Receivables:
Accounts
Assessments
Notes
Interest
Loans
Leases Receivable
Prepaid costs
Deposits
Due from other governments
Due from other funds
Advances to other funds
Inventories
Property held for resale
Due from component unit
Restricted assets:
Cash and investments with fiscal agent
Total Assets
Liabilities, Deferred Inflows of Resources and
Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenue
Leases
Total Deferred Inflows of Resources:
Fund Balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
June 30, 2023
Capital
Projects Funds
1,633,533$ 85,737,530$ 286,434,344$
-902,488 3,758,483
-1,081,004 1,081,004
--1,032,000
257,841 49,251 917,006
-1,221,675 12,415,466
--3,196,493
-34,087 533,482
-20,000 20,000
-1,481,420 9,556,392
--1,136,962
-3,179,888 5,135,888
-17,570 17,570
--61,516
--420,000
64,615,310 - 68,373,658
66,506,684$ 93,724,913$ 394,090,264$
394,640$ 5,223,273$ 24,202,824$
-14,520 737,981
14,901,154 532,107 15,460,263
-3,780 3,949,536
-1,136,962 1,136,962
-956,000 956,000
15,295,794 7,866,642 46,443,566
- 1,405,998 2,887,424
- -3,168,657
-1,405,998 6,056,081
-51,657 3,554,030
51,210,890 48,185,259 172,531,052
-3,692,757 98,993,088
- 32,522,600 51,805,096
- -14,707,351
51,210,890 84,452,273 341,590,617
66,506,684$ 93,724,913$ 394,090,264$
Other
Governmental
Funds
Total
Governmental
Funds
Capital
Properties
See Notes to Financial Statements.
21
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
22
CITY OF PALM DESERT
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
Total fund balance for governmental funds 341,590,617$
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets net of depreciation/amortization have not been included as financial resources
in the governmental fund activity.419,648,133
Differences between expected and actual experiences, assumption changes and net differences
between projected and actual earnings, and contributions subsequent to the measurement date
for the postretirement benefits (pension and OPEB) are recognized as deferred outflows and deferred
inflows of resources on the Statement of Net Position
Deferred outflows-pension related 13,243,801
Deferred outflows-OPEB related 4,860,869
Deferred inflows-pension related (1,614,248)
Deferred inflows-OPEB related (433,542) 16,056,880
Long-term debt, claims and judgements and net pension liability are not
in the governmental fund activity:
Bonds (1,158,000)
Claims and judgments (679,881)
Lease liability (2,197,126)
SBITA Liability (399,583)
Net OPEB liability (855,839)
Net pension liability (38,681,819) (43,972,248)
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due.(56,038)
Unavailable revenues are not reported as revenues in governmental funds and thus
have 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. 2,887,424
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.9,163,170
Net Position of Governmental Activities 745,317,938$
June 30, 2023
See Notes to Financial Statements.
23
CITY OF PALM DESERT
Statement of Revenues
Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2023
General
Revenues:
Taxes 70,722,443$ 9,169,242$ -$ -$
Special assessments collected - 2,138,587 - -
Licenses and permits 2,539,460 - - -
Intergovernmental revenues 1,615,519 1,457,526 - -
Rental income 138,649 - - 8,737,330
Charges for services 1,918,866 3,100,323 - -
Investment earnings 5,025,534 222,043 1,554,962 685,559
Fines and forfeitures 119,702 - - -
Miscellaneous 568,556 - 38,780 -
Total Revenues 82,648,729 16,087,721 1,593,742 9,422,889
Expenditures:
Current:
General government 22,880,727 - - -
Public safety 23,304,557 16,970,960 - -
Parks, recreation and culture 5,561,999 - - -
Public works 6,879,202 -- -
Housing --419,870 8,874,525
Capital outlay 685,071 660,442 56,074 -
Debt service:
Principal retirement 129,574 -- -
Interest and fiscal charges 4,498 -- -
Total Expenditures 59,445,628 17,631,402 475,944 8,874,525
Excess of Revenues Over (Under) Expenditures 23,203,101 (1,543,681) 1,117,798 548,364
Other Financing Sources (Uses):
Transfers in 2,478,731 4,600,000 - -
Transfers out (24,813,041) - - (415,990)
Proceeds from sale of capital asset 452,687 - 293,804 -
Contribution to other government (834,654) - --
Proceeds from subscriptions 529,156 - --
Total Other Financing Sources (Uses)(22,187,121) 4,600,000 293,804 (415,990)
Net Change in Fund Balances 1,015,980 3,056,319 1,411,602 132,374
Fund Balances, Beginning of Year 119,880,853 12,682,312 48,603,279 19,125,056
Restatements 19,679 -- -
Fund Balances, Beginning of Year, as restated 119,900,532 12,682,312 48,603,279 19,125,056
Fund Balances, End of Year 120,916,512$ 15,738,631$ 50,014,881$ 19,257,430$
Housing Asset
Fund
Housing
Authority
Prop A Fire
Tax
Special Revenue Funds
See Notes to Financial Statements.
24
CITY OF PALM DESERT
Statement of Revenues
Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2023
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
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
Proceeds from sale of capital asset
Contribution to other government
Proceeds from subscriptions
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year
Restatements
Fund Balances, Beginning of Year, as restated
Fund Balances, End of Year
Capital
Projects Funds
-$ 6,796,234$ 86,687,919$
- 1,480,385 3,618,972
- 571,716 3,111,176
- 3,638,318 6,711,363
- 82,981 8,958,960
- 3,724,605 8,743,794
2,203,742 2,437,890 12,129,730
- 7,385 127,087
- 244,817 852,153
2,203,742 18,984,331 130,941,154
1,540 2,014,679 24,896,946
- 384,731 40,660,248
- 12,146,635 17,708,634
824,708 7,583,978 15,287,888
-1,016,156 10,310,551
158,993 6,275,182 7,835,762
-136,000 265,574
-129,640 134,138
985,241 29,687,001 117,099,741
1,218,501 (10,702,670) 13,841,413
1,800,000 17,867,742 26,746,473
- (2,478,731)(27,707,762)
- -746,491
- -(834,654)
- -529,156
1,800,000 15,389,011 (520,296)
3,018,501 4,686,341 13,321,117
48,192,389 79,765,932 328,249,821
-- 19,679
48,192,389 79,765,932 328,269,500
51,210,890$ 84,452,273$ 341,590,617$
Capital
Properties
Other
Governmental
Funds
Total
Governmental
Funds
See Notes to Financial Statements.
25
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
26
CITY OF PALM DESERT
Reconciliation of the Revenues, Expenditures
and Changes in the Fund Balances of Governmental Funds
to the Statement of Activities
Year Ended June 30, 2023
Net change in fund balances - total governmental funds 13,321,117$
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/amortization expense.
Capital outlay 13,151,163$
Loss on disposal and transfer of capital assets (3,572,869)
Depreciation and amortization (11,460,183) (1,881,889)
Bond and other debt proceeds provides current financial resources to governmental funds,
but issuing debt increases long-term liabilities in the statement of net position. Repayment
of debt principal is an expenditure in the governmental funds, but the repayment reduces
long-term liabilities in the statement of net position.
Bond principal payments 77,000
Subscriptions issued (529,156)
Subscription and lease payments 398,389 (53,767)
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 (9,383)
Net change in claims and judgments for the current period (115,408) (124,791)
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 208,654
OPEB expense 735,400 944,054
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.(465,423)
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.(244,917)
Change in Net Position of Governmental Activities 11,494,384$
See Notes to Financial Statements.
27
CITY OF PALM DESERT
Statement of Net Position
Proprietary Funds
Assets:
Current Assets:
Cash and investments 8,242,310$ 5,858,208 $ 14,100,518$ 9,152,744 $
Receivables:
Accounts 134,734 106,702 241,436 -
Lease 799,886 - 799,886 -
Prepaid costs - 25,479 25,479 1,996
Inventories - 313,932 313,932 -
Due from component unit - 1,578,564 1,578,564 -
Total Current Assets 9,176,930 7,882,885 17,059,815 9,154,740
Noncurrent Assets:
Lease receivable 4,312,103 - 4,312,103 -
Nondepreciable capital assets - 53,304,965 53,304,965 11,821
Depreciable capital assets, net 5,295,210 10,958,557 16,253,767 2,597,637
Total Noncurrent Assets 9,607,313 64,263,522 73,870,835 2,609,458
Total Assets 18,784,243 72,146,407 90,930,650 11,764,198
Liabilities:
Current Liabilities:
Accounts payable 355,421 650,840 1,006,261 -
Accrued liabilities - 232,666 232,666 -
Unearned revenues 29,314 304,522 333,836 -
Deposits payable 26,590 - 26,590 -
Financed purchases -86,217 86,217 -
Compensated absences - -- 500,000
Total Current Liabilities 411,325 1,274,245 1,685,570 500,000
Noncurrent Liabilities:
Financed purchases - 232,952 232,952 -
Advances from other funds - 4,179,888 4,179,888 -
Compensated absences - -- 2,101,028
Total Noncurrent Liabilities -4,412,840 4,412,840 2,101,028
Total Liabilities 411,325 5,687,085 6,098,410 2,601,028
Deferred Inflows of Resources:
Leases 5,051,339 - 5,051,339 -
Total Deferred Inflows of Resources 5,051,339 -5,051,339 -
Net Position:
Net investment in capital assets 5,295,210 63,944,353 69,239,563 2,609,458
Unrestricted 8,026,369 2,514,969 10,541,338 6,553,712
Total Net Position 13,321,579$ 66,459,322$ 79,780,901$ 9,163,170$
June 30, 2023
Business-Type Activities - Enterprise Funds
Major Funds
Total
Enterprise
Funds
Governmental
Activities -
Internal
Service Funds
Parkview
Office
Complex
Desert Willow
Golf Course
See Notes to Financial Statements.
28
CITY OF PALM DESERT
Statement of Revenues, Expenses
and Changes in Fund Net Position
Proprietary Funds
Operative Revenues:
Fees and rentals 1,473,376$ 10,480,418$ 11,953,794$ -$
Miscellaneous - 257,743 257,743 -
Merchandise sales - 1,679,001 1,679,001 -
Total Operating Revenues 1,473,376 12,417,162 13,890,538 -
Operating Expenses:
General and administrative 146,143 2,954,930 3,101,073 425,084
Cost of merchandise - 725,418 725,418 -
Maintenance and operations 948,002 6,050,549 6,998,551 394,955
Depreciation and amortization 315,176 1,224,975 1,540,151 751,260
Total Operating Expenses 1,409,321 10,955,872 12,365,193 1,571,299
Operating Income (Loss)64,055 1,461,290 1,525,345 (1,571,299)
Nonoperating Revenues (Expenses)
Interest revenue 331,447 118,832 450,279 286,290
Interest expense - (117,256) (117,256) -
Gain on disposal of capital assets - -- 78,803
Total Nonoperating Revenues (Expenses) 331,447 1,576 333,023 365,093
Income (Loss) Before Capital Contributions &
Transfers 395,502 1,462,866 1,858,368 (1,206,206)
Capital Contributions - 99,154 99,154 -
Transfers In - -- 961,289
Change in Net Position 395,502 1,562,020 1,957,522 (244,917)
Net Position, Beginning of Year 12,926,077 64,897,302 77,823,379 9,408,087
Net Position, End of Year 13,321,579$ 66,459,322$ 79,780,901$ 9,163,170$
Year Ended June 30, 2023
Business-Type Activities - Enterprise Funds
Major Funds
Total
Enterprise
Funds
Governmental
Activities -
Internal
Service Funds
Parkview
Office
Complex
Desert Willow
Golf Course
See Notes to Financial Statements.
29
CITY OF PALM DESERT
Statement of Cash Flows
Proprietary Funds
Cash Flows from Operating Activities:
Receipts from customers 1,364,506$ 12,067,646$ 13,432,152$ -$
Payments to suppliers (784,472) (9,603,099) (10,387,571) (401,470)
Cash paid to employees for services - - - (113,394)
Net Cash Provided (Used) by
Operating Activities 580,034 2,464,547 3,044,581 (514,864)
Cash Flows from Noncapital and
Related Financing Activities:
Cash received from other funds - - 961,289
Repayment of advances from other funds - (500,000)(500,000) -
Advance received from other funds 3,179,888 3,179,888 -
Net Cash Provided by (Used) Noncapital and
Related Financing Activities -2,679,888 2,679,888 961,289
Cash Flows from Capital and :
Related Financing Activities
Purchases of capital assets - (3,583,646)(3,583,646) (90,621)
Principal paid financed purchases - (222,721)(222,721) -
Interest paid on financed purchases (117,256)(117,256) -
Proceeds from sale of capital assets - 453,616 453,616 86,265
Net Cash Used by Capital and
Related Financing Activities -(3,470,007)(3,470,007) (4,356)
Cash Flows from Investing Activities:
Interest and dividends 331,447 118,832 450,279 286,290
Net Cash Provide by (Used)
Investing Activities 331,447 118,832 450,279 286,290
Net Increase (Decrease) in
Cash and Cash Equivalents 911,481 1,793,260 2,704,741 728,359
Cash and Cash Equivalents, Beginning of Year 7,330,829 4,064,948 11,395,777 8,424,385
Cash and Cash Equivalents, End of Year 8,242,310$ 5,858,208$ 14,100,518$ 9,152,744$
Year Ended June 30, 2023
Governmental
Activities -
Internal
Service Funds
Total
Enterprise
Funds
Business-Type Activities - Enterprise Funds
Major Funds
Parkview
Office
Complex
Desert Willow
Golf Course
See Notes to Financial Statements.
30
CITY OF PALM DESERT
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Governmental
Activities -
Internal
Service Funds
Total
Enterprise
Funds
Business-Type Activities - Enterprise Funds
Major Funds
Parkview
Office
Complex
Desert Willow
Golf Course
Reconciliation of Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:
Operating income (loss)64,055$ 1,461,290$ 1,525,345$ (1,571,299)$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Depreciation and amortization 315,176 1,224,975 1,540,151 751,260
Changes in assets and liabilities:
(Increase) decrease in receivables, net (31,074) 15,234 (15,840) -
(Increase) decrease in lease receivable, net (33,358) - (33,358)-
(Increase) decrease in prepaid costs - 28,963 28,963 4,150
(Increase) decrease in due from other governments - -- -
(Increase) decrease in inventories - (45,672)(45,672) -
(Increase) decrease in due from component unit - (383,040)(383,040) -
Increase (decrease) in accounts payable
and accrued liabilities 309,673 144,507 454,180 (10,665)
Increase (decrease) in deposits payable - - - -
Increase (decrease) in unearned revenue (44,438) 18,290 (26,148) -
Increase (decrease) in compensated absences - - - 311,690
Total Adjustments 515,979 1,003,257 1,519,236 1,056,435
Net Cash Provided (Used)
by Operating Activities 580,034$ 2,464,547$ 3,044,581$ (514,864)$
Noncash Items:
Capital Contributions -$ 99,154$ 99,154$ -$
See Notes to Financial Statements.
31
CITY OF PALM DESERT
Statement of Fiduciary Position
Fiduciary Funds
Private-
Purpose Trust
Custodial
Funds
Assets:
Pooled cash and investments 7,620,166$ 29,574,317$
Receivables:
Assessments 35,481,134 -
Accrued interest 699 164
Prepaid costs - 1,223,948
Due from other governments 24,995 -
Restricted assets:
Cash and investments with fiscal agents 2,948,748 12,493,814
Capital assets:
Capital assets, not being depreciated - 17,226,397
Total Assets 46,075,742 60,518,640
Liabilities:
Accounts payable - 704,122
Accrued interest - 1,750,413
Deposits payable 35,481,134 20,000
Due to external parties/other agencies 7,638,549 -
Long-term liabilities:
Long-term debt due in one year - 19,915,000
Long-term debt due in more than one year - 142,971,365
Total Liabilities 43,119,683 169,868,487
Deferred Inflows of Resources:
Deferred charge on refunding - 273,476
Total Deferred Inflows or Resources - 273,476
Net Position:
Restricted for dissolution of former RDA - (109,623,323)
Restricted for other purposes 2,956,059 -
Total Net Position 2,956,059$ (109,623,323)$
Successor
Agency to the
Palm Desert
Redevelopment
Agency
June 30, 2023
See Notes to Financial Statements.32
CITY OF PALM DESERT
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2023
Additions:
Taxes 3,054,242$ 23,501,644$
Investment income 201,683 261,102
Contributions from City 834,654 -
Other - -
Gain sale of capital assets - 5,485,088
Total Additions 4,090,579 29,247,834
Deductions:
Housing and development - 945,727
Administrative expenses 50,179 -
Contractual services 1,216,447 -
Interest expense 1,446,244 6,287,959
Payments to bondholders 1,305,000 -
Contributions to other governments - 12,167,792
Total Deductions 4,017,870 19,401,478
Changes in Net Position 72,709 9,846,356
Net Position, Beginning of Year 10,674,106 (119,469,679)
Restatement (Note 15) (7,790,756) -
Net Position, Beginning of Year, as restated 2,883,350 (119,469,679)
Net Position, End of Year 2,956,059$ (109,623,323)$
Private-
Purpose Trust
Successor
Agency to the
Palm Desert
Redevelopment
Agency
Custodial
Funds
See Notes to Financial Statements.33
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34
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
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.
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.
35
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Presentation
Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net 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. Interfund services provided and used
are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally
separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not properly included among program revenues are reported instead as general
revenues. Expenses reported for functional activities include allocated indirect expenses.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even
though the latter are excluded from the government-wide financial statements. Major individual governmental funds
and major individual enterprise funds are reported as separate columns in the fund financial statements.
Fund Financial Statements
The accounting system of the City is organized and operated on the basis of separate funds, each of which is
considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of
self-balancing accounts that constitute its assets, liabilities, 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; and;
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.
36
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
Custodial Funds
The Custodial, 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. These assets include deposits placed with the City by individuals, as
well as deposits from assessment district’s property owners. These deposits are reduced by payments to
individuals.
The City’s Retiree Service Stipend Fund is used to account for assets held to pay for the retiree service stipend.
The Treasures 1991 Bond Act Fund is used to account for assets held for the Bond Act.
The major funds are as follows:
Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all financial resources except
those required to be accounted for in another fund.
The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax collected within
the City for upgrading fire protection and prevention. Its use is restricted to obtaining, furnishing, operating and
maintaining fire protection and prevention services (currently under contract with Riverside County Fire Department)
equipment or apparatus. This fund is reported as a major fund because the tax collected is a voter approved
measure.
37
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Housing Asset Special Revenue 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. This fund is determined to be important to the
users of the financial statements and determined to be a major fund.
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 Parkview Office Complex Fund is used to account for rent received from the City owned office complex.
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:
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 and custodial funds utilize an “economic resources”
measurement focus. Proprietary fund and private purpose trust fund equity and custodial funds are classified
as net position.
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.
38
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting.
Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.”
Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within
the current period or soon enough thereafter to pay current liabilities.
Revenues that are susceptible to accrual include property taxes and special assessments that are levied for and
due for the fiscal year and collected within 60 days after year-end. Licenses, permits, fines, forfeits, charges for
services and miscellaneous revenues are recorded as governmental fund type revenues when received in cash
because they are not generally measurable until actually received. Revenue from taxpayer assessed taxes, such
as sales taxes, are recognized in the accounting period in which they became both measurable and available to
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.
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.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, 2023,
proceeds of taxes did not exceed appropriations.
E.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.
F.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.
39
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. 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, 2023, the cost of the property held for resale for various housing properties in Palm Desert
totaled $61,516.
H. 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
above the amounts described in the table below 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.
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:
I. Inventories, Prepaid Costs and Deposits
Inventory in the amount of $313,932 and $75,170, 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. These inventories are held for resale.
Inventory in the amount of $17,570 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.
Deposit of $20,000 in other governmental funds represents security deposit on rental of commercial space.
40
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. 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.
K. Leases
Lessee
The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible
right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease
liabilities with an initial, individual value of $10,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments
expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of
lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for
lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently,
the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to
leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to
present value, (2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by
the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate
for leases.
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement
of the lease liability are composed of fixed payments and purchase option price that the City is reasonably
certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure
the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease
liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the
statement of net position.
Lessor
The City is a lessor for a noncancellable lease of a building. The City recognizes a lease receivable and a deferred
inflow of resources in the government-wide and governmental fund financial statements.
41
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments
expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal
portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of
the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected
lease receipts to present value, (2) lease term, and (3) lease receipts.
The City uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement
of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure
the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly
affect the amount of the lease receivable.
L. Subscription-Based Information Technology Arrangements
The City is a subscriber for a noncancellable subscription of information technology services. The City recognizes
a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide
financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more.
At the commencement of a subscription, the City initially measures the subscription liability at the present value of
payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by
the principal portion of subscription payments made. The subscription asset is initially measured as the
initial amount of the subscription liability, adjusted for subscription payments made at or before the
subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized
on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the
City determines (1) the discount rate it uses to discount the expected subscription payments to present value,
(2) lease term, and (3) subscription payments.
The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by
the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate
for subscriptions.
The subscription term includes the noncancellable period of the subscription. Subscription payments included
in the measurement of the subscription liability are composed of fixed payments that the City is reasonably
certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will
remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the
amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term
debt on the statement of net position.
42
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M.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 assets 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/(asset).
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 assets 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.
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.
Deferred inflows from lease related items for the amount of the lease receivable plus any lease payments
related to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the
commencement of the lease term.
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.
43
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 straight-line recognition
All other amounts Straight-line recognition over the expected average
remaining service lifetime (EARSL) of all members that
are provided with benefits, determined as of the
beginning of the Measurement Period. In determining
the EARSL, all active, retired and inactive (vested)
members are counted, with the latter two groups
having 0 remaining service years.
N. 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.
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.
GASB Statement No. 68 requires 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, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
P. Other Post-Employment 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, 2021
Measurement Date June 30, 2022
Measurement Period June 30, 2021 to June 30, 2022
44
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Q.Fund Balance
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.
R.Net Position
For government-wide reporting as well as in proprietary funds, the difference between assets and deferred outflows
of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of
three components: net investment in capital assets, restricted, and unrestricted.
Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and
reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition,
construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources
that are attributable to the acquisition, construction, or improvement of those assets or related debt are included
in this component of net position.
Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources
related to those assets. Assets are reported as restricted when constraints are placed on asset use either by
external parties or by law through constitutional provision or enabling legislation.
Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred
inflows of resources that does not meet the definition of the two preceding categories.
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 in the government-wide and proprietary fund financial statements, a flow assumption must
be made about the order in which the resources are considered to be applied. It is the City’s policy to consider
restricted net position to have been depleted before unrestricted net position is applied.
45
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
S.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.
T. Deficit Fund Equity
At June 30, 2023, the City reported deficit fund balances/net position in the following funds:
Primary Government
The deficit in the Compensation Benefits Fund will be eliminated in future years through contributions from other
funds.
Component Unit
The deficit in the Palm Desert Recreational Facilities Corporation will be eliminated with future revenues through
banquet and dining reservations.
Fiduciary Funds
The deficit in the Successor Agency to the Palm Desert Redevelopment Agency Private-Purpose Trust Fund will
be eliminated 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.
U.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 11), the amounts reported for the net pension liability, net OPEB liability/(asset) and related items
(Note 15), and claims payable (Note 9). Accordingly, actual results could differ from the estimates.
V.New GASB Pronouncements Effective During Fiscal Year
The following Government Accounting Standards Board (GASB) pronouncements were effective for and/or early
implemented for the fiscal year ended June 30, 2023:
Fund Name Fund Type Deficit
Compensation Benefits Internal Service Fund (272,399)$
Fund Name Fund Type Deficit
Palm Desert Recreational Facilities Corporation Component Unit (1,063,311)$
Fund Name Fund Type Deficit
Successor Agency to the Palm Desert
Redevelopment Agency Private-Purpose Trust Fund (109,623,323)$
46
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
GASB Statement No. 91, Conduit Debt Obligations
The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to
report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified
definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation.
Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to
recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt
obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure
requirements will provide financial statement users with better information regarding the commitments issuers
extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential
impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit
debt obligations.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangements
The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs
and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions.
That uniform guidance will provide more relevant and reliable information for financial statement users and create
greater consistency in practice. This Statement will enhance the decision usefulness of a government’s financial
statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose
important information about PPP transactions. The required disclosures will allow users to understand the scale
and important aspects of a government’s PPPs and evaluate a government’s future obligations and assets resulting
from PPPs.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements
The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and
providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That
definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria
for implementation costs also will reduce diversity and improve comparability in financial reporting by governments.
This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring
a government to report a subscription asset and subscription liability for a SBITA and to disclose essential
information about the arrangement. The disclosures will allow users to understand the scale and important aspects
of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs.
GASB Statement No. 100, Accounting Changes and Error Corrections
The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements
for accounting changes and error corrections, which will result in greater consistency in application in practice. In
turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial
statement users for making decisions or assessing accountability. In addition, the display and note disclosure
requirements will result in more consistent, decision useful, understandable, and comprehensive information for
users about accounting changes and error corrections.
47
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 2: CASH AND INVESTMENTS
As of June 30, 2023, cash and investments were reported in the accompanying financial statements as follows:
Cash and investments at June 30, 2023, consisted of the following:
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.
A. Deposits
At June 30, 2023, the carrying amount of the deposits was $59,044,877, and the bank balance was $59,647,216.
The $602,339 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 $250,000
by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an
authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for
deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in
San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for
all California public agency depositors.
Under Government Code Section 53655, the placement of securities by a bank or savings and loan association
with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental
agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the
name of, the local governmental agency.
Governmental activities 363,960,746$
Business-type activities 14,100,518
Component unit 1,216,690
Fiduciary funds 52,637,045
431,914,999$ Total cash and investments
Primary Government
Demand accounts 20,721,619$
Petty cash 22,550
Investments 357,317,095
Total cash and investments - Primary Government 378,061,264$
Component Unit
Demand accounts 1,216,690$
Fiduciary Funds
Demand accounts 37,106,568$
Pooled with primary government 32,906
Investments 15,497,571
Total cash and investments - Fiduciary Funds 52,637,045$
48
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
B. Investments
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government
Code and the City’s investment policy. The table also identifies certain provisions of the California Government
Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration
of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by
the provisions of debt agreements of the City, rather than the general provisions of the California Government Code
or the City’s investment policy.
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.
Authorized by Maximum Maximum
Investment Types Investment Maximum Percentage Investment
Authorized by State Law Policy Maturity * of Portfolio * in One Issuer *
United States Treasury Bills, Notes, Bonds Yes 5 years 100%none
United States Government-Sponsored Agency
Securities Yes 5 years 100%30%
California State and Local Agency Debt Yes 180 days 25%none
Commercial Paper Yes 270 days 25%10%
Negotiable Certificates of Deposit Yes 5 years 5%none
Time Certificates of Deposit Yes 5 years 5%none
Repurchase Agreements Yes 1 year 10%none
Medium-Term Corporate Notes Yes 5 years 25%10%
Money Market Mutual Funds Yes 5 years 20%none
Local Agency Investment Fund (LAIF)Yes N/A $75M/Acct none
Structured Notes (STRIPS)Yes 5 years 20%none
Local Government Investment Pools Yes N/A 75%none
* Based on state law requirements or City investment policy requirements, whichever is more restrictive.
49
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Primary Government
The ratings for the “Other” category above are as follows:
Fiduciary Funds
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, 2023, none of the City’s deposits or investments were exposed to custodial credit risk.
Concentration of Credit Risk
The City’s investment policy imposes restrictions on the percentage the City can invest in certain types of
investments, which the City is in compliance. As of June 30, 2023, 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.
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. The City has elected to use the segmented time distribution method of
disclosure for its interest rate risk.
Minimum Exempt or
Investment Type Total Legal Rating Aaa AAA Other Not Rated
California Local Agency Investment Fund 21,483,702$ N/A -$ -$ -$ 21,483,702$
California Asset Management Program 205,329,656 N/A - 205,329,656 - -
Riverside County Treasurer's Pooled Investment Fund 2,449,520 N/A 2,449,520 - - -
U.S. Government Sponsored Agency Securities 35,532,809 N/A 35,532,809 - - -
Medium-Term Corporate Notes 24,147,750 N/A - - 24,147,750 -
Held by Fiscal Agent:
Money Market Deposit Account 68,373,658 N/A - - - 68,373,658
Total 357,317,095$ 37,982,329$ 205,329,656$ 24,147,750$ 89,857,360$
Investment Type A1 A2 Total
Medium-Term Corporate Notes 16,305,700$ 7,842,050$ 24,147,750$
Minimum Exempt or
Investment Type Total Legal Rating Aaa AAA Not Rated
California Local Agency Investment Fund 762$ N/A -$ -$ 762$
California Asset Management Program 5,973 N/A - 5,973 -
Riverside County Treasurer's Pooled Investment Fund 341 N/A 341 - -
Investment in City Bonds 126,000 N/A - - 126,000
Held by Fiscal Agent:
Money Market Deposit Account 15,364,495 N/A - - 15,364,495
Total 15,497,571$ 341$ 5,973$ 15,491,257$
50
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
As of June 30, 2023, the City had the following investments and maturities:
Primary Government
Fiduciary Funds
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.
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 $1.00
per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers. Requests
Less Than 6 Months - 1 Year - Over
Investment Type Total 6 Months 1 Year 3 Years 3 Years
California Local Agency Investment Fund 21,483,702$ 21,483,702$ -$ -$ -$
California Asset Management Program 205,329,656 205,329,656 - - -
Riverside County Treasurer's Pooled Investment Fund 2,449,520 2,449,520 - - -
U.S. Government Sponsored Agency Securities 35,532,809 20,266,899 - 15,265,910 -
Medium-Term Corporate Notes 24,147,750 - 19,177,300 - 4,970,450
Held by Fiscal Agent:
Money Market Deposit Account 68,373,658 68,373,658 - - -
Total 357,317,095$ 317,903,435$ 19,177,300$ 15,265,910$ 4,970,450$
Less Than 6 Months - 1 Year - Over
Investment Type Total 6 Months 1 Year 3 Years 3 Years
California Local Agency Investment Fund 762$ 762$ -$ -$ -$
California Asset Management Program 5,973 5,973 - - -
Riverside County Treasurer's Pooled Investment Fund 341 341 - - -
Investment in City Bonds 126,000 67,000 - 59,000 -
Held by Fiscal Agent:
Money Market Deposit Account 15,364,495 15,364,495 - - -
Total 15,497,571$ 15,438,571$ -$ 59,000$ -$
51
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
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:
Quoted prices for similar assets in active markets;
Quoted prices for identical or similar assets in inactive markets;
Inputs other than quoted prices that are observable for the asset;
Inputs that are derived principally from or corroborated by observable market data by correlation or
other means.
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.
52
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
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.
Primary Government
Fiduciary Funds
NOTE 3: NOTES AND LOANS RECEIVABLE
A.Notes Receivable
On August 8, 2006, the City of Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the
Bonds were used to finance the construction of the utility undergrounding and pay the cost of issuance. The debt
Investment Type Total Level 1 Level 2 Level 3 Uncategorized
California Local Agency Investment Fund 21,483,702$ -$ -$ -$ 21,483,702$
California Asset Management Program 205,329,656 - - - 205,329,656
Riverside County Treasurer's Pooled Investment
Fund 2,449,520 - - - 2,449,520
U.S. Government Sponsored Agency Securities 35,532,809 - 35,532,809$ - -
Medium-Term Corporate Notes 24,147,750 - 24,147,750 - -
Held by Fiscal Agent:
Money Market Deposit Account 68,373,658 - - - 68,373,658
Total 357,317,095$ -$ 59,680,559$ -$ 297,636,536$
Input Category
Investment Type Total Level 1 Level 2 Level 3 Uncategorized
California Local Agency Investment Fund 762$ -$ -$ -$ 762$
California Asset Management Program 5,973 - - - 5,973
Riverside County Treasurer's Pooled Investment
Fund 341 - - - 341
Investment in City Bonds 126,000 - - 126,000 -
Held by Fiscal Agent:
Money Market Deposit Account 15,364,495 - - - 15,364,495
Total 15,497,571$ -$ -$ 126,000$ 15,371,571$
Input Category
53
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 3: NOTES AND LOANS RECEIVABLE (CONTINUED)
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, 2023, the receivable balance was $1,032,000.
B. Loans Receivable
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, 2023, 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 due from the PD Hovley Limited
Partnership. The loan is secured by a Deed of Trust and Regulatory Agreement with Options on the housing
development located in Palm Desert. On April 8, 2021 the Authority Board approved the re-syndication, refinancing
and rehabilitation of the affordable housing development. The existing 2001 loan was modified to extend its maturity
for fifty-five (55) years and provides for a suspension of principal payments for the estimated construction
period. The Authority Loan shall bear interest at the greater of the current applicable federal rate as of the date of
the Promissory Note or one percent (1%) simple interest per annum, and will be repaid from seventy-five percent
(75%) of the developments residual receipts remaining after payment of fees and expenses. As of June 30, 2023,
the total receivable from PD Hovley Limited Partnership was $5,148,813.
The Housing Asset Fund has a loan receivable for the construction of a multi-family affordable housing development
dated December 20, 2022, due from Palm Desert Pacific Associates, a California Limited Partnership. The Authority
Loan shall bear interest at three percent (3%) simple interest per annum, and repayment will commence as follows:
50% of Project Net Cash Flow, as defined in the Loan Agreement shall be paid to PDHA on an annual basis on
June 30th after the first anniversary of issuance of a final certificate of occupancy for the project and each annual
anniversary thereafter (with respect to the Project New Cash Flow for the preceding year ending on June 30th prior
to each such payment date) until the Note has been satisfied in full. As of June 30, 2023, the total receivable from
Palm Desert Pacific Associates was $6,030,000 and management has no reason to believe any allowance for
doubtful accounts should be established for the 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, 2023, 160 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, 2023, the outstanding loans receivable
through the EIP Program was $1,221,675.
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. An allowance for doubtful accounts 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.
54
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 3: NOTES AND LOANS RECEIVABLE (CONTINUED)
Detailed information for these loans is as follows:
NOTE 4: INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS
The composition of interfund balances as of June 30, 2023, was as follows:
A. Due To/From Other Funds
The amounts loaned from the General Fund to non-major governmental funds and capital properties were to cover
cash shortfall at year end as of June 30, 2023.
B. Advances To/From Other Funds
The General Fund advanced $956,000 to the Energy Independence Special Revenue Fund to payoff the bonds
used to fund energy efficiency, and loaned $1,000,000 to Desert Willow Golf Course to fund the daily operations,
including the daily operations of the restaurant. The advance to the Energy Independence Special Revenue Fund
is repaid as the Energy Independence Program (EIP) loans are repaid. See Note 3 for more information on these
loans.
The Capital Golf fund advanced $3,627,329 to the Desert Willow Golf Course for the purchases of golf carts totaling
$2,051,890 and golf course equipment totaling $1,575,439. The advance for the golf carts will be repaid over 48
months beginning January 1, 2023 and bears interest at a rate of 2.5%. The advance for the golf course equipment
will be repaid over 60 months beginning November 1, 2022 and bears interest at a rate of 2.5%.
Accrued Total
Principal Unpaid Outstanding
Balance Interest as of Interest Maturity
Project Name Outstanding Outstanding June 30, 2023 Rate Date Notes
Home Improvement Loans 324,466 - 324,466 N/A N/A (1),(2)
Portola Palms Mobile Home Park 94,930 2,848 97,778 3.00% 30 years (3)
Desert Rose 2,319,754 69,593 2,389,347 3.00% 30-45 years* (1),(3)
Falcon Crest 3,023,876 90,716 3,114,592 3.00% 30-45 years* (1),(2)
Acquisition, Rehabilitation, Resale 190,510 5,715 196,225 3.00% 30-45 years (2)
Habitat for Humanity 327,000 23,708 350,708 7.25% 30 years or 2024 (2)
6,280,536$ 192,580$ 6,473,116
Less: Allowance for Doubtful Accounts (6,473,116)
Balance at June 30, 2023 -$
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds 1,136,962$
Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds 956,000$
Desert Willow Golf Course 1,000,000
Other Governmental Funds Desert Willow Golf Course 3,179,888
5,135,888$
55
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 4: INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS (CONTINUED)
The future payment schedule for these advances are as follows:
C. Due To/From Component Unit
The Palm Desert Recreational Facilities Corporation (the Corporation) owes the General Fund $420,000 in
deferred unpaid rent for various years through FY 2020-2021 associated with the lease between the City and the
Corporation. The Corporation owes the Desert Willow Golf Course Fund $1,578,564 which represents subsidies for
operation, $1,195,524 of which relates to prior fiscal years and $383,040 which relates to the current year. There is
no payment schedule in place for the repayment of these amounts, therefore these transactions have been recorded
as long-term in the accompanying financial statements.
D. Interfund Transfers
The composition of interfund transfers as of June 30, 2023, was as follows:
Transfers are used to:
1. Transfer revenues to provide for capital projects.
2. Transfer revenues to provide for additional resources to pay for expenditures.
3. Transfer to cover future cost of assets.
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2024 780,687$ 70,592$ 851,279$
2025 800,428 50,849 851,277
2026 820,670 30,608 851,278
2027 633,196 10,937 644,133
2028 144,907 756 145,663
Total 3,179,888$ 163,742$ 3,343,630$
Advance to Other Governmental Fund
Receivable Fund Payable Fund Amount
General Fund Palm Desert Recreational Facilities Corporation 420,000$
Desert Willow Golf Course Palm Desert Recreational Facilities Corporation 1,578,564
1,998,564$
Transfers Out General Fund
Prop A Fire
Tax Special
Revenue Fund
Capital
Properties
Capital
Projects Fund
Other
Governmental
Funds
Internal
Service Fund Totals
General Fund -$ 4,600,000$ 1,800,000$ 17,451,752$ 961,289$ 24,813,041$
Housing Authority
Special Revenue Fund - - - 415,990 - 415,990
Other Governmental Funds 2,478,731 - - - - 2,478,731
Totals 2,478,731$ 4,600,000$ 1,800,000$ 17,867,742$ 961,289$ 27,707,762$
Transfers In
56
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 5: CAPITAL ASSETS
A summary of changes in capital assets at June 30, 2023, was as follows:
A. Primary Government – Governmental Activities
Depreciation/amortization expense was charged to functions/programs as follows:
Balance Balance
July 1, 2022 Transfers Additions Deletions June 30, 2023
Governmental activities:
Capital assets, not being depreciated/amortized
Land 82,066,168$ -$ 220,921$ -$ 82,287,089$
Right-of-way 121,210,045 - 50,000 - 121,260,045
Construction-in-progress 18,450,547 (6,087,441) 1,389,462 (3,572,868) 10,179,700
Total capital assets, not being depreciated/amortized 221,726,760 (6,087,441) 1,660,383 (3,572,868) 213,726,834
Capital assets, being depreciated/amortized
Buildings 144,293,925 - 6,846,930 - 151,140,855
Improvements other than buildings 60,724,608 158,113 2,779,842 - 63,662,563
Machinery, equipment, and vehicles 11,277,689 - 276,110 (107,074) 11,446,725
Infrastructure 247,521,105 5,844,499 1,044,052 - 254,409,656
Lease assets 2,603,284 - - - 2,603,284
Subscription assets - - 543,846 - 543,846
Equipment - Internal service fund 9,205,887 84,829 90,621 (500,987) 8,880,350
Total capital assets, being depreciated/amortized 475,626,498 6,087,441 11,581,401 (608,061) 492,687,279
Less accumulated depreciation/amortization
Buildings (78,047,903) - (3,573,698) - (81,621,601)
Improvements other than buildings (48,675,399) - (1,928,401) - (50,603,800)
Machinery and equipment (10,124,102) - (499,151) 107,073 (10,516,180)
Infrastructure (129,439,376) - (5,095,482) - (134,534,858)
Lease assets (233,919) - (234,737) - (468,656)
Subscription assets - - (128,714) - (128,714)
Equipment - Internal service fund (6,024,978) - (751,260) 493,525 (6,282,713)
Total accumulated depreciation/amortization (272,545,677) - (12,211,443) 600,598 (284,156,522)
Total capital assets, being depreciated/amortized, net 203,080,821 6,087,441 (630,042) (7,463) 208,530,757
Total Governmental Activities Capital Assets 424,807,581$ -$ 1,030,341$ (3,580,331)$ 422,257,591$
Governmental Activities:
General government 2,095,474$
Housing and redevelopment 1,600,448
Public safety 93,486
Public works 6,266,926
Parks, recreation and culture 1,403,849
Internal Service Funds 751,260
Total Depreciation/Amortization Expense - Governmental Activities 12,211,443$
57
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 5: CAPITAL ASSETS (CONTINUED)
B. Primary Government – Business-Type Activities
Depreciation/amortization expense was charged to functions/programs as follows:
C. Component Unit
Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Business-type activities:
Capital assets, not being depreciated/amortized
Land 53,304,965$ -$ -$ 53,304,965$
Total capital assets, not being depreciated/amortized 53,304,965 - - 53,304,965
Capital assets, being depreciated/amortized
Buildings and improvements 28,576,279 25,614 - 28,601,893
Machinery and equipment 6,968,012 3,558,032 (2,138,233) 8,387,811
Total capital assets, being depreciated/amortized 35,544,291 3,583,646 (2,138,233) 36,989,704
Less accumulated depreciation/amortization
Buildings and improvements (15,231,748) (855,268) - (16,087,016)
Machinery and equipment (6,102,271) (684,883) 2,138,233 (4,648,921)
Total accumulated depreciation/amortization (21,334,019) (1,540,151) 2,138,233 (20,735,937)
Total capital assets, being depreciated/amortized, net 14,210,272 2,043,495 - 16,253,767
Total business-type activities capital assets 67,515,237$ 2,043,495$ -$ 69,558,732$
Business-Type Activities:
Parkview Office Complex 315,176$
Desert Willow Golf Course 1,224,975
Total depreciation/amortization expense - business-type activit ies 1,540,151$
Balance Balance
July 1, 2022 Adjustments Additions Deletions June 30, 2023
Component Unit:
Capital assets, being amortized
Lease asset -$ 2,636,688$ -$ -$ 2,636,688$
Total capital assets, being amortized - 2,636,688 - - 2,636,688
Less accumulated amortization
Lease asset - (71,262) (71,262) - (142,524)
Total accumulated amortization - (71,262) (71,262) - (142,524)
Total capital assets, being amortized, net - 2,565,426 (71,262) - 2,494,164
Total component unit capital assets -$ 2,565,426$ (71,262)$ -$ 2,494,164$
58
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 6: LONG-TERM DEBT
The following is a summary of long-term liability transactions of the City for the year ended June 30, 2023.
A. Primary Government – Governmental Activities
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.
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.
The future debt service requirements on the Highlands Undergrounding Assessment District No. 04-01, Limited
Obligation Improvement Bonds, Series 2006 are as follows:
Limited Obligation Bonds
Limited Obligation Improvement Bonds Series 2009A (Taxable)
On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds Series 2009A (Taxable).
The proceeds of the Bonds were used to fund the City’s Energy Independence Program. Concurrent with the
issuance of the Bonds, the City entered into a bond purchase agreement with the Agency whereby the Agency
agreed to purchase the Bonds equal to par value. The bonds bear interest at 3% payable semiannually on
September 2 and March 2. Bond maturities commenced September 2, 2010, and continue annually through
September 2, 2029.
Balance
June 30, 2022 Additions Reductions Bond Calls
Balance
June 30, 2023
Due Within
One Year
Direct Borrowing:
Special assessment debt 1,082,000$ -$ (50,000)$ -$ 1,032,000$ 52,000$
with government commitment
Limited obligation improvement bonds 212,000 - (27,000) (59,000) 126,000 22,000
Total 1,294,000$ -$ (77,000)$ (59,000)$ 1,158,000$ 74,000$
Year Ending
June 30, Principal Interest Total
2024 52,000$ 51,709$ 103,709
2025 55,000 48,981 103,981
2026 58,000 46,099 104,099
2027 61,000 43,065 104,065
2028 64,000 39,861 103,861
2029-2033 371,000 145,256 516,256
2034-2038 371,000 39,423 410,423
Total 1,032,000$ 414,394$ 1,446,394$
59
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 6: LONG-TERM DEBT (CONTINUED)
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A (Taxable) are as
follows:
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 bonds bear 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:
B. Primary Government – Business-Type Activities
The City entered into a 48-month agreement for the purchase of golf cart fleet equipment with Club Car National on
June 12, 2018. Payments are $12,330 monthly commencing on February 1, 2019 and includes interest at 5.75%.
The amount was paid in full as of June 30, 2023.
Year Ending
June 30, Principal Interest Total
2024 12,000$ 1,950$ 13,950$
2025 11,000 1,605 12,605
2026 9,000 1,305 10,305
2027 9,000 1,035 10,035
2028 10,000 750 10,750
2029-2033 19,000 600 19,600
Total 70,000$ 7,245$ 77,245$
Year Ending
June 30, Principal Interest Total
2024 10,000$ 1,620$ 11,620$
2025 10,000 1,320 11,320
2026 7,000 1,065 8,065
2027 8,000 840 8,840
2028 8,000 600 8,600
2029-2033 13,000 480 13,480
Total 56,000$ 5,925$ 61,925$
Amount
Balance Balance Due Within
July 1, 2022 Additions Deletions June 30, 2023 One Year
Club Car National Account 75,743$ -$ 75,743$ -$ -$
GPSI Leasing, LLC 36,826 - 36,826 - -
PNC Equipment Finance LLC 74,859 - 74,859 - -
GPSI Leasing, LLC - 354,462 35,293 319,169 86,217
Totals 187,428$ 354,462$ 222,721$ 319,169$ 86,217$
60
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 6: LONG-TERM DEBT (CONTINUED)
The City entered into a 48-month agreement for the purchase of golf cart fleet equipment with GPSI Leasing, LLC.
The agreement was amended on December 27, 2018 to extend the payment terms an additional 48 months and
lower the payment to $5,792 beginning on November 1, 2018, including interest at 5.75%. The amount was paid
in full as of June 30, 2023.
The City entered into a 60-month agreement for the purchase of Toro golf course equipment with PNC Equipment
Finance, LLC. Payments are $25,078 monthly commencing on October 1, 2017 and includes interest at 2.95%.
The amount was paid in full as of June 30, 2023.
The City entered into a financed purchase agreement with GPSI Leasing, LLC for the purchase of golf carts. The
financed purchase bears interest at a rate of 5.75%. On December 20, 2022 the finance purchase agreement was
amended to extend additional the term for an 48 months resulting in a revised annual payment of $93,213 beginning
February 1, 2023.
The future debt service requirements on the financed purchases are as follows:
NOTE 7: COMPENSATED ABSENCES
The City's policy relating to compensated absences is described in Note 1 of the Notes to Financial Statements.
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. This liability will be paid in future years from future resources in the internal service fund. The
outstanding liability for compensated absences accrued was $2,601,028.
NOTE 8: LEASES
A. Leases Receivable and Deferred Inflows of Resources
Primary Government – Governmental Activities
On July 1, 2021, the City entered into a 262-month lease as lessor for the Crown Castle Cell Tower - Cook St @
Desert Willow. An initial lease receivable was recorded in the amount of $42,517. As of June 30, 2023, the value
of the lease receivable is $24,343. The lessee is required to make annual fixed payments of $19,243. The lease
has an interest rate of 1.5830%. The value of the deferred inflow of resources as of June 30, 2023 was $38,623,
and the City recognized lease revenue of $1,947 during the fiscal year. The lessee has 2 extension options, each
for 120 months.
Year Ending
June 30, Principal Interest Total
2024 86,217$ 6,996$ 93,213$
2025 88,397 4,816 93,213
2026 90,632 2,580 93,212
2027 53,923 450 54,373
Total 319,169$ 14,842$ 334,011$
Balance Balance Due Within
June 30, 2022 Additions Deletions June 30, 2023 One Year
2,289,338$ 425,084$ 113,394$ 2,601,028$ 500,000$
61
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 8: LEASES (CONTINUED)
On July 1, 2021, the City entered into a 60-month lease as lessor for the use of Soccer Park. An initial lease
receivable was recorded in the amount of $135,241. As of June 30, 2023, the value of the lease receivable is
$81,189. The lessee is required to make annual fixed payments of $27,376. The lease has an interest rate of
0.5770%. The value of the deferred inflow of resources as of June 30, 2023 was $81,680, and the City recognized
lease revenue of $26,780 during the fiscal year.
On July 1, 2021, the City entered into a 136-month lease as lessor for the use of Civic Center Cell Tower. An initial
lease receivable was recorded in the amount of $415,792. As of June 30, 2023, the value of the lease receivable
is $356,282. The lessee is required to make monthly fixed payments of $2,838. The lease has an interest rate of
1.2540%. The value of the deferred inflow of resources as of June 30, 2023 was $342,417, and the City recognized
lease revenue of $36,688 during the fiscal year. The lessee has 2 extension options, each for 60 months.
On July 1, 2021, the City entered into a 66-month lease as lessor for the use of the Vineyards Commercial Center.
An initial lease receivable was recorded in the amount of $332,785.96. As of June 30, 2023, the value of the lease
receivable is $205,636. The lessee is required to make annual fixed payments of $64,542. The lease has an interest
rate of 0.7030%. The value of the deferred inflow of resources as of June 30, 2023 was $211,773, and the City
recognized lease revenue of $60,507 during the fiscal year.
On July 1, 2021, the City entered into a 444-month lease as lessor for the use of the restaurant at the Desert Willow
Golf Course Clubhouse from the Corporation. An initial lease receivable was recorded in the amount of $2,636,688.
As of June 30, 2023, the value of the lease receivable is $2,529,043. The Corporation is required to make monthly
fixed payments of $8,000. The lease has an interest rate of 1.7050%. The value of the deferred inflow of resources
as of June 30, 2023 was $2,494,164, and the City recognized lease revenue of $71,262 during the fiscal year.
The principal and interest payments that are expected to maturity are as follows:
Primary Government – Business-Type Activities
On January 3, 2023, the City entered into a 24-month lease as lessor for the use of Parkview Office Complex, Ste
129.An initial lease receivable was recorded in the amount of $40,498. As of June 30, 2023, the value of the lease
receivable is $30,661. The lessee is required to make monthly fixed payments of $1,706. The lease has an interest
rate of 2.707%. The value of the deferred inflow of resources as of June 30, 2023 was $30,486, and the City
recognized lease revenue of $10,012 during the fiscal year. The lessee has 5 extension options, each for 12 months.
Fiscal Year Principal Payments Interest Payments Total Payments
2024 177,671$ 49,293$ 130,964$
2025 182,375 47,358 133,733
2026 187,203 45,373 133,733
2027 91,761 43,336 133,733
2028 94,353 41,916 133,733
2029 - 2033 510,196 7,387 133,733
2034 - 2038 327,022 152,979 133,733
2039 - 2043 356,101 123,899 133,733
2044 - 2048 387,767 92,233 133,733
2049 - 2053 422,249 57,751 133,733
2054 - 2058 459,795 20,203 133,733
Total 3,196,493$ 681,728$ 1,468,294$
Governmental Activities
62
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 8: LEASES (CONTINUED)
On May 1, 2023, the City entered into a 60-month lease as lessor for the use of Parkview Office Complex, Ste 126.
An initial lease receivable was recorded in the amount of $103,212. As of June 30, 2023, the value of the lease
receivable is $99,976. The lessee is required to make monthly fixed payments of $1,716. The lease has an interest
rate of 2.31%. The value of the deferred inflow of resources as of June 30, 2023 was $99,772, and the City
recognized lease revenue of $3,440 during the fiscal year. The lessee has 5 extension options, each for 12 months.
On December 1, 2022, the City entered into a 60-month lease as lessor for the use of Parkview Office Complex,
Ste 120. An initial lease receivable was recorded in the amount of $143,073. As of June 30, 2023, the value of the
lease receivable is $128,250. The lessee is required to make monthly fixed payments of $2,438. The lease has
an interest rate of 3.305%. The value of the deferred inflow of resources as of June 30, 2023 was $126,381, and
the City recognized lease revenue of $16,692 during the fiscal year. The lessee has 5 extension options, each for
12 months.
On December 1, 2022, the City entered into a 24-month lease as lessor for the use of Parkview Office
Complex, Suites 108, 100, 116, and 220. An initial lease receivable was recorded in the amount of $172,400. As
of June 30, 2023, the value of the lease receivable is $123,684. The lessee is required to make monthly fixed
payments of $7,298. The lease has an interest rate of 3.207%. The value of the deferred inflow of resources as of
June 30, 2023 was $122,117, and the City recognized lease revenue of $50,283 during the fiscal year. The lessee
has 1 extension options, for 12 months.
On December 1, 2022, the City entered into a 24-month lease as lessor for the use of Parkview Office Complex Ste
103. An initial lease receivable was recorded in the amount of $24,118. As of June 30, 2023, the value of the lease
receivable is $18,137. The lessee is required to make monthly fixed payments of $903. The lease has an interest
rate of 3.2070%. The value of the deferred inflow of resources as of June 30, 2023 was $17,083, and the City
recognized lease revenue of $7,034 during the fiscal year. The lessee has 2 extension options, each for 12 months.
On July 1, 2021, the City entered into a 48-month lease as lessor for the use of 73-720 Fred Waring Dr. An initial
lease receivable was recorded in the amount of $400,629. As of June 30, 2023, the value of the lease receivable
is $213,504. The lessee is required to make monthly fixed payments of $8,139. The lease has an interest rate of
0.5770%. The value of the deferred inflow of resources as of June 30, 2023 was $200,315, and the City recognized
lease revenue of $100,157 during the fiscal year.
On July 1, 2021, the City entered into a 132-month lease as lessor for the use of Parkview Suite 112. An initial
lease receivable was recorded in the amount of $223,707. As of June 30, 2023, the value of the lease receivable
is $192,177. The lessee is required to make monthly fixed payments of $1,823. The lease has an interest rate of
2.927%. The value of the deferred inflow of resources as of June 30, 2023 was $183,033, and the City recognized
lease revenue of $20,337 during the fiscal year.
On July 1, 2021, the City entered into a 84-month lease as lessor for the use of Parkview Office Ste 104. An initial
lease receivable was recorded in the amount of $261,206. As of June 30, 2023, the value of the lease receivable
is $187,993. The lessee is required to make monthly fixed payments of $3,200. The lease has an interest rate of
0.8330%. The value of the deferred inflow of resources as of June 30, 2023 was $186,576, and the City recognized
lease revenue of $37,315 during the fiscal year. The lessee has 1 extension options, each for 60 months.
On July 1, 2021, the City entered into a 63-month lease as lessor for the use of Parkview Ste 102. An initial lease
receivable was recorded in the amount of $131,906. As of June 30, 2023, the value of the lease receivable is
$82,087. The lessee is required to make monthly fixed payments of $2,125. The lease has an interest rate of
0.5770%. The value of the deferred inflow of resources as of June 30, 2023 was $81,656, and the City recognized
lease revenue of $25,125 during the fiscal year. The lessee has 3 extension options, each for 12 months.
On January 1, 2022, the City entered into a 120-month lease as lessor for the use of Civic Center Sheriff Substation.
An initial lease receivable was recorded in the amount of $4,710,493. As of June 30, 2023, the value of the lease
63
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 8: LEASES (CONTINUED)
receivable is $4,035,520. The lessee is required to make monthly fixed payments of $41,645. The lease has
an interest rate of 1.2050%. The value of the deferred inflow of resources as of June 30, 2023 was $4,003,920,
and the City recognized lease revenue of $471,049 during the fiscal year. The lessee has 1 extension option for
60 months.
The principal and interest payments that are expected to maturity are as follows:
B. Leases Payable and Lease Assets
Primary Government – Governmental Activities
On July 1, 2021, the City entered into a 51-month lease as lessee for the use of Xerox Financial Services. An initial
lease liability was recorded in the amount of $125,262. As of June 30, 2023, the value of the lease liability is $70,926.
The City is required to make monthly fixed payments of $2,646. The lease has an interest rate of 0.6320%. The
value of the lease asset as of June 30, 2023 of $125,262 with accumulated amortization of $58,947 is included with
equipment on the lease class activities table found below.
On July 1, 2021, the City entered into a 145-month lease as lessee for the use of 37023 Cook Street. An initial lease
liability was recorded in the amount of $2,468,060. As of June 30, 2023, the value of the lease liability is $2,119,331.
The City is required to make monthly fixed payments of $16,621. The lease has an interest rate of 1.2540%. The
value of the lease asset as of June 30, 2023 of $2,468,060 with accumulated amortization of $406,544 is included
with buildings on the lease class activities table found below. The City has one extension options for 84 months.
On November 29, 2021, the City entered into a 60-month lease as lessee for the use of Xerox Financial Services.
An initial lease liability was recorded in the amount of $9,962. As of June 30, 2023, the value of the lease liability is
$6,869. The City is required to make monthly fixed payments of $178. The lease has an interest rate of 2.1840%.
The value of the lease asset as of June 30, 2023 of $9,962 with accumulated amortization of $3,165 is included
with equipment on the lease class activities table found below.
The principal and interest payments that are expected to maturity are as follows:
Fiscal Year Principal Payments Interest Payments Total Payments
2024 799,886$ 64,001$ 863,887$
2025 749,755 52,327 802,082
2026 596,544 43,590 640,134
2027 588,292 35,471 623,763
2028 567,858 27,424 595,282
2029 - 2033 1,809,654 43,241 1,852,895
Total 5,111,989$ 266,054$ 5,378,043$
Business-Type Activities
Fiscal Year Principal Payments Interest Payments Total Payments
2024 218,453$ 26,008$ 244,461$
2025 227,383 23,394 250,777
2026 212,749 20,718 233,467
2027 207,088 18,104 225,192
2028 208,982 15,498 224,480
2029 - 2033 1,085,116 37,283 1,122,399
2034 - 2038 37,355 59 37,414
Total 2,197,126$ 141,064$ 2,338,190$
Governmental Activities
64
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 8: LEASES (CONTINUED)
Lease assets by class activity at June 30, 2023 are as follows:
Component Unit
On July 1, 2021, the Corporation entered into a 444-month lease as lessee for the use of the restaurant at the
Desert Willow Golf Course Clubhouse from the City. An initial lease liability was recorded in the amount of
$2,636,688. As of June 30, 2023, the value of the lease liability is $2,529,042. The Corporation is required to make
monthly fixed payments of $8,000. The lease has an interest rate of 1.705%. The value of the lease asset as of
June 30, 2023 of $2,636,688 with accumulated amortization of $142,524 is included with buildings on the lease
class activities table found below.
The principal and interest payments that are expected to maturity are as follows:
Lease assets by class activity at June 30, 2023 are as follows:
NOTE 9: SUBSCRIPTIONS
For the year ended June 30, 2023, the financial statements include the adoption of GASB Statement No. 96,
Subscription-Based Information Technology Arrangements. The primary objective of this statement is to enhance
the relevance and consistency of information about governments' subscription activities. This statement establishes
a single model for subscription accounting based on the principle that subscriptions are financings of the
subscription asset. Under this Statement, an organization is required to recognize a subscription liability and an
intangible subscription asset. For additional information, refer to the disclosures below.
Amount of
Leased Capital
Assets
Accumulated
Amortization
Lease assets - building 2,468,060$ 406,544$
Lease assets - equipment 135,224 62,112
2,603,284$ 468,656$
Lease Type
Equipment
Building
Major Class of Underlying Asset
Fiscal Year Principal Payments Interest Payments Total Payments
2024 53,295$ 42,705$ 96,000$
2025 54,211 41,789 96,000
2026 55,142 40,858 96,000
2027 56,090 39,910 96,000
2028 57,054 38,946 96,000
2029 - 2033 300,316 179,684 480,000
2034 - 2038 327,022 152,978 480,000
2039 - 2043 356,101 123,899 480,000
2044 - 2048 387,767 92,233 480,000
2049 - 2053 422,249 57,751 480,000
2054 - 2058 459,795 20,204 479,999
Total 2,529,042$ 830,957$ 3,359,999$
Component Unit
Amount of
Leased Capital
Assets
Accumulated
Amortization
Lease assets - building 2,636,688$ 142,524$
Lease Type Major Class of Underlying Asset
Building
65
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 9: SUBSCRIPTIONS (CONTINUED)
On August 15, 2022, the City entered into a 24-month subscription for the use of DebtBook. An initial subscription
liability was recorded in the amount of $123,373. As of June 30, 2023, the value of the subscription liability is
$113,623. The City is required to make monthly fixed payments of $9,750. The subscription has an interest rate of
2.0240%. The value of the subscription asset as of June 30, 2023 is $129,123 with accumulated amortization of
$56,671.
On February 1, 2023, the City entered into a 36-month subscription for the use of Recycle Coach. An initial
subscription liability was recorded in the amount of $22,920. As of June 30, 2023, the value of the subscription
liability is $15,570. The City is required to make annual fixed payments of $7,350. The subscription has an interest
rate of 2.6560%. The value of the subscription asset as of June 30, 2023 is $22,920 with accumulated amortization
of $3,183. The City had a termination period of 3 months as of the subscription commencement.
On January 1, 2023, the City entered into a 24-month subscription for the use of OpenGov Budgeting and Planning.
An initial subscription liability was recorded in the amount of $76,656. As of June 30, 2023, the value of the
subscription liability is $37,816. The City is required to make annual fixed payments of $38,840. The subscription
has an interest rate of 2.7070%. The value of the subscription asset as of June 30, 2023 is $76,656 with
accumulated amortization of $19,164 is included with Software on the Subscription Class activities table found
below.
On November 15, 2022, the City entered into a 26-month subscription for the use of OpenGov Procurement. An
initial subscription liability was recorded in the amount of $72,791. As of June 30, 2023, the value of the subscription
liability is $45,893. The City is required to make annual fixed payments of $24,056. The subscription has an interest
rate of 3.2070%. The value of the subscription asset as of June 30, 2023 is $72,791 with accumulated amortization
of $20,667.
On April 14, 2023, the City entered into a 14-month subscription for the use of Zoho Manage Engine. An initial
subscription liability was recorded in the amount of $100,176. As of June 30, 2023, the value of the subscription
liability is $78,793. The City is required to make monthly fixed payments of $7,255. The subscription has an interest
rate of 2.5600%. The value of the subscription asset as of June 30, 2023 is $100,176 with accumulated amortization
of $18,366.
On February 16, 2023, the City entered into a 60-month subscription for the use of eScribe Agenda Management.
An initial subscription liability was recorded in the amount of $133,239. As of June 30, 2023, the value of the
subscription liability is $107,888. The City is required to make monthly fixed payments of $25,500. The subscription
has an interest rate of 2.6820%. The value of the subscription asset as of June 30, 2023 is $142,180 with
accumulated amortization of $10,663. The Vendor has 2 extension option(s), each for 12 months.
The principal and interest payments that are expected to maturity are as follows:
Fiscal Year Principal Payments Interest Payments Total Payments
2024 274,401$ 10,175$ 284,576$
2025 67,037 3,233 70,270
2026 27,960 1,559 29,519
2027 30,185 810 30,995
Total 399,583$ 15,777$ 415,360$
Governmental Activities
66
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 9: SUBSCRIPTIONS (CONTINUED)
Subscription assets include the following at June 30, 2023:
NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE
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 124 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 California JPIA began covering claims of
its members in 1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a nine-member Executive Committee.
B. Primary 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 primary 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.
C. Primary 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 $100,000 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 $100,000
to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the
second layer. (4) Incurred costs from $500,000 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.
Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a
combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the
coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.
D. Primary 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 $75,000 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 $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total
incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on
the outcome of cost allocation within the first and second loss layers.
Amount of
Subscription
Assets
Accumulated
Amortization
Subscription assets - software 543,846$ 128,714$
Major Class of Underlying Asset
67
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED)
For 2022-23 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under
California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million.
Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses
from $5 million to $10 million are pooled among members.
E. Pollution Legal Liability Insurance
The City of Palm Desert participates in the pollution legal liability insurance program which is available through the
Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned
by the City of Palm Desert. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has
an aggregate limit of $20 million.
F. 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. City of Palm Desert property is
currently insured according to a schedule of covered property submitted by the City of Palm Desert to the Authority.
City of Palm Desert property currently has all-risk property insurance protection in the amount of $363,203,889.
There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500
deductible.
G. 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.
H. 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.
I. 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 2022-23.
J. Claims Payable
Estimates for all workers’ compensation and general liabilities up to the self-insured levels have been recorded as
long-term liabilities.
68
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 10: RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED)
Changes in claims liabilities during the past two years are as follows:
NOTE 11: 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. In June 2023, the City transitioned all 457 accounts from Nationwide and ICMA to Empower. The City
does not have fiduciary responsibility for the plan assets held by NRS, ICMA, or Empower. 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 of the 457 plan in
the amount of $7,494,722 held by NRS, ICMA, and Empower of the 457 Plan are not reflected in the City’s financial
statements.
NOTE 12: PENSION PLAN
A. General Information about the Pension Plan:
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan,
agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement
System (CalPERS), which acts as a common investment and administrative agent for its participating member
employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues
publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions
and membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits
to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service,
equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50
with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.
The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional
Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public
Employees’ Retirement Law.
June 30, 2022 June 30, 2023
Claims payable - Beginning of year 384,643$ 564,473$
Incurred claims (including IBNR) and changes in estimates 205,457 299,985
Claims payments (25,627) (184,577)
Claims payable - End of year 564,473$ 679,881$
Claims payable - due in one year 186,276 224,361
Claims payable - due in more than one year 378,197 455,520
564,473$ 679,881$
69
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 12: PENSION PLAN (CONTINUED)
The Plan’s provisions and benefits in effect at measurement date, are summarized as follows:
Employees Covered
At June 30, 2022, the following employees were covered by the benefit terms for all Plans:
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, 2022, using an annual actuarial valuation
as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal
assumptions and methods used to determine the net pension liability is shown below.
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 12.890%12.890%
Miscellaneous
Inactive employees or beneficiaries currently receiving benefit s89
Inactive employees entitled to but not yet receiving benefits 35
Active employees 97
Total 221
70
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 12: PENSION PLAN (CONTINUED)
Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial
assumptions:
*The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality
improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please
refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015)
that can be found on the CalPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 6.90% 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 6.90%
discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The
long-term expected discount rate of 6.90% 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.
Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method Entry age normal
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.30%
Payroll Growth 2.75%
Projected Salary Increase Varies by Entry
Investment Rate of Return 6.9% Net of Pension Plan Investment and
Administrative Expenses; includes Inflation
Mortality rate table *Derived using CalPERS' membership data for all funds
71
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 12: PENSION PLAN (CONTINUED)
C. Changes in the Net Pension Liability
The changes in the net pension liability for the year ended June 30, 2023, with a measurement date of
June 30, 2022, for the Miscellaneous Plan are as follows:
Assumed
Asset
Asset Class Allocation Real Return
1, 2
Global equity-cap-weighted 30.00%4.54%
Global equity-non-cap-weighted 12.00%3.84%
Private equity 13.00%7.28%
Treasury 5.00%0.27%
Mortgage-backed securities 5.00%0.50%
Investment grade corporates 10.00%1.56%
High yield 5.00%2.27%
Emerging market debt 5.00%2.48%
Private debt 5.00%3.57%
Real assets 15.00%3.21%
Leverage -5.00% -0.59%
1 An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021 Asset Liability Management study
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability (Asset)
Balance at June 30, 2021 (Measurement Date)147,437,667$ 127,850,893$ 19,586,774$
Changes in the Year:
Service Cost 1,976,289 - 1,976,289
Interest on the Total Pension Liability 10,122,299 - 10,122,299
Difference between Expected and Actual Experience (2,563,805) - (2,563,805)
Changes in Assumptions 4,699,855 - 4,699,855
Net Plan to Plan Resource Movement - - -
Contributions - Employer - 4,020,131 (4,020,131)
Contributions - Employees - 791,130 (791,130)
Net Investment Income - (9,592,025) 9,592,025
Benefit Payments including Refunds of Employee (7,723,744) (7,723,744) -
Administrative expense - (79,643) 79,643
Other Misc Income / (Expense)- - -
Net Changes 6,510,894 (12,584,151) 19,095,045
Balance at June 30, 2022 (Measurement Date)153,948,561$ 115,266,742$ 38,681,819$
Increase (Decrease)
72
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 12: PENSION PLAN (CONTINUED)
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:
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS
financial reports.
D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2023, the City recognized pension expense of $208,654. At June 30, 2023, the City
reported deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
$4,574,753 reported as deferred outflows of resources related to contributions subsequent to the measurement
date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024. Other amounts
reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(5.90%) (6.90%) (7.90%)
Plan's net pension liability/(asset) 58,826,252$ 38,681,819$ 21,984,690$
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date 4,574,753$ -$
Change in assumptions 2,959,168 -
Differences between expected and actual experience 30,325 1,614,248
Net difference between projected and actual earnings on
pension plan investments 5,679,555 -
Total 13,243,801$ 1,614,248$
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2024 1,700,763$
2025 1,335,314
2026 356,699
2027 3,662,024
Total 7,054,800$
73
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS
A. Plan Description
In addition to the pension benefits described in Note 11, 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.
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:
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:
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 ($149 in 2022 and $151 in
2023) for these employees.
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%
Age 1516171819202122232425+
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
74
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 13: 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, 2022, the date of the most recent actuarial valuation, the City's plan has 97 active employees.
Employees Covered - Plan membership, at June 30, 2021 valuation date, membership consisted of the following:
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/(Asset)
The City’s Net OPEB Liability/(Asset) was measured as of June 30, 2022 and the Total OPEB Liability used to
calculate the Net OPEB Liability/(Asset) was determined by an actuarial valuation as of June 30, 2021. 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:
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.
Inactive plan members or beneficiaries 124
Active plan members 97
Total 221
Inflation 2.50%
Salary Increase 3.00% per annum
Assumed Wage Inflation 3.00% per annum
Investment Rate of Return 5.50% per annum
Healthcare cost-trend rates Assumed to start at 6.5% and grade down by 0.5% each year to 5% in 2024
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 under the
2017 Experience study and projected using the MacLeod Watts
Scale 2018 applied generationally.
75
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
E. Changes in the Net OPEB Liability/(Asset)
The changes in the net OPEB liability/(asset) for the Plan are as follows:
F. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in the Discount Rate
The following presents the total OPEB liability and net OPEB liability/(asset), as well as what the total OPEB liability
and net OPEB liability/(asset) would be if they were calculated using a discount rate that is 1-percentage point lower
(5.50 percent) or 1-percentage-point higher (6.50 percent) than the current discount rate:
G. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in the Health Care
Cost Trend Rates
The following presents the total OPEB liability and net OPEB liability/(asset), as well as what the total
OPEB liability and net OPEB liability/(asset) would be if they were calculated using healthcare cost trend rates that
are 1-percentage-point lower (5.70 percent decreasing to 4.70 percent) or 1-percentage-point higher
(5.70 percent increasing to 6.70 percent) than the current healthcare cost trend rates:
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance at June 30, 2021 (Measurement Date) 19,628,837$ 23,762,792$ (4,133,955)$
Changes in the Year:
Service Cost 294,337 - 294,337
Interest on the Total OPEB Liability 1,205,943 - 1,205,943
Changes in Assumptions 1,691,792 (4,504,553) 6,196,345
Contributions - Employer 1,230,895 (1,230,895)
Net Investment Income 1,481,970 (1,481,970)
Benefit Payments (944,960) (944,960) -
Changes in Benefit Terms - - -
Administrative Expenses - (6,034) 6,034
Net Changes 2,247,112 (2,742,682) 4,989,794
Balance at June 30, 2022 (Measurement Date) 21,875,949$ 21,020,110$ 855,839$
Increase (Decrease)
Discount Rate Current Discount Rate
-1 Percent Discount Rate +1 Percent
(4.50%) (5.50%) (6.50%)
Net OPEB liability/(asset) 3,679,950$ 855,839$ (1,498,372)$
1% Decrease Trend Rate 1% Increase
Net OPEB liability/(asset) (1,599,584)$ 855,839$ 3,818,003$
76
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 13: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED)
H. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2023, the City recognized OPEB expense (revenue) of $610,395. As of fiscal
year ended June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the
following sources:
The City will recognize the contributions made subsequent to the measurement date totaling $1,108,988 in the next
fiscal year. In addition, future recognition of the deferred resources is shown below:
NOTE 14: SPECIAL ASSESSMENT DEBT
Below is a summary of the changes in the special assessment bonds payable:
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to the measurement date 1,108,988$ -$
Change in assumptions 1,633,966 553
Differences between expected and actual experience 73,555 432,989
Net difference between projected and actual earnings on
pension plan investments 2,044,360 -
Total 4,860,869$ 433,542$
Deferred
Outflows/(Inflows)
Fiscal year ended June 30, of Resources
2024 891,446$
2025 949,901
2026 440,465
2027 924,029
2028 23,210
Thereafter 89,288
Total 3,318,339$
Amount
Balance Balance Due Within
July 1, 2022 Additions Deletions June 30, 2023 One Year
2003 Assessment Revenue Bonds 900,000$ -$ 120,000$ 780,000$ 115,000$
CFD 2021-1 Special Tax Bonds Series 2021 15,200,000 - 245,000 14,955,000 305,000
CFD 2005-1 Special Tax Bonds Series 2021A 5,165,000 - 250,000 4,915,000 270,000
Section 29 Assessment District 2004-02
Limited Obligation Bonds Series 2021 16,400,000 - 685,000 15,715,000 785,000
Total 37,665,000$ -$ 1,300,000$ 36,365,000$ 1,475,000$
77
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED)
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 Custodial 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.
A.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:
As of June 30, 2023, the principal amounts to be repaid by the Assessment District No. 01-1 to pay off the loans
from the Financing Authority is $780,000.
B.Community Facilities District No. 2005-1, Series 2021A
In July 2021, the City of Palm Desert Community Facilities District No. 2005-1 (University Park) Special Tax
Refunding Bonds, Series 2021A (the “Bonds”) are being issued by City of Palm Desert Community Facilities
District No. 2005-1 (University Park) (the “District”) to provide funds: (i) to refund a portion of the District’s
outstanding Special Tax Bonds, Series 2006A (the “2006 Bonds”); (ii) to fund a Reserve Account for the Bonds;
and (iii) to pay costs incurred in connection with the issuance of the Bonds. The 2006 Bonds were issued for the
purpose of providing funds to pay the costs of acquiring certain public facilities. The Bonds are special obligations
of the District and are payable solely from Net Taxes (as defined herein), and the other assets pledged therefor
under the Indenture, all as further described herein. Special Taxes (as defined herein) are to be levied according to
the rate and method of apportionment approved by the City Council of the City and the qualified electors within the
District. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1,
with principal maturing annually on September 1.
Year Ending
June 30, Principal Interest Total
2024 115,000$ 38,763$ 153,763$
2025 120,000 32,519 152,519
2026 125,000 25,934 150,934
2027 135,000 18,947 153,947
2028 140,000 11,556 151,556
2029 145,000 3,897 148,897
Total 780,000$ 131,616$ 911,616$
78
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED)
Debt service requirements to maturity are as follows:
C. Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds, Series 2021
In July 2021, the City of Palm Desert issued $16,400,000 Limited Obligation Improvement Bonds. The proceeds of
the Bonds will be used to refund previously issued series 2017 bonds that financed 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.
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 2020. 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 $14,925,000 carry an interest rate of 5.10%
and mature September 2, 2037.
Debt service requirements to maturity are as follows:
D. Community Facilities District No. 2021-1, Series 2021
The City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2021
(the “Bonds”) are being issued by the City of Palm Desert Community Facilities District No. 2021-1 (University Park)
(the “District”) to: (i) pay and defease a pro rata portion of outstanding Series 2006A Special Tax Bonds (the “CFD
2005-1 Pro Rata Bonds”) issued by, and secured by the special taxes of existing City of Palm Desert Community
Facilities District No. 2005-1 (University Park) (“CFD No. 2005-1”); (ii) finance the acquisition of certain
public improvements needed with respect to the development of property located within the District, including
public improvements to be owned by the City and water and sewer facilities to be owned and operated by the
Coachella Valley Water District; (iii) fund a reserve account for the Bonds; and (iv) pay costs of issuance for the
Bonds. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1,
with principal maturing annually on September 1.
Year Ending
June 30, Principal Interest Total
2024 270,000$ 187,050$ 457,050$
2025 280,000 178,800 458,800
2026 290,000 168,800 458,800
2027 300,000 157,000 457,000
2028 315,000 144,700 459,700
2029-2033 1,780,000 519,600 2,299,600
2034-2037 1,680,000 137,800 1,817,800
Total 4,915,000$ 1,493,750$ 6,408,750$
Year Ending
June 30, Principal Interest Total
2024 785,000$ 612,900$ 1,397,900$
2025 815,000 596,600 1,411,600
2026 850,000 647,600 1,497,600
2027 880,000 513,000 1,393,000
2028 920,000 477,000 1,397,000
2029-2033 5,175,000 1,792,100 6,967,100
2034-2038 6,290,000 649,200 6,939,200
Total 15,715,000$ 5,288,400$ 21,003,400$
79
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 14: SPECIAL ASSESSMENT DEBT (CONTINUED)
Debt service requirements to maturity are as follows:
E. Bond Reserve Requirements
At June 30, 2023, the fund balance reserve requirements and actual reserve balances were as follows:
NOTE 15: PRIOR PERIOD ADJUSTMENTS
During fiscal year 2023, the City determined that lease agreement between the City and the Corporation was not
properly reported in the prior year. Therefore, lease receivable was understated by $2,581,437, deferred inflows of
resources was understated by $2,565,426 and fund balance/net position was understated by $19,679 for the fiscal
year ended June 30, 2022 in the General Fund and Governmental Activities. The lease payable was understated
by $2,581,437, lease asset, net of amortization was understated by $2,565,426 and net position was overstated by
$19,679 for the fiscal year ended June 30, 2022 in the Palm Desert Recreation Facility Corporation’s financial
statements for the same purpose.
During fiscal year 2023, the City determined that due to bondholders in the Custodial Fiduciary Funds was not
properly accrued. This was the result of a new interpretation obtained from GASB related to the implementation of
GASB Statement No. 84, Fiduciary Funds. This resulted in a restatement of net position totaling $7,790,756 as of
June 30, 2022.
Year Ending
June 30, Principal Interest Total
2024 305,000$ 562,575$ 867,575$
2025 315,000 553,275 868,275
2026 325,000 543,675 868,675
2027 335,000 533,775 868,775
2028 345,000 523,575 868,575
2029-2033 1,880,000 2,452,300 4,332,300
2034-2038 2,245,000 2,072,500 4,317,500
2039-2043 2,730,000 1,576,400 4,306,400
2044-2048 3,310,000 974,600 4,284,600
2049-2052 3,165,000 259,500 3,424,500
Total 14,955,000$ 10,052,175$ 25,007,175$
Requirement Actual
2003 Financing Authority Revenue Bonds $153,947 $165,720
CFD 2021-1 Special Tax Bonds, Series 2021 868,775 874,214
CFD 2005-1 Special Tax Bonds, Series 2021A 461,800 468,408
Section 29 Assessment District 2004-02
Limited Obligation Bonds Series 2021 1,411,600 1,416,853
80
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 16: 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, 2023, were as follows:
81
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 17: CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
Construction Commitments
Primary Government
NOTE 18: SUCCESSOR AGENCY DISCLOSURES
Dissolution of Redevelopment Agency
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. The City Council adopted Resolution No. 2011-76 on
August 25, 2011, 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”). SARDA
is tasked with the wind-down of the Dissolved RDA’s affairs. Certain SARDA actions must first be approved by an
oversight board, composed of seven-members representing taxing entities.
HSC Section 34173(g) expressly provides that SARDA is a separate public entity from the City, and the liabilities
and assets of the Dissolved RDA shall not be transferred to the City.
Pursuant to HSC Section 34176, the City Council adopted Resolution No. 2012-07, on February 9, 2012,
electing to have the Palm Desert Housing Authority to serve as the Housing Successor. The Housing Authority
(as the Housing Successor) submitted to the State Department of Finance (“DOF”) a list of housing assets to be
transferred by SARDA to the Housing Successor. On August 31, 2012, the DOF issued a letter indicating that the
DOF had no 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 2011-12.
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
82
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
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. The County Auditor-Controller (“CAC”) has established a
Redevelopment Property Tax Trust Fund (the “RPTTF”) for SARDA and is charged with depositing into the RPTTF
the amount of property taxes that would have been redevelopment property tax increment had the Dissolved RDA
not been dissolved.
SARDA is required to prepare an annual recognized obligation payment schedule (the “ROPS”) setting forth the
amounts due for enforceable obligations from each July 1 through the following June 30. The CAC only makes
payments to the SARDA from the RPTTF based on the ROPS amounts approved by the oversight board and the
DOF.
During fiscal year 2012-13, SARDA was required to conduct due diligence reviews of the low and moderate income
housing fund and all other funds to compute the funds (cash) which were not needed to be retained to pay existing
enforceable obligations or otherwise unrestricted, and therefore, must be remitted to the CAC. 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 remitted such payments.
The Finding of Completion allows the placement of certain loans (“Advances”) made by the City to the Dissolved
RDA (which were previously voided by operation of law upon the Dissolved RDA’s dissolution) on the ROPS. For
each approved repayment 20% of the repayment amount must be allocated to the Housing Asset Fund. The
repayment of the Advances, pursuant to the oversight board’s and the DOF’s approval, began during fiscal year
2019-20. During fiscal year 2022-23, the City received a final determination from the California Department of
Finance that these advances would not be deemed an enforceable obligation. There is no financial statement
impact as these balances were offset by an allowance for doubtful accounts in previous years.
The California State Controller 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.
SARDA’s use and disposition of all real 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.
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 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 and the requirement to deposit the Housing Set-Aside into such fund have been eliminated upon the
Dissolved RDA’s dissolution, SARDA continues to recognize the Judgment as its enforceable obligation. On its
83
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
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, 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.
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:
Capital Assets
During the year ending June 30, 2023, the SARDA sold land with a cost basis of $6,682,705 for a sales price of
$12,167,792. These proceeds are required to be remitted to the County of Riverside for distribution to the taxing
entities in accordance with the Health and Safety Code. As of June 30, 2023, $7,660,205 has been remitted to the
County of Riverside and the remaining $4,507,587 has been accrued in Due to Other Governments for distribution
in Fiscal Year 2023-2024.
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2023, was as follows:’
The tax allocation revenues bonds issued before 2011 (i.e., before the dissolution of the Dissolved RDA) were
issued by the Palm Desert Financing Authority, the proceeds of which were loaned to the Dissolved RDA
for financing or refinancing redevelopment projects. Pursuant to the bond documents, the Authority’s bonds were
Balance Balance
July 1, 2022 Additions Deletions June 30, 2023
Capital assets, not being depreciated:
Land 23,909,102$ -$ (6,682,705)$ 17,226,397$
Total capital assets, not being depreciated 23,909,102 - (6,682,705) 17,226,397
Total fuduciary fund capital assets 23,909,102$ -$ (6,682,705)$ 17,226,397$
Amount
Balance Balance Due Within
July 1, 2022 Additions Deletions June 30, 2023 One Year
2003 TARBs, $15,745,000 15,745,000$ -$ -$15,745,000$ 875,000$
2017 A TARBs, $52,390,000 39,600,000 - 3,195,000 36,405,000 715,000
2017 B TARBs, $140,130,000 105,750,000 -9,405,000 96,345,000 11,675,000
2017 H-A TARBs, $7,365,000 5,455,000 - 430,000 5,025,000 455,000
2017 H-B TARBs, $45,815,000 12,210,000 - 6,015,000 6,195,000 6,195,000
Subtotal 178,760,000 -19,045,000 159,715,000 19,915,000
Add: Unamortized bond premium 5,363,049 723,806 4,639,243 -
Less: Unamortized bond discount (1,602,609) - (134,731) (1,467,878) -
Total 182,520,440$ -$ 19,634,075$ 162,886,365$ 19,915,000$
84
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
secured by the Dissolved RDA’s (and after dissolution, are secured by the Successor Agency’s) 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 19) 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. 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 Project Area No. 2 2003 Bonds 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 U.S.
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.
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:
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project Area No. 2) are
as follows:
2017 Series A Tax Allocation Refunding Bonds
On January 31, 2017, the Successor Agency issued the 2017A Bonds, in the principal amount of $52,390,000. The
proceeds from the 2017A Bonds were utilized to refund the Project Area No. 1 2002A Bonds, Project Area No. 1
2003 Bond, Project Area No. 1 2004 Bonds, the Project Area No. 2 2002A Bonds, and the Project Area No. 4 1998
Bonds and pay certain costs associated with the issuance of the bonds.
Year Ending
June 30, Principal Interest Total
2024 875,000$ 749,319$ 1,624,319$
2025 910,000 709,156 1,619,156
2026 1,145,000 662,203 1,807,203
2027 1,340,000 604,738 1,944,738
2028 1,405,000 538,625 1,943,625
2029-2033 8,175,000 1,536,875 9,711,875
2034 1,895,000 47,375 1,942,375
Total 15,745,000$ 4,848,291$ 20,593,291$
85
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: 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, 2023, the outstanding
principal balance on the bonds $36,405,000.
The future debt service requirements on the 2017A Bonds are as follows:
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.
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, 2023, the outstanding
principal balance on the bonds is $96,345,000.
The future debt service requirements on the 2017B Bonds are as follows:
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 $7,365,000.
The proceeds from the 2017H-A Bonds were used to refund the 2002 Housing Bonds and pay certain costs
associated with the issuance of the bonds.
Year Ending
June 30, Principal Interest Total
2024 715,000$ 1,802,375$ 2,517,375$
2025 6,630,000 1,618,750 8,248,750
2026 6,910,000 1,280,250 8,190,250
2027 5,245,000 976,375 6,221,375
2028 5,495,000 707,875 6,202,875
2029-2031 11,410,000 841,250 12,251,250
Total 36,405,000$ 7,226,875$ 43,631,875$
Year Ending
June 30, Principal Interest Total
2024 11,675,000$ 3,422,400$ 15,097,400$
2025 5,585,000 3,160,009 8,745,009
2026 5,710,000 2,979,956 8,689,956
2027 8,060,000 2,751,156 10,811,156
2028 4,790,000 2,531,319 7,321,319
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 96,345,000$ 27,391,199$ 123,736,199$
86
CITY OF PALM DESERT
Notes To Basic Financial Statements
Year Ended June 30, 2023
NOTE 18: 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, 2023, the outstanding
principal balance on the bonds is $5,025,000.
The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds are as follows:
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.
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, 2023, the outstanding
principal balance on the bonds is $6,195,000.
The future debt service requirements on the 2017H-B Bonds are as follows:
NOTE 19: SUBSEQUENT EVENTS
The City evaluated subsequent events for recognition and disclosure through January 30, 2024, the date on which
these financial statements were available to be issued. Management concluded that no material subsequent events
have occurred since June 30, 2023, that required recognition or disclosure in these financial statements.
Year Ending
June 30, Principal Interest Total
2024 455,000$ 216,144$ 671,144$
2025 475,000 192,894 667,894
2026 505,000 168,394 673,394
2027 525,000 142,644 667,644
2028 555,000 115,644 670,644
2029-2033 2,510,000 186,784 2,696,784
Total 5,025,000$ 1,022,504$ 6,047,504$
Year Ending
June 30, Principal Interest Total
2024 6,195,000$ 92,925$ 6,287,925$
Total 6,195,000$ 92,925$ 6,287,925$
87
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 Plan to Plan Resource Movement - -- -
Other Miscellaneous Income/(Expense)- -- -
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
(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 nine years are shown.
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or
before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date
are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: None in 2020-2022. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS
Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2018, the discount rate was reduced from
7.65% to 7.15%. In 2017, there were no changes. In 2016, amounts reported reflect an adjustment of the discount rate from 7.50% (net of administrative
expense) to 7.65% (without a reduction for pension plan administrative expense). In 2015, amounts reported were based on the 7.50% discount rate.
88
2019 2020 2021 2022 2023
2,196,462$ 1,973,971$ 2,086,683$ 2,042,043$ 1,976,289$
8,797,867 9,261,660 9,645,145 10,005,168 10,122,299
(594,882) 1,762,387 533,373 116,967 (2,563,805)
(1,148,708) - - - 4,699,855
(5,934,338) (6,383,377) (6,540,485) (7,041,890) (7,723,744)
3,316,401 6,614,641 5,724,716 5,122,288 6,510,894
126,659,621 129,976,022 136,590,663 142,315,379 147,437,667
129,976,022$ 136,590,663$ 142,315,379$ 147,437,667$ 153,948,561$
5,407,412$ 5,963,737$ 4,521,813$ 4,729,858$ 4,020,131$
812,447 791,794 805,528 745,959 791,130
7,555,653 6,322,815 5,102,524 24,010,711 (9,592,025)
(5,934,338) (6,383,377) (6,540,485) (7,041,890) (7,723,744)
(136,651) (67,893) (143,465) (105,400) (79,643)
(222) - - - -
(259,502) 222 - - -
7,444,799 6,627,298 3,745,915 22,339,238 (12,584,151)
87,693,643 95,138,442 101,765,740 105,511,655 127,850,893
95,138,442$ 101,765,740$ 105,511,655$ 127,850,893$ 115,266,742$
34,837,580$ 34,824,923$ 36,803,724$ 19,586,774$ 38,681,819$
73.20% 74.50% 74.14% 86.72% 74.87%
10,751,687$ 9,807,088$ 10,353,849$ 10,386,791$ 9,621,662$
324.02% 355.10% 355.46% 188.57% 402.03%
89
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$ 10,751,687$
Contributions as a Percentage of Covered Payroll 35.51%37.53% 49.64% 50.20%
Note to Schedule:
Valuation Date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth
Investment rate of return
Retirement age
Mortality
6.9% net of pension investment and administrative expenses, including
The probabilities of retirement are based on the 2017 CalPERS
Experience Study for the period from 1997 to 2015.
The probabilities of retirement are based on the 2017 CalPERS
Experience Study for the period from 1997 to 2015. Pre-retirement and
post-retirement mortality rates include 15 years of projected mortality
improvement using the 90% scale MP 2016 published by the Society of
(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 nine years are shown.
June 30, 2021
2.750%
Varies by entry age and service
2.300%
Market value
Level percentage of payroll, closed
Entry age normal
See Notes to Required Supplementary Information.
90
2019 2020 2021 2022 2023
4,225,204$ 4,736,668$ 4,936,652$ 4,123,142$ 4,574,753$
(5,963,737) (4,521,813) (4,729,797) (4,123,142) (4,574,753)
(1,738,533)$ 214,855$ 206,855$ -$ -$
9,807,088$ 10,353,849$ 10,386,791$ 9,621,662$ 10,601,359$
60.81% 43.67% 45.54% 42.85% 43.15%
See Notes to Required Supplementary Information.
91
CITY OF PALM DESERT
Schedule of Changes in the Net OPEB Liability/(Asset)
and Related Ratios
As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020
Total OPEB Liability
Service cost 346,417$ 357,675$ 369,299$
Interest on the total OPEB liability 1,144,106 1,199,747 1,256,431
Differences between expected and actual experience - - (4,066,457)
Changes in assumptions - - 2,552,767
Changes in benefit terms - - -
Benefit payments (653,187) (696,845) (756,759)
Net change in total OPEB liability 837,336 860,577 (644,719)
Total OPEB liability - beginning 16,980,271 17,817,607 18,678,184
Total OPEB liability - ending (a)17,817,607$ 18,678,184$ 18,033,465$
Plan Fiduciary Net Position
Contribution - employer 1,255,960$ 1,381,501$ 2,408,260$
Net investment income 902,331 843,319 1,226,966
Benefit payments (653,187) (696,845) (756,759)
Administrative expense (6,541) (7,371) (3,515)
Other Expenses - (18,115) -
Net change in plan fiduciary net position 1,498,563 1,502,489 2,874,952
Plan fiduciary net position - beginning 12,198,460 13,697,023 15,199,512
Plan fiduciary net position - ending (b)13,697,023 15,199,512 18,074,464
Net OPEB Liability/(Asset) - ending (a) - (b)4,120,584$ 3,478,672$ (40,999)$
Plan fiduciary net position as a percentage
of the total OPEB liability/(asset)76.87% 81.38% 100.23%
Covered-Employee payroll 10,741,786$ 10,546,052$ 11,382,103$
Net OPEB liability/(asset) as a percentage
of covered-employee payroll 38.36% 32.99% -0.36%
(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.
See Notes to Required Supplementary Information.
92
2021 2022 2023
366,971$ 378,897$ 294,337$
1,117,500 1,161,531 1,205,943
- - -
- 1,053,761 1,691,792
- (910,834) -
(752,486) (819,968) (944,960)
731,985 863,387 2,247,112
18,033,465 18,765,450 19,628,837
18,765,450$ 19,628,837$ 21,875,949$
1,280,453$ 1,140,548$ 1,230,895$
977,487 3,878,532 (3,022,583)
(752,486) (819,968) (944,960)
(9,045) (7,193) (6,034)
- - -
1,496,409 4,191,919 (2,742,682)
18,074,464 19,570,873 23,762,792
19,570,873 23,762,792 21,020,110
(805,423)$ (4,133,955)$ 855,839$
104.29% 121.06% 96.09%
10,881,697$ 11,208,147$ 12,780,729$
-7.40% -36.88%6.70%
See Notes to Required Supplementary Information.
93
CITY OF PALM DESERT
Schedule of Plan Contributions - OPEB
As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020
520,620$ 455,021$ 348,915$
(1,217,465) (2,211,778) (1,280,453)
(696,845)$ (1,756,757)$ (931,538)$
10,741,786$ 10,546,052$ 11,382,103$
11.33% 20.97% 11.25%
Notes to Schedule:
Methods and assumptions used to determine contributions:
Actuarial Cost Method
Amortization Valuation Method/Period
Asset Valuation Method Market Value
Inflation 2.50%
Payroll Growth
Investment Rate of Return 5.50% per
Healthcare cost-trend rates
Retirement Age
Mortality
(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.
Actuarially Determined Contribution
Contribution in Relation to the Actuarially Determined Contributions
Contribution Deficiency (Excess)
Covered-Employee payroll
Contributions as a percentage of covered-employee payroll
Entry Age Normal
Level percent of payroll over
3.00% per annum, in aggregate
Assumed to start at 6.5% and grade down by 0.5% each year to
5% in 2024
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 under PEMHCA.
Mortality rates used were those published by CalPERS under the
2017 Experience study and projected using the MacLeod Watts
Scale 2018 applied generationally.
94
2021 2022 2023
320,508$ 994,088$ 452,627$
(1,140,548) (994,088) (1,108,988)
(820,040)$ -$ (656,361)$
10,881,697$ 11,208,147$ 12,780,729$
10.48%8.87%8.68%
95
CITY OF PALM DESERT
Budgetary Comparison Schedule by Department
General Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 119,900,532$ 119,900,532$ 119,900,532$ -$
Resources (Inflows):
Taxes
Property taxes 7,230,029 7,230,029 7,918,559 688,530
Property transfer tax 774,000 774,000 934,735 160,735
Property tax in lieu 4,800,000 4,800,000 5,033,448 233,448
Timeshare mitigation fee 1,584,000 1,584,000 1,711,324 127,324
Sales tax 25,673,460 25,673,460 26,354,774 681,314
Business license tax 1,200,000 1,200,000 1,139,514 (60,486)
Job valuation fees 32,947 32,947 45,187 12,240
Transient occupancy tax 17,815,000 17,815,000 23,825,410 6,010,410
Franchises 3,150,000 3,150,000 3,574,273 424,273
Penalties and interest on taxes 20,000 20,000 185,219 165,219
Total Taxes 62,279,436 62,279,436 70,722,443 8,443,007
Licenses and Permits
Building permits 900,000 1,500,000 2,275,257 775,257
Grading permits 25,000 25,000 15,717 (9,283)
Encroachment permits 40,000 200,000 226,113 26,113
Miscellaneous permits --530 530
Business regulatory permits 22,500 22,500 19,388 (3,112)
Golf cart permits 945 945 2,380 1,435
Valet parking permits 550 550 75 (475)
Total Licenses and Permits 988,995 1,748,995 2,539,460 790,465
Intergovernmental
State mandate cost --94,795 94,795
Motor vehicle in-lieu fees 24,000 24,000 52,162 28,162
Monthly parking bail 10,000 10,000 4,332 (5,668)
Reimbursement RDA costs 700,000 700,000 1,052,201 352,201
Other reimbursements 626,500 626,500 412,029 (214,471)
Total Intergovernmental 1,360,500 1,360,500 1,615,519 255,019
Rental Income 155,000 155,000 138,649 (16,351)
Charges for Services
Subdivision fees 500,000 500,000 451,094 (48,906)
Zoning fees 40,000 40,000 52,200 12,200
Plan check fees 335,500 600,000 644,448 44,448
Sale of maps and publications 5,000 5,000 8,210 3,210
Microfilm fees 500 500 199 (301)
Vehicle impact fee 625,000 625,000 595,493 (29,507)
Other fees 135,450 135,450 167,222 31,772
Total Charges for Services 1,641,450 1,905,950 1,918,866 12,916
Investment Earnings
Interest income 450,000 450,000 4,853,178 4,403,178
Interest on notes receivable 200,000 200,000 172,356 (27,644)
Total Investment Earnings 650,000 650,000 5,025,534 4,375,534
Fines and Forfeitures
Vehicle code fines 35,000 35,000 22,197 (12,803)
Municipal court fines 25,000 25,000 7,789 (17,211)
VICR fees 75,000 75,000 89,716 14,716
Total Fines and Forfeitures 135,000 135,000 119,702 (15,298)
Miscellaneous
Code compliance 150,000 150,000 152,450 2,450
Certificate of compliance fee 500 500 200 (300)
Nuisance abatement tax 20,000 20,000 3,511 (16,489)
Abandoned vehicle abatement 38,000 38,000 69,162 31,162
Other revenue 157,000 267,000 343,233 76,233
Total Miscellaneous 365,500 475,500 568,556 93,056
Transfers In 3,604,700 3,075,963 2,478,731 (597,232)
Amounts Available for Appropriations 191,081,113 191,686,876 206,009,835 14,322,959
Year Ended June 30, 2023
See Notes to Required Supplementary Information.96
CITY OF PALM DESERT
Budgetary Comparison Schedule by Department
General Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Year Ended June 30, 2023
Charges to Appropriation (Outflow):
General Government
City Council 291,198 344,078 246,156 97,922
City Clerk 886,160 1,047,726 941,796 105,930
Legislative Advocacy 39,655 39,655 36,000 3,655
Elections 326,500 405,491 405,574 (83)
City Attorney 304,337 304,337 296,988 7,349
Legal Special Services 309,986 409,986 452,317 (42,331)
City Manager 1,184,119 1,179,950 1,077,518 102,432
Community Services - - 80,042 (80,042)
Finance 2,114,050 2,459,750 2,041,090 418,660
Independent Audit 90,000 117,000 145,036 (28,036)
Human Resources 798,160 1,282,478 835,145 447,333
General Services 7,244,134 4,738,486 4,281,784 456,702
Information Technology 2,319,961 2,672,246 2,319,470 352,776
Unemployment Insurance 10,000 10,000 138 9,862
Insurance 1,124,000 1,124,000 1,029,186 94,814
Contributions to Other Agencies 628,500 781,500 773,889 7,611
Community Promotions 1,189,500 1,332,200 1,347,204 (15,004)
Marketing 1,818,030 2,025,980 1,523,041 502,939
Visitors Information Center 12,930 12,930 27,166 (14,236)
Economic Development Center 993,200 2,422,575 1,413,836 1,008,739
Planning & Community Development 1,932,950 1,909,657 2,057,343 (147,686)
Total General Government 23,617,370 24,620,025 21,330,719 3,289,306
Public Safety
Police Services 20,976,865 20,976,865 20,403,994 572,871
Animal Regulation 336,977 336,977 409,231 (72,254)
Traffic Safety 1,171,900 1,189,250 915,244 274,006
Building and Safety 1,483,239 1,736,125 1,366,067 370,058
Community Safety 435,000 785,000 210,021 574,979
Total Public Safety 24,403,981 25,024,217 23,304,557 1,719,660
Parks, Recreation, and Culture
Civic Center Park 1,752,200 1,739,592 1,674,247 65,345
Park Maintenance 1,196,000 1,277,088 1,106,087 171,001
Landscaping Service 2,729,305 2,994,874 2,693,153 301,721
Civic Center Park - Improvement 145,000 145,000 88,512 56,488
Total Parks, Recreation and Culture 5,822,505 6,156,554 5,561,999 594,555
Public Works
Administration 3,056,050 3,144,625 3,026,733 117,892
Street Maintenance 2,066,250 2,290,900 2,156,583 134,317
Street Resurfacing 300,000 300,000 - 300,000
Curb & Gutter 25,000 25,000 14,980 10,020
Parking Lot 440,000 223,000 - 223,000
Corporate Yard 158,000 220,500 189,549 30,951
Auto Fleet / Equipment 299,000 396,000 328,117 67,883
Public Bldg - Opr/Maint. 895,000 1,088,400 998,577 89,823
Portola Community Center 192,000 182,000 164,663 17,337
Total Public Works 7,431,300 7,870,425 6,879,202 991,223
Capital Outlay 162,000 175,500 685,071 (509,571)
Debt service:-
Principal retirement - - 129,574 (129,574)
Interest and fiscal charges - - 4,498 (4,498)
Transfers Out 8,106,823 25,018,281 24,813,041 205,240
Contribution to Other Government - - 834,654 (834,654)
Total Charges to Appropriations 71,176,429 90,502,802 85,093,323 5,409,479
Budgetary Fund Balance, June 30 119,904,684$ 101,184,074$ 120,916,512$ 19,732,438$
See Notes to Required Supplementary Information.97
CITY OF PALM DESERT
Budgetary Comparison Schedule
Prop A Fire Tax
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 12,682,312$ 12,682,312$ 12,682,312$ -$
Resources (Inflows):
Taxes 7,000,000 7,000,000 9,169,242 2,169,242
Assessments 2,200,000 2,200,000 2,138,587 (61,413)
Intergovernmental 1,100,000 1,100,000 1,457,526 357,526
Charges for services 2,400,000 2,400,000 3,100,323 700,323
Investment earnings 20,000 20,000 222,043 202,043
Transfers in 4,600,000 4,600,000 4,600,000 -
Amounts Available for Appropriations 30,002,312 30,002,312 33,370,033 3,367,721
Charges to Appropriation (Outflow):
Public safety 17,057,875 18,185,785 16,970,960 1,214,825
Capital outlay t 638,400 1,751,820 660,442 1,091,378
Total Charges to Appropriations 17,696,275 19,937,605 17,631,402 2,306,203
Budgetary Fund Balance, June 30 12,306,037$ 10,064,707$ 15,738,631$ 5,673,924$
Year ended June 30, 2023
See Notes to Required Supplementary Information.
98
CITY OF PALM DESERT
Budgetary Comparison Schedule
Housing Asset Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 48,603,279$ 48,603,279$ 48,603,279$ -$
Resources (Inflows):
Investment earnings 95,000 95,000 1,554,962 1,459,962
Miscellaneous - - 38,780 38,780
Proceeds from sale of capital asset - - 293,804 293,804
Amounts Available for Appropriations 48,698,279 48,698,279 50,490,825 1,792,546
Charges to Appropriation (Outflow):
Housing and redevelopment 423,650 7,758,650 419,870 7,338,780
Capital outlay 300,000 200,000 56,074 143,926
Total Charges to Appropriations 723,650 7,958,650 475,944 7,482,706
Budgetary Fund Balance, June 30 47,974,629$ 40,739,629$ 50,014,881$ 9,275,252$
Year ended June 30, 2023
See Notes to Required Supplementary Information.
99
CITY OF PALM DESERT
Budgetary Comparison Schedule
Housing Authority
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 19,125,056$ 19,125,056$ 19,125,056$ -$
Resources (Inflows):
Rental income 8,028,316 8,028,316 8,737,330 709,014
Investment earnings 20,000 20,000 685,559 665,559
Amounts Available for Appropriations 27,173,372 27,173,372 28,547,945 1,374,573
Charges to Appropriation (Outflow):
Housing and redevelopment #d 9,659,554 11,435,247 8,874,525 2,560,722
Transfers out 446,400 439,500 415,990 23,510
Total Charges to Appropriations 10,105,954 11,874,747 9,290,515 2,584,232
Budgetary Fund Balance, June 30 17,067,418$ 15,298,625$ 19,257,430$ 3,958,805$
Year ended June 30, 2023
See Notes to Required Supplementary Information.
100
CITY OF PALM DESERT
Notes To Required Supplementary Information
June 30, 2023
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 and authority to adjust intra-and outer departmental budgeted line items, as well as
inter-fund transfers, provided such adjustments do not exceed the total approved budget. 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
Assessment 29
University Park
National Opioid Settlement
101
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
102
CITY OF PALM DESERT
Combining Balance Sheet
Other Governmental Funds
Assets:
Pooled cash and investments 51,964,406$ 33,652,432$ 120,692$ 85,737,530$
Receivables:
Accounts 902,488 - - 902,488
Assessments 4,481 - 1,076,523 1,081,004
Loans 1,221,675 - - 1,221,675
Interest 49,251 - - 49,251
Prepaid costs 16,968 17,119 - 34,087
Deposits - 20,000 - 20,000
Due from other governments 1,477,045 - 4,375 1,481,420
Advances to other funds - 3,179,888 - 3,179,888
Inventories 17,570 - - 17,570
Total Assets 55,653,884$ 36,869,439$ 1,201,590$ 93,724,913$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 2,637,568$ 2,585,705$ -$ 5,223,273$
Accrued liabilities 14,520 - - 14,520
Unearned revenues 280,834 251,273 - 532,107
Deposits payable 3,780 - - 3,780
Due to other funds 1,136,962 - - 1,136,962
Advances from other funds 956,000 - - 956,000
Total Liabilities 5,029,664 2,836,978 - 7,866,642
Deferred Inflows or Resources:
Unavailable revenues 329,475 - 1,076,523 1,405,998
Total Deferred Inflows of Resources 329,475 - 1,076,523 1,405,998
Fund Balances:
Nonspendable:
Inventory 17,570 - - 17,570
Prepaid costs and deposits 16,968 17,119 - 34,087
Restricted for:
Public safety 2,058,431 - - 2,058,431
Capital projects - 190,103 - 190,103
Debt service - - 125,067 125,067
Street related purposes 27,850,479 - - 27,850,479
Low income housing 4,510,728 - - 4,510,728
Public facilities 3,978,182 - - 3,978,182
Special programs 8,169,630 1,302,639 - 9,472,269
Committed to:
Aquatic center 1,871,454 - - 1,871,454
Energy loan program 1,821,303 - - 1,821,303
Assigned to:
Capital projects - 14,734,608 - 14,734,608
Property acquisition - 420,387 - 420,387
Public facilities - 14,804,510 - 14,804,510
Special programs - 687,519 - 687,519
Street related purposes - 1,875,576 - 1,875,576
Total Fund Balances 50,294,745 34,032,461 125,067 84,452,273
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 55,653,884$ 36,869,439$ 1,201,590$ 93,724,913$
June 30, 2023
Special
Revenue
Funds
Total Other
Governmental
Funds
Debt Service
Fund
Capital
Projects Funds
103
CITY OF PALM DESERT
Combining Statement of Revenues, Expenditures
And Changes in Fund Balances
Other Governmental Funds
Year Ended June 30, 2023
Revenues:
Taxes 6,796,234$ -$ -$ 6,796,234$
Special assessments collected 1,351,625 - 128,760 1,480,385
Licenses and permits - 571,716 - 571,716
Intergovernmental revenues 3,605,743 32,575 - 3,638,318
Charges for services 1,136,741 2,587,864 - 3,724,605
Investment earnings 1,424,259 1,010,906 2,725 2,437,890
Rental income - 82,981 - 82,981
Fines and forfeitures 7,385 - - 7,385
Miscellaneous 30,027 214,790 - 244,817
Total Revenues 14,352,014 4,500,832 131,485 18,984,331
Expenditures:
Current:
General government 828,827 1,184,038 1,814 2,014,679
Public safety 384,731 - - 384,731
Parks, recreation and culture 2,221,231 9,925,404 - 12,146,635
Public works 6,941,412 642,566 - 7,583,978
Housing and redevelopment 1,016,156 - - 1,016,156
Capital outlay 2,747,563 3,527,619 - 6,275,182
Debt service:
Principal retirement 86,000 - 50,000 136,000
Interest and fiscal charges 75,330 - 54,310 129,640
Total Expenditures 14,301,250 15,279,627 106,124 29,687,001
Excess of Revenues Over (Under) Expenditures 50,764 (10,778,795) 25,361 (10,702,670)
Other Financing Sources (Uses)
Transfers in 2,515,384 15,352,358 - 17,867,742
Transfers out (2,407,925) (70,806) - (2,478,731)
Total Other Financing Sources (Uses)107,459 15,281,552 - 15,389,011
Net Change in Fund Balances 158,223 4,502,757 25,361 4,686,341
Fund Balances, Beginning of Year 50,136,522 29,529,704 99,706 79,765,932
Fund Balances, End of Year 50,294,745$ 34,032,461$ 125,067$ 84,452,273$
Debt
Service
Fund
Total Other
Governmental
Funds
Special
Revenue
Funds
Capital
Projects Funds
104
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than
expendable trust that are legally restricted to expenditures for specific purposes.
Traffic Safety Fund – Traffic and court fines are collected in these funds. A transfer from this Fund to the
General Fund is made at the end of the fiscal year by council action to be applied toward the eligible
expenditures permitted by law.
Gas Tax Fund – Portions of the tax rate per gallon levied by the State of California on all gasoline purchases
are allocated to cities throughout the State. These funds are restricted to expenditure for transit and
street-related purposes.
Measure A – This fund is used to account for the half-cent sales tax approved by the voters of Riverside
County in 1988. Funds are restricted for local street and road expenditures only.
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.
105
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.
Affordable Housing Fund – This fund is used to account for the management and operation of the affordable
housing portfolio.
Permanent Local Housing Allocation Grant Fund – This fund provides a permanent source of funding to
cities and counties to help meet the need for affordable housing and to increase the supply of affordable
housing units.
Opioid Settlement Funds – This fund is used to account for the receipts and expenditures related to the
Nationwide Class Action Opioid Settlement intended to be used to address the nation’s continuing opioid
crisis.
106
CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:
Pooled cash and investments 1,806$ 4,673,470$ 21,719,622$ 3,158,997$
Receivables:
Accounts --- -
Assessments --- -
Loans --- -
Interest --- -
Allowance for interest on Successor Agency --- -
Prepaid costs --- -
Due from other governments 3,904 337,925 1,004,357 -
Inventories --- -
Total Assets 5,710$ 5,011,395$ 22,723,979$ 3,158,997$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable -$187,892$ 844,705$ 3,054$
Accrued liabilities --- -
Unearned revenues --- -
Deposits payable --- -
Due to other funds --- -
Advances from other funds --- -
Total Liabilities - 187,892 844,705 3,054
Deferred Inflows of Resources:
Unavailable revenues --280,889 -
Total Deferred Inflows of Resources --280,889 -
Fund Balances:
Nonspendable:
Inventory --- -
Prepaid costs --- -
Restricted for:
Public safety --- -
Street related purposes 5,710 4,823,503 21,598,385 -
Low income housing --- 3,155,943
Public facilities --- -
Special programs --- -
Committed to:
Aquatic center --- -
Energy loan program --- -
Assigned to:
Community development projects --- -
Total Fund Balances 5,710 4,823,503 21,598,385 3,155,943
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 5,710$ 5,011,395$ 22,723,979$ 3,158,997$
Traffic Safety Gas Tax Measure A
Housing
Mitigation Fee
June 30, 2023
107
CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:
Pooled cash and investments
Receivables:
Accounts
Assessments
Loans
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other governments
Inventories
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Inventory
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
Assigned to:
Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023
(CONTINUED)
7,998$ 769,068$ 207,054$ 1,578,845$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
93,471 - - -
- - - -
101,469$ 769,068$ 207,054$ 1,578,845$
62,307$ -$ 109,800$ -$
- - - -
- - 76,180 -
- - - -
- - - -
- - - -
62,307 - 185,980 -
- - - -
- - - -
- - - -
- - - -
- - 21,074 -
- - - -
- - - -
- 769,068 - 1,578,845
39,162 - - -
- - - -
- - - -
- - - -
39,162 769,068 21,074 1,578,845
101,469$ 769,068$ 207,054$ 1,578,845$
Public Safety
Police Grants
New
Construction
Tax
Community
Development
Block Grant
Child Care
Program
108
CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:
Pooled cash and investments
Receivables:
Accounts
Assessments
Loans
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other governments
Inventories
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Inventory
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
Assigned to:
Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023
897,347$ 1,838,223$ 525,534$ 1,661,964$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
897,347$ 1,838,223$ 525,534$ 1,661,964$
-$ 207,954$ -$ 81,264$
- - - -
- - - -
- - - -
- - - -
- - - -
- 207,954 - 81,264
- - - -
- - - -
- - - -
- - - -
- - - 1,580,700
897,347 - 525,534 -
- - - -
- 1,630,269 - -
- - - -
- - - -
- - - -
- - - -
897,347 1,630,269 525,534 1,580,700
897,347$ 1,838,223$ 525,534$ 1,661,964$
Fire Facilities
Restoration
Planned
Drainage
Parks and
Recreational
Facilities Traffic Signals
109
CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:
Pooled cash and investments
Receivables:
Accounts
Assessments
Loans
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other governments
Inventories
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Inventory
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
Assigned to:
Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023 (CONTINUED)
3,221,737$ 1,552,717$ 41,076$ 2,094,235$
65,691 -- 666,790
-4,481 - -
-1,221,675 - -
-49,251 - -
--- -
1,050 4,000 - 11,918
--16,972 -
--- 17,570
3,288,478$ 2,832,124$ 58,048$ 2,790,513$
30,672$ 2,235$ 25,759$ 889,571$
--- -
103,613 -- -
--- -
--- -
-956,000 - -
134,285 958,235 25,759 889,571
-48,586 - -
-48,586 - -
--- 17,570
1,050 4,000 - 11,918
--- -
--- -
--- -
--- -
3,153,143 -32,289 -
--- 1,871,454
-1,821,303 - -
--- -
3,154,193 1,825,303 32,289 1,900,942
3,288,478$ 2,832,124$ 58,048$ 2,790,513$
Recycling
Energy
Independence
Loan
Air Quality
Management
Aquatic
Center
110
CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:
Pooled cash and investments
Receivables:
Accounts
Assessments
Loans
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other governments
Inventories
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Inventory
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
Assigned to:
Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023
1,433,948$ 81,840$ 5,026,091$ 1,364,171$
160,963 9,044 - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 20,416 -
- - - -
1,594,911$ 90,884$ 5,046,507$ 1,364,171$
-$ 28,669$ 163,686$ -$
- - - 14,520
- - - -
3,780 - - -
1,136,962 - - -
- - - -
1,140,742 28,669 163,686 14,520
- - - -
- - - -
- - - -
- - - -
454,169 - - -
- - - -
- - - 1,349,651
- - - -
- 62,215 4,882,821 -
- - - -
- - - -
- - - -
454,169 62,215 4,882,821 1,349,651
1,594,911$ 90,884$ 5,046,507$ 1,364,171$
El Paseo
Assessment
District
Landscape
and Lighting
District
Nos. 1 - 17
Affordable
Housing
Cannabis
Compliance
111
CITY OF PALM DESERT
Combining Balance Sheet
Other Special Revenue Funds
Assets:
Pooled cash and investments
Receivables:
Accounts
Assessments
Loans
Interest
Allowance for interest on Successor Agency
Prepaid costs
Due from other governments
Inventories
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Advances from other funds
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable:
Inventory
Prepaid costs
Restricted for:
Public safety
Street related purposes
Low income housing
Public facilities
Special programs
Committed to:
Aquatic center
Energy loan program
Assigned to:
Community development projects
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
June 30, 2023
5,134$ 103,529$ 51,964,406$
-- 902,488
-- 4,481
-- 1,221,675
-- 49,251
-- -
-- 16,968
-- 1,477,045
-- 17,570
5,134$ 103,529$ 55,653,884$
-$-$ 2,637,568$
-- 14,520
-101,041 280,834
--3,780
--1,136,962
--956,000
- 101,041 5,029,664
-- 329,475
-- 329,475
-- 17,570
-- 16,968
-2,488 2,058,431
--27,850,479
5,134 - 4,510,728
-- 3,978,182
-- 8,169,630
-- 1,871,454
-- 1,821,303
-- -
5,134 2,488 50,294,745
5,134$ 103,529$ 55,653,884$
Total Other
Special
Revenue
Funds
National
Opioid
Settlement
Permanent
Local Housing
Allocation
Grant
112
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
Revenues:
Taxes -$-$3,562,513$ 55,521$
Special assessments collected ----
Intergovernmental revenues -2,421,662 97,960 -
Charges for services ----
Investment earnings 87 86,076 738,084 126,075
Fines and forfeitures 7,385 ---
Miscellaneous ---30,000
Total Revenues 7,472 2,507,738 4,398,557 211,596
Expenditures:
Current:
General government ----
Public safety ----
Parks, recreation and culture ----
Public works -2,853,403 3,171,819 -
Housing and redevelopment --- 602,802
Capital outlay -- 1,446,804 -
Debt service:
Principal retirement ----
Interest and fiscal charges ----
Total Expenditures -2,853,403 4,618,623 602,802
Excess of Revenues Over
(Under) Expenditures 7,472 (345,665) (220,066) (391,206)
Other Financing Sources (Uses)
Transfers in ----
Transfers out (4,700) ---
Total Other Financing
Sources (Uses) (4,700) ---
Net Change in Fund Balances 2,772 (345,665) (220,066) (391,206)
Fund Balances, Beginning of Year 2,938 5,169,168 21,818,451 3,547,149
Fund Balances, End of Year 5,710$ 4,823,503$ 21,598,385$ 3,155,943$
Traffic Safety Gas Tax Measure A
Housing
Mitigation Fee
113
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
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)
-$ 71,412$ -$ 518,442$
- - - -
352,646 - 382,311 -
- - - -
- 23,793 5,027 52,485
- - - -
- - - -
352,646 95,205 387,338 570,927
186,870 - - -
- - 382,311 -
- - - -
- - - -
- - - -
- - - 444,430
- - - -
- - - -
186,870 - 382,311 444,430
165,776 95,205 5,027 126,497
- - - -
- - - -
- - - -
165,776 95,205 5,027 126,497
(126,614) 673,863 16,047 1,452,348
39,162$ 769,068$ 21,074$ 1,578,845$
Public Safety
Police Grants
New
Construction
Tax
Community
Development
Block Grant
Child Care
Program
114
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
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
132,022$ 70,597$ 70,931$ 297,648$
----
----
----
27,188 59,795 15,853 49,188
----
----
159,210 130,392 86,784 346,836
----
2,400 ---
----
----
----
-208,754 - 134,222
----
----
2,400 208,754 -134,222
156,810 (78,362) 86,784 212,614
----
----
----
156,810 (78,362) 86,784 212,614
740,537 1,708,631 438,750 1,368,086
897,347$ 1,630,269$ 525,534$ 1,580,700$
Planned
Drainage
Parks and
Recreational
Facilities Traffic Signals
Fire Facilities
Restoration
115
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
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)
-$ -$ -$ -$
- 71,522 - -
- - 84,901 -
412,066 - - 724,675
103,946 28,740 1,302 17,600
- - - -
27 - - -
516,039 100,262 86,203 742,275
289,792 5,315 64,689 -
- - - -
- - - 2,221,231
- - - -
- - - -
- - 4,061 506,656
- 86,000 - -
- 75,330 - -
289,792 166,645 68,750 2,727,887
226,247 (66,383) 17,453 (1,985,612)
- - - 1,890,294
- - - -
- - - 1,890,294
226,247 (66,383) 17,453 (95,318)
2,927,946 1,891,686 14,836 1,996,260
3,154,193$ 1,825,303$ 32,289$ 1,900,942$
Air Quality
Management
Aquatic
Center Recycling
Energy
Independence
Loan
116
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
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
2,017,148$ -$ -$ -$
- 271,431 1,008,672 -
- - - -
- - - -
- 1,460 79,938 -
- - - -
- - - -
2,017,148 272,891 1,088,610 -
- 282,161 - -
20 - - -
- - - -
- - 916,190 -
- - - 413,354
- - - 2,636
- - - -
- - - -
20 282,161 916,190 415,990
2,017,128 (9,270) 172,420 (415,990)
- - 209,100 415,990
(2,136,962) - - -
(2,136,962) - 209,100 415,990
(119,834) (9,270) 381,520 -
574,003 71,485 4,501,301 1,349,651
454,169$ 62,215$ 4,882,821$ 1,349,651$
Cannabis
Compliance
El Paseo
Assessment
District
Landscape
and Lighting
District
Nos. 1 - 17
Affordable
Housing
117
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Special Revenue Funds
Year Ended June 30, 2023
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
-$ -$ 6,796,234$
- - 1,351,625
266,263 - 3,605,743
- - 1,136,741
5,134 2,488 1,424,259
- - 7,385
- - 30,027
271,397 2,488 14,352,014
- - 828,827
- - 384,731
- - 2,221,231
- - 6,941,412
- - 1,016,156
- - 2,747,563
- - 86,000
- - 75,330
- - 14,301,250
271,397 2,488 50,764
- - 2,515,384
(266,263) - (2,407,925)
(266,263) - 107,459
5,134 2,488 158,223
- - 50,136,522
5,134$ 2,488$ 50,294,745$
Total Other
Special
Revenue
Funds
National
Opioid
Settlement
Permanent
Local Housing
Allocation
Grant
118
CITY OF PALM DESERT
Budgetary Comparison Schedule
Traffic Safety
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,938$ 2,938$ 2,938$ -$
Resources (Inflows):
Investment earnings --87 87
Fines and forfeitures 4,700 4,700 7,385 2,685
Amounts Available for Appropriations 7,638 7,638 10,410 2,772
Charges to Appropriation (Outflow):
Transfers out 4,700 4,700 4,700 -
Total Charges to Appropriations 4,700 4,700 4,700 -
Budgetary Fund Balance, June 30 2,938$ 2,938$ 5,710$ 2,772$
119
CITY OF PALM DESERT
Budgetary Comparison Schedule
Gas Tax
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,169,168$ 5,169,168$ 5,169,168$ -$
Resources (Inflows):
Intergovernmental 2,802,451 2,802,451 2,421,662 (380,789)
Investment earnings 13,000 13,000 86,076 73,076
Amounts Available for Appropriations 7,984,619 7,984,619 7,676,906 (307,713)
Charges to Appropriation (Outflow):
Public works 4,700,000 7,353,968 2,853,403 4,500,565
Total Charges to Appropriations 4,700,000 7,353,968 2,853,403 4,500,565
Budgetary Fund Balance, June 30 3,284,619$ 630,651$ 4,823,503$ 4,192,852$
120
CITY OF PALM DESERT
Budgetary Comparison Schedule
Measure A
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 21,818,451$ 21,818,451$ 21,818,451$ -$
Resources (Inflows):
Taxes 3,199,000 3,199,000 3,562,513 363,513
Intergovernmental 1,663,000 1,663,000 97,960 (1,565,040)
Investment earnings 100,000 100,000 738,084 638,084
Amounts Available for Appropriations 26,780,451 26,780,451 26,217,008 (563,443)
Charges to Appropriation (Outflow):
Public works 300,000 4,521,524 3,171,819 1,349,705
Capital outlay 7,878,000 10,666,684 1,446,804 9,219,880
Total Charges to Appropriations 8,178,000 15,188,207 4,618,623 10,569,584
Budgetary Fund Balance, June 30 18,602,451$ 11,592,244$ 21,598,385$ 10,006,141$
Year ended June 30, 2023
121
CITY OF PALM DESERT
Budgetary Comparison Schedule
Housing Mitigation Fee
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,547,149$ 3,547,149$ 3,547,149$ -$
Resources (Inflows):
Taxes 64,000 64,000 55,521 (8,479)
Investment earnings 8,000 8,000 126,075 118,075
Miscellaneous --30,000 30,000
Amounts Available for Appropriations 3,619,149 3,619,149 3,758,745 139,596
Charges to Appropriation (Outflow):
Housing and redevelopment 404,500 404,500 602,802 (198,302)
Total Charges to Appropriations 404,500 404,500 602,802 (198,302)
Budgetary Fund Balance, June 30 3,214,649$ 3,214,649$ 3,155,943$ (58,706)$
122
CITY OF PALM DESERT
Budgetary Comparison Schedule
Community Development Block Grant
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (126,614)$ (126,614)$ (126,614)$ -$
Resources (Inflows):
Intergovernmental 418,663 418,663 352,646 (66,017)
Investment earnings 100 100 - (100)
Amounts Available for Appropriations 292,149 292,149 226,032 (66,117)
Charges to Appropriation (Outflow):
General government 418,663 822,853 186,870 635,983
Total Charges to Appropriations 418,663 822,853 186,870 635,983
Budgetary Fund Balance, June 30 (126,514)$ (530,704)$ 39,162$ 569,866$
123
CITY OF PALM DESERT
Budgetary Comparison Schedule
Child Care Program
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 673,863$ 673,863$ 673,863$ -$
Resources (Inflows):
Taxes 90,000 90,000 71,412 (18,588)
Investment earnings 4,000 4,000 23,793 19,793
Amounts Available for Appropriations 767,863 767,863 769,068 1,205
Charges to Appropriation (Outflow):
Capital outlay - 684,000 - 684,000
Total Charges to Appropriations - 684,000 - 684,000
Budgetary Fund Balance, June 30 767,863$ 83,863$ 769,068$ 685,205$
124
CITY OF PALM DESERT
Budgetary Comparison Schedule
Public Safety Police Grants
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 16,047$ 16,047$ 16,047$ -$
Resources (Inflows):
Intergovernmental 200,000 200,000 382,311 182,311
Investment earnings 500 500 5,027 4,527
Amounts Available for Appropriations 216,547 216,547 403,385 186,838
Charges to Appropriation (Outflow):
Public safety 200,000 200,000 382,311 (182,311)
Total Charges to Appropriations 200,000 200,000 382,311 (182,311)
Budgetary Fund Balance, June 30 16,547$ 16,547$ 21,074$ 4,527$
125
CITY OF PALM DESERT
Budgetary Comparison Schedule
New Construction Tax
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,452,348$ 1,452,348$ 1,452,348$ -$
Resources (Inflows):
Taxes 414,200 414,200 518,442 104,242
Intergovernmental 3,724,907 3,724,907 - (3,724,907)
Investment earnings 8,000 8,000 52,485 44,485
Amounts Available for Appropriations 5,599,455 5,599,455 2,023,275 (3,576,180)
Charges to Appropriation (Outflow):
Capital outlay 1,500,000 4,212,082 444,430 3,767,652
Total Charges to Appropriations 1,500,000 4,212,082 444,430 3,767,652
Budgetary Fund Balance, June 30 4,099,455$ 1,387,373$ 1,578,845$ 191,472$
126
CITY OF PALM DESERT
Budgetary Comparison Schedule
Planned Drainage
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 740,537$ 740,537$ 740,537$ -$
Resources (Inflows):
Taxes 70,000 70,000 132,022 62,022
Investment earnings 2,500 2,500 27,188 24,688
Amounts Available for Appropriations 813,037 813,037 899,747 86,710
Charges to Appropriation (Outflow):
Public safety 239,262 239,262 2,400 236,862
Total Charges to Appropriations 239,262 239,262 2,400 236,862
Budgetary Fund Balance, June 30 573,775$ 573,775$ 897,347$ 323,572$
127
CITY OF PALM DESERT
Budgetary Comparison Schedule
Parks and Recreational Facilities
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,708,631$ 1,708,631$ 1,708,631$ -$
Resources (Inflows):
Taxes 175,000 175,000 70,597 (104,403)
Investment earnings 3,000 3,000 59,795 56,795
Amounts Available for Appropriations 1,886,631 1,886,631 1,839,023 (47,608)
Charges to Appropriation (Outflow):
Capital outlay - 1,258,400 208,754 1,049,646
Total Charges to Appropriations - 1,258,400 208,754 1,049,646
Budgetary Fund Balance, June 30 1,886,631$ 628,231$ 1,630,269$ 1,002,038$
128
CITY OF PALM DESERT
Budgetary Comparison Schedule
Traffic Signals
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 438,750$ 438,750$ 438,750$ -$
Resources (Inflows):
Taxes 20,000 20,000 70,931 50,931
Investment earnings 500 500 15,853 15,353
Amounts Available for Appropriations 459,250 459,250 525,534 66,284
Charges to Appropriation (Outflow):
Capital outlay - 225,000 - 225,000
Total Charges to Appropriations - 225,000 - 225,000
Budgetary Fund Balance, June 30 459,250$ 234,250$ 525,534$ 291,284$
129
CITY OF PALM DESERT
Budgetary Comparison Schedule
Fire Facilities Restoration
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,368,086$ 1,368,086$ 1,368,086$ -$
Resources (Inflows):
Taxes 116,100 116,100 297,648 181,548
Investment earnings 7,000 7,000 49,188 42,188
Amounts Available for Appropriations 1,491,186 1,491,186 1,714,922 223,736
Charges to Appropriation (Outflow):
Capital outlay - 1,223,471 134,222 1,089,249
Total Charges to Appropriations - 1,223,471 134,222 1,089,249
Budgetary Fund Balance, June 30 1,491,186$ 267,715$ 1,580,700$ 1,312,985$
130
CITY OF PALM DESERT
Budgetary Comparison Schedule
Recycling
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,927,946$ 2,927,946$ 2,927,946$ -$
Resources (Inflows):
Intergovernmental 50,000 50,000 - (50,000)
Charges for services 430,000 430,000 412,066 (17,934)
Investment earnings 15,000 15,000 103,946 88,946
Miscellaneous - - 27 27
Amounts Available for Appropriations 3,422,946 3,422,946 3,443,985 21,039
Charges to Appropriation (Outflow):
General government 633,000 699,050 289,792 409,258
Total Charges to Appropriations 633,000 699,050 289,792 409,258
Budgetary Fund Balance, June 30 2,789,946$ 2,723,896$ 3,154,193$ 430,297$
131
CITY OF PALM DESERT
Budgetary Comparison Schedule
Energy Independence Loan
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,891,686$ 1,891,686$ 1,891,686$ -$
Resources (Inflows):
Assessments 300,000 300,000 71,522 (228,478)
Investment earnings 5,000 5,000 28,740 23,740
Amounts Available for Appropriations 2,196,686 2,196,686 1,991,948 (204,738)
Charges to Appropriation (Outflow):
General government 15,000 15,000 5,315 9,685
Debt service:
Principal retirement 130,000 130,000 86,000 44,000
Interest and fiscal charges 83,480 83,480 75,330 8,150
Total Charges to Appropriations 228,480 228,480 166,645 61,835
Budgetary Fund Balance, June 30 1,968,206$ 1,968,206$ 1,825,303$ (142,903)$
132
CITY OF PALM DESERT
Budgetary Comparison Schedule
Air Quality Management
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 14,836$ 14,836$ 14,836$ -$
Resources (Inflows):
Intergovernmental 73,400 73,400 84,901 11,501
Investment earnings 50 50 1,302 1,252
Amounts Available for Appropriations 88,286 88,286 101,039 12,753
Charges to Appropriation (Outflow):
General government 63,100 63,100 64,689 (1,589)
Capital outlay - - 4,061 (4,061)
Total Charges to Appropriations 63,100 63,100 68,750 (5,650)
Budgetary Fund Balance, June 30 25,186$ 25,186$ 32,289$ 7,103$
133
CITY OF PALM DESERT
Budgetary Comparison Schedule
Aquatic Center
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,996,260$ 1,996,260$ 1,996,260$ -$
Resources (Inflows):
Charges for services 811,786 811,786 724,675 (87,111)
Investment earnings 3,000 3,000 17,600 14,600
Transfers in 1,805,294 1,920,294 1,890,294 (30,000)
Amounts Available for Appropriations 4,616,340 4,731,340 4,628,829 (102,511)
Charges to Appropriation (Outflow):
Parks, recreation and culture 2,349,080 2,349,080 2,221,231 127,849
Capital outlay 271,000 543,517 506,656 36,861
Total Charges to Appropriations 2,620,080 2,892,597 2,727,887 164,710
Budgetary Fund Balance, June 30 1,996,260$ 1,838,743$ 1,900,942$ 62,199$
134
CITY OF PALM DESERT
Budgetary Comparison Schedule
Cannabis Compliance
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 574,003$ 574,003$ 574,003$ -$
Resources (Inflows):
Taxes 3,190,000 2,395,000 2,017,148 (377,852)
Amounts Available for Appropriations 3,764,003 2,969,003 2,591,151 (377,852)
Charges to Appropriation (Outflow):
Public safety - - 20 (20)
Transfers out 3,180,000 3,180,000 2,136,962 1,043,038
Total Charges to Appropriations 3,180,000 3,180,000 2,136,982 1,043,018
Budgetary Fund Balance, June 30 584,003$ (210,997)$ 454,169$ 665,166$
135
CITY OF PALM DESERT
Budgetary Comparison Schedule
El Paseo Assessment District
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 71,485$ 71,485$ 71,485$ -$
Resources (Inflows):
Special assessments collected 250,000 250,000 271,431 21,431
Investment earnings --1,460 1,460
Amounts Available for Appropriations 321,485 321,485 344,376 22,891
Charges to Appropriation (Outflow):
General government 250,000 291,000 282,161 8,839
Total Charges to Appropriations 250,000 291,000 282,161 8,839
Budgetary Fund Balance, June 30 71,485$ 30,485$ 62,215$ 31,730$
136
CITY OF PALM DESERT
Budgetary Comparison Schedule
Landscape and Lighting Districts Nos. 1 - 17
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,501,301$ 4,501,301$ 4,501,301$ -$
Resources (Inflows):
Special assessments collected 1,035,784 1,035,784 1,008,672 (27,112)
Investment earnings 10,000 10,000 79,938 69,938
Transfers in 135,000 209,100 209,100 -
Amounts Available for Appropriations 5,682,085 5,756,185 5,799,011 42,826
Charges to Appropriation (Outflow):
Public works 1,791,480 1,802,000 916,190 885,810
Total Charges to Appropriations 1,791,480 1,802,000 916,190 885,810
Budgetary Fund Balance, June 30 3,890,605$ 3,954,185$ 4,882,821$ 928,636$
137
CITY OF PALM DESERT
Budgetary Comparison Schedule
Affordable Housing Fund
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,349,651$ 1,349,651$ 1,349,651$ -$
Resources (Inflows):
Transfers in 446,400 439,500 415,990 (23,510)
Amounts Available for Appropriations 1,796,051 1,789,151 1,765,641 (23,510)
Charges to Appropriation (Outflow):
Housing and redevelopment 445,400 436,500 413,354 23,146
Capital outlay 1,000 3,000 2,636 364
Total Charges to Appropriations 446,400 439,500 415,990 23,510
Budgetary Fund Balance, June 30 1,349,651$ 1,349,651$ 1,349,651$ -$
138
CITY OF PALM DESERT
Budgetary Comparison Schedule
Permanent Local Housing Allocation Grant
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 -$-$-$ -$
Resources (Inflows):
Intergovernmental -- 266,263 266,263
Use of money and property --5,134 5,134
Amounts Available for Appropriation -- 271,397 271,397
Charges to Appropriation (Outflow):
Transfers out -266,263 266,263 -
Total Charges to Appropriations -266,263 266,263 -
Budgetary Fund Balance, June 30 -$(266,263)$ 5,134$ 271,397$
139
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
140
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
University Park
141
CITY OF PALM DESERT
Combining Balance Sheet
Other Capital Projects Funds
Assets:
Pooled cash and investments 14,157,687$ 1,807,607$ 1,438,911$ 10,047$
Receivables:
Interest ----
Prepaid costs --17,119 -
Deposits --20,000 -
Advances to other funds ----
Total Assets 14,157,687$ 1,807,607$ 1,476,030$ 10,047$
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable 662,673$ 43,436$ 3,435$ -$
Unearned revenues 251,273 ---
Total Liabilities 913,946 43,436 3,435 -
Fund Balances:
Nonspendable:
Prepaid costs and deposits --17,119 -
Restricted for:
Capital projects ----
Special programs ----
Assigned to:
Capital projects 12,823,354 ---
Property acquisition 420,387 ---
Public facilities -- 1,455,476 10,047
Special programs ----
Street related purposes -1,764,171 --
Total Fund Balances 13,243,741 1,764,171 1,472,595 10,047
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 14,157,687$ 1,807,607$ 1,476,030$ 10,047$
June 30, 2023
Parks and
Recreational
Facilities
Capital
Projects
Reserve
Drainage
Facilities
Economic
Development
142
CITY OF PALM DESERT
Combining Balance Sheet
Other Capital Projects Funds
Assets:
Pooled cash and investments
Receivables:
Interest
Prepaid costs
Deposits
Advances to other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs and deposits
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
June 30, 2023
(CONTINUED)
1,418,070$ 111,405$ 10,480,088$ 3,350,995$
- - - -
- - - -
- - - -
- - 3,179,888 -
1,418,070$ 111,405$ 13,659,976$ 3,350,995$
115,431$ -$ 320,989$ 1,439,741$
- - - -
115,431 - 320,989 1,439,741
- - - -
- - - -
1,302,639 - - -
- - - 1,911,254
- - - -
- - 13,338,987 -
- - - -
- 111,405 - -
1,302,639 111,405 13,338,987 1,911,254
1,418,070$ 111,405$ 13,659,976$ 3,350,995$
Art in Public
Places Signalization Capital Golf Buildings
143
CITY OF PALM DESERT
Combining Balance Sheet
Other Capital Projects Funds
Assets:
Pooled cash and investments
Receivables:
Interest
Prepaid costs
Deposits
Advances to other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs and deposits
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
June 30, 2023
687,519$ 188,794$ 618$ 21$
- - - -
- - - -
- - - -
- - - -
687,519$ 188,794$ 618$ 21$
-$ -$ -$ -$
- - - -
- - - -
- - - -
- 188,794 618 21
- - - -
- - - -
- - - -
- - - -
687,519 - - -
- - - -
687,519 188,794 618 21
687,519$ 188,794$ 618$ 21$
Silver Spur
Ranch
Highlands
Undergrounding Library
Assessment
District
No. 94-3
Merano
144
CITY OF PALM DESERT
Combining Balance Sheet
Other Capital Projects Funds
Assets:
Pooled cash and investments
Receivables:
Interest
Prepaid costs
Deposits
Advances to other funds
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Accounts payable
Unearned revenues
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs and deposits
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
June 30, 2023
670$ 33,652,432$
- -
- 17,119
- 20,000
- 3,179,888
670$ 36,869,439$
-$ 2,585,705$
- 251,273
- 2,836,978
- 17,119
670 190,103
- 1,302,639
- 14,734,608
- 420,387
- 14,804,510
- 687,519
- 1,875,576
670 34,032,461
670$ 36,869,439$
Total Other
Capital
Projects Funds
Assessment
District 29
145
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Capital Projects Funds
Year Ended June 30, 2023
Revenues:
Licenses and permits -$-$-$ -$
Intergovernmental revenues --32,575 -
Charges for services --- -
Investment earnings 306,876 66,253 56,065 351
Rental income --82,981 -
Miscellaneous 50,000 -- -
Total Revenues 356,876 66,253 171,621 351
Expenditures:
Current:
General government 400,000 -487,069 -
Parks, recreation and culture 8,911,852 ---
Public works 336,423 306,143 - -
Capital outlay 1,395,245 -- -
Total Expenditures 11,043,520 306,143 487,069 -
Excess of Revenues Over
(Under) Expenditures (10,686,644) (239,890) (315,448) 351
Other Financing Sources (Uses)
Transfers in 14,184,017 -- -
Transfers out - - - -
Total Other Financing
Sources (Uses)14,184,017 - - -
Net Change in Fund Balances 3,497,373 (239,890) (315,448) 351
Fund Balances, Beginning of Year 9,746,368 2,004,061 1,788,043 9,696
Fund Balances, End of Year 13,243,741$ 1,764,171$ 1,472,595$ 10,047$
Capital
Projects
Reserve
Drainage
Facilities
Economic
Development
Parks and
Recreational
Facilities
146
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Capital Projects Funds
Year Ended June 30, 2023
Revenues:
Licenses and permits
Intergovernmental revenues
Charges for services
Investment earnings
Rental income
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
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)
571,716$ -$ -$ -$
- - - -
- - 2,587,864 -
48,669 3,720 416,972 89,036
- - - -
164,790 - - -
785,175 3,720 3,004,836 89,036
- - - 296,969
123,717 - 889,835 -
- - - -
532,954 - - 1,599,420
656,671 - 889,835 1,896,389
128,504 3,720 2,115,001 (1,807,353)
- - - 1,168,341
(70,806) - - -
(70,806) - - 1,168,341
57,698 3,720 2,115,001 (639,012)
1,244,941 107,685 11,223,986 2,550,266
1,302,639$ 111,405$ 13,338,987$ 1,911,254$
Art in Public
Places Signalization Capital Golf Buildings
147
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Capital Projects Funds
Year Ended June 30, 2023
Revenues:
Licenses and permits
Intergovernmental revenues
Charges for services
Investment earnings
Rental income
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
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
-$ -$ -$ -$
- - - -
- - - -
22,964 - - -
- - - -
- - - -
22,964 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
22,964 - - -
- - - -
- - - -
- - - -
22,964 - - -
664,555 188,794 618 21
687,519$ 188,794$ 618$ 21$
Library
Assessment
District No. 94-
3 Merano
Silver Spur
Ranch
Highlands
Undergrounding
148
CITY OF PALM DESERT
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Capital Projects Funds
Year Ended June 30, 2023
Revenues:
Licenses and permits
Intergovernmental revenues
Charges for services
Investment earnings
Rental income
Miscellaneous
Total Revenues
Expenditures:
Current:
General government
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
-$ 571,716$
- 32,575
- 2,587,864
- 1,010,906
- 82,981
- 214,790
- 4,500,832
- 1,184,038
- 9,925,404
- 642,566
- 3,527,619
- 15,279,627
- (10,778,795)
- 15,352,358
- (70,806)
- 15,281,552
- 4,502,757
670 29,529,704
670$ 34,032,461$
Assessment
District 29
Total Other
Capital
Projects Fund
149
CITY OF PALM DESERT
Budgetary Comparison Schedule
Capital Properties
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 48,192,389$ 48,192,389$ 48,192,389$ -$
Resources (Inflows):
Investment earnings 40,000 40,000 2,203,742 2,163,742
Transfers in - 1,800,000 1,800,000 -
Amounts Available for Appropriations 48,232,389 50,032,389 52,196,131 2,163,742
Charges to Appropriation (Outflow):
General government - - 1,540 (1,540)
Parks and recreation 100,000 650,000 - 650,000
Public works - 1,962,058 824,708 1,137,350
Capital outlay - 22,995,454 158,993 22,836,461
Total Charges to Appropriations 100,000 25,607,512 985,241 24,622,271
Budgetary Fund Balance, June 30 48,132,389$ 24,424,877$ 51,210,890$ 26,786,013$
150
CITY OF PALM DESERT
Budgetary Comparison Schedule
Capital Projects Reserve
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 9,746,368$ 9,746,368$ 9,746,368$ -$
Resources (Inflows):
Investment earnings 10,000 10,000 306,876 296,876
Miscellaneous -262,321 50,000 (212,321)
Transfers in 400,000 14,154,017 14,184,017 30,000
Amounts Available for Appropriations 10,156,368 24,172,706 24,287,261 114,555
Charges to Appropriation (Outflow):
General government 400,000 400,000 400,000 -
Parks, recreation and culture 173,800 13,136,121 8,911,852 4,224,269
Public works -341,696 336,423 5,273
Capital outlay 250,000 1,657,311 1,395,245 262,066
Total Charges to Appropriations 823,800 15,535,128 11,043,520 4,491,608
Budgetary Fund Balance, June 30 9,332,568$ 8,637,578$ 13,243,741$ 4,606,163$
151
CITY OF PALM DESERT
Budgetary Comparison Schedule
Drainage Facilities
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,004,061$ 2,004,061$ 2,004,061$ -$
Resources (Inflows):
Investment earnings 20,000 20,000 66,253 46,253
Amounts Available for Appropriations 2,024,061 2,024,061 2,070,314 46,253
Charges to Appropriation (Outflow):
Public works 1,105,000 2,099,016 306,143 1,792,873
Total Charges to Appropriations 1,105,000 2,099,016 306,143 1,792,873
Budgetary Fund Balance, June 30 919,061$ (74,955)$ 1,764,171$ 1,839,126$
152
CITY OF PALM DESERT
Budgetary Comparison Schedule
Economic Development
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,788,043$ 1,788,043$ 1,788,043$ -$
Resources (Inflows):
Rental income 64,543 64,543 82,981 18,438
Intergovernmental 35,000 35,000 32,575 (2,425)
Investment earnings 10,000 10,000 56,065 46,065
Amounts Available for Appropriations 1,897,586 1,897,586 1,959,664 62,078
Charges to Appropriation (Outflow):
General government 474,442 1,210,624 487,069 723,555
Total Charges to Appropriations 474,442 1,210,624 487,069 723,555
Budgetary Fund Balance, June 30 1,423,144$ 686,962$ 1,472,595$ 785,633$
153
CITY OF PALM DESERT
Budgetary Comparison Schedule
Parks and Recreational Facilities
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 9,696$ 9,696$ 9,696$ -$
Resources (Inflows):
Investment earnings 100 100 351 251
Amounts Available for Appropriations 9,796 9,796 10,047 251
Budgetary Fund Balance, June 30 9,796$ 9,796$ 10,047$ 251$
154
CITY OF PALM DESERT
Budgetary Comparison Schedule
Art in Public Places
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,244,941$ 1,244,941$ 1,244,941$ -$
Resources (Inflows):
Licenses and permits 328,275 328,275 571,716 243,441
Investment earnings 400 400 48,669 48,269
Miscellaneous 164,790 164,790 164,790 -
Amounts Available for Appropriations 1,738,406 1,738,406 2,030,116 291,710
Charges to Appropriation (Outflow):
Parks, recreation and culture 196,520 196,520 123,717 72,803
Capital outlay 593,390 915,390 532,954 382,436
Transfers out 120,000 120,000 70,806 49,194
Total Charges to Appropriations 909,910 1,231,910 727,477 504,433
Budgetary Fund Balance, June 30 828,496$ 506,496$ 1,302,639$ 796,143$
155
CITY OF PALM DESERT
Budgetary Comparison Schedule
Signalization
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 107,685$ 107,685$ 107,685$ -$
Resources (Inflows):
Investment earnings 300 300 3,720 3,420
Amounts Available for Appropriations 107,985 107,985 111,405 3,420
Budgetary Fund Balance, June 30 107,985$ 107,985$ 111,405$ 3,420$
156
CITY OF PALM DESERT
Budgetary Comparison Schedule
Capital Golf
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 11,223,986$ 11,223,986$ 11,223,986$ -$
Resources (Inflows):
Charges for services 2,587,864 2,587,864 2,587,864 -
Investment earnings 30,000 30,000 416,972 386,972
Amounts Available for Appropriations 13,841,850 13,841,850 14,228,822 386,972
Charges to Appropriation (Outflow):
Parks, recreation and culture 891,500 4,649,681 889,835 3,759,846
Total Charges to Appropriations 891,500 4,649,681 889,835 3,759,846
Budgetary Fund Balance, June 30 12,950,350$ 9,192,169$ 13,338,987$ 4,146,818$
157
CITY OF PALM DESERT
Budgetary Comparison Schedule
Buildings
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,550,266$ 2,550,266$ 2,550,266$ -$
Resources (Inflows):
Investment earnings 5,000 5,000 89,036 84,036
Transfers in - 1,168,341 1,168,341 -
Amounts Available for Appropriations 2,555,266 3,723,607 3,807,643 84,036
Charges to Appropriation (Outflow):
General government - 150,792 296,969 (146,177)
Capital outlay 935,000 3,313,471 1,599,420 1,714,051
Total Charges to Appropriations 935,000 3,464,263 1,896,389 1,567,874
Budgetary Fund Balance, June 30 1,620,266$ 259,344$ 1,911,254$ 1,651,910$
158
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.
159
CITY OF PALM DESERT
Balance Sheet
Other Debt Service Fund
Assets:
Pooled cash and investments 120,692$
Receivables:
Assessments 1,076,523
Due from other governments 4,375
Total Assets 1,201,590$
Deferred Inflows of Resources:
Unavailable revenues 1,076,523$
Total Deferred Inflows of Resources 1,076,523
Fund Balances:
Restricted for:
Debt service 125,067
Total Fund Balances 125,067
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 1,201,590$
City Highland
Undergrounding
June 30, 2023
160
CITY OF PALM DESERT
Statement of Revenues,
Expenditures and Changes in Fund Balances
Other Debt Service Fund
Year Ended June 30, 2023
Revenues:
Special assessments collected 128,760$
Investment earnings 2,725
Total Revenues 131,485
Expenditures:
Current:
General government 1,814
Debt service:
Principal retirement 50,000
Interest and fiscal charges 54,310
Total Expenditures 106,124
Excess of Revenues Over
(Under) Expenditures 25,361
Net Changes in Fund Balances 25,361
Fund Balances, Beginning of Year 99,706
Fund Balances, End of Year 125,067$
City
Highlands
Undergrounding
161
CITY OF PALM DESERT
Budgetary Comparison Schedule
City Highland Undergrounding
Year Ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 99,706$ 99,706$ 99,706$ -$
Resources (Inflows):
Special assessments collected 120,391 120,391 128,760 8,369
Investment earnings 100 100 2,725 2,625
Amounts Available for Appropriations 220,197 220,197 231,191 10,994
Charges to Appropriation (Outflow):
General government 16,684 16,684 1,814 14,870
Debt service:
Principal retirement 50,000 50,000 50,000 -
Interest and fiscal charges 54,310 54,310 54,310 -
Total Charges to Appropriations 120,994 120,994 106,124 14,870
Budgetary Fund Balance, June 30 99,203$ 99,203$ 125,067$ 25,864$
162
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.
163
CITY OF PALM DESERT
Combining Statement of Net Position
Internal Service Funds
Total
Assets:
Current Assets
Cash and investments 6,824,115$ 2,328,629$ 9,152,744$
Prepaid costs 1,996 - 1,996
Total Current Assets 6,826,111 2,328,629 9,154,740
Capital Assets
Nondepreciable 11,821 - 11,821
Depreciable, net 2,597,637 - 2,597,637
Capital Assets, Net 2,609,458 - 2,609,458
Total Assets 9,435,569 2,328,629 11,764,198
Liabilities:
Current Liabilities
Compensated absences - 500,000 500,000
Total Current Liabilities - 500,000 500,000
Noncurrent Liabilities:
Compensated absences - 2,101,028 2,101,028
Total Noncurrent Liabilities - 2,101,028 2,101,028
Total Liabilities - 2,601,028 2,601,028
Net Position:
Invested in capital assets 2,609,458 - 2,609,458
Unrestricted 6,826,111 (272,399) 6,553,712
Total Net Position 9,435,569$ (272,399)$ 9,163,170$
June 30, 2023
Equipment
Replacement
Compensation
Benefits
164
CITY OF PALM DESERT
Combining Statement of Revenues, Expenses
and Changes in Fund Net Position
Internal Service Funds
Total
Operating Expenses:
General and administrative -$ 425,084$ 425,084$
Maintenance and operations 394,955 - 394,955
Depreciation and amortization 751,260 - 751,260
Total Operating Expenses 1,146,215 425,084 1,571,299
Operating Loss (1,146,215) (425,084) (1,571,299)
Nonoperating Revenues (Expenses)
Interest income 209,556 76,734 286,290
Gain on disposal of capital assets 78,803 - 78,803
Total Nonoperating Revenues (Expenses) 288,359 76,734 365,093
Income (Loss) Before Capital Contributions & Transfers (857,856) (348,350) (1,206,206)
Transfers In 860,000 101,289 961,289
Change in Net Position 2,144 (247,061) (244,917)
Net Position, Beginning of Year 9,433,425 (25,338) 9,408,087
Net Position, End of Year 9,435,569$ (272,399)$ 9,163,170$
Year Ended June 30, 2023
Equipment
Replacement
Compensation
Benefits
165
CITY OF PALM DESERT
Combining Statement of Cash Flows
Internal Service Funds
Total
Cash Flows from Operating Activities:
Payments to suppliers (401,470)$ -$ (401,470)$
Cash paid to employees for services - (113,394) (113,394)
Net Cash Used by Operating Activities (401,470) (113,394) (514,864)
Cash Flows from Noncapital and
Related Financing Activities:
Cash received from other funds 860,000 101,289 961,289
Net Cash Provided by Noncapital and
Related Financing Activities 860,000 101,289 961,289
Cash Flows from Capital and
Related Financing Activities:
Purchases of capital assets (90,621) - (90,621)
Proceeds from sale of capital assets 86,265 - 86,265
Net Cash Used by Capital and
Related Financing Activities (4,356) - (4,356)
Cash Flows from Investing Activities:
Interest and dividends 209,556 76,734 286,290
Net Cash Provided by Investing Activities 209,556 76,734 286,290
Net Decrease
Cash and Cash Equivalents 663,730 64,629 728,359
Cash and Cash Equivalents, Beginning of Year 6,160,385 2,264,000 8,424,385
Cash and Cash Equivalents, End of Year 6,824,115$ 2,328,629$ 9,152,744$
Reconciliation of Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:
Operating Income (Loss)(1,146,215)$ (425,084)$ (1,571,299)$
Adjustments to Reconcile Operating Loss to Net
Cash Provided (used) by Operating Activities:
Depreciation and amortization 751,260 - 751,260
(Increase) decrease in prepaid expense 4,150 - 4,150
Increase (decrease) in accounts payable (10,665) - (10,665)
Increase (decrease) in compensated absences - 311,690 311,690
Total Adjustments 744,745 311,690 1,056,435
Net Cash Used by Operating Activities (401,470)$ (113,394)$ (514,864)$
Year Ended June 30, 2023
Equipment
Replacement
Compensation
Benefits
166
CUSTODIAL FUNDS
Custodial Funds are used to account for assets held by the city as an custodian for individuals, private
organizations, other governments and/or funds.
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.
167
CITY OF PALM DESERT
All Custodial Funds
Totals
Assets:
Pooled cash and investments 2,956,059$ 4,664,107$ 7,620,166$
Receivables:
Assessments - 35,481,134 35,481,134
Accrued interest -699 699
Due from other governments -24,995 24,995
Restricted assets:
Cash and investments with fiscal agents - 2,948,748 2,948,748
Total Assets 2,956,059 43,119,683 46,075,742
Liabilities:
Deposits payable - 35,481,134 35,481,134
Due to bondholders - 7,638,549 7,638,549
Total Liabilities - 43,119,683 43,119,683
Net Position:
Restricted for other purposes 2,956,059 - 2,956,059
Total Net Position 2,956,059$ -$2,956,059$
Combining Statement of Net Position
Retiree Service
Stipend Fund
Special
Assessment
Funds
June 30, 2023
168
CITY OF PALM DESERT
Combining Statement of Changes in Fiduciary Net Position
All Custodial Funds
Year Ended June 30, 2023
Additions:
Intergovernmental -$ 3,054,242$ 3,054,242$
Investment income 72,709 128,974 201,683
Contributions from City 834,654 - 834,654
Total Additions 907,363 3,183,216 4,090,579
Deductions
Administrative expenses - 50,179 50,179
Contractual services 834,654 381,793 1,216,447
Interest expense - 1,446,244 1,446,244
Debt service expense - 1,305,000 1,305,000
Total Deductions 834,654 3,183,216 4,017,870
Changes in Net Position 72,709 - 72,709
Net Position, Beginning of Year 2,883,350 7,790,756 10,674,106
Restatement (Note 15)- (7,790,756) (7,790,756)
Net Position, Beginning of Year, as Restated 2,883,350 - 2,883,350
Net Position, End of Year 2,956,059$ -$ 2,956,059$
Retiree Service
Stipend Fund
Special
Assessment
Funds
Total Custodial
Funds
169
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
170
DESCRIPTION OF STATISTICAL SECTION CONTENTS
Year Ended June 30, 2023
This part of the City of Palm Desert’s annual comprehensive 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
annual comprehensive financial reports for the relevant year.
171
7KLVSDJHLQWHQWLRQDOO\OHIWEODQN
172
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2023 2022 2021 2020 2019
Net Investment in capital assets 416,680,537 422,400,639 421,568,819 424,163,964 429,729,549
Restricted 172,531,052 164,636,470 197,082,889 196,858,726 200,536,233
Unrestricted 156,106,349 146,766,766 92,557,050 86,017,220 90,057,306
Total Governmental Activities Net Position 745,317,938 733,803,875 711,208,758 707,039,910 720,323,088
Business-Type Activities - - - - -
Net Investment in capital assets 69,239,563 67,327,809 67,981,326 68,394,059 69,070,734
Unrestricted 10,541,338 10,495,570 8,069,182 6,672,261 6,590,251
Total Business-type Activities Net Position 79,780,901 77,823,379 76,050,508 75,066,320 75,660,985
Primary Government
Net Investment in capital assets 485,920,100 489,728,448 489,550,145 492,558,023 498,800,283
Restricted 172,531,052 164,636,470 197,082,889 196,858,726 200,536,233
Unrestricted 166,647,687 157,262,336 100,626,232 92,689,481 96,647,557
Total Primary Government Net Position 825,098,839 811,627,254 787,259,266 782,106,230 795,984,073
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
(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.
173
City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 26,185,065 24,738,040 25,610,212 24,297,715 23,252,576
Public safety 40,753,734 37,396,780 34,280,941 37,286,860 37,195,732
Housing & Redevelopment 13,251,192 9,626,399 10,496,579 8,802,290 9,067,858
Parks, recreation and culture 19,112,483 8,880,984 7,969,386 7,651,094 8,284,914
Public works 20,646,936 22,071,598 24,979,279 28,270,798 14,836,332
Payments to other agencies - 2,692 - - -
Interest on long term debt 143,521 148,079 176,259 203,183 231,228
Total Governmental activities Expenses 120,092,931 102,864,572 103,512,656 106,511,940 92,868,640
Business-Type Activities:
Desert Willow Golf Course 11,073,128 9,910,813 8,960,991 8,603,243 8,700,514
Office Complex - Parkview 1,409,321 951,353 872,212 856,196 874,753
Total Business-Type Activities 12,482,449 10,862,166 9,833,203 9,459,439 9,575,267
Total primary government expenses 132,575,380 113,726,738 113,345,859 115,971,379 102,443,907
Program Revenues
Governmental Activities
Charges for services
General government 2,678,135 2,901,226 2,437,840 2,343,116 2,645,724
Housing & Redevelopment 11,016,631 8,060,726 7,455,959 8,446,585 8,180,354
Public safety 18,831,126 17,506,658 18,828,021 16,429,810 14,503,741
Parks, recreation and culture 3,339,445 675,307 325,485 532,543 829,557
Public works 2,958,606 3,075,351 2,443,299 2,386,635 2,762,045
Operating grants & contributions 13,039,734 20,328,308 10,617,579 10,416,281 10,426,397
Capital grants & contributions 4,673,498 4,828,197 16,836,560 3,661,487 4,016,193
Total Governmental Activities Program Revenues 56,537,175 57,375,773 58,944,743 44,216,457 43,364,011
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 12,159,419 11,068,847 9,171,607 7,099,985 8,743,654
Office Complex - Parkview 1,473,376 1,340,680 1,291,020 1,311,140 1,298,066
Capital grants & contributions 99,154 187,083 220,198 183,556 504,217
Total Business-type activities program revenue 13,731,949 12,596,610 10,682,825 8,594,681 10,545,937
Total Primary Government program revenue 70,269,124 69,972,383 69,627,568 52,811,138 53,909,948
Net (Expense) / Revenue
Governmental activities (63,555,756) (45,488,799) (44,567,913) (62,295,483) (49,504,629)
Business-type activities 1,249,500 1,734,444 849,622 (864,758) 970,670
Total Primary Government Net Expense (62,306,256) (43,754,355) (43,718,291) (63,160,241) (48,533,959)
General Revenues & Other Changes in Net Position
Governmental Activities:
Taxes: (Combined/Net Pass-through)67,809,190 66,204,764 47,221,069 45,210,477 53,894,917
Investment Earnings 5,165,176 (1,971,646) 301,330 2,366,204 3,170,693
Gain(loss) on sales of capital assets 825,294 --80,490 7,452
Miscellaneous 1,250,480 3,850,798 1,214,362 1,355,134 1,396,514
Special Item (3)----(7,530,000)
Transfers In / (Out) ----300,000
Gain on Transfer to Successor Agency/ Extraordinary Gain (2)-----
Total Governmental activities Net Revenues 75,050,140 68,083,916 48,736,761 49,012,305 51,239,576
Business-Type Activities:
Investment Earnings 450,279 (99,994) 20,283 159,115 181,310
Gain(loss) on sales of capital assets - - - - 87,365
Miscellaneous 257,743 138,421 114,283 110,978 -
Transfers Out - - - - (300,000)
Total Business-type activities 708,022 38,427 134,566 270,093 (31,325)
Total primary government 75,758,162 68,122,343 48,871,327 49,282,398 51,208,251
Change in Net Position
Governmental Activities: 11,494,384 22,595,117 4,168,848 (13,283,178) 1,734,947
Business-Type Activities:1,957,522 1,772,871 984,188 (594,665) 939,345
Total primary government 13,451,906 24,367,988 5,153,036 (13,877,843) 2,674,292
(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 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.
(3) City established an allowance for advances owed by the Successor Agency.
Expenses 20192020202120222023
174
City of Palm Desert
Changes in Net Position
Continued
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 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 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
Special Item (3)- - - - -
Transfers In / (Out)300,000 300,000 237,500 437,500 437,500
Gain on Transfer to Successor Agency/Extraordinary Gain (2) - - 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 -
Miscellaneous - - - - -
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) 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 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.
(3) City established an allowance for advances owed by the Successor Agency.
Expenses 20142015201620172018
175
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176
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:2023 2022 2021 2020 2019
Nonspendable 3,501,822 4,050,414 4,178,180 7,196,092 10,559,396
Committed 83,424,843 82,741,109 73,856,851 66,012,415 63,197,223
Assigned 19,282,496 18,238,107 16,696,825 16,196,564 15,964,130
Unassigned 14,707,351 32,645,330 5,681,608 3,473,480 3,322,321
Total General Fund 120,916,512 137,674,960 100,413,464 92,878,551 93,043,070
All other Governmental Funds:
Nonspendable 51,657 19,591 18,427 15,705 193,189
Restricted 172,531,603 164,636,470 168,368,520 168,806,454 175,780,733
Committed 15,568,245 15,761,482 16,312,379 16,275,373 16,247,652
Assigned 32,522,600 28,078,039 27,459,735 27,133,815 21,238,271
Unassigned - (126,614) - - -
Total all other Governmental Funds 220,674,105 208,368,968 212,159,061 212,231,347 213,459,845
General Fund:2018 2017 2016 2015 2014
Nonspendable 10,509,094 9,067,979 9,528,630 10,312,261 7,745,320
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
Restricted 169,549,126 171,044,474 165,411,544 (3) 106,261,212 114,194,435
Committed 16,751,821 16,771,055 16,873,834 16,952,887 21,644,068
Assigned 23,258,063 23,250,337 24,172,531 24,429,824
Unassigned - - - - -
Total all other Governmental Funds 209,560,736 211,067,142 182,288,430 147,386,978 160,275,040
(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) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds.
(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.
177
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues:2023 2022 2021 2020 2019
Taxes 86,687,919 84,037,191 65,209,322 59,635,918 67,102,185
Special assessments collected 3,618,972 3,407,107 3,381,657 3,481,924 3,948,157
Licenses & permits 3,111,176 2,622,695 1,504,694 1,268,965 1,416,829
Intergovernmental revenues 6,711,363 12,300,071 20,136,679 6,401,926 6,194,152
Rental income 8,958,960 8,129,025 7,320,419 7,071,648 6,899,916
Charges for services 8,743,794 6,175,500 4,889,634 5,272,577 5,223,285
Investment Earnings 12,129,730 (2,402,801) 1,298,728 10,311,159 7,166,097
Fines & forfeitures 127,087 105,198 147,671 127,801 273,434
Miscellaneous 852,153 7,340,808 3,776,838 4,741,905 2,892,940
Contributions from other government - 1,974,653 - - -
Total Revenues 130,941,154 123,689,447 107,665,642 98,313,823 101,116,995
Expenditures:
General government 24,896,946 24,079,563 23,478,543 21,468,512 24,269,546
Housing & redevelopment 10,310,551 8,232,440 8,839,559 7,090,941 7,504,119
Public safety 40,660,248 37,322,951 34,035,102 37,021,952 36,901,283
Parks, recreation & culture 17,708,634 7,439,687 6,073,015 5,902,166 6,497,391
Public works 15,287,888 17,667,805 18,533,419 21,994,806 8,728,354
Capital outlay 7,835,762 12,110,677 7,840,438 5,117,968 3,396,511
Debt service:
Principal retirement 263,809 2,294,052 174,000 225,000 587,000
Interest and fiscal charges 135,903 157,462 184,529 210,292 244,050
Total Expenditures 117,099,741 109,304,637 99,158,605 99,031,637 88,128,254
Excess(deficiency of Revenues
over(under) expenditures 13,841,413 14,384,810 8,507,037 (717,814) 12,988,741
Other financing sources (uses)
Transfers in 26,746,473 11,555,402 10,186,341 10,702,762 5,319,448
Transfers out (27,707,762) (11,864,512) (11,230,751) (11,377,965) (5,736,558)
Special Item (3)- - - - (6,000,000)
Extraordinary Gain / (Loss) (2)- 2,603,284 - - -
Sale of property (88,163) (1,001,688) - - -
Proceeds from subscriptions 529,156 - - - -
Total Other financing sources (uses)(520,296) 1,292,486 (1,044,410) (675,203) (6,417,110)
Net Change In Fund Balance 13,321,117 15,677,296 7,462,627 (1,393,017) 6,571,631
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)
Special Item (3)- - - - -
Extraordinary Gain / (Loss) (2)- - 72,138,669 - -
Sale of property - - 225,000 2,163,222 911,001
Proceeds from subscriptions - - - - -
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
0.7%0.6%1.2%
(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.
(3) City established an allowance for advances owed by the Successor Agency.
Debt service as a percentage of noncapital expenditures
Debt service as a percentage of noncapital expenditures
6.4%0.5%
1.0%0.5%0.4%2.5%0.4%
178
City of Palm Desert
Graphs - Changes in Fund Balances of Governmental 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 forfeitures, 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
2
3
FY
2
0
2
2
FY
2
0
2
1
FY
2
0
2
0
FY
2
0
1
9
FY
2
0
1
8
FY
2
0
1
7
FY
2
0
1
6
FY
2
0
1
5
FY
2
0
1
4
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
$300,000,000
FY
2
0
2
3
FY
2
0
2
2
FY
2
0
2
1
FY
2
0
2
0
FY
2
0
1
9
FY
2
0
1
8
FY
2
0
1
7
FY
2
0
1
6
FY
2
0
1
5
FY
2
0
1
4
Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works (4)
Public safety
Housing & Redevelopment
General Government
-179
City of Palm Desert
Supplemental - Historical General Fund Revenues
(including Transfers In)
Last Ten Fiscal Years
FY 2023 2022 2021 2020 2019
Revenue Type:
Sales Tax 26,354,774$ 26,193,390$ 21,156,220$ 18,445,806$ 21,434,387$
Transient Occupancy Tax 23,825,410 22,098,939 10,760,455 11,681,583 17,250,843
Property Tax (3)12,952,007 11,703,419 11,193,276 11,101,584 11,074,207
Investment Earnings 5,025,534 (1,867,595) 284,744 4,181,814 2,672,643
Transfer In 2,478,731 3,774,873 3,515,966 2,472,976 937,202
Franchises 3,574,273 3,334,555 3,066,989 3,025,984 3,078,855
State Subventions (1) (3)146,957 127,546 38,945 60,593 82,722
Building & Grading Permits 2,290,974 2,079,314 1,195,893 953,176 1,064,071
Reimbursements (4)1,464,230 530,474 1,229,484 1,375,770 1,468,351
Business License Tax 1,139,514 1,326,920 962,940 1,038,137 1,216,712
Timeshare Mitigation Fee 1,711,324 1,555,137 1,501,625 1,467,905 1,678,375
Plan Check Fees 644,448 616,576 480,881 468,180 619,763
Property Transfer Tax 934,735 1,197,951 1,027,833 566,468 727,978
Other Revenues (2)3,581,082 8,337,209 8,072,509 3,130,862 2,352,803
Total General Revenue 86,123,993$ 81,008,708$ 64,487,760$ 59,970,838$ 65,658,912$
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
Reimbursements (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$
(1) State Subventions is any combination of motor vehicle, off-highway in-lieu, 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, other revenues and Federal ARPA-Covid19.
(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.
180
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, off-highway in-lieu, 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
$80,000,000
F
Y
2
0
2
3
F
Y
2
0
2
2
F
Y
2
0
2
1
F
Y
2
0
2
0
F
Y
2
0
1
9
F
Y
2
0
1
8
F
Y
2
0
1
7
F
Y
2
0
1
6
F
Y
2
0
1
5
F
Y
2
0
1
4
Combined Other (1)
Interest
Property Tax
Transient Occupancy
Tax
181
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2023 2022 2021 2020 2019
Expenditure:
Public Safety (1)23,304,557$ 20,288,195$ 19,326,751$ 21,415,334$ 20,975,032$
City Administration (2)14,202,930 12,620,102 12,990,562 11,429,468 12,521,081
Public Works Administration 3,026,733 2,265,476 1,886,402 2,457,045 2,149,715
Community Promotions 1,347,204 1,216,272 420,424 947,370 1,249,674
Street Maintenance 2,156,583 2,421,966 2,317,468 2,212,933 2,185,648
Building Safety 1,366,067 1,751,817 1,461,477 1,661,372 1,828,083
Street Resurfacing - - - - -
Public Works (4)3,852,469 1,338,520 1,165,671 1,151,447 1,250,969
Other Expenditures (3)35,851,470 18,572,299 17,384,092 18,860,388 20,826,188
Total Expenditures 85,108,013$ 60,474,647$ 56,952,847$ 60,135,357$ 62,986,390$
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$
(1) Public Safety is any combination of animal regulation, police services, community safety 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, independent audit, City attorney, City clerk, City council,
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, retiree health, planning & community development,
economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay,
special item, 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, auto fleet, corporate yard,
public building maintenance, Portola Community center, storm water permit.
182
City of Palm Desert
Supplemental Graph- Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
(1) Public Safety is any combination of animal regulation, police services, community safety 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, independent audit, City attorney, City clerk, City council,
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, retiree health, planning & community development,
economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay,
special item, 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, auto fleet, corporate yard,
public 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
$70,000,000
$80,000,000
$90,000,000
F
Y
2
0
2
3
F
Y
2
0
2
2
F
Y
2
0
2
1
F
Y
2
0
2
0
F
Y
2
0
1
9
F
Y
2
0
1
8
F
Y
2
0
1
7
F
Y
2
0
1
6
F
Y
2
0
1
5
F
Y
2
0
1
4
Other Expenditures Comb
(3)
Public Works (4)
City Administration (2)
Public Safety (1)
183
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2023 2022 2021 2020 2019
Total General Revenue (2)86,123,993$ 77,168,851$ 60,971,794$ 57,497,862$ 64,721,710$
Population (1)50,615 50,889 53,892 52,986 53,625
General Revenue Per Capita 1,702 1,516 1,131 1,085 1,207
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 2023 2022 2021 2020 2019
Total General Expenditures (2)85,108,013$ 52,730,364$ 49,481,094$ 51,498,878$ 57,900,932$
Population (1)50,615 50,889 53,892 52,986 53,625
General Expenditures Per
Capita 1,681 1,036 918 972 1,080
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$
(1) Population figures are as of January start of fiscal year.
(2) Interfund Transfers In/Out, extraordinary loss (gain), and special item are not included in total.
Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department
184
City of Palm Desert
Assessed Value and Estimated 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)
2023 13,770,177,817 3,039,934,131 72,379,384 271,422,690
*- 18,094,846,015 1.00000 17,895,334,799
2022 12,816,062,846 2,919,685,840 67,899,671 254,623,765
*- 16,974,917,677 1.00000 16,768,080,495
2021 12,277,100,484 2,872,316,290 65,652,944 279,025,011
*- 16,413,235,941 1.00000 16,217,619,993
2020 11,781,804,552 2,771,257,791 63,343,035 300,879,417
*(45,437) 15,835,758,806 1.00000 15,636,583,844
2019 11,231,546,199 2,675,659,205 62,224,633 373,347,796 (326,679,322) 15,556,158,170 1.00000 15,045,226,485
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
(1) Estimated Actual Taxable Value = Net Taxable Value
* Per HDL there was an artifact change in the Riverside County Assessors data that occurred primarily between 2018 and 2019, new vs old system differences,
the few properties which are listed as having asssessed value and being non-taxable are either new to the roll or are newly non-taxable for 2019.
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
185
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Ten Fiscal Years
i honestly imagine it being a little
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 / Sam's Supercenters 05/06
Kohl's 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
3.22%5.08%5.02%
2.56%2.48%
4.15%3.93%3.72%3.39%
6.72%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Percent Increase in Assessed Valuation
FY 2014 to FY 2023
$-
$5,000
$10,000
$15,000
$20,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Value in Millions
Net Assessed Valuation - Historical Comparison
FY 2014 to FY 2023
186
City of Palm Desert
Supplemental FY 2023 and 2022 Breakdown of Basic 1% Property Tax Rate
Not in Redevelopment Project Area
Taxing Agency FY 2023 Rate FY 2022 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 Cemetery 0.339927%0.339927%
Desert Recreation District 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.
187
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
Palm Springs
Unified B&I
1192-A Ds
2023 1.00000 1.00000 0.07500 0.03950 0.11000 0.00000 0.15187
2022 1.00000 1.00000 0.07500 0.03950 0.11000 0.00000 0.15030
2021 1.00000 1.00000 0.07390 0.03947 0.10000 0.00000 0.10334
2020 1.00000 1.00000 0.07381 0.03983 0.10000 0.00000 0.10542
2019 1.00000 1.00000 0.07418 0.03978 0.10000 0.00000 0.10603
2018 1.00000 1.00000 0.07251 0.04030 0.10000 0.00000 0.11146
2017 1.00000 1.00000 0.08599 0.02036 0.10000 0.00000 0.11802
2016 1.00000 1.00000 0.10915 0.02087 0.10000 0.00000 0.08978
2015 1.00000 1.00000 0.10984 0.02325 0.10000 0.00000 0.10160
2014 1.00000 1.00000 0.10954 0.01995 0.10000 0.00000 0.12961
Notes: Proposition 13 limits the ability of the city to raise the property tax rate.
Source: CalMuni Statistics Inc
City Direct Overlapping Rates
188
City of Palm Desert
Principal Property Taxpayers
Current and Ten Years Ago
2023 2014
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
NEWAGE DesertSprings 183,277,948$ 1.02%WEA Palm Desert 144,890,985$ 1.16%
WEA Palm Desert 167,598,620 0.93%Marriott Desert Springs 136,022,554 1.09%
Gardens on El Paseo LLC 146,001,786 0.81%Gardens on El Paseo
LLC 100,463,843 0.80%
WVC Rancho Mirage Inc 134,387,296 0.75%WVC Rancho Mirage 84,971,489 0.68%
PRU Desert Crossing LLC 107,432,299 0.60%Pru Desert Crossing II
LLC 81,024,967 0.65%
CC Cimarron LP 71,394,568 0.40%Sinatra and Cook Project 54,874,399 0.44%
First American Trust 63,108,340 0.35%Walmart Real Estate
Business Trust 48,324,981 0.39%
Walmart /Sams 58,460,349 0.33%Segovia Operations 47,715,576 0.38%
Segovia Operations 55,777,259 0.31%Monarch Sevilla Venture 47,671,183 0.38%
Sunrise Spectrum 54,306,893 0.00%Sunrise Spectrum 46,907,800 0.38%
Total 1,041,745,358$ 5.80%Total 792,867,777$ 6.35%
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 22/23 and HdL Coren & Cone thru Riverside County Assessor 13/14
189
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 (3)Amount (3)(4)of Levy
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%
2019 6,867,405 6,640,656 96.70% 207,894 6,848,550$ 99.73%
2020 7,202,939 6,502,032 90.27% 211,602 6,713,634$ 93.21%
2021 7,332,966 6,391,062 87.16% 256,431 6,647,493$ 90.65%
2022 8,203,212 7,930,195 96.67% 273,017 8,203,212$ 100.00%
2023 8,853,225 8,320,643 93.98% 532,582 8,853,225$ 100.00%
(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) Includes tax collections accrued as of June 30, 2023.
(4) Includes amounts receivable for tax year 2022-2023 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)
Total Collections to Date
190
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2023
Top 25 Sales Tax Generators (1)Primary Economic Category
ABC SUPPLY COMPANY BUILDING MATERIALS
ALBERTSON'S FOOD CENTERS GROCERY STORES
APPLE INC ELECTRONICS/APPLIANCE STORES
ARIZONA TILE HOME FURNISHINGS
ASHLEY FURNITURE HOMESTORE HOME FURNISHINGS
BEST BUY STORES LP ELECTRONICS/APPLIANCE STORES
CARMAX AUTO SUPERSTORES USED AUTOMOTIVE DEALERS
CIRCLE K CONVENIENCE STORES/LIQUOR
CONSOLIDATED ELECTRICAL DISTRIBUTORS PLUMBING/ELECTRICAL SUPPLIES
COSTCO DISCOUNT DEPT STORES
JW MARRIOTT DESERT SPRINGS HOTELS/MOTELS
LEEDS JEWELERS JEWELRY STORES
LOUIS VUITTON FAMILY APPAREL
LOWES BUILDING MATERIALS
MACY'S DEPARTMENT STORES DEPARTMENT STORES
NORDSTROM RACK DEPARTMENT STORES
PGA TOUR SUPERSTORE SPORTING GOODS/BIKE STORES
SAKS FIFTH AVENUE DEPARTMENT STORES
SAM'S CLUB WITH FUEL DISCOUNT DEPT STORES
SIMPLOT GARDEN/AGRICULTURAL SUPPLIES
SUPERIOR POOL PRODUCTS DRUGS/CHEMICALS
TARGET STORES DISCOUNT DEPT STORES
TOMMY BAHAMA FAMILY APPAREL
TOTAL WINE & MORE CONVENIENCE STORES/LIQUOR
WAL-MART SUPERCENTER DISCOUNT DEPT 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
$25.0
$27.0
$29.0
20
1
4
20
1
5
20
1
6
20
1
7
20
1
8
20
1
9
20
2
0
20
2
1
20
2
2
20
2
3
Millions
Sales and Use Tax Trends FY 2014 - 2023
-2.57%0.66%
15.1%
-13.9%
23.8%
1.8%
0.6%
Amounts
in Millions
% = % Change from Prior Year
8.1%
$17.258 $17.564 $18.994 $18.505 $18.627 $21.434 $18.445 $21.156 $26.193 $26.354
14.7%-In Lieu *
2.9%
191
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Special Assessment/Total Percentage Total Debt
Fiscal Local Obligation Capital Primary of Total Personal Per
Year Bonds b,c,d Leases Government Income
a,f Capita a,f
2014 8,246,000 1,222,915 9,468,915 0.39%198
2015 3,302,000 e 1,435,046 4,737,046 0.19% 99
2016 3,045,000 929,860 3,974,860 0.16%83
2017 2,808,000 499,881 3,307,881 0.14%69
2018 2,658,000 1,493,330 4,151,330 0.17%87
2019 2,071,000 1,595,394 3,666,394 0.24%128
2020 1,846,000 1,145,011 2,991,011 0.23%105
2021 1,672,000 675,976 2,347,976 0.20%92
2022 1,294,000 - 1,294,000 0.04%25
2023 1,162,000 - 1,162,000 0.04%23
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, 2023 the balance was $1.032M.
c - Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million
Energy Independence Loan Program. The actual Bond Issuance was for $2.015m. At June 30, 2023 the oustanding balance was $0.071M
d - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection commenced during the fiscal year 2010-2011. At June 30, 2023 the outstanding balance was $0.059M.
e - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease
Revenue Bonds, Series 2009 (Federally Taxable). On September 2, 2014 the bonds were called in full. As of June 30, 2017 there were no outstanding
f - Personal income and Per Capita statistic includes government and business type activities combined.
Governmental Activities Business Type Activities
192
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Percentage of Actual
Special Assessment Taxable Value of Per
Bonds Property Capita
Note: There are no General Obligation Bonds from FY 2014 to FY 2023
193
City of Palm Desert
Supplemental Special Assessment Information
June 30, 2023
District Name\Description
2003 01-01
Revenue Bonds
Silver Spur Ranch
Utility
Undergrounding 5
Community Facilities
District No. 2005-1
(University Park)
Special Tax Bonds
Series 2021A6
Community
Facilities District
No. 2021-1
(University Park)
Special Tax Bonds
Series 20217
2004-2 Section 29
Assessment District
Limited Obligation
Improvement Bonds
Series 2021
Bond Issue Date 6/25/2003 7/13/2021 7/13/2021 6/23/2021
Final Maturity Date 9/2/2028 9/1/2036 9/1/2051 9/2/2037
Highest Interest Rate 5.375%4.000%4.000%5.100%
Bond Issue Amount 2,340,000$ 5,165,000 15,200,000 16,400,000
Matured Principal 1,390,000$ 250,000 245,000 685,000
Called Principal 170,000$ - - -
Outstanding Bonds (4)780,000$4,915,000$ 14,955,000$ 15,715,000$
Redemption Premium 3.00%3.00%3.00%3.00%
Original Parcels 201 66 243 859
Active Parcels 193 55 243 776
Reserve Requirement 153,947$461,800$ 868,775$ 1,411,600$
Reserve Balance 22/23 (1)165,720$468,408$ 874,214$ 1,416,863$
Principal Due 23/24 (2)115,000$ 270,000 305,000 785,000
Principal Levied 22/23 (3)110,000$250,000 245,000 685,000
Interest Due 23/24 (2)38,763$187,050 562,575 612,900
Interest Levied 22/23 (3)44,669$194,850 570,825 635,450
22/23 Delinquency Rate 0.00%1.64%0.00%0.13%
Arbitrage Installment Computation
Date: 90% Rebate Due 06/25/23 N/A N/A N/A
Arbitrage Yield Rate 4.9129%N/A N/A N/A
Arbitrage-Amount Owed --- -
Continuing Disclosure Last Report
Issued:1/4/2021 02/2023 02/2023 02/2023
(1) Reserve Balances are as of 6/30/23.
(2) Outstanding bond balance at June 30, 2023.
(3) Amount represents principal and interest collected during the FY 22/23 tax roll for Debt Service Payment due in
FY 23/24 per debt service schedule.
(4) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments.
(5) The schedule presents the information for each individual local obligation bonded district. Assessment Districts
94-3 Merano and 01-01 Silver Spur were refunded and obligated to pay Debt Service to Series 2003 Assessment
Revenue Bonds see note 16 for additional information.
(6) Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021A were used to refund
Community Faciliites District No. 2005-1 (University Park) Special Tax Bonds Series 2006A
(6) Community Facilities District No. 2021-1 (University Park) Special Tax Bonds 2021A were used to pay and
defease a pro rata portion of outstanding Community Faciliites District No. 2005-1 (University Park) Special
Tax Bonds Series 2006A
Source: Willdan Financial Annual Report 194
City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30, 2023
2022/23 Assessed Valuation:17,950,974,247$
City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:Total Debt 6/30/23 % Applicable (1) Debt 6/30/23
Desert Community College District 486,615,000$ 17.736% 86,306,036$
Desert Sands Unified School District 365,405,000 33.619% 122,845,507
Palm Springs Unified School District 418,287,347 4.116% 17,216,707
City of Palm Desert Limited Obligation Improvement Bonds 185,000 100.000% 185,000
City of Palm Desert Community Facilities District No. 2005-1 4,915,000 100.000% 4,915,000
City of Palm Desert Community Facilities District No. 2021-1 14,955,000 100.000% 14,955,000
City of Palm Desert 1915 Act Bonds 17,537,000 100.000% 17,537,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 263,960,250$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Riverside County General Fund Obligations 686,776,829$ 4.957%34,043,527$
Riverside County Pensions Obligations 748,540,000 4.957%37,105,128
Desert Sands Unified School District Certificates of Participation 13,785,000 33.619%4,634,379
City of Palm Desert - 100.000%-
Desert Recreation District Certificates of Participation 1,389,522 25.849%359,178
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 76,142,212$
OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)457,662,321$ 0.210-100%161,126,242$
TOTAL CITY DIRECT DEBT -$
TOTAL OVERLAPPING DEBT 501,228,704$
COMBINED TOTAL DEBT 501,228,704$ (2)
(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.
Ratios to 2022-2023 Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.47%
Total Direct Debt ($0)0.00%
Net Combined Total Debt 2.79%
Ratios to Redevelopment Successor Agencies Incremental Valuation (11,885,480,015)$
Total Overlapping Tax Increment Debt 1.36%
Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department
195
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Value 17,950,974,247$
Debt Limit (15% of Assessed Value) (1)2,692,646,137
Debt Applicable to Limit:
General Obligation Bonds 1,032,000
Less: Amount set aside for
repayment of general obligation
debt -
Total Debt Applicable to Limit -
Legal debt margin 2,691,614,137$
2014 2015 2016 2017 2018
Debt Limit 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 1,526,000 1,489,000 1,451,000 1,410,000 1,368,000
Legal debt margin 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 0.08%0.08%0.07%0.07%0.06%
2019 2020 2021 2022 2023
Debt Limit 2,256,723,736 2,345,639,686 2,432,559,897 2,513,282,720 2,692,646,137
Total Net debt applicable to limit 1,310,000 1,178,000 1,130,000 1,082,000 1,032,000
Legal debt margin 2,255,413,736 2,344,461,686 2,431,429,897 2,512,200,720 2,691,614,137
Total net debt applicable to the limit
as a percentage of debt limit 0.06%0.05%0.05%0.04%0.04%
(1) Section 43605 of the California Government Code.
Source: California Municipal Statistic, Inc. San Francisco
Legal Debt Margin Calculation for Fiscal Year 2023
FISCAL YEAR
FISCAL YEAR
196
City of Palm Desert
Pledged-Revenue Coverage
Last Ten Fiscal Years
Special Special
Fiscal Assessment Assessment
Year Collections a,c Principal Interest Coverage Collections Principal Interest Coverage
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
2019 5,608,312 2,427,000 2,942,348 1.0445 25,986,960 e, i 17,210,000 e, i 8,776,960 1.000
2020 5,280,905 2,080,000 2,818,146 1.0781 27,833,500 e, i 19,475,000 e, i 8,358,500 1.000
2021 5,397,140 2,119,000 2,698,952 1.1202 25,215,056 e, i 17,330,000 e, i 7,885,056 1.000
2022 j, k 3,342,319 488,000 1,072,389 2.1420 25,462,250 e, i 18,115,000 e, i 7,347,250 1.000
2023 3,253,687 1,439,235 1,577,199 1.0787 25,798,956 e, i 19,045,000 e, i 6,753,956 1.000
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.Liberty-Mitch
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 princiapl 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 ($45.815M). See Note 18 Tax Allocation Bonds. The 2017 Refunding Bonds refunded all of the
tax allocation revenue bonds; with the exception of the Project Area No. 1 2007A Bonds, and the Project Area No. 2 2003 Bonds.
j During the Fiscal Year 2021-22, the City of Palm Desert issued CFD 2021-1 Special Tax Bonds Series 2021 and CFD 2005-1 Special Tax Refunding
Bonds Series 2021A. The purpose of these bonds is to refund the CFD 2005-1 Special Tax Bonds Series 2006A.
k During the Fiscal Year 2021-22, the City of Palm Desert issued Section 29 Assessment District 2004-02 Limited Obligation Refunding Improvement
Bonds Series 2021. The purpose of this issuance is to refund the Section 29 AD 2004-02 Limited Obligation Improvement Bonds Series 2007.
Tax Increment b
Debt ServiceDebt Service
Special Assessment Bonds
197
City of Palm Desert
Demographic and Economic Statistics
Last Ten Calendar Years
Calendar Percentage Per Capita City Riverside Percentage County
Year City Increase Personal Personal Unemployment County Increase Unemployment
End Population (Decrease) Income CY a Income CY Rate b Population (Decrease) Rate b
2023 50,615 -0.54% 3,049,841,493$ 60,256$ 4.80%2,439,234 0.15%5.00%
2022 50,889 -5.57% 3,004,769,944$ 59,046$ 4.10%2,435,525 -0.77%4.00%
2021 53,892 1.71% 2,960,364,477$ 54,931$ 7.40%2,454,453 0.50%8.00%
2020 52,986 -1.19% 2,916,615,248$ 55,045$ 17.20%2,442,304 0.09% 14.70%
2019 53,625 1.62% 2,873,512,560$ 53,585$ 4.90%2,440,124 1.00%4.40%
2018 52,769 4.00% 2,831,046,858$ 53,650$ 5.00%2,415,955 1.31%4.80%
2017 50,740 2.85% 2,789,208,727$ 54,971$ 4.00%2,384,783 1.57%5.70%
2016 49,335 -3.37% 2,747,988,894$ 55,701$ 4.20%2,347,828 1.71%6.70%
2015 51,053 1.26% 2,707,378,221$ 53,031$ 4.60%2,308,441 1.25%6.50%
2014 50,417 0.94% 2,667,367,705$ 52,906$ 4.90%2,279,967 1.10%8.40%
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 22/23 is based on annual information from State of California Employment Development Department
Labor Market Information Division (not seasonally adjusted)
Sources: State Department of Finance, State Employment Development Department
198
City of Palm Desert
Principal Employers
Current and Nine 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 10.02%
JW Marriot-Desert Springs
Resort & DS Villas 2,304 1 8.15%
Universal Protection Services 1,500 2 6.52%
Universal Protection Services 1,500 2 5.31%
Securitas-Security Service
USA 700 3 3.04%
Securitas-Security Service USA 700 3 2.48%
Avida Caregivers 550 4 2.39%
Avida Caregivers-P.Desert 550 4 2.15%
Organization of Legal Pro's 501 5 2.18%
Sunshine Landscape 500 5 1.77%
Sunshine Landscape 500 6 2.17%
Bighorn Golf Club 250 6 0.88%
Costco Wholesale 250 7 1.09%
Costco 250 7 0.88%
Bighorn Golf Club 250 8 1.09%
Westin-Desert Willow 248 8 0.88%
Yellow Cab of Desert 160 9 0.70%
Time Warner Cable 236 9 0.83%
Whole Foods Market 150 10 0.65%
Marriott Shadow Rige 208 10 0.74%
Sources: CA Employment Development Department - Federal and State Government not included
* Data based on prior years numbers, at the time of preparation data was not available.
2023*2014
199
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2023
City/ Municipal Government
Form of Government:Council - City Manager/Charter City
Date of Incorporation:November 26, 1973
Number of Employees:123 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:4,843 active business licenses
Number of Hotels & Rooms: 19 hotels, 2,822 rooms
CONTRACT SERVICES:
Police Department Contract with Riverside County Sheriff - 61 sworn positions plus 19 support staff
(rounded to nearest FTE)
Fire Department Contract with Riverside County/State Fire 49 positions plus 12 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 - The Hartford Insurance Company
Life The Hartford Insurance Company
Retirement California PERS - Public Employees' Retirement System
Source: City of Palm Desert
200
City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program
Last Ten Fiscal Years
Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General Government
City 38 35 33 33 31 31 32 32 34 34
Economic Dev & Housing b 17 12 11 11 11 10 11 13 13 13
Public Safety 29 28 30 30 28 29 29 28 26 25
Police & Fire (1) 141 141 140 174 172 179 170 163 169 173
Public Works 39 33 38 38 39 39 39 40 40 40
Totals 264 249 252 286 281 288 281 276 282 285
(1) The City operates as a "contract city" utilizing, primarily, agreements with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, 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
201
City of Palm Desert
Operating Indicators by Function / Program
Last Ten Fiscal Years
Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General Government
Business License Inspections ********24 33
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons)60,753 61,932 60,226 58,096 59,154 56,346 54,301 52,772 54,865 57,935
Recyclables Collected 25,497 22,043 20,964 21,772 27,391 28,119 26,651 23,818 24,611 26,424
Public Safety
Physical Arrests 1,155 1,198 1,066 621 758 1,654 1,620 1,284 1,946 1,348
Parking Violations 1,128 769 780 899 375 575 587 712 794 386
Traffic Violations 1,497 1,398 2,070 1,392 3,525 7,012 6,939 6,223 5,525 5,284
Emergency Responses-Fire Department 11,136 10,557 9,701 15,088 10,009 9,984 9,617 9,285 8,628 8,235
Fires Extinguished 98 138 104 147 93 90 68 103 88 106
Fire Inspections ###3,372 5,397 3,378 1,274 2,118 2,989 2,552
Building Permits Issued 4,795 5,211 3,651 3,118 3,912 3,644 4,734 4,704 4,909 5,552
Building Inspections Conducted 21,857 16,802 13,451 13,439 13,965 18,601 23,542 24,756 24,057 24,830
Public Works
Street Resurfacing (miles) (3)37.6 2.25 1.83 16.9 31.6 7.3 25.8 2.9 8 34
Parks, recreation & culture
Athletic Field Permits Issued 2,766 2,255 2,262 643 2,990 2,934 3,197 2,997 4,430 6,548
Amphitheater / Pavilions Permits Issued 292 350 244 6 119 121 106 104 283 247
Community Center Admissions 37,048 32,326 15,577 9,746 52,203 60,769 51,694 64,493 53,426 50,204
Aquatic Center Admissions (2)38,864 31,320 38,249 32,905 52,102 53,739 58,023 60,359 64,103 43,545
(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.
(#) City discontinued the City Fire Marshal services and contracted with the County for State mandated inspections only.
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.
202
City of Palm Desert
Capital Asset Statistics by Function / Program
Last Ten Fiscal Years
Function / Program 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
General Government
Contracted Services (1)
Collection trucks 39 35 29 25 25 24 24 35 30 30
Public Safety - Police & Fire
Police Stations 1111111111
Police Sub Stations 1111111111
Patrol Units-Cars 26 26 26 27 29 30 29 29 29 26
Patrol Units-Motorcycles 7777699111010
Fire Stations 3333333333
Fire Trucks 1 plus 1 reserve 1 plus 1 reserve 5 plus 2 reserve 4 plus 1 reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Rsrvd 4 plus 1 Rsrvd
Ambulance 4 plus 2 reserve 4 plus 2 reserve 4 plus 3 reserve 4 plus 3 reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Rsrvd 4 plus 3 Rsrvd
Fire Prevention Pick-ups ---2.5433333
Public Works
Streets (miles)170 170 170 170 170 170 170 170 170 170
Traffic Signals 99 99 99 99 99 99 99 98 98 98
Parks, recreation & culture
Acreage 201 201 201 201 201 201 201 201 201 201
Total Parks 13 13 13 13 13 13 13 13 13 13
Playgrounds 16 16 16 16 16 16 16 16 16 16
Baseball/softball diamonds 8888888888
Soccer/football fields 9999999999
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 8888888888
Community Centers 2222222222
Skateboard Parks 2222222222
Aquatic Center 1111111111
Commercial Office Space
(Parkview Office Complex)
Leasable Space (square feet)47,909 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322
Occupancy Rate 80%84%84%91%91%82%84%90%90%86%
Number of Tenants by Type
Government (State, local regional)5777777989
Non-Profit 2444433434
Private 3333323114
Square Footage lease by tenant
Government (State, local regional)23,374 31,607 31,607 31,607 31,607 30,907 32,287 33,127 30,907 31,921
Non-Profit 4,873 7,339 7,339 7,341 6,621 4,061 4,061 3,561 6,269 3,294
Private 3,083 3,083 3,083 6,693 7,468 6,218 6,938 8,688 8,025 8,025
Vacant 16,597 8,293 8,293 4,681 4,626 9,136 8,416 4,946 5,121 7,082
Municipal Golf Course
(Desert Willow Golf Resort)
Courses - Fire Cliff and Mountain View 2222222222
Holes 36 36 36 36 36 36 36 36 36 36
Golf Carts 172 172 172 172 172 172 172 172 172 172
Clubhouse square footage 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000
Rounds per Course
Fire Cliff 48,410 52,415 47,695 38,057 48,646 46,620 39,424 39,366 44,845 45,841
Mountain View 50,160 47,949 49,005 35,332 43,523 43,712 39,931 40,910 42,407 43,160
Total Annual Rounds 98,570 100,364 96,700 73,389 92,169 90,332 79,355 80,276 87,252 89,001
(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.
Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste
203
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 19 and note 20.
Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
204
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Project Area No. 2
Project Area No. 3
Date:
1/2010
Redevelopment Agency
Project Areas IArea 1 - Original (1975)
Area 1 - Added Territory (1982)
Area 2
Area 3
Area 4
City Boundary205
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2023
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 -$
Principal Due 23/24 910,000
Interest Due 23/24 729,631
Arbritage Yield Rate 4.9502%
Arbritage-Amount Owed -
Arbritage Five Year Due Date:03/26/28
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 36,405,000$ 96,345,000$
Call Premium 0.00%0.00%
Bond Insurer BAM BAM
Reserve Requirement (1)5,840,397 9,027,545
Reserve Balance (1)(1) (1)
Called Bonds -$ -$
Principal Due 23/24 715,000 11,675,000
Interest Due 23/24 1,802,375 3,422,400
Arbritage Yield Rate 3.659%3.659%
Arbritage-Amount Owed - -
Arbritage Five Year Due Date:01/31/27 01/31/27
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 5,025,000$ 6,195,000$
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 -$ -$
Principal Due 23/24 455,000 6,195,000
Interest Due 23/24 216,144 92,925
Arbritage Yield Rate 2.907%2.907%
Arbritage-Amount Owed - -
Arbritage Five Year Due Date:01/31/27 01/31/27
(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
206
City of Palm Desert
Historical Tax Increment/
Redevelopment Property Tax Trust Fund Summary
All Project Areas
Project Area No. 1 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
Gross Tax Increment 51,298,203 53,437,088 56,610,029 58,222,677 59,842,517 62,844,689 64,495,840 68,597,410 70,656,513 77,499,942
Less:
Housing Set-Aside*10,259,641 10,687,418 11,322,006 11,644,535 11,968,503 12,568,938 12,899,168 13,719,482 14,131,303 15,499,988
SB 2557 673,261 686,944 629,449 725,403 662,238 594,754 570,820 858,150 1,503,453 1,246,470
Gross Pass-Throughs 20,111,377 21,241,903 22,961,604 25,052,727 22,919,420 25,953,291 26,949,281 28,676,151 29,944,830 33,357,702
Net Tax Increment 20,253,925 20,820,823 21,696,970 20,800,012 24,292,356 23,727,706 24,076,571 25,343,627 25,076,927 27,395,781
RPTTF Amount Deposited 25,090,381 26,530,801 24,696,424 25,131,004 19,923,194 20,331,658 21,672,933 21,069,258 16,915,008 14,831,440
Project Area No. 2 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
Gross Tax Increment 13,556,184 15,232,096 16,232,329 16,302,895 16,916,067 17,466,255 18,503,456 19,553,601 19,897,195 21,078,916
Less:
Housing Set-Aside*2,711,237 3,046,419 3,246,466 3,260,579 3,383,213 3,493,251 3,700,691 3,910,720 3,979,439 4,215,783
SB 2557 179,214 192,900 180,457 202,348 187,481 165,500 172,557 243,191 188,413 339,023
Gross Pass-Throughs 4,967,602 5,665,961 6,078,194 6,103,481 6,372,798 6,609,645 7,125,321 7,569,060 7,672,621 8,741,803
Net Tax Increment 5,698,132 6,326,816 6,727,213 6,736,487 6,972,575 7,146,063 7,504,887 7,830,630 8,056,722 7,782,307
RPTTF Amount Deposited 7,017,531 5,441,721 5,547,427 5,887,814 5,516,674 5,629,776 6,106,095 6,005,764 4,763,343 4,033,947
Project Area No. 3 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
Gross Tax Increment 3,760,421 3,754,999 4,039,902 4,360,574 4,364,606 4,487,719 4,653,982 4,947,578 5,015,404 5,230,337
Less:
Housing Set-Aside*752,084 751,000 807,980 872,115 872,921 897,544 930,796 989,516 1,003,081 1,046,067
SB 2557 49,871 48,901 45,175 52,745 8,947 42,853 41,139 62,062 47,593 84,122
Gross Pass-Throughs 1,377,700 1,371,786 1,510,219 1,656,158 1,662,390 1,730,228 1,813,552 1,937,004 1,985,858 2,179,024
Net Tax Increment 1,580,766 1,583,312 1,676,528 1,779,556 1,820,347 1,817,094 1,868,494 1,958,996 1,978,872 1,921,124
RPTTF Amount Deposited 1,357,678 1,237,930 1,290,623 1,295,156 1,422,709 1,451,877 1,563,906 1,519,617 1,200,676 1,000,948
Project Area No. 4 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23
Gross Tax Increment 11,941,800 13,057,891 13,889,272 14,287,533 14,685,301 15,251,204 15,776,294 16,815,458 17,592,461 18,995,874
Less:
Housing Set-Aside*2,388,360 2,611,578 2,777,854 2,857,507 2,937,060 3,050,241 3,155,259 3,363,092 3,518,492 3,799,175
SB 2557 156,818 166,634 154,976 178,812 162,715 145,017 139,433 210,710 166,282 305,520
Gross Pass-Throughs 7,901,830 8,381,422 8,866,804 9,433,947 9,943,062 10,454,725 8,434,713 11,405,344 12,185,263 13,800,057
Net Tax Increment 1,494,792 1,898,257 2,089,637 1,817,267 1,642,464 1,601,222 4,046,890 1,836,312 1,722,424 1,091,122
RPTTF Amount Deposited 3,675,440 3,071,966 2,443,507 2,610,660 4,834,978 4,934,105 5,301,405 5,164,761 4,211,595 3,635,308
*For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution.
207
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City of Palm Desert
73510 FRED WARING DRIVE
PALM DESERT, CA 92260
www.palmdesert.gov
209