HomeMy WebLinkAbout2015 Palm Desert CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2015
Prepared by the Finance Department
City Treasurer/Director of Finance
Paul S. Gibson, CCMT
Assistant Finance Director
Jose Luis Espinoza, CPA
Finance Staff
(in alphabetical order by positions and names)
ACCOUNTING TECHNICIAN II
James Bounds
ACCOUNTING TECHNICIAN II
Horacio Celaya
ACCOUNTING TECHNICIAN II
Sharon Christiansen
ACCOUNTING TECHNICIAN II
Diana Leal
ADMINISTRATIVE SECRETARY
Niamh Ortega
DEPUTY CITY TREASURER
Thomas Jeffrey
G.I.S. TECHNICIAN
John Urkov
INFORMATION SYSTEMS MANAGER
Clayton von Helf
INFORMATION SYSTEMS TECHNICIAN
Troy Kulas
INFORMATION SYSTEMS TECHNICIAN
Ray Santos
MANAGEMENT ANALYST II
Jenny Barnes
SENIOR FINANCIAL ANALYST
Anthony Hernandez
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CITY OF PALM DESERT
TABLE OF CONTENTS
JUNE 30, 2015
Page
Number
INTRODUCTORY SECTION
Table of Contents i
Letter of Transmittal vii
GFOA Certificate of Achievement for Excellence in Financial Reporting xi
List of Principal Officials xiii
Organization Chart xiv
FINANCIAL SECTION
AUDITORS' REPORT
Independent Auditors' Report 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS
Exhibit A -Statement of Net Position 17
Exhibit B -Statement of Activities 18
Exhibit C -Balance Sheet -Governmental Funds 22
Exhibit D -Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 25
Exhibit E -Statement of Revenues, Expenditures and Changes in Fund
Balances -Governmental Funds 26
Exhibit F -Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 28
Exhibit G -Statement of Net Position -Proprietary Funds 29
Exhibit H -Statement of Revenues, Expenses and Changes in Fund
Net Position -Proprietary Funds 30
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2015
Page
Number
BASIC FINANCIAL STATEMENTS (CONTINUED):
Exhibit I -Statement of Cash Flows -Proprietary Funds 31
Exhibit J -Statement of Net Position -Fiduciary Funds 33
Exhibit K -Statement of Changes in Net Position -Fiduciary Funds 34
Notes to Basic Financial Statements 35
REQUIRED SUPPLEMENTARY INFORMATION
Schedule 1 -Schedule of Changes in the Net Pension Liability and Related Ratios 126
Schedule 2 -Schedule of Contributions -Defined Benefit Pension Plan 127
Schedule 3 -Schedule of Funding Progress:
Other Post-Employment Benefit Plan 128
Schedule 4 -Budgetary Comparison Schedule -General Fund 129
Schedule 5 -Budgetary Comparison Schedule -Prop A Fire Tax
Special Revenue Fund 130
Note to Required Supplementary Information 131
SUPPLEMENTARY SCHEDULES
General Fund:133
Schedule 6 -Budgetary Comparison Schedule by Department -General Fund 134
Other Governmental Funds -Combining Statements:139
Schedule 7 -Combining Balance Sheet -Other Governmental Funds 140
Schedule 8 -Combining Statement of Revenues, Expenditures and Changes
in Fund Balances -Other Governmental Funds 141
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2015
Page
Number
SUPPLEMENTARY SCHEDULES (CONTINUED)
Other Governmental Funds -Other Special Revenue:143
Schedule 9 -Combining Balance Sheet -Other Special Revenue Funds 146
Schedule 10 -Combining Statement of Revenues, Expenditures and Changes
in Fund Balances -Other Special Revenue Funds 150
Schedule 11 -Schedules of Revenues, Expenditures and Changes in Fund
Balance -Budget and Actual -Special Revenue Funds:
A.Traffic Safety 154
B.Gas Tax 155
C.Housing Mitigation Fees 156
D.Community Development Block Grant 157
E.Public Safety Police Grants 158
F.El Paseo Assessment District 159
G.Landscape and Lighting Districts No. 1-17 160
Other Governmental Funds -Other Debt Service:161
Schedule 12 -Balance Sheet -Other Debt Service Fund 162
Schedule 13 -Statement of Revenues, Expenditures and Changes
in Fund Balances -Other Debt Service Fund 163
Other Governmental Funds -Other Capital Projects:165
Schedule 14 -Combining Balance Sheet -Other Capital Projects Funds 166
Schedule 15 -Combining Statement of Revenues, Expenditures and Changes
in Fund Balances -Other Capital Projects Funds 170
Internal Service Funds:175
Schedule 16 -Combining Statement of Net Position 176
Schedule 17 -Combining Statement of Revenues, Expenditures and Changes
in Fund Net Position 177
Schedule 18 -Combining Statement of Cash Flows 178
Agency Funds:181
Schedule 19 -Combining Statement of Assets and Liabilities -All Agency Funds 182
Schedule 20 -Combining Statement of Changes in Assets and
Liabilities -All Agency Funds 183
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2015
Page
Number
STATISTICAL SECTION
Description of Statistical Section 185
Financial Trends
Net Position by Component 186
Changes in Net Position 187
Fund Balances of Governmental Funds 189
Changes in Fund Balances of Governmental Funds 190
Graphs -Changes in Fund Balances of Governmental Funds 191
Supplemental Historical General Fund Revenues 192
Supplemental Graph -Historical General Fund Revenues 193
Supplemental Historical General Fund Expenditures 194
Supplemental Graph -Historical General Fund Expenditures 195
Supplemental Historical General Revenue and Expenditures Per Capita 196
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 198
Historical Net Assessed Taxable Values Citywide and
Graph -Assessed Valuation Growth 199
Supplemental FY 2015 and 2014 Breakdown of Basic 1% Property
Tax Rate Not in Redevelopment Project Area 200
Property Tax Rates Direct and Overlapping Property Tax Rates 201
Principal Property Taxpayers 202
Property Tax Levies and Collections 203
Supplemental Top 25 Sales Tax Generators and
Graph -Historical Sales Tax Trends 204
Supplemental Taxable Sales by Category 205
Supplemental Principal Sales Tax Remitters 206
Debt Capacity
Ratios of Outstanding Debt by Type 207
Ratios of General Bonded Debt Outstanding 208
Supplemental Special Assessment Information 209
Direct and Overlapping Government Activities Debt 210
Legal Debt Margin Information 211
Pledged-Revenue Coverage 212
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2015
Page
Number
STATISTICAL SECTION
(CONTINUED)
Demographic and Economic Information
Demographic and Economic Statistics 213
Principal Employers 214
Supplemental Miscellaneous Statistics 215
Operating Information
Full-time Equivalent City Government Employees by Function/Program 216
Operating Indicators by Function/Program 217
Capital Asset Statistics by Function/Program 218
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION
Redevelopment Agency Project Areas Map 221
Project Area Statistics 223
Tax Allocation Bond Issue Information 224
FY 2014/2015 Breakdown of Basic 1% Property Tax Levy Rates 225
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 -Original 226
Change in Taxable Values:
Redevelopment Project Area No. 1 -Original 227
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 -Amended 228
Change in Taxable Values:
Redevelopment Project Area No. 1 -Amended 229
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 2 230
Change in Taxable Values:
Redevelopment Project Area No. 2 231
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 3 232
Change in Taxable Values:
Redevelopment Project Area No. 3 233
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 4 234
Change in Taxable Values:
Redevelopment Project Area No. 4 235
Historical Tax Increment -Redevelopment Property
Tax Trust Fund Summary 236
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xii
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xiii
CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2015
City Council - Manager Form of Government
CITY COUNCIL
SUSAN MARIE WEBER
Mayor
ROBERT A. SPIEGEL
Mayor Pro-Tempore
JAN C. HARNIK SABBY JONATHAN VAN G. TANNER
Council Member Council Member Council Member
CITY ADMINISTRATION
JOHN M. WOHLMUTH
City Manager
City Attorney - Best, Best & Krieger David J. Erwin
Director of Finance/City Treasurer Paul S. Gibson
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
JOHN M. WOHLMUTH
Executive Director
2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and
Members of the City Council
City of Palm Desert, California
Report on Financial Statements
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, 2015, and the related notes to the basic financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these basic financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the basic financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the basic financial statements.The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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Opinions
In our opinion, the basic 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 30,2015, 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.
Emphasis of Matter
As discussed in Note 19 to the financial statements, the City’s governmental activities net position was
restated. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis,the schedule of changes in the net pension liability and related
ratios, the schedule of contributions -defined benefit pension plan,the schedule of funding progress -
other post-employment benefit plan,and the budgetary comparison schedules for the General Fund and
the Prop A Fire Tax Special Revenue Fund, identified as Required Supplementary Information (RSI) in
the accompanying table of contents, be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the RSI 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 the
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, supplementary
schedules and statistical section are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
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Other Matters (Continued)
Other Information (Continued)
The supplementary schedules are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such 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 schedules are fairly stated in all material respects in relation to the basic
financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 9,2015,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 to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal
control over financial reporting and compliance.
Irvine, California
December 9, 2015
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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, 2015 provides:a comparison of current year to prior year ending results based on the
government-wide 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 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 exceeded its liabilities by $756.58 million (net position).
The City’s governmental activities net position decreased $31.09 million, and the net position of
the business-type activities decreased $0.50 million.
During the year, the City’s revenues were $93.62 million and expenses were $88.12 million in its
governmental activities, excluding transfers,compared to fiscal year 2014, where revenues were
$95.77 million and expenses were $86.07 million.
In the City’s business-type activities, expenses were $0.06 million more than the $9.31 million
generated in green fees, merchandise sales, rental income and other revenues compared to the
prior year, where business-type activities revenues were $0.20 million less than its expenses.
The City’s governmental activities program revenues and general revenues decreased by $2.15
million, or 2.24 percent from prior year, while program expenses increased $2.05 million, or 2.38
percent from prior year.
Business-type activities revenues increased $0.14 million,from $9.17 million to $9.31 million.
Expenses remained unchanged from the prior year at $9.37 million.
The revenues available for expenditures were $1.59 million more than budgeted in the General
Fund. The City kept General Fund expenditures within spending limits by $2.37 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. Fund financial statements start on Page 22.
For governmental activities, these fund statements tell how these services were financed in the short term
as well as what remains for future spending. 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.
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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, 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.), police and fire protection, public works,
parks &recreation,and culture departments. Property taxes, sales tax, transient occupancy tax, user
fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and
other revenues finance these activities.
Business-type activities –The City charges a fee to customers to cover all or most of the cost of certain
services it provides. The City’s municipal golf course, Desert Willow, and the City’s Parkview Office
Complex activities are reported in this category.
Component unit activities –The City includes one separate legal entity in its report –the Palm Desert
Recreation Facilities Corporation. Although legally separate, this “component unit” is important because
the City is financially accountable for it.
REPORTING THE CITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements:
The fund financial statements provide detailed information about the most significant funds and other
funds, not the City as a whole. Some funds are required to be established by State law and by bond
covenants. However, management established many other funds to help it control and manage money
for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants,
and other resources. The City has 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.
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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 –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
private-purpose trust fund and certain agency funds held on behalf of developers and its employees’
retiree service stipend fund. The City’s fiduciary activities are reported in separate Statements of Net
Position, Statement of Changes in Net Position, Statement of Assets and Liabilities, and Statement of
Changes in Assets and Liabilities. We exclude these activities from the City’s other financial statements
because the City cannot use these assets to finance its operations. The City is responsible for ensuring
that the assets reported in these funds are used for their intended purposes.
THE CITY AS A WHOLE
The City’s combined net position decreased $31.59 million from $788.17 million to $756.58 million. A
separate review of the net change in the governmental and business-type activities is provided for the
reader. Our analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City’s
governmental and business-type activities.
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2015 2014 2015 2014 2015 2014
Current and restricted assets 279.69$ 281.52$ 5.25$ 4.82$ 284.94$ 286.34$
Capital assets 473.72 466.25 72.56 73.23 546.28 539.48
TOTAL ASSETS 753.41 747.77 77.81 78.05 831.22 825.82
Deferred outflows of resources 3.39$ 0.02$ -$ -$ 3.39$ 0.02$
Long-term liabilities
outstanding 43.87 11.96 1.44 1.22 45.31 13.18
Other liabilities 26.62 23.59 0.94 0.90 27.56 24.49
TOTAL LIABILITIES 70.49 35.55 2.38 2.12 72.87 37.67
Deferred inflows of resources 5.16$ -$ -$ -$ 5.16$ -$
Net position:
Net investment in capital
assets 473.72 466.25 71.13 72.01 544.85 538.26
Restricted 135.90 140.46 - - 135.90 140.46
Unrestricted 71.53 105.53 4.30 3.92 75.83 109.45
TOTAL NET
POSITION 681.15$ 712.24$ 75.43$ 75.93$ 756.58$ 788.17$
TABLE 1
NET POSITION
As of June 30, 2015 and 2014
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
-
200
400
600
800
1,000
1,200
2015 2014 2015 2014 2015 2014
Governmental
Activities
Business-Type
Activities
Total
Dollars in Millions
Table 1 -Graph
Total Assets & Liabilities
Total Assets
Total Liabilities
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The City’s governmental activities net position decreased by 4.37 percent, or $31.09 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 10.50 percent of the
overall total net position. Unrestricted net position decreased $34.00 million from $105.53 million in 2014
to $71.53 million in 2015. The decrease was due to the City implementing GASB Statements No. 68 and
71 that resulted in a prior year restatement that decreased the City’s net positon by $39.73 million.
The decrease in restricted net position of $4.56 million was due to the following:restricted capital projects
decreased by $1.59 million due to capital projects expenses;restricted special projects decreased by
$2.97 million.The majority of the decrease is attributable to the $4.65 million repayment of debt by the
energy independence fund.
Investment in capital assets increased $7.47 million.The calculation of Investment in capital assets
includes outstanding debt used to purchase or construct the City’s capital assets.Major additions
included the Monterey interchange improvements totaling $5.58 million and the construction of an
affordable housing apartment complex totaling $11.59 million.
The net position of the business-type activities saw a decrease of $0.50 million, from $75.93 million to
$75.43 million. The main factors for the decrease in net position were the transfer out and depreciation
expense. Total liabilities increased $0.26 million from $2.12 million in 2014 to $2.38 million in 2015.The
increase is due to the new golf cart lease (see Note 6).
The City’s governmental activities total assets and deferred outflow of resources increased $9.01 million
from $747.79 million in 2014 to $756.80 million in 2015. The increase is attributable to capital assets
increase of $7.47 million.
Total liabilities and deferred inflows increased by $40.10 million from $35.55 in 2014 to $75.65 million in
2015. As mentioned above, the City implementing GASB Statements No. 68 and 71, which resulted in an
increase in the City’s debt of $39.73 million (see Note 1d and Note 8).
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2015 2014 2015 2014 2015 2014
REVENUES:
Program Revenues:
Charges for services 22.65$ 22.15$ 9.20$ 9.06$ 31.85$ 31.21$
Operating grants and
contributions 7.51 9.74 - - 7.51 9.74
Capital grants and
contributions 19.30 21.09 0.05 0.10 19.35 21.19
General Revenues:
Property taxes 10.29 9.57 - - 10.29 9.57
Transient occupancy tax 10.93 10.06 - - 10.93 10.06
Sales tax 17.61 17.29 - - 17.61 17.29
Other taxes 3.10 3.03 - - 3.10 3.03
Investment earnings 0.49 0.36 0.01 0.01 0.50 0.37
Gain on sale of capital assets 0.01 0.49 0.05 - 0.06 0.49
Other revenues 1.73 1.99 - - 1.73 1.99
TOTAL REVENUES 93.62 95.77 9.31 9.17 102.93 104.94
EXPENSES:
General government 16.34 19.19 - - 16.34 19.19
Housing and redevelopment 11.67 7.85 - - 11.67 7.85
Public safety 32.08 29.34 - - 32.08 29.34
Parks, recreation and culture 8.60 8.33 - - 8.60 8.33
Public works 19.14 21.12 - - 19.14 21.12
Interest on long-term debt 0.29 0.24 - - 0.29 0.24
Golf Course-Desert Willow - - 8.43 8.45 8.43 8.45
Office Complex-Parkview - - 0.94 0.92 0.94 0.92
TOTAL EXPENSES 88.12 86.07 9.37 9.37 97.49 95.44
INCREASE (DECREASE ) IN NET
POSITION BEFORE TRANSFERS 5.50 9.70 (0.06) (0.20) 5.44 9.50
Transfers 0.44 0.44 (0.44) (0.44) - -
Gain on transfer to Successor Agency - - - - - -
INCREASE (DECREASE) IN NET POSITION 5.94 10.14 (0.50) (0.64) 5.44 9.50
BEGINNING NET POSITION, AS RESTATED 675.21 702.10 75.93 76.57 751.14 778.67
ENDING NET POSITION 681.15$ 712.24$ 75.43$ 75.93$ 756.58$ 788.17$
TABLE 2
CHANGES IN NET POSITION
As of June 30, 2015 and 2014
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
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Table 2-Graph
Changes in Net Position
Governmental Activities
Total revenue, excluding transfers decreased from $95.77 million to $93.62 million, a 2.24 percent
decrease. The decrease is the result of both the operating grants and capital grants and contributions
combined decrease of $4.02 million.Factors that contributed to the changes in revenues are as follows:
In the prior fiscal year, the Housing Authority received $9.16 million from moneys disbursed by
the County Auditor-Controller from the Successor Agency’s Redevelopment Property Tax Trust
Fund (RPTTF), pursuant to an obligation of the Successor Agency to provide certain funds for the
development to affordable housing units.The Successor Agency listed such obligation on every
Recognized Obligation Payment Schedules (ROPS), without objection from the State of California
Department of Finance (DOF) until the ROPS for the period covering July 1, 2014 through
December 31, 2014 (ROPS 14-15A). Starting with ROPS 14-15A, the DOF has disapproved the
relevant items on the ROPS, making the determination that they are not enforceable obligations
of the Successor Agency, and as the result, no RPTTF funding was received therefor in fiscal
year 2014-15.
Decrease of $1.59 million due to the denial by the State of California of the semiannual allocation
for capital asset replacement on the ROPS.
In the prior year, the City received $6.39 million in capital contributions of lands and buildings
representing government-use property transfers from the Successor Agency to the City pursuant
to the Long Range Property Management Plan, as approved by the California State Department
of Finance.Current year capital contribution from the Successor Agency was $0.48 million.
The Housing Authority received intergovernmental revenues for the construction of the Carlos
Ortega Villas apartment complex totaling $11.61 million.
-
100
200
300
400
500
600
700
800
2015 2014
Governmental Activities
Dollars in millions
-
10
20
30
40
50
60
70
80
2015 2014
Business-Type Activities
Beginning Net
Position
Total Revenues
Ending Net
Position
Total Expenses
-12 -
Total expenses increased from $86.07 million to $88.12 million, a 2.38 percent increase. General
government decreased $2.85 million, Housing and Redevelopment increased $3.82 million, public safety
increased $2.74 million and public works decreased $1.98 million.The City continues to find ways to
operate without the assistance of the former Redevelopment Agency.All transactions of the former
Redevelopment Agency are reflected on pages 33 and 34 under the title of Successor Agency to the
Palm Desert Redevelopment Agency Private-Purpose Trust Fund.
The following schedule represents the net cost of providing services:
Governmental Activities
Net (Expense) Revenue
(In Millions)
Business-type Activities
Business-type activities revenues increased $0.14 million from $9.17 million to $9.31 Million, a 1.50
percent increase. The overall increase was related to the charges for services. The major increase was in
merchandise revenues which recognized a $0.14 million increase from the prior year. Additionally, both
the Desert W illow Golf Resort and the Parkview Office diligently focused on retaining the market share in
their respective industries. The Desert Willow Golf Resort continued to utilize a strategic pricing structure
which allowed the golf resort to retain the course utilization with minimal impact to the overall average
green fee. The overall rounds mix and play remained consistent with the previous years.
The Parkview Office Complex revenues slightly increased resulting from the addition of two new tenants
and the annual rental rate adjustments stipulated in the lease agreement with the tenants.
2015 2014
General government
Housing and redevelopment
(11.96)
8.58
($8.59)
9.81
Public safety (21.71) (18.67)
Parks, recreation and culture (5.96) (5.48)
Public works (7.31) (9.92)
Interest on long term debt (0.29) (0.24)
Total ($38.65)($33.09)
21%
-16%
39%
11%
12%1%
2015
Governmental Activities
Net (Expense) Revenue
17%
-19%34%
10%
19%
1%
2014
Governmental Activities
Net (Expense) Revenue
General government
Housing and
redevelopment
Public safety
Parks, recreation &
culture
Public works
Interest on long term
debt
-13 -
Operating expenses for business-type activities remained constant at $9.37 million. Both Desert Willow
and the City continued to implement effective and efficient methods to control costs without impacting
service.
THE CITY’S FUNDS
On Page 22, the governmental funds balance sheet is shown. The combined fund balance of $227.20
million decreased from $238.65 million, or 4.79 percent. This total includes the General Fund balance of
$79.81 million, which increased by $1.44 million from prior year. The City’s General Fund balance has a
nonspendable balance of $10.31 million, which includes advances, loans and notes, and prepaid costs,
$1.77 million in assigned fund balance,and $67.73 million of unassigned fund balance. The change in the
General Fund’s balance was due to growth in sales and transient occupancy tax, and an increase in
transfers in for street resurfacing reimbursement.Other major funds balance changes are noted below:
The Prop A Fire Tax Special Revenue Fund: The fund balance decreased from $2.46 million to
$1.81 million, a $0.65 million decrease.The City transferred $2 million to cover part of the
shortage.Increase in contract costs was the major factor in the fund balance decrease.
The Low Moderate Housing Asset Fund:The fund balance decreased by $0.86 million or 2
percent. The low moderate housing asset fund sold property below the cost in order to assist low-
income residents to purchase homes held in inventory ensuring an affordable housing cost.
Measure A Special Revenue Fund: the fund balance decreased from $18.54 million to $14.78
million, a 20.28 percent decrease. The decrease in the fund balance is due to construction and
maintenance expenditures.
Housing Authority Fund: This fund had a minor decrease of $0.14 million from $20.85 million to
$20.71 million. The major factor in the decrease was the transfer out to the RDA Low Income
Housing Fund for operational costs related to housing program expenditures including ownership
of 1,010 affordable housing units.
More detailed information about the combined fund balance reserves is presented in Note 9 to the
financial statements.
General Fund Budgetary Highlights
Based upon recommendations from the staff, the City Council revised the budget several times during the
year. Adjustments were made on a monthly basis as City staff requested additional appropriations to
cover the cost of projects that either had change orders for additional work, or were underestimated. At
mid-year, adjustments were made as department heads were requested to adjust their budgets to meet
current demands. At year-end, budgets were adjusted for unanticipated expenditures. All amendments
that either increase or decrease appropriations are approved by the City Council.
For the City’s general fund, the actual ending revenues of $52.23 million were $1.59 million more than the
final budgeted revenues of $50.64 million.Sales and transient occupancy taxes continue to be the top
two revenue generators for the City totaling $28.36 million,or 54.30 percent of the General Fund budget.
The General Fund actual ending expenditures of $50.80 million were $2.37 million less than the final
budget of $53.17 million. There were changes in the original budget compared to the final budget during
the year. The original expenditure budget was $48.25 million compared to the final budget of $53.17
million, a $4.92 million increase. The major change was due to the appropriations of an additional $1.52
million in transfers to other funds and $1 million in retiree funding.In addition to the transfers, the street
resurfacing budget increased $1.05 million.
-14 -
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2015, the City had $546.28 million invested in a broad range of capital assets, including
land, streets, bridges, drainage systems, traffic lights, parks, buildings, art work, vehicles, golf courses
and equipment (See Table 3).This amount represents a net increase (including additions and
deductions) of $6.80 million over the prior year.
2015 2014 2015 2014 2015 2014
Land 79.25$ 78.44$ 52.74$ 52.74$ 131.99$ 131.18$
Construction-in-progress 26.14 8.24 - - 26.14 8.24
Buildings and improvements
other than buildings 99.56 106.03 18.11 18.89 117.67 124.92
Machinery and equipment 2.18 2.03 1.71 1.60 3.89 3.63
Infrastructure & right-of-way 266.59 271.51 - - 266.59 271.51
TOTALS 473.72$ 466.25$ 72.56$ 73.23$ 546.28$ 539.48$
TABLE 3
CAPITAL ASSETS AT YEAR-END
For the years ended June 30, 2015 and 2014
TotalActivities
Business-TypeGovernmental
Activities
(NET OF DEPRECIATION, IN MILLIONS)
-
100
200
300
400
500
600
700
2015 2014 2015 2014 2015 2014
Governmental
Activities
Business-Type
Activities
Total
Dollars in millions
Table 3 -Graph
Capital Assets at Year-End
(Net of Depreciation in Millions)
Land
Construction in Progress
Buildings and Improvements
Equipment
Infrastructure
Totals
-15 -
This year’s major additions included (in millions):
Affordable housing apartment complex $ 11.59
Monterey interchange improvements 5.58
Equipment purchases 0.89
Land acquisitions 0.80
$ 18.86
The City’s fiscal year 2016 capital budget calls for it to spend an additional $15.19 million plus continuing
capital projects spending of $39.87 million from prior year,with the majority being spent on street
improvements and development of a low-income housing apartment project. Projects will be funded with
existing bond proceeds or funds that have been designated by an outside party for specific use. More
detailed information about the City’s capital assets is presented in Note 1g and Note 5 to the financial
statements.
Debt
At year-end, the City’s governmental activities had $43.87 million in bonds, claims,compensated
absences and pension liability versus $11.96 million last year, an increase of $31.91 million as shown in
Table 4. The major cause for the increase was the required GASB Statements No. 68 and 71 recording of
the city’s pension liability.Prior to GASB Statements No. 68 and 71, the city’s pension liability was a
footnote in the financial statements that included the city’s estimated pension liability.
2015 2014 2015 2014 2015 2014
Compensated absences payable 2.67$ 2.69$ -$ -$ 2.67$ 2.69$
Capital leases - - 1.44 1.22 1.44 1.22
Claims and judgements payable 0.30 1.02 - - 0.30 1.02
Special assessments debt with
government commitment 1.49 1.53 - - 1.49 1.53
Limited Obligation Improvement
bonds 1.81 2.06 - - 1.81 2.06
Lease revenue bond - 4.66 - - - 4.66
Pension liability 37.60 - - 37.60 -
TABLE 4
OUTSTANDING DEBT, AT YEAR-END
For the years ended June 30, 2015 and 2014
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
-16 -
The City was able to meet its current year debt obligation in a timely manner. Debts issued in the prior
year have been used to finance various capital projects.
The City’s business-type activities debt increased $0.22 million from $1.22 million to $1.44 million. Debt in
the business-type activities is for capital leasing of equipment. The City’s golf course uses leasing as an
alternative to purchasing golf carts and maintenance equipment to maintain a cash flow to operate the
day-to-day activities. The increase in the City’s business-type activities debt was directly related to the
new golf carts leases in the amount of $0.98 million. The City’s business-type activities were able to meet
its current year debt obligation in a timely manner. More detailed information about the City’s long-term
liabilities is presented in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for fiscal year 2016, management focused on three core principles:1) minimize
the impact of budget cuts to key services and maintain the level of service expected by residents,
businesses, and visitors; 2) minimize the number of tax and fee adjustments required to maintain existing
service levels; and 3) review standards of infrastructure maintenance and operation and adjust standards
to provide quality of city facilities in line with budget considerations, including but not limited to parks,
roads, and buildings. The following economic factors were considered by management:
In the five-year capital improvement program, all restricted capital funds have been allocated to
various projects. As a result, any additional projects would require a transfer from the general
fund, which would mean a decrease to the City’s unobligated general fund reserve.A detailed
analysis will be performed and a cost benefit approach will be employed before the general fund
reserves are decreased for capital improvements.
Increase in healthcare and retirement costs.
The 2016 budget is a reflection of the City’s commitment to the residents of Palm Desert. The City’s
conservative approach has provided for a consistently high level of services. The City has made a
commitment to allocate resources for public safety, cultural/social programs, and necessary infrastructure
improvements. A copy of the City’s 2015-2016 financial plan can be obtained by contacting the City’s
Finance Department or visit the City’s website at www.cityofpalmdesert.org.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors,and creditors
with a general overview of the City’s finances and to show the City’s accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Finance Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert,
California 92260-2578, or (760) 346-0611.
Exhibit A
Componen
Uni
Palm Deser
Recreational
Governmental Business-type Facilities
Activities Activities Total Corporation
Cash and investments 160,353,727$ 4,164,814$ 164,518,541$ 72,236$
Receivables:
Accounts 1,790,325 107,129 1,897,454 41,314
otes 1,490,250 - 1,490,250 -
Interes 476,093 - 476,093 -
Loans 11,533,306 - 11,533,306 -
Internal balances 500,000 (500,000) - -
Prepaid costs 923,635 34,831 958,466 9,464
Inventories 31,469 250,566 282,035 45,860
Deposits 15,007,273 - 15,007,273
Due from other governments 11,339,246 - 11,339,246 -
Property held for resale 287,181 - 287,181 -
Due from component uni 285,000 1,185,970 1,470,970 -
Advances to Succesor Agenc 40,476,288 - 40,476,288 -
Restricted assets:
Cash with fiscal agen 26,703,404 - 26,703,404 -
et OPEB asse 8,493,635 - 8,493,635 -
Capital assets, not being depreciate 226,449,293 52,736,087 279,185,380 -
Capital assets, being depreciate 247,273,401 19,828,702 267,102,103 -
TOTAL ASSETS 753,413,526 77,808,099 831,221,625 168,874
DEFERRED OUTFLOWS OF RESOURCES:
Deferred outflows from pensions 3,393,041 - 3,393,041 -
Accounts payable 10,404,390 596,850 11,001,240 49,334
Accrued liabilities 392,200 171,687 563,887 53,126
Interest payable 99,507 - 99,507 -
Unearned revenues 15,171,948 143,665 15,315,613 91,430
Deposits payable 558,835 28,150 586,985 -
Due to primary governmen - - - 1,470,970
Long-term liabilities:
Due within one yea 754,000 537,242 1,291,242 -
Due in more than one yea 5,520,605 897,804 6,418,409 -
Pension liabilit 37,591,271 - 37,591,271 -
TOTAL LIABILITIES 70,492,756 2,375,398 72,868,154 1,664,860
DEFERRED INFLOWS OF RESOURCES:
Deferred inflows from pensions 5,160,141 - 5,160,141 -
ET POSITION:
et investment in capital assets 473,722,694 71,129,743 544,852,437 -
Restricted for:
Special projects 80,293,982 - 80,293,982 -
Capital projects 55,606,538 - 55,606,538 -
Unrestricted (deficit) 71,530,456 4,302,958 75,833,414 (1,495,986)
TOTAL NET POSITION 681,153,670$ 75,432,701$ 756,586,371$ 1,495,986$
See accompanying notes to basic financial statements.
CITY OF PALM DESERT
- 17 -
Primary Governmen
STATEMENT OF NET POSITION
June 30, 2015
ASSETS:
LIABILITIES:
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
Primary Government:
Governmental activities:
General government 16,337,393$ 2,088,393$ 922,734$ 1,363,158$
Housing and redevelopment 11,666,724 7,971,265 - 12,281,184
Public safety 32,077,635 9,987,891 331,138 46,193
Parks, recreation and culture 8,598,242 772,728 1,483,358 379,062
Public works 19,144,213 1,832,241 4,775,664 5,227,418
Interest on long term debt 294,258 - - -
Total governmental activities 88,118,465 22,652,518 7,512,894 19,297,015
Business-type activities:
Desert Willow Golf Course 8,433,267 7,894,676 - 47,768
Office Complex - Parkview 934,296 1,306,042 - -
Total business-type activities 9,367,563 9,200,718 - 47,768
Total primary governmen 97,486,028$ 31,853,236$ 7,512,894$ 19,344,783$
Component Unit:
Palm Desert Recreational Facilities Corp. 2,651,665$ 2,671,630$ -$ -$
General revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues
Change in net position
Net position - beginning of year, as restated
et position - end of yea
See accompanying notes to basic financial statements.
CITY OF PALM DESERT
- 18 -
STATEMENT OF ACTIVITIES
For the year ended June 30, 2015
Functions/Programs
Program Revenue
Exhibit B
Component
Unit
Palm Desert
Recreational
Governmental Business-type Facilities
Activities Activities Total Corporation
(11,963,108)$ -$ (11,963,108)$ -$
8,585,725 - 8,585,725 -
(21,712,413) - (21,712,413) -
(5,963,094) - (5,963,094) -
(7,308,890) - (7,308,890) -
(294,258) - (294,258) -
(38,656,038) - (38,656,038) -
- (490,823) (490,823) -
- 371,746 371,746 -
- (119,077) (119,077) -
(38,656,038) (119,077) (38,775,115) -
- - - 19,965
10,285,701 - 10,285,701 -
10,932,898 - 10,932,898 -
17,610,967 - 17,610,967 -
3,102,431 - 3,102,431 -
494,452 11,774 506,226 -
11,720 47,938 59,658 -
1,726,007 - 1,726,007 -
437,500 (437,500) - -
44,601,676 (377,788) 44,223,888 -
5,945,638 (496,865) 5,448,773 19,965
675,208,032 75,929,566 751,137,598 (1,515,951)
681,153,670$ 75,432,701$ 756,586,371$ (1,495,986)$
- 19 -
Primary Government
Net (Expenses) Revenues and Changes in Net Position
-20 -
THIS PAGE INTENTIONALLY LEFT BLANK
-21 -
FUND FINANCIAL STATEMENTS
Low Moderate
Prop A Housing
General Fire Tax Asset
ASSETS:
Pooled cash and investments 70,831,696$ 2,692,072$ 12,251,419$
Receivables:
Accounts 1,318,074 - 23,093
Assessments - - -
Notes 1,489,000 - 1,250
Interest 209,381 - 41,051
Loans 39,806 - 6,798,671
Prepaid costs 923,287 - -
Due from other governments 3,279,985 454,147 -
Due from other funds 2,500,000 - 4,531,000
Deposits - - -
Advances to Successor Agency 9,236,000 - 17,821,288
Inventories 26,368 - -
Property held for resale - - 287,181
Due from component unit 285,000 - -
Restricted assets:
Cash and investments with fiscal agent - - -
TOTAL ASSETS 90,138,597$ 3,146,219$ 41,754,953$
LIABILITIES:
Accounts payable 5,462,170$ 1,339,281$ 6,216$
Accrued liabilities 281,161 - -
Due to other funds 1,847,200 - -
Unearned revenues 19,479 - -
Deposits payable - - -
TOTAL LIABILITIES 7,610,010 1,339,281 6,216
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue 2,717,918 - 33,938
FUND BALANCES:
Nonspendable 10,312,261 - -
Restricted - 1,806,938 41,714,799
Committed - - -
Assigned 1,771,278 - -
Unassigned 67,727,130 - -
TOTAL FUND BALANCES 79,810,669 1,806,938 41,714,799
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 90,138,597$ 3,146,219$ 41,754,953$
See accompanying notes to basic financial statements.
CITY OF PALM DESERT
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2015
Special Revenue Funds
- 22 -
RESOURCES AND FUND BALANCES
LIABILITIES, DEFERRED INFLOWS OF
Exhibit C
Other Total
Housing Governmental Governmental
Measure A Authority Funds Funds
14,527,336$ 16,607,246$ 33,445,582$ 150,355,351$
- 24,069 425,089 1,790,325
- - 1,347,184 1,347,184
- - - 1,490,250
- 11,639 214,022 476,093
- - 4,694,829 11,533,306
- - 348 923,635
5,233,821 1,911,636 459,657 11,339,246
- - 500,000 7,531,000
15,007,273 - - 15,007,273
- - 13,419,000 40,476,288
- - 5,101 31,469
- - - 287,181
- - - 285,000
342,603 4,847,951 21,512,850 26,703,404
35,111,033$ 23,402,541$ 76,023,662$ 269,577,005$
747,492$ 2,088,851$ 708,130$ 10,352,140$
- 102,848 8,191 392,200
- - 5,183,800 7,031,000
15,007,273 16,047 129,149 15,171,948
- 481,252 77,583 558,835
15,754,765 2,688,998 6,106,853 33,506,123
4,576,270 - 1,545,109 8,873,235
- - 348 10,312,609
14,779,998 8,838,055 39,121,422 106,261,212
- 11,875,488 5,077,399 16,952,887
- - 24,172,531 25,943,809
- - - 67,727,130
14,779,998 20,713,543 68,371,700 227,197,647
35,111,033$ 23,402,541$ 76,023,662$ 269,577,005$
- 23 -
Funds (Continued)
Special Revenue
-24 -
THIS PAGE INTENTIONALLY LEFT BLANK
Exhibit D
Total fund balance for governmental funds 227,197,647$
Amounts reported for governmental activities in the Statement of Net Position ar
different because:
When capital assets (land, buildings, equipment, etc.) that are to be used in
governmental activities are purchased or constructed, the costs of those asset
are reported as expenditures in governmental funds. However, the Statemen
of Net Position includes those capital assets and contribution among the asset
of the City as a whole:
Beginning Balance, net depreciation 464,965,573$
Current year additions 19,341,235
Current year deletions (1,071,998)
Current year depreciation (11,615,255)
Contribution 644,784
Ending Balance, net depreciation 472,264,339
Long-term debt activities have not been included in the governmental fun
activities:
Long-term deb (3,601,463)
Interest on long-term debt is not accrued in governmental funds, but rather i
recognized as an expenditure when due. (99,507)
Because the focus of governmental funds is on short-term financing, some asset
will not be available to pay for current-period expenditures. Those assets (fo
example, receivables) are offset by deferred inflows of resources in the governmental
funds and, thus, are not included in fund balance:
Palm Desert Recreational Facilities Corporation - relates to the amount of ren
owed by component unit to City's General Fun 285,000
Measure A Special Revenue Fund grants not received in available period 4,576,270
Interest that was not paid at year-en 317,785
Sales tax 291,996
Successor Agency (former Redevelopment Agency) land purchase from Cit 2,055,000
7,526,051
Pension related debt applicable to the City's governmental activities are not due an
ayable in the current period and accordingly are not reported as fund liabilities.
Deferred outflows of resources and deferred inflows of resources related to pensions
are only reported in the Statement of Net Position as the changes in these amount
effects only the government-wide statements for governmental activities
Deferred outflows of resources 3,393,041
Deferred inflows of resources (5,160,141)
Pension liabilit (37,591,271)
(39,358,371)
Other post employment benefit asset is not available to fund current expenditure
for governmental funds and therefore is not reported as an asset in the
governmental funds.8,493,635
Internal service fund 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. 8,731,339
et pos t on o governmenta act v t e 681 153 670$
See accompanying notes to basic financial statements.
CITY OF PALM DESERT
June 30, 2015
- 25 -
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
Low Moderate
Prop A Housing
General Fire Tax Asset
REVENUES:
Taxes 44,442,260$ 5,136,552$ -$
Special assessments collected - 2,097,968 -
Licenses and permits 1,467,668 - -
Intergovernmental revenues 1,802,929 982,099 -
Rental income 150,550 - 3,200
Charges for services 1,051,639 - -
Investment earnings 416,656 5,966 120,533
Fines and forfeitures 88,053 - -
Contributions from property owners - - -
Miscellaneous 636,056 14,689 128,873
TOTAL REVENUES 50,055,811 8,237,274 252,606
EXPENDITURES:
Current:
General government 14,056,713 - -
Housing and redevelopment - - 3,280,608
Public safety 20,631,915 10,856,288 -
Parks, recreation and culture 3,912,300 - -
Public works 7,343,333 - -
Contributions to property owners - - -
Capital outlay 357,926 32,718 -
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
TOTAL EXPENDITURES 46,302,187 10,889,006 3,280,608
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,753,624 (2,651,732) (3,028,002)
OTHER FINANCING SOURCES (USES):
Sale of property - - 2,163,222
Transfers in 2,179,472 2,000,000 -
Transfers out (4,496,373) - -
TOTAL OTHER FINANCING
SOURCES (USES) (2,316,901) 2,000,000 2,163,222
NET CHANGE IN FUND BALANCES 1,436,723 (651,732) (864,780)
FUND BALANCES - BEGINNING OF YEAR 78,373,946 2,458,670 42,579,579
FUND BALANCES - END OF YEAR 79,810,669$ 1,806,938$ 41,714,799$
See accompanying notes to basic financial statements.
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2015
Special Revenue Funds
- 26 -
Exhibit E
Other Total
Housing Governmental Governmental
Measure A Authority Funds Funds
2,579,446$ -$ 413,111$ 52,571,369$
- - 960,798 3,058,766
- - 289,582 1,757,250
1,682,707 11,612,044 2,901,525 18,981,304
- 5,507,012 - 5,660,762
- - 767,825 1,819,464
56,967 48,325 594,215 1,242,662
- - 136,559 224,612
- - 9,168 9,168
- 100 1,598,205 2,377,923
4,319,120 17,167,481 7,670,988 87,703,280
- - 1,411,033 15,467,746
- 4,975,399 1,093,014 9,349,021
- - 331,011 31,819,214
- - 2,324,417 6,236,717
2,435,389 - 3,303,666 13,082,388
- - 49 49
5,641,977 11,598,816 1,708,550 19,339,987
- - 4,944,000 4,944,000
- - 240,219 240,219
8,077,366 16,574,215 15,355,959 100,479,341
(3,758,246) 593,266 (7,684,971) (12,776,061)
- - - 2,163,222
- - 1,953,387 6,132,859
- (733,014) (1,741,972) (6,971,359)
- (733,014) 211,415 1,324,722
(3,758,246) (139,748) (7,473,556) (11,451,339)
18,538,244 20,853,291 75,845,256 238,648,986
14,779,998$ 20,713,543$ 68,371,700$ 227,197,647$
- 27 -
Funds (Continued)
Special Revenue
Exhibit F
Net change in fund balances - total governmental funds (11,451,339)$
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 a depreciation expense. This is the amount by which
capital outlays exceeded depreciation and deletions in the current period:
Current year additions 19,341,235$
Current year deletions (1,071,998)
Current year depreciation (11,615,255)
Contributions of property from Successor Agency 644,784
7,298,766
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Position. 4,944,000
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Net change in accrued interest for the current period (54,039)
Net change in claims and judgments for the current period 721,869
667,830
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:
Unavailable revenue 2,969,008
Revenues will not be collected within 60 days of the City's fiscal year-end and,
therefore, are not considered available in the governmental funds:
Interest on note issued by the City 56,688
Sales tax true-up from the State 45,833
102,521
Current year change for other post employment benefit asset. 45,024
Pension expense reported in the governmental funds includes the annual required
contributions. In the Statement of Activities, pension expense includes the change
in the net pension liability, and related change in pension amounts for deferred
outflows of resources and deferred inflows of resources 370,529
Internal service funds are used by management to charge the costs of certain activities,
such as equipment and compensated absences. The net revenues (expenses) of the
internal service funds are reported with governmental activities. 999,299
Change in net position of governmental activitie 5,945,638$
See accompanying notes to basic financial statements.
CITY OF PALM DESERT
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2015
- 28 -
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Exhibit G
Major Other
Fund Fund Governmental
Desert Parkview Total Activities-
Willow Office Enterprise Internal
Golf Course Complex Funds Service Funds
ASSETS:
CURRENT ASSETS:
Cash and investments 796,787$ 3,368,027$ 4,164,814$ 9,998,376$
Receivables:
Accounts 24,717 82,412 107,129 -
Prepaid costs 32,795 2,036 34,831 -
Inventories 250,566 - 250,566 -
Due from component unit (PDRFC) 1,185,970 - 1,185,970 -
TOTAL CURRENT ASSETS 2,290,835 3,452,475 5,743,310 9,998,376
CAPITAL ASSETS:
Nondepreciable 52,736,087 - 52,736,087 421,272
Depreciable, net 12,134,433 7,694,269 19,828,702 1,037,083
CAPITAL ASSETS, NET 64,870,520 7,694,269 72,564,789 1,458,355
TOTAL ASSETS 67,161,355 11,146,744 78,308,099 11,456,731
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable 562,173 34,677 596,850 52,250
Accrued liabilities 171,687 - 171,687 -
Deposits payable - 28,150 28,150 -
Unearned revenues 143,479 186 143,665 -
Due to other funds 500,000 - 500,000 -
Compensated absences - - - 600,000
Capital leases 537,242 - 537,242 -
TOTAL CURRENT LIABILITIES 1,914,581 63,013 1,977,594 652,250
NONCURRENT LIABILITIES:
Compensated absences - - - 2,073,142
Capital leases 897,804 - 897,804 -
TOTAL NONCURRENT LIABILITIES 897,804 - 897,804 2,073,142
TOTAL LIABILITIES 2,812,385 63,013 2,875,398 2,725,392
NET POSITION:
Net investment in capital assets 63,435,474 7,694,269 71,129,743 1,458,355
Unrestricted 913,496 3,389,462 4,302,958 7,272,984
TOTAL NET POSITION 64,348,970$ 11,083,731$ 75,432,701$ 8,731,339$
See accompanying notes to basic financial statements.
CITY OF PALM DESERT
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2015
- 29 -
Enterprise Funds
Business-type Activities-
Exhibit H
Major Other
Fund Fund Governmental
Desert Parkview Total Activities-
Willow Office Enterprise Internal
Golf Course Complex Funds Service Funds
OPERATING REVENUES:
Fees and rentals 6,657,600$ 1,296,630$ 7,954,230$ -$
Merchandise sales 1,223,520 - 1,223,520 -
Miscellaneous 13,556 9,412 22,968 2,800
TOTAL OPERATING REVENUES 7,894,676 1,306,042 9,200,718 2,800
OPERATING EXPENSES:
Maintenance and operations 4,320,719 327,922 4,648,641 9,065
Cost of merchandise 509,938 - 509,938 -
General and administrative 2,187,309 182,861 2,370,170 63,704
Depreciation and amortization 1,286,337 423,513 1,709,850 247,720
TOTAL OPERATING EXPENSES 8,304,303 934,296 9,238,599 320,489
OPERATING INCOME (LOSS) (409,627) 371,746 (37,881) (317,689)
NONOPERATING REVENUES (EXPENSES):
Interest revenue 96 11,678 11,774 21,108
Interest expense (128,964) - (128,964) -
Gain on sale of capital assets 47,938 - 47,938 11,720
TOTAL NONOPERATING
REVENUES (EXPENSES) (80,930) 11,678 (69,252) 32,828
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS
AND TRANSFERS (490,557) 383,424 (107,133) (284,861)
CAPITAL CONTRIBUTIONS 47,768 - 47,768 8,160
TRANSFERS IN - - - 1,276,000
TRANSFERS OUT - (437,500) (437,500) -
CHANGE IN NET POSITION (442,789) (54,076) (496,865) 999,299
NET POSITION - BEGINNING OF YEAR 64,791,759 11,137,807 75,929,566 7,732,040
ET POSITION - END OF YEAR 64,348,970$ 11,083,731$ 75,432,701$ 8,731,339$
See accompanying notes to basic financial statements.
For the year ended June 30, 2015
- 30 -
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
Enterprise Funds
Business-type Activities-
Exhibit I
Major Other
Fund Fund Governmental
Desert Parkview Total Activities-
Willow Office Enterprise Internal
Golf Course Complex Funds Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers 7,940,248$ 1,272,519$ 9,212,767$ 2,800$
Payments to employees - - - (82,402)
Payments to suppliers (6,997,804) (507,532) (7,505,336) (9,065)
NET CASH PROVIDED BY
OPERATING ACTIVITIES 942,444 764,987 1,707,431 (88,667)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Interest paid on loan (20,000) (20,000)
Cash received from other funds - - - 3,976,000
Cash paid to other funds - (437,500) (437,500) -
NET CASH PROVIDED (USED) BY
NONCAPITAL AND RELATED
FINANCING ACTIVITIES (20,000) (437,500) (457,500) 3,976,000
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (16,956) (151,448) (168,404) (469,318)
Proceeds on sale of assets - - - 24,300
Principal paid on leases (566,299) - (566,299) -
Interest paid on leases (108,964) - (108,964) -
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (692,219) (151,448) (843,667) (445,018)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 96 11,678 11,774 21,108
NET INCREASE IN CASH
AND CASH EQUIVALENTS 230,321 187,717 418,038 3,463,423
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 566,466 3,180,310 3,746,776 6,534,953
CASH AND CASH EQUIVALENTS -
END OF YEAR 796,787$ 3,368,027$ 4,164,814$ 9,998,376$
See accompanying notes to basic financial statements. (Continued)
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2015
Enterprise Funds
- 31 -
Exhibit I
Major Other
Fund Fund Governmental
Desert Parkview Total Activities-
Willow Office Enterprise Internal
Golf Course Complex Funds Service Funds
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Operating income (loss) (409,627)$ 371,746$ (37,881)$ (317,689)$
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 1,286,337 423,513 1,709,850 247,720
Changes in assets and liabilities:
(Increase) decrease in receivables, net 13,485 (34,455) (20,970) -
(Increase) decrease in prepaid costs (3,284) (777) (4,061) -
(Increase) decrease in inventories (29,762) - (29,762) -
(Increase) decrease in due
from component unit 46,305 - 46,305 -
Increase (decrease) in accounts payable
and accrued liabilities 53,208 4,028 57,236 -
Increase (decrease) in deposits payable - 746 746 -
Increase (decrease) in unearned revenues (14,218) 186 (14,032) -
Increase (decrease) in compensated absences - - - (18,698)
NET CASH PROVIDED BY
OPERATING ACTIVITIES 942,444$ 764,987$ 1,707,431$ (88,667)$
NONCASH ITEMS:
Noncash items include $47,768 (net value) of capital assets contributed by the City of Palm Desert to Desert Willow Golf Course.
See accompanying notes to basic financial statements.
Enterprise Funds
(CONTINUED)
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2015
Business-type Activities-
- 32 -
CITY OF PALM DESERT
Exhibit
Successor
Agency to th
Palm Desert
Redevelopmen
Agenc
Private-Purpose Agenc
Trust Fund Funds
ASSETS:
Cash and investments 25,686,175$ 13,396,211$
Receivables (net of allowance for uncollectibles):
Accounts 35,000 -
Assessments - 84,632,764
Interest 87,056 3,053
Due from other government - 564,466
Prepaid costs 86,750 4,208
Restricted assets:
Cash with fiscal agen 99,706,796 7,363,290
Capital assets, not being depreciated 41,768,297 -
Capital assets, being depreciated 1,711,729 -
TOTAL ASSETS 169,081,803 105,963,992
DEFERRED OUTFLOWS OF RESOURCES:
Deferred amount on refunding 758,002
LIABILITIES:
Accounts payable 2,843,156 -$
Interest payable 3,799,992 -
Advances from City of Palm Deser 22,655,000 -
Advances from Housing Authorit 17,821,288 -
Deposits - 105,963,992
Bonds payable - due within one yea 18,055,000
Bonds payable - due in more than one yea 287,470,363 -
TOTAL LIABILITIES 352,644,799 105,963,992
ET POSITION:
Held in trus (182,804,994)
See accompanying notes to basic financial statement
CITY OF PALM DESERT
- 33 -
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
June 30, 2015
Exhibit
Successor
Agency to th
Palm Desert
Redevelopmen
Agenc
Private-Purpose
Trust Fund
ADDITIONS:
Taxes 36,282,417$
Investment incom 308,985
Other 214,575
Sale of propert 734,821
TOTAL ADDITIONS 37,540,798
DEDUCTIONS:
Housing and developmen 15,524,414
Interest 15,010,898
Depreciation 276,150
Sale of propert 9,591,524
TOTAL DEDUCTIONS 40,402,986
CHANGE IN NET POSITION (2,862,188)
ET POSITION - BEGINNING OF YEAR (179,942,806)
ET POSITION - END OF YEAR (182,804,994)
See accompanying notes to basic financial statement
CITY OF PALM DESERT
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
For the year ended June 30, 2015
- 34 -
- 35 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2015
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 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 partly 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 36 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
a. Description of the Reporting Entity (Continued):
Blended Component Units (Continued)
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 37 -
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. 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 38 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
A fund is considered major if it is the primary operation fund of the City or meets the following
criteria:
a. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of
resources, revenues or expenditures/expenses of that individual governmental or enterprise
fund are at least 10% of the corresponding total for all funds of that category or type; and
b. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of
resources, revenues or expenditures/expenses of the individual governmental fund or
enterprise fund are at least 5% of the corresponding total for all governmental and
enterprise funds combined.
c. The government has determined that a fund is important to the financial statement user.
The funds of the financial reporting entity are described below:
Governmental Fund Types
General Fund - The General Fund is the general operating fund of the City. It is used to account
for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of
specific revenue resources (other than major capital projects) that are legally restricted to
expenditures for specified purposes.
Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources
for, and the payment of, general long-term obligation principal, interest and related costs.
Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be
used for the acquisition or construction of major capital facilities.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 39 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
The funds of the financial reporting entity are described below (Continued):
Proprietary Fund Types
Enterprise Funds - The Enterprise Funds account for operations that are financed and operated
in a manner similar to private business enterprises, where the intent of the City Council is that
the costs (expenses including depreciation) of providing goods and services to the general
public on a continuing basis be financed or recovered primarily through user charges.
The Primary Government's Enterprise funds consist of the Parkview Office Complex and the
Desert Willow Golf Course. Desert Willow Golf Course is operated by a management
company. The Component Unit's Enterprise fund consists of the Palm Desert Recreational
Facilities Corporation, also operated by a management company.
Internal Service Funds - The Internal Service Funds account for financial transactions related to
replacement of City-owned vehicles and equipment and to fund compensated absences. These
services are provided to other departments or agencies of the City on a cost reimbursement
basis.
Fiduciary Fund Types
Private-Purpose Trust Fund
The Successor Agency to the Palm Desert Redevelopment Agency Private Purpose Trust Fund
is used to account for the activities of the Successor Agency to the Palm Desert Redevelopment
Agency.
Agency Funds
The Agency, Special Assessment and Treasurers 1911 Bond Act Funds are used to account for
assets held by the City in a custodial capacity as a trustee or as an agent. These assets include
deposits placed with the City by developers, individuals and groups to obtain future services, as
well as deposits from assessment district’s property owners. These deposits are reduced by
payments and/or refunds to individuals or entities at some future time. Agency funds are
custodial in nature and do not involve measurement of results of operations.
The City’s Retiree Service Stipend Fund is used to account for assets held to pay for the retiree
service stipend.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 40 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
The major funds are as follows:
Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund.
The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax
collected within the City for upgrading fire protection and prevention. Its use is restricted to
obtaining, furnishing, operating and maintaining fire protection and prevention services
(currently under contract with Riverside County Fire Department) equipment or apparatus. This
fund is reported as a major fund because the tax collected is a voter approved measure.
The Low Moderate 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 Measure A Special Revenue Fund - In 1988, Riverside County voters approved a half-cent
sales tax, known as Measure A, to fund a variety of highway improvements, local street and
road maintenance, commuter assistance and specialized transit projects. This fund is used to
collect this tax, and pursuant to the provision of Measure A (Ordinance No. 88-1 and
Ordinance No. 02-001 of the County of Riverside) it is restricted for local street and road
expenditures only.
The 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.
Proprietary Fund
The Desert Willow Golf Course Fund is used to account for the fees collected and expenses
incurred in connection with operating the municipal golf course in the City of Palm Desert.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 41 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting:
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are recorded
regardless of the measurement focus applied.
Measurement Focus
On the government-wide Statement of Net 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 utilize an "economic resources"
measurement focus. Proprietary fund and private purpose trust fund equity are classified as
net position.
3. Agency funds are not involved in the measurement of results of operations; therefore,
measurement focus is not applicable to them.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 42 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both
governmental and business-like activities are presented using the accrual basis of accounting.
Under the accrual basis of accounting, revenues are recognized when earned and expenses are
recorded when the liability is incurred or economic asset used. Revenues, expenses, gains,
losses, assets and liabilities resulting from exchange and exchange-like transactions are
recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual
basis of accounting. Under this modified accrual basis of accounting, revenues are recognized
when "measurable and available". Measurable means knowing or being able to reasonably
estimate the amount. Available means collectible within the current period or soon enough
thereafter to pay current liabilities.
Revenues that are susceptible to accrual include property taxes and special assessments that are
levied for and due for the fiscal year and collected within 60 days after year-end. Licenses,
permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as
governmental fund type revenues when received in cash because they are not generally
measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes,
are recognized in the accounting period in which they became both measurable and available to
pay liabilities of the current period. Grants and similar items are recognized as soon as all
eligibility requirements imposed by the provider have been met. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However debt service
expenditures as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Interfund activity has been eliminated from the general government function for the
government-wide financial statements except for charges between the government's Desert
Willow Golf Course and Parkview Office Complex funds and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues
for the various functions considered.
The accrual basis of accounting is followed by the proprietary fund and private purpose trust
fund. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recorded when the liability is incurred or economic assets are used.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 43 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting (Continued)
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing goods and services in
connection with a proprietary fund's principal ongoing operations. The principal revenue of the
Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges to
customers for use of the golf course and rental fees. Operating expenses for enterprise funds
include the cost of sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
d. New Accounting Pronouncements:
Current Year Standards
In fiscal year 2014-2015, the City implemented Governmental Accounting Standards Board
(GASB) Statement No. 68, “Accounting and Financial Reporting for Pensions, an Amendment
of GASB Statement No. 27” and GASB Statement No. 71, “Pension Transition for
Contributions Made Subsequent to the Measurement Date, an Amendment of GASB Statement
No. 68”. These Statements establish standards for measuring and recognizing liabilities,
deferred outflows of resources, deferred inflows of resources, and expenses. For defined
benefit pension plans, these Statements identify the methods and assumptions that should be
used to project benefit payments, discount projected benefit payments to their actuarial present
value, and attribute that present value to periods of employee service. Accounting changes
adopted to conform to the provisions of these statements should be applied retroactively. The
result of the implementation of these standards decreased the governmental activities net
position at July 1, 2014 by $39,728,900.
GASB Statement No. 69 - “Government Combinations and Disposals of Government
Operations” was required to be implemented in the current fiscal year and did not impact the
City.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 44 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
d. New Accounting Pronouncements (Continued):
Pending Accounting Standards
GASB has issued the following statements which may impact the City’s financial reporting
requirements in the future:
GASB 72 - “Fair Value Measurement and Application”, effective for periods beginning
after June 15, 2015.
GASB 73 - “Accounting and Financial Reporting for Pensions and Related Assets That Are
Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of
GASB Statements 67 and 68”, effective for periods beginning after June 15, 2015 - except
for those provisions that address employers and governmental nonemployer contributing
entities for pensions that are not within the scope of Statement 68, which are effective for
periods beginning after June 15, 2016.
GASB 74 - “Financial Reporting for Postemployment Benefit Plans Other Than Pension
Plans”, effective for periods beginning after June 15, 2016.
GASB 75 - “Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions”, effective for periods beginning after June 15, 2017.
GASB 76 - “The Hierarchy of Generally Accepted Accounting Principles for State and
Local Governments”, effective for periods beginning after June 15, 2015.
e. Deferred Outflows/Inflows of Resources:
In addition to assets, the statement of net position and the governmental funds balance sheet
will sometimes report a separate section for deferred outflows of resources. This separate
financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to future periods and so will not be recognized as an outflow of resources
(expense/expenditure) until that time. The City has two items that qualify for reporting in this
category: (1) the deferred amount on refunding and (2) the deferred outflow related to
pensions. This amount is equal to employer contributions made after the measurement date of
the net pension liability.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 45 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
e. Deferred Outflows/Inflows of Resources (Continued):
In addition to liabilities, the statement of net position and the governmental funds balance
sheet will sometimes report a separate section for deferred inflows of resources. This separate
financial statement element, deferred inflows of resources, represents an acquisition of net
position that applies to future periods and will not be recognized as an inflow of resources
(revenue) until that time. The City has two items that qualify for reporting in this category.
The first item, which arises under a modified accrual basis of accounting is, unavailable
revenue, which is reported only in the governmental fund balance sheet. The governmental
funds report unavailable revenues from four sources: investment income, grants, notes
receivables collections and capital reimbursements from developers. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become
available. The second item is a deferred inflow related to pensions resulting from the
difference in projected and actual earnings on investments of the pension plan fiduciary net
position. This amount is amortized over five years.
f. Net Position Flow Assumption:
Sometimes the City will fund outlays for a particular purpose from both restricted
(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the
amounts to report as restricted - net position and unrestricted - net position, a flow assumption
must be made about the order in which the resources are considered to be applied.
It is the City’s practice to consider restricted - net position to have been depleted before
unrestricted - net position is applied.
g. Capital Assets and Depreciation:
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads,
traffic signals, drainage systems and similar items), are reported in the applicable governmental
or business-type activities column in the government-wide financial statements. Capital assets
are defined by the City as assets with an initial cost of more than $500 and an estimated life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at
the date of donation.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 46 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
g. Capital Assets and Depreciation (Continued):
The City has reported general infrastructure assets acquired in prior and current years.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Property, plant and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Buildings 40 years
Improvements other than buildings 20 years
Machinery and equipment 5 to 8 years
Infrastructure 20 to 75 years
h. 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, 2015, proceeds of taxes did not
exceed appropriations.
i. Investments:
Investments are stated at fair value (quoted market price or the best available estimate thereof).
j. 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 47 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
k. Employee Compensated Absences:
It is the government's policy to permit employees to accumulate earned but unused vacation
and sick leave (compensated absences). Vacation pay and sick leave, which are expected to be
liquidated with expendable available resources, are reported as expenditure and liability of the
governmental fund that will pay it only if they have matured, for example, as a result of
employee resignations or retirements. Compensated absences in the amount of $2,673,142, are
reported in the Compensation Benefits Internal Service Fund.
l. Property Held for Resale:
The land held for resale is recorded in the Low Moderate Housing Asset Special Revenue Fund
as property held for resale at the lower of acquisition cost or net realizable value. At
June 30, 2015, the cost of the property held for resale for various housing properties in Palm
Desert totaled $287,181.
m. Inventories, Prepaid Costs and Deposits:
Inventory in the amount of $250,566 and $45,860 for the Desert Willow Golf Course
Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities Corporation
(Component Unit), respectively, are stated at lower of cost or market with cost determined
using the weighted average cost method. Inventory in the amount of $31,469 in the General
Fund and Other Governmental Funds are stated at cost. Inventory is recorded as an expenditure
when consumed rather than purchased.
Certain payments to vendors that reflect costs applicable to future accounting periods are
recorded as prepaid costs in the government-wide and fund financial statements.
The Measure A Special Revenue Fund has a deposit in the amount of $15,007,273 with another
governmental agency to pay for future construction of a City project.
n. 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
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 48 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
n. Property Tax Calendar (Continued):
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.
o. 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.
p. 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.
q. Use of Estimates:
The financial statements are prepared in accordance with accounting principles generally
accepted in the United States of America and, accordingly, include amounts that are based on
management’s best estimates and judgments. The financial statements include estimates for
the value of the capital assets (infrastructure), depreciation expense, the fair value of
investments, the amounts reported for the pension liability and related items (Note 8), the
actuarial accrued liability for the other post-employment benefits (Note 12), and claims
payable (Note 6). Accordingly, actual results could differ from the estimates.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 49 -
2. CASH AND INVESTMENTS:
Cash and Investments
As of June 30, 2015, cash and investments were reported in the accompanying financial statements
as follows:
Governmental activities $ 187,057,131
Business-type activities 4,164,814
Component unit 72,236
Fiduciary funds 146,152,472
Total Cash and Investments $ 337,446,653
Cash and investments at June 30, 2015 consisted of the following:
Primary Government
Demand accounts $ 3,584,231
Petty cash 21,850
Escrow deposit 342,603
Investments 187,273,261
Total Cash and Investments - Primary Government $ 191,221,945
Component Unit
Demand accounts $ 72,236
Fiduciary Funds
Demand accounts $ 1,443,245
Pooled with primary government 13,396,211
Investments 131,313,016
Total Cash and Investments - Fiduciary Funds $ 146,152,472
The City of Palm Desert maintains a cash and investment pool that is available for use for all
funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and
investments. The City has adopted an investment policy, which authorizes it to invest in various
investments.
Deposits
At June 30, 2015, the carrying amount of the deposits was $18,495,925, and the bank balance was
$18,514,100. The $18,175 difference represents outstanding checks, deposits in transit and other
reconciling items.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 50 -
2. CASH AND INVESTMENTS (CONTINUED):
Deposits (Continued)
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.
Investments
Under provision of the City’s investment policy and in accordance with the California Government
Code, the following investments are authorized:
United States Treasury bills, notes, bonds or certificates of indebtedness
United States government-sponsored agency obligations, participations or other instruments
Banker’s Acceptances issued by commercial banks
Commercial Paper issued by general corporations
Negotiable Certificates of Deposits, issued by a nationally or state-chartered bank, a savings
association, a federal association or by a state-licensed branch of a foreign bank
Time Certificates of Deposit issued by qualified public depositories.
Repurchase Agreements sold by authorized brokers
Medium-term Notes issued by corporations organized and operating in the United States, or by
depository institutions operating in the United States and licensed by the United States or by
any state
Money Market Mutual Funds that are registered with the SEC under the Investment Act
of 1940
State of California Local Agency Investment Fund (LAIF) that is managed by the State
Treasurer’s Office
Structured Notes in the form of callable securities or “STRIPS” issued by the United States
Treasury, Federal Agencies or government-sponsored enterprises
Local Government Investment Pools
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 51 -
2. CASH AND INVESTMENTS (CONTINUED):
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards for investments in participating interest earning investment
contracts, external investment pools, equity securities, option contracts, stock warrants and stock
rights that have readily determinable fair values.
Credit Risk
The City Treasurer is authorized under state and municipal law to invest in various types of
securities that meet specified credit quality standards, based upon credit risk ratings assigned by
Standard and Poors (S&P), 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.
Primary Government
Minimum
Total as of Legal
Investment Type June 30, 2015 Rating AAA A1/P1 Aaa Unrated
California Local Agency
Investment Fund 76,555,724$ N/A -$ -$ -$ 76,555,724$
California Asset
Management Program 4,842,327 N/A 4,842,327 - - -
Riverside County Treasurer's
Pooled Investment Fund 77,882,380 N/A - - 77,882,380 -
Commercial Paper 6,479,980 A1/P1 - 6,479,980 - -
Held by Fiscal Agent:
Money market mutual funds 600,621 AAA/Aaa 600,621 - - -
California Local Agency
Investment Fund 20,912,229 N/A - - - 20,912,229
Total 187,273,261$ 5,442,948$ 6,479,980$ 77,882,380$ 97,467,953$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 52 -
2. CASH AND INVESTMENTS (CONTINUED):
Credit Risk (Continued)
Fiduciary Funds
Minimum
Total as of Legal
Investment Type June 30, 2015 Rating AAA Aaa Unrated
California Local Agency
Investment Fund 529,401$ N/A -$ -$ 529,401$
California Asset
Management Program 766,772 N/A 766,772 - -
Riverside County Treasurer's
Pooled Investment Fund 21,133,757 N/A - 21,133,757 -
Investment in City Bonds -
Successor Agency RDA 1,813,000 N/A - - 1,813,000
Held by Fiscal Agent:
Money market mutual funds -
Successor Agency RDA 25,520,641 AAA/Aaa 25,520,641 - -
California Local Agency
Investment Fund -
Successor Agency RDA 74,186,155 N/A - - 74,186,155
Money market mutual funds -
Assessment District 3,204,825 AAA/Aaa 3,204,825 - -
California Local Agency
Investment Fund -
Assessment District 4,158,465 N/A - - 4,158,465
Total 131,313,016$ 29,492,238$ 21,133,757$ 80,687,021$
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, 2015, none of the City’s deposits or investments were exposed to custodial credit
risk.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 53 -
2. CASH AND INVESTMENTS (CONTINUED):
Concentration of Credit Risk
The City’s investment policy imposes restrictions on the percentage the City can invest in certain
types of investments, which the City is in compliance. As of June 30, 2015, in accordance with
GASB Statement no. 40, if the City has invested more than 5% of its total investments in any one
issuer then they are exposed to concentration of credit risk. The City is not invested in any one
issuer that is more than 5% of its total investments.
The City’s Investment policy imposes the following restrictions on the maximum percentage it can
invest in a single type of investment.
Portfolio Single Issuer
Issuer Maximum Maximum
United States Treasury Bills, Notes, Bonds 100% N/A
United States Government-Sponsored
Agency Securities 100% 30%
Banker’s Acceptances 40% 30%
Commercial Paper 25% 10%
Negotiable Certificates of Deposit 30% N/A
Time Certificates of Deposit 15% N/A
Repurchase Agreements 20% N/A
Medium-Term Corporate Notes 30% 5%
Money Market Mutual Funds 20% N/A
Local Agency Investment Fund (LAIF) $50M/Acct N/A
Structured Notes (STRIPS) 20% N/A
Local Government Investment Pools 50% N/A
N/A - Not Applicable
The City’s policy is more conservative than state law, which has no issuer concentration limits on
federal agency debt.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to
fair value losses arising from increasing interest rates. The City's investment policy states that the
City shall not invest in securities with maturities exceeding five years and the weighted-average
maturity of the City portfolio shall not exceed 540 days. The City has elected to use the segmented
time distribution method of disclosure for its interest rate risk.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 54 -
2. CASH AND INVESTMENTS (CONTINUED):
Interest Rate Risk (Continued)
As of June 30, 2015, the City had the following investments and maturities:
Primary Government
Less Than 6 months - 1 year - Over Fair
Investment Type 6 months 1 year 3 years 3 years Value
California Local Agency
Investment Fund 76,555,724$ -$ -$ -$ 76,555,724$
California Asset
Management Program 4,842,327 - - - 4,842,327
Riverside County Treasurer's
Pooled Investment Fund 77,882,380 - - - 77,882,380
Commercial Paper - 6,479,980 - - 6,479,980
Held by Fiscal Agent:
Money market mutual funds 600,621 - - - 600,621
California Local Agency
Investment Fund 20,912,229 - - - 20,912,229
Total 180,793,281$ 6,479,980$ -$ -$ 187,273,261$
Fiduciary Funds
Less Than 6 months - 1 year - Over Fair
Investment Type 6 months 1 year 3 years 3 years Value
California Local Agency
Investment Fund 529,401$ -$ -$ -$ 529,401$
California Asset
Management Program 766,772 - - - 766,772
Riverside County Treasurer's
Pooled Investment Fund 21,133,757 - - - 21,133,757
Investment in City Bonds 116,000 - 241,000 1,456,000 1,813,000
Held by Fiscal Agent:
Money market mutual funds -
Successor Agency RDA 25,520,641 - - - 25,520,641
LAIF - Successor Agency RDA 74,186,155 - - - 74,186,155
Money market mutual funds -
Assessment District 3,204,825 - - - 3,204,825
LAIF - Assessment District 4,158,465 - - - 4,158,465
Total 129,616,016$ -$ 241,000$ 1,456,000$ 131,313,016$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 55 -
2. CASH AND INVESTMENTS (CONTINUED):
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 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 56 -
3. RECEIVABLES:
Primary Government's Governmental Funds
Notes and Loans Receivable:
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds was used to finance the construction of the utility undergrounding and pay
the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. Bond maturities began
September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from
3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and
reports a receivable in the general fund that corresponds to the outstanding principal on the bonds.
As of June 30, 2015, the receivable balance was $1,489,000.
The Low Moderate Housing Asset Special Revenue Fund has $11,042 in home improvement loans
and an additional notes receivable of $1,250. Payments of interest and principal are due monthly on
these loans.
The City entered into several individual loan agreements with residents of the Highlands Utility
Undergrounding Assessment District No. 04-01. The loans were issued by the City to pay off the
principal of the respective properties assessment. In turn, the residents agreed to pay to the City the
full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the
loan along with all accrued interest is due and payable at the earliest of September 2, 2036 or any
change in ownership of the property. At June 30, 2015 the total receivable from the Highlands
Deferral Loan Program is $39,806.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been
transferred to the Low Moderate Housing Asset Special Revenue Fund as the successor housing
entity. The Low Moderate Housing Asset Special Revenue Fund has a loan receivable for the
construction of a multi-family affordable housing development dated June 14, 2001, with a balance
of $6,787,629 is due from the Palm Desert Development Company. The loan is secured by a Deed
of Trust with assignment to property, rent and fixtures on the housing development located in Palm
Desert. Interest is earned and due annually at a rate of 1% per annum from the date on which the
final certificate of occupancy is issued. Principal on the loan is based on the applicable agency’s
percentage of positive net cash flow derived from the operations of the Development.
The Community Development Block Grant Special Revenue Fund has $13,663 in a home
improvement loan.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 57 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
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, 2015, 60 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, 2015
the outstanding loans receivable through the EIP Program was $4,681,166.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been
transferred to the Palm Desert Housing Authority as the successor housing entity. The Housing
Authority has loans for several other projects, all of which are secured by a deed of trust. A
valuation allowance equal to the loan balance has been recognized since there is a significant
possibility that these loans will either become uncollectible or forgiven by the Housing Authority
at a future date if all the terms of the loans have been met.
Detailed information for these loans is as follows:
Loan
Balance Interest Maturity Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Self-Help 429,000$ 7.25% 30 years Deed of Trust
Housing Program or 2024
Home Improvement
Loans
380,076 N/A N/A Deed of Trust
Loan balance and interest due
upon maturity, unpaid balance
of loan or interest will bear an
interest rate of 12%.
Loan is payable upon change
or transfer of title, refinancing
or upon the death of the
borrower. Restrictive
covenants are placed against
property to maintain
affordability for up to 45 years
in exchange for favorable loan
terms.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 58 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
Detailed information for these loans (Continued):
Loan
Balance Interest Maturity Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Portola Palms 110,715$ 3.00% 30 years Deed of Trust
Mobilehome Park from date
of loan
Desert Rose 2,463,807 3.00% 30 - 45 years* Deed of Trust
from date
of loan
Falcon Crest 5,795,172 3.00% 30 - 45 Deed of Trust
years
from date
of loan
Acquisition,
Rehabilitation,
190,510 3.00% 30 - 45
years
Deed of Trust
Assignment
Resale from date
of loan
of Rent
* All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive
covenant.
Loan is payable upon change
or transfer of title, refinancing
or upon the death of the
borrower. Restrictive
covenants are placed against
property to maintain
affordability for up to 45 years
in exchange for favorable loan
terms.
Loan is payable upon change
or transfer of title, refinancing
or upon the death of the
borrower.
Loan balance and interest will
be forgiven at maturity if
debtor does not breach the
terms and conditions of either
the unit regulatory agreement
or note.
Loan will be forgiven at
maturity unless the debtor is in
violation of the unit regulatory
agreement or the deed of trust.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 59 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
Due To/From Other Funds
The composition of interfund balances as of June 30, 2015, was as follows:
Due To Due From Amount
General Fund Other Governmental Funds $ 2,500,000
Low Moderate Housing Asset
Special Revenue Fund General Fund 1,847,200
Other Governmental Funds 2,683,800
Other Governmental Funds Desert Willow Golf Course 500,000
$ 7,531,000
The General Fund advanced $2,500,000 to the Energy Independence Special Revenue Fund to
payoff the bonds used to fund energy efficiency.
The Low Moderate Housing Asset Special Revenue Fund amounts are related to the advances due
from the Successor Agency (former Redevelopment Agency) per AB 1484.
The Golf Capital Projects Fund advanced $500,000 to Desert Willow Golf Course for operations
during the construction phase of the clubhouse and kitchen expansion.
Due To/From Component Unit
Due From
Component
Unit
Major Funds:
General Fund $ 285,000
Desert Willow Golf Course 1,185,970
$ 1,470,970
The receivable by the General Fund is for rent owed by the Palm Desert Recreational Facilities
Corporation (PDRFC), and the receivable by the Desert Willow Golf Course represents funds
loaned to PDRFC for operation.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 60 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Interfund Transfers
The composition of interfund transfers as of June 30, 2015, was as follows:
Prop A
Fire Tax
Special Other Internal
General Revenue Governmental Service
Transfers Out: Fund Fund Funds Total Fund Totals
General Fund -$ 2,000,000$ 1,220,373$ 3,220,373$ 1,276,000$ 4,496,373$
Housing Authority
Special Revenue
Fund - - 733,014 733,014 - 733,014
Other
Governmental
Funds 1,741,972 - - 1,741,972 - 1,741,972
Office Complex
Parkview
Enterprise Fund 437,500 - - 437,500 - 437,500
Totals 2,179,472$ 2,000,000$ 1,953,387$ 6,132,859$ 1,276,000$ 7,408,859$
Transfers In
Transfers are used to:
1. Transfer revenues to provide for capital projects,
2. Transfer revenues to provide for additional resources to pay for expenditures,
3. Transfer to cover future cost of assets, and
4. Transfer to provide resources to pay for compensated absences.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 61 -
5. CAPITAL ASSETS:
A summary of changes in capital assets at June 30, 2015, was as follows:
Primary Government - Governmental Activities
Balance at Balance at
July 1, 2014 Transfers Additions Deletions June 30, 2015
Capital assets, no
eing depreciated:
Land 78,442,528$ -$ 808,478$ -$ 79,251,006$
Right-of-wa 120,795,676 252,442 - - 121,048,118
Construction-in-progress 7,899,676 223,541 17,605,680 - 25,728,897
Internal service fund -
Construction-in-progress 342,604 - 78,668 - 421,272
Total capital assets, no
eing depreciated 207,480,484 475,983 18,492,826 - 226,449,293
Capital assets, being
depreciated:
Buildings 128,550,481 - 10,420 (1,253,835) 127,307,066
Improvements othe
than buildings 54,283,467 - 315,350 - 54,598,817
Machinery and equipment 9,586,158 - 473,968 (2,979) 10,057,147
Infrastructure 238,159,886 - 296,140 - 238,456,026
Equipment - Internal
service fund 5,067,886 - 358,827 (283,963) 5,142,750
Total capital assets,
eing depreciated 435,647,878 - 1,454,705 (1,540,777) 435,561,806
Less accumulated
depreciation for:
Buildings (51,188,094) - (3,083,759) 182,849 (54,089,004)
Improvements othe
than buildings (25,612,436) - (2,653,015) - (28,265,451)
Machinery and equipment (8,502,289) - (407,080) 1,967 (8,907,402)
Infrastructure (87,449,480) - (5,471,401) - (92,920,881)
Equipment - Internal
service fund (4,129,331) - (247,720) 271,384 (4,105,667)
Total accumulated
depreciation (176,881,630) - (11,862,975) 456,200 (188,288,405)
Capital assets, being
depreciated, ne 258,766,248 - (10,408,270) (1,084,577) 247,273,401
Capital assets, net -
Governmental Activities 466,246,732 475,983 8,084,556 (1,084,577) 473,722,694
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 62 -
5. CAPITAL ASSETS (CONTINUED):
A summary of changes in capital assets at June 30, 2015, was as follows:
Primary Government - Business-type Activities
Balance at Balance at
July 1, 2014 Additions Deletions Reclassification June 30, 2015
Capital assets, no
eing depreciated:
Land 52,736,087$ -$ -$ -$ 52,736,087$
Total capital assets,
not being depreciated 52,736,087 - - - 52,736,087
Capital assets, being
eing depreciated:
Buildings and
improvements 27,018,200 163,637 - - 27,181,837
Machinery and equipment 6,310,275 927,402 (740,979) - 6,496,698
Total capital assets,
eing depreciated 33,328,475 1,091,039 (740,979) - 33,678,535
Less accumulated
depreciation for:
Buildings and
improvements (8,125,296) (947,326) - - (9,072,622)
Machinery and equipment (4,707,167) (762,524) 692,480 - (4,777,211)
Total accumulated
depreciation (12,832,463) (1,709,850) 692,480 - (13,849,833)
Capital assets, being
depreciated, ne 20,496,012 (618,811) (48,499) - 19,828,702
Capital assets, net -
Business-type Activities 73,232,099 (618,811) (48,499) - 72,564,789
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 63 -
5. CAPITAL ASSETS (CONTINUED):
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 1,904,951
Housing and redevelopment 1,237,673
Public safety 117,413
Public works 5,997,039
Parks, recreation and culture 2,358,179
Depreciation expenses for internal service funds is charged
to various functions based on usage of capital assets 247,720
Total depreciation expense - governmental activities $ 11,862,975
Business-type Activities:
Desert Willow Golf Course $ 1,286,337
Parkview Office complex 423,513
Total depreciation expense - business-type activities $ 1,709,850
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 64 -
6. LONG-TERM LIABILITIES:
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2015:
Primary Government - Governmental Activities
Balance Balance Due Within
July 1, 2014 Additions Reductions June 30, 2015 One Year
Special assessment debt
with government
commitment 1,526,000$ -$ (37,000)$ 1,489,000$ 38,000$
Limited obligation
improvement bonds 2,065,000 - (252,000) 1,813,000 116,000
Lease revenue bonds 4,655,000 - (4,655,000) - -
Claims and judgments
payable 1,021,332 - (721,869) 299,463 -
Compensated absences
payable 2,691,840 1,525,542 (1,544,240) 2,673,142 600,000
Total 11,959,172$ 1,525,542$ (7,210,109)$ 6,274,605$ 754,000$
Debt service payments for the special assessment debt with government commitment, tax
allocation bonds and notes payable are made from debt service funds and a special revenue fund.
Primary Government -Business-type Activities:
Balance Balance Due Within
July 1, 2014 Additions Reductions June 30, 2015 One Year
Capital leases 1,222,915$ 976,366$ (764,235)$ 1,435,046$ 537,242$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 65 -
6. LONG-TERM LIABILITIES (CONTINUED):
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 $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay
the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential obligation to
provide additional funds to pay the debt service, therefore these bonds are reported as special
assessment debt with government commitment. Bond maturities begin September 2, 2007, and
continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The
City of Palm Desert is the only bondholder on record of the bonds and the City does not own the
constructed assets.
The future debt service requirements on the Highlands Undergrounding Assessment District
No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:
Year Ending
June 30, Principal Interest Total
2016 38,000$ 74,871$ 112,871$
2017 41,000 72,994 113,994
2018 42,000 70,991 112,991
2019 44,000 68,895 112,895
2020 47,000 66,653 113,653
2021 - 2025 272,000 294,459 566,459
2026 - 2030 347,000 215,746 562,746
2031 - 2035 446,000 114,176 560,176
2036 - 2037 212,000 11,073 223,073
1,489,000$ 989,858$ 2,478,858$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 66 -
6. LONG-TERM LIABILITIES (CONTINUED):
Limited Obligation Bonds
Limited Obligation Improvement Bonds Series 2009A (Taxable)
On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds
Series 2009A (Taxable). The proceeds of the Bonds were used to fund the City’s Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond
purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to
par value.
The Series 2009A (Taxable) bonds consist of $2,015,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A
(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2016 71,000$ 31,515$ 102,515$
2017 75,000 29,325 104,325
2018 71,000 27,135 98,135
2019 71,000 25,005 96,005
2020 74,000 22,830 96,830
2021 - 2025 353,000 82,755 435,755
2026 - 2030 371,000 28,395 399,395
,, , ,,
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 67 -
6. LONG-TERM LIABILITIES (CONTINUED):
Limited Obligation Bonds (Continued)
Limited Obligation Improvement Bonds Series 2009B (Taxable)
On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds
Series 2009B (Taxable). The proceeds of the Bonds were used to fund the City’s Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond
purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to
par value.
The Series 2009B (Taxable) bonds consist of $1,136,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B
(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2016 45,000$ 21,135$ 66,135$
2017 47,000 19,755 66,755
2018 48,000 18,330 66,330
2019 48,000 16,890 64,890
2020 49,000 15,435 64,435
2021 - 2025 253,000 55,035 308,035
2026 - 2030 237,000 18,195 255,195
727,000$ 164,775$ 891,775$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 68 -
6. LONG-TERM LIABILITIES (CONTINUED):
Lease Revenue Bonds
EIP Series 2009
On August 31, 2009, the Palm Desert Financing Authority issued $5,225,000 Energy Independence
Program Variable Rate Demand lease Revenue Bonds, Series 2009 (Federally Taxable). The
proceeds of the bonds were used to partially pay off the General Fund EIP loan of $1,196,000
originally loaned to start up the Energy Loan Program, and the remaining bond funds were used to
fund the City’s Energy Independence Program.
The Lease Revenue Bonds Series 2009 were called in September 2014.
Claims and Judgments Payable
Estimates for all workers' compensation and general liabilities up to the self-insured levels have
been recorded as long-term liabilities. At June 30, 2015, total estimated workers' compensation and
general liability claims payable, including a provision for incurred but not reported claims, were
$140,749 and $158,714, respectively, for a total claims and judgments payable of $299,463.
Changes in claims liabilities during the past two years are as follows:
June 30, 2014 June 30, 2015
Claims payable - Beginning of Yea 746,792$ 1,021,332$
Incurred claims (including IBNR)
and changes in estimates 669,366 (341,659)
Claims payments (394,826) (380,210)
Claims payable - End of Yea 1,021,332$ 299,463$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 69 -
6. LONG-TERM LIABILITIES (CONTINUED):
Business-type Activities - Capital Leases
Obligations under capital leases are as follows:
De Lage Lande Public Finance LLC - The present value of the
minimum lease payment on the Club Car cart fleet equipment was
capitalized at $976,366 using an interest rate of 2.99%. The lease term
is 48 months with payments schedule in 24 periods during the months
of February through July of each year of the lease. Payments are
$33,671. There are no payments scheduled from August to January of
each year. Interest accrues each month. $ 795,193
GPSI Leasing, LLC - The present value of the minimum lease
payment on the GPSI Visage Golf Cart GPS System was capitalized at
$303,530 using an interest rate of 16.66%. On December 27, 2013 the
GPSI lease was amended to extend the agreement for an additional
31 months and lower the payment to $7,044. The amended lease is
payable in 48 monthly installments of $7,044 beginning
January 1, 2014. 110,628
Wells Fargo Financial Leasing, Inc. - The present value of the
minimum lease payment on the Toro golf course maintenance
equipment was capitalized at $1,547,296 using an interest rate of
2.63%. Lease is payable in 60 monthly installments of $27,489
beginning February, 28, 2012. 511,017
Wells Fargo Financial Leasing, Inc. - The present value of the
minimum lease payment on the TruTurf roller and Lely spreader were
capitalized at $41,440 using an interest rate of 2.63%. Lease is
payable in 60 monthly installments of $736 beginning
March 28, 2012. 14,390
Wells Fargo Financial Leasing Inc. - The present value of the
minimum lease payment on the JCB grapple bucket was capitalized at
$10,481 using an interest rate of 2.63%. Lease is payable in
60 monthly installments of $186 beginning April 28, 2012. 3,818
Present value of net minimum lease payments 1,435,046
Less: current portion (537,242)
$ 897,804
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 70 -
6. LONG-TERM LIABILITIES (CONTINUED):
Business-type Activities - Capital Leases (Continued)
The following is a schedule, by year, of future minimum lease payments and present value of the
net minimum lease payments for capital leases as of June 30, 2015:
Minimum
Year Ending Lease
June 30, Payments
2016 627,489$
2017 486,541
2018 244,289
2019 243,600
1,601,919
Less: amounts representing interest (166,873)
Present value of net minimum lease
payments 1,435,046$
The assets acquired through capital lease are as follows:
Machinery and equipment $ 3,026,023
Less: accumulated depreciation (1,783,058)
$ 1,242,965
7. DEFERRED COMPENSATION PLAN:
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to employees
until termination, retirement, death or unforeseeable emergency. Pursuant to changes in August
1996, of IRC Section 457, in January 1997, the City established a trust in which all assets held by
Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement Corporation (ICMA) were
placed. The City does not have fiduciary responsibility for the plan assets held by NRS and ICMA.
The assets, all property and rights purchased with such amounts and all income attributable to such
amounts are held in trust for the exclusive benefit of the participants and the beneficiaries. The
assets are no longer the property of the City, and as such, are no longer subject to the claims of the
City's general creditors. As a result, the assets in the amount of $12,387,234 held by NRS and
ICMA of the 457 Plan are not reflected in the City’s financial statements.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 71 -
8. PENSION PLAN:
a. General Information about the Pension Plans:
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s
Miscellaneous Plans, 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 Plans are established by State statute and City resolution. CalPERS issues publicly
available reports that include a full description of the pension plans 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 each plan are applied
as specified by the Public Employees’ Retirement Law.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 72 -
8. PENSION PLAN (CONTINUED):
a. General Information about the Pension Plans (Continued):
Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at June 30, 2015, are summarized as follows:
Prior to On or After
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.7%@55 2%@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% to 2.7% 1.0% to 2.5%
Required employee contribution rates 8% 7%
Required employer contribution rates 26.548% 26.548%
Miscellaneous
Employees Covered
At June 30, 2015, the following employees were covered by the benefit terms for all Plans:
Inactive employees or beneficiaries
currently receiving benefits 136
Inactive employees entitled to but
not yet receiving benefits 84
Active employees 117
Total 337
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 73 -
8. PENSION PLAN (CONTINUED):
b. Net Pension Liability:
The City’s net pension liability for each Plan is measured as the total pension liability, less the
pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured
as of June 30, 2014, using an annual actuarial valuation as of June 30, 2013 rolled forward to
June 30, 2014 using standard update procedures. A summary of principal assumptions and
methods used to determine the net pension liability is shown below.
Actuarial Assumptions
The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the
following actuarial assumptions:
Valuation Date June 30, 2013
Measurement Date June 30, 2014
Actuarial Cost Method Entry-Age Normal
Cost Metho
Actuarial Assumptions:
Discount Rate 7.50%
Inflation 2.75%
Payroll Growth 3.00%
Projected Salary Increase 3.3% - 14.2% (1)
Investment Rate of Return 7.5% (2)
Mortality (3)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation
(3) The probabilities of mortality are derived using CalPERS' membership data for all funds.
The mortality table used was developed based on CalPERS' specific data. The table
includes 20 years of mortality improvements using Society of Actuaries Scale BB. for
more details on this table, please refer to the 2014 experience study report.
The underlying mortality assumptions and all other actuarial assumptions used in the
June 30, 2013 valuation were based on the results of a January 2014 actuarial experience study
for the period 1997 to 2011. Further details of the Experience Study can found on the CalPERS
website.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 74 -
8. PENSION PLAN (CONTINUED):
b. Net Pension Liability (Continued):
Discount Rate
The discount rate used to measure the total pension liability was 7.50% for each Plan. To
determine whether the municipal bond rate should be used in the calculation of a discount rate
for each 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, none of the
tested plans run out of assets. Therefore, the current 7.50% discount rate is adequate and the
use of the municipal bond rate calculation is not necessary. The long term expected discount
rate of 7.50% will be applied to all plans in the Public Employees Retirement Fund (PERF).
The stress test results are presented in a detailed report that can be obtained from the CalPERS
website.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined
without reduction for pension plan administrative expense. The 7.50% investment return
assumption used in this accounting valuation is net of administrative expenses. Administrative
expenses are assumed to be 15 basis points. An investment return excluding administrative
expenses would have been 7.65%. Using this lower discount rate has resulted in a slightly
higher Total Pension Liability and Net Pension Liability. CalPERS checked the materiality
threshold for the difference in calculation and did not find it to be a material difference.
CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability
Management (ALM) review cycle that is scheduled to be completed in February 2018. Any
changes to the discount rate will require Board action and proper stakeholder outreach. For
these reasons, CalPERS expects to continue using a discount rate net of administrative
expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal year. CalPERS
will continue to check the materiality of the difference in calculation until such time a change
in methodology occurs.
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 75 -
8. PENSION PLAN (CONTINUED):
b. Net Pension Liability (Continued):
Discount Rate (Continued)
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. 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. These rates of return are net of administrative expenses.
New Real Return Real Retur
Strategic Years Years
Allocation 1 - 10 (a) 11+ (b)
Global Equity 47.00% 5.25% 5.71%
Global Fixed Income 19.00% 0.99% 2.43%
Inflation Sensitive 6.00% 0.45% 3.36%
Private Equity 12.00% 6.83% 6.95%
Real Estate 11.00% 4.50% 5.13%
Infrastructure and Forestland 3.00% 4.50% 5.09%
Liquidity 2.00% -0.55% -1.05%
Total 100.00%
(a) An expected inflation of 2.5% used for this perio
(b) An expected inflation of 3.0% used for this perio
Asset Class
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 76 -
8. PENSION PLAN (CONTINUED):
c. Changes in the Net Pension Liability:
The changes in the net pension liability for the year ended June 30, 2015, with a measurement
date of June 30 2014 for the Miscellaneous Plan are as follows:
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2014 107,900,900$ 64,851,550$ 43,049,350$
Chan es in the Year:
Service cost 2,156,598 - 2,156,598
Interest on the total pension liability 7,991,591 - 7,991,591
Differences between actual an
expected experience - - -
Changes in assumptions - - -
Changes in benefit terms - - -
Contribution - employe - 3,320,450 (3,320,450)
Contribution - employee - 995,504 (995,504)
Net investment income - 11,290,314 (11,290,314)
Benefit payments, including refunds
of employee contributions (4,849,320) (4,849,320) -
Net Chan es 5,298,869 10,756,948 (5,458,079)
Balance at June 30, 2015 113,199,769$ 75,608,498$ 37,591,271$
Increase (Decrease)
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 77 -
8. PENSION PLAN (CONTINUED):
c. Changes in the Net Pension Liability (Continued):
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City for each Plan, calculated using the
discount rate for each Plan, as well as what the City’s net pension liability would be if it were
calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher
than the current rate:
1% Decrease 6.50%
Net Pension Liability 53,054,419$
Current Discount Rate 7.50%
Net Pension Liability 37,591,271$
1% Increase 8.50%
Net Pension Liability 24,799,827$
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the
separately issued CalPERS financial reports.
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions:
For the year ended June 30, 2015, the City recognized pension expense of $3,022,511. At
June 30, 2015, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferre Deferre
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 3,393,041$ -$
Differences between actual and expected experience - -
Change in assumptions - -
Net differences between projected and actual
earnings on plan investments - (5,160,141)
Total 3,393,041 (5,160,141)
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 78 -
8. PENSION PLAN (CONTINUED):
d. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
(Continued):
$3,393,041 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year
ending June 30, 2016. Other amounts reported as deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
Year
Ending
June 30, Amount
2016 (1,290,035)$
2017 (1,290,035)
2018 (1,290,035)
2019 (1,290,036)
2020 -
Thereafte -
e. Payable to the Pension Plan:
At June 30, 2015, the City had no outstanding amount of contributions to the pension plan
required for the year ended June 30, 2015.
9. FUND BALANCES:
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, 2015, were as follows:
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 79 -
9. FUND BALANCES (CONTINUED):
Low
Moderate Other
General Prop A Housing Housing Governmental
Fund Fire Tax Asset Measure A Authority Funds Total
Nonspendable:
Advances 7,833,800$ -$ -$ -$ -$ -$ 7,833,800$
Inventor 26,368 - - - - - 26,368
Loans and notes
receivables 1,528,806 - - - - - 1,528,806
Prepaid costs 923,287 - - - - 348 923,635
Total Nonspendable 10,312,261 - - - - 348 10,312,609
Restricted for:
Capital projects:
Assessment districts
improvements - - - - - 21,528,899 21,528,899
Debt service - - - - - 100,111 100,111
Low income housing:
Projects and programs - - 41,714,799 - - 2,256,769 43,971,568
Apartments - - - - 8,838,055 - 8,838,055
Total low income housing - - 41,714,799 - 8,838,055 2,256,769 52,809,623
Public facilities:
Parks facilities - - - - - 1,103,892 1,103,892
City facilities - - - - - 1,286,666 1,286,666
Childcare facilities - - - - - 1,021,065 1,021,065
Total public facilities - - - - - 3,411,623 3,411,623
Public safety:
Fire facilities - - - - - 978,856 978,856
Fire operations - 1,806,938 - - - - 1,806,938
Police programs & equipment - - - - - 7,026 7,026
Total public safet - 1,806,938 - - - 985,882 2,792,820
Special programs:
Community projects - - - - - 18,984 18,984
Recycling projects - - - - - 3,671,593 3,671,593
Special district advertising - - - - - 48,476 48,476
Air quality projects - - - - - 76,291 76,291
Landscaping and lighting - - - - - 2,459,092 2,459,092
Art constructio - - - - - 1,323,900 1,323,900
Total special programs - - - - - 7,598,336 7,598,336
Street related purposes:
Construction & improvements - - - 14,779,998 - 1,068,368 15,848,366
Drainage projects - - - - - 1,924,124 1,924,124
Traffic signals projects - - - - - 247,310 247,310
Total street related purposes - - - 14,779,998 - 3,239,802 18,019,800
Total Restricted - 1,806,938 41,714,799 14,779,998 8,838,055 39,121,422 106,261,212
Committed to:
Aquatic center - - - - - 2,134,121 2,134,121
Capital asset replacement - - - - 11,875,488 - 11,875,488
Energy loan progra - - - - - 2,943,278 2,943,278
Total Committed - - - - 11,875,488 5,077,399 16,952,887
Assigned to:
Capital projects:
City capital outlay projects - - - - - 9,910,743 9,910,743
Property acquisitio - - - - - 420,387 420,387
Community contingenc 455,000 - - - - - 455,000
Public facilities:
City facilities 364,559 - - - - 4,097,585 4,462,144
Parks facilities - - - - - 3,968,157 3,968,157
Golf facilities - - - - - 2,882,012 2,882,012
Total public facilities 364,559 - - - - 10,947,754 11,312,313
Special programs:
Librar - - - - - 667,255 667,255
General pla 37,300 - - - - - 37,300
Professional services 33,876 - - - - - 33,876
Total special programs 71,176 - - - - 667,255 738,431
Street related purposes:
Street resurfacing 880,543 - - - - - 880,543
Drainage projects - - - - - 2,125,264 2,125,264
Traffic signals projects - - - - - 101,128 101,128
Total street related purposes 880,543 - - - - 2,226,392 3,106,935
Total Assigned 1,771,278 - - - - 24,172,531 25,943,809
Unassigned 67,727,130 - - - - - 67,727,130
Totals 79,810,669$ 1,806,938$ 41,714,799$ 14,779,998$ 20,713,543$ 68,371,700$ 227,197,647$
Special Revenue Funds
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 80 -
9. FUND BALANCES (CONTINUED):
Fund Balances (Continued)
The fund balances reported on the fund statements now consist of the following categories:
Nonspendable - This classification includes amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted - This classification includes amounts that can be spent only for specific purposes
stipulated by constitution, external resource providers or through enabling legislation.
Committed - This classification includes amounts that can be used only for the specific purposes
determined by a formal action of the City Council. The City considers the adoption of a resolution
to institute a formal action of City Council for the purpose of establishing, modifying or rescinding
committed fund balances.
Assigned - This classification includes amounts to be used by the government for specific purposes
but do not meet the criteria to be classified as restricted or committed. This includes amounts that
are assigned through adoption of a resolution by City Council. The Council may delegate the
ability of an employee or committee to assign uses of specific funds, for specific purposes. Such
delegation of authority has not yet been granted to persons or bodies other than the City Council.
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 81 -
10. RISK MANAGEMENT:
a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement:
The City of Palm Desert is a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 118 California public entities and is organized
under a joint powers agreement pursuant to California Government Code §6500 et seq. The
purpose of the Authority is to arrange and administer programs for the pooling of self-insured
losses, to purchase excess insurance or reinsurance, and to arrange for group purchased
insurance for property and other lines of coverage. The Authority began covering claims of its
members in 1978. Each member government has an elected official as its representative on the
Board of Directors which operates through a nine-member Executive Committee.
b. Self-Insurance Programs of the Authority:
Each member pays an annual contribution to cover estimated losses for the coverage period. A
retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and
prior. Retrospective adjustments are scheduled to continue indefinitely on coverage years
2012-13 and prior, until all claims incurred during those coverage years are closed, on a pool-
wide basis. This subsequent cost re-allocation among members, based on actual claim
development, can result in adjustments of either refunds or additional deposits required.
Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment.
The total funding requirement for self-insurance programs is estimated using actuarial models
and pre-funded through the annual contribution. Costs are allocated to individual agencies
based on exposure (payroll) and experience (claims) relative to other members of the
risk-sharing pool. Additional information regarding the cost allocation methodology is
provided below.
Liability
In the liability program, claims are pooled separately between police and general government
exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A
variable credibility factor is determined for each member, which establishes the weight applied to
payroll and the weight applied to losses within the formula. (2) The first layer of losses includes
incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s
total incurred costs within the first layer. (3) The second layer of losses includes incurred costs
from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total
incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are
distributed based on the outcome of cost allocation within the first and second loss layers.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 82 -
10. RISK MANAGEMENT (CONTINUED):
b. Self-Insurance Programs of the Authority (Continued):
Liability (Continued)
For 2014-15, the Authority’s pooled retention is $2 million per occurrence, with reinsurance to
$20 million, and excess insurance to $50 million. The Authority’s reinsurance contracts are
subject to the following additional pooled retentions: (a) 50% of the $2.5 million annual
aggregate deductible in the $3 million x/s $2 million layer, (b) 50% quota share of the $3
million x/s $2 million layer, and (c) $3 million annual aggregate deductible in the $5 million
x/s $10 million layer.
The overall coverage limit for each member, including all layers of coverage, is $50 million
per occurrence. Costs of covered claim for subsidence losses have a sub-limit of $30 million
per occurrence.
Workers’ Compensation
The City of Palm Desert also participates in the workers’ compensation pool administered by
the Authority. In the workers’ compensation program claims are pooled separately between
public safety (police and fire) and general government exposures. (1) The payroll of each
member is evaluated relative to the payroll of other members. A variable credibility factor is
determined for each member, which establishes the weight applied to payroll and the weight
applied to losses within the formula. (2) The first layer of losses includes incurred costs up to
$50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs
within the first layer. (3) The second of losses includes incurred costs from $50,000 to
$100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs
within the second layer. (4) Incurred costs in excess from $100,000 to statutory limits are
distributed based on the outcome of cost allocation within the first and second loss layers.
For 2014-15 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to
statutory limits under California Workers’ Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from
$2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability
losses from $5 million to $10 million are pooled among members.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 83 -
10. RISK MANAGEMENT (CONTINUED):
c. Purchased Insurance:
Property Insurance
The City of Palm Desert participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies. The City
of Palm Desert’s property is currently insured according to a schedule of covered property
submitted by the City of Palm Desert to the Authority. The City of Palm Desert’s property
currently has all-risk property insurance protection in the amount of $223,995,097. There is a
$5,000 deductible per occurrence except for non-emergency vehicle insurance, which has a
$1,000 deductible. Premiums for the coverage are paid annually and are not subject to
retrospective adjustments.
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. Premiums
are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance
The City of Palm Desert further protects against liability damages by requiring tenant users of
certain property to purchase low-cost tenant user liability insurance for certain activities on
City property. The insurance premium is paid by the tenant user and is paid to the City of Palm
Desert according to a schedule. The City of Palm Desert then pays for the insurance. The
insurance is arranged by the Authority.
d. Adequacy of Protection:
During the past three fiscal 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 2014-15.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 84 -
11. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES:
Unearned Revenues
Major Governmental Funds
General Fund has received $16,976 in unearned revenues from the Successor Agency that are
deemed unearned until expenditures are incurred related to park improvements and $2,503 in
advance rent payments.
Measure A Special Revenue Fund has $15,007,273 in funds received from the Successor Agency
that are deemed unearned until expenditures are incurred related to construction of interchange.
Housing Authority Special Revenue Fund has other amounts reported as unearned revenues
include $16,047 for prepaid rents.
Other Governmental Funds
Special Revenue Funds
$4,963 of grant funds are deemed unearned until expenditures are incurred in the Recycling Fund.
$38,057 of grant funds are deemed unearned until expenditures are incurred in the Public Safety
Police Grants Fund.
$14,533 represents the unused portions of prepaid aquatic fees in the Aquatic Center Fund.
Capital Projects Fund
Capital Projects Reserve fund has $71,596 of unearned revenue represents deposits for street
improvements and public facilities, as the funds have not been spent as of June 30, 2015.
Business-type Activities
The balance of $143,665 represents the unused portions of prepaid golf fees, value of unredeemed
gift certificates and unearned rent.
Component Unit
The balance of $91,430 represents the unused portions of prepaid banquets.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 85 -
11. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES (CONTINUED):
Deferred Inflows of Resources
Major Governmental Funds
General Fund
On March 13, 1997, the former Redevelopment Agency (Agency) purchased land from the City for
the purpose of developing a second golf course financed by a note in the amount of $2,055,000.
The note has no specific due date. Recognition of the revenue from the sale has been reported as
deferred inflows of resources until it becomes available.
On March 13, 1997, the City entered into an agreement with subsequent amendments on
June 4, 1997, May 18, 2004, and May 12, 2009, with the Palm Desert Recreational Facilities
Corporation (Corporation) for the use of property at the City's Golf Resort (Desert Willow).
Payment is due when the Corporation's revenues exceed its expenses. At June 30, 2015, the
Corporation owed the City rent totaling $285,000, which will be recognized as revenue by the City
when the rent is paid by the Corporation.
The State of California collects taxes and fees for the City and makes payments to the City at
various times. Due to the City’s policy of recognizing revenue, the amount of $291,996 for sales
tax has been reported as unavailable.
The City entered into several individual loan agreements with residents of the Highlands Utility
Undergrounding Assessment District No. 04-01. The residents agreed to pay to the City the full
cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the loan
along with all accrued interest is due and payable at the earliest of September 2, 2036, or any
change in ownership of the property. As of June 30, 2015, $25,535 in interest has been accrued.
Recognition of the interest revenue has been reported as unavailable until it becomes due.
Interest in the amount of $57,065 on the advance from the General Fund to the Energy
Independence Special Revenue Fund is reported as unavailable revenue.
Interest in the amount of $3,322 on investment purchased is reported as unavailable revenue.
Low and Moderate Housing Asset Special Revenue Fund
Uncollected interest of $33,938 due from the Palm Desert Development Company has been
reported as unavailable.
Measure A Special Revenue Fund
Unavailable revenue of $4,576,270 is related to expenditures incurred through June 30, 2015 which
are to be reimbursed from other governments, but have not been received within the availability
period.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 86 -
11. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES (CONTINUED):
Deferred Inflows of Resources (Continued)
Other Governmental Funds
Special Revenue Funds
Interest accrued on loans of $184,262 on loans receivable through the City’s EIP Program is
reported as unavailable (see Note 3).
The Community Development Block Grant Special Revenue Fund has $13,663 in a home
improvement loan as unavailable.
Debt Service Fund
Assessment receivables in the amount of $1,347,184 represent future assessments to be received
from property owners in Highlands Undergrounding Assessment Districts 04-1 to pay for long-
term obligations incurred in making capital improvements in the Assessment District. Recognition
of the revenue from the assessments has been deferred until it becomes available. Once received,
the monies will be used to make annual debt service payments.
12. OTHER POST-EMPLOYMENT BENEFITS:
a. Plan Description:
In addition to the pension benefits described in Note 8, the City provides other
post-employment benefits (OPEB) through the California Employers’ Retiree Benefit Trust
Fund (CERBT), an agent multiple-employer defined benefit healthcare plan administered by
the California Public Employees’ Retirement System (CalPERS).
All full-time or part-time employees who meet the eligibility requirements for this program
may continue their medical coverage through the CalPERS Health Plan and receive
reimbursement from the City for a portion of the costs for the coverage. Separate financial
statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North, 400
Q Street, Sacramento, CA 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 87 -
12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (Continued):
Employees Hired Prior to January 1, 2008 (Continued)
The City’s contribution towards the coverage is based on years of service as follows:
Consecutive Years of Service City’s Contribution
With the City at Retirement Percentage
10 years of service 50%
11 years of service 55%
12 years of service 60%
13 years of service 65%
14 years of service 70%
15 or more years of service 75%
Employees Hired On or After January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or
after age 50 with at least 15 consecutive years of service with the City. Eligible employees
must be covered under the CalPERS Health Plan at the time of retirement and elect to
participate in the stipend program within 30 days of retirement. The stipend is discontinued
when the retiree reaches Medicare eligibility age. The City’s contribution towards the
coverage will be applied to the lowest cost plan and is based on age at retirement and
consecutive years of service with the City as outlined in the following table:
Age 15 16 17 18 19 20 21 22 23 24 25+
50 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
51 10% 15% 20% 25% 30% 35% 40% 45% 50% 50% 50%
52 20% 25% 30% 35% 40% 45% 50% 50% 50% 50% 50%
53 30% 35% 40% 45% 50% 50% 50% 50% 50% 50% 50%
54 40% 45% 50% 50% 50% 50% 50% 50% 50% 50% 50%
55+ 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Consecutive Years of Service at Retirement
Employees with at least 5 years of service, not meeting the eligibility requirements for the
stipend program, who retire simultaneously from the City and CalPERS are eligible to continue
medical coverage through the CalPERS Health Plan. The City is required to pay the CalPERS
minimum employer contribution ($119 in 2014 and $122 in 2015) for these employees.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 88 -
12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (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%.
b. Funding Policy:
The contribution requirements of plan members and the City are established and may be
amended by the City, City Council, and/or the employee associations. Currently, contributions
are not required from plan members. During the fiscal year ended June 30, 2015, the City
contributed $358,776 to the plan. The purpose of these contributions is to cover the required
City contribution rate of 2.96% of annual covered payroll (annual payroll of active employees
covered by the plan) and to prefund benefits. As a result, the City calculated and recorded a
Net OPEB Asset, representing the difference between the Annual Required Contribution
(ARC) and actual contributions, as presented below:
Annual required contribution (ARC) 342,882$
Interest on Net OPEB obligation (asset) (596,472)
Adjustment to ARC 567,342
Annual OPEB cost 313,752
Contribution made (358,776)
Increase in Net OPEB obligation (asset) (45,024)
Net OPEB obligation (asset) at June 30, 2014 (8,448,611)
Net OPEB obligation (asset) at June 30, 2015 (8,493,635)$
The contribution rate of 2.96% is based on the ARC of $342,882, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis is projected to cover the annual
normal cost and the amortization of unfunded actuarial accrued liabilities (or funding excess)
over a thirty year period.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 89 -
12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
c. Annual OPEB Cost and Net OPEB Obligation (Asset):
For fiscal year 2015, the City’s annual OPEB cost (expense) was $313,752. Information on the
annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation
(Asset) is available for June 30, 2015 and the two previous fiscal years, are presented below:
Actual Percentage of
Fiscal Annual Contribution Annual Net OPEB
Year OPEB (Net of OPEB Cost Obligation
Ended Cost Adjustments) Contributed (Asset)
6/30/2013 $ 380,816 $ 85,221 22% $ (7,968,971)
6/30/2014 296,678 776,318 262% (8,448,611)
6/30/2015 313,752 358,776 114% (8,493,635)
d. Funded Status and Funding Progress:
As of June 30, 2013, the most recent actuarial valuation date, the plan was 86% funded. The
actuarial accrued liability for benefits was $11.23 million, and the actuarial value of assets was
$9.71 million, resulting in an unfunded actuarial accrued liability (UAAL) of $1.52 million.
The covered payroll (annual payroll of active employees covered by the plan) was
$9.67 million, and the ratio of the UAAL to the covered payroll was 16%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
City are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to basic financial statements, presents
multi-year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits.
e. Actuarial Methods and Assumptions:
Projections of benefits for financial reporting purposes are based on the substantive plan and
include the types of benefits provided at the time of each valuation. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the
long-term perspective of the calculations.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 90 -
12. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
e. Actuarial Methods and Assumptions (Continued):
In the June 30, 2013 actuarial valuation, the entry age normal actuarial cost method was used.
The actuarial assumptions included a 7.06% investment rate of return (net of administrative
expenses) and an annual healthcare cost trend rate of 7.5% in 2015, reduced by decrements to
an ultimate rate of 5% in 2020. A 3.0% per annum in aggregate in future salaries is also
assumed in the valuation. The City’s unfunded actuarial accrued liability will be amortized as
a level percentage of projected covered payroll on a closed basis. The amortization period at
June 30, 2015, was 24 years.
13. SPECIAL ASSESSMENT DEBT:
Below is a summary of the changes in the special assessment bonds payable:
Balance at Payments and Balance at Due Within
July 1, 2014 Additions Reductions June 30, 2015 One Year
2003 Assessment
Revenue Bonds 2,245,000$ -$ (230,000)$ 2,015,000$ 155,000$
AD 98-1 Limited Obligation
Refunding Bonds 375,000 - (85,000) 290,000 65,000
CFD 2005-1 Special Tax
Bonds Series 2006A 54,645,000 - (1,285,000) 53,360,000 1,345,000
AD 2004-2 Limited Obligation
Improvement Bonds 24,390,000 - (615,000) 23,775,000 590,000
2008 Special Tax
Refunding Bonds 4,730,000 - (1,000,000) 3,730,000 1,030,000
86,385,000$ -$ (3,215,000)$ 83,170,000$ 3,185,000$
The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special
Improvement Acts and the 1982 Mello-Roos Community Facilities Act (1982 Bonds). The City has
no liability to 1911 Act bondholders until assessments have been collected from the property
owner. Such liability is then recorded in the Agency Funds. Therefore, the 1911 Bonds are not
recorded as liabilities in the accompanying financial statements.
The City also has no liability to the 1915 Act bondholders or the bondholders of bonds issued
under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the tax
rolls. However, the City may take certain actions to assume secondary liability for all or part of
1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are consummated.
Special assessment bonds payable, as described below, and are not recorded as long-term
liabilities, as these obligations do not constitute a debt or obligation of the City.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 91 -
13. SPECIAL ASSESSMENT DEBT (CONTINUED):
2003 Assessment Revenue Bonds
In June 2003, the Palm Desert Financing Authority issued $4,423,000 in 2003 Assessment
Revenue Bonds. The proceeds were used to purchase three series of limited obligation
improvement bonds issued by the City in connection with the financing and refinancing of certain
improvements of benefit to property within the City’s Assessment District No. 94-2 (Sunterrace),
Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Undergrounding Assessment
District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide
funds for public improvements in the respective assessment districts.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2016 155,000$ 101,286$ 256,286$
2017 160,000 93,489 253,489
2018 170,000 85,154 255,154
2019 175,000 76,356 251,356
2020 175,000 67,344 242,344
2021 - 2025 625,000 226,350 851,350
2026 - 2029 555,000 61,947 616,947
2,015,000$ 711,926$ 2,726,926$
As of June 30, 2015, the principal amounts to be repaid by each assessment district to pay off the
loans from the Financing Authority are as follows:
Assessment District 94-3 510,000$
Assessment District 01-1 1,515,000
2,025,000$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 92 -
13. SPECIAL ASSESSMENT DEBT (CONTINUED):
Assessment District 98-1 Limited Obligation Refunding Improvement Bonds
The bonds were issued in an original amount of $2,955,000 in February 2004, to redeem and
defease the outstanding limited obligation improvement bonds of Assessment District No. 98-1,
which were issued in 1998. The bonds are secured by unpaid assessments on parcels within the
District.
Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the
scheduled debt service requirements are to be included on the regular county tax bills for the
assessed parcels for which there are unpaid assessments. Interest rates vary from 1.5% to 5.1%
with interest payable semi-annually on March 2 and September 2, with principal maturing annually
on September 2.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2016 65,000$ 12,786$ 77,786$
2017 70,000 9,536 79,536
2018 75,000 5,955 80,955
2019 80,000 2,040 82,040
290,000$ 30,317$ 320,317$
Community Facilities District No. 2005-1
The bonds were issued in an original amount of $50,000,000 in May 2006, to construct and acquire
certain public facilities of benefit to the District, provide for the establishment of a reserve account,
provide capitalized interest, and pay the costs of issuance of the bonds. The bonds are secured by
and payable from a pledge of net taxes derived from special taxes to be levied by the District on
real properties within the boundaries of the District from the net proceeds of any foreclosure
actions brought following delinquency in the payment of the special taxes, and from amounts held
in certain funds under the indenture. Interest rates vary from 4.0% to 5.5% with interest payable
semi-annually on March 1 and September 1, with principal maturing annually on September 1.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 93 -
13. SPECIAL ASSESSMENT DEBT (CONTINUED):
Community Facilities District No. 2005-1 (Continued)
In May 2007, the 2007 Bonds were issued in the amount of $17,915,000 pursuant to the Bond
Indenture in May 2006, as supplemented by a First supplemental Indenture in May 2007, to
provide construct and acquire certain public facilities of benefit to the District, provide capitalized
interest, and pay the costs of issuance of the 2007 Bonds. The bonds are secured by and payable,
on parity with the bonds issued in May 2006 for $50,000,000, from a pledge of net taxes derived
from special taxes to be levied by the District on real properties within the boundaries of the
District from the net proceeds of any foreclosure actions brought following delinquency in the
payment of the special taxes, and from amounts held in certain funds under the indenture. Interest
rates vary from 3.875% to 5.20% with interest payable semi-annually on March 1 and September
1, with principal maturing annually on September 1.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2016 1,345,000$ 2,762,784$ 4,107,784$
2017 1,410,000 2,697,633 4,107,633
2018 1,480,000 2,627,662 4,107,662
2019 1,550,000 2,553,186 4,103,186
2020 1,625,000 2,474,935 4,099,935
2021 - 2025 9,425,000 11,034,108 20,459,108
2026 - 2030 12,175,000 8,235,476 20,410,476
2031 - 2035 15,780,000 4,526,414 20,306,414
2036 - 2038 8,570,000 547,575 9,117,575
53,360,000$ 37,459,773$ 90,819,773$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 94 -
13. SPECIAL ASSESSMENT DEBT (CONTINUED):
Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds,
Series 2007
In March 2007, the City of Palm Desert issued $29,430,000 Limited Obligation Improvement
Bonds. The proceeds of the Bonds will be used to finance certain infrastructure improvements
within the City’s Section 29 Assessment District (No. 2004-02). The debt service on the bonds is
to be paid by assessments secured on the property tax rolls of those properties benefiting from the
improvements. The bonds consist of Serial Bonds in the amount of $6,870,000 with interest
ranging from 4.00% to 4.70% payable semiannually on March 2 and September 2. Bond maturities
begin September 2, 2009, and continue annually through 2019. Term bonds in the amount of
$2,525,000 carry an interest rate of 4.75% and mature September 2, 2022. Term bonds in the
amount of $5,110,000 carry an interest rate of 5.05% and mature September 2, 2027. Term bonds
in the amount of $14,925,000 carry an interest rate of 5.10% and mature September 2, 2037.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2016 590,000$ 1,172,360$ 1,762,360$
2017 610,000 1,145,655 1,755,655
2018 640,000 1,117,210 1,757,210
2019 670,000 1,086,913 1,756,913
2020 700,000 1,054,885 1,754,885
2021 - 2025 4,030,000 4,726,533 8,756,533
2026 - 2030 5,135,000 3,584,968 8,719,968
2031 - 2035 6,585,000 2,100,563 8,685,563
2036 - 2038 4,815,000 376,508 5,191,508
23,775,000$ 16,365,595$ 40,140,595$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 95 -
13. SPECIAL ASSESSMENT DEBT (CONTINUED):
2008 Special Tax Refunding Bonds
In December 2007, the City of Palm Desert Communities Facilities District No. 91-1 (Indian Ridge
Public Improvements) issued $10,935,000 of Special Tax Refunding Bonds, Series 2008 to refund
and defease all the outstanding $16,260,000 principal amount of the Palm Desert Financing
Authority 1997 Revenue Bonds. These bonds were issued pursuant to the provisions of the
Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2,
Title 5, of the Government Code of the State of California.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2016 1,030,000$ 118,983$ 1,148,983$
2017 1,070,000 81,698 1,151,698
2018 1,105,000 41,719 1,146,719
2019 170,000 17,600 187,600
2020 175,000 10,700 185,700
2021 180,000 3,600 183,600
3,730,000$ 274,300$ 4,004,300$
Bond Reserve Requirements
At June 30, 2015, the fund balance reserve requirements and actual reserve balances were as
follows:
Requirement Actual
Assessment District 98-1 29,000$ 84,080$
2003 Financing Authority Revenue Bonds 243,476 353,338
CFD 2005-1 Special Tax Bonds 4,107,784 4,158,178
Assessment District 29 1,762,360 1,826,930
2008 Special Tax Refunding Bonds 1,093,500 1,726,046
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 96 -
14. CONDUIT DEBT OBLIGATIONS:
2003 Series A - $22,310,000 Lease Revenue Bonds
In December 2003, the Palm Desert Financing Authority (Authority) issued $22,310,000 in Lease
Revenue Bonds. The proceeds of the Bonds were used to: a) finance the construction of a County
animal shelter and related facilities located in the unincorporated area of Thousand Palms,
California; b) finance construction of certain County medical clinic facilities located in Mecca,
California; c) refund the Palm Desert Financing Authority Lease Revenue Bonds Series 1996;
d) acquire a debt service reserve insurance policy; e) fund capitalized interest on the bonds; and
f) pay costs of issuance of the bonds. The Authority will lease sites relating to each project from
the County of Riverside (County) pursuant to a Site Lease dated as of December 1, 2003, and will
lease back to the County the Sites and the Facilities pursuant to a Facilities Lease dated
December 1, 2003. Under the Lease, the County will pay to the Trustee Base Rental Payments in
the amount equal to the scheduled debt service of the Bonds. The Authority will assign its right to
receive the Base Rental Payments to the Trustee for the benefit of the owners of the bonds. The
debt service on the bonds is to be paid solely from lease payments made by the County. The
Authority has no obligation to make the debt service payments in the event that the County is not
able to make the required base rental payments. As of June 30, 2015, the outstanding amount was
$15,885,000.
2008 Series A - $72,445,000 Lease Revenue Bonds
In November 2008, the Palm Desert Financing Authority (Authority) issued $72,445,000 in Lease
Revenue Bonds. The proceeds of the Bonds were used to: a) finance the construction, installation,
acquisition, development and rehabilitation of certain public capital improvements within the
County, including the Palm Desert Sheriff’s Station Facilities (as described herein), community
centers, a multi-service center, park improvements and other various infrastructure improvements;
b) fund capitalized interest on the 2008 Series A Bonds related to the Palm Desert Sheriff Station
Facilities through August 31, 2010 and with respect to the Multi-Service Center Facilities (as
described herein) through December 31, 2009; c) fund a deposit into the Reserve Account as
additional security for the 2008 Series A Bonds; and d) pay certain costs associated with the
issuance and delivery of the 2008 Series A Bonds. Under the Lease, the County will pay to the
Trustee Base Rental Payments in the amount equal to the scheduled debt service of the Bonds. The
Authority will assign its right to receive the Base Rental Payments to the Trustee for the benefit of
the owners of the bonds. The debt service on the bonds is to be paid solely from lease payments
made by the County. The Authority has no obligation to make the debt service payments in the
event that the County is not able to make the required base rental payments. As of June 30, 2015,
the outstanding amount was $46,260,000.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 97 -
15 OTHER DISCLOSURES:
The Palm Desert Recreational Facilities Corporation has a deficit of $1,495,986, which will be
eliminated by increasing revenues through banquet reservations and outings directly related to the
expansion of the outside dining terrace and the kitchen.
The Fiduciary Private-Purpose Trust Fund has a deficit of $182,804,994, which will be funded
through future property taxes collected by the County under the direction of the State. The State of
California is the responsible body for the elimination of this deficit.
16. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS:
Construction Commitments
Primary Government
Current Prior
Year Year Remaining
Spent Spent Commitment
Parks and recreation 180,711$ 166,466$ 259,931$
Low income housing 121,683 - 8,644,118
Street resurfacing - - 459,192
Street improvements - 65,022 119,117
Freeway on-ramp improvements 6,858,911 1,180,200 515,889
Desert Willow capital improvements 21,534 - 54,497
Public safety building improvements 980 3,920 2,100
Recycle projects 12,300 - 72,700
Community development planning 416,797 - 461,659
Governmental Software Implementation - - 27,500
Alessandro West improvement project 33,721 - 129,259
Portola @ Fred Waring Free Right Turn 181,091 38,384 602,896
111 Right Turn to Fred Waring Drive 1,362 - 454,927
City Hall building improvements - - 117,800
Property sales / transfers 54,446 - 252,906
7,883,536 1,453,992 12,174,491
Miscellaneous non construction 126,815 - 248,586
8,010,351$ 1,453,992$ 12,423,077$
Project
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 98 -
16. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS (CONTINUED):
Construction Commitments (Continued)
Fiduciary Funds
Current Prior
Year Year Remaining
Spent Spent Commitment
Parks and recreation -$ -$ 444$
Low income housing - - 29,090
Desert Willow capital improvements - - 667,246
Property sales / transfers - - 2,497
- - 699,277
Miscellaneous non construction 450 4,050 312,745
450$ 4,050$ 1,012,022$
Project
17. DISSOLUTION OF CALIFORNIA REDEVELOPMENT AGENCIES:AND WIND-DOWN BY
SUCCESSOR AGENCIES:
The California Legislature adopted AB X1 26 in June 2011, adding Part 1.8 (commencing with
Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California
Health and Safety Code. Part 1.8 immediately suspended the power of California redevelopment
agencies to engage in most activities, except to implement existing contracts, meet already-
incurred obligations, preserve existing assets and prepare for impending dissolution. Pursuant to
Part 1.85, all redevelopment agencies in the State (each a “Dissolved RDA”) were dissolved as of
February 1, 2012, and a successor agency (“SARDA”) was established for each former
redevelopment agency to wind-down the affairs of its former redevelopment agency.
Since AB X1 26, there have been several amendments and additions the provisions of Parts 1.8
and 1.85, including among others, AB 1484 adopted in June 2012 and SB 107, adopted in
September 2015, after the audited period of these financial statements. Parts 1.8 and 1.85, as
amended and supplemented after AB X1 26, is referred to below as the “Dissolution Act.”
Pursuant to the Dissolution Act, the city which formed a redevelopment agency will serve as the
successor agency unless the city elects to do otherwise. On August 25, 2011, the City Council
adopted Resolution No. 2011-76, electing for the City to serve as the Successor Agency to the
Palm Desert Redevelopment Agency.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 99 -
17. DISSOLUTION OF CALIFORNIA REDEVELOPMENT AGENCIES AND WIND-DOWN BY
SUCCESSOR AGENCIES (CONTINUED):
On February 9, 2012, the City Council of the City, acting as the governing body of the Successor
Agency, established rules and regulations for the operations of the Successor Agency to assume
these successor functions pursuant to Resolution No. SA-RDA001. Although the Board of
Directors of the Successor Agency is comprised of the same individuals as the City Council of the
City, subdivision (g) of Section 34173 of the Dissolution Act, expressly affirms that the Successor
Agency is a separate public entity from the City, that the two entities shall not merge, and that the
liabilities of the former redevelopment agency will not be transferred to the City nor will the assets
of the former redevelopment agency become assets of the City.
The Dissolution Act requires the establishment of an oversight board for each successor agency.
Under the Dissolution Act, certain successor agency actions must first be approved by the
oversight board, and the oversight board is also required to direct the successor agency to take
certain actions in connection with the wind down of the affairs of the Dissolved RDA. The role of
each successor agency is to administer the wind down of each Dissolved RDA which includes
making payments due on enforceable obligations, disposing of the assets (other than housing
assets) and pursuant to due diligence reviews described below, remitting the unencumbered
balances of the Dissolved RDAs to the County Auditor-Controller for distribution to the affected
taxing entities.
The Dissolution Act allowed the sponsoring community that formed the Dissolved RDA to elect to
assume the housing functions and take over the housing assets of the Dissolved RDA. If the
sponsoring community does not elect to become the Successor Housing Agency and assume the
Dissolved RDA’s housing functions, such housing functions and all related housing assets will be
transferred to the local housing authority in the jurisdiction. The City of Palm Desert elected on
February 9, 2012 to transfer the responsibility to serve as the Housing Successor Agency to the
Palm Desert Housing Authority. As required by the Dissolution Act, the Housing Authority, as the
Housing Successor Agency, submitted to the State Department of Finance (“DOF”) of a list of
housing assets to be transferred by the Successor Agency to the Housing Successor Agency. On
August 31, 2012, the DOF issued a letter indicating that the DOF did not have any object to such
housing asset list.
After the date of dissolution, the housing assets, obligations, and activities of the Dissolved RDA
were transferred and are reported in the Housing Authority Special Revenue Fund beginning in
fiscal year 2011-2012. 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 Dissolution Act also established roles for the County Auditor-Controller (the “CAC”), the
DOF, and the California State Controller’s office in the dissolution process and the satisfaction of
enforceable obligations of the Dissolved RDAs.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 100 -
17. DISSOLUTION OF CALIFORNIA REDEVELOPMENT AGENCIES:AND WIND-DOWN BY
SUCCESSOR AGENCIES (CONTINUED):
The CAC is charged with establishing a Redevelopment Property Tax Trust Fund (the “RPTTF”)
for each successor agency and depositing into the RPTTF for each six-month period the amount of
property taxes that would have been redevelopment property tax increment had the Dissolved RDA
not been dissolved.
The Successor Agency is required to prepare a recognized obligation payment schedule (the
“ROPS”) approved by the oversight board setting forth the amounts due for each enforceable
obligation during each ROPS period. The ROPS is submitted to the CAC and the DOF for
consideration. The CAC will only make payments to the Successor Agency from the RPTTF fund
based on the ROPS amount approved by the DOF.
As part of the dissolution process, AB1484 required the Successor Agency to have due diligence
reviews of both the low and moderate income housing funds and all other funds completed by
October 15, 2012 and January 15, 2013 to compute the funds (cash) which were not needed by the
Successor Agency to be retained to pay for existing enforceable obligations. These funds were to
be remitted to the CAC after the DOF completed its review of the due diligence reviews. The
Successor Agency paid a total amount of $40,988,399 to the CAC based on the final determination
by the DOF.
The DOF issued a Finding of Completion on May 15, 2013 in which DOF concurred that the
Successor Agency has made full payments of any payments required as a result of the due
diligence reviews. The Finding of Completion allows the placement of loan agreements between
the former redevelopment agency and the City (which were previously voided by operation of the
Dissolution Act) on the ROPS. On February 23, 2015, the Oversight Board approved Resolution
OB-114, making the finding to re-establish the City loans as enforceable obligations of the
Successor Agency. DOF subsequently approved this action on April 10, 2015. When the
repayments begin, 20% of each repayment of the loan agreement amounts will be allocated to the
Low Moderate Housing Asset Special Revenue Fund. At June 30, 2015, the long-term advances
totaled $22,655,000. In the financial statements $9,236,000 is reported in the General Fund and
$13,419,000 is reported in Other Governmental Funds. An offset of 20% has been reported as due
to other funds in the respective funds totaling $4,531,000. See further discussion under Note 18.
The State Controller of the State of California has been directed to review the propriety of any
transfers of assets between Dissolved RDA and other public bodies that occurred after
January 1, 2011. If the public body that received such transfers is not contractually committed to a
third party for the expenditure or encumbrance of those assets, the State Controller is required to
order the available assets to be transferred to the public body designated as the successor agency.
The State Controller’s completed its review on March 14, 2013 and did not identify any
unallowable transfers of assets that occurred during the audit between the former RDA, the City
and or other public agencies.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 101 -
17. DISSOLUTION OF CALIFORNIA REDEVELOPMENT AGENCIES:AND WIND-DOWN BY
SUCCESSOR AGENCIES (CONTINUED):
The Successor Agency’s use and disposition of all properties held (Long Range Property
Management Plan(LRPMP)), was approved by the California Department of Finance on
June 2, 2014. The LRPMP allowed the Successor Agency to transfer property used for
government purposes with a cost basis of $6,390,263 to the City.
18. SUCCESSOR AGENCY DISCLOSURES:
The assets and liabilities of the dissolved Redevelopment Agency were transferred to the Successor
Agency to the Palm Desert Redevelopment Agency on February 1, 2012 as a result of the
dissolution of the former Redevelopment Agency. The Successor Agency is acting in a fiduciary
capacity for the assets and liabilities. Disclosures related to these transactions are as follows:
Advances To/From the City of Palm Desert
The composition of advances as of June 30, 2015, was as follows:
Advances From Advances To Amount
General Fund Successor Agency $ 9,236,000
Other Governmental Funds Successor Agency 13,419,000
Subtotal 22,655,000
Low Moderate Housing Asset
Special Revenue Fund Successor Agency 17,821,288
Total $ 40,476,288
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 102 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Advances To/From the City of Palm Desert (Continued)
The advances from the General Fund, Capital Projects Reserve Fund and Other Governmental
Funds were made to the Successor Agency (former Redevelopment Agency) for capital
improvements. The advances from the Housing Authority Special Revenue Fund to the Successor
Agency (former Redevelopment Agency) were made to cover the SERAF payment.
The Dissolution Act specifies the actions to be taken and the method of repayment by the
Successor Agency (former Redevelopment Agency) to the various funds of the City for such loans.
Upon application and approval by the successor agency and approval by the oversight board, loan
agreements entered into by former redevelopment agency and the city shall be deemed to be
enforceable obligations provided that the oversight board makes a finding that the advances were
for legitimate redevelopment purposes. The accumulated interest on the remaining amount of
advances will be recalculated pursuant to the provisions of SB 107.
The advances repayable to City Funds are to be repaid with a defined schedule over a reasonable
term of years, are subject to a formula distribution, and have a lower priority for repayment relative
to the repayment of SERAF loans.
The advances related to the borrowing for the SERAF payment have a priority over repayment of
the other advances. 20% of the repayment of the other advances not related to the SERAF advances
shall be deducted and transferred to the Low and Moderate Income Housing Asset Fund (Housing
Authority). Both SERAF and City Loans were approved by both the Oversight Board and DOF as
enforceable obligations of the Successor Agency. The initial repayments of the SERAF loan has
been included and approved with the 15-16A ROPS period.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 103 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Capital Assets
Balance at Balance at
July 1, 2014 Transfers Additions Deletions June 30, 2015
Capital assets, not
being depreciated:
Land 51,390,191$ -$ -$ (9,621,894)$ 41,768,297$
Construction-in-progress 492,343 (968,326) 475,983 - -
Total capital assets, not
being depreciated 51,882,534 (968,326) 475,983 (9,621,894) 41,768,297
Capital assets, being
depreciated:
Buildings 949,776 - - - 949,776
Improvements other
than buildings 5,048,117 - - - 5,048,117
Total capital assets,
being depreciated 5,997,893 - - - 5,997,893
Less accumulated
depreciation for:
Buildings (189,595) - (23,744) - (213,339)
Improvements other
than buildings (3,820,419) - (252,406) - (4,072,825)
Total accumulated
depreciation (4,010,014) - (276,150) - (4,286,164)
Capital assets, being
depreciated, net 1,987,879 - (276,150) - 1,711,729
Capital assets, net -
Governmental Activities 53,870,413$ (968,326)$ 199,833$ (9,621,894)$ 43,480,026$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 104 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2015, was as follows:
Balance Additions/ Repayments/ Balance Due Within
July 1, 2014 Accretio Reductions June 30, 2015 One Year
Project Area No. 1
2002A TARRBs, $22,070,000 22,070,000$ -$ -$ 22,070,000$ -$
2003 TARBs, $19,000,000 12,660,000 - - 12,660,000 -
2004A TARRBs, $24,945,000 15,285,000 - (1,235,000) 14,050,000 1,280,000
2006 A & B TARBs, $62,320,000 43,760,000 - (2,905,000) 40,855,000 3,075,000
2007A TARRBs, $32,600,000 13,870,000 - (3,230,000) 10,640,000 3,390,000
Project Area No. 2
2002A TARRBs, $17,310,000 9,550,000 - (870,000) 8,680,000 910,000
2003 TARBs, $15,745,000 15,745,000 - - 15,745,000 -
2006 A-D TARBs, $67,618,213 56,068,864 950,656 (2,275,000) 54,744,520 1,320,000
Project Area No. 3
2003 TARBs, $4,745,000 3,570,000 - (120,000) 3,450,000 125,000
2006 A-C TABs, $15,059,526 15,718,800 271,798 (330,000) 15,660,598 370,000
Project Area No. 4
1998 TARBs, $11,020,000 7,805,000 - (360,000) 7,445,000 375,000
2001 TARBs, $15,695,000 12,540,000 - (375,000) 12,165,000 390,000
2006A TARBs, $19,243,089 18,499,653 359,570 (760,000) 18,099,223 690,000
Combined Low and
Moderate Housing
2002 TARBs, $12,100,000 9,130,000 - (330,000) 8,800,000 345,000
2007 TARBs, $86,155,000 61,445,000 - (5,505,000) 55,940,000 5,785,000
Subtotal 317,717,317 1,582,024 (18,295,000) 301,004,341 18,055,000
Add: Unamortized
ond premiu 4,996,725 - (475,703) 4,521,022 -
Total 322,714,042$ 1,582,024$ (18,770,703)$ 305,525,363$ 18,055,000$
Tax Allocation bonds used for capital improvements are special obligations of the Agency and the
Financing Authority (a component unit of the Agency) and are secured by an irrevocable pledge of tax
revenues and other funds as provided under the Bond Resolution. The bonds and any interest thereon
are not a debt of the City, the State of California or any of its political subdivisions, and neither the
City, the State of California nor any of its political subdivisions is liable on the bonds, nor in any event
shall the bonds and interest thereon be payable out of any funds or properties other than those provided
under the Bond Resolution. The Agency purchased insurance from Ambac Assurance Corporation
(Ambac) and MBIA Insurance Corporation (MBIA) for the purpose of enhancing the creditworthiness
of the bonds.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 105 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
There are unspent bond proceeds remaining with respect to each of the following series of tax
allocation bonds:
Project Area No. 1 Series 2006 A
Project Area No. 1 Series 2007
Project Area No. 2 Series 2006 A, B & D
Project Area No. 3 Series 2003
Project Area No. 3 Series 2006 A B & C
Project Area No. 4 Series 2001
Project Area No. 4 Series 2006 A & B
Housing Set Aside Series 2007
California Health and Safety Code Section 34177(i) requires successor agencies to use bond
proceeds for the purposes for which bonds were sold unless the purposes can no longer be
achieved, in which case the proceeds may be used to defease the bonds. Pursuant to
Section 34191.4, if the Successor Agency receives a finding of completion from the California
Department of Finance, which is predicated upon completion of a number of required payments
and transfer in furtherance of the wind down process under the Dissolution Act, notwithstanding
any other provision of law, bond proceeds derived from bonds issued on or before
December 31, 2010 that are in excess of the amounts needed to satisfy approved enforceable
obligations must thereafter be expended in a manner consistent with the original bond covenants
and may include the expenditure of funds to complete the projects that are the subject of the
enforceable obligations or the creation of reserves therefor. The Successor Agency received a
finding of completion in a letter dated May 15, 2013 from the California Department of Finance
which allowed the Successor Agency to utilize proceeds from bonds issued prior to
January 1, 2011 in a manner consistent with the original bond covenants.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 106 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
On November 8, 2010, Ambac Financial Group, Inc. (“Ambac Group”), whose principal operating
subsidiary, Ambac Assurance Corporation, is a guarantor of public finance and structured finance
obligations, announced that it filed for a voluntary petition for relief under Chapter 11 of the United
States Bankruptcy Code (“Bankruptcy Code”) in the United States Bankruptcy Court for the Southern
District of New York (“Bankruptcy Court”). Ambac Group will continue to operate in the ordinary
course of business as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in
accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy
Court. On May 1, 2013, Ambac Group completed its financial restructuring and emerged from
Chapter 11 bankruptcy.
On February 18, 2009, MBIA announced the restructuring of its financial guaranty insurance
operations into two separately capitalized sister companies, with one entity (MBIA Illinois) assuming
the risk associated with its US municipal exposures, and the other (MBIA Corp) insuring the remainder
of the portfolio. Effective March 19, 2009, MBIA Illinois was renamed National Public Finance
Guarantee Corporation (“NPFGC”).
The Redevelopment Plans for the Dissolved RDA’s project areas set forth certain limitations on the
maximum aggregate amount of tax increment that the Dissolved RDA could have received with
respect to each project area, or if applicable, each component area of the project area (each, a “TI
Cap”). Upon reaching the TI Cap, the Dissolved RDA would not be able to receive any additional
tax increment derived from the project area (or component area, as the case may be) to pay
outstanding debt. Based on projections done before the enactment of the Dissolution Act, the
Dissolved RDA expected that the TI Cap for the Amended Territory of Project Area No. 1 would
be reached around fiscal year 2021-22, before the final maturity date of the bonds issued for
Project Area No. 1. The Dissolved RDA had planned and expected to use excess tax increment
from Project Area No. 1 to call bonds before reaching the TI Cap to avoid any bond defaults.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 107 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
In light of the uncertainties regarding the TI Cap, the Successor Agency requested to retain moneys
on hand to enable it to pay or redeem Project Area No. 1 bonds, as part of the Other Funds and
Account Due Diligence Review (the “DDR”). The DDR was mandated by AB 1484 to determine
the amount of unencumbered funds that the Successor Agency had on hand to remit to the County
Auditor-Controller for distribution to taxing entities. In the DOF’s May 5, 2013 determination
letter regarding the DDR, the DOF denied the Successor Agency’s request to retain funds in light
of the TI Cap, stating that it is the DOF’s “expectation that ABx1 26/AB 1484 allow enforceable
obligations to be listed on the ROPS and payable out of available RPTTF until such obligation has
been satisfied”. Pursuant to SB 107 (adopted in September 2015), Section 34189(a) of the
Dissolution Act has been amended, clarifying that the Successor Agency is not subject to the TI
Cap for the purposes of the payments of bonds or any other enforceable obligations (except where
the contract for the enforceable obligation specifies that the funding for such project would cease
once such limitation was realized).
2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
On March 13, 2002, the Palm Desert Financing Authority issued $22,070,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2002 Series A. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency. A portion of the proceeds of the
loan was used to prepay the prior loan, which affected the current refunding of a like portion of the
prior bonds. The remainder was used to fund various redevelopment capital projects of the Agency
in Project Area No. 1. The bonds consist of $10,905,000 term bonds at 5.00% due April 1, 2025,
and $11,165,000 term bonds at 5.10% due April 1, 2030. Interest is payable semi-annually on
April 1 and October 1. Mandatory sinking fund redemptions begin April 1, 2024.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2016 -$ 1,114,665$ 1,114,665$
2017 - 1,114,665 1,114,665
2018 - 1,114,665 1,114,665
2019 - 1,114,665 1,114,665
2020 - 1,114,665 1,114,665
2021 - 2025 10,905,000 5,334,325 16,239,325
2026 - 2030 11,165,000 1,764,855 12,929,855
22,070,000$ 12,672,505$ 34,742,505$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 108 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 1)
On August 5, 2003, the Financing Authority issued $19,000,000 Tax Allocation Revenue Bonds
(Project Area No. 1, as amended) 2003 Series. The proceeds of the bonds were disbursed to make a
loan to the Redevelopment Agency. The Agency used the proceeds of the loan to fund various
redevelopment capital projects of the Agency and to finance costs of issuance of the bonds. The
bonds bear interest at 5.0%. They consist of $7,050,000 serial bonds with principal payments due
in 2026 and 2027, and $11,950,000 term bonds due in 2030. Interest will be payable on April 1 and
October 1 of each year beginning April 1, 2004. Principal payments will be on April 1 of the years
stated above.
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 1) are as follows:
Year Ending
June 30, Principal Interest Total
2016 -$ 633,000$ 633,000$
2017 - 633,000 633,000
2018 - 633,000 633,000
2019 - 633,000 633,000
2020 - 633,000 633,000
2021 - 2025 - 3,165,000 3,165,000
2026 - 2030 12,660,000 1,960,250 14,620,250
12,660,000$ 8,290,250$ 20,950,250$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 109 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2004 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
On June 24, 2004, the Palm Desert Financing Authority issued $24,945,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2004 Series A. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency to refinance a portion of the
Agency’s obligations from 1995, and to fund various redevelopment capital projects within or of
benefit to the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable
semi-annually on April 1 and October 1. Principal payments will be made annually beginning
April 1, 2005.
The future debt service requirements on the 2004 Series A Tax Allocation Revenue Bonds (Project
Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2016 1,280,000$ 676,100$ 1,956,100$
2017 1,335,000 618,500 1,953,500
2018 1,460,000 558,425 2,018,425
2019 1,420,000 490,900 1,910,900
2020 1,520,000 419,900 1,939,900
2021 - 2025 7,035,000 1,043,200 8,078,200
14,050,000$ 3,807,025$ 17,857,025$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 110 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation Revenue Bonds (Project Area No. 1, as Amended) 2006 Series A and Series B
(Taxable)
On July 6, 2006, the Palm Desert Financing Authority issued $37,780,000 of Tax Allocation
Revenue Bonds (Project Area No. 1, as Amended) 2006 Series A and $24,540,000 of Tax
Allocation Refunding Revenue Bonds (Project Area No. 1, as Amended) 2006 Series B (Taxable).
The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment
Agency. The proceeds of the Series A loan will be used to assist the Agency to fund various
redevelopment capital projects within or of benefit to Project Area No. 1, as Amended, pay costs of
issuance and pay the premium on a Reserve Fund surety bond. The proceeds of the Series B loan
will be used to refinance the Agency’s obligations incurred under a loan agreement entered into in
1997, pay costs of issuance and pay the premium on a Reserve Fund surety bond. The Series A
bonds consist of $26,415,000 Serial Bonds with interest rates ranging from 4.70% to 5.25%
payable semiannually on October 1 and April 1. Bond maturities begin April 1, 2017, and continue
annually through 2030. Term bonds in the amount of $11,365,000 carry an interest rate of 5.00%
and mature April 1, 2022. The Series B bonds consist of $13,220,000 Serial Bonds with interest
rates ranging from 5.56% to 5.77% payable semiannually on October 1 and April 1. Bond
maturities began April 1, 2007, and continue annually through 2012. Term bonds in the amount of
$11,320,000 carry an interest rate of 5.82% and mature April 1, 2016.
The future debt service requirements on the 2006 Series A and Series B Tax Allocation Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2016 3,075,000$ 2,093,410$ 5,168,410$
2017 1,000,000 1,914,445 2,914,445
2018 1,005,000 1,864,445 2,869,445
2019 5,065,000 1,811,683 6,876,683
2020 5,285,000 1,545,770 6,830,770
2021 - 2025 21,015,000 3,542,788 24,557,788
2026 - 2030 4,410,000 348,035 4,758,035
40,855,000$ 13,120,576$ 53,975,576$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 111 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended) 2007 Series A
On January 9, 2007, the Palm Desert Financing Authority issued $32,600,000 Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2007 Series A. The Palm Desert
Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency. The
proceeds of the 2007 Loan will be used to refinance a portion of the outstanding obligations of the
Redevelopment Agency, fund various redevelopment capital projects within the Palm Desert
Redevelopment Agency Project Area No. 1, as amended, and pay the costs associated with the
issuance of the bonds. The Series A bonds consist of $32,600,000 Serial Bonds with interest rates
ranging from 3.50% to 5.00% payable semiannually on October 1 and April 1. Bond maturities
began April 1, 2008, and continue annually through 2018.
The future debt service requirements on the 2007 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2016 3,390,000$ 532,000$ 3,922,000$
2017 3,570,000 362,500 3,932,500
2018 3,680,000 184,000 3,864,000
10,640,000$ 1,078,500$ 11,718,500$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 112 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 2)
On July 11, 2002, the Palm Desert Financing Authority issued $17,310,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 2) 2002 Series A. The Palm Desert Financing
Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to prepay
outstanding indebtedness and to fund various redevelopment capital projects within or of benefit to
the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable semi-
annually on February 1 and August 1.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 2) are as follows:
Year Ending
June 30, Principal Interest Total
2016 910,000$ 397,388$ 1,307,388$
2017 955,000 355,403 1,310,403
2018 995,000 309,806 1,304,806
2019 1,050,000 261,238 1,311,238
2020 1,100,000 209,900 1,309,900
2021 - 2023 3,670,000 281,250 3,951,250
8,680,000$ 1,814,985$ 10,494,985$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 113 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 2)
On March 26, 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation
Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to fund various redevelopment capital
projects of the Agency in Project Area No. 2. Interest rates on the bonds vary from 4.5% to 5.0%
per annum payable semi-annually on February 1 and August 1, with principal maturing as follows:
$ 875,000 Serial Bonds August 1, 2023
910,000 Serial Bonds August 1, 2024
2,485,000 Term Bonds August 1, 2026
11,475,000 Term Bonds August 1, 2033
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 2) are as follows:
Year Ending
June 30, Principal Interest Total
2016 -$ 769,006$ 769,006$
2017 - 769,006 769,006
2018 - 769,006 769,006
2019 - 769,006 769,006
2020 - 769,006 769,006
2021 - 2025 1,785,000 3,765,494 5,550,494
2026 - 2030 6,915,000 2,663,191 9,578,191
2021 - 2034 7,045,000 726,625 7,771,625
15,745,000$ 11,000,340$ 26,745,340$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 114 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D
On July 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 2 $41,340,000
Tax Allocation Refunding Revenue Bonds 2006 Series A, $1,567,118 Tax Allocation Revenue
Capital Appreciation Bonds 2006 Series B, $7,775,000 Tax Allocation Revenue Bonds 2006
Series C and $16,936,095 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006
Series D. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert
Redevelopment Agency. The proceeds of the Series A, B and C Bonds will be used to make three
loans to refinance the Agency’s obligations incurred under a loan agreement entered into in 1995,
fund various redevelopment capital projects within or of benefit to its Project Area No. 2 Reserve
Fund surety and pay costs of issuance of the bonds. The Agency will use the proceeds of the
Series D Bonds to fund various redevelopment capital projects within or of benefit to the Project
Area, fund a debt service reserve fund and pay cost of issuance of the bonds.
The Series A bonds consist of $16,250,000 Serial Bonds with interest rates ranging from 4.00% to
5.00% payable semiannually on August 1 and February 1. Bond maturities begin August 1, 2007,
and continue annually through 2026. Term bonds in the amount of $8,225,000 carry an interest
rate of 4.90% and mature August 1, 2031. Term bonds in the amount of $16,865,000 carry an
interest rate of 5.125% and mature August 1, 2036. The Series B bonds consist of $1,567,118
Capital Appreciation Bonds with a reoffering yield ranging from 3.85% to 4.08%. Bond maturities
begin April 1, 2007, and continue annually through 2010. The Series C bonds were paid off during
the fiscal year. The Series D bonds consist of $16,936,095 Capital Appreciation Bonds with a
reoffering yield ranging from 4.65% to 6.10%. Bond maturities began August 1, 2007, and
continue annually through 2035. Each year the outstanding balance is increased for the accretion
of interest associated with the bonds. The accreted interest at June 30, 2015 is $6,771,096.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 115 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Continued)
The debt service requirements schedules on the 2006 Series A Tax Allocation Refunding Revenue
Bonds, Series B Tax Allocation Revenue Capital Appreciation Bonds, Series C Revenue Bonds
and Series D Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area
No. 2) do not agree to the liability for those bonds shown in the schedule of changes. These bond
issues include capital appreciation bonds, which are issued at a discount. The carrying amount of
these bonds accretes, or increases each year. The amount shown in the schedule of changes
include the accreted value to date. The future debt service requirements are as follows:
Year Ending
June 30, Principal Interest Total
2016 1,108,312$ 2,059,088$ 3,167,400$
2017 1,208,650 2,104,238 3,312,888
2018 1,299,414 2,172,011 3,471,425
2019 1,362,179 2,238,134 3,600,313
2020 1,436,998 2,309,614 3,746,612
2021 - 2025 9,094,379 12,740,118 21,834,497
2026 - 2030 10,064,082 12,151,667 22,215,749
2031 - 2035 13,176,513 10,172,807 23,349,320
2036 - 2037 9,222,897 2,172,072 11,394,969
47,973,424$ 48,119,749$ 96,093,173$
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3)
On August 5, 2003, the Financing Authority issued $4,745,000 of Tax Allocation Revenue Bonds
(Project Area No. 3) 2003 Series. The proceeds of the bonds were disbursed to make a loan to the
Redevelopment Agency. The Agency will use the proceeds of the loan to fund various
redevelopment capital projects within or of benefit to the project area and to finance costs of
issuance of the bonds. The bonds bear interest at rates ranging from 3.000% to 5.125%. Principal
maturities for the serial bonds of $2,475,000 began April 1, 2004, and continue through
October 1, 2031. The term bonds in the amount of $2,270,000 are due in 2033.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 116 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3) (Continued)
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 3) are as follows:
Year Ending
June 30, Principal Interest Total
2016 125,000$ 168,473$ 293,473$
2017 130,000 163,348 293,348
2018 140,000 157,888 297,888
2019 145,000 151,868 296,868
2020 150,000 145,560 295,560
2021 - 2025 860,000 618,410 1,478,410
2026 - 2030 1,100,000 379,250 1,479,250
2031 - 2033 800,000 83,281 883,281
3,450,000$ 1,868,078$ 5,318,078$
Project Area No. 3 Tax Allocation Revenue Bonds 2006 Series A, Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital Appreciation
Bonds 2006 Series C
On July 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 3 $11,915,000
Tax Allocation Revenue Bonds 2006 Series A, $383,660 Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and $2,760,866 Subordinate Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series C. The Palm Desert Financing Authority loaned the bond
proceeds to the Palm Desert Redevelopment Agency. The proceeds of the Series A and B Bonds
will be used to make two loans to fund various redevelopment capital projects within or of benefit
to its Project Area No. 3, purchase a Reserve Fund surety policy and pay the costs of issuance of
the bonds. The Agency will loan the proceeds of the Series C Bonds to fund various
redevelopment capital projects within or of benefit to the Project Area, fund a debt service reserve
fund and pay the costs of issuance of the bonds.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 117 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 3 Tax Allocation Revenue Bonds 2006 Series A, Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital Appreciation
Bonds 2006 Series C (Continued)
The Series A bonds consist of $2,980,000 Serial Bonds with interest rates ranging from 4.00% to
4.75% payable semiannually on April 1 and October 1. Bond maturities begin April 1, 2007, and
continue annually through 2025. Term bonds in the amount of $4,465,000 carry an interest rate of
4.75% and mature April 1, 2036. Term bonds in the amount of $4,470,000 carry an interest rate of
5.00% and mature April 1, 2041. The Series B bonds consist of $383,660 Capital Appreciation
Bonds with a yield ranging from 5.31% to 5.54%. Bond maturities are April 1, 2020, 2021, 2027
and 2028. The Series C bonds consist of $2,760,866 Capital Appreciation Bonds with a yield
ranging from 4.80% to 6.10%. Bond maturities began April 1, 2009, and continue annually
through 2034. Each year the outstanding balance is increased for the accretion of interest
associated with the bonds. The accreted interest at June 30, 2015 is $1,917,603.
The future debt service requirements on the 2006 Series A Tax Allocation Revenue Bonds,
Series B Tax Allocation Revenue Capital Appreciation Bonds and Series C Subordinate Tax
Allocation Revenue Capital Appreciation Bonds (Project Area No. 3) are as follows:
Year Ending
June 30, Principal Interest Total
2016 309,731$ 585,687$ 895,418$
2017 329,787 601,495 931,282
2018 344,954 616,977 961,931
2019 369,116 632,690 1,001,806
2020 260,602 780,405 1,041,007
2021 - 2025 1,916,677 3,721,092 5,637,769
2026 - 2030 1,941,143 4,153,207 6,094,350
2031 - 2035 3,030,985 3,515,965 6,546,950
2036 - 2040 4,255,000 903,075 5,158,075
2041 985,000 49,250 1,034,250
13,742,995$ 15,559,843$ 29,302,838$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 118 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
1998 Series Tax Allocation Revenue Bonds (Project Area No. 4)
On March 1, 1998, the Palm Desert Financing Authority issued $11,020,000 of Tax Allocation
Revenue Bonds (Project Area No. 4) 1998 Series. The proceeds from the bonds were loaned to the
Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency
in Project Area No. 4. Interest rates on the bonds vary from 4.0% to 5.2% per annum payable semi-
annually on April 1 and October 1, with principal maturing annually on October 1. In July 2006,
$1,785,000 of the outstanding balance was advance refunded by the issuance of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A.
The future debt service requirements on the 1998 Series Tax Allocation Revenue Bonds (Project
Area No. 4) (after defeasance) are as follows:
Year Ending
June 30, Principal Interest Total
2016 375,000$ 376,375$ 751,375$
2017 400,000 356,678 756,678
2018 410,000 336,005 746,005
2019 430,000 314,340 744,340
2020 455,000 291,330 746,330
2021 - 2025 2,680,000 1,063,140 3,743,140
2026 - 2029 2,695,000 288,990 2,983,990
7,445,000$ 3,026,858$ 10,471,858$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 119 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2001 Series Tax Allocation Revenue Bonds (Project Area No. 4)
On November 28, 2001, the Palm Desert Financing Authority issued $15,695,000 of Tax
Allocation Revenue Bonds (Project Area No. 4) 2001 Series. The proceeds from the bonds were
loaned to the Palm Desert Redevelopment Agency to fund various redevelopment capital projects
of the Agency in Project Area No. 4. Interest rates on the bonds vary from 3.5% to 4.8% per annum
payable semi-annually on April 1 and October 1, with principal maturing annually on October 1.
The future debt service requirements on the 2001 Series Tax Allocation Revenue Bonds (Project
Area No. 4) are as follows:
Year Ending
June 30, Principal Interest Total
2016 390,000$ 567,322$ 957,322$
2017 400,000 549,825 949,825
2018 435,000 531,073 966,073
2019 450,000 510,940 960,940
2020 475,000 489,691 964,691
2021 - 2025 2,670,000 2,091,529 4,761,529
2026 - 2030 4,125,000 1,357,320 5,482,320
2031 - 2032 3,220,000 156,480 3,376,480
12,165,000$ 6,254,180$ 18,419,180$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 120 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation Refunding Revenue Bonds (Project Area No. 4) 2006 Series A and Tax Allocation
Revenue Capital Appreciation Bonds (Project Area No. 4) Series B
On July 25, 2006, the Palm Desert Financing Authority issued $14,610,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A and $4,633,089 of Tax Allocation
Revenue Capital Appreciation Bonds (Project Area No. 4) 2006 Series B. The Palm Desert
Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency. The
proceeds of the Series A and B Bonds will be used to make two loans to refinance a portion of the
outstanding obligations of the Redevelopment Agency under a loan agreement dated March 1, 1998,
fund various redevelopment capital projects within or of benefit to its Project Area No. 4, purchase
a Reserve Fund surety policy and pay the costs of issuance of the bonds. The Series A bonds
consist of $8,155,000 Serial Bonds with interest rates ranging from 4.40% to 5.00% payable
semiannually on October 1 and April 1. Bond maturities began October 1, 2008, and continue
annually through 2026. Term bonds in the amount of $2,200,000 carry an interest rate of 5.00%
and mature October 1, 2029. Term bonds in the amount of $4,255,000 carry an interest rate of
5.00% and mature October 1, 2034. The Series B bonds consist of $4,663,089 Capital Appreciation
Bonds with a yield ranging from 4.14% to 5.56%. Bond maturities begin October 1, 2009, and
continue annually through 2034. Each year the outstanding balance is increased for the accretion of
interest associated with the bonds. The accreted interest at June 30, 2015 is $2,608,954.
The future debt service requirements on the 2006 Series A Tax Allocation Refunding Bonds and
Series B Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) are as follows:
Year Ending
June 30, Principal Interest Total
2016 672,930$ 543,641$ 1,216,571$
2017 65,619 549,951 615,570
2018 106,490 589,080 695,570
2019 270,000 504,630 774,630
2020 338,168 528,923 867,091
2021 - 2025 2,778,324 2,947,368 5,725,692
2026 - 2030 4,495,323 3,545,510 8,040,833
2031 - 2035 6,763,415 8,823,460 15,586,875
15,490,269$ 18,032,563$ 33,522,832$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
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18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2002 Series Tax Allocation (Housing Set-Aside) Revenue Bonds
On September 5, 2002, the Palm Desert Financing Authority issued $12,100,000 of Tax Allocation
(Housing Set-Aside) Revenue Bonds 2002 Series. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to fund various low and moderate
housing capital projects of the Agency and to finance costs of issuance of the bonds. Interest rates
on the $6,555,000 serial bonds vary from 2.0% to 4.9% per annum payable semi-annually on
March 1 and October 1. Annual principal payments began October 1, 2003. The $5,545,000 term
bonds bear an interest rate of 5.0% per annum and mature October 1, 2031.
The future debt service requirements on the 2002 Series Tax Allocation (Housing Set-Aside)
Revenue Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2016 345,000$ 419,004$ 764,004$
2017 360,000 404,019 764,019
2018 375,000 388,029 763,029
2019 395,000 370,891 765,891
2020 415,000 352,407 767,407
2021 - 2025 2,390,000 1,436,795 3,826,795
2026 - 2030 3,065,000 762,125 3,827,125
2031 - 2032 1,455,000 73,625 1,528,625
8,800,000$ 4,206,895$ 13,006,895$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 122 -
18. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Tax Allocation (Housing Set-Aside) Refunding Revenue Bonds Series 2007
On February 7, 2007, the Palm Desert Financing Authority issued $86,155,000 Tax Allocation
(Housing Set-Aside) Refunding Revenue Bonds Series 2007. The Palm Desert Financing
Authority loaned the proceeds to the Palm Desert Redevelopment Agency. The proceeds of the
2007 Loan will be used to finance the development of low and moderate income housing by the
Redevelopment Agency, refinance a portion of the outstanding obligations of the Redevelopment
Agency, purchase a debt service surety bond for deposit in the Reserve Fund, and pay certain costs
associated with the issuance of the bonds. The Series 2007 bonds consist of $86,155,000 Serial
Bonds with interest ranging from 4.00% to 5.00% payable semiannually on October 1 and April 1.
Bond maturities began October 1, 2007, and continue annually through 2027.
The future debt service requirements on the Tax Allocation (Housing Set-Aside) Refunding
Revenue Bonds Series 2007 are as follows:
Year Ending
June 30, Principal Interest Total
2016 5,785,000$ 2,531,313$ 8,316,313$
2017 6,085,000 2,234,563 8,319,563
2018 6,395,000 1,922,563 8,317,563
2019 6,720,000 1,594,688 8,314,688
2020 7,065,000 1,250,063 8,315,063
2021 - 2025 13,895,000 3,788,675 17,683,675
2026 - 2028 9,995,000 649,294 10,644,294
55,940,000$ 13,971,159$ 69,911,159$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2015
- 123 -
19. RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS:
Restatement of the Government-Wide Financial Statements’ net position as of July 1, 2014 are as
follows:
Governmental
Activities
Net position at July 1, 2014, as originally reported $ 712,245,092
To report pension liability for the implementation
of GASB Statements No. 68 and 71 (39,728,900)
To transfer liability for compensated absences
to the internal service fund 2,691,840
Net position at July 1, 2014, as restated $ 675,208,032
20. SUBSEQUENT EVENTS:
Events occurring after June 30, 2015 have been evaluated for possible adjustments to the financial
statements or disclosure as of December 9, 2015, which is the date these financial statements were
available to be issued.
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REQUIRED SUPPLEMENTARY INFORMATION
Schedule 1
2015
Total Pension Liability:
Service cost 2,156,598$
Interest on total pension liability 7,991,591
Differences between expected and actual experience -
Changes in assumptions -
Changes in benefits -
Benefit payments, including refunds of employee contributions (4,849,320)
Net Change in Total Pension Liability 5,298,869
Total Pension Liability - Beginning of Year 107,900,900
Total Pension Liability - End of Year (a) 113,199,769$
Plan Fiduciary Net Position:
Contributions - employer 3,320,450$
Contributions - employee 995,504
Net investment income 11,290,314
Benefit payments (4,849,320)
Net Change in Plan Fiduciary Net Position 10,756,948
Plan Fiduciary Net Position - Beginning of Year 64,851,550
Plan Fiduciary Net Position - End of Year (b) 75,608,498$
et Pension Liability - Ending (a)-(b 37,591,271$
Plan fiduciary net position as a percentage of the
total pension liability 66.79%
Covered - employee payroll 11,110,759$
Net pension liability as percentage of
covered- employee payroll 338.33%
Notes to Schedule:
Benefit Changes:
Changes in Assumptions:
Measurement date is 12 months prior to the end of the fiscal year.
* - Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown.
CITY OF PALM DESERT
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Last Ten Fiscal Years*
There were not changes in benefits.
There were not changes in assumptions
- 126 -
Schedule 2
2015
Actuarially determined contribution 3,393,041$
Contributions in relation to the actuarially determined contributions (3,393,041)
Contribution deficiency (excess)-$
Covered - employee payroll 11,021,835$
Contributions as a percentage of covered - employee payroll 30.78%
Notes to Schedule:
Valuation Date 6/30/2012
Methods and Assumptions Used to Determine Contribution Rates:
Single and agent employers Entry age
Amortization method Level percentage of payroll, closed
Remaining amortization period
Asset valuation method 15 year smoothed market
Inflation 2.75%
Salary increases 3.30% to 14.20% depending on age, service and type of employment
Investment rate of return 7.50%, net of pension plan investment expense, including inflation
Retirement age 50 years 2.7%@55 and 52 years 2%@62
Mortality
* - Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown.
CITY OF PALM DESERT
SCHEDULE OF CONTRIBUTIONS - DEFINED BENEFIT PENSION PLAN
Last Ten Fiscal Years*
- 127 -
Morality assumptions are based on mortality rates resulting from the
most recent CalPERS Experience Study adopted by the CalPERS
Board, first used in the June 30, 2009 valuation. For purposes of the
post-retirement mortality rates, those revised rates include 5 years of
projected on-going mortality improvement using Scale AA published
by the Society of Actuaries until June 30, 2010. There is no margin
for future mortality improvement beyond the valuation date.
22 years as of the valuation date
Schedule 3
Actuarial
Accrued Actuarial Value Unfunded UAAL as a
Actuarial Liability of Assets AAL Funded Covered % of Covered
Valuation (AAL)(AVA)(UAAL)Ratio Payroll Payroll
Date (a)(b)(a) - (b)(b)/(a)(c)[(a)-(b)]/(c)
07/01/07 6,481,631$ -$ 6,481,631$ 0.00%13,800,864$ 46.97%
07/01/09 8,230,029 6,916,360 1,313,669 84.04%12,449,000 10.55%
06/30/11 9,854,151 8,986,749 867,402 91.20%11,416,000 7.60%
06/30/13 11,234,217 9,709,457 1,524,760 86.43%9,667,000 15.77%
For the year ended June 30, 2015
- 128 -
OTHER POST-EMPLOYMENT BENEFIT PLAN
CITY OF PALM DESERT
SCHEDULE OF FUNDING PROGRESS
Schedule 4
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 78,373,946$ 78,373,946$ 78,373,946$ -$
Resources (inflows):
Taxes 42,304,000 44,004,000 44,442,260 438,260
Licenses and permits 1,402,000 1,402,000 1,467,668 65,668
Intergovernmental revenues 855,000 985,000 1,802,929 817,929
Rental income 166,000 166,000 150,550 (15,450)
Charges of services 971,000 1,111,000 1,051,639 (59,361)
Fines and forfeitures 105,000 105,000 88,053 (16,947)
Investment earnings 180,000 180,000 416,656 236,656
Miscellaneous 452,000 452,000 636,056 184,056
Transfers from other funds 2,237,500 2,237,500 2,179,472 (58,028)
Total resources 48,672,500 50,642,500 52,235,283 1,592,783
Charges to appropriations (outflows):
Current:
General government 12,973,545 14,538,619 14,056,713 481,906
Public safety 20,964,540 20,804,520 20,631,915 172,605
Public works 7,334,732 8,592,040 7,343,333 1,248,707
Parks, recreation and culture 3,872,729 4,256,979 3,912,300 344,679
Capital outlay - 357,936 357,926 10
Transfers to other funds 3,105,000 4,625,000 4,496,373 128,627
Total charges to appropriations 48,250,546 53,175,094 50,798,560 2,376,534
Excess of resources over (under)
charges to appropriations 421,954 (2,532,594) 1,436,723 3,969,317
See accompanying note to required supplementary information.
CITY OF PALM DESERT
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For the year ended June 30, 2015
Budgeted Amounts
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Schedule 5
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 2,458,670$ 2,458,670$ 2,458,670$ -$
Resources (inflows):
Taxes 5,134,000 5,134,000 5,136,552 2,552
Special assessments collected 2,200,000 2,200,000 2,097,968 (102,032)
Intergovernmental revenues 834,500 834,500 982,099 147,599
Investment earnings 2,000 2,000 5,966 3,966
Miscellaneous 10,000 10,000 14,689 4,689
Transfers in 2,000,000 2,000,000 2,000,000 -
Total resources 10,180,500 10,180,500 10,237,274 56,774
Charges to appropriations (outflows):
Current:
Public safety 10,506,360 10,865,360 10,856,288 9,072
Capital outlay 24,000 24,000 32,718 (8,718)
Transfers to other funds 230,000 230,000 - 230,000
Total charges to appropriations 10,760,360 11,119,360 10,889,006 230,354
Excess of resources over (under)
charges to appropriations (579,860) (938,860) (651,732) 287,128
See accompanying note to required supplementary information.
CITY OF PALM DESERT
- 130 -
For the year ended June 30, 2015
Budgeted Amounts
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX SPECIAL REVENUE FUND
-131 -
CITY OF PALM DESERT
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2015
BUDGETS AND BUDGETARY ACCOUNTING:
The City used the following procedures in establishing the budgetary data reported in the financial
statements:
1.Before the beginning of the fiscal year, the City Manager submits to the City Council a
proposed budget for the year commencing the following July 1.
2.Public hearings are conducted to obtain taxpayer comments.
3.The budget is subsequently adopted through passage of a resolution.
4.Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level,
which is the legal level of control.
For other funds, expenditures cannot exceed the total amount budgeted for each fund, which is
the legal level of control. The City Manager is authorized to transfer appropriations (without
council approval) between an object of a General Fund Department. The City Council
approves all other changes. Annual appropriation amounts lapse at year-end.
5.Encumbrances and continuing appropriations are rebudgeted as of July 1, by Council action.
6.Annual budgets are adopted on a basis consistent with accounting principles generally accepted
in the United States of America for all governmental funds except for certain special revenue
funds and capital projects funds, which adopt project length budgets and debt service funds that
are not budgeted as effectively budgetary control is achieved through debt indenture provisions.
The following special revenue funds had legally adopted budgets during the current fiscal year:
Major Fund
Prop A Fire Tax
Other Governmental Funds
Traffic Safety
Gas Tax
Housing Mitigation Fees
Community Development Block Grant
Public Safety Police Grants
El Paseo Assessment District
Landscape and Lighting District No.1-17
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GENERAL FUND
The General Fund is used to account for all financial resources traditionally associated with
government, except those required to be accounted for in another fund. It is the primary operating fund
that includes the operating budgets for all the departments and the majority of the City’s tax revenues.
Schedule 6
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 78,373,946$ 78,373,946$ 78,373,946$ -$
Resources (inflows):
Taxes:
Property taxes 5,743,000 6,343,000 6,040,107 (302,893)
Property transfer tax 520,000 520,000 558,965 38,965
Property tax in lie 3,550,000 3,550,000 3,670,883 120,883
Timeshare mitigation fee 1,200,000 1,200,000 1,483,158 283,158
Sales tax 17,850,000 17,750,000 17,565,134 (184,866)
Business license tax 1,250,000 1,250,000 1,160,207 (89,793)
State ADA license 1,000 1,000 - (1,000)
Job valuation fees 20,000 20,000 26,639 6,639
Transient occupancy tax 9,200,000 10,400,000 10,799,680 399,680
Franchises 2,950,000 2,950,000 3,102,431 152,431
Penalties and interest on taxes 20,000 20,000 35,056 15,056
Total Taxes 42,304,000 44,004,000 44,442,260 438,260
Licenses and Permits:
Building permit 1,250,000 1,250,000 1,267,151 17,151
Grading permits 5,000 5,000 12,555 7,555
Encroachment permits 95,000 95,000 151,162 56,162
Miscellaneous permits 1,500 1,500 1,915 415
Business regulatory permit 50,000 50,000 34,210 (15,790)
Valet parking permits 500 500 675 175
Total Licenses and Permits 1,402,000 1,402,000 1,467,668 65,668
Intergovernmental Revenues:
Grants - - 30,758 30,758
State mandate cos - 130,000 133,711 3,711
Motor vehicle in-lieu fees 30,000 30,000 21,338 (8,662)
Monthly parking bal 15,000 15,000 12,415 (2,585)
Reimbursement RDA costs 200,000 200,000 746,122 546,122
Other reimbursements 610,000 610,000 858,585 248,585
Total Intergovernmental Revenues 855,000 985,000 1,802,929 817,929
(Continued)
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
For the year ended June 30, 2015
Budgeted Amount
- 134 -
Schedule 6
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Resources (inflows) (Continued):
Rental income 166,000$ 166,000$ 150,550$ (15,450)$
Charges for Services:
Subdivision fees 220,000 360,000 361,074 1,074
Zoning fees 150,000 150,000 116,208 (33,792)
Plan check fees 500,000 500,000 505,370 5,370
Sale of maps and publications 15,000 15,000 8,982 (6,018)
Microfilm fees 15,000 15,000 9,558 (5,442)
Other fees 71,000 71,000 50,447 (20,553)
Total Charges for Services 971,000 1,111,000 1,051,639 (59,361)
Fines and Forfeitures:
Vehicle code fines 15,000 15,000 17,244 2,244
Municipal court fines 15,000 15,000 11,974 (3,026)
VICR fees 75,000 75,000 58,835 (16,165)
Total Fines and Forfeitures 105,000 105,000 88,053 (16,947)
Investment Earnings:
Interest income 100,000 100,000 242,194 142,194
Interest on notes receivable 80,000 80,000 174,462 94,462
Total Investment Earnings 180,000 180,000 416,656 236,656
Miscellaneous Revenues:
Code compliance 3,000 3,000 8,853 5,853
Strong motion instrument fe 5,000 5,000 11,218 6,218
Special investigation fee 4,000 4,000 7,095 3,095
Certificate of compliance fee 1,000 1,000 2,000 1,000
uisance abatement tax 75,000 75,000 53,159 (21,841)
Abandoned vehicle abatement 40,000 40,000 54,576 14,576
Fire inspection service 200,000 200,000 232,246 32,246
Other revenue 124,000 124,000 266,909 142,909
Total Miscellaneous Revenues 452,000 452,000 636,056 184,056
Transfers from other funds 2,237,500 2,237,500 2,179,472 (58,028)
Amounts Available for Appropriatio 48,672,500 50,642,500 52,235,283 1,592,783
(Continued)
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2015
Budgeted Amount
- 135 -
Schedule 6
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Charges to appropriations (outflows):
General Government - Departmental:
City counci 243,300$ 259,907$ 245,811$ 14,096$
City cler 893,400 919,100 917,636 1,464
Legislative advocac 36,500 36,500 36,180 320
General elections 61,900 65,200 65,159 41
City attorne 240,000 240,000 239,328 672
Legal special services 300,000 162,000 161,534 466
City manage 1,001,420 1,115,557 1,075,654 39,903
Community service 420,588 470,788 470,612 176
Finance 2,019,670 2,019,670 2,012,250 7,420
Auditin 63,000 63,000 55,027 7,973
Human resources 517,192 537,192 486,859 50,333
General services 543,000 543,000 529,279 13,721
Information technolog 870,435 895,435 829,034 66,401
Unemployment insuranc - 526 263 263
Insurance 492,700 492,700 436,629 56,071
Community promotion 659,500 769,000 749,631 19,369
Community developmen 1,971,110 2,053,884 2,039,133 14,751
Economic development cente 995,600 1,086,750 1,069,940 16,810
Marketing 984,230 1,089,355 993,163 96,192
Total General Government - Departmental 12,313,545 12,819,564 12,413,122 406,442
General Government - Nondepartmental:
Retiree funding - 1,000,000 1,000,000 -
Contributions to other agencie 660,000 719,055 643,591 75,464
Total General Government - Non departmental 660,000 1,719,055 1,643,591 75,464
Total General Government 12,973,545 14,538,619 14,056,713 481,906
Public Safety:
Police services 18,654,959 18,344,959 18,313,566 31,393
Animal regulatio 243,006 243,006 213,569 29,437
Traffic safety 244,000 288,380 256,982 31,398
Building and safet 1,822,575 1,928,175 1,847,798 80,377
Total Public Safet 20,964,540 20,804,520 20,631,915 172,605
(Continued)
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2015
Budgeted Amount
- 136 -
Schedule 6
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Charges to appropriations (outflows) (Continued):
Public Works:
Administratio 2,725,000$ 2,754,250$ 2,645,443$ 108,807$
Street maintenance 2,644,477 2,672,098 2,631,590 40,508
Street resurfacing 825,000 1,875,791 998,463 877,328
Parking lo - 38,945 38,945 -
Corporate yar 65,500 65,500 52,949 12,551
Building maintenance 498,000 608,701 502,979 105,722
Portola community cente 65,755 65,755 61,985 3,770
Auto equipmen 435,000 435,000 362,012 72,988
Storm water permi 76,000 76,000 48,967 27,033
Total Public Works 7,334,732 8,592,040 7,343,333 1,248,707
Parks, Recreation and Culture:
Park maintenance 747,150 784,336 704,007 80,329
Civic center par 1,017,850 1,060,590 1,038,440 22,150
Landscape service 1,746,432 2,050,756 1,866,513 184,243
Visitors cente 361,297 361,297 303,340 57,957
Total Parks, Recreation and Culture 3,872,729 4,256,979 3,912,300 344,679
Capital Outlay - Departmenta - 357,936 357,926 10
Transfers to other funds 3,105,000 4,625,000 4,496,373 128,627
Amounts Charged to Appropriatio 48,250,546 53,175,094 50,798,560 2,376,534
Excess of resources over (under)
charges to appropriations 421,954 (2,532,594) 1,436,723 3,969,317
Fund balance, June 30 78,795,900 75,841,352 79,810,669 3,969,317
CITY OF PALM DESERT
- 137 -
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2015
Budgeted Amount
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-139 -
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
Schedule 7
Total
Specia Deb Capital Othe
Revenu Servic Projects Governmenta
ASSETS: Funds Fun Funds Funds
Pooled cash and investment 18,288,803$ 99,021$ 15,057,758$ 33,445,582$
Receivables:
Accounts 425,089 - - 425,089
Assessments - 1,347,184 - 1,347,184
Interes 184,262 - 29,760 214,022
Loans 4,694,829 - - 4,694,829
Prepaid costs 348 - - 348
Inventorie 5,101 - - 5,101
Due from other government 380,106 1,203 78,348 459,657
Due from other fund - - 500,000 500,000
Advances to Successor Agenc 654,000 - 12,765,000 13,419,000
Restricted assets:
Cash and investments with fiscal agen - - 21,512,850 21,512,850
TOTAL ASSETS 24,632,538$ 1,447,408$ 49,943,716$ 76,023,662$
LIABILITIES
Accounts payabl 493,769$ 113$ 214,248$ 708,130$
Accrued liabilitie 6,232 - 1,959 8,191
Due to other funds 2,630,800 - 2,553,000 5,183,800
Unearned revenue 57,553 - 71,596 129,149
Deposits payabl - - 77,583 77,583
TOTAL LIABILITIE 3,188,354 113 2,918,386 6,106,853
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenu 197,925 1,347,184 - 1,545,109
FUND BALANCES
Nonspendable:
Prepaid costs 348 - - 348
Restricted for:
Capital projects - - 21,528,899 21,528,899
Debt servic - 100,111 - 100,111
Low income housin 2,256,769 - - 2,256,769
Public facilities 3,411,623 - - 3,411,623
Public safet 985,882 - - 985,882
Special program 6,274,436 - 1,323,900 7,598,336
Street related purpose 3,239,802 - 3,239,802
Committed to:
Aquatic cente 2,134,121 - - 2,134,121
Energy loan progra 2,943,278 - - 2,943,278
Assigned to:
Capital projects - - 9,910,743 9,910,743
Property acquisitio - - 420,387 420,387
Public facilities - - 10,947,754 10,947,754
Special program - - 667,255 667,255
Street related purpose - - 2,226,392 2,226,392
TOTAL FUND BALANCE 21,246,259 100,111 47,025,330 68,371,700
TOTAL LIABILITIES, DEFERRE
INFLOWS OF RESOURCES
AND FUND BALANCE 24,632,538$ 1,447,408$ 49,943,716$ 76,023,662$
RESOURCES AND FUND BALANCES
- 140 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2015
LIABILITIES, DEFERRED INFLOWS OF
Schedule 8
Total
Special Debt Capital Other
Revenue Service Projects Governmental
Funds Fund Funds Funds
REVENUES:
Taxes 413,111$ -$ -$ 413,111$
Special assessments collected 837,689 123,109 - 960,798
Licenses and permits - - 289,582 289,582
Intergovernmental revenues 2,287,720 - 613,805 2,901,525
Charges for services 767,825 - - 767,825
Investment earnings 469,864 237 124,114 594,215
Fines and forfeitures 136,559 - - 136,559
Contribution from property owners - - 9,168 9,168
Miscellaneous 133,529 - 1,464,676 1,598,205
TOTAL REVENUES 5,046,297 123,346 2,501,345 7,670,988
EXPENDITURES:
Current:
General government 893,655 15,563 501,815 1,411,033
Housing and redevelopment 1,093,014 - - 1,093,014
Public safety 331,011 - - 331,011
Parks, recreation and culture 1,455,898 - 868,519 2,324,417
Public works 2,377,231 - 926,435 3,303,666
Contribution to property owners - - 49 49
Capital outlay 834,735 - 873,815 1,708,550
Debt service:
Principal retirement 4,907,000 37,000 - 4,944,000
Interest and fiscal charges 163,595 76,624 - 240,219
TOTAL EXPENDITURES 12,056,139 129,187 3,170,633 15,355,959
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (7,009,842) (5,841) (669,288) (7,684,971)
OTHER FINANCING SOURCES (USES):
Transfers in 1,323,387 - 630,000 1,953,387
Transfers out (965,972) - (776,000) (1,741,972)
TOTAL OTHER FINANCING
SOURCES (USES) 357,415 - (146,000) 211,415
NET CHANGE IN FUND BALANCES (6,652,427) (5,841) (815,288) (7,473,556)
FUND BALANCES - BEGINNING OF YEAR 27,898,686 105,952 47,840,618 75,845,256
FUND BALANCES - END OF YEAR 21,246,259$ 100,111$ 47,025,330$ 68,371,700$
- 141 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2015
-142 -
THIS PAGE INTENTIONALLY LEFT BLANK
-143 -
OTHER GOVERNMENTAL FUNDS -SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than
expendable trust that are legally restricted to expenditures for specific purposes.
Traffic Safety Fund -Traffic and court fines are collected in these funds. A transfer from this Fund to
the General Fund is made at the end of the fiscal year by council action to be applied toward the
eligible expenditures permitted by law.
Gas Tax Fund -Portions of the tax rate per gallon levied by the State of California on all gasoline
purchases are allocated to cities throughout the State. These funds are restricted to expenditure for
transit and street-related purposes.
Housing Mitigation Fee Fund -This fund is used to account for fees collected from construction of
commercial and office buildings for low and moderate income mitigation purposes to be used strictly
for projects and programs that benefit the low and moderate income households.
Community Development Block Grant Fund -This fund is used to account for the receipts and
expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development.
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.
Park and Recreation Facilities Fund -This fund is used to account for fees collected for residential and
subdivision developments collected either at the time grading permits are paid or prior to the approval
of the final map. Its use is restricted for expenditures related to park development, maintenance and
equipment.
Traffic Signals Fund -This fund is used to account for fees collected for residential, commercial and
industrial developments either at the time grading permits are paid or prior to the approval of the final
map. Its use is restricted for expenditures related to the acquisition and maintenance of traffic signals.
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.
-144 -
THIS PAGE INTENTIONALLY LEFT BLANK
-145 -
OTHER GOVERNMENTAL FUNDS -SPECIAL REVENUE
(CONTINUED)
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 Grants Program for the purpose of
purchasing equipment related to public safety.
El Paseo Assessment District Fund -This fund is used to collect assessments on all business
establishments located within the boundaries set for the El Paseo parking and business improvement
area based on a fee schedule established for the various types of businesses. Proceeds from all charges
are used for the promotion of business activities in the area.
Air Quality Management Fund -This fund accounts for receipts from South Coast Air Quality
Management District, one hundred percent of which is disbursed to the Coachella Valley Association
of Governments.
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.
Child Care Program Fund -This fund is used to collect funds from developers for the purpose of
providing child care programs.
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.
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.
Aquatic Center Fund -This fund is used to account for revenues and expenditures of the City’s aquatic
facility.
RDA Low Income Housing Fund -This fund is used to account for the management and operation of
the City’s housing assets.
Housin
Traffic Mitigatio
Safet Gas Tax Fee
ASSETS:
Pooled cash and investments -$ 922,364$ 2,219,558$
Receivables:
Accounts - - 37,211
Interest - - -
Loans - - -
Prepaid costs - - -
Inventories - - -
Due from other government 11,069 134,935 -
Advances to Successor Agenc - - -
TOTAL ASSETS 11,069$ 1,057,299$ 2,256,769$
LIABILITIES:
Accounts payable -$ -$ -$
Accrued liabilities - - -
Due to other funds - - -
Unearned revenues - - -
TOTAL LIABILITIES - - -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - -
FUND BALANCES:
onspendable:
Prepaid costs - - -
Restricted for:
Low income housin - - 2,256,769
Public facilities - - -
Public safety - - -
Special programs - - -
Street related purposes 11,069 1,057,299 -
Committed to:
Aquatic center - - -
Energy loan progra - - -
TOTAL FUND BALANCES 11,069 1,057,299 2,256,769
TOTAL LIABILITIES, DEFERRED INFLOW
OF RESOURCES AND FUND BALANCES 11,069$ 1,057,299$ 2,256,769$
June 30, 2015
RESOURCES AND FUND BALANCES
- 146 -
LIABILITIES, DEFERRED INFLOWS OF
CITY OF PALM DESERT
OTHER SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
Schedule 9
Communit ew Park and Public El Paseo
Developmen Constructio Planned Recreation Traffic Safety Police Assessmen
Block Gran Tax Drainage Facilities Signals Recyclin Grants Distric
18,984$ 768,423$ 1,924,124$ 1,107,940$ 301,989$ 3,701,680$ 63,634$ 53,839$
- - - - - - - -
- - - - - - - -
13,663 - - - - - - -
- - - - - - - 33
- - - - - - - -
128,887 - - - - 9,903 56,862 -
- 654,000 - - - - - -
161,534$ 1,422,423$ 1,924,124$ 1,107,940$ 301,989$ 3,711,583$ 120,496$ 53,872$
128,887$ 4,957$ -$ 4,048$ 54,679$ 33,942$ 75,413$ 5,363$
- - - - - 1,085 - -
- 130,800 - - - - - -
- - - - - 4,963 38,057 -
128,887 135,757 - 4,048 54,679 39,990 113,470 5,363
13,663 - - - - - - -
- - - - - - - 33
- - - - - - - -
- 1,286,666 - 1,103,892 - - - -
- - - - - - 7,026 -
18,984 - - - - 3,671,593 - 48,476
- - 1,924,124 - 247,310 - - -
- - - - - - - -
- - - - - - - -
18,984 1,286,666 1,924,124 1,103,892 247,310 3,671,593 7,026 48,509
161,534$ 1,422,423$ 1,924,124$ 1,107,940$ 301,989$ 3,711,583$ 120,496$ 53,872$
ont nue
- 147 -
Landscape
Ai and Lightin Fire
Qualit Districts Child Care Facilities
Managemen os. 1 - 17 Progra Restoratio
ASSETS:
Pooled cash and investments 69,726$ 2,494,408$ 1,021,065$ 978,856$
Receivables:
Accounts - - - -
Interest - - - -
Loans - - - -
Prepaid costs - - - -
Inventories - - - -
Due from other government 16,413 7,751 - -
Advances to Successor Agenc - - - -
TOTAL ASSETS 86,139$ 2,502,159$ 1,021,065$ 978,856$
LIABILITIES:
Accounts payable 9,848$ 43,067$ -$ -$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenues - - - -
TOTAL LIABILITIES 9,848 43,067 - -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - - -
FUND BALANCES:
onspendable:
Prepaid costs - - - -
Restricted for:
Low income housin - - - -
Public facilities - - 1,021,065 -
Public safety - - - 978,856
Special programs 76,291 2,459,092 - -
Street related purposes - - - -
Committed to:
Aquatic center - - - -
Energy loan progra - - - -
TOTAL FUND BALANCES 76,291 2,459,092 1,021,065 978,856
TOTAL LIABILITIES, DEFERRED INFLOW
OF RESOURCES AND FUND BALANCES 86,139$ 2,502,159$ 1,021,065$ 978,856$
June 30, 2015
- 148 -
RESOURCES AND FUND BALANCES
LIABILITIES, DEFERRED INFLOWS OF
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
Schedule 9
Total
Energ RDA Other
Independence Aquatic Low Incom Special Revenue
Loa Center Housin Funds
743,590$ 1,893,476$ 5,147$ 18,288,803$
4,447 383,431 - 425,089
184,262 - - 184,262
4,681,166 - - 4,694,829
- 315 - 348
- 5,101 - 5,101
14,286 - - 380,106
- - - 654,000
5,627,751$ 2,282,323$ 5,147$ 24,632,538$
211$ 133,354$ -$ 493,769$
- - 5,147 6,232
2,500,000 - - 2,630,800
- 14,533 - 57,553
2,500,211 147,887 5,147 3,188,354
184,262 - - 197,925
- 315 - 348
- - - 2,256,769
- - - 3,411,623
- - - 985,882
- - - 6,274,436
- - - 3,239,802
- 2,134,121 - 2,134,121
2,943,278 - - 2,943,278
2,943,278 2,134,436 - 21,246,259
5,627,751$ 2,282,323$ 5,147$ 24,632,538$
- 149 -
Housing
Traffic Mitigation
Safety Gas Tax Fee
REVENUES:
Taxes -$ -$ 50,210$
Special assessments collected - - -
Intergovernmental revenues - 1,446,068 -
Charges for services - - -
Investment earnings 155 2,580 22,947
Fines and forfeitures 136,559 - -
Miscellaneous - - 120,000
TOTAL REVENUES 136,714 1,448,648 193,157
EXPENDITURES:
Current:
General government - - -
Housing and redevelopment - - 360,000
Public safety - - -
Parks, recreation and culture - - -
Public works - 1,225,868 -
Capital outlay - - -
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
TOTAL EXPENDITURES - 1,225,868 360,000
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 136,714 222,780 (166,843)
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out (135,972) (830,000) -
TOTAL OTHER FINANCING
SOURCES (USES) (135,972) (830,000) -
NET CHANGE IN FUND BALANCES 742 (607,220) (166,843)
FUND BALANCES -
BEGINNING OF YEAR 10,327 1,664,519 2,423,612
FUND BALANCES - END OF YEAR 11,069$ 1,057,299$ 2,256,769$
OTHER SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF PALM DESERT
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2015
- 150 -
Schedule 10
Community New Park and Public El Paseo
Development Construction Planned Recreation Traffic Safety Police Assessment
Block Grant Tax Drainage Facilities Signals Recycling Grants District
-$ 206,206$ 7,020$ 67,481$ 16,688$ -$ -$ -$
- - - - - - - 239,581
269,092 - - - - 42,858 331,010 -
- - - - - - - -
- 2,517 6,352 3,895 1,034 13,059 128 -
- - - - - - - -
160 - - 13,198 - 171 - -
269,252 208,723 13,372 84,574 17,722 56,088 331,138 239,581
269,093 - - - - 340,674 - 225,361
- - - - - - - -
- - - - - - 331,011 -
- - - 88,173 - 10,642 - -
- 92,962 - - 53,460 306,371 - -
- - - 97,639 24,380 14,808 - -
- - - - - - - -
- - - - - - - -
269,093 92,962 - 185,812 77,840 672,495 331,011 225,361
159 115,761 13,372 (101,238) (60,118) (616,407) 127 14,220
- - - - - - - -
- - - - - - - -
- - - - - - - -
159 115,761 13,372 (101,238) (60,118) (616,407) 127 14,220
18,825 1,170,905 1,910,752 1,205,130 307,428 4,288,000 6,899 34,289
18,984$ 1,286,666$ 1,924,124$ 1,103,892$ 247,310$ 3,671,593$ 7,026$ 48,509$
(Continued)
- 151 -
Landscape
Air and Lighting Fire
Quality Districts Child Care Facilities
Management Nos. 1 - 17 Program Restoration
REVENUES:
Taxes -$ -$ 25,483$ 40,023$
Special assessments collected - 598,108 - -
Intergovernmental revenues 198,692 - - -
Charges for services - - - -
Investment earnings 337 4,336 4,037 3,170
Fines and forfeitures - - - -
Miscellaneous - - - -
TOTAL REVENUES 199,029 602,444 29,520 43,193
EXPENDITURES:
Current:
General government 38,765 - - -
Housing and redevelopment - - - -
Public safety - - - -
Parks, recreation and culture 84,400 - - -
Public works 152,337 546,233 - -
Capital outlay 192,966 - 500,000 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES 468,468 546,233 500,000 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (269,439) 56,211 (470,480) 43,193
OTHER FINANCING SOURCES (USES):
Transfers in - 86,732 - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES (USES) - 86,732 - -
NET CHANGE IN FUND BALANCES (269,439) 142,943 (470,480) 43,193
FUND BALANCES -
BEGINNING OF YEAR 345,730 2,316,149 1,491,545 935,663
FUND BALANCES - END OF YEAR 76,291$ 2,459,092$ 1,021,065$ 978,856$
- 152 -
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
For the year ended June 30, 2015
CITY OF PALM DESERT
Schedule 10
Total
Energy RDA Other
Independence Aquatic Low Income Special Revenue
Loan Center Housing Funds
-$ -$ -$ 413,111$
- - - 837,689
- - - 2,287,720
- 767,825 767,825
400,414 4,903 - 469,864
- - - 136,559
- - - 133,529
400,414 772,728 - 5,046,297
19,762 - - 893,655
- - 733,014 1,093,014
- - - 331,011
- 1,272,683 - 1,455,898
- - - 2,377,231
- 4,942 - 834,735
4,907,000 - - 4,907,000
163,595 - - 163,595
5,090,357 1,277,625 733,014 12,056,139
(4,689,943) (504,897) (733,014) (7,009,842)
- 503,641 733,014 1,323,387
- - - (965,972)
- 503,641 733,014 357,415
(4,689,943) (1,256) - (6,652,427)
7,633,221 2,135,692 - 27,898,686
2,943,278$ 2,134,436$ -$ 21,246,259$
- 153 -
Schedule 11-A
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 10,327$ 10,327$ 10,327$ -$
Resources (inflows):
Investment earnings 1,000 1,000 155 (845)
Fines and forfeitures 174,000 174,000 136,559 (37,441)
Total resources 175,000 175,000 136,714 (38,286)
Charges to appropriations (outflows):
Transfers out 175,000 175,000 135,972 39,028
Total charges to appropriations 175,000 175,000 135,972 39,028
Excess of resources over (under)
charges to appropriations - - 742 742
Fund balance, June 30 10,327$ 10,327$ 11,069$ 742$
CITY OF PALM DESERT
- 154 -
For the year ended June 30, 2015
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC SAFETY
Schedule 11-B
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 1,664,519$ 1,664,519$ 1,664,519$ -$
Resources (inflows):
Intergovernmental revenues 1,387,500 1,387,500 1,446,068 58,568
Investment earnings 5,000 5,000 2,580 (2,420)
Total resources 1,392,500 1,392,500 1,448,648 56,148
Charges to appropriations (outflows):
Current:
Public works 565,000 1,225,869 1,225,868 1
Transfers out 830,000 830,000 830,000 -
Total charges to appropriations 1,395,000 2,055,869 2,055,868 1
Excess of resources over (under)
charges to appropriations (2,500) (663,369) (607,220) 56,149
Fund balance, June 30 1,662,019$ 1,001,150$ 1,057,299$ 56,149$
CITY OF PALM DESERT
- 155 -
For the year ended June 30, 2015
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GAS TAX
Schedule 11-C
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 2,423,612$ 2,423,612$ 2,423,612$ -$
Resources (inflows):
Taxes 362,000 362,000 50,210 (311,790)
Investment earnings 9,500 9,500 22,947 13,447
Miscellaneous 120,000 120,000 120,000 -
Total resources 491,500 491,500 193,157 (298,343)
Charges to appropriations (outflows):
Current:
Housing and redevelopment 450,000 450,000 360,000 90,000
Total charges to appropriations 450,000 450,000 360,000 90,000
Excess of resources over (under)
charges to appropriations 41,500 41,500 (166,843) (208,343)
Fund balance, June 30 2,465,112$ 2,465,112$ 2,256,769$ (208,343)$
CITY OF PALM DESERT
- 156 -
For the year ended June 30, 2015
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HOUSING MITIGATION FEES
Schedule 11-D
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 18,825$ 18,825$ 18,825$ -$
Resources (inflows):
Intergovernmental revenues 281,000 281,000 269,092 (11,908)
Miscellaneous - - 160 160
Total resources 281,000 281,000 269,252 (11,748)
Charges to appropriations (outflows):
Current:
General government 281,000 415,823 269,093 146,730
Total charges to appropriations 281,000 415,823 269,093 146,730
Excess of resources over (under)
charges to appropriations - (134,823) 159 134,982
Fund balance, June 30 18,825$ (115,998)$ 18,984$ 134,982$
CITY OF PALM DESERT
- 157 -
For the year ended June 30, 2015
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT
Schedule 11-E
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 6,899$ 6,899$ 6,899$ -$
Resources (inflows):
Intergovernmental revenues 100,000 300,000 331,010 31,010
Investment earnings - - 128 128
Total resources 100,000 300,000 331,138 31,138
Charges to appropriations (outflows):
Current:
Public safety 100,000 331,161 331,011 150
Total charges to appropriations 100,000 331,161 331,011 150
Excess of resources over (under)
charges to appropriations - (31,161) 127 31,288
Fund balance, June 30 6,899$ (24,262)$ 7,026$ 31,288$
Budgeted Amounts
- 158 -
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC SAFETY POLICE GRANTS
For the year ended June 30, 2015
Schedule 11-F
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 34,289$ 34,289$ 34,289$ -$
Resources (inflows):
Special assessments collected 250,000 250,000 239,581 (10,419)
Total resources 250,000 250,000 239,581 (10,419)
Charges to appropriations (outflows):
Current:
General government 250,000 255,000 225,361 29,639
Total charges to appropriations 250,000 255,000 225,361 29,639
Excess of resources over (under)
charges to appropriations - (5,000) 14,220 19,220
Fund balance, June 30 34,289$ 29,289$ 48,509$ 19,220$
CITY OF PALM DESERT
- 159 -
For the year ended June 30, 2015
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
EL PASEO ASSESSMENT DISTRICT
Schedule 11-G
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 2,316,149$ 2,316,149$ 2,316,149$ -$
Resources (inflows):
Special assessments collected 607,375 607,375 598,108 (9,267)
Investment earnings - - 4,336 4,336
Transfers in 75,000 75,000 86,732 11,732
Total resources 682,375 682,375 689,176 6,801
Charges to appropriations (outflows):
Current:
Public works 698,654 772,515 546,233 226,282
Total charges to appropriations 698,654 772,515 546,233 226,282
Excess of resources over (under)
charges to appropriations (16,279) (90,140) 142,943 233,083
Fund balance, June 30 2,299,870$ 2,226,009$ 2,459,092$ 233,083$
CITY OF PALM DESERT
- 160 -
For the year ended June 30, 2015
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE AND LIGHTING DISTRICTS NOS. 1 - 17
-161 -
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.
Schedule 12
Total
City Other
Highlands Debt Service
Undergrounding Fund
ASSETS:
Pooled cash and investments 99,021$ 99,021$
Receivables:
Assessments 1,347,184 1,347,184
Due from other governments 1,203 1,203
TOTAL ASSETS 1,447,408$ 1,447,408$
LIABILITIES:
Accounts payable 113$ 113$
TOTAL LIABILITIES 113 113
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue 1,347,184 1,347,184
TOTAL DEFERRED INFLOWS
OF RESOURCES 1,347,184 1,347,184
FUND BALANCE:
Restricted for:
Debt service 100,111 100,111
TOTAL FUND BALANCE 100,111 100,111
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES AND
FUND BALANCE 1,447,408$ 1,447,408$
RESOURCESAND FUND BALANCES
- 162 -
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
June 30, 2015
LIABILITIES, DEFERRED INFLOWS OF
Schedule 13
Total
City Other
Highlands Debt Service
Undergrounding Fund
REVENUES:
Special assessments collected 123,109$ 123,109$
Investment earnings 237 237
TOTAL REVENUES 123,346 123,346
EXPENDITURES:
Current:
General government 15,563 15,563
Debt service:
Principal retirement 37,000 37,000
Interest and fiscal charges 76,624 76,624
TOTAL EXPENDITURES 129,187 129,187
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,841) (5,841)
FUND BALANCE - BEGINNING OF YEAR 105,952 105,952
FUND BALANCE - END OF YEAR 100,111$ 100,111$
- 163 -
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
OTHER DEBT SERVICE FUND
For the year ended June 30, 2015
-164 -
THIS PAGE INTENTIONALLY LEFT BLANK
-165 -
OTHER GOVERNMENTAL FUNDS -CAPITAL PROJECTS
Capital Projects Funds are used to account for the acquisition and construction of major capital
facilities, except for those financed by certain Special Revenue and Enterprise funds.
Arts in Public Places Fund -This fund is used to account for fees collected from residential,
commercial and public facilities development except for street and drainage projects. Its use is
restricted for acquisition, installation, improvement and maintenance of artwork to be displayed in the
City, the administration of the program and community public art education programs.
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.
Parks and Recreation 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.
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.
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
Assessment 29
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.
Capital Properties -This fund is used to account for the cost of city owned properties that will either be
sold or for the construction of public facilities.
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.
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.
Arts in Drainage
Public Places Facilities
ASSETS:
Pooled cash and investments 1,408,724$ 2,125,264$
Receivables:
Interest - -
Due from other governments - -
Due from other funds - -
Advances to Successor Agency - -
Restricted assets:
Cash and investments with fiscal agent - -
TOTAL ASSETS 1,408,724$ 2,125,264$
LIABILITIES:
Accounts payable 5,282$ -$
Accrued liabilities 1,959 -
Due to other funds - -
Unearned revenues - -
Deposits payable 77,583 -
TOTAL LIABILITIES 84,824 -
FUND BALANCES:
Restricted for:
Capital projects - -
Special programs 1,323,900 -
Assigned to:
Capital projects - -
Property acquisition - -
Public facilities - -
Special programs - -
Street related purposes - 2,125,264
TOTAL FUND BALANCES 1,323,900 2,125,264
TOTAL LIABILITIES AND FUND BALANCES 1,408,724$ 2,125,264$
COMBINING BALANCE SHEET
June 30, 2015
LIABILITIES AND FUND BALANCES
CITY OF PALM DESERT
OTHER CAPITAL PROJECTS FUNDS
- 166 -
Schedule 14
Parks and Assessment
Recreation District No. 94-3 Silver Spur
Facilities Signalization Buildings Library Merano Ranch
165,780$ 102,557$ 3,308,293$ 667,255$ -$ 589$
- - - - 6 -
- - - - - -
- - - - - -
4,765,000 - - - -
- - - - 178,936 -
4,930,780$ 102,557$ 3,308,293$ 667,255$ 178,942$ 589$
9,623$ 1,429$ -$ -$ -$ -$
- - - - - -
953,000 - - - - -
- - - - - -
- - - - - -
962,623 1,429 - - - -
- - - - 178,942 589
- - - - - -
- - - - - -
- - - - - -
3,968,157 - 3,308,293 - - -
- - - 667,255 - -
- 101,128 - - - -
3,968,157 101,128 3,308,293 667,255 178,942 589
4,930,780$ 102,557$ 3,308,293$ 667,255$ 178,942$ 589$
(Continued)
- 167 -
Highlands CFD
Undergrounding University
ASSETS:
Pooled cash and investments 20$ -$
Receivables:
Interest - 14,795
Due from other governments - -
Due from other funds - -
Advances to Successor Agency - -
Restricted assets:
Cash and investments with fiscal agent - 21,333,914
TOTAL ASSETS 20$ 21,348,709$
LIABILITIES:
Accounts payable -$ -$
Accrued liabilities - -
Due to other funds - -
Unearned revenues - -
Deposits payable - -
TOTAL LIABILITIES - -
FUND BALANCES:
Restricted for:
Capital projects 20 21,348,709
Special programs - -
Assigned to:
Capital projects - -
Property acquisition - -
Public facilities - -
Special programs - -
Street related purposes - -
TOTAL FUND BALANCES 20 21,348,709
TOTAL LIABILITIES AND FUND BALANCES 20$ 21,348,709$
OTHER CAPITAL PROJECTS FUNDS
(CONTINUED)
June 30, 2015
LIABILITIES AND FUND BALANCES
CITY OF PALM DESERT
- 168 -
COMBINING BALANCE SHEET
Schedule 14
Total
Capital Other
Assessment Capital Capital Projects Economic Capital Projects
29 Golf Properties Reserve Development Funds
639$ 2,391,234$ 14,450$ 4,098,111$ 774,842$ 15,057,758$
- 14,959 - - - 29,760
- - - 78,348 - 78,348
- 500,000 - - - 500,000
- - - 8,000,000 - 12,765,000
- - - - - 21,512,850
639$ 2,906,193$ 14,450$ 12,176,459$ 774,842$ 49,943,716$
-$ 24,181$ -$ 173,733$ -$ 214,248$
- - - - - 1,959
- - - 1,600,000 - 2,553,000
- - - 71,596 - 71,596
- - - - - 77,583
- 24,181 - 1,845,329 - 2,918,386
639 - - - - 21,528,899
- - - - - 1,323,900
- - - 9,910,743 - 9,910,743
- - - 420,387 - 420,387
- 2,882,012 14,450 - 774,842 10,947,754
- - - - - 667,255
- - - - - 2,226,392
639 2,882,012 14,450 10,331,130 774,842 47,025,330
639$ 2,906,193$ 14,450$ 12,176,459$ 774,842$ 49,943,716$
- 169 -
Arts in Drainage
Public Places Facilities
REVENUES:
Licenses and permits 289,582$ -$
Intergovernmental revenues - -
Investment earnings 4,887 7,025
Contribution from property owners - -
Miscellaneous 20 -
TOTAL REVENUES 294,489 7,025
EXPENDITURES:
Current:
General government - -
Parks, recreation and culture 456,853 -
Public works - 231
Contribution to property owners - -
Capital outlay 28,969 -
TOTAL EXPENDITURES 485,822 231
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (191,333) 6,794
OTHER FINANCING SOURCES (USES):
Transfers in 80,000 -
Transfers out - -
TOTAL OTHER FINANCING
SOURCES (USES) 80,000 -
NET CHANGE IN FUND BALANCES (111,333) 6,794
FUND BALANCES - BEGINNING OF YEAR 1,435,233 2,118,470
FUND BALANCES - END OF YEAR 1,323,900$ 2,125,264$
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF PALM DESERT
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2015
- 170 -
OTHER CAPITAL PROJECTS FUNDS
Schedule 15
Parks and Assessment
Recreation District No. 94-3 Silver Spur
Facilities Signalization Buildings Library Merano Ranch
-$ -$ -$ -$ -$ -$
- - - - - -
692 405 9,125 - 20 1
- - - - - -
- - - - - -
692 405 9,125 - 20 1
- - - - - -
90,784 - - - - -
- - 2,828 - - -
- - - - - -
- 28,579 - - - -
90,784 28,579 2,828 - - -
(90,092) (28,174) 6,297 - 20 1
- - 550,000 - - -
- - - - - -
- - 550,000 - - -
(90,092) (28,174) 556,297 - 20 1
4,058,249 129,302 2,751,996 667,255 178,922 588
3,968,157$ 101,128$ 3,308,293$ 667,255$ 178,942$ 589$
(Continued)
- 171 -
Highlands CFD
Undergrounding University
REVENUES:
Licenses and permits -$ -$
Intergovernmental revenues - -
Investment earnings - 55,956
Contribution from property owners - 9,168
Miscellaneous - -
TOTAL REVENUES - 65,124
EXPENDITURES:
Current:
General government - -
Parks, recreation and culture - -
Public works - 7,342
Contribution to property owners - -
Capital outlay - -
TOTAL EXPENDITURES - 7,342
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 57,782
OTHER FINANCING SOURCES (USES):
Transfers in - -
Transfers out - -
TOTAL OTHER FINANCING
SOURCES (USES) - -
NET CHANGE IN FUND BALANCES - 57,782
FUND BALANCES - BEGINNING OF YEAR 20 21,290,927
FUND BALANCES - END OF YEAR 20$ 21,348,709$
- 172 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
(CONTINUED)
For the year ended June 30, 2015
Schedule 15
Total
Capital Other
Assessment Capital Capital Projects Economic Capital Projects
29 Golf Properties Reserve Development Funds
-$ -$ -$ -$ -$ 289,582$
- - - 598,079 15,726 613,805
22 28,010 48 15,227 2,696 124,114
- - - - - 9,168
- 1,454,656 - 10,000 - 1,464,676
22 1,482,666 48 623,306 18,422 2,501,345
- - - 426,815 75,000 501,815
- 301,959 - 18,923 - 868,519
502,045 - - 413,989 - 926,435
49 - - - - 49
- - - 816,267 - 873,815
502,094 301,959 - 1,675,994 75,000 3,170,633
(502,072) 1,180,707 48 (1,052,688) (56,578) (669,288)
- - - - - 630,000
- (776,000) - - - (776,000)
- (776,000) - - - (146,000)
(502,072) 404,707 48 (1,052,688) (56,578) (815,288)
502,711 2,477,305 14,402 11,383,818 831,420 47,840,618
639$ 2,882,012$ 14,450$ 10,331,130$ 774,842$ 47,025,330$
- 173 -
-174 -
THIS PAGE INTENTIONALLY LEFT BLANK
-175 -
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for services are 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.
Schedule 16
Equipment Compensation
Replacement Benefits Total
ASSETS:
CURRENT ASSETS:
Cash and investments 7,324,778$ 2,673,598$ 9,998,376$
TOTAL CURRENT ASSETS 7,324,778 2,673,598 9,998,376
CAPITAL ASSETS:
Nondepreciable 421,272 - 421,272
Depreciable, net 1,037,083 - 1,037,083
CAPITAL ASSETS, NET 1,458,355 - 1,458,355
TOTAL ASSETS 8,783,133 2,673,598 11,456,731
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable 52,250 - 52,250
Compensated absences - 600,000 600,000
TOTAL CURRENT LIABILITIES 52,250 600,000 652,250
NONCURRENT LIABILITIES:
Compensated absences - 2,073,142 2,073,142
TOTAL NONCURRENT LIABILITIES - 2,073,142 2,073,142
TOTAL LIABILITIES 52,250 2,673,142 2,725,392
NET POSITION:
Net investment in capital assets 1,458,355 - 1,458,355
Unrestricted 7,272,528 456 7,272,984
TOTAL NET POSITION 8,730,883$ 456$ 8,731,339$
CITY OF PALM DESERT
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
June 30, 2015
- 176 -
Schedule 17
Equipment Compensation
Replacement Benefits Total
OPERATING REVENUES:
Miscellaneous 2,800$ -$ 2,800$
TOTAL OPERATING REVENUES 2,800 - 2,800
OPERATING EXPENSES:
Maintenance and operations 9,065 - 9,065
General and administrative - 63,704 63,704
Depreciation and amortization 247,720 - 247,720
TOTAL OPERATING EXPENSES 256,785 63,704 320,489
OPERATING LOSS (253,985) (63,704) (317,689)
NONOPERATING REVENUES:
Interest revenue 21,108 - 21,108
Gain on disposal of capital assets 11,720 - 11,720
TOTAL NONOPERATING REVENUES 32,828 - 32,828
LOSS BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (221,157) (63,704) (284,861)
CAPITAL CONTRIBUTIONS - 8,160 8,160
TRANSFERS IN 1,220,000 56,000 1,276,000
CHANGE IN NET POSITION 998,843 456 999,299
NET POSITION - BEGINNING OF YEAR 7,732,040 - 7,732,040
ET POSITION - END OF YEAR 8,730,883$ 456$ 8,731,339$
For the year ended June 30, 2015
- 177 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
Schedule 18
Equipment Compensation
Replacement Benefits Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers 2,800$ -$ 2,800$
Payments to employees - (82,402) (82,402)
Payments to suppliers (9,065) - (9,065)
NET CASH USED BY
OPERATING ACTIVITIES (6,265) (82,402) (88,667)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash received from other funds 1,220,000 2,756,000 3,976,000
NET CASH PROVIDED BY NONCAPITAL
AND RELATED ACTIVITIES 1,220,000 2,756,000 3,976,000
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (469,318) - (469,318)
Proceeds on sale of assets 24,300 - 24,300
NET CASH PROVIDED (USED) BY CAPITAL
AND RELATED FINANCING ACTIVITIES (445,018) - (445,018)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 21,108 - 21,108
NET INCREASE IN CASH
AND CASH EQUIVALENTS 789,825 2,673,598 3,463,423
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 6,534,953 - 6,534,953
CASH AND CASH EQUIVALENTS -
END OF YEAR 7,324,778$ 2,673,598$ 9,998,376$
(Continued)
CITY OF PALM DESERT
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2015
- 178 -
Schedule 18
Equipment Compensation
Replacement Benefits Total
RECONCILIATION OF OPERATING LOSS TO
NET CASH USED BY OPERATING ACTIVITIES:
Operating loss (253,985)$ (63,704)$ (317,689)$
Adjustments to reconcile operating loss to
net cash used by operating activities:
Depreciation and amortization 247,720 - 247,720
Changes in assets and liabilities:
Increase (decrease) in compensated absences - (18,698) (18,698)
NET CASH USED BY
OPERATING ACTIVITIES (6,265)$ (82,402)$ (88,667)$
CITY OF PALM DESERT
(CONTINUED)
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the year ended June 30, 2015
- 179 -
-180 -
THIS PAGE INTENTIONALLY LEFT BLANK
-181 -
AGENCY FUNDS
Agency Funds are used to account for assets held by the city as an agent for individuals, private
organizations, other governments and/or funds.
Agency Fund -This fund is used to account for deposits placed with the City by developers,
individuals and groups to obtain future services. Deposits are reduced by disbursements and/or refunds
to the depositors when the cost of services is determined.
Treasurers 1911 Bond Act -This fund is used to account for the assets held on behalf of the assessment
district’s property owners until they are remitted to the bondholders.
Retiree Service Stipend Fund -This fund is used to account for assets held to pay for the retiree service
stipend.
Special Assessment Funds -These funds are used to account for the collection of special assessments
and the future payment of debt service related to bonds issued.
Schedule 19
Special
Treasurers Retiree Service Assessment
Agency 1991 Bond Act Stipend Fund Funds Totals
Cash and investments 1,772,907$ 270,664$ 2,344,796$ 9,007,844$ 13,396,211$
Receivables (net of allowance
for uncollectibles):
Assessments - - - 84,632,764 84,632,764
Interest - - - 3,053 3,053
Due from other governments - - 420,471 143,995 564,466
Prepaid costs - - - 4,208 4,208
Restricted assets:
Cash with fiscal agent - - - 7,363,290 7,363,290
TOTAL ASSETS 1,772,907$ 270,664$ 2,765,267$ 101,155,154$ 105,963,992$
Deposits 1,772,907$ 270,664$ 2,765,267$ 101,155,154$ 105,963,992$
TOTAL LIABILITIES 1,772,907$ 270,664$ 2,765,267$ 101,155,154$ 105,963,992$
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
June 30, 2015
CITY OF PALM DESERT
- 182 -
ASSETS
LIABILITIES
Schedule 20
Balance Balance
July 1, June 30,
2014 Additions Deletions 2015
ASSETS:
Cash and investments 1,784,444$ 880,583$ 892,120$ 1,772,907$
TOTAL ASSETS 1,784,444 880,583 892,120 1,772,907
LIABILITIES:
Deposits 1,784,444$ 880,583$ 892,120$ 1,772,907$
TOTAL LIABILITIES 1,784,444 880,583 892,120 1,772,907
ASSETS:
Cash and investments 270,664$ -$ -$ 270,664$
TOTAL ASSETS 270,664 - - 270,664
LIABILITIES:
Deposits 270,664$ -$ -$ 270,664$
TOTAL LIABILITIES 270,664 - - 270,664
ASSETS:
Cash and investments 4,385,268$ 1,554,551$ 3,595,023$ 2,344,796$
Due from other government 456,102 420,471 456,102 420,471
TOTAL ASSETS 4,841,370 1,975,022 4,051,125 2,765,267
LIABILITIES:
Deposits 4,841,370$ 1,975,022$ 4,051,125$ 2,765,267$
TOTAL LIABILITIES 4,841,370 1,975,022 4,051,125 2,765,267
(Continued)
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
For the year ended June 30, 2015
CITY OF PALM DESERT
RETIREE SERVICES STIPEND FUN
AGENCY
TREASURERS 1911 BOND ACT
- 183 -
Schedule 20
Balance Balance
July 1, June 30,
2014 Additions Deletions 2015
ASSETS:
Cash and investments 9,025,537$ 7,493,764$ 7,511,457$ 9,007,844$
Receivables (net of allowance for uncollectibles):
Assessements 87,805,509 5,688 3,178,433 84,632,764
Interest 2,293 3,053 2,293 3,053
Due from other government 192,427 143,995 192,427 143,995
Prepaid costs 4,208 4,208 4,208 4,208
Restricted assets:
Cash with fiscal agen 7,518,124 12,560 167,394 7,363,290
TOTAL ASSETS 104,548,098 7,663,268 11,056,212 101,155,154
LIABILITIES:
Deposits 104,548,098$ 7,663,268$ 11,056,212$ 101,155,154$
TOTAL LIABILTIES 104,548,098 7,663,268 11,056,212 101,155,154
ASSETS:
Cash and investments 15,465,913$ 9,928,898$ 11,998,600$ 13,396,211$
Receivables (net of allowance for uncollectibles):
Accounts 87,805,509 5,688 3,178,433 84,632,764
Interest 2,293 3,053 2,293 3,053
Due from other governmet 648,529 564,466 648,529 564,466
Prepaid costs 4,208 4,208 4,208 4,208
Restricted assets:
Cash with fiscal agen 7,518,124 12,560 167,394 7,363,290
TOTAL ASSETS 111,444,576 10,518,873 15,999,457 105,963,992
LIABILITIES:
Deposits 111,444,576$ 10,518,873$ 15,999,457$ 105,963,992$
TOTAL LIABILITIES 111,444,576 10,518,873 15,999,457 105,963,992
- 184 -
TOTAL - ALL AGENCY FUNDS
SPECIAL ASSESSMENT FUND
CITY OF PALM DESERT
ALL AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the year ended June 30, 2015
(CONTINUED)
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2015
185
This part of the City of Palm Desert’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the city’s overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City’s
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City’s most
significant local revenue source.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt in
the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City’s financial report relates to the services the City provides
and the activities it preforms.
Sources: Unless otherwise noted, the information in theses schedules is derived from the comprehensive
annual financial reports for the relevant year, The City implemented GASB Statement 34 in 2001;
schedules presenting government-wide information include information beginning in that year.
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2015 2014 2013 2012 2011
Net Investment in capital assets 473,722,694 466,246,732 465,756,172 475,457,375 302,757,128
Restricted 135,900,520 140,460,575 132,741,798 119,736,419 147,648,424
Unrestricted 71,530,456 105,537,785 103,603,715 107,622,257 107,314,002
Total Governmental Activities Net Position 681,153,670 (5) 712,245,092 702,101,685 702,816,051 (4) 557,719,554
Business-Type Activities
Net Investment in capital assets 71,129,743 72,009,184 72,892,200 73,375,634 74,043,419
Restricted - - - - -
Unrestricted 4,302,958 3,920,382 3,682,061 3,901,816 4,068,623
Total Business-type Activities Net Position 75,432,701 75,929,566 76,574,261 77,277,450 78,112,042
Primary Government
Net Investment in capital assets 544,852,437 538,255,916 538,648,372 548,833,009 376,800,547
Restricted 135,900,520 140,460,575 132,741,798 119,736,419 147,648,424
Unrestricted 75,833,414 109,458,167 107,285,776 111,524,073 111,382,625
Total Primary Government Net Position 756,586,371 788,174,658 778,675,946 780,093,501 635,831,596
Governmental Activities 2010 2009 2008 2007 2006
Net Investment in capital assets 304,702,414 302,507,877 287,536,477 213,685,471 166,229,783
Restricted 143,394,780 159,157,317 161,360,654 173,335,615 153,342,045
Unrestricted 110,918,145 113,883,303 120,089,399 111,386,996 108,077,101
Total Governmental Activities Net Position 559,015,339 575,548,497 568,986,530 (3) 498,408,082 (2) 427,648,929 (1)
Business-Type Activities
Net Investment in capital assets 67,902,786 68,263,719 62,814,656 62,956,911 63,233,079
Restricted - - - - -
Unrestricted 4,391,160 4,686,899 5,211,985 5,294,980 4,459,840
Total Business-type Activities Net Position 72,293,946 72,950,618 68,026,641 68,251,891 67,692,919
Primary Government
Net Investment in capital assets 372,605,200 370,771,596 350,351,133 276,642,382 229,462,862
Restricted 143,394,780 159,157,317 161,360,654 173,335,615 153,342,045
Unrestricted 115,309,305 118,570,202 125,301,384 116,681,976 112,536,941
Total Primary Government Net Position 631,309,285 648,499,115 637,013,171 566,659,973 495,341,848
(1)The increase for FY 2006 is due to issuance of District Bond, see Note 13.
(2)The increase for FY 2007 is due to issuance of District Bond, see Note 13.
(3) The increase for FY 2008 is due to Capital Contribution of Hwy 111 & Hwy 74 infastructure totalling $30.19 million from the State of California.
(4) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see note 17 and note 18.
(5) 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, see Note 1d and 8
186
City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 16,337,393 19,194,343 16,375,295 17,387,080 17,182,987
Public safety 32,077,635 29,339,106 28,614,153 28,037,453 26,601,668
Housing & Redevelopment (2)11,666,724 7,852,611 6,944,033 10,519,663 15,976,383
Parks, recreation and culture 8,598,242 8,327,402 8,752,623 6,033,019 7,337,403
Public works 19,144,213 21,123,197 16,316,237 17,407,751 16,984,334
Payments to other agencies - - - 16,994,265 39,418,936
Interest on long term debt 294,258 237,053 253,381 10,971,707 18,989,167
Total Governmental Activites Expenses 88,118,465 86,073,712 77,255,722 107,350,938 142,490,878
Business-Type Activities:
Desert Willow Golf Course 8,433,267 8,452,001 8,655,754 8,471,567 7,946,063
Office Complex - Parkview 934,296 922,341 984,811 1,031,178 861,786
Total Business-Type Activities 9,367,563 9,374,342 9,640,565 9,502,745 8,807,849
Total primary government expenses 97,486,028 95,448,054 86,896,287 116,853,683 151,298,727
Program Revenues
Governmental Activities
Charges for services
General government 2,088,393 2,152,280 1,833,823 1,805,442 1,921,573
Housing & Redevelopment 7,971,265 6,851,603 5,308,858 5,034,002 4,935,422
Public safety 9,987,891 10,239,886 11,147,297 9,041,801 9,825,352
Parks, recreation and culture 772,728 729,076 898,222 728,721 768,786
Public works 1,832,241 2,180,877 768,775 826,251 762,015
Operating grants & contributions 7,512,894 9,745,609 5,876,028 7,411,902 5,675,777
Capital grants & contributions 19,297,015 21,086,051 7,733,439 2,309,678 2,255,393
Total Governmental Activites Program Revenues 49,462,427 52,985,382 33,566,442 27,157,797 26,144,318
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,894,676 7,804,904 7,494,819 7,635,352 7,338,640
Office Complex - Parkview 1,306,042 1,254,521 1,215,860 1,222,971 1,217,985
Capital grants & contributions 47,768 94,076 660,685 236,419 -
Total Business-type activites program revenue 9,248,486 9,153,501 9,371,364 9,094,742 8,556,625
Total Primary Government program revenue 58,710,913 62,138,883 42,937,806 36,252,539 34,700,943
Net (Expense) / Revenue
Governmental Activites (38,656,038) (33,088,330) (43,689,280) (80,193,141) (116,346,560)
Business-type activites (119,077) (220,841) (269,201) (408,003) (251,224)
Total Primary Government Net Expense (38,775,115) (33,309,171) (43,958,481) (80,601,144) (116,597,784)
General Revenues & Other Changes in Net Position
Governmental Activities:
Taxes: (Combined/Net Pass-through)41,931,997 39,952,738 38,742,060 73,105,614 114,880,586
Investment Earnings 494,452 358,674 318,996 1,102,309 2,158,556
Contributions not restricted for specific purpose - - - 791,256 762,588
Gain(loss) on sales of capital assets 11,720 488,319 - - -
Miscellaneous 1,726,007 1,994,506 3,894,203 5,838,881 3,169,977
Refunding of special assessment debt - - - - -
Transfers In / (Out) 437,500 437,500 437,500 440,000 (6,046,761)
Gain on Transfer to Successor Agency - - - 144,011,578 -
Total Governmental Activites Net Revenues 44,601,676 43,231,737 43,392,759 225,289,638 114,924,946
Business-Type Activities:
Investment Earnings 11,774 13,646 3,512 13,411 22,559
Gain(loss) on sales of capital assets 47,938 - - - -
Transfers Out (437,500) (437,500) (437,500) (440,000) 6,046,761
Total Business-type activites (377,788) (423,854) (433,988) (426,589) 6,069,320
Total primary government 44,223,888 42,807,883 42,958,771 224,863,049 120,994,266
Change in Net Position
Governmental Activities: 5,945,638 10,143,407 (296,521) 145,096,497 (1,421,614)
Business-Type Activities:(496,865) (644,695) (703,189) (834,592) 5,818,096
Total primary government 5,448,773 9,498,712 (999,710) 144,261,905 4,396,482
(1) The Increase for FY 2006 is due to Bond Funds received for capital improvement at the District known as University Park and Assessment 29. See Note 13.
(2)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(3) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397.
(4) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see Note 17 and 18.
2011 (3) Expenses 2015 2014 2013 2012 (4)
187
City of Palm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 16,701,292 17,328,291 21,953,229 11,659,965 13,276,549
Public safety 27,027,643 27,670,237 26,855,060 24,674,424 21,856,311
Housing & Redevelopment (2)16,220,066 16,760,877 24,095,414 28,296,802 21,086,301
Parks, recreation and culture 7,312,679 7,210,706 8,013,211 4,996,692 4,243,119
Public works 19,900,937 22,036,017 27,245,937 37,091,512 13,894,980
Payments to other agencies 63,320,650 39,085,940 38,993,445 35,719,075 36,844,061
Interest on long term debt 20,069,813 20,128,441 20,706,514 20,097,198 12,526,964
Total Governmental Activites Expenses 170,553,080 150,220,509 167,862,810 162,535,668 123,728,285
Business-Type Activities:
Desert Willow Golf Course 7,832,690 7,804,265 8,167,682 7,989,321 6,913,517
Office Complex - Parkview 875,394 852,746 649,548 716,592 646,769
Total Business-Type Activities 8,708,084 8,657,011 8,817,230 8,705,913 7,560,286
Total primary government expenses 179,261,164 158,877,520 176,680,040 171,241,581 131,288,571
Program Revenues
Governmental Activities
Charges for services
General government 2,127,138 7,574,059 8,454,683 8,225,112 8,318,175
Housing & Redevelopment 4,986,066 - - -
Public safety 9,431,478 9,396,435 8,808,300 9,078,214 8,376,981
Parks, recreation and culture 618,440 803,218 1,190,725 1,822,685 1,994,163
Public works 706,374 701,125 762,440 514,838 491,179
Operating grants & contributions 6,558,892 5,582,470 5,843,010 7,951,650 4,930,120
Capital grants & contributions 2,722,312 5,048,666 42,545,033 57,132,742 51,780,221
Total Governmental Activites Program Revenues 27,150,700 29,105,973 67,604,191 84,725,241 75,890,839
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,054,263 6,872,935 8,182,741 7,830,863 7,442,330
Office Complex - Parkview 988,056 958,942 934,833 915,975 864,447
Capital grants & contributions - - 206,609 278,757 295,304
Total Business-type activites program revenue 8,042,319 7,831,877 9,324,183 9,025,595 8,602,081
Total Primary Government program revenue 35,193,019 36,937,850 76,928,374 93,750,836 84,492,920
Net (Expense) / Revenue
Governmental Activites (143,402,380) (121,114,536) (100,258,619) (77,810,427) (47,837,446)
Business-type activites (665,765) (825,134) 506,953 319,682 1,041,795
Total Primary Government Net Expense (144,068,145) (121,939,670) (99,751,666) (77,490,745) (46,795,651)
General Revenues & Other Changes in Net Position
Governmental Activities:
Taxes: (Combined/Net Pass-through)120,872,421 123,650,887 129,521,410 122,485,939 114,826,387
Investment Earnings 2,916,753 6,161,309 15,309,271 17,521,600 6,197,595
Contributions not restricted for specific purpose 644,603 613,648 7,240,770 - -
Gain(loss) on sales of assets - - - - -
Miscellaneous 2,382,208 2,912,180 6,369,028 10,790,417 7,025,216
Refunding of special assessment debt - - - - -
Transfers In / (Out) 53,237 (5,661,521) 1,000,000 - -
Gain on Transfer to Successor Agency - - - - -
Total Governmental Activites Net Revenues 126,869,222 127,676,503 159,440,479 150,797,956 128,049,198
Business-Type Activities:
Investment Earnings 62,330 87,590 267,797 239,290 113,598
Transfers Out (53,237) 5,661,521 (1,000,000) - -
Total Business-type activites 9,093 5,749,111 (732,203) 239,290 113,598
Total primary government 126,878,315 133,425,614 158,708,276 151,037,246 128,162,796
Change in Net Position
Governmental Activities: (16,533,158) 6,561,967 59,181,860 72,987,529 80,211,752
Business-Type Activities:(656,672) 4,923,977 (225,250) 558,972 1,155,393
Total primary government (17,189,830) 11,485,944 58,956,610 73,546,501 81,367,145
(1) The Increase for FY 2006 is due to Bond Funds received for capital improvement at the District known as University Park and Assessment 29. See Note 13.
(2)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(3) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397.
(4) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see Note 17 and 18.
2006 (1) Expenses 2010 (3)2009 2008 2007
188
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:2015 2014 2013 2012 2011
Nonspendable 10,312,261 7,745,320 7,678,250 2,926,739 2,939,850 (1)
Restricted - - - - -
Committed - - - - -
Assigned 1,771,278 4,425,423 3,224,761 3,297,152 4,501,159
Unassigned 67,727,130 66,203,203 65,311,919 69,438,971 66,776,414
Total General Fund 79,810,669 78,373,946 76,214,930 75,662,862 74,217,423
All other Governmental Funds:
Nonspendable 348 6,713 (5) 49,319,200 39,525,247 40,925,918
Restricted 106,261,212 114,194,435 (5) 76,725,388 69,065,451 230,623,054
Committed 16,952,887 21,644,068 15,649,703 20,289,309 17,285,733 (3)
Assigned 24,172,531 24,429,824 14,144,969 17,552,726 19,375,999
Unassigned - - - - -
Total all other Governmental Funds 147,386,978 160,275,040 155,839,260 146,432,733 (4) 308,210,704 (4)
General Fund:2010 2009 2008 2007 2006
Nonspendable 9,676,961 11,629,384 11,897,843 22,199,914 21,231,046
Restricted - - - - -
Committed - - - - -
Assigned 4,044,421 3,654,300 4,406,391 2,998,204 5,114,813
Unassigned 63,847,586 59,066,988 63,515,054 50,916,281 48,004,509
Total General Fund 77,568,968 74,350,672 79,819,288 76,114,399 74,350,368
All other Governmental Funds:
Nonspendable 41,050,481 23,361,744 23,141,729 35,511,735 29,781,061
Restricted 260,163,043 296,323,735 299,960,611 318,529,973 147,669,565
Committed 8,871,910 4,559,739 (2) 18,487 9,000 -
Assigned 16,432,292 23,812,325 26,512,084 27,344,381 24,509,173
Unassigned - (2,392) - (55,684) -
Total all other Governmental Funds 326,517,726 348,055,151 349,632,911 381,339,405 201,959,799
(1) RDA made payment on advances from the city.
(2) Start of new Energy program that loans residents funds for energy efficiency.
(3) RDA Low Income Housing fund transfer for Capital Asset replacement to the Housing Authority.
(4) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see Note 17 and 18.
(5) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds. For more informations please
note 9 and 18.
189
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues:2015 2014 2013 2012 (3)2011
Taxes 52,571,369 50,464,511 50,768,200 82,901,921 124,672,062
Special assessments collected 3,058,766 3,486,220 3,654,337 3,232,923 3,262,163
Licenses & permits 1,757,250 2,262,907 1,586,796 1,041,834 1,089,543
Intergovernmental revenues 18,981,304 7,380,744 5,097,892 6,637,426 7,605,282
Rental income 5,660,762 5,626,850 5,367,630 5,146,499 5,011,205
Charges for services 1,819,464 2,165,020 898,222 728,721 701,481
Investment Earnings 1,242,662 864,853 373,012 1,469,142 3,102,649
Fines & forfeitures 224,612 231,768 242,568 276,452 310,840
Miscellaneous 2,377,923 3,539,552 9,028,698 6,814,924 3,095,689
Contributions from other government (4)9,168 10,749,218 - - -
Contributions from property owners - 420,590 - - -
Total Revenues 87,703,280 87,192,233 77,017,355 108,249,842 148,850,914
Expenditures:
General government 15,467,746 17,070,816 14,028,252 15,851,883 15,273,085
Housing & redevelopment 9,349,021 6,650,178 5,650,666 8,942,097 18,033,576
Pass-through-agreement - - - 16,994,265 39,418,936
Public safety 31,819,214 29,139,735 28,299,876 27,551,113 26,824,434
Parks, recreation & culture 6,236,717 5,802,941 6,162,449 3,685,334 3,845,901
Public works 13,082,388 12,741,764 9,819,591 11,306,021 11,256,499
Contributions to property owners 49 2,350,187 - - -
Capital outlay 19,339,987 6,273,822 2,788,676 9,575,227 14,205,889
Debt service:
Principal retirement 4,944,000 674,000 318,000 9,032,707 22,914,707
Interest and fiscal charges 240,219 242,495 255,239 10,187,765 18,176,454
Total Expenditures 100,479,341 80,945,938 67,322,749 113,126,412 169,949,481
Excess(deficiency of Revenues
over(under) expenditures (12,776,061) 6,246,295 9,694,606 (4,876,570) (21,098,567)
Other financing sources (uses)
Transfers in 6,132,859 4,861,551 11,274,539 24,453,724 69,995,597
Transfers out (6,971,359) (5,424,051) (11,010,550) (24,013,724) (70,555,597)
Extraordinary Gain / (Loss)- - - (155,895,962) -
Sale of property 2,163,222 911,001 - - -
Total Other financing sources (uses)1,324,722 348,501 263,989 (155,455,962) (560,000)
Net Change In Fund Balance (11,451,339) 6,594,796 9,958,595 (160,332,532) (21,658,567)
Revenues:2010 2009 2008 2007 2006
Taxes 130,655,949 134,060,681 140,331,466 138,272,454 131,303,483
Special assessments collected 3,182,549 2,759,444 2,060,791 929,348 269,036
Licenses & permits 782,271 1,383,778 1,453,177 2,691,486 2,685,415
Intergovernmental revenues 8,700,234 9,543,551 18,996,692 23,499,937 11,095,613
Rental income 5,023,770 5,050,479 4,789,421 4,513,146 4,737,861
Charges for services 618,440 803,218 1,190,725 1,822,685 1,994,163
Investment Earnings 4,681,243 8,322,808 22,592,392 23,985,001 9,351,716
Fines & forfeitures 343,054 315,284 254,857 274,365 310,868
Miscellaneous 3,374,309 3,479,370 20,164,099 2,847,802 2,470,623
Contributions from property owners (1)- - - 46,006,292 42,979,973
Total Revenues 157,361,819 165,718,613 211,833,620 244,842,516 207,198,751
Expenditures:
General government 19,294,744 18,950,675 24,776,785 18,231,351 15,111,294
Housing & redevelopment 13,612,720 14,359,340 38,018,819 26,356,634 19,395,693
Pass-through-agreement 63,320,650 39,085,941 38,993,445 35,719,075 36,844,061
Public safety 26,882,787 26,906,123 26,677,743 24,550,431 21,715,373
Parks, recreation & culture 4,534,505 5,122,900 4,572,695 3,921,063 3,304,867
Public works 13,971,797 16,241,963 22,936,721 33,925,623 11,103,943
Capital outlay 6,333,521 22,348,953 52,256,552 85,604,515 35,359,139
Debt service:
Principal retirement 15,250,707 12,778,707 10,767,707 8,209,707 5,607,707
Interest and fiscal charges 19,280,517 19,424,623 23,376,564 25,814,526 14,072,572
Total Expenditures 182,481,948 175,219,225 242,377,031 262,332,925 162,514,649
Excess(deficiency of Revenues
over(under) expenditures (25,120,129) (9,500,612) (30,543,411) (17,490,409) 44,684,102
Other financing sources (uses)
Transfers in 59,960,402 68,088,670 59,723,636 249,249,847 50,225,747
Transfers out (59,520,402) (67,649,434) (58,723,636) (249,249,847) (50,225,747)
Bond Premiums - - - 7,785,375 -
Bonds issued/Capital Accreation on bonds (2)6,361,000 - - 287,534,894 -
Payment refunded bond escrow agent 2,015,000 1,484,806 (101,656,501) -
Sale of property - - 47,000 5,230,000 3,360,030
Total Other financing sources (uses)6,801,000 2,454,236 2,531,806 198,893,768 3,360,030
Net Change In Fund Balance (18,319,129) (7,046,376) (28,011,605) 181,403,359 48,044,132
(1)Bond was issued in FY 2006 and FY 2007. See Note 13 for further explanation.
(2) See Note 18 of the Financial Statement, included Capital Accreation of Bonds.
(3) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see Note 17 and 18.
(4) In prior years, City recorded contributions from other governments as miscellaneous revenue.
0.9%18.6%
Debt service as a percentage of noncapital
expenditures
26.4%
19.6%21.1%18.0%19.3%15.5%
Debt service as a percentage of noncapital
expenditures 6.4%1.2%
190
City of Palm Desert
Graphs - Changes in Fund Balances of Governmentals Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(1) Combined Other is a combination of rental income, investment earnings, and charges for services.
(2) Miscellaneous Other is a combination of fines and forefeitures, miscellaneous, contributions from other governments, and contributions from property owners.
(3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement .
(4) Public works is a combination of public works and contributions to property owners.
Note: Graphs excludes Other financing sources and uses.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
FY
2
0
1
5
FY
2
0
1
4
FY
2
0
1
3
FY
2
0
1
2
FY
2
0
1
1
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
Total Revenues
Combined other (1)
Miscellaneous other (2)
Intergovernmental revenues
Licenses & permits
Taxes & Special Assessments
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
FY
2
0
1
5
FY
2
0
1
4
FY
2
0
1
3
FY
2
0
1
2
FY
2
0
1
1
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works (4)
Public safety
Housing & Redevelopment
General Government
191
City of Palm Desert
Supplemental - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
FY 2015 2014 2013 2012 2011
Revenue Type:
Sales Tax 17,565,134$ 17,258,958$ 16,764,808$ 15,836,953$ 14,680,578$
Transient Occupancy Tax 10,799,680 9,855,509 9,188,981 8,085,225 7,421,769
Property Tax (3)9,710,990 9,041,428 9,529,018 7,976,494 8,341,728
Investment Earnings 416,656 405,456 126,206 408,661 793,461
Transfer In 2,179,472 1,373,786 2,127,655 2,240,703 2,691,634
Franchises 3,102,431 3,007,215 2,892,805 2,856,679 2,771,594
State Subventions (1) (3)155,049 22,089 26,691 25,759 236,211
Building & Grading Permits 1,279,706 1,695,303 1,206,935 750,442 783,031
Reimbursments (4)1,604,707 1,809,323 1,868,804 2,535,977 1,971,505
Business License Tax 1,160,207 1,169,316 1,149,551 1,076,541 1,085,411
Timeshare Mitigation Fee 1,483,158 1,333,586 1,292,859 1,110,227 1,192,490
Plan Check Fees 505,370 662,893 500,698 275,728 317,332
Property Transfer Tax 558,965 530,556 520,393 485,040 399,280
Other Revenues (2)1,713,758 1,932,009 1,961,314 1,398,669 1,475,154
Total General Revenue 52,235,283$ 50,097,427$ 49,156,718$ 45,063,098$ 44,161,178$
FY 2010 2009 2008 2007 2006 (3)
Revenue Type:
Sales Tax 13,273,793$ 14,474,933$ 17,195,743$ 17,918,375$ 17,776,928$
Transient Occupancy Tax 6,848,132 7,030,048 8,605,714 8,627,221 8,026,101
Property Tax (3)8,707,567 8,776,917 9,333,842 8,714,568 8,261,944
Investment Earnings 1,766,868 2,142,915 4,571,147 4,890,891 2,636,050
Transfer In 4,747,672 2,684,568 1,101,610 1,122,224 1,083,589
Franchises 2,705,902 2,818,729 2,887,727 2,907,062 2,580,917
State Subventions (1) (3)151,489 173,448 220,785 267,595 358,954
Building & Grading Permits 575,852 950,805 975,296 1,476,290 1,963,733
Reimbursments (4)2,488,378 3,263,247 4,933,807 2,465,685 1,982,846
Business License Tax 1,071,997 1,258,688 1,311,090 1,231,587 1,242,721
Timeshare Mitigation Fee 1,483,220 949,871 881,350 782,739 661,187
Plan Check Fees 224,325 389,770 562,930 617,999 702,857
Property Transfer Tax 455,580 324,817 604,236 671,806 1,030,412
Other Revenues (2)1,567,651 1,601,947 1,900,529 2,436,664 2,606,760
Total General Revenue 46,068,426$ 46,840,703$ 55,085,806$ 54,130,706$ 50,914,999$
(1) State Subventions is any combination of motor vehicle and off-highway in-lieus, and subventions from state.
(2) Other Revenues is any combination of miscellaneous penalties and interest, permits, grants, parking bails, fees,
sales of maps and publications, vehicle and court fines, rental income and other revenues.
(3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes.
(4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement
is limited and applies to existing projects.
192
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property
transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants,
incomes, penalties, permits, sales and taxes.
*State Subventions is any combination of motor vehicle and off-highway in-lieus, and
subventions from state.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
F
Y
2
0
1
5
F
Y
2
0
1
4
F
Y
2
0
1
3
F
Y
2
0
1
2
F
Y
2
0
1
1
F
Y
2
0
1
0
F
Y
2
0
0
9
F
Y
2
0
0
8
F
Y
2
0
0
7
FY
2
0
0
6
Combined Other (1)
Interest
Property Tax
Transient Occupancy Tax
Sales Tax
193
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2015 2014 2013 2012 2011
Expenditure:
Public Safety (1)18,784,117$ 17,306,342$ 17,002,291$ 16,532,894$ 16,047,991$
City Administration (2)7,561,255 7,413,578 7,180,519 7,670,377 8,023,314
Public Works Administration 2,645,443 2,556,967 2,528,131 2,527,817 2,380,255
Community Promotions 749,631 618,138 575,119 526,804 497,366
Street Maintenance 2,631,590 2,806,168 2,353,655 2,446,854 2,522,117
Building Safety 1,847,798 1,783,918 1,517,937 1,538,506 1,523,748
Street Resurfacing 998,463 4,466 1,179,743 2,332,968 2,268,901
Public Works (4)1,067,837 1,018,435 1,505,018 1,056,998 1,354,255
Other Expenditures (3)14,512,426 14,430,399 14,762,237 8,984,441 12,894,776
Total Expenditures 50,798,560$ 47,938,411$ 48,604,650$ 43,617,659$ 47,512,723$
FY 2010 2009 2008 2007 2006
Expenditure:
Public Safety (1)15,671,095$ 16,266,052$ 14,413,196$ 13,404,056$ 12,323,448$
City Administration (2)8,556,627 10,076,543 9,861,106 8,588,341 8,410,706
Public Works Administration 3,021,319 3,720,106 3,329,792 3,014,583 2,823,359
Community Promotions 990,505 1,798,860 2,532,637 2,402,435 1,687,148
Street Maintenance 2,565,567 2,183,445 2,133,448 1,968,849 1,681,583
Building Safety 1,756,589 2,082,996 3,260,855 3,084,015 2,695,889
Street Resurfacing 708,006 1,115,721 3,342,542 1,192,629 1,277,554
Public Works (4)1,278,983 1,552,242 1,348,012 1,204,079 1,117,417
Other Expenditures (3)8,301,439 13,513,354 11,159,329 17,989,005 7,846,311
Total Expenditures 42,850,130$ 52,309,319$ 51,380,917$ 52,847,992$ 39,863,415$
(1) Public Safety is any combination of animal regulation, police services, and traffic safety expenditures.
(2) City Administration is any combination of community services, auditing, City attorney, City clerk, City council and
City manager, information technology, elections, finance, general services, human resources, insurance, legal special services,
legistlative advocacy, retiree health and unemployment insurance expenditures.
(3) Other Expenditures is any combination of aquisitions, committees, contributions, community
development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center.
(4) Public Works is a combination of curb & gutter,parking lot, storm drain, stripping,corporate yard
equipment, building maintenance, Portola Community center, storm water permit.
194
City of Palm Desert
Supplemental Graph - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
(1) "Combined Other" is any combination of street maintenance, building safety, street resurfacing and public
works. It may also be aquisitions, centers, committees, contributions, community development,
marketing, interfund transfers, parks, recreation and culture, visitor center.
(2) City Administration is any combination of community services, auditing, City attorney, City clerk, City council and
City manager, information technology, elections, finance, general services, human resources, insurance, legal special services,
legistlative advocacy, retiree health and unemployment insurance expenditures.
(3) Other Expenditures is any combination of aquisitions, committees, contributions, community
development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center.
(4) Public Works is a combination of curb & gutter,parking lot, storm drain, stripping,corporate yard
equipment, building maintenance, Portola Community center, storm water permit.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
F
Y
2
0
1
5
F
Y
2
0
1
4
F
Y
2
0
1
3
F
Y
2
0
1
2
F
Y
2
0
1
1
F
Y
2
0
1
0
F
Y
2
0
0
9
F
Y
2
0
0
8
F
Y
2
0
0
7
F
Y
2
0
0
6
Combined Other (1)
Community Promotions
Public Works Administration
City Administration (2)
Public Safety (3)
195
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2015 2014 2013 2012 2011
Total General Revenue (2)50,055,811$ 48,723,641$ 47,029,063$ 42,822,395$ 41,469,544$
Population (1)51,053 50,417 49,949 49,471 49,111
General Revenue Per Capita 980$ 966$ 942$ 866$ 844$
FY 2010 2009 2008 2007 2006
Total General Revenue (2)41,320,754$ 44,156,135$ 53,984,196$ 53,008,482$ 49,831,410$
Population (1)52,067 51,509 50,907 49,752 49,539
General Revenue Per Capita 794$ 857$ 1,060$ 1,065$ 1,006$
FY 2015 2014 2013 2012 2011
Total General Expenditures (2)46,302,187$ 44,183,659$ 42,155,428$ 42,099,903$ 41,833,291$
Population (1)51,053 50,417 49,949 49,471 49,111
General Expenditures Per
Capita 907$ 876$ 844$ 851$ 852$
FY 2010 2009 2008 2007 2006
Total General Expenditures (2)42,499,812$ 48,696,321$ 49,238,257$ 43,565,108$ 38,488,367$
Population (1)52,067 51,509 50,907 49,752 49,539
General Expenditures Per
Capita 816$ 945$ 967$ 876$ 777$
(1) Population figures are as of January start of fiscal year.
(2) Interfund Transfers In/Out and extraordinary loss are not included in total.
Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department
196
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197
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)
2015 9,636,181,445 2,290,456,630 54,211,991 420,142,932 (298,165,952)13,552,997,813 1.00000 13,086,962,905
2014 9,043,372,632 2,247,924,054 64,595,519 426,330,424 (297,139,386)12,919,103,760 1.00000 12,453,921,285
2013 8,621,493,305 2,239,836,432 62,565,263 462,982,950 (300,313,265)12,513,052,693 1.00000 12,064,845,537
2012 8,694,403,021 2,198,729,088 50,256,665 452,309,984 (288,975,823)12,564,166,215 1.00000 12,123,771,853
2011 8,982,403,643 2,179,940,065 52,528,676 564,683,270 (288,907,720)13,132,169,069 1.00000 12,707,884,566
2010 9,210,638,643 2,419,511,046 54,988,887 426,163,878 (274,944,437)13,747,221,855 1.00000 13,334,233,975
2009 9,376,213,348 2,130,957,579 127,857,455 667,700,041 (255,714,909)14,206,383,860 1.00000 13,808,181,235
2008 9,160,443,514 1,929,224,481 134,910,803 688,045,095 (242,839,445)13,491,080,286 1.00000 13,114,105,220
2007 8,931,447,910 1,684,439,737 143,634,396 639,825,947 (248,095,775)13,057,672,383 1.00000 11,853,797,089
2006 7,913,843,803 1,368,116,067 165,117,456 483,558,265 (247,676,185)11,794,104,029 1.00000 10,503,193,237
(1) Estimated Actual Taxable Value = Net Taxable Value
Notes: Property Taxes in Riverside County are subject to the State of California's Proposition 13, Jarvis-Gann Initiative which allows reappraisals of real property only
when there is a change in ownership or new construction takes place. Further, the proposition limits property assessment increase to no more than two(2%) percent
annually. Property is assessed at one hundred percent (100%) of its fair market value at the time of new construction or change in ownership.
The tax rate is one (1%) percent of the assessed value.
Source: Riverside County Assessor thru HDL Coren & Cone
198
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Ten Fiscal Years
Historical Major Additions
Annexations FY Retail Centers FY
Cook Street Area 88/89 Town Center Mall 83/84
Country Club #28 93/94 Desert Springs Marriott 86/87
Price Club/Costco 93/94 One Eleven Town Ctr 88/89
Palm Desert CC #29 94/95 Mervyn's Center 92/93
Palm Desert Greens 04/05 Desert Crossing 95/96
Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97
Remodel 111 Town Ctr (Best Buy)97/98
Gardens on El Paseo 98/99
Remodel Westfield Mall (Sears, Barnes & Noble) 04/05
Sears Automotive 04/05
Lowes Home Improvement 05/06
Walmart / Sams Supercenters 05/06
Kohls 07/08
Golfsmith Extreme 08/09
El Paseo Village 09/10
Best Buy & Ulta 11/12
Remodel Westfield Mall (Dick's/H&M/Restaurants) 12/13
PGA Tour Superstore 12/13
Source: Riverside County Assessor thru HDL Coren & Cone
11.63%12.86%10.63%
5.29%
-3.43%-4.70%-4.60%
-0.49%
3.22%
5.08%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Percent Increase in Assessed Valuation
FY 2006 to FY 2015
$-
$5,000
$10,000
$15,000
$20,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Value in Millions
Net Assessed Valuation -Historical Comparison
FY 2006 to FY 2015
199
City of Palm Desert
Supplemental FY 2015 and 2014 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency FY 2015 Rate FY 2014 Rate
County General 28.177327%28.177327%
County Free Library 2.728242%2.728242%
County Structure Fire Protection 5.873086%5.873086%
City of Palm Desert (1)0.000000%0.000000%
Desert Sands Unified School District 36.221587%36.221587%
Desert Community College 7.526714%7.526714%
Riverside County Reg. Park & Open Space 0.426231%0.426231%
Riverside County Office of Education 4.094919%4.094919%
Desert Hospital 1.996808%1.996808%
Coachella Valley Public Cemetary 0.339927%0.339927%
Coachella Valley Recreation & Park 2.071624%2.071624%
Coachella Valley Mosquito & Vector Control 1.369698%1.369698%
Coachella Valley County Water 2.736607%2.736607%
Coachella Valley County Water Imp. District 80 2.972906%2.972906%
Coachella Valley County Water Storm Water Unit 3.464324%3.464324%
General Purpose Basic 1%100.000000%100.000000%
(1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low Property
Tax Cities.
Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041.
200
City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Fiscal
Year
Basic
County-wide
Lev
Total
Direct Tax
Rate
Desert Sands
Unified School
District
Desert
Community
Colle e Dist.
Coachella
Valley Water
District
Coachella
Valley Water
District I.D. 58
2015 1.00000 1.00000 0.10984 0.02325 0.10000 0.00000
2014 1.00000 1.00000 0.10954 0.01995 0.10000 0.00000
2013 1.00000 1.00000 0.11156 0.01995 0.08000 0.00000
2012 1.00000 1.00000 0.11467 0.01995 0.08000 0.00000
2011 1.00000 1.00000 0.10036 0.01995 0.08000 0.00000
2010 1.00000 1.00000 0.08112 0.01995 0.06000 0.00000
2009 1.00000 1.00000 0.07990 0.01995 0.04000 0.00000
2008 1.00000 1.00000 0.07561 0.01995 0.04000 0.00230
2007 1.00000 1.00000 0.07613 0.01995 0.02080 0.01560
2006 1.00000 1.00000 0.07674 0.01995 0.02080 0.02520
Notes:Proposition 13 limits the ability of the city to raise the property tax rate.
Source: CalMuni Statistics Inc
City Direct Overlapping Rates
201
City of Palm Desert
Principal Property Taxpayers
Current Year and Ten Years Ago
2015 2006
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
WEA Palm Desert 144,751,735$ 1.10%Marriott Desert Springs $213,636,278 2.02%
Marriott Desert Springs 142,417,301 1.09%WEA Palm Desert 113,943,575 1.08%
Gardens on El Paseo LLC 101,110,901 0.77%Desert Crossing II 81,568,478 0.77%
WVC Rancho Mirage 94,636,672 0.72%Elisabeth E. Stewart 77,723,728 0.74%
Pru Desert Crossing II
LLC 85,231,391 0.65%Gardens SPE II 72,748,261 0.69%
Walmart Real Estate
Business Trust 57,712,366 0.44%Marriott Ownership
Resorts-Timeshares 44,313,608 0.42%
Marriott Ownership
Resorts-Timeshares 56,584,242 0.43%J H Palm Desert 40,910,898 0.39%
Segovia Operations 47,927,486 0.37%Big Horn Development 38,560,719 0.37%
Monarch Sevilla Venture 47,585,410 0.36%NGP Realty Sub 31,644,131 0.30%
Sunrise Spectrum 47,054,777 0.36%PR XIV 31,029,800 0.29%
Total 825,012,281$ 6.29%Total 746,079,476$ 7.07%
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 14/15 and HdL Coren & Cone thru Riverside County Assessor 05/06
202
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30,Fiscal Year Amount of Levy Years (4)Amount (4)(5)of Levy
2006 4,318,880 4,243,595 98.26%75,285 4,318,880$ 100.00%
2007 4,820,583 4,575,158 94.91%245,425 4,820,583$ 100.00%
2008 5,206,384 4,734,970 90.95%471,414 5,206,384$ 100.00%
2009 5,697,181 4,760,806 83.56%135,057 4,895,863$ 85.93%
2010 5,372,247 4,686,541 87.24%282,866 4,969,407$ 92.50%
2011 5,312,856 4,560,417 87.24%216,378 4,776,795$ 89.91%
2012 5,478,345 4,366,451 79.70%188,685 4,555,136$ 83.15%
2013 5,398,524 4,913,780 91.02%1,228,718 6,142,498$ 113.78%
2014 5,623,740 5,048,787 89.78%497,554 5,546,341$ 98.62%
2015 5,911,501 5,523,658 93.44%516,469 6,040,127$ 102.18%
(1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was
received in the fiscal year 1993/94.
(2) City of Palm Desert is a "No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973
which is when the City of Palm Desert incorporated and the Property Tax rates were zero.
Based on current state law the County allocates 7% of the 1% assessed values within the City less the
Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes.
(3) Fiscal Year 1996/97 final total collected includes adjustments for No-Low property
tax collections from prior years modified by the County of Riverside. The County adjusted the payment to
the City of Palm Desert (FY 1995/96) for the annexation of Palm Desert Country Club.
(4) Includes tax collections accrued as of June 30, 2015.
(5) Includes amounts receivable for tax year 2014-2015 along with prior receivables due for prior tax years.
Source: Riverside County Auditor Controller Office and City of Palm Desert
Collected within the
Fiscal Year of the Levy (1) (2) (3)
Total Collections to Date
203
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2015
Top 25 Sales Tax Generators (1)Primary Economic Category
ALBERTSON'S FOOD CENTERS SUPERMARKETS
APPLE STORES SPECIALTY STORES
ARCO AM/PM MINI MARTS SERVICE STATIONS
BEST BUY STORES LP APPLIANCE / ELECTRONICS
CIRCLE K FOOD STORES SERVICE STATIONS
COSTCO WHOLESALE COMPANY GENERAL STORES
J.C.PENNY COMPANY INC DEPARTMENT STORES
JW MARRIOTT DESERT SPRINGS HOTEL / FOOD & BEVERAGE
KOHLS DEPARTMENT STORES DEPARTMENT STORES
LOWE'S HOME CENTERS BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES
MARSHALL'S STORES APPAREL STORES
NORDSTROM RACK DEPARTMENT STORES
PETE CARLSONS GOLF & TENNIS SPORTING GOODS
PGA TOUR SUPERSTORE SPORTING GOODS
SAKS FIFTH AVENUE DEPARTMENT STORES
SAM'S CLUB DEPARTMENT STORES
SEARS-ROEBUCK AND CO DEPARTMENT STORES
SIMPLOT PARTNERS SPECIALTY WHOLESALE STORES
STONELEDGE FURNITURE HOME FURNISHINGS
SUPERIOR POOL PRODUCTS SPECIALTY WHOLESALE STORES
TARGET STORES DEPARTMENT STORES
TOMMY BAHAMA APPAREL STORES/RESTAURANT
TOTAL WINE & MORE SUPERMARKETS
WAL-MART SUPERCENTER DEPARTMENT STORES
(1) Listed in Alphabetical Order
Note : Current California law prohibits production of individual tax information as an effort not to infringe on proprietary
information, therefore confidential information which is protected by law is not disclosed.
* The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged.
Source: SBOE Data, MuniServices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert
$7.0
$9.0
$11.0
$13.0
$15.0
$17.0
$19.0
$21.0
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
Millions
Sales and Use Tax Trends FY 2006 -2015
0.8%-4.0%
-15.8%
-8.3%
7.9%
5.9%
Amounts
% = % Change from Prior Year
1.8%15.0%
17.776 17.918 17.195 14.474 13.273 14.680 15.836 16.764 17.258 17.565
10.6%
-In Lieu *
2.9%
204
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Apparel Stores 2,080,342$ 1,956,390$ 1,884,720$ 1,738,840$ 1,682,350$ 1,341,860$ 1,424,880$ 1,592,070$ 1,558,590$ 1,415,100$
General Merchandise 3,786,704 3,809,305 3,783,700 3,667,800 3,210,230 3,043,960 3,266,730 3,885,830 3,927,380 3,625,120
Food Markets 799,835 807,438 767,770 507,340 468,900 405,730 448,800 493,980 538,700 505,560
Restaurants 2,725,634 2,561,784 2,377,780 2,276,530 1,520,430 1,374,750 1,459,070 1,817,310 1,849,540 1,782,480
Furniture/Appliance 1,048,971 988,716 996,960 973,270 971,710 974,150 1,061,660 1,357,750 1,619,970 1,661,090
Bldg.Matls-Wholesale 1,128,350 1,113,345 984,810 882,170 730,230 582,410 865,640 956,330 697,730 732,280
Automotive 221,758 201,898 198,570 182,640 150,940 113,140 103,010 85,960 61,210 62,450
Service Stations 597,432 624,849 638,490 866,370 607,640 664,160 649,120 639,690 594,010 485,640
Other Retail 1,869,242 1,769,914 1,586,330 1,489,210 1,414,080 1,857,220 2,180,050 2,829,730 2,958,300 2,813,880
Non-Retail (1)1,681,430 1,498,793 1,455,190 1,262,170 1,822,270 1,856,550 1,822,230 2,194,110 2,221,770 2,185,910
Totals 15,939,698$ 15,332,432$ 14,674,320$ 13,846,340$ 12,578,780$ 12,213,930$ 13,281,190$ 15,852,760$ 16,027,200$ 15,269,510$
City direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%
(1) Non-retail are a mix of manufacturers, distributors, builders and professionals selling direct to consumers.
Note: The combined sales tax rate for the City of Palm Desert is 7.75%, which represents the State of California mandated tax rate
of 7.25% and 0.5% additional sales tax imposed by the County of Riverside.
The City of Palm Desert receives 1% of all sales tax generated within the city limits.
Source: Muniservices LLC via California State Board of Equalization
205
City of Palm Desert
Supplemental Prinicipal Sales Tax Remitters
Current and Ten Calendar Years Ago
Tax Amount Percentage Tax Amount Percentage
General Merchandise 3,786,704 23.76%3,625,120$ 23.74%
Other Retail 1,869,242 11.73%2,813,880$ 18.43%
Non-Retail (1)1,681,430 10.55%2,185,910$ 14.32%
Restaurants 2,725,634 17.10%1,782,480$ 11.67%
Apparel Stores 2,080,342 13.05%1,415,100$ 9.27%
Furniture/Appliance 1,048,971 6.58%1,661,090$ 10.88%
Service Stations 597,432 3.75%485,640$ 3.18%
Bldg.Matls-Wholesale 1,128,350 7.08%732,280$ 4.80%
Food Markets 799,835 5.02%505,560$ 3.31%
Automotive 221,758 1.39%62,450$ 0.41%
Totals 15,939,698$ 15,269,510$
(1) Non-retail are a mix of manufacturers, distributors, builders and professionals selling direct to consumers.
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.
Source: Muniservices LLC via California State Board of Equalization
Industry 2014 2005
206
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business Type Activities
Special Assessment/Compensated Absences Total
Fiscal Local Obligation Claims and Judgments Note Capital Primary
Year Bonds Payable Payable Leases Government
2006 - 2,919,327 736,242 170,493 3,826,062
2007 2,783,000 c 3,069,054 613,535 2,181,546 8,647,135
2008 2,748,000 3,324,537 490,828 1,582,782 8,146,147
2009 4,717,000 d 3,538,422 368,121 955,141 9,578,684
2010 10,095,000 e,f 3,062,201 245,414 328,273 13,730,888
2011 9,543,000 2,798,466 122,707 1,035,721 13,499,894
2012 9,238,000 3,268,224 - 2,291,358 14,797,582
2013 8,920,000 3,334,322 - 1,751,083 14,005,405
2014 8,246,000 3,713,172 - 1,222,915 13,182,087
2015 3,302,000 f 2,972,605 - 1,435,046 7,709,651
Special Percentage
Fiscal Redevelopment Assessment of Personal Per
Year Bonds Bonds Income b,g Capita b,g
2006 245,000,000 73,855,000 15.38%7,621
2007 421,819,894 119,610,000 a 25.79% 12,832 a
2008 412,694,700 112,615,000 21.87%11,132
2009 401,601,475 109,880,000 21.04%10,840
2010 388,972,156 107,070,000 20.28%10,561
2011 368,261,367 104,170,000 19.05%9,356
2012 354,527,796 101,155,000 18.17%8,990
2013 339,786,269 98,035,000 17.19%8,588
2014 317,717,317 86,385,000 15.64%7,887
2015 301,004,341 83,170,000 14.47%7,390
a - The city issued $50.51 million of special assessment bonds in fiscal year end 2007 allocated to three separate assessment districts. In addition the City's
Redevelopment Agency issued $284.37 in bonds of which $183.15 was new debt.
b - 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 1.5% growth rate.
c - Special Assessment Government Activities includes Highlands Undergrounding AD No# 04-01.
d - Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million to fund the
Energy Independence Loan Program. The actual Bond Issuance was for $2.015M.
e - 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.
f - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). On September 2, 2014 the bonds were called in full.
g - Personal income and Per Capita statistic includes government, business, and fiduciary activities combined.
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Primary Government
Governmental Activities
Fiduciary Activities
207
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Successor Agency Percentage of Actual
Fiscal Redevelopment Special Assessment Taxable Value of Per
Year Bonds Bonds Property Capita
Note: There is no General Obligation Bonds from FY 2006 to FY 2015
208
City of Palm Desert
Supplemental Special Assesment Information
June 30, 2015
District Name\Description 2003 01-01 Revenue
Bonds 94-3 Merano 5
2003 01-01
Revenue Bonds
Silver Spur Ranch
Utility
Undergrounding 5
2004 R-Bonds
98-1
Canyons @ Bighorn
Community Facilities District
No. 2005-1 (University Park)
Special Tax Bonds Series 2006A
2004-2 Section 29
Assessment District
Limited Obligation
Improvement Bonds
Bond Issue Date 06/25/03 06/25/03 02/19/04 05/09/06 3/29/2007
Final Maturity Date 09/02/20 09/02/28 09/02/18 09/01/37 9/2/2037
Highest Interest Rate 5.25%5.375%5.100%5.424%5.100%
Bond Issue Amount 1,153,000$ 2,340,000$ 2,955,000$ 67,915,000$ 29,430,000$
Matured Principal 638,000$ 665,000$ 1,360,000$ 8,425,000$ 3,350,000$
Called Principal 5,000$ 160,000$ 1,305,000$ 6,130,000$ 2,305,000$
Outstanding Bonds (4)510,000$ 1,515,000$ 290,000$ 53,360,000$ 23,775,000$
Redemption Premium 3.00%3.00%3.00%3.00%3.00%
Original Parcels 121 201 97 37 707
Active Parcels 119 193 10 67 666
Reserve Requirement 61,332$ 182,144$ 29,000$ 4,107,784$ 1,762,360$
Reserve Balance 14/15 149,260$ 204,078$ 84,080$ 4,158,178$ 1,826,930$
Principal Due 15/16 (2)75,000$ 80,000$ 65,000$ 1,345,000$ 590,000$
Principal Levied 15/16 (3)73,982$ 79,857$ 68,642$ 1,345,000$ 644,466$
Interest Due 15/16 (2)24,168$ 77,641$ 12,786$ 2,762,784$ 1,172,360$
Interest Levied 15/16 (3)25,909$ 80,955$ 14,659$ 2,794,290$ 1,299,188$
14/15 Delinquency Rate 1.66%1.53%0.00%4.07%5.11%
Arbitrage Installment Computation Date:
90% Rebate Due 09/02/19 12/17/18 12/16/18 05/08/16 04/11/17
Arbitrage Yield Rate 6.672%5.1577%5.8386%5.3599%5.0134%
Arbitrage-Amount Owed - - - - -
Continuing Disclosure Last Report
Issued:12/15/2014 12/15/2014 12/15/2014 12/15/2014 12/15/2014
District Name\Description
Series 2008
Community Facilities
District No. 91-1 Special
Tax Refunding Bonds
Bond Issue Date 12/19/2007
Final Maturity Date 10/1/2020
Highest Interest Rate 4.000%
Bond Issue Amount 10,935,000$
Matured Principal 7,205,000$
Called Principal -
Outstanding Bonds (4)3,730,000$
Redemption Premium 3.00%
Original Parcels (Parcels in District)1,153
Active Parcels 1,059
Reserve Requirement 1,093,500$
Reserve Balance 14/15 (1)1,726,046$
Principal Due 15/16 (2)1,030,000$
Principal Levied 15/16 (3)1,030,000$
Interest Due 15/16 (2)118,983$
Interest Levied 15/16 (3)137,007$
14/15 Delinquency Rate 0.77%
Arbitrage Installment Computation Date:
90% Rebate Due 08/08/16
Arbitrage Yield Rate 3.8681%
Arbitrage-Amount Owed -
Continuing Disclosure Last Report
Issued:12/15/2014
(1) Reserve Balances are as of 6/30/15.
(2) Amount represents principal and interest collected suring the FY 14/15 tax roll for Debt Service Payment due in FY 15/16.
(3) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments.
(4) Outstanding bond balance at June 30, 2015.
(5) The schedule presents the information for each individual local obligation bonded district. Assessment Districts
94-3 Merano and 01-01 Silver Spur were refunded and obligated to pay Debt Service to Series 2003 Assessment Revenue Bonds
see note 13 for additional information.
Source: Wildan Financial Annual Report
209
City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30, 2015
2014/15 Assessed Valuation:13,091,608,236$
City's Share of
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT:Total Debt 6/30/15 % Applicable (1)Debt 6/30/15
Desert Community College District 308,619,492$ 19.235%59,362,959$
Desert Sands Unified School District 267,444,474 34.638%92,637,417
Palm Springs Unified School District 354,019,218 4.296%15,208,666
City of Palm Desert 1915 Act Bonds 26,080,000 100.000%26,080,000
City of Palm Desert Community Facilities District No. 91-1 3,730,000 100.000%3,730,000
City of Palm Desert Community Facilities District No. 2005-1 53,360,000 100.000%53,360,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 250,379,042$
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Riverside County General Fund Obligations 947,052,082$ 5.799%54,919,550$
Riverside County Pensions Obligations 320,470,000 5.799%18,584,055
Riverside County Board of Education Certificate of Participation 1,835,000 5.799%106,412
Desert Sands Unified School District Certificates of Participation 61,360,000 34.638%21,253,877
City of Palm Desert Long-Term Liabilities (3)7,709,651 100.000%7,709,651
Coachella Valley Recreation and Park District Certificates of Participation 1,652,264 27.288%450,870
Coachella Valley County Water District, ID No. 71 Certificate of Participation 0 0.000%-
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT 103,024,415$
Less:Riverside County Supported Obligations 438,694 -
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT 102,585,721$
OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)590,876,112$ 0.273-100%290,950,687$
TOTAL CITY DIRECT DEBT (3)7,709,651$
TOTAL GROSS OVERLAPPING DEBT 638,144,493$
TOTAL NET OVERLAPPING DEBT 637,705,799$
GROSS COMBINED TOTAL DEBT 645,854,144$ (2)
NET COMBINED TOTAL DEBT 645,415,450$
(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 revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations that are not related to the City of Palm Desert.
(3) Includes special assessment debt with government commitment, limited obligation improvement bonds, lease revenue bonds, claims and judgements payable,
compensated absences payable and capital lease obligations.
Ratios to 2014-15 Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.91%
Total Direct Debt ($7,709,651)0.06%
Gross Combined Total Debt 4.93%
Net Combined Total Debt 4.93%
Ratios to Successor Agencies Redevelopment Incremental Valuation (8,323,244,851)$
Total Overlapping Tax Increment Debt 3.50%
Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department
210
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Value 13,091,608,236$
Debt Limit (15% of Assessed Value) (1)1,963,741,235
Debt Applicable to Limit:
General Obligation Bonds 1,489,000
Less: Amount set aside for
repayment of general obligation
debt -
Total Debt Applicable to Limit -
Legal debt margin 1,962,252,235$
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Debt Limit 1,582,592,579 1,783,572,979 1,971,408,152 2,076,172,690 1,999,731,410 1,969,825,360 1,884,624,932 1,811,620,824 1,869,699,132 1,963,741,235
Total Net debt applicable to limit - 2,783,000 2,748,000 2,702,000 1,719,000 1,658,000 1,624,000 1,589,000 1,526,000 1,489,000
Legal debt margin 1,582,592,579 1,780,789,979 1,968,660,152 2,073,470,690 1,998,012,410 1,968,167,360 1,883,000,932 1,810,031,824 1,868,173,132 1,962,252,235
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.16%0.14%0.13%0.09%0.08%0.09%0.09%0.08%0.08%
(1) Section 43605 of the California Government Code.
Source: California Municipal Statistic, Inc. San Francisco
Legal Debt Margin Calculation for Fiscal Year 2015
FISCAL YEAR
211
City of Palm Desert
Pledged-Revenue Coverage
Last Ten Fiscal Years
Fiscal
Year Collections Principal Interest Coverage Collections Principal Interest Coverage
2006 a 2,788,698 1,645,000 1,378,548 0.9223 24,065,285 5,485,000 12,409,968 1.345
2007 a 4,444,967 1,972,000 3,464,355 0.8176 28,675,094 7,704,000 16,434,841 1.188
2008 6,245,888 1,635,000 c 5,414,793 0.8860 41,978,187 10,610,000 21,402,246 1.311
2009 d 8,486,467 2,816,000 5,666,827 1.0004 33,095,785 12,610,000 20,043,623 1.013
2010 e 6,304,563 3,793,000 5,515,677 0.6773 33,292,785 14,145,000 19,516,455 0.989
2011 9,695,868 3,452,000 5,595,543 1.0717 39,400,572 22,240,000 18,767,205 0.961
2012 8,822,163 3,332,000 4,897,651 1.0720 32,941,958 g 15,290,000 17,651,958 1.000
2013 9,524,786 3,786,896 5,255,558 1.0533 33,473,418 g 16,315,000 17,158,418 1.000
2014 f 14,895,214 12,324,000 f 4,954,432 0.8621 38,444,447 g 23,650,000 14,794,447 1.000
2015 13,003,129 h,I 8,159,000 h 4,543,692 1.0237 32,294,255 g 18,295,000 13,999,255 1.000
a - The city issued $50.51 million of special assessment bonds in fiscal year end 2007, and an additional $17.915 in fiscal year end 2008 from the same district.
The RDA issued $284.37 million of debt of which $183.15 was new debt.
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 1997 91-1 Bonds was refunded in full on April 1, 2008, with Communities Facilities District no. 91-1 Improvement Special Tax Refunding Bonds
Additional principal on note 13 reflects the total principal paid along with the refunded portion.
d - 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.
e - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011
In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment was paid on September 2, 2010.
f - 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.
g- 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.
h- 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. The $2.155 million is included as collections.
I- 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 $2.5 Million is included as Special Assessment Collection.
Notes: Details regarding the outstanding debt can be found in the notes to the financial statements.
Special Assessment Bonds Tax Increment b
Debt Service Debt Service
212
Last Ten Calendar Years
Calendar Percentage Per Capita City Riverside Percentage County
Year City Increase Personal Personal Unemployment County Increase Unemployment
End Population (Decrease)Income CY a Income CY Rate b Population (Decrease)Rate b
2015 51,053 1.3%2,707,378,221$ 53,031$ 4.60%2,308,441 1.25%6.50%
2014 50,417 0.9%2,667,367,705$ 52,906$ 4.90%2,279,967 1.10%8.40%
2013 49,949 1.0%2,627,948,478$ 52,613$ 6.00%2,255,059 1.23%10.20%
2012 49,471 0.7%2,589,111,801$ 52,336$ 7.74%2,227,577 0.44%11.99%
2011 49,111 -5.7%2,550,849,065$ 51,940$ 8.67%2,217,778 3.66%14.44%
2010 52,067 1.1%2,513,151,788$ 48,268$ 8.8%2,139,535 1.51%14.65%
2009 51,509 1.2%2,476,011,613$ 48,069$ 6.8%2,107,653 0.93%11.46%
2008 50,907 2.3%2,439,420,309$ 47,919$ 4.1%2,088,322 6.91%8.6%
2007 49,752 0.4%2,132,710,348$ 42,867$ 3.6%2,031,625 4.01%6.0%
2006 49,539 0.5%2,097,434,084$ 42,339$ 2.9%1,953,330 4.07%5.0%
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 14/15 is based on annual information from State of California Employment Development Department
Labor Market Information Division (not seasonally adjusted)
Sources: State Department of Finance, U.S. Dept of Labor, State Employment Development Department
City of Palm Desert
Demographic & Economic Statistics
213
City of Palm Desert
Principal Employers
Current and Ten Years Ago
Employer Employees Rank
Percentage of
Total City
Employment 3
Employer Employees Rank
Percentage of
Total City
Employment
JW Marriot-Desert Springs
Resort & DS Villas 2,304 1 8.15%
Universal Protection Services 1,500 2 5.31%
Securitas-Security Service
USA 700 3 2.48%
Avida Caregivers-P.Desert 550 4 8.15%
Sunshine Landscape 500 5 1.77%
Bighorn Golf Club 250 6 0.88%
Costco 250 7 0.88%
Westin Desert Willow 248 8 0.88%
Timer Warner Cable 236 9 0.83%
Marriott Shadow Ridge 208 10 0.74%
Totals 6,746 Totals - 0%
(1) The information for 2004 is not available, tracking for this data began in 2006.
(2) As of June 30, 2015, information was not available before going to press.
(3) Percentage of Total City Employment data used was Calendar Year end 2012, information for current year was not available before going to press.
Sources: InfoUSA.com - Federal and State Government not included,
2013 2 2004 1
214
City of Palm Desert
Supplemental Miscellaneous Statistics
1-Jun June 30, 2015
City/ Municipal Government
Form of Government:Council - City Manager/Charter City
Date of Incorporation:November 26, 1973
Number of Employees:113 Full-time Employees
Size of City:25.5 Square Miles
Geographic Location:Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
Streets:170 paved street miles
Number of Business Licenses:8,855 active business licenses
Number of Hotels & Rooms: 15 hotels, 2,298 rooms
CONTRACT SERVICES:
Police Department Contract with Riverside County Sheriff - 74 positions plus 31 support staff
Fire Department Contract with Riverside County/State Fire 58 positions plus 6 Fire Prevention staff
Animal Control Riverside County Animal Services
Water & Sewer Coachella Valley Water District
Trash Collection Burrtec - Waste Management
Electric Southern California Edison
Gas Southern California Gas
Telephone Verizon
Airport Palm Springs International Airport
Public Education
Elementary School (grades K - 5) 4
Middle School (grades 6 - 8)1
High School (grades 9 - 12)1
Community College - College of the Desert 1
CSUSB - Palm Desert Campus 1
UCR - Palm Desert Graduate Center 1
Insurance Coverage
General Liability Coverage Calif. Joint Powers Insurance Authority $50 Million/Event
(Excludes Earthquake & Flood)Excess Coverage: from $2 Million up to $50 Million limit
Special Events Calif. Joint Powers Insurance Authority $1 Million
Worker's Compensation Calif. Joint Powers Insurance $10 Million
Property Insurance Calif. Joint Powers Insurance Based on Prop. Value
Health Insurance
Medical California PERS; choice of PPO, HMO, Kaiser, Blue Shield
Dental Delta Dental
Vision Vision Service Plan
Disability Insurance Disability - Standard Insurance Company
Life Standard Insurance Company
Retirement California PERS - Public Employees' Retirement System
Source: City of Palm Desert
215
City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program
Last Ten Fiscal Years
Function / Program 2015 2014 2013*2012* #2011*2010 2009 2008 2007 2006
General Government
City 34 34 33 26 31 31 49 49 51 53
Economic Dev & Housing # 13 13 12 17 24 25 19 19 19 19
Public Safety 26 25 24 24 25 26 35 35 35 28
Police & Fire (1)169 173 157 162 155 151 148 146 143 129
Public Works 40 40 38 40 47 49 53 52 44 49
Totals 282 285 264 271 284 284 318 315 310 289
(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, Cal-Fire, animal control, health services,
legal services and landscape maintenance.
* As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013.
# 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
216
City of Palm Desert
Operating Indicators by Function / Program
Last Ten Fiscal Years
Function / Program 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
General Government
Business License Inspections 24 33 196 477 515 473 617 489 447 420
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons)54,865 57,935 52,131 49,205 53,108 51,483 58,198 67,940 73,467 71,820
Recyclables Collected 24,611 26,424 24,862 23,588 22,867 20,591 22,155 23,798 24,089 24,359
Public Safety
Physical Arrests 1,946 1,348 986 1,012 1,134 1,342 1,446 1,550 1,430 543
Parking Violations 794 386 198 569 332 933 1,278 770 694 1,374
Traffic Violations 5,525 5,284 5,080 6,216 8,360 10,200 9,162 5,929 6,875 4,527
Emergency Responses-Fire Department 8,628 8,235 7,907 7,151 7,720 7,772 7,149 6,908 6,785 6,600
Fires Extinguished 88 106 104 101 107 104 119 154 241 928
Fire Inspections 2,989 2,552 3,048 5,235 4,651 4,825 8,248 4,267 5,934 1,845
Building Permits Issued 4,909 5,552 4,548 3,448 3,711 3,230 3,637 4,012 5,813 5,683
Building Inspections Conducted 24,057 24,830 19,107 14,749 14,069 14,080 18,040 26,401 33,215 29,925
Public Works
Street Resurfacing (miles) (3)8 34 23 60 5 8 13 17 9 11
Parks, recreation & culture
Athletic Field Permits Issued 4,430 6,548 2,635 3,682 6,050 6,281 6,149 5,949 4,510 2,967
Amphitheater / Pavilions Permits Issued 283 247 128 266 286 226 133 133 84 81
Community Center Admissions 53,426 50,204 53,062 69,240 30,298 59,986 55,954 112,540 97,339 92,083
Aquatic Center Admissions (2)64,103 43,545 48,663 45,909 4,329 - - - - -
(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services,
legal services and landscape maintenance.
(2) Aquatic Center operations began in June 2011, managed by the YMCA.
(3) New methods of street resurfacing have improved efficiency, therefore equaling more miles resurfaced.
Note: The City of Palm Desert chose to implement this schedule retroactively.
Governments are encouraged, but not required, to implement retroactively. Ultimately, this schedule will include ten years.
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.
217
City of Palm Desert
Capital Asset Statistics by Function / Program
Last Ten Fiscal Years
Function / Program 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
General Government
Contracted Services (1)
Collection trucks 30 30 36 36 51 51 54 69 61 71
Public Safety - Police & Fire
Police Stations 1 1 1 1 1 1 1 1 1 1
Police Sub Stations 1 1 1 0 0 2 2 2 2 2
Patrol Units-Cars 29 26 28 31 31 26 30 29 29 28
Patrol Units-Motorcycles 10 10 10 10 10 10 10 7 5 4
Fire Stations 3 3 3 3 3 3 3 3 3 3
Fire Trucks 4 plus 1 Rsrvd 4 plus 1 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd
Ambulance 4 plus 3 Rsrvd 4 plus 3 Rsrvd 4 plus 1 Rsrvd 4 plus 1 Rsrvd 3 plus 1 Spprt 3 plus 1 Spprt 3 plus 1 Spprt 3 plus 1 Spprt 3 plus 1 Spprt 3 plus 1 Spprt
Fire Prevention Pick-ups 3 3 3 3 3 3 3 3 3 3
Public Works
Streets (miles)170 170 170 174 159 159 159 159 154.11 154.11
Traffic Signals 98 98 98 98 97 99 99 99 87 85
Parks, recreation & culture
Acreage 201 201 201 201 201 201 212 200 200 200
Total Parks 13 13 13 13 13 13 14 13 13 11
Playgrounds 16 16 16 16 16 16 16 9 8 7
Baseball/softball diamonds 8 8 8 8 8 8 9 11 11 8
Soccer/football fields 9 9 9 9 9 9 9 7 7 5
Basketball Courts 11 11 11 11 11 11 11 9 9 6
Tennis Courts 10 10 10 10 10 10 10 10 10 8
Volleyball Courts 8 8 8 8 8 8 8 10 10 6
Community Centers 2 2 2 2 2 2 2 2 2 2
Skateboard Parks 2 2 2 2 2 2 2 2 2 1
Aquatic Center (2)1 1 1 1 1
Commercial Office Space
(Parkview Office Complex)
Leaseable Space (square feet)50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322
Occupancy Rate 90% 86% 88% 83%90% 97% 98% 100% 100% 100%
Number of Tenants by Type
Government (State, local regional)8 9 8 10 10 10 11 11 10 9
Non-Profit 3 4 4 5 7 7 5 7 6 6
Private 1 4 5 3 4 6 7 6 8 8
Square Footage lease by tenant
Government (State, local regional)30,907 31,921 31,321 32,021 32,696 34,617 34,617 34,402 33,298 32,457
Non-Profit 6,269 3,294 4,467 5,215 5,663 4,735 4,735 6,188 5,708 5,708
Private 8,025 8,025 8,513 4,310 7,350 10,212 10,212 9,732 11,316 10,836
Vacant 5,121 7,082 6,021 8,776 4,613 758 758 0 0 1,321
Municipal Golf Course
(Desert Willow Golf Resort)
Courses - Fire Cliff and Mountain View 2 2 2 2 2 2 2 2 2 2
Holes 36 36 36 36 36 36 36 36 36 36
Golf Carts 172 172 172 172 172 160 160 160 160 160
Clubhouse square footage 39,000 39,000 39,000 39,000 39,000 33,000 33,000 33,000 33,000 33,000
Rounds per Course
Fire Cliff 44,845 45,841 45,645 45,005 44,745 45,988 46,041 46,688 47,263 46,602
Mountain View 42,407 43,160 38,669 41,666 39,178 37,146 34,899 43,898 41,182 43,725
Total Annual Rounds 87,252 89,001 84,314 86,671 83,923 83,134 80,940 90,586 88,445 90,327
(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
Note: The City of Palm Desert chose to implement this schedule retroactively.
Governments are encouraged, but not required, to implement retroactively. Ultimately, this schedule will include ten years.
Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste
218
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 18 and note 19.
Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
219
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220
Redevelopment
Agency
Project Areas
COOK ST
MONTEREY AVE
FRED WARING DR
PORTOLA AVE
HOVLEY LN E
STATE HWY 111
STATE HWY 74
FRANK SINATRA DR
EL PASEO
GERALD FORD DR
WASHINGTON STELDORADO DR
WARNER TRL
HOVLEY LN W
OASIS CLUB DR
TAMARISK ROW DR
CALIFORNIA AVE
SAN PABLO AVEPARK VIEW DR
MESA VIEW DR
DEEP CANYON RD
MAGNESIA FALLS DR
DINAH SHORE DR
COOK ST
HAYSTACK RD
TOWN
CENTER
WAY
MONTEREY AVE
PORTOLA AVE
PORTOLA AVE
GRAPEVINE ST
SHADOW MOUNTAIN DR
FAIRWAY DR
HOVLEY LN EPORTOLA AVE
FRED WARING DR
COUNTRY CLUB DR
FRANK SINATRA DR
PORTOLA AVE
COUNTRY CLUB DR
MONTEREY AVE
COOK ST
INTERSTATE HWY 10
INTERSTATE HWY 10
Project Area No. 1Original1975
Project Area No. 1Added Territory1982
Project Area No. 31991
Project Area No. 21987
Project Area No. 41993
0 1 20.5
Miles
Project Area No. 1 - Original (1975)
Project Area No. 1 - Added Territory (1982)
Project Area No. 2 (1987)
Project Area No. 3 (1991)
Project Area No. 4 (1993)
City Limits
City of Palm Desert
July, 2004
THIS PAGE INTENTIONALLY LEFT BLANK
222
City of Palm Desert
Project Area Statistics
June 30, 2015
Description RDA 1
Original
RDA 1
Annex RDA 2 RDA 3 RDA 4
Date Project Area was Established July 16, 1975 November 25, 1981 July 15, 1987 July 17, 1991 July 19, 1993
Most Recent Amendment Date December 9, 2004 December 9, 2004 December 9, 2004 December 9, 2004 December 9, 2004
Effectiveness of Plan
(Project Duration)July 16, 2016 November 25, 2022 July 15, 2028 July 17, 2032 July 19, 2034
Repayment of Indebtedness July 16, 2026 November 25, 2032 July 15, 2038 July 17, 2042 July 19, 2044
Last Date to incur indebtedness Eliminated Eliminated Eliminated Eliminated Eliminated
Eminent Domain July 16, 1987 November 25, 1993 July 15, 1999 July 17, 2003 July 19, 2005
800,000,000$
1,667,866,324$
150,000,000$
312,724,936$
Types of Area in Project R, C, P R, C, P R, C, P, O R, I, C, P R, I, C, P
Acreage Size of Project Area 580 5,240 2,927 764 2,260
R = Residential, C= Commercial, P= Public Facilities, I= Industrial, O= Other
(1) Top figures are unadjusted limits and bottom figures are adjusted limits per Consumers Price Index set by the Bureau of Labor Statistics for RDA 2.
Source: Successor Agency to the Palm Desert Redevelopment Agency
(2) “Solely for the purposes of the payment of enforceable obligations defined by [Section 34171(d)(1)(A) to (G) and Section 34191.4(b) of the Dissolution Act],
and for no other purpose whatsoever, a successor agency is not subject to the limitations relating to time, number of tax dollars, or any other matters set forth in
[Health and Safety Code] Sections 33333.2, 33333.4, and 33333.6. Notwithstanding any other provision in this section, this subdivision shall not result in the
restoration or continuation of funding for projects whose contractual terms specified that project funding would cease once the limitations specified in any of
Section 33333.2, 33333.4, or 33333.6 were realized.”
Redevelopment Plan Limitations:
Tax Increment Limit (1,2)758,000,000$ 500,000,000$ 360,000,000$ 600,000,000$
Bonded Debt Limits (1)none 200,000,000$ 100,000,000$ 135,000,000$
223
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2015
DESCRIPTION $22,070,000
Tax Allocation Bonds
$19,000,000
Tax Allocation Bonds
$24,945,000
Tax Allocation Bonds
$62,320,000
Tax Allocation
Revenue
$32,600,000
Tax Allocation
Revenue
Bond
Years 28 27 21 24 11
Bond Issue Date 03/13/02 08/05/03 06/24/04 07/06/06 01/09/07
Final Maturity Date 04/01/30 04/01/30 04/01/25 04/01/30 04/01/18
Highest Interest Rate 5.100%5.000%5.000%5.820%5.000%
Bond Issue Amount 22,070,000$ 19,000,000$ 24,945,000$ 62,320,000$ 32,600,000$
Outstanding Bond Amount 22,070,000$ 12,660,000$ 14,050,000$ 40,855,000$ 10,640,000$
Call Premium 0 - 2.00%0.00%0.00%0.00%0.00%
Bond Insurer MBIA MBIA AMBAC MBIA MBIA
Reserve Requirement (1)2,804,344 950,000 2,430,750 13,117,662 13,116,979
Reserve Balance (1)(1) (1) (1) (1) (1)
Called Bonds -$ -$ -$ -$ -$
Principle due 15/16 - - 1,280,000 3,075,000 3,390,000
Interest Due 15/16 1,114,665 633,000 676,100 2,093,410 532,000
Arbritage Yield Rate 5.2939%4.8571%4.7961%4.7182%3.8374%
Arbritage-Amount Owed - - - - -
Arbritage Five Year Due Date:04/13/17 08/05/18 06/24/19 07/06/16 01/09/17
DESCRIPTION
$17,310,000
Tax Allocation Revenue
Bonds
$15,745,000
Tax Allocation Revenue
Bonds
$67,618,213
Tax Allocation Revenue
Bonds
$4,745,000
Tax Allocation Bonds
$15,059,526
Tax Allocation
Revenue
Years 20 30 30 30 35
Bond Issue Date 07/17/02 03/26/03 07/25/06 08/05/03 07/25/06
Final Maturity Date 08/01/22 08/01/33 08/01/36 04/01/33 04/01/41
Highest Interest Rate 5.000%5.00%6.10%5.13%6.10%
Bond Issue Amount 17,310,000$ 15,745,000$ 67,618,213$ 4,745,000$ 15,059,526$
Outstanding Bond Amount 8,680,000$ 15,745,000$ 54,744,520$ 3,450,000$ 15,660,598$
Call Premium 0 - 2.00%1 - 2.00%0.00%2.00%0.00%
Bond Insurer MBIA MBIA AMBAC MBIA MBIA
Reserve Requirement (1)1,324,750 769,006 5,309,825 297,953 1,034,250
Reserve Balance (1)(1) (1) (1) (1) (1)
Called Bonds -$ -$ -$ -$ -$
Principle due 15/16 910,000 - 1,108,312 125,000 309,731
Interest Due 15/16 397,388 769,006 2,059,088 168,473 585,687
Arbritage Yield Rate 4.7043%4.9502%5.2580%4.9358%5.3626%
Arbritage-Amount Owed - - - - -
Arbritage Five Year Due Date:07/17/17 03/26/18 07/25/16 08/05/18 07/25/16
DESCRIPTION
$11,020,000
Tax Allocation Revenue
Bonds
$15,695,000
Tax Allocation
Revenue Bonds
$19,243,089
Tax Allocation
Revenue
$12,100,000
Tax Allocation Revenue
Bonds
$86,155,000
Tax Allocation
Revenue
Years 30 30 28 30 20
Bond Issue Date 03/01/98 11/28/01 07/25/06 09/05/02 02/07/07
Final Maturity Date 10/01/28 10/01/31 10/01/34 10/01/31 10/01/27
Highest Interest Rate 5.00%4.80%5.56%4.90%5.00%
Bond Issue Amount 11,020,000$ 15,695,000$ 19,273,089$ 12,100,000$ 86,155,000$
Outstanding Bond Amount 7,445,000$ 12,165,000$ 18,099,223$ 8,800,000$ 55,940,000$
Call Premium 0 - 2.00%0 - 2.00%0.00%1 - 2.00%0.00%
Bond Insurer MBIA MBIA MBIA MBIA MBIA
Reserve Requirement (1)768,020 482,890 3,740,843 767,625 7,887,224
Reserve Balance (1)(1) (1) (1) (1) (1)
Called Bonds -$ -$ -$ -$ -$
Principle due 15/16 375,000 390,000 672,930 345,000 5,785,000
Interest Due 15/16 376,375 567,323 543,641 419,004 2,531,313
Arbritage Yield Rate 5.2271%4.9464%5.1111%4.8290%4.1830%
Arbritage-Amount Owed - - - - -
Arbritage Five Year Due Date:10/01/17 11/28/16 07/25/16 09/05/17 02/07/17
(1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero.
Source: City of Palm Desert and Successor Agency to the Palm Desert Redevelopment Agency
PROJECT AREA #4
PROJECT AREA #3
PROJECT AREA #1
PROJECT AREA #2
HOUSING FUND
224
City of Palm Desert
FY 2014/2015
Breakdown of Basic 1% Property Tax Levy Rates
Redevelopment Project Areas
Rate
Taxing Agency PA 1 Original PA 1 Annex PA 2 PA 3 PA 4
County General 28.40332151%28.32683755%26.04201100%25.1871779%21.91005870%
County Library 2.75012086%2.89131320%2.95876897%2.8161111%2.82831406%
County Fire 5.92018507%6.22413338%6.36934240%6.0622453%6.08851192%
City of Indian Wells Annex 0.00000000%0.00000614%0.00000000%0.00000000%0.00000000%
Supervisor Road District 4 0.00000000%-0.00027184%0.00000000%0.00000000%0.00000000%
City of Palm Desert 0.00000000%2.20753125%5.58790590%4.71489413%8.70806165%
Rancho Mirage Library 0.00000000%0.01349827%0.00000000%0.00000000%0.00000000%
Rancho Mirage Fire Asmt.0.00000000%0.02905772%0.00000000%0.00000000%0.00000000%
Desert Sands Unified School District 36.51206707%37.00881119%21.77605687%37.38821897%37.55020485%
Palm Springs Unified School District 0.00000000%0.00000000%12.74456802%0.00000000%0.00000000%
Desert Community College 7.58707449%8.04518231%8.16269710%7.76913345%7.80279603%
County Superintendent of Schools 4.12775781%4.37699205%4.44092575%4.22680772%4.24512296%
Riverside County Reg Park & Open
Space 0.42962931%0.42824932%0.39392943%0.38099333%0.44186405%
Coachella Valley Public Cemetary 0.34265269%0.30441522%0.20436005%0.35087138%0.35239443%
Palm Springs Public Cemetary 0.00000000%0.000271068 0.07557453%0.00000000%0.00000000%
Desert Hospital 2.01282095%1.24640173%1.75005305%1.04484703%0.00000000%
Coachella Valley Mosquito & Vector
Control 1.38068159%1.46404681%1.48543170%1.41381024%1.41993740%
Coachella Valley Recreation & Park 2.08823701%1.85520873%1.24543927%2.13834515%2.14761069%
Coachella Valley Water District 2.75855284%2.92571752%2.96784048%2.82474586%2.87407353%
Coachella Valley Resource Cons.0.00000000%0.02168333%0.03804847%0.03070628%0.03636989%
Coachella Valley Imp District 80 2.19479287%0.99411680%0.00000000%0.07519114%0.00328433%
Coachella Valley Water District Storm
Water Unit 3.49210593%1.60996250%3.75704702%3.57590101%3.59139552%
ERAF RDV 0.00000000%0.00000000%0.00000000%0.00000000%0.00000000%
General Purpose Basic 1% Rate 100.00000000%100.00000000%100.00000000%100.00000000%100.00000000%
Source: Successor Agency to the Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
225
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Original
Last Ten Fiscal Years
FY 2015 2014 2013 2012 2011
Secured: (1)
Land 252,708,144$ 248,856,920$ 249,394,404$ 244,450,814$ 246,861,736$
Improvements 629,461,646 616,377,829 627,764,488 626,574,093 610,067,877
Personal Property 3,118,529 4,011,017 3,908,602 2,933,226 3,127,559
Penalty 0 0 0 0 0
Less Other Exempt (3,686,754) (2,880,165) (1,999,569) (1,960,491) (895,957)
Less Home Owner Value (49,000) (42,000) (42,000) (56,000) (61,600)
Less B Inv. Value 0 0
Total Net Assessed Taxable Secured Value 881,552,565 866,323,601 879,025,925 871,941,642 859,099,615
Unsecured:
Land 1,386 1,386 99 99 99
Improvements 62,710,661 65,066,506 63,729,112 60,147,367 57,617,429
Personal Property 47,247,286 56,574,308 43,573,580 48,331,227 48,607,315
Penalty 0 0 0 0 0
Less Other Exempt (350,545) (210,855) (223,222) (64,730) (63,954)
Total Net Assessed Taxable Unsecured Value 109,608,788 121,431,345 107,079,569 108,413,963 106,160,889
Total Net Assessed Taxable Value 991,161,353$ 987,754,946$ 986,105,494$ 980,355,605$ 965,260,504$
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 249,715,896$ 241,759,729$ 233,208,647$ 216,759,847$ 209,051,600$
Improvements 613,769,221 610,061,698 584,395,005 552,604,613 515,092,610
Personal Property 3,399,575 5,000,717 4,856,393 6,825,265 7,420,696
Penalty 0 0 0 0 0
Less Other Exempt (898,089) (455,200) (1,570,949) (760,295) (610,338)
Less Home Owner Value (49,000) (70,000) (63,000) (70,000) (70,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 865,937,603 856,296,944 820,826,096 775,359,430 730,884,568
Unsecured:
Land 99 1,267 1,245 1,220 396
Improvements 63,627,182 69,008,584 60,185,535 56,536,963 48,736,306
Personal Property 53,892,307 60,792,341 57,684,012 57,404,440 47,480,402
Penalty 0 0 0 0 0
Less Other Exempt (68,471) (66,749) (56,785) (32,652) (32,573)
Total Net Assessed Taxable Unsecured Value 117,451,117 129,735,443 117,814,007 113,909,971 96,184,531
Total Net Assessed Taxable Value 983,388,720$ 986,032,387$ 938,640,103$ 889,269,401$ 827,069,099$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
226
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 1 - Original
2015 versus 2014
FY 2015 2014 % Change
Secured: (1)
Land 252,708,144$ 248,856,920$ 1.5%
Improvements 629,461,646$ 616,377,829$ 2.1%
Personal Property 3,118,529$ 4,011,017$ -22.3%
Penalty 0$ 0$ 0.0%
Less Other Exempt (3,686,754)$ (2,880,165)$ 28.0%
Less Home Owner Value (49,000)$ (42,000)$ 16.7%
Total Net Assessed Taxable Secured Value 881,552,565$ 866,323,601$ 1.8%
Unsecured:
Land 1,386$ 1,386$ 0.0%
Improvements 62,710,661$ 65,066,506$ -3.6%
Personal Property 47,247,286$ 56,574,308$ -16.5%
Penalty 0$ 0$ 0.0%
Less Other Exempt (350,545)$ (210,855)$ 66.2%
Total Net Assessed Taxable Unsecured Value 109,608,788$ 121,431,345$ -9.7%
Total Net Assessed Taxable Value 991,161,353$ 987,754,946$ 0.3%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
227
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Years
FY 2015 2014 2013 2012 2011
Secured: (1)
Land 1,604,125,337$ 1,541,217,133$ 1,498,607,642$ 1,485,119,173$ 1,520,035,284$
Improvements 3,325,472,649 3,162,274,409 2,993,556,770 2,972,294,294 3,064,294,006
Personal Property 7,076,746 2,716,205 2,686,088 2,902,053 3,304,016
Penalty 0 0 0 0 0
Less Other Exempt (102,129,288) (103,135,553) (93,807,367) (92,647,477) (89,778,462)
Less Home Owner Value (26,242,138) (26,742,256) (27,231,015) (28,318,713) (29,088,641)
Less B Inv. Value
Total Net Assessed Taxable Secured Value 4,808,303,306 4,576,329,938 4,373,812,118 4,339,349,330 4,468,766,203
Unsecured:
Land 171,444 0 266,702 547 262,619
Improvements 29,097,463 32,637,340 20,144,944 30,038,023 31,662,152
Personal Property 46,347,614 53,241,720 50,154,674 56,942,231 64,035,933
Penalty 0 0 0 0 0
Less Other Exempt (5,274,099) (8,199,594) (8,262,749) (4,756,840) (3,119,713)
Total Net Assessed Taxable Unsecured Value 70,342,422 77,679,466 62,303,571 82,223,961 92,840,991
Total Net Assessed Taxable Value 4,878,645,728$ 4,654,009,404$ 4,436,115,689$ 4,421,573,291$ 4,561,607,194$
2010 2009 2008 2007 2006
Secured: (1)
Land 1,556,322,273$ 1,646,837,956$ 1,548,363,317$ 1,404,883,142$ 1,221,817,819$
Improvements 3,138,650,280 3,216,329,372 3,098,549,660 2,848,708,294 2,548,978,946
Personal Property 2,462,676 4,295,752 4,850,231 5,159,912 5,081,062
Penalty 0 0 0 0 0
Less Other Exempt (86,825,212) (86,439,305) (84,042,297) (71,117,424) (75,212,626)
Less Home Owner Value (29,699,188) (30,414,878) (30,606,235) (30,941,142) (30,902,546)
Less B Inv. Value 0 0 0 0
Total Net Assessed Taxable Secured Value 4,580,910,829 4,750,608,897 4,537,114,676 4,156,692,782 3,669,762,655
Unsecured:
Land 623 56,456 714 781 0
Improvements 33,207,261 37,501,662 36,438,840 38,277,529 33,710,842
Personal Property 59,544,019 67,485,677 62,971,014 57,326,123 51,779,049
Penalty 0 0 0 0 0
Less Other Exempt (7,874,926) (11,366,822) (7,990,591) (3,164,410) (6,306,859)
Total Net Assessed Taxable Unsecured Value 84,876,977 93,676,973 91,419,977 92,440,023 79,183,032
Total Net Assessed Taxable Value 4,665,787,806$ 4,844,285,870$ 4,628,534,653$ 4,249,132,805$ 3,748,945,687$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
228
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 1 - Amended
2015 versus 2014
FY 2015 2014 % Change
Secured: (1)
Land 1,604,125,337$ 1,541,217,133$ 4.1%
Improvements 3,325,472,649$ 3,162,274,409$ 5.2%
Personal Property 7,076,746$ 2,716,205$ 160.5%
Penalty 0$ 0$ 0.0%
Less Other Exempt (102,129,288)$ (103,135,553)$ -1.0%
Less Home Owner Value (26,242,138)$ (26,742,256)$ -1.9%
Total Net Assessed Taxable Secured Value 4,808,303,306$ 4,576,329,938$ 5.1%
Unsecured:
Land 171,444$ 0$ 100.0%
Improvements 29,097,463$ 32,637,340$ -10.8%
Personal Property 46,347,614$ 53,241,720$ -12.9%
Penalty 0$ 0$ 0.0%
Less Other Exempt (5,274,099)$ (8,199,594)$ -35.7%
Total Net Assessed Taxable Unsecured Value 70,342,422$ 77,679,466$ -9.4%
Total Net Assessed Taxable Value 4,878,645,728$ 4,654,009,404$ 4.8%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
229
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2015 2014 2013 2012 2011
Secured: (1)
Land 438,787,533$ 395,513,442$ 403,779,647$ 404,539,856$ 516,275,626$
Improvements 1,101,270,082 999,188,490 1,012,458,943 1,031,878,423 1,075,692,278
Personal Property 1,804,453 1,753,772 2,127,081 580,087 2,702,362
Penalty (2)0 0 0 0 0
Less Other Exempt (10,337,993) (4,985,384) (11,014,472) (11,276,866) (10,401,200)
Less Home Owner Value (3,946,600) (3,733,800) (3,662,400) (3,697,400) (3,750,600)
Less B Inv. Value
Total Net Assessed Taxable Secured Value 1,527,577,475 1,387,736,520 1,403,688,799 1,422,024,100 1,580,518,466
Unsecured:
Land 0 7,777 4,719 0
Improvements 14,688,768 15,098,894 11,308,677 18,513,172 9,474,802
Personal Property 27,758,561 28,706,626 26,904,564 38,744,588 28,314,673
Other Exemptions (20,400) (20,639) (20,089) 0 0
Total Net Assessed Taxable Unsecured Value 42,426,929 43,784,881 38,200,929 57,262,479 37,789,475
Total Net Assessed Taxable Value 1,570,004,404$ 1,431,521,401$ 1,441,889,728$ 1,479,286,579$ 1,618,307,941$
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 566,073,734$ 633,335,921$ 587,058,715$ 521,340,003$ 414,088,670$
Improvements 1,268,066,132 1,367,855,491 1,276,315,674 1,137,488,315 1,043,768,419
Personal Property 670,711 866,004 590,836 6,592,802 6,930,907
Penalty (2)0 0 0 0 0
Less Other Exempt (8,919,361) (7,964,045) (9,550,463) (7,655,384) (3,292,024)
Less Home Owner Value (3,673,600) (3,724,000) (3,735,200) (3,752,000) (3,752,000)
Less B Inv. Value 0 0 0 0
Total Net Assessed Taxable Secured Value 1,822,217,616 1,990,369,371 1,850,679,562 1,654,013,736 1,457,743,972
Unsecured:
Land 0 2,542 0 0 0
Improvements 14,071,375 18,201,638 5,343,621 6,215,099 4,187,472
Personal Property 34,842,003 29,865,376 20,391,298 19,806,418 12,129,847
Penalty 0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 48,913,378 48,069,556 25,734,919 26,021,517 16,317,319
Total Net Assessed Taxable Value 1,871,130,994$ 2,038,438,927$ 1,876,414,481$ 1,680,035,253$ 1,474,061,291$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
230
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 2
2015 versus 2014
FY 2015 2014 % Change
Secured: (1)
Land 438,787,533$ 395,513,442$ 10.9%
Improvements 1,101,270,082$ 999,188,490$ 10.2%
Personal Property 1,804,453$ 1,753,772$ 2.9%
Penalty 0$ 0$ 0.0%
Less Other Exempt (10,337,993)$ (4,985,384)$ 107.4%
Less Home Owner Value (3,946,600)$ (3,733,800)$ 5.7%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,527,577,475 1,387,736,520 10.1%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 14,688,768$ 15,098,894$ -2.7%
Personal Property 27,758,561$ 28,706,626$ -3.3%
Other Exemptions (20,400)$ (20,639)$ -1.2%
Total Net Assessed Taxable Unsecured Value 42,426,929 43,784,881 -3.1%
Total Net Assessed Taxable Value 1,570,004,404$ 1,431,521,401$ 9.7%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
231
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 3
Last Ten Fiscal Years
FY 2015 2014 2013 2012 2011
Secured: (1)
Land 123,846,318$ 121,112,327$ 117,624,411$ 119,303,599$ 123,088,378$
Improvements 388,823,244 376,571,063 367,800,719 379,322,839 392,221,646
Personal Property 3,670,712 3,866,036 3,626,212 3,461,707 3,523,812
Penalty 0 0 0 0 0
Less Other Exempt (23,209,128) (22,949,942) (22,250,710) (19,890,920) (20,749,611)
Less Home Owner Value (1,941,800) (2,009,000) (2,041,200) (2,170,000) (2,303,000)
Total Net Assessed Taxable Secured Value 491,189,346 476,590,484 464,759,432 480,027,225 495,781,225
Unsecured:
Land 0 0 0 0 0
Improvements 7,676,597 15,830,833 7,241,041 7,844,983 8,768,007
Personal Property 23,241,633 27,963,384 31,467,777 45,527,343 70,315,349
Penalty 0 0 0 0 0
Less Other Exempt (423,511) (683,569) (721,058) (753,726) (419,433)
Total Net Assessed Taxable Unsecured Value 30,494,719 43,110,648 37,987,760 52,618,600 78,663,923
Total Net Assessed Taxable Value 521,684,065$ 519,701,132$ 502,747,192$ 532,645,825$ 574,445,148$
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 125,790,120$ 134,147,217$ 119,422,958$ 114,253,170$ 103,496,559$
Improvements 424,745,043 418,977,238 375,240,496 333,347,161 298,197,384
Personal Property 5,011,721 3,308,454 3,629,771 3,893,071 3,890,560
Penalty 0 0 0 0 0
Less Other Exempt (20,847,823) (20,782,445) (19,251,214) (19,311,510) (20,251,190)
Less Home Owner Value (2,371,600) (2,331,000) (2,203,600) (2,206,400) (2,046,800)
Total Net Assessed Taxable Secured Value 532,327,461 533,319,464 476,838,411 429,975,492 383,286,513
Unsecured:
Land 0 0 0 0 370
Improvements 14,220,568 18,796,505 17,795,034 13,109,332 12,424,085
Personal Property 54,874,036 45,622,109 45,542,975 44,899,884 38,091,911
Penalty 0 0 0 0 0
Less Other Exempt (534,431) (549,632) (402,531) (437,726) (434,582)
Total Net Assessed Taxable Unsecured Value 68,560,173 63,868,982 62,935,478 57,571,490 50,081,784
Total Net Assessed Taxable Value 600,887,634$ 597,188,446$ 539,773,889$ 487,546,982$ 433,368,297$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
232
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 3
2015 versus 2014
FY 2015 2014 % Change
Secured: (1)
Land 123,846,318$ 121,112,327$ 2.3%
Improvements 388,823,244$ 376,571,063$ 3.3%
Personal Property 3,670,712$ 3,866,036$ -5.1%
Penalty 0$ 0$ 0.0%
Less Other Exempt (23,209,128)$ (22,949,942)$ 1.1%
Less Home Owner Value (1,941,800)$ (2,009,000)$ -3.3%
Total Net Assessed Taxable Secured Value 491,189,346 476,590,484 3.1%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 7,676,597$ 15,830,833$ -51.5%
Personal Property 23,241,633$ 27,963,384$ -16.9%
Penalty 0$ 0$ 0.0%
Less Other Exempt (423,511)$ (683,569)$ -38.0%
Total Net Assessed Taxable Unsecured Value 30,494,719 43,110,648 -29.3%
Total Net Assessed Taxable Value 521,684,065$ 519,701,132$ 0.4%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
233
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY 2015 2014 2013 2012 2011
Secured: (1)
Land 560,713,113$ 527,295,299$ 505,988,799$ 506,713,567$ 535,851,149$
Improvements 1,296,687,161 1,223,955,322 1,179,416,036 1,199,159,939 1,239,148,331
Personal Property 3,468,686 3,546,358 3,507,587 3,132,280 3,145,190
Penalty (2)0 0 0 0 0
Less Other Exempt (4,172,455) (3,893,679) (3,542,096) (3,098,791) (3,156,884)
Less Home Owner Value (13,126,400) (13,491,800) (13,911,800) (14,345,800) (14,840,000)
Less B Inv. Value
Total Net Assessed Taxable Secured Value 1,843,570,105 1,737,411,500 1,671,458,526 1,691,561,195 1,760,147,786
Unsecured:
Land 0 0 26,524 34,446 0
Improvements 948,724 1,037,216 803,594 948,280 971,923
Personal Property 4,024,300 4,670,967 2,594,779 2,347,964 3,219,710
Penalty (2)0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 4,973,024 5,708,183 3,424,897 3,330,690 4,191,633
Total Net Assessed Taxable Value 1,848,543,129$ 1,743,119,683$ 1,674,883,423$ 1,694,891,885$ 1,764,339,419$
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 571,851,472$ 612,342,380$ 589,549,492$ 538,079,392$ 480,264,736$
Improvements 1,299,807,730 1,338,202,248 1,340,102,309 1,253,230,590 1,145,343,698
Personal Property 3,272,357 3,221,691 4,306,781 895,558 1,037,306
Penalty (2)0 0 0 0 0
Less Other Exempt (3,073,279) (3,034,308) (3,046,149) (2,814,993) (2,988,924)
Less Home Owner Value (14,991,200) (15,250,200) (15,577,800) (15,797,600) (15,874,600)
Less B Inv. Value
Total Net Assessed Taxable Secured Value 1,856,867,080 1,935,481,811 1,915,334,633 1,773,592,947 1,607,782,216
Unsecured:
Land 0 0 0 0 0
Improvements 1,383,594 1,404,311 1,372,786 1,581,231 1,606,970
Personal Property 6,284,727 6,296,641 6,712,170 7,973,923 10,276,814
Penalty (2)0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 7,668,321 7,700,952 8,084,956 9,555,154 11,883,784
Total Net Assessed Taxable Value 1,864,535,401$ 1,943,182,763$ 1,923,419,589$ 1,783,148,101$ 1,619,666,000$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
234
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 4
2015 versus 2014
FY 2015 2014 % Change
Secured: (1)
Land 560,713,113$ 527,295,299$ 6.3%
Improvements 1,296,687,161$ 1,223,955,322$ 5.9%
Personal Property 3,468,686$ 3,546,358$ -2.2%
Penalty 0$ 0$ 0.0%
Less Other Exempt (4,172,455)$ (3,893,679)$ 7.2%
Less Home Owner Value (13,126,400)$ (13,491,800)$ -2.7%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,843,570,105 1,737,411,500 6.1%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 948,724$ 1,037,216$ -8.5%
Personal Property 4,024,300$ 4,670,967$ -13.8%
Penalty 0$ 0$ 0.0%
Total Net Assessed Taxable Unsecured Value 4,973,024 5,708,183 -12.9%
Total Net Assessed Taxable Value 1,848,543,129$ 1,743,119,683$ 6.0%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
235
City of Palm Desert
Historical Tax Increment-
Redevelopment Property Tax Trust Fund Summary
All Project Areas
Project Area No. 1 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15
Gross Tax Increment 50,024,389 48,562,361 48,767,884 49,849,977 53,437,088
Less:
Housing Set-Aside*10,004,878 9,712,472 9,753,577 9,969,995 10,687,418
SB 2557 517,900 610,071 714,717 673,261 686,944
Gross Pass-Throughs 19,677,610 18,843,301 18,642,892 20,111,377 21,241,903
Net Tax Increment 19,824,001 19,396,517 19,656,698 19,095,344 20,820,824
RPTTF Amount Deposited n/a 29,927,559 26,848,203 25,090,381 26,530,801
Project Area No. 2 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15
Gross Tax Increment 15,435,043 14,335,941 13,700,701 13,330,978 15,232,096
Less:
Housing Set-Aside*3,087,009 2,867,188 2,740,140 2,666,196 3,046,419
SB 2557 160,467 176,347 200,429 179,214 192,900
Gross Pass-Throughs 5,806,404 5,381,108 4,983,714 4,967,602 5,665,961
Net Tax Increment 6,381,163 5,911,298 5,776,418 5,517,967 6,326,816
RPTTF Amount Deposited n/a 7,503,009 7,568,241 7,017,531 5,441,721
Project Area No. 3 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15
Gross Tax Increment 4,294,063 3,847,543 3,575,242 3,721,868 3,754,999
Less:
Housing Set-Aside*858,813 769,509 715,048 744,374 751,000
SB 2557 44,962 49,034 52,858 49,871 48,901
Gross Pass-Throughs 1,983,494 1,671,676 1,277,864 1,377,700 1,371,786
Net Tax Increment 1,406,795 1,357,325 1,529,472 1,549,923 1,583,312
RPTTF Amount Deposited n/a 2,088,587 1,491,532 1,357,678 1,237,930
Project Area No. 4 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15
Gross Tax Increment 12,073,042 11,342,081 11,153,422 11,694,192 13,057,891
Less:
Housing Set-Aside*2,414,608 2,268,416 2,230,684 2,338,838 2,611,578
SB 2557 125,648 143,002 164,046 156,818 166,634
Gross Pass-Throughs 6,744,173 6,730,420 7,530,089 7,901,830 8,381,422
Net Tax Increment 2,788,612 2,200,243 1,228,603 1,296,706 1,898,257
RPTTF Amount Deposited n/a 3,910,755 4,064,105 3,675,440 3,071,966
*For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution.
236