HomeMy WebLinkAboutComplete 2013 CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2013
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
OFFICE ASSISTANT II
Sylvia Carrasco
SENIOR FINANCIAL ANALYST
Anthony Hernandez
SENIOR OFFICE ASSISTANT
Claudia Jaime
i
CITY OF PALM DESERT
TABLE OF CONTENTS
JUNE 30, 2013
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
ii
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2013
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 - Schedules of Funding Progress:
Cal PERS Defined Benefit Plan 121
Other Post-Employment Benefit Plan 121
Schedule 2 - Budgetary Comparison Schedule - General Fund 123
Schedule 3 - Budgetary Comparison Schedule - Prop A Fire Tax
Special Revenue Fund 124
Note to Required Supplementary Information 125
SUPPLEMENTARY SCHEDULES
General Fund: 127
Schedule 4 - Budgetary Comparison Schedule by Department - General Fund 128
Other Governmental Funds - Combining Statements: 133
Schedule 5 - Combining Balance Sheet - Other Governmental Funds 134
Schedule 6 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Governmental Funds 135
iii
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2013
Page
Number
SUPPLEMENTARY SCHEDULES (CONTINUED)
Other Governmental Funds - Other Special Revenue: 137
Schedule 7 - Combining Balance Sheet - Other Special Revenue Funds 140
Schedule 8 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Special Revenue Funds 144
Schedule 9 - Schedules of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - Special Revenue Funds:
A. Traffic Safety 148
B. Gas Tax 149
C. Housing Mitigation Fees 150
D. Community Development Block Grant 151
E. Public Safety Police Grants 152
F. El Paseo Assessment District 153
G. Landscape and Lighting Districts No. 1-17 154
Other Governmental Funds - Other Debt Service: 155
Schedule 10 - Combining Balance Sheet - Other Debt Service Fund 156
Schedule 11 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Debt Service Fund 157
Other Governmental Funds - Other Capital Projects: 159
Schedule 12 - Combining Balance Sheet - Other Capital Projects Funds 160
Schedule 13 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Capital Projects Funds 164
Agency Funds: 169
Schedule 14 - Combining Statement of Assets and Liabilities - All Agency Funds 170
Schedule 15 - Combining Statement of Changes in Assets and
Liabilities - All Agency Funds 171
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2013
Page
Number
STATISTICAL SECTION
Description of Statistical Section 173
Financial Trends
Net Position by Component 174
Changes in Net Position 175
Fund Balances of Governmental Funds 177
Changes in Fund Balances of Governmental Funds 178
Graphs - Changes in Fund Balances of Governmental Funds 179
Supplemental Historical General Fund Revenues 180
Supplemental Graph - Historical General Fund Revenues 181
Supplemental Historical General Fund Expenditures 182
Supplemental Graph - Historical General Fund Expenditures 183
Supplemental Historical General Revenue and Expenditures Per Capita 185
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 186
Historical Net Assessed Taxable Values Citywide and
Graph - Assessed Valuation Growth 187
Supplemental FY 2013 and 2012 Breakdown of Basic 1% Property
Tax Rate Not in Redevelopment Project Area 188
Property Tax Rates Direct and Overlapping Property Tax Rates 189
Principal Property Taxpayers 190
Property Tax Levies and Collections 191
Supplemental Top 25 Sales Tax Generators and
Graph - Historical Sales Tax Trends 192
Supplemental Taxable Sales by Category 193
Supplemental Principal Sales Tax Remitters 194
Debt Capacity
Ratios of Outstanding Debt by Type 195
Ratios of General Bonded Debt Outstanding 196
Supplemental Special Assessment Information 197
Direct and Overlapping Government Activities Debt 198
Legal Debt Margin Information 199
Pledged-Revenue Coverage 200
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2013
Page
Number
STATISTICAL SECTION
(CONTINUED)
Demographic and Economic Information
Demographic and Economic Statistics 201
Principal Employers 202
Supplemental Miscellaneous Statistics 203
Operating Information
Full-time Equivalent City Government Employees by Function/Program 204
Operating Indicators by Function/Program 205
Capital Asset Statistics by Function/Program 206
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION
Redevelopment Agency Project Areas Map 209
Project Area Statistics 210
Tax Allocation Bond Issue Information 211
FY 2012/2013 Breakdown of Basic 1% Property Tax Levy Rates 212
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Original 214
Change in Taxable Values:
Redevelopment Project Area No. 1 - Original 215
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Amended 216
Change in Taxable Values:
Redevelopment Project Area No. 1 - Amended 217
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 2 218
Change in Taxable Values:
Redevelopment Project Area No. 2 219
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 3 220
Change in Taxable Values:
Redevelopment Project Area No. 3 221
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 4 222
Change in Taxable Values:
Redevelopment Project Area No. 4 223
vi
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xii
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xiii
CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2013
City Council - Manager Form of Government
CITY COUNCIL
JAN C. HARNIK
Mayor
JEAN M. BENSON
Mayor Pro-Tempore
ROBERT A. SPIEGEL VAN G. TANNER SUSAN MARIE WEBER
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
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2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
- 1 -
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, 2013, 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.
- 2 -
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, 2013, and the 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 Matters
As discussed in Note 1d to the basic financial statements, the City incorporated deferred outflows of
resources and deferred inflows of resources into the definitions of the required components of the
residual measure of net position due to the adoption of Governmental Accounting Standards Board’s
Statement No. 63, “Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position”. The adoption of this standard also provides a new statement of net
position format to report all assets, deferred outflows of resources, liabilities, deferred inflows of
resources, and net position. Our opinion is not modified with respect to this matter.
As discussed in Note 1d to the basic financial statements, the City has changed its method for
accounting and reporting certain items previously reported as assets or liabilities during fiscal
year 2012-2013 due to the early adoption of Governmental Accounting Standards Board’s Statement
No. 65, “Items Previously Reported as Assets and Liabilities”. The adoption of this standard required
retrospective application resulting in a $8,684,179 reduction of previously reported net position of the
Successor Agency to the Palm Desert Redevelopment Agency Private-Purpose Trust Fund. Our
opinion is not modified with respect to this matter.
Other Matters:
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the schedules of funding progress and budgetary comparison
schedules, as listed in the 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 management’s discussion and
analysis and the schedules of funding progress 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 management’s discussion and analysis and the schedules of funding progress
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance on them. The budgetary comparison schedules have 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 of the City 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 budgetary comparison
schedules are fairly stated in all material respects in relation to the basic financial statements taken as a
whole.
- 3 -
Other Matters (Continued):
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.
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 4, 2013, 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 4, 2013
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THIS PAGE INTENTIONALLY LEFT BLANK
See independent auditors’ report.
- 5 -
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, 2013 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 $778.67 million (net position).
The City’s governmental activities net position decreased $0.30 million, and the net position of the
business-type activities decreased $0.71 million.
During the year, the City’s revenues were $76.52 million and expenses were $77.26 million in its
governmental activities, excluding transfers, compared to fiscal year 2012, where revenues were
$0.65 million greater than expenses.
In the City’s business-type activities, expenses were $0.27 million more than the $9.37 million
generated in green fees, merchandise sales, rental income and other revenues compared to the
prior year, where business-type activities revenues were $0.39 million less than its expenses.
The City’s governmental activities program revenues and general revenues decreased by $31.48
million, or 29.15 percent from prior year, while program expenses decreased $30.09 million, or
28.03 percent from prior year. The decreases in both the revenues and expenses are due to the
State of California eliminating the City’s Redevelopment Agency (See Note 18).
Business-type activities revenues increased by $0.26 million, from $9.11 million to $9.37 million.
Expenses increased by $0.14 million from the prior year.
The revenues available for expenditures were $2.03 million more than budgeted in the General
Fund. The City kept General Fund expenditures within spending limits by $0.98 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.
See independent auditors’ report.
- 6 -
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 are 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.
See independent auditors’ report.
- 7 -
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 $1.43 million from $780.10 million to $778.67 million. A
separate review of the net change in the governmental and business-type activities is provided for the
reader. Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the
City’s governmental and business-type activities.
See independent auditors’ report.
- 8 -
2013 2012 2013 2012 2013 2012
Current and restricted assets 258.23$ 256.73$ 4.78$ 4.79$ 263.01$ 261.52$
Capital assets 465.76 475.46 74.64 75.67 540.40 551.13
TOTAL ASSETS 723.99 732.19 79.42 80.46 803.41 812.65
Deferred outflows of resources 0.10$ 0.17$ -$ -$ 0.10$ 0.17$
Long-term liabilities
outstanding 12.25 12.51 1.75 2.29 14.00 14.80
Other liabilities 9.74 17.03 1.10 0.89 10.84 17.92
TOTAL LIABILITIES 21.99 29.54 2.85 3.18 24.84 32.72
Net position:
Net investment in capital
assets 465.76 475.46 72.89 73.38 538.65 548.84
Restricted 132.74 121.25 - - 132.74 121.25
Unrestricted 103.60 106.11 3.68 3.90 107.28 110.01
TOTAL NET
POSITION 702.10$ 702.82$ 76.57$ 77.28$ 778.67$ 780.10$
TABLE 1
NET POSITION
As of June 30, 2013 and 2012
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
‐
200
400
600
800
1,000
1,200
2013 2012 2013 2012 2013 2012
Governmental
Activities
Business‐Type
Activities
Total
Do
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Table 1 ‐Graph
Total Assets & Liabilities
Total Assets
Total Liabilities
See independent auditors’ report.
- 9 -
The City’s governmental activities net position decreased by less than 1 percent, or $0.72 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 14.76
percent of the overall total net position. Unrestricted net position decreased $2.51 million from $106.11
million in 2012 to $103.60 million in 2013. This is an indication that the City’s Governmental Activities
financial position recognized a fall from prior year. The City has $2.51 million less of unrestricted funds
that can be used to finance its operations. The decrease is attributable to the extraordinary loss that was
recognized due to AB 1484 on the advances to the former Redevelopment Agency (see Note 20).
The increase in restricted net position of $11.49 million was due to the following: restricted capital projects
decreased by $1.08 million due to capital projects expenses; restricted special projects increased by
$12.57 million. The majority of the increase is attributable to two items in the Low Moderate Housing
Asset Fund. Pursuant to AB 1484, upon receipt of the Finding of Completion, loan agreements entered
into prior to dissolution between the City and former Redevelopment Agency, upon their approval as
enforceable obligations, are eligible for repayment; however, 20% of that repayment must be re-allocated
to affordable housing. Consequently, a portion of the long-term advance repayment is now reported as
due from other funds in the Housing Asset Special Revenue Fund. Next, the Successor Agency is
required to continue to pay all enforceable obligations of the former Redevelopment Agency that existed
prior to dissolution. On May 15, 1991 the County of Riverside Superior Court entered final judgment on
Case No. Indio 51143, requiring the Agency to use at least 20% of its tax increment, if necessary, to
develop, rehabilitate or otherwise financially assist a certain number of affordable housing units and to
meet certain affordable housing needs of the City. In order to comply with these mandates, the Successor
Agency has included the Stipulated Judgment as an enforceable obligation on all ROPS and transfers
amounts approved into the Housing Asset Special Revenue Fund to implement the requirements set forth
in the judgment.
Investment in capital assets, decreased $9.70 million. The calculation of Investment in capital assets
includes outstanding debt used to purchase or construct the City’s capital assets. Major additions
included infrastructure projects that include street widening and traffic signals (see Note 5).
The net position of the business-type activities saw a decrease of $0.71 million, from $77.28 million to
$76.57 million. The main factors for the decrease in net position were the transfer out and depreciation
expense. Total liabilities decreased $0.33 million from $3.18 million in 2012 to $2.85 million in 2013.
The City’s governmental activities total assets and deferred outflow of resources decreased from $732.36
million in 2012 to $724.09 million in 2013. The decrease is attributable to the current year depreciation of
the City’s assets (see note 5).
Total liabilities decreased by $7.55 million. There was a $0.26 million reduction due to the retirement of
debt, and a decrease of $7.29 million in other liabilities. The decrease in other liabilities represents the
claw back of the advances that the City advanced to the former Redevelopment Agency that the State
mandated to be paid back.
See independent auditors’ report.
- 10 -
2013 2012 2013 2012 2013 2012
REVENUES:
Program Revenues:
Charges for services 19.96$ 17.44$ 8.71$ 8.86$ 28.67$ 26.30$
Operating grants and
contributions 5.88 7.41 - - 5.88 7.41
Capital grants and
contributions 7.73 2.31 0.66 0.24 8.39 2.55
General Revenues:
Property taxes 6.66 5.04 - - 6.66 5.04
Tax increment (net of pass-through) 3.39 41.17 - - 3.39 41.17
Transient occupancy tax 9.35 8.09 - - 9.35 8.09
Sales tax 16.42 15.93 - - 16.42 15.93
Other taxes 2.92 2.88 - - 2.92 2.88
Investment earnings 0.32 1.10 - 0.01 0.32 1.11
Contribution not restricted for
special purpose - 0.79 - - - 0.79
Other revenues 3.89 5.84 - - 3.89 5.84
TOTAL REVENUES 76.52 108.00 9.37 9.11 85.89 117.11
EXPENSES:
General government 16.38 17.39 - - 16.38 17.39
Housing and redevelopment 6.95 10.52 - - 6.95 10.52
Public safety 28.61 28.04 - - 28.61 28.04
Parks, recreation and culture 8.75 6.03 - - 8.75 6.03
Public works 16.32 17.41 - - 16.32 17.41
Payments to other agencies - 16.99 - - - 16.99
Interest on long-term debt 0.25 10.97 - - 0.25 10.97
Golf Course-Desert Willow - - 8.66 8.47 8.66 8.47
Office Complex-Parkview - - 0.98 1.03 0.98 1.03
TOTAL EXPENSES 77.26 107.35 9.64 9.50 86.90 116.85
INCREASE (DECREASE ) IN NET
ASSETS BEFORE TRANSFERS (0.74) 0.65 (0.27) (0.39) (1.01) 0.26
Transfers 0.44 0.44 (0.44) (0.44) - -
Gain on transfer to Successor Agency - 144.01 - - - 144.01
INCREASE (DECREASE) IN NET POSITION (0.30) 145.10 (0.71) (0.83) (1.01) 144.27
BEGINNING NET POSITION, AS RESTATED 702.40 557.72 77.28 78.11 779.68 635.83
ENDING NET POSITION 702.10$ 702.82$ 76.57$ 77.28$ 778.67$ 780.10$
TABLE 2
CHANGES IN NET POSITION
As of June 30, 2013 and 2012
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
See independent auditors’ report.
- 11 -
Table 2- Graph
Changes in Net Position
Governmental Activities
Total revenue, excluding transfers and gain on transfer to Successor Agency, decreased from $108.00
million to $76.52 million, a 29.15 percent decrease. The decrease is the result of a 91.77 percent
decrease in tax increment of $37.78 million. Factors that contributed to the changes in revenues are as
follows:
Decrease in tax increment due to State of California dissolving the City’s Redevelopment Agency.
Total expenses decreased from $107.35 million to $77.26 million, a 28.03 percent decrease. Housing and
Redevelopment decreased $3.57 million, payments to other agencies decreased $16.99 million and
interest on long-term debt decreased $10.72 million, all of which are the result of the State of California
ordering cities to dissolve their redevelopment agencies. This was the first full year without the former
Redevelopment Agency’s transactions. 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.
‐
100
200
300
400
500
600
700
800
2013 2012
Governmental Activities
Do
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‐
10
20
30
40
50
60
70
80
90
2013 2012
Business‐Type Activities
Beginning Net
Position
Total Revenues
Ending Net Position
Total Expenses
See independent auditors’ report.
- 12 -
The following schedule represents the net cost of providing services:
Governmental Activities
Net (Expense) Revenue
(In Millions)
Business-type Activities
Business-type activities revenues saw an increase of $0.26 million from $9.11 million to $9.37 million, a
2.85 percent increase from the prior year. The overall increase was directly related to the capital
contributions received during the fiscal year. Both the Desert Willow Golf Resort and the Parkview Office
diligently focused on retaining the market share in their respective industries. The Desert Willow Golf
Resort utilized a strategic pricing structure which allowed the golf resort to retain the course utilization
with minimal impact to the overall average green fee. As a result, in a declining market, Desert Willow
recognized 98.20 percent of last year’s revenue. The golf resort management diligently marketed the
platinum card program and offered a discount during an introductory period, which motivated sales. The
Parkview Office Complex revenues increased slightly resulting from annual rental rate adjustments
stipulated in the lease agreement with the tenants.
Operating expenses for business-type activities increased from $9.50 million to $9.64 million, an increase
of 1.47 percent. The majority of the increase was directly related to the financing costs associated with
the new capital leases for the new golf course maintenance equipment. The lease agreements will be
fully amortized in three years.
2013 2012
General government
Housing and redevelopment
($12.18)
4.11
($13.47)
(5.49)
Public safety (16.34) (16.90)
Parks, recreation and culture (7.85) (5.30)
Public works
Payments to other agencies
(11.18)
-
(11.07)
(16.99)
Interest on long term debt (0.25) (10.97)
Total ($43.69) ($80.19)
23%
‐8%
31%
16%
21%
0%1%
2013
Governmental Activities
Net (Expense) Revenue
16%
8%
21%
6%14%
21%
14%
2012
Governmental Activities
Net (Expense) Revenue
General government
Housing and
redevelopment
Public safety
Parks, recreation &
culture
Public works
Payments to other
agencies
Interest on long term
debt
See independent auditors’ report.
- 13 -
THE CITY’S FUNDS
On page 22, the governmental funds balance sheet is shown. The combined fund balance of $232.05
million increased from $222.10 million, or 4.48 percent. This total includes the General Fund balance of
$76.21 million, which increased by $0.55 million from prior year. The City’s General Fund balance has a
nonspendable balance of $7.68 million, which includes advances, loans and notes, inventory, and prepaid
cost, $3.22 million in assigned fund balance, and $65.31 million of unassigned fund balance. The change
in the General Fund’s balance was due to growth in sales and transient occupancy tax. Other major funds
balance changes are noted below:
The Prop A Fire Tax Special Revenue Fund: the fund balance increased, in prior years, due to
the budget constraints on the General Fund, the transfer of funds to cover the shortage in the
Prop A Fire Tax Fund was not made; however, City did make the transfer to cover the current
year shortage and also for future anticipated shortages. In all, the City transferred $2.65 million.
The Low Moderate Housing Asset Fund: the fund balance increased due to the transfers of
assets from the Housing Authority. The State of California requires Cities to track Housing Assets
in a separate fund. This is a newly created fund that meets that requirement.
More detailed information about the combined fund balance reserves is presented in Note 10 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 due to the
State dissolving the City’s redevelopment agency. 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 $49.16 million were $2.03 million more than the
final budgeted revenues of $47.13 million. Sales and transient occupancy taxes continue to be the top
two revenue generators for the City totaling $25.95 million, or 52.79 percent of the General Fund budget.
The General Fund actual ending expenditures of $46.76 million were $0.98 million less than the final
budget of $47.74 million. There were changes in the original budget compared to the final budget during
the year. The original expenditure budget was $45.04 million compared to the final budget of $47.74
million, a $2.70 million increase. The major change was due to the appropriations of an additional $2.40
million in transfers to other funds, representing 88.88 percent of the increase.
See independent auditors’ report.
- 14 -
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2013, the City had $540.40 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 decrease (including additions and
deductions) of $10.73 million over the prior year.
2013 2012 2013 2012 2013 2012
Land 73.78$ 74.20$ 53.15$ 53.15$ 126.93$ 127.35$
Construction-in-progress 6.83 5.73 - - 6.83 5.73
Buildings and improvements
other than buildings 110.44 116.27 19.35 19.60 129.79 135.87
Machinery and equipment 2.15 2.48 2.14 2.92 4.29 5.40
Infrastructure & right-of-way 272.56 276.78 - - 272.56 276.78
TOTALS 465.76$ 475.46$ 74.64$ 75.67$ 540.40$ 551.13$
TABLE 3
CAPITAL ASSETS AT YEAR-END
For the years ended June 30, 2013 and 2012
TotalActivities
Business-TypeGovernmental
Activities
(NET OF DEPRECIATION, IN MILLIONS)
‐
100
200
300
400
500
600
700
2013 2012 2013 2012 2013 2012
Governmental Activities Business‐Type Activities Total
Do
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Table 3 ‐Graph
Capital Assets at Year‐End
(Net of Depreciation in Millions)
Land
Construction in Progress
Buildings and Improvements
Equipment
Infrastructure
Totals
See independent auditors’ report.
- 15 -
This year’s major additions included (in millions):
Street improvements $ 2.03
Traffic signals 0.56
Equipment purchases 0.14
Building improvements 0.06
$ 2.79
The City’s fiscal year 2014 capital budget calls for it to spend an additional $8.66 million plus continuing
capital projects spending of $47.85 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 $12.25 million in bonds, claims, and compensated
absences versus $12.51 million last year, a decrease of $.26 million as shown in Table 4. The major
cause for the decrease was the required payment of annual debt.
2013 2012 2013 2012 2013 2012
Compensated absences payable 2.59$ 2.29$ -$ -$ 2.59$ 2.29$
Capital leases - - 1.75 2.29 1.75 2.29
Claims and judgements payable 0.74 0.98 - - 0.74 0.98
Special assessments debt with
government commitment 1.59 1.62 - - 1.59 1.62
Limited Obligation Improvement
bonds 2.52 2.66 - - 2.52 2.66
Lease revenue bond 4.81 4.96 - - 4.81 4.96
TOTALS 12.25$ 12.51$ 1.75$ 2.29$ 14.00$ 14.80$
TABLE 4
OUTSTANDING DEBT, AT YEAR-END
For the years ended June 30, 2013 and 2012
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
See independent auditors’ report.
- 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 decreased $0.54 million from $2.29 million to $1.75 million. Debt
in the business-type activities is for capital leasing of equipment. The City’s golf course uses leasing as
an alternative to purchasing maintenance equipment to maintain a cash flow to operate the day-to-day
activities. The decrease in the City’s business-type activities debt was directly related to the annual debt
payments for the leases of golf course maintenance equipment. 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 2014, management focused on three core principles, in light of the
fact that the State of California dissolved the City’s Redevelopment Agency: 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) minimize the impact on the City’s employees and avoid position reductions if possible. The
following economic factors were considered by management:
In prior years, the City had unallocated reserves in its capital projects and special revenue funds.
In the five-year capital improvement program, all restricted capital funds have been allocated to
various projects. 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.
The City also made adjustments due to the Governor of California enacting legislation to
eliminate redevelopment agencies across the State to solve the State’s budget crisis.
The 2014 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 2013-2014 financial plan can be obtained by contacting the City’s
Finance Department or on 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
City’s 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 Desert
Recreational
Governmental Business-typ Facilities
Activities Activities Total Corporatio
Cash and investments 159,523,120$ 3,574,646$ 163,097,766$ 127,742$
Receivables:
Accounts 2,160,979 126,139 2,287,118 12,574
otes 1,589,000 - 1,589,000 -
Interest 476,779 - 476,779 -
Loans 12,118,832 - 12,118,832 -
Internal balances 500,000 (500,000) - -
Prepaid costs 1,556,289 48,342 1,604,631 7,878
Inventories 31,998 191,713 223,711 41,071
Due from other government 3,854,759 - 3,854,759 -
Property held for resale 3,285,798 - 3,285,798 -
Due from component uni 285,000 1,344,563 1,629,563 -
Advances to Succesor Agenc 40,476,288 - 40,476,288 -
Due from Successor Agenc 189 - 189 -
Restricted assets:
Cash with fiscal agen 24,410,579 - 24,410,579 -
et OPEB asset 7,968,971 - 7,968,971 -
Capital assets, not being depreciated 201,314,459 53,150,057 254,464,516 -
Capital assets, net of depreciation 264,441,713 21,493,226 285,934,939 -
TOTAL ASSETS 723,994,753 79,428,686 803,423,439 189,265
DEFERRED OUTFLOWS OF RESOURCES:
Deferred asset from derivative instruments 98,150 - 98,150 -
Accounts payable 7,424,317 658,424 8,082,741 30,641
Accrued liabilities 614,186 121,424 735,610 29,000
Interest payable 50,910 - 50,910 -
Unearned revenues 893,188 296,090 1,189,278 47,846
Deposits payable 656,145 27,404 683,549 -
Due to primary governmen - - - 1,629,563
Liability from derivative instrument 98,150 - 98,150 -
Long-term liabilities:
Due within one yea 1,250,000 565,953 1,815,953 -
Due in more than one yea 11,004,322 1,185,130 12,189,452 -
TOTAL LIABILITIES 21,991,218 2,854,425 24,845,643 1,737,050
ET POSITION:
et investment in capital assets 465,756,172 72,892,200 538,648,372 -
Restricted for:
Special projects 71,854,466 - 71,854,466 -
Capital projects 60,887,332 - 60,887,332 -
Unrestricted (deficit) 103,603,715 3,682,061 107,285,776 (1,547,785)
TOTAL NET POSITION 702,101,685$ 76,574,261$ 778,675,946$ 1,547,785$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
- 17 -
Primary Government
STATEMENT OF NET POSITION
June 30, 2013
ASSETS:
LIABILITIES:
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
Primary Government:
Governmental activities:
General government 16,375,295$ 1,833,823$ 878,475$ 1,482,086$
Housing and redevelopment 6,944,033 5,308,858 - 5,746,729
Public safety 28,614,153 11,147,297 942,443 182,312
Parks, recreation and culture 8,752,623 898,222 - 5,975
Public works 16,316,237 768,775 4,055,110 316,337
Interest on long term debt 253,381 - - -
Total governmental activities 77,255,722 19,956,975 5,876,028 7,733,439
Business-type activities:
Desert Willow Golf Course 8,655,754 7,494,819 - 660,685
Office Complex - Parkview 984,811 1,215,860 - -
Total business-type activities 9,640,565 8,710,679 - 660,685
Total primary governmen 86,896,287$ 28,667,654$ 5,876,028$ 8,394,124$
Component Unit:
Palm Desert Recreational Facilities Corp. 2,425,303$ 2,343,733$ -$ -$
General revenues:
Taxes:
Property taxes, levied for general purpose
Tax increment, net of pass-throughs
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu
Investment earnings
Miscellaneous
Transfers
Total general revenues
Change in net position
Net position - beginning of year, as restated
et position - end of yea
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
- 18 -
STATEMENT OF ACTIVITIES
For the year ended June 30, 2013
Functions/Programs
Program Revenue
Exhibit B
Component
Unit
Palm Desert
Recreational
Governmental Business-type Facilities
Activities Activities Total Corporation
(12,180,911)$ -$ (12,180,911)$ -$
4,111,554 - 4,111,554 -
(16,342,101) - (16,342,101) -
(7,848,426) - (7,848,426) -
(11,176,015) - (11,176,015) -
(253,381) - (253,381) -
(43,689,280) - (43,689,280) -
- (500,250) (500,250) -
- 231,049 231,049 -
- (269,201) (269,201) -
(43,689,280) (269,201) (43,958,481) -
- - - (81,570)
6,662,891 - 6,662,891 -
3,386,520 - 3,386,520 -
9,353,981 - 9,353,981 -
16,419,172 - 16,419,172 -
2,892,805 - 2,892,805 -
26,691 - 26,691 -
318,996 3,512 322,508 -
3,894,203 - 3,894,203 -
437,500 (437,500) - -
43,392,759 (433,988) 42,958,771 -
(296,521) (703,189) (999,710) (81,570)
702,398,206 77,277,450 779,675,656 (1,466,215)
702,101,685$ 76,574,261$ 778,675,946$ (1,547,785)$
- 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 69,685,670$ 1,646,026$ 1,057,984$
Receivables:
Accounts 1,504,688 - -
Assessments - - -
Notes 1,589,000 - -
Interest 196,020 - 33,938
Loans 99,436 - 6,806,458
Prepaid costs 627,387 924,140 1,900
Due from other governments 2,948,053 55,666 -
Due from other funds 8,611 - 4,531,000
Due from Successor Agency 189 - -
Advances to Successor Agency 9,236,000 - 17,821,288
Inventories 28,627 - -
Property held for resale - - 3,285,798
Due from component unit 285,000 - -
Restricted assets:
Cash and investments with fiscal agent - - -
TOTAL ASSETS 86,208,681$ 2,625,832$ 33,538,366$
LIABILITIES:
Accounts payable 5,061,615$ 43,177$ 4,696$
Accrued liabilities 484,493 - -
Due to other funds 1,847,200 - -
Unearned revenues - - 6,796
Deposits payable - - -
TOTAL LIABILITIES 7,393,308 43,177 11,492
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue 2,600,443 - 33,938
FUND BALANCES:
Nonspendable 7,678,250 924,140 32,446,444
Restricted - 1,658,515 1,046,492
Committed - - -
Assigned 3,224,761 - -
Unassigned 65,311,919 -
TOTAL FUND BALANCES 76,214,930 2,582,655 33,492,936
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 86,208,681$ 2,625,832$ 33,538,366$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2013
Special Revenue Funds
- 22 -
RESOURCES AND FUND BALANCES
LIABILITIES, DEFERRED INFLOWS OF
Exhibit C
Other Total
Governmental Governmental
Funds Funds
81,341,594$ 153,731,274$
656,291 2,160,979
1,417,094 1,417,094
- 1,589,000
246,821 476,779
5,212,938 12,118,832
2,862 1,556,289
851,040 3,854,759
500,000 5,039,611
- 189
13,419,000 40,476,288
3,371 31,998
- 3,285,798
- 285,000
24,410,579 24,410,579
128,061,590$ 250,434,469$
2,297,814$ 7,407,302$
129,693 614,186
2,692,411 4,539,611
886,392 893,188
656,145 656,145
6,662,455 14,110,432
1,635,466 4,269,847
15,948,616 56,997,450
74,020,381 76,725,388
15,649,703 15,649,703
14,144,969 17,369,730
- 65,311,919
119,763,669 232,054,190
128,061,590$ 250,434,469$
- 23 -
- 24 -
THIS PAGE INTENTIONALLY LEFT BLANK
Exhibit D
Total fund balance for governmental funds 232,054,190$
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 474,636,135$
Current year additions 2,788,676
Current year deletions (442,047)
Current year depreciation (11,897,243)
Prior period adjustmen (417,845)
Ending Balance, net depreciation 464,667,676
Deferred outflows of resources from derivative instrument 98,150
Long-term debt activities and compensated absences have not been include
in the governmental fund activities:
Long-term deb (9,666,792)
Compensated absences (2,587,530)
Interest on long-term debt is not accrued in governmental funds, but rather i
recognized as an expenditure when due. (50,910)
Liability from derivative instrument (98,150)
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
Community Development Block Grant - relates to loans given to low
to moderate income familie 5,755
Capital reimbursement from developer for work completed by the City
on behalf of the develope 355
Interest that was not paid at year-en 294,216
Sales tax 212,427
Successor Agency (former Redevelopment Agency) land purchase from Cit 2,055,000
2,852,753
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.7,968,971
Internal service fund are used by management to charge the costs of certai
activities, such as equipment to individual funds. The assets and liabilities
of the internal service fund must be added to the Statement of Net Position. 6,863,327
et position of governmental activitie 702,101,685$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
June 30, 2013
- 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 41,387,013$ 6,521,561$ -$
Special assessments collected - 2,118,083 -
Licenses and permits 1,336,125 - -
Intergovernmental revenues 1,913,609 834,864 -
Rental income 188,775 - 2,965
Charges for services 898,222 - -
Investment earnings 126,206 - 70,897
Fines and forfeitures 114,026 - -
Miscellaneous 1,065,087 5,701 5,019,732
TOTAL REVENUES 47,029,063 9,480,209 5,093,594
EXPENDITURES:
Current:
General government 12,463,041 - -
Housing and redevelopment - - 498,671
Public safety 18,520,228 9,543,164 -
Parks, recreation and culture 3,550,585 - -
Public works 7,566,547 - -
Capital outlay 55,027 7,831 -
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
TOTAL EXPENDITURES 42,155,428 9,550,995 498,671
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,873,635 (70,786) 4,594,923
OTHER FINANCING SOURCES (USES):
Transfers in 2,127,655 2,653,000 -
Transfers out (4,602,022) - (4,026,615)
TOTAL OTHER FINANCING
SOURCES (USES) (2,474,367) 2,653,000 (4,026,615)
EXTRAORDINARY GAIN (LOSS) (1,847,200) - 32,924,628
NET CHANGE IN FUND BALANCES 552,068 2,582,214 33,492,936
FUND BALANCES - BEGINNING OF YEAR 75,662,862 441 -
FUND BALANCES - END OF YEAR 76,214,930$ 2,582,655$ 33,492,936$
See independent auditors' report and 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, 2013
- 26 -
Special Revenue Funds
Exhibit E
Other Total
Governmental Governmental
Funds Funds
2,859,626$ 50,768,200$
1,536,254 3,654,337
250,671 1,586,796
2,349,419 5,097,892
5,175,890 5,367,630
- 898,222
175,909 373,012
128,542 242,568
2,938,178 9,028,698
15,414,489 77,017,355
1,565,211 14,028,252
5,151,995 5,650,666
236,484 28,299,876
2,611,864 6,162,449
2,253,044 9,819,591
2,725,818 2,788,676
318,000 318,000
255,239 255,239
15,117,655 67,322,749
296,834 9,694,606
6,493,884 11,274,539
(2,381,913) (11,010,550)
4,111,971 263,989
(31,077,428) -
(26,668,623) 9,958,595
146,432,292 222,095,595
119,763,669$ 232,054,190$
- 27 -
Exhibit F
Net change in fund balances - total governmental funds 9,958,595$
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
depreciation and deletions exceeded capital outlays in the current period:
Current year additions 2,788,676$
Current year deletions (442,047)
Current year depreciation (11,897,243) (9,550,614)
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Position. 318,000
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 compensated absences for the current period (300,064)
Net change in accrued interest for the current period 1,858
Net change in claims and judgments for the current period 233,966
Collection of unavailable revenues is reported as revenues in governmental funds
and thus has the effect of increasing fund balances. For the City as a whole,
however, the collection of these receipts reduces the net position in the Statement
of Net Position and does not result in revenues in the Statement of Activities:
Unavailable revenue (6,145)
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:
Capital reimbursement revenue related to construction completed by the
City on behalf of the developer (229,862)
Interest on note issued by the City 1,698
Sales tax true-up from the State (345,636)
Current year change for other post employment benefit asset. (295,595)
Internal service funds are used by management to charge the costs of certain
activities, such as equipment. The net revenues (expenses) of the internal
service funds are reported with governmental activities. (82,722)
Change in net position of governmental activities (296,521)$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2013
- 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 Fund
ASSETS:
CURRENT ASSETS:
Cash and investments 469,222$ 3,105,424$ 3,574,646$ 5,791,846$
Receivables:
Accounts 88,202 37,937 126,139 -
Prepaid costs 46,997 1,345 48,342 -
Inventories 191,713 - 191,713 -
Due from component unit (PDRFC) 1,344,563 - 1,344,563 -
TOTAL CURRENT ASSETS 2,140,697 3,144,706 5,285,403 5,791,846
CAPITAL ASSETS:
Nondepreciable 53,150,057 - 53,150,057 -
Depreciable, net 13,291,954 8,201,272 21,493,226 1,088,496
CAPITAL ASSETS, NET 66,442,011 8,201,272 74,643,283 1,088,496
TOTAL ASSETS 68,582,708 11,345,978 79,928,686 6,880,342
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable 575,190 83,234 658,424 17,015
Accrued liabilities 121,424 - 121,424 -
Deposits payable - 27,404 27,404 -
Unearned revenues 290,928 5,162 296,090 -
Due to other funds 500,000 - 500,000 -
Current portion - capital leases 565,953 - 565,953 -
TOTAL CURRENT LIABILITIES 2,053,495 115,800 2,169,295 17,015
NONCURRENT LIABILITIES:
Capital leases 1,185,130 - 1,185,130 -
TOTAL NONCURRENT LIABILITIES 1,185,130 - 1,185,130 -
TOTAL LIABILITIES 3,238,625 115,800 3,354,425 17,015
NET POSITION:
Net investment in capital assets 64,690,928 8,201,272 72,892,200 1,088,496
Unrestricted 653,155 3,028,906 3,682,061 5,774,831
TOTAL NET POSITION 65,344,083$ 11,230,178$ 76,574,261$ 6,863,327$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2013
- 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 Fund
OPERATING REVENUES:
Fees and rentals 6,263,868$ 1,206,471$ 7,470,339$ -$
Merchandise sales 1,085,287 - 1,085,287 -
Miscellaneous 145,664 9,389 155,053 2,002
TOTAL OPERATING REVENUES 7,494,819 1,215,860 8,710,679 2,002
OPERATING EXPENSES:
Maintenance and operations 4,336,264 342,856 4,679,120 -
Cost of merchandise 519,743 - 519,743 -
General and administrative 2,382,150 184,768 2,566,918 -
Depreciation and amortization 1,303,382 457,187 1,760,569 340,524
TOTAL OPERATING EXPENSES 8,541,539 984,811 9,526,350 340,524
OPERATING INCOME (LOSS) (1,046,720) 231,049 (815,671) (338,522)
NONOPERATING REVENUES (EXPENSES):
Interest revenue 14 3,498 3,512 5,059
Interest expense (114,215) - (114,215) -
TOTAL NONOPERATING
REVENUES (EXPENSES) (114,201) 3,498 (110,703) 5,059
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS
AND TRANSFERS (1,160,921) 234,547 (926,374) (333,463)
CAPITAL CONTRIBUTIONS 660,685 - 660,685 77,230
TRANFERS IN - - - 173,511
TRANSFERS OUT - (437,500) (437,500) -
CHANGE IN NET POSITION (500,236) (202,953) (703,189) (82,722)
NET POSITION - BEGINNING OF YEAR 65,844,319 11,433,131 77,277,450 6,946,049
ET POSITION - END OF YEAR 65,344,083$ 11,230,178$ 76,574,261$ 6,863,327$
See independent auditors' report and notes to basic financial statements.
For the year ended June 30, 2013
- 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 Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers 7,513,772$ 1,234,109$ 8,747,881$ 2,002$
Payments to suppliers (7,240,329) (514,025) (7,754,354) -
NET CASH PROVIDED BY
OPERATING ACTIVITIES 273,443 720,084 993,527 2,002
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Interest paid on loan (94,216) - (94,216) -
Cash received from other funds - - - 173,511
Cash paid to other funds - (437,500) (437,500) -
NET CASH PROVIDED (USED) BY
NONCAPITAL AND RELATED
ACTIVITIES (94,216) (437,500) (531,716) 173,511
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (1,025) (75,149) (76,174) (515,225)
Principal paid on leases (540,275) - (540,275) -
Interest paid on leases (20,000) - (20,000) -
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (561,300) (75,149) (636,449) (515,225)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 14 3,498 3,512 5,059
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (382,059) 210,933 (171,126) (334,653)
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 851,281 2,894,491 3,745,772 6,126,499
CASH AND CASH EQUIVALENTS -
END OF YEAR 469,222$ 3,105,424$ 3,574,646$ 5,791,846$
See independent auditors' report and notes to basic financial statements. (Continued)
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2013
Enterprise Funds
Business-type Activities-
- 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) (1,046,720)$ 231,049$ (815,671)$ (338,522)$
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 1,303,382 457,187 1,760,569 340,524
Changes in assets and liabilities:
(Increase) decrease in receivables, net (49,745) 17,363 (32,382) -
(Increase) decrease in prepaid costs (4,290) (520) (4,810) -
(Increase) decrease in inventories 7,729 - 7,729 -
(Increase) decrease in due
from component unit (132,664) - (132,664) -
Increase (decrease) in accrued liabilities 127,053 10,459 137,512 -
Increase (decrease) in deposits payable - 3,660 3,660 -
Increase (decrease) in unearned revenues 68,698 886 69,584 -
NET CASH PROVIDED BY
OPERATING ACTIVITIES 273,443$ 720,084$ 993,527$ 2,002$
NONCASH ITEMS:
Noncash items include $660,685 and $77,230 (net value) of capital assets contributed by the City of Palm Desert to Desert
Willow Golf Course and the internal service fund, respectively.
See independent auditors' report and notes to basic financial statements.
- 32 -
CITY OF PALM DESERT
Enterprise Funds
(CONTINUED)
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2013
Business-type Activities-
Exhibit
Successor
Agency to th
Palm Desert
Redevelopmen
Agenc
Private-Purpose Agenc
Trust Fund Funds
ASSETS:
Cash and investments 27,829,118$ 13,984,621$
Receivables (net of allowance for uncollectibles):
Assessments - 97,216,295
otes 400,000 -
Interest 120,562 2,801
Due from other government 13,251 144,654
Prepaid costs 550,371 4,467
Restricted assets:
Cash with fiscal agen 133,819,157 8,033,685
Capital assets, not being depreciated 57,359,693 -
Capital assets, being depreciated 3,644,544 -
TOTAL ASSETS 223,736,696 119,386,523
DEFERRED OUTFLOWS OF RESOURCES:
Deferred amount on refunding 992,674
LIABILITIES:
Accounts payable 925,812 -$
Interest payable 4,270,472 -
Advances from City of Palm Deser 22,655,000 -
Advances from Housing Authorit 17,821,288 -
Due to the City of Palm Deser 189 -
Deposits 15,000 119,386,523
Bonds payable - due within one yea 16,809,295
Bonds payable - due in more than one yea 328,449,402 -
TOTAL LIABILITIES 390,946,458 119,386,523
ET POSITION:
Held in trus (166,217,088)
See independent auditors' report and notes to basic financial statements
CITY OF PALM DESERT
- 33 -
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
June 30, 2013
Exhibit
Successor
Agency to th
Palm Desert
Redevelopmen
Agenc
Private-Purpose
Trust Fund
ADDITIONS:
Taxes 39,972,081$
Investment incom 359,705
Rental income 80,916
Other 668
TOTAL ADDITIONS 40,413,370
DEDUCTIONS:
Housing and developmen 7,203,622
Interest 16,805,430
Payment to Count 41,078,399
Depreciation 315,539
TOTAL DEDUCTIONS 65,402,990
CHANGE IN NET POSITION (24,989,620)
ET POSITION - BEGINNING OF YEAR, AS RESTATED (141,227,468)
ET POSITION - END OF YEAR (166,217,088)
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
For the year ended June 30, 2013
- 34 -
See independent auditors’ report.
- 35 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2013
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.
The Palm Desert Housing Authority (Housing Authority) was established by the City Council
in January 1998, and is partly responsible for the administration of providing affordable
housing in the City. The Housing Authority transactions are reported in the governmental fund
financial statements as a major fund.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 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, 2013
See independent auditors’ report.
- 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, 2013
See independent auditors’ report.
- 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, 2013
See independent auditors’ report.
- 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 Fund accounts for financial transactions related to
replacement of City-owned vehicles and equipment. These services are provided to other
departments or agencies of the City on a cost reimbursement basis.
Fiduciary Fund 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, 2013
See independent auditors’ report.
- 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.
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, 2013
See independent auditors’ report.
- 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, 2013
See independent auditors’ report.
- 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, 2013
See independent auditors’ report.
- 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:
Implemented
In fiscal year 2012-2013, the City implemented Governmental Accounting Standards Board
(GASB) Statement No. 63, “Financial Reporting of Deferred Outflows of Resources, Deferred
Inflows of Resources, and Net Position”. This statement incorporates deferred outflows of
resources and deferred inflows of resources, as defined by GASB Concepts Statement No. 4,
“Elements of Financial Statements” into the definitions of the required components of the
residual measure of net position, formerly net assets. This statement also provides a new
Statement of Net Position format to report all assets, deferred outflows of resources, liabilities,
deferred inflows of resources, and net position.
In fiscal year 2012-2013, the City early implemented GASB Statement No. 65, “Items
Previously Reported as Assets and Liabilities”. This statement established accounting and
financial reporting standards that reclassify, as deferred outflows of resources or deferred
inflows of resources, certain items that were previously reported as assets and liabilities. Due
to the early implementation of this statement $8,684,179 in bond issue costs in the Fiduciary
Private-Purpose Trust Fund, which should be recognized as an expense in the period incurred,
were eliminated. Accounting changes adopted to conform to the provisions of this statement
should be applied retroactively. The result of the implementation of this standard was to
decrease the net position at July 1, 2012 by $8,684,179, which is the amount of unamortized
bond issue costs of the Fiduciary Private-Purpose Trust Fund at July 1, 2012.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 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 66 - “Technical Corrections, an amendment of GASB Statement No. 10 and
Statement No. 62”, effective for periods beginning after December 15, 2012.
GASB 67 - “Financial Reporting for Pension Plans, an amendment of GASB Statement
No. 25”, effective for the fiscal years beginning after June 15, 2013.
GASB 68 - “Accounting and Financial Reporting for Pensions, an amendment of GASB
Statement No. 27”, effective for the fiscal years beginning after June 15, 2014.
GASB 69 - “Government Combinations and Disposals of Government Operations”,
effective for periods beginning after December 15, 2013.
GASB 70 - “Accounting and Financial Reporting for Nonexchange Financial Guarantees”,
effective for the periods beginning after June 15, 2013.
e. Deferred Outflows/Inflows of Resources:
In addition to assets, the statement of net position 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 a future period(s) and so
will not be recognized as an outflow of resources (expense/expenditure) until then. The City
has two items which are deferred asset from derivate instruments and the deferred loss on
refunding that qualify for reporting in this category.
In addition to liabilities, the statement of net position 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 a future period(s) and will
not be recognized as an inflow of resources (revenue) until that time. The City has only one
type of this item, which arises under a modified accrual basis of accounting that qualifies for
reporting in this category. Accordingly, the item, unavailable revenues, 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 45 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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.
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
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 46 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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, 2013, 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.
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 $2,587,530,
which are not expected to be liquidated with expendable available financial resources, are
reported as long-term liabilities.
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, 2013, the cost of the property held for resale for various housing properties in Palm
Desert totaled $3,285,798.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 47 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
m. Inventories, Prepaid Costs and Deposits:
Inventory in the amount of $191,713 and $41,071 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 $31,998 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.
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
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 48 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
p. Use of Estimates:
The financial statements are prepared in conformity with accounting principles generally
accepted in the United States of America and, accordingly, include amounts that are based on
management’s best estimates and judgments. The financial statements include estimates for
the value of the capital assets (infrastructure), depreciation expense, fair value of investments,
for the liability for derivative instruments (Note7), for the amounts reported for the schedule of
funding progress for the Defined Benefit Plan (Note 9) and actuarial accrued liability for the
other post-employment benefits (Note 13). Accordingly, actual results could differ from the
estimates.
2. CASH AND INVESTMENTS:
Cash and Investments
As of June 30, 2013, cash and investments were reported in the accompanying financial statements
as follows:
Governmental activities $ 183,933,699
Business-type activities 3,574,646
Component unit 127,742
Fiduciary funds 183,666,581
Total Cash and Investments $ 371,302,668
Cash and investments at June 30, 2013 consisted of the following:
Primary Government
Demand accounts $ (8,078,182)
Petty cash 21,850
Investments 195,564,677
Total Cash and Investments - Primary Government $ 187,508,345
Component Unit
Demand accounts $ 127,742
Fiduciary Funds
Demand accounts $ 4,835,710
Pooled with Primary Government 13,984,621
Investments 164,846,250
Total Cash and Investments - Fiduciary Funds $ 183,666,581
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 49 -
2. CASH AND INVESTMENTS (CONTINUED):
Cash and Investments (Continued)
The City of Palm Desert maintains a cash and investment pool that is available for use for all
funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and
investments. The City has adopted an investment policy, which authorizes it to invest in various
investments.
Deposits
At June 30, 2013, the carrying amount of the deposits was $10,869,891, and the bank balance was
$11,562,131. The $(692,240) difference represents outstanding checks and other reconciling items.
The California Government Code requires California banks and savings and loan associations to
secure an Entity's deposits by pledging government securities with a value of 110% of an Entity's
deposits. California law also allows financial institutions to secure deposits by pledging first trust
deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the
collateral requirement for deposits that are fully insured up to $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
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 50 -
2. CASH AND INVESTMENTS (CONTINUED):
Investments (Continued)
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
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards for investments in participating interest earning investment
contracts, external investment pools, equity securities, option contracts, stock warrants and stock
rights that have readily determinable fair values.
Credit Risk
The City Treasurer is authorized under state and municipal law to invest in various types of
securities that meet specified credit quality standards, based upon credit risk ratings assigned by
Standard and Poors (S&P) or by Moody’s Investor Services (Moody’s). Permissible City
investments include medium-term notes that are rated “A” or higher at time of purchase;
commercial paper that is rated “A-1” or the equivalent; money market mutual funds that are rated
“AAA”; and 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 51 -
2. CASH AND INVESTMENTS (CONTINUED):
Credit Risk (Continued)
Primary Government
Minimum
Total as of Legal
Investment Type June 30, 2013 Rating AAA/Aaa AA+/Aa1 AA-/Aa3 Unrated
California Local Agency
Investment Fund 61,224,662$ N/A -$ -$ -$ 61,224,662$
California Asset
Management Program 9,610,586 N/A 9,610,586 - - -
Riverside County Treasurer's
Pooled Investment Fund 94,545,663 N/A 94,545,663 - - -
Medium-Term Corporate Notes 8,676,470 A - 4,012,848 4,663,622 -
Held by Fiscal Agent:
Money market mutual funds 675,032 A 675,032 - - -
California Local Agency
Investment Fund 20,832,264 N/A - - - 20,832,264
Total 195,564,677$ 104,831,281$ 4,012,848$ 4,663,622$ 82,056,926$
Fiduciary Funds
Minimum
Total as of Legal
Investment Type June 30, 2013 Rating AAA/Aaa Unrated
California Asset Management Program 3,264,860$ N/A 3,264,860$ -$
Riverside County Treasurer's Pooled Investment Fund 17,207,549 N/A 17,207,549 -
Investment in City Bonds - Successor Agency RDA 2,521,000 N/A - 2,521,000
Held by Fiscal Agent:
Escrow deposit - Successor Agency RDA 886,128 N/A - 886,128
Money market mutual funds - Successor Agency RDA 20,296,582 A 20,296,582
California Local Agency Investment Fund -
Successor Agency RDA 112,636,446 N/A - 112,636,446
Money market mutual funds - Assessment District 3,421,112 A 3,421,112 -
California Local Agency Investment Fund - Assessment District 4,612,573 N/A - 4,612,573
Total 164,846,250$ 44,190,103$ 120,656,147$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 52 -
2. CASH AND INVESTMENTS (CONTINUED):
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, 2013, none of the City’s deposits or investments were exposed to custodial credit
risk.
Concentration of Credit Risk
The City’s investment policy imposes restrictions on the percentage the City can invest in certain
types of investments, which the City is in compliance. As of June 30, 2013, 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) $50M/Acct N/A
Structured Notes (STRIPS) 20% N/A
Local Government Investment Pools 50% N/A
N/A - Not Applicable
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 53 -
2. CASH AND INVESTMENTS (CONTINUED):
Concentration of Credit Risk (Continued)
The City’s policy is more conservative than state law, which has no issuer concentration limits on
federal agency debt. The federal agency debt that the City purchases have implied credit ratings of
“AA+/Aaa”.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to
fair value losses arising from increasing interest rates. The City's investment policy states that the
City shall not invest in securities with maturities exceeding five years and the weighted-average
maturity of the City portfolio shall not exceed 540 days. The City has elected to use the segmented
time distribution method of disclosure for its interest rate risk.
As of June 30, 2013, the City had the following investments and maturities:
Primary Government
Less Than 6 months - 1 year - Over Fair
Investment Type 6 months 1 year 3 years 3 years Value
California Local Agency
Investment Fund 61,224,662$ -$ -$ -$ 61,224,662$
California Asset
Management Program 9,610,586 - - - 9,610,586
Riverside County Treasurer's
Pooled Investment Fund 94,545,663 - - - 94,545,663
Medium-Term Corporate Notes 8,676,470 - - - 8,676,470
Held by Fiscal Agent:
Money market mutual funds 675,032 - - - 675,032
California Local Agency
Investment Fund 20,832,264 - - - 20,832,264
Total 195,564,677$ -$ -$ -$ 195,564,677$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 54 -
2. CASH AND INVESTMENTS (CONTINUED):
Interest Rate Risk (Continued)
Fiduciary Funds
Less Than 6 months - 1 year - Over Fair
Investment Type 6 months 1 year 3 years 3 years Value
California Asset
Management Program 3,264,860$ -$ -$ -$ 3,264,860$
Riverside County Treasurer's
Pooled Investment Fund 17,207,549 - - - 17,207,549
Investment in City Bonds 139,000 - 437,000 1,945,000 2,521,000
Held by Fiscal Agent:
Escrow deposit - Successor
Agency RDA 886,128 - - - 886,128
Money market mutual funds -
Successor Agency RDA 20,296,582 - - - 20,296,582
LAIF - Successor Agency RDA 112,636,446 - - - 112,636,446
Money market mutual funds -
Assessment District 3,421,112 - - - 3,421,112
LAIF - Assessment District 4,612,573 - - - 4,612,573
Total 162,464,250$ -$ 437,000$ 1,945,000$ 164,846,250$
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 55 -
2. CASH AND INVESTMENTS (CONTINUED):
Investment in California Asset Management Program (Continued)
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.
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 will be used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. Bond maturities 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, 2013, the receivable balance was $1,589,000.
The City has $5,755 and the Low Moderate Housing Asset Special Revenue Fund has $18,829 in
home improvement loans. Payments of interest and principal are due monthly on these loans.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 56 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
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, 2013 the total receivable from the Highlands
Deferral Loan Program is $99,436.
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 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.
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, 168 residents and business owners
entered into loan agreements with the City and have completed their improvements through the
EIP program. 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, 2013 the outstanding loans receivable through the
EIP Program was $5,207,183.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been
transferred to the Palm Desert Housing Authority as the successor housing entity. The Housing
Authority has loans for several other projects, all of which are secured by a deed of trust. A
valuation allowance equal to the loan balance has been recognized since there is a significant
possibility that these loans will either become uncollectible or forgiven by the Housing Authority
at a future date if all the terms of the loans have been met.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 57 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
Detailed information for these loans is as follows:
Loan
Balance Interest Maturity Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Self-Help 429,000$ 7.25% 30 years Deed of Trust
Housing Program or 2024
Home Improvement 380,076 N/A N/A Deed of Trust
Loans
Portola Palms 113,640 3.00% 30 years Deed of Trust
Mobilehome Park from date
of loan
Desert Rose 2,304,460 3.00% 30 - 45 years* Deed of Trust
from date
of loan
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.
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, 2013
See independent auditors’ report.
- 58 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
Detailed information for these loans (Continued):
Loan
Balance Interest Maturit Special Provisions
Project Name Outstanding Rate Date Secured B of Loa
Falcon Crest 5,167,488$ 3.00% 30 - 45 Deed of Trust
years
from date
of loan
Acquisition, 190,510 3.00% 30 - 45 Deed of Trust
Rehabilitation, years Assignment
Resale from date of Rent
of loan
* All properties acquired from the 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 59 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
Due To/From Other Funds
The composition of interfund balances as of June 30, 2013, was as follows:
Due To Due From Amount
General Fund Other Governmental Funds $ 8,611
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
$ 5,039,611
The General Fund advanced money to cover the cash shortage in the Community Development
Block Grant Special Revenue Fund until payment from the County is received.
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 Capital 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 1,344,563
$ 1,629,563
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, 2013
See independent auditors’ report.
- 60 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Interfund Transfers
The composition of interfund transfers as of June 30, 2013, was as follows:
Prop A
Fire Tax
Special Other Internal
General Revenue Governmental Service
Transfers Out: Fund Fund Funds Total Fund Totals
General Fund -$ 2,653,000$ 1,775,511$ 4,428,511$ 173,511$ 4,602,022$
Low Moderate
Housing Asset
Special Revenue - - 4,026,615 4,026,615 - 4,026,615
Other
Governmental
Funds 1,690,155 - 691,758 2,381,913 - 2,381,913
Office Complex
Parkview
Enterprise Fund 437,500 - 437,500 - 437,500
Totals 2,127,655$ 2,653,000$ 6,493,884$ 11,274,539$ 173,511$ 11,448,050$
Transfers In
Transfers are used to:
1. Move receipts restricted to debt service from the funds collecting the receipts to the debt
service funds as debt service payments become due,
2. Transfer revenues to provide for capital projects,
3. Transfer revenues to provide for additional resources to pay for expenditures, and
4. Transfer to cover future cost of assets.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 61 -
5. CAPITAL ASSETS:
A summary of changes in capital assets at June 30, 2013, was as follows:
Primary Government - Governmental Activities
Prior
Balance at Period Balance at Balance at
July 1, 2012 Adjustments July 1, 2012 Transfers Additions Deletions June 30, 2013
Capital assets, not
being depreciated:
Land 74,194,529$ (417,845)$ 73,776,684$ -$ -$ -$ 73,776,684$
Right-of-way 120,708,066 - 120,708,066 - - - 120,708,066
Construction-in-progress 5,694,105 - 5,694,105 (831,924) 1,958,219 (202,112) 6,618,288
Internal service fund -
Construction-in-progress 37,086 - 37,086 - 174,335 - 211,421
Total capital assets, not
being depreciated 200,633,786 (417,845) 200,215,941 (831,924) 2,132,554 (202,112) 201,314,459
Capital assets, being
depreciated:
Buildings 127,226,193 - 127,226,193 - 57,568 - 127,283,761
Improvements other
than buildings 54,761,549 - 54,761,549 - - - 54,761,549
Machinery and equipment 9,298,297 - 9,298,297 - 147,992 (4,065) 9,442,224
Infrastructure 232,992,472 - 232,992,472 831,924 624,897 (393,606) 234,055,687
Equipment - Internal
service fund 5,515,080 - 5,515,080 - 433,445 (434,730) 5,513,795
Total capital assets,
being depreciated 429,793,591 - 429,793,591 831,924 1,263,902 (832,401) 431,057,016
Less accumulated
depreciation for:
Buildings (45,006,416) - (45,006,416) - (3,109,161) - (48,115,577)
Improvements other
than buildings (20,714,568) - (20,714,568) - (2,776,048) - (23,490,616)
Machinery and equipment (7,600,927) - (7,600,927) - (570,768) 4,065 (8,167,630)
Infrastructure (76,917,165) - (76,917,165) - (5,441,266) 153,671 (82,204,760)
Equipment - Internal
service fund (4,730,926) - (4,730,926) - (340,524) 434,730 (4,636,720)
Total accumulated
depreciation (154,970,002) - (154,970,002) - (12,237,767) 592,466 (166,615,303)
Capital assets, being
depreciated, net 274,823,589 - 274,823,589 831,924 (10,973,865) (239,935) 264,441,713
Capital assets, net -
Governmental Activities 475,457,375$ (417,845)$ 475,039,530$ -$ (8,841,311)$ (442,047)$ 465,756,172$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 62 -
5. CAPITAL ASSETS (CONTINUED):
A summary of changes in capital assets at June 30, 2013, was as follows:
Primary Government - Business-type Activities
Balance at Balance at
July 1, 2012 Additions Deletions June 30, 2013
Capital assets, not
eing depreciated:
Lan 53,150,057$ -$ -$ 53,150,057$
Total capital assets,
not being depreciate 53,150,057 - - 53,150,057
Capital assets, being
eing depreciated:
Buildings an
improvements 25,995,309 736,711 (36,274) 26,695,746
Machinery and equipment 6,350,930 21,195 (206,144) 6,165,981
Total capital assets,
eing depreciate 32,346,239 757,906 (242,418) 32,861,727
Less accumulate
depreciation for:
Buildings an
improvements (6,394,921) (965,922) 19,961 (7,340,882)
Machinery and equipment (3,434,383) (794,647) 201,411 (4,027,619)
Total accumulate
depreciation (9,829,304) (1,760,569) 221,372 (11,368,501)
Capital assets, being
depreciated, net 22,516,935 (1,002,663) (21,046) 21,493,226
Capital assets, net -
Business-type Activities 75,666,992 (1,002,663) (21,046) 74,643,283
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 63 -
5. CAPITAL ASSETS (CONTINUED):
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 1,974,788
Housing and redevelopment 1,233,093
Public safety 136,239
Public works 5,968,582
Parks, recreation and culture 2,584,541
Depreciation expenses for internal service funds is charged
to various functions based on usage of capital assets 340,524
Total depreciation expense - governmental activities $ 12,237,767
Business-type Activities:
Desert Willow Golf Course $ 1,303,382
Parkview Office complex 457,187
Total depreciation expense - business-type activities $ 1,760,569
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 64 -
6. LONG-TERM LIABILITIES:
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2013:
Primary Government - Governmental Activities
Balance Balance Due Within
July 1, 2012 Additions Reductions June 30, 2013 One Year
Special assessment debt
with government
commitment 1,624,000$ -$ (35,000)$ 1,589,000$ 36,000$
Limited obligation
improvement bonds 2,659,000 - (138,000) 2,521,000 139,000
Lease revenue bonds 4,955,000 - (145,000) 4,810,000 155,000
Claims and judgments
payable 980,758 46,639 (280,605) 746,792 320,000
Compensated absences
payable 2,287,466 1,648,882 (1,348,818) 2,587,530 600,000
Total 12,506,224$ 1,695,521$ (1,947,423)$ 12,254,322$ 1,250,000$
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, 2012 Additions Reductions June 30, 2013 One Year
Capital leases 2,291,358$ -$ (540,275)$ 1,751,083$ 565,953$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 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 $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds will be used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential obligation to
provide additional funds to pay the debt service, therefore these bonds are reported as special
assessment debt with government commitment. Bond maturities begin September 2, 2007, and
continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The
City of Palm Desert is the only bondholder on record of the bonds.
The future debt service requirements on the Highlands Undergrounding Assessment District
No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:
Year Ending
June 30, Principal Interest Total
2014 36,000$ 79,677$ 115,677$
2015 37,000 77,997 114,997
2016 39,000 76,221 115,221
2017 41,000 74,320 115,320
2018 43,000 72,293 115,293
2019 - 2023 251,000 326,347 577,347
2024 - 2028 320,000 254,153 574,153
2029 - 2033 411,000 160,912 571,912
2034 - 2037 411,000 43,701 454,701
1,589,000$ 1,165,621$ 2,754,621$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 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 $2,015,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A
(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2014 92,000$ 46,680$ 138,680$
2015 97,000 43,845 140,845
2016 92,000 41,010 133,010
2017 97,000 38,175 135,175
2018 92,000 35,340 127,340
2019 - 2023 455,000 135,375 590,375
2024 - 2028 475,000 65,775 540,775
2029 - 2030 202,000 6,060 208,060
,, , ,,
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 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 $1,136,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B
(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2014 47,000$ 26,865$ 73,865$
2015 49,000 25,425 74,425
2016 50,000 23,940 73,940
2017 52,000 22,410 74,410
2018 53,000 20,835 73,835
2019 - 2023 278,000 79,590 357,590
2024 - 2028 277,000 37,155 314,155
2029 - 2030 113,000 3,435 116,435
919,000$ 239,655$ 1,158,655$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 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 Series 2009 bonds consist of $5,225,000 Serial Variable Rate Bonds with interest payable on a
monthly basis based on a weekly rate period based on the USD-LIBOR-BBA 1-month interest rate.
The City has entered into a swap agreement to effectively fix the interest rate with a floor of 1.93%
and an interest rate cap of 5.25%. Principal payments are due on September 1 of each year. Bond
maturities commenced on September 1, 2010, and will continue annually through
September 1, 2029.
On June 14, 2012 the First Amendment to the Reimbursement Agreement between the City of
Palm Desert and Wells Fargo Bank, National Associations was executed. The first amendment of
the reimbursement agreement extended the letter of credit associated with the bonds for an
additional three (3) years; from August 30, 2012 to August 30, 2015. No other material changes
were executed with this first amendment.
The future debt service requirements computed at a variable rate of 0.24140% at June 30, 2013 on
the Lease Revenue Bonds Series 2009 are as follows:
Year Ending
June 30, Principal Interest Total
2014 155,000$ 11,301$ 166,301$
2015 170,000 10,896 180,896
2016 180,000 10,466 190,466
2017 190,000 10,011 200,011
2018 205,000 9,523 214,523
2019 - 2023 1,260,000 38,984 1,298,984
2024 - 2028 1,760,000 20,529 1,780,529
2029 - 2030 890,000 1,475 891,475
4,810,000$ 113,185$ 4,923,185$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 69 -
6. LONG-TERM LIABILITIES (CONTINUED):
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, 2013, total estimated workers' compensation and
general liability claims payable, including a provision for incurred but not reported claims, were
$640,328 and $106,464, respectively, for a total claims and judgments payable of $746,792.
Changes in claims liabilities during the past two years are as follows:
June 30, 2012 June 30, 2013
Claims payable - Beginning of Yea 470,867$ 980,758$
Incurred claims (including IBNR)
and changes in estimates 995,009 46,639
Claims payments (485,118) (280,605)
Claims payable - End of Yea 980,758$ 746,792$
Business-type Activities - Capital Leases
Obligations under capital leases are as follows:
Wells Fargo Financial Leasing, Inc. - The present value of the
minimum lease payment on the Solorider - ADA Accessible Golf Cart
was capitalized at $11,590 using an interest rate of 7.71%. The lease is
payable in 48 monthly installments of $281 beginning on August 15,
2010. There is a purchase option price of $1 at the end of the lease
which will be paid on August 15, 2013. $ 281
PNCEF, LLC dba PNC Equipment Finance - The present value of the
minimum lease payment on the Toro Greens mowers and equipment
lift was capitalized at $78,329 using an interest rate of 4.60%. Lease is
payable in 48 monthly installments of $1,789 beginning December 15,
2010. There is a $1 bargain purchase option (Termination Amount)
which will be exercised upon the expiration of the lease. 29,352
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 70 -
6. LONG-TERM LIABILITIES (CONTINUED):
Business-type Activities - Capital Leases (Continued)
De Lage Lande Public Finance LLC - The present value of the
minimum lease payment on the Club Car Golf Carts was capitalized at
$738,639 using an interest rate of 4.81%. Lease is payable in 48
monthly installments of $13,686 beginning December 15, 2010. A
balloon payment in the amount of $172,210 is due on January 1, 2015. $ 385,369
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%. Lease is payable in
48 monthly installments of $8,706 beginning June 15, 2011. 170,403
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. 1,126,859
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. 30,848
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. 7,971
Present value of net minimum lease payments 1,751,083
Less: current portion (565,953)
$ 1,185,130
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 71 -
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, 2013:
Minimum
Year Ending Lease
June 30, Payments
2014 631,397$
2015 686,979
2016 340,936
2017 199,988
1,859,300
Less: amounts representing interest (108,217)
Present value of net minimum lease
payments 1,751,083$
The assets acquired through capital lease are as follows:
Machinery and equipment $ 2,912,576
Less: accumulated depreciation (1,261,763)
$ 1,650,813
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT:
Objective:
The Palm Desert Financing Authority executed an interest rate swap agreement on August 31, 2009
with swap provider Wells Fargo Bank, N.A (counterparty) in connection with the issuance of the
$5,225,000 Palm Desert Financing Authority Energy Independence Program Variable Rate
Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). The Swap Agreement is a five
year swap agreement scheduled to terminate on September 1, 2014. The swap establishes an
interest rate floor of 1.93% and an interest rate cap of 5.25% adjusted weekly every Thursday at the
one month USD-LIBOR-BBA rate for that period.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 72 -
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT (CONTINUED):
Details on the swap agreement are as follows:
Original Initial
Notional Interest Rate Termination Effective
Amount Range Issue Date Date
$ 5,225,000 1.93% - 5.25% Wells Fargo 09/01/2014 08/31/2009
Terms:
Under the swap agreement, the City will make a monthly interest payment at the variable rate
between 1.93% and 5.25%. The City will receive a variable rate interest payment for those variable
interest rates in excess of the 5.25% cap and makes a payment if the variable rate is less than
1.93%. The rate is adjusted weekly every Thursday at the 1-Month USD-LIBOR-BBA rate. The
swap is for a total notional amount of $5,225,000 and will terminate on September 14, 2014.
Summary of Activities in Cash Flow Hedging Derivative Instrument:
Outstanding Fair Value Fair Value
Notional at Change in at
Amount June 30, 2012 Fair Value June 30, 2013
$ 4,810,000 $ 169,120 $ (70,970) $ 98,150
As of June 30, 2013, the fair value of $98,150 is reported as a deferred asset from derivative
instruments and a liability from derivative instruments in the Statements of Net Position.
Credit Risk:
As of June 30, 2013, the City was exposed to credit risk because the swap had a negative fair
value. However, should interest rates change and the fair value of the swap become positive, the
City would not be exposed to credit risk in the amount of the derivative’s fair value.
The swaps counterparty, Wells Fargo Bank N.A., have the following credit ratings:
Standards
& Poor Moody’s
Wells Fargo Bank N.A. AA- Aa3
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 73 -
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT (CONTINUED):
Basis Risk:
The swaps do expose the City to basis risk, which refers to a mismatch between the interest rate
received from the swap contract and the interest paid on the variable rate payments to be made on
the debt. The City pays the counterparty a variable interest rate ranged between 1.93% and 5.25%
and receives a variable rate in excess of the 5.25% cap, based on the one month
UDS-LIBOR-BBA. The City is at risk that the variable interest rate calculated on the debt is less
than the floor of 1.93%.
Termination Risk:
The swaps may be terminated by the City or the counterparty if the other party fails to perform
under the terms of the swap agreements. In addition, the City has the option to terminate the swaps
upon proper notification to the counterparty. If the swaps are terminated, the City would
prospectively pay the variable rates on the portion of the outstanding bonds related to the swap
agreements. The termination of the swap agreements could therefore increase the City’s total debt
service. Also, if at the time of the termination, the swaps have a negative fair value, the City would
be liable to the counterparty for a payment equal to such negative fair value. As of June 30, 2013
the swap had a negative fair value of $98,150.
Swap Payments and Associated Debt:
Using a variable rate range between 1.93% and 5.25% the Series 2009 Financing Authority Energy
Independence Program Variable Rate Demand Lease Revenue Bonds, as of June 30, 2013, debt
service requirements of the Certificates and the swap payments through the termination date of
September 1, 2015, assuming a current interest rate of 1.93% are as follows. As rates vary, the
variable rate interest payments and net swap payments will vary.
Year Ending Variable Rate Debt Interest Rate Fixed Debt
June 30, Principal Interest Total Swap, Net Service
2014 $ 155,000 $ 9,098 $ 164,098 $ 90,350 $ 245,350
2015 170,000 8,773 178,773 15,261 185,261
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 74 -
8. 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 $10,713,394 held by NRS and
ICMA of the 457 Plan are not reflected in the City’s financial statements.
9. PENSION PLAN:
a. Plan Description:
The City of Palm Desert contributes to the California Public Employees Retirement System
(PERS), an agent multiple-employer public employee defined benefit pension plan. PERS
provides retirement and disability benefits, annual cost-of-living adjustments and death benefits
to plan members and beneficiaries. PERS acts as a common investment and administrative
agent for participating public entities within the State of California. Benefit provisions and all
other requirements are established by state statute and city ordinance. Copies of PERS' annual
financial report may be obtained from their executive office: 400 Q Street,
Sacramento, CA 95814.
b. Funding Policy:
Participants are required to contribute 8% of their annual covered salary. The Participants
contribute 100% of required PERS participant share. The City is required to contribute at an
actuarially determined rate; the rate for fiscal year 2012-2013, was 24.547% for non-safety
employees of annual covered payroll. The contribution requirements of plan members and the
City are established and may be amended by PERS.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 75 -
9. PENSION PLAN (CONTINUED):
c. Annual Pension Cost:
For 2013, the City's annual pension cost of $3,470,633 for PERS was equal to the City's
required and actual contributions. The required contribution was determined as part of the
June 30, 2010, actuarial valuation using the entry age normal actuarial cost method. The
actuarial assumptions included: a) 7.75% investment rate of return (net of administrative
expenses), b) projected annual salary increases of 3.25% to 14.45% depending on age, service
and type of employment, and c) 3.25% per year cost-of-living adjustments. Both a) and
b) included an inflation component of 3.05%. The actuarial value of PERS’ assets was
determined using techniques that smooth the effects of short-term volatility in the market value
of investments over a three-year period (smoothed market value). PERS' unfunded actuarial
accrued liability is being amortized as a level percentage of projected payroll on a closed basis
that depends on the plan's entry into PERS. The remaining amortization period was 20 years.
d. Three-Year Trend Information for PERS:
Fiscal Annual Pension Percentage Net Pension
Year Cost (APC) APC Contributed Obligation
6/30/11 $ 3,432,588 100% $ -
6/30/12 3,527,962 100% -
6/30/13 3,470,633 100% -
e. Schedule of Funding Progress for PERS:
As of June 30, 2012, the most recent actuarial valuation date, the plan was 69.8% funded. The
actuarial accrued liability for benefits was $99.23 million, and the actuarial value of assets was
$69.23 million, resulting in an unfunded actuarial accrued liability (UAAL) of $30.00 million.
The covered payroll (annual payroll of active employees covered by the plan) was
$10.75 million, and the ratio of the UAAL to the covered payroll was 278.9%.
The schedule of funding progress, presented as required supplementary information following
the notes to basic financial statements, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 76 -
10. FUND BALANCE:
Fund Balance
In the fund financial statements, reserves segregate portions of fund balances that are either not
available or have been earmarked for specific purposes. The various reserves established as of
June 30, 2013, were as follows:
Low
Moderate
Prop Housing
Fire Tax Asset Othe
General Special Special Governmental
Fund Revenue Revenue Funds Total
Nonspendable:
Advances 5,333,800$ -$ 22,352,288$ 10,735,200$ 38,421,288$
Inventor 28,627 - - 3,371 31,998
Loans and notes
receivables 1,688,436 - 6,806,458 5,207,183 13,702,077
Prepaid costs 627,387 924,140 1,900 2,862 1,556,289
Property held for resale - - 3,285,798 - 3,285,798
Restricted for:
Capital projects - - - 23,894,106 23,894,106
Debt service - - - 143,699 143,699
Low income housing - - 1,046,492 10,922,120 11,968,612
Public facilities - - - 3,057,030 3,057,030
Public safet - 1,658,515 - 835,091 2,493,606
Special programs - - - 8,775,797 8,775,797
Street related purposes - - - 26,392,538 26,392,538
Committed to:
Aquatic cente - - - 2,132,321 2,132,321
Capital asset replacement - - - 10,637,043 10,637,043
Energy loan progra - - - 2,880,339 2,880,339
Assigned to:
Capital projects - - - 5,842,449 5,842,449
Property acquistio - - - 420,387 420,387
Community contingenc 465,000 - - - 465,000
Debt service 2,587,530 - - - 2,587,530
Public facilities - - - 5,035,892 5,035,892
Special programs 23,733 - - 543,215 566,948
Street related purposes 148,498 - - 2,303,026 2,451,524
Unassigned 65,311,919 - - - 65,311,919
Totals 76,214,930$ 2,582,655$ 33,492,936$ 119,763,669$ 232,054,190$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 77 -
10. FUND BALANCE (CONTINUED):
Fund Balance (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 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, 2013
See independent auditors’ report.
- 78 -
11. RISK MANAGEMENT:
a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement:
The City of Palm Desert a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 122 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 9-member Executive Committee.
b. Self-Insurance Programs of the Authority:
Each member pays an annual contribution to cover estimated losses for the coverage period.
This initial funding is paid at the beginning of the coverage period. After the close of the
coverage period, outstanding claims are valued. A retrospective deposit computation is then
conducted annually thereafter until all claims incurred during the coverage period 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.
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 non-police 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 in excess of $750,000 up to the
reinsurance attachment point of $5 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, 2013
See independent auditors’ report.
- 79 -
11. RISK MANAGEMENT (CONTINUED):
b. Self-Insurance Programs of the Authority (Continued):
Liability (Continued)
(5) Costs of covered claims for $5 million to $10 million are paid under a reinsurance contract
subject to a $2.5 million annual aggregate deductible. The $2.5 million annual aggregate
deductible is fully covered under a separate policy; as such no portion of it is retained by the
Authority. Costs of covered claims from $10 million to $15 million are paid under two reinsurance
contracts subject to a combined $3 million annual aggregate deductible. The $3 million annual
aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from
$15 million up to $50 million are covered through excess insurance policies.
The overall coverage limit for each member including all layers of coverage is $50 million per
occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a
pooled sub-limit of $25 million per occurrence. This $25 million subsidence sub limit is composed
of (a) $5 million retained within the pool’s SIR, (b) $10 million in reinsurance and (c) $10 million
in excess insurance. The excess insurance layer has a $10 million annual aggregate.
Workers’ Compensation
In the workers’ compensation program claims are pooled separately between public safety
(police and fire) and non public-safety exposures. (1) The payroll of each member is evaluated
relative to the payroll of other members. A variable credibility factor is determined for each
member, which establishes the weight applied to payroll and the weight applied to losses
within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first
layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second
layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of
$2 million are distributed based on the outcome of cost allocation within the first and second
loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a
reinsurance policy. Protection is provided per statutory liability under California Worker’s
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, 2013
See independent auditors’ report.
- 80 -
11. 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 $210,042,437. There is a
$5,000 deductible per occurrence except for non-emergency vehicle insurance, which has
$1,000 deductible. Premiums for the coverage are paid annually and are not subject to
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 2012-13.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 81 -
12. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES:
Unearned Revenues
Major Governmental Funds
Low and Moderate Housing Asset Special Revenue Fund
Other amounts reported as unearned revenues include $6,796 for damages on purchased home
Other Governmental Funds
Special Revenue Funds
Gas Tax fund has $739,630 of Prop 1B funds that are deemed unearned until expenditures are
incurred.
$20,512 of grant funds are deemed unearned until expenditures are incurred in the Recycling Fund.
$26,190 of grant funds are deemed unearned until expenditures are incurred in the Public Safety
Police Grants Fund.
$10,402 represents the unused portions of prepaid aquatic fees in the Aquatic Center Fund.
Housing Authority fund has other amounts reported as unearned revenues include $13,420 for
prepaid rents.
Capital Projects Fund
Capital Projects Reserve fund has $76,238 of unearned revenue represents deposits from
developers for street improvements, as the funds have not been spent as of June 30, 2013.
Business-type Activities
The balance of $296,090 represents the unused portions of prepaid golf fees, value of unredeemed
gift certificates and unearned rent.
Component Unit
The balance of $47,846 represents the unused portions of prepaid banquets.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 82 -
12. 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, 2013, 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 $212,427 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, 2013, $48,016 in interest has been accrued.
Recognition of the interest revenue has been reported as unavailable until it becomes due.
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.
Other Governmental Funds
Special Revenue Funds
Measure A fund has $355 of unavailable revenue.
Loans receivable in the amount of $5,755 for home improvement loans are reported as unavailable
in the Community Development Block Grant Fund.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 83 -
12. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES (CONTINUED):
Deferred Inflows of Resources (Continued)
Other Governmental Funds (Continued)
Special Revenue Funds (Continued)
Interest accrued on loans of $212,262 on loans receivable through the City’s EIP Program is
reported as unavailable (see Note 3).
Debt Service Fund
Assessment receivables in the amount of $1,417,094 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.
13. OTHER POST-EMPLOYMENT BENEFITS:
a. Plan Description:
In addition to the pension benefits described in Note 9, 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, 2013
See independent auditors’ report.
- 84 -
13. 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 ($112 in 2012 and $115 in 2013) for these employees.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 85 -
13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
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, 2013, the City
contributed $923,645 to the plan, which included $448,273 of the annual required contribution
and $475,372 pay-as-you-go premiums. The purpose of these contributions is to cover the
required City contribution rate of 2.96% of annual covered payroll (annual payroll of active
employees covered by the plan) and to prefund benefits. As a result, the City calculated and
recorded a Net OPEB Asset, representing the difference between the Annual Required
Contribution (ARC) and actual contributions, as presented below:
Annual required contribution (ARC) 448,273$
Interest on Net OPEB obligation (asset) (583,478)
Adjustment to ARC 516,021
Annual OPEB cost 380,816
Contribution made (net of $838,424 reimbursement) (85,221)
Decrease in Net OPEB obligation (asset) 295,595
Net OPEB obligation (asset) at June 30, 2012 (8,264,566)
Net OPEB obligation (asset) at June 30, 2013 (7,968,971)$
The contribution rate of 2.96% is based on the ARC of $448,273, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis is projected to cover the annual
normal cost and the amortization of unfunded actuarial accrued liabilities (or funding excess)
over a thirty year period.
c. Annual OPEB Cost and Net OPEB Obligation (Asset):
For fiscal year 2013, the City’s annual OPEB cost (expense) was $380,816. Information on the
annual OPEB cost, percentage of Annual OPEB Cost contributed, and Net OPEB Obligation is
available since the implementation of GASB 45, are presented below:
Actual Percentage of
Fiscal Annual Contribution Annual Net OPEB
Year OPEB (Net of OPEB Cost Obligation
Ended Cost Adjustments) Contributed (Asset)
6/30/2010 $ 310,156 $ 644,603 208% $ (7,305,057)
6/30/2011 333,028 762,588 229% (7,734,617)
6/30/2012 261,307 791,256 303% (8,264,566)
6/30/2013 380,816 85,221 22% (7,968,971)
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 86 -
13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
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.
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, 2013, was 24 years.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 87 -
14. SPECIAL ASSESSMENT DEBT:
Below is a summary of the changes in the special assessment bonds payable:
Balance at Payments and Balance at
July 1, 2012 Additions Reductions June 30, 2013
2003 Assessment Revenue Bonds 2,675,000$ -$ (215,000)$ 2,460,000$
AD 98-1 Limited Obligation
Refunding Bonds 540,000 - (65,000) 475,000
CFD 2005-1 Special Tax
Bonds Series 2006A 63,455,000 - (1,310,000) 62,145,000
AD 2004-2 Limited Obligation
Improvement Bonds 27,855,000 - (595,000) 27,260,000
2008 Special Tax Refunding Bonds 6,630,000 - (935,000) 5,695,000
101,155,000$ -$ (3,120,000)$ 98,035,000$
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.
2003 Assessment Revenue Bonds
In June 2003, the Palm Desert Financing Authority issued $4,423,000 in 2003 Assessment
Revenue Bonds. The proceeds were used to purchase three series of limited obligation
improvement bonds issued by the City in connection with the financing and refinancing of certain
improvements of benefit to property within the City’s Assessment District No. 94-2 (Sunterrace),
Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Undergrounding Assessment
District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide
funds for public improvements in the respective assessment districts.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 88 -
14. SPECIAL ASSESSMENT DEBT (CONTINUED):
2003 Assessment Revenue Bonds (Continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2014 215,000$ 121,176$ 336,176$
2015 230,000 110,604 340,604
2016 155,000 101,286 256,286
2017 160,000 93,489 253,489
2018 170,000 85,154 255,154
2019 - 2023 740,000 297,694 1,037,694
2024 - 2028 640,000 130,272 770,272
2029 150,000 4,031 154,031
2,460,000$ 943,706$ 3,403,706$
As of June 30, 2013, the principal amounts to be repaid by each assessment district to pay off the
loans from the Financing Authority are as follows:
Assessment District 94-2 150,000$
Assessment District 94-3 655,000
Assessment District 01-1 1,660,000
2,465,000$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 89 -
14. SPECIAL ASSESSMENT DEBT (CONTINUED):
Assessment District 98-1 Limited Obligation Refunding Improvement Bonds
The bonds were issued in an original amount of $2,955,000 in February 2004, to redeem and
defease the outstanding limited obligation improvement bonds of Assessment District No. 98-1,
which were issued in 1998. The bonds are secured by unpaid assessments on parcels within the
District.
Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the
scheduled debt service requirements are to be included on the regular county tax bills for the
assessed parcels for which there are unpaid assessments. Interest rates vary from 1.5% to 5.1%
with interest payable semi-annually on March 2 and September 2, with principal maturing annually
on September 2.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2014 70,000$ 21,335$ 91,335$
2015 70,000 18,159 88,159
2016 80,000 14,640 94,640
2017 80,000 10,790 90,790
2018 85,000 6,715 91,715
2019 90,000 2,295 92,295
475,000$ 73,934$ 548,934$
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, 2013
See independent auditors’ report.
- 90 -
14. 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 $50,000,000, from a pledge of net taxes derived
from special taxes to be levied by the District on real properties within the boundaries of the
District from the net proceeds of any foreclosure actions brought following delinquency in the
payment of the special taxes, and from amounts held in certain funds under the indenture. Interest
rates vary from 3.875% to 5.20% with interest payable semi-annually on March 1 and September
1, with principal maturing annually on September 1.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2014 1,370,000$ 3,204,685$ 4,574,685$
2015 1,430,000 3,140,658 4,570,658
2016 1,500,000 3,072,470 4,572,470
2017 1,570,000 2,999,867 4,569,867
2018 1,645,000 2,922,021 4,567,021
2019 - 2023 9,525,000 13,276,441 22,801,441
2024 - 2028 12,205,000 10,504,399 22,709,399
2029 - 2033 15,795,000 6,818,120 22,613,120
2034 - 2038 17,105,000 2,055,230 19,160,230
62,145,000$ 47,993,891$ 110,138,891$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 91 -
14. 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 $14,925,000 carry an interest rate of 5.10% and mature September 2, 2037.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2014 590,000$ 1,337,825$ 1,927,825$
2015 615,000 1,312,213 1,927,213
2016 645,000 1,284,800 1,929,800
2017 670,000 1,255,535 1,925,535
2018 700,000 1,224,360 1,924,360
2019 - 2023 4,030,000 5,584,493 9,614,493
2024 - 2028 5,110,000 4,469,888 9,579,888
2029 - 2033 6,535,000 2,999,438 9,534,438
2034 - 2038 8,365,000 1,109,378 9,474,378
27,260,000$ 20,577,930$ 47,837,930$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 92 -
14. 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 $16,260,000 principal amount of the Palm Desert Financing
Authority 1997 Revenue Bonds. These bonds were issued pursuant to the provisions of the
Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2,
Title 5, of the Government Code of the State of California.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2014 965,000$ 186,930$ 1,151,930$
2015 1,000,000 154,008 1,154,008
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 - 2021 525,000 31,900 556,900
5,695,000$ 615,238$ 6,310,238$
Bond Reserve Requirements
At June 30, 2013, the fund balance reserve requirements and actual reserve balances were as
follows:
Requirement Actual
Assessment District 98-1 47,500$ 96,540$
2003 Financing Authority Revenue Bonds 246,000 318,578
CFD 2005-1 Special Tax Bonds 4,574,685 4,613,561
Assessment District 29 1,929,800 1,945,389
2008 Special Tax Refunding Bonds 985,974 1,052,699
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 93 -
15. CONDUIT DEBT OBLIGATIONS:
2003 Series A - $22,310,000 Lease Revenue Bonds
In December 2003, the Palm Desert Financing Authority (Authority) issued $22,310,000 in Lease
Revenue Bonds. The proceeds of the Bonds were used to: a) finance the construction of a County
animal shelter and related facilities located in the unincorporated area of Thousand Palms,
California; b) finance construction of certain County medical clinic facilities located in Mecca,
California; c) refund the Palm Desert Financing Authority Lease Revenue Bonds Series 1996;
d) acquire a debt service reserve insurance policy; e) fund capitalized interest on the bonds; and
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, 2013, the outstanding amount was
$17,275,000.
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, 2013,
the outstanding amount was $56,655,000.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 94 -
16 OTHER DISCLOSURES:
The Palm Desert Recreational Facilities Corporation has a deficit of $1,547,785, 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 $166,217,088, which will be funded
through future property taxes collected by the County under the direction of the State. The State of
California is the responsible body for the elimination of this deficit.
17. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS:
Construction Commitments
Primary Government
Current
Yea Spent Remaining
Spent to Date Commitment
Parks and recreation 211,171$ 72,580$ 385,004$
Low income housing 1,735 6,455 115,982
Street resurfacing 7,275 - 3,427,625
Street improvements 893,512 539,001 2,859,724
Freeway on-ramp improvements 46,818 1,610,151 77,336
Drainage 922,463 84,273 39,592
Desert Willow capital improvements 410,177 133,678 39,640
Public safety building improvements 1,039,930 - 451,293
Recycle projects 54,170 11,291 165,568
Community development planning 145,763 23,400 111,980
CDBG 7,525 19,570 100,341
3,740,539 2,500,399 7,774,085
Miscellaneous non construction 74,067 93,147 163,381
3,814,606$ 2,593,546$ 7,937,466$
Project
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 95 -
17. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS (CONTINUED):
Construction Commitments (Continued)
Fiduciary Funds
Current
Yea Spent Remaining
Spent to Date Commitment
Low income housing 230,727$ 111,826$ 239,526$
Street improvements - 14,829 172,072
Aquatic Center construction 14,000 8,565,527 983,724
244,727$ 8,692,182$ 1,395,322$
Project
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES:
The 2011 Dissolution Act required each California redevelopment agency to suspend nearly all
activities except to implement existing contracts, meet already-incurred obligations, preserve its
assets and prepare for impending dissolution.
In 2012 AB 1484 made technical and substantive amendments to the Dissolution Act based on
experience to-date at the state and local level in implementing the Dissolution Act.
Under the Dissolution Act, each California redevelopment agency (each a “Dissolved RDA”) was
dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA,
together with other designated entities, have initiated the process under the Dissolution Act to
unwind the affairs of the Dissolved RDA. A successor agency was created for each Dissolved RDA
which is the sponsoring community of the Dissolved RDA unless it elected not to serve as the
successor agency. On August 25, 2011, the City elected to serve as the Successor Agency to the
Palm Desert Redevelopment Agency (the Successor Agency).
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, added by AB 1484, 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 96 -
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES (CONTINUED):
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 and oversight boards 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 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. AB 1484 modified and provided some
clarifications on the treatment of housing assets under the Dissolution Act. 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.
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 in fiscal
year 2011-2012. In fiscal year 2012-2013, the assets and obligations of the former low and
moderate income housing fund were transferred to the Low and Moderate Income Housing Asset
Special Revenue Fund. The transfer was reported as an extraordinary loss in the financial
statements of the City. 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 and AB 1484 also establish roles for the County Auditor-Controller (the
“CAC”), the California Department of Finance (the “DOF”) and the California State Controller’s
office in the dissolution process and the satisfaction of enforceable obligations of the Dissolved
RDAs.
The County Auditor-Controller 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 deposit in the RPTTF fund is to be used
to pay to the Successor Agency the amounts due on the Successor Agency’s enforceable
obligations received in January and June.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 97 -
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES (CONTINUED):
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 six month period. The ROPS is submitted to the CAC & DOF for
consideration. The CAC will make payments to the Successor Agency from the RPTTF fund based
on the ROPS amount approved by the DOF. The ROPS is prepared in advance for the enforceable
obligations due over the next six months.
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 to be 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 County of Riverside based on the final
determination by the Department of Finance.
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 on the ROPS, as an enforceable obligation,
provided the oversight board makes a finding that the loan was for legitimate redevelopment
purposes. Loan repayments could begin in the 2014-15 fiscal year as governed by the criteria in the
health and code safety section. When the repayments begin, 20% of the repayments of the loan
agreement amounts are to be allocated to the Low Moderate Housing Asset Special Revenue Fund.
At June 30, 2013, 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.
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, 2013
See independent auditors’ report.
- 98 -
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES (CONTINUED):
Management believes, in consultation with legal counsel, that the obligations of the Dissolved
RDA due to the City, with respect to loans, are valid enforceable obligations payable by the
Successor Agency under the requirements of the Dissolution Act and AB 1484 upon approval by
the oversight board and Department of Finance. It is reasonably possible that a legal determination
may be made at a later date by an appropriate judicial authority that would resolve this issue
unfavorably to the City.
19. 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:
Notes Receivable
On April 21, 2003, the Agency entered into a loan agreement with The Regents of the University
of California, on behalf of its Riverside Campus, to loan various amounts over a period of time, not
to exceed an aggregate amount of $2,000,000. Proceeds of the loan are to be used for capital
improvements at the University’s Riverside Campus. The outstanding principal balance and
interest on the note is due in five annual payments beginning on July 15, 2009. As of
June 30, 2013, the amount outstanding on the loan is $400,000.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 99 -
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Advances To/From the City of Palm Desert
The composition of advances as of June 30, 2013, 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
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.
AB 1484 specifies the actions to be taken and the method of repayment for advances by the
Successor Agency (former Redevelopment Agency) to the various funds of the City. Upon
application and approval by the successor agency and approval by the oversight board, loan
agreements (advances) 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 from origination at the interest rate earned by funds deposited into
the Local Agency Investment Fund.
The advances are to be repaid with a defined schedule over a reasonable term of years at an interest
rate not to exceed the interest rate earned by the funds deposited into the Local Agency Investment
Fund. The annual advances repayments are subject to certain limitations. Advance repayments
shall not be prior to the 2014-2015 fiscal year, are subject to a formula distribution, and have a
lower priority for repayment as described in AB 1484 (Health and Safety Code Section
34191.4(2)(A).
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 100 -
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Advances To/From the City of Palm Desert (Continued)
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). Management believes, in consultation with legal counsel, that the obligations of the
Dissolved RDA due to the City are valid enforceable obligations payable by the Successor Agency
under the requirements of the Dissolution Act and AB 1484 and has not recorded an allowance for
uncollectible advances. The City’s position on this issue is not a position of settled law and there is
considerable legal uncertainty regarding this issue. It is reasonably possible that a legal
determination may be made at a later date by an appropriate judicial authority that would not be in
favor of the City.
Capital Assets
Adjuste
Balance at Prior Period Balance a Balance at
July 1, 2012 Adjustments July 1, 2012 Additions Deletions June 30, 2013
Capital assets, not
eing depreciated:
Lan 56,727,277$ 417,845$ 57,145,122$ -$ -$ 57,145,122$
Construction-in-progress - - - 214,571 - 214,571
Total capital assets, no
eing depreciated 56,727,277 417,845 57,145,122 214,571 - 57,359,693
Capital assets, being
depreciated:
Buildings 2,525,364 - 2,525,364 - - 2,525,364
Improvements othe
than buildings 5,048,117 - 5,048,117 - - 5,048,117
Total capital assets,
eing depreciated 7,573,481 - 7,573,481 - - 7,573,481
Less accumulated
depreciation for:
Buildings (297,790) - (297,790) (63,134) - (360,924)
Improvements othe
than buildings (3,315,608) (3,315,608) (252,405) - (3,568,013)
Total accumulated
depreciation (3,613,398) - (3,613,398) (315,539) - (3,928,937)
Capital assets, being
depreciated, net 3,960,083 - 3,960,083 (315,539) - 3,644,544
Capital assets, net -
Governmental Activities 60,687,360 417,845 61,105,205 (100,968) - 61,004,237
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 101 -
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2013, was as follows:
Balance Additions/ Repayments/ Balance Due Within
July 1, 2012 Accretion Reductions June 30, 2013 One Year
Project Area No. 1
2002A TARRBs, $22,070,000 22,070,000$ -$ -$ 22,070,000$ -$
2003 TARBs, $19,000,000 19,000,000 - - 19,000,000 -
2004A TARRBs, $24,945,000 17,650,000 - (1,155,000) 16,495,000 1,210,000
2006 A & B TARBs, $62,320,000 49,100,000 - (2,595,000) 46,505,000 2,745,000
2007A TARRBs, $32,600,000 19,925,000 - (2,955,000) 16,970,000 3,100,000
Project Area No. 2
2002A TARRBs, $17,310,000 11,180,000 - (795,000) 10,385,000 835,000
2003 TARBs, $15,745,000 15,745,000 - - 15,745,000 -
2006 A-D TARBs, $67,618,213 58,203,831 987,477 (1,970,000) 57,221,308 1,700,353
Project Area No. 3
2003 TARBs, $4,745,000 3,805,000 - (115,000) 3,690,000 120,000
2006 A-C TABs, $15,059,526 15,737,133 250,155 (245,000) 15,742,288 254,760
Project Area No. 4
1998 TARBs, $11,020,000 8,090,000 - (140,000) 7,950,000 145,000
2001 TARBs, $15,695,000 13,250,000 - (345,000) 12,905,000 365,000
2006A TARBs, $19,273,089 19,331,832 335,841 (690,000) 18,977,673 779,182
Combined Low and
Moderate Housing
2002 TARBs, $12,100,000 9,755,000 - (305,000) 9,450,000 320,000
2007 TARBs, $86,155,000 71,685,000 - (5,005,000) 66,680,000 5,235,000
Subtotal 354,527,796 1,573,473 (16,315,000) 339,786,269 16,809,295
Add: Unamortized
ond premiu 5,948,131 - (475,703) 5,472,428 -
Total 360,475,927$ 1,573,473$ (16,790,703)$ 345,258,697$ 16,809,295$
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, 2013
See independent auditors’ report.
- 102 -
19. 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. Although the powers of
successor agencies are severely restricted under the Dissolution Act in terms of ability to enter into
new contracts, California Health and Safety Code Section 34191.4, added by AB 1484, appears to
provide additional guidance and authority. 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 therefore.
Additionally, there is a statement in the Dissolution Act that expenditures made pursuant to this
provision shall constitute the creation of excess bond proceeds obligations to be paid from the
excess proceeds. As this is a new provision of law, there is considerable legal uncertainty
regarding the actual application of this provision. In any event, if remaining bond proceeds cannot
be spent in a manner consistent with the bond covenants, Section 34191.4 additionally provides
that the remaining bond proceeds must be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation. 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, 2013
See independent auditors’ report.
- 103 -
19. 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 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. Subsequent to the restructuring of MBIA, Moody’s Ratings assigned ratings to the
reinsured municipal securities based on the higher of (a) the insurance financial strength rating of
MBIA Illinois, to ‘Baa1’; or (b) the published underlying rating. Subsequent to the restructuring of
MBIA, S&P assigned its insurance financial strength rating of MBIA Illinois to ‘AA-minus’. Effective
March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee Corporation
(“NPFGC”).
National Public Finance Guarantee Corporation (formerly MBIA Illinois), an insurance subsidiary of
MBIA, which assumes the risk associated with U.S. municipal exposures, has financial strength credit
ratings of “BBB (Developing)/Baa1 (Developing)”.
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 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. After the
enactment of the Dissolution Act, it is uncertain whether the TI Cap is still in effect and, if so, how
to properly calculate whether the TI Cap has been reached. (For example, it is unclear if the
calculation should be based on the total deposit into the Redevelopment Property Tax Trust Fund
(“RPTTF”) or on the actual dollar received by the Successor Agency for enforceable obligations).
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 104 -
19. 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 satistied”.
Standard & Poor’s Ratings Services (“Standard & Poor’s”) has lowered its underlying rating from “A”
to “A-“ on the following issues of bonds issued by the Authority: (i) the Authority’s Tax Allocation
Revenue Bonds (Project Area No. 1, as Amended), 2006 Series A (the “2006A Authority Bonds”),
(ii) the Authority’s Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as Amended),
2006 Series B (Taxable) (the “2006B Authority Bonds”, and together with the 2006A Authority Bonds,
the “2006 Authority Bonds”), and (iii) the Authority’s Tax Allocation Refunding Revenue Bonds
(Project Area No. 1, as Amended), 2007 Series A (the “2007 Authority Bonds”).
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 $11,165,000 term bonds at 5.10% due April 1, 2030. Interest is payable semi-annually on April 1 and October 1. Mandatory sinking fund redemptions begin April 1, 2024. The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2014 -$ 1,114,665$ 1,114,665$
2015 - 1,114,665 1,114,665
2016 - 1,114,665 1,114,665
2017 - 1,114,665 1,114,665
2018 - 1,114,665 1,114,665
2019 - 2023 - 5,573,325 5,573,325
2024 - 2028 17,270,000 3,384,925 20,654,925
2029 - 2030 4,800,000 370,260 5,170,260
22,070,000$ 14,901,835$ 36,971,835$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 105 -
19. 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 $11,950,000 term bonds due in 2030. Interest will be payable on April 1 and
October 1 of each year beginning April 1, 2004. Principal payments will be on April 1 of the years
stated above.
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 1) are as follows:
Year Ending
June 30, Principal Interest Total
2014 -$ 950,000$ 950,000$
2015 - 950,000 950,000
2016 - 950,000 950,000
2017 - 950,000 950,000
2018 - 950,000 950,000
2019 - 2023 - 4,750,000 4,750,000
2024 - 2028 10,840,000 4,225,500 15,065,500
2029 - 2030 8,160,000 617,000 8,777,000
19,000,000$ 14,342,500$ 33,342,500$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 106 -
19. 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 $24,945,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2004 Series A. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency to refinance a portion of the
Agency’s obligations from 1995, and to fund various redevelopment capital projects within or of
benefit to the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable
semi-annually on April 1 and October 1. Principal payments will be made annually beginning
April 1, 2005.
The future debt service requirements on the 2004 Series A Tax Allocation Revenue Bonds (Project
Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2014 1,210,000$ 776,988$ 1,986,988$
2015 1,235,000 728,588 1,963,588
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 - 2023 6,460,000 1,715,250 8,175,250
2024 - 2025 3,515,000 238,750 3,753,750
16,495,000$ 5,312,601$ 21,807,601$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 107 -
19. 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
$11,320,000 carry an interest rate of 5.82% and mature April 1, 2016.
The future debt service requirements on the 2006 Series A and Series B Tax Allocation Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2014 2,745,000$ 2,422,240$ 5,167,240$
2015 2,905,000 2,262,482 5,167,482
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 - 2023 29,405,000 6,317,125 35,722,125
2024 - 2028 5,805,000 890,538 6,695,538
2029 - 2030 565,000 40,613 605,613
46,505,000$ 17,805,298$ 64,310,298$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 108 -
19. 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 $32,600,000 Serial Bonds with interest rates
ranging from 3.50% to 5.00% payable semiannually on October 1 and April 1. Bond maturities
began April 1, 2008, and continue annually through 2018.
The future debt service requirements on the 2007 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2014 3,100,000$ 794,500$ 3,894,500$
2015 3,230,000 686,000 3,916,000
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
16,970,000$ 2,559,000$ 19,529,000$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 109 -
19. 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 $17,310,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 2) 2002 Series A. The Palm Desert Financing
Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to prepay
outstanding indebtedness and to fund various redevelopment capital projects within or of benefit to
the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable semi-
annually on February 1 and August 1.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 2) are as follows:
Year Ending
June 30, Principal Interest Total
2014 835,000$ 472,353$ 1,307,353$
2015 870,000 436,113 1,306,113
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 - 2023 5,820,000 752,388 6,572,388
10,385,000$ 2,723,451$ 13,108,451$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 110 -
19. 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
2014 -$ 769,006$ 769,006$
2015 - 769,006 769,006
2016 - 769,006 769,006
2017 - 769,006 769,006
2018 - 769,006 769,006
2019 - 2023 - 3,845,031 3,845,031
2024 - 2028 5,675,000 3,264,041 8,939,041
2029 - 2033 8,175,000 1,536,875 9,711,875
2034 1,895,000 47,375 1,942,375
15,745,000$ 12,538,352$ 28,283,352$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 111 -
19. 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, 2013 is $5,788,294.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 112 -
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Continued)
The debt service requirements schedules on the 2006 Series A Tax Allocation Refunding Revenue
Bonds, Series B Tax Allocation Revenue Capital Appreciation Bonds, Series C Revenue Bonds
and Series D Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area
No. 2) do not agree to the liability for those bonds shown in the schedule of changes. These bond
issues include capital appreciation bonds, which are issued at a discount. The carrying amount of
these bonds accretes, or increases each year. The amount shown in the schedule of changes
include the accreted value to date. The future debt service requirements are as follows:
Year Ending
June 30, Principal Interest Total
2014 1,700,353$ 2,334,447$ 4,034,800$
2015 1,759,238 2,394,399 4,153,637
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 - 2023 7,476,794 11,960,266 19,437,060
2024 - 2028 10,549,808 13,186,329 23,736,137
2029 - 2033 10,365,398 10,498,181 20,863,579
2034 - 2037 15,965,047 6,139,636 22,104,683
51,433,014$ 52,848,595$ 104,281,609$
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 $2,270,000 are due in 2033.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 113 -
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3) (Continued)
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 3) are as follows:
Year Ending
June 30, Principal Interest Total
2014 120,000$ 177,953$ 297,953$
2015 120,000 173,272 293,272
2016 125,000 168,473 293,473
2017 130,000 163,348 293,348
2018 140,000 157,888 297,888
2019 - 2023 785,000 692,389 1,477,389
2024 - 2028 1,000,000 484,313 1,484,313
2029 - 2033 1,270,000 201,669 1,471,669
3,690,000$ 2,219,305$ 5,909,305$
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, 2013
See independent auditors’ report.
- 114 -
19. 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, 2013 is $1,458,813.
The future debt service requirements on the 2006 Series A Tax Allocation Revenue Bonds,
Series B Tax Allocation Revenue Capital Appreciation Bonds and Series C Subordinate Tax
Allocation Revenue Capital Appreciation Bonds (Project Area No. 3) are as follows:
Year Ending
June 30, Principal Interest Total
2014 254,760$ 571,715$ 826,475$
2015 285,721 578,154 863,875
2016 309,731 585,687 895,418
2017 329,787 601,495 931,282
2018 344,954 616,977 961,931
2019 - 2023 1,701,040 3,668,229 5,369,269
2024 - 2028 1,866,831 4,042,744 5,909,575
2029 - 2033 2,398,858 3,990,717 6,389,575
2034 - 2038 3,981,793 1,768,244 5,750,037
2039 - 2041 2,810,000 285,750 3,095,750
14,283,475$ 16,709,712$ 30,993,187$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 115 -
19. 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,
$1,785,000 of the outstanding balance was advance refunded by the issuance of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A.
The future debt service requirements on the 1998 Series Tax Allocation Revenue Bonds (Project
Area No. 4) (after defeasance) are as follows:
Year Ending
June 30, Principal Interest Total
2014 145,000$ 407,506$ 552,506$
2015 360,000 394,973 754,973
2016 375,000 376,375 751,375
2017 400,000 356,678 756,678
2018 410,000 336,005 746,005
2019 - 2023 2,415,000 1,327,950 3,742,950
2024 - 2028 3,120,000 611,000 3,731,000
2029 725,000 18,850 743,850
7,950,000$ 3,829,337$ 11,779,337$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 116 -
19. 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 $15,695,000 of Tax
Allocation Revenue Bonds (Project Area No. 4) 2001 Series. The proceeds from the bonds were
loaned to the Palm Desert Redevelopment Agency to fund various redevelopment capital projects
of the Agency in Project Area No. 4. Interest rates on the bonds vary from 3.5% to 4.8% per annum
payable semi-annually on April 1 and October 1, with principal maturing annually on October 1.
The future debt service requirements on the 2001 Series Tax Allocation Revenue Bonds (Project
Area No. 4) are as follows:
Year Ending
June 30, Principal Interest Total
2014 365,000$ 599,909$ 964,909$
2015 375,000 584,038 959,038
2016 390,000 567,322 957,322
2017 400,000 549,825 949,825
2018 435,000 531,073 966,073
2019 - 2023 2,455,000 2,331,840 4,786,840
2024 - 2028 3,055,000 1,683,240 4,738,240
2029 - 2032 5,430,000 590,880 6,020,880
12,905,000$ 7,438,127$ 20,343,127$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 117 -
19. 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 $4,663,089 of Tax Allocation
Revenue Capital Appreciation Bonds (Project Area No. 4) 2006 Series B. The Palm Desert
Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency. The
proceeds of the Series A and B Bonds will be used to make two loans to refinance a portion of the
outstanding obligations of the Redevelopment Agency under a loan agreement dated March 1, 1998,
fund various redevelopment capital projects within or of benefit to its Project Area No. 4, purchase
a Reserve Fund surety policy and pay the costs of issuance of the bonds. The Series A bonds
consist of $8,155,000 Serial Bonds with interest rates ranging from 4.40% to 5.00% payable
semiannually on October 1 and April 1. Bond maturities 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, 2013 is $1,989,503.
The future debt service requirements on the 2006 Series A Tax Allocation Refunding Bonds and
Series B Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) are as follows:
Year Ending
June 30, Principal Interest Total
2014 779,182$ 635,195$ 1,414,377$
2015 718,718 599,477 1,318,195
2016 672,930 543,641 1,216,571
2017 65,619 549,951 615,570
2018 106,490 589,080 695,570
2019 - 2023 1,950,111 2,840,986 4,791,097
2024 - 2028 4,013,240 3,106,161 7,119,401
2029 - 2033 4,968,195 6,220,055 11,188,250
2034 - 2035 3,713,685 4,182,689 7,896,374
16,988,170$ 19,267,235$ 36,255,405$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 118 -
19. 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 $5,545,000 term
bonds bear an interest rate of 5.0% per annum and mature October 1, 2031.
The future debt service requirements on the 2002 Series Tax Allocation (Housing Set-Aside)
Revenue Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2014 320,000$ 445,848$ 765,848$
2015 330,000 432,848 762,848
2016 345,000 419,004 764,004
2017 360,000 404,019 764,019
2018 375,000 388,029 763,029
2019 - 2023 2,175,000 1,656,218 3,831,218
2024 - 2028 2,770,000 1,053,750 3,823,750
2029 - 2032 2,775,000 285,875 3,060,875
9,450,000$ 5,085,591$ 14,535,591$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 119 -
19. 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 $86,155,000 Serial
Bonds with interest ranging from 4.00% to 5.00% payable semiannually on October 1 and April 1.
Bond maturities began October 1, 2007, and continue annually through 2027.
The future debt service requirements on the Tax Allocation (Housing Set-Aside) Refunding
Revenue Bonds Series 2007 are as follows:
Year Ending
June 30, Principal Interest Total
2014 5,235,000$ 3,082,063$ 8,317,063$
2015 5,505,000 2,813,563 8,318,563
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 - 2023 21,720,000 5,516,469 27,236,469
2024 - 2028 15,955,000 1,766,250 17,721,250
66,680,000$ 19,866,784$ 86,546,784$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2013
See independent auditors’ report.
- 120 -
20. EXTRAORDINARY GAIN (LOSS):
The extraordinary gain (loss) for the fiscal year ended June 30, 2013 consisted of the following
items:
Low and
Moderate
Housing Asset
Special Other
General Revenue Governmental
Fund Fund Funds Totals
Gain (loss) on transfer of
advance to Successor Agency $ (1,847,200) $ 4,531,000 $ (2,683,800) $ -
Gain (loss) on transfer of
assets and liabilities from
Housing Authority to Low
Moderate Housing Asset
Fund - 28,393,628 (28,393,628) -
$ (1,847,200) $ 32,924,628 $ (31,077,428) $ -
21. RESTATEMENT OF NET POSITION:
Net position as of July 1, 2013 was restated from $702,816,051 to $702,398,206 to record a transfer
of land from the City to the Successor Agency Private-Purpose Trust Fund.
The Successor Agency Private-Purpose Trust Fund’s net position (deficit) was restated from
$(132,961,134) to $(141,227,468) to record the transfer of land from the City in the amount of
$417,845 and to remove bond issue costs of $8,684,179 for the implementation of GASB No. 65.
Schedule 1
Entry Age
ormal
Accrued Actuarial Value Unfunded UAAL as a
Actuarial Liabilit of Assets AAL Funde Covere % of Covere
Valuation (AAL) (AVA) (UAAL) Ratio Payrol Payrol
Date (a) (b) (a) - (b) (b)/(a) (c) [(a)-(b)]/(c)
06/30/06 52,739,452$ 40,523,105$ 12,216,347$ 76.84% 11,845,746$ 103.13%
06/30/07 61,535,809 46,180,367 15,355,442 75.05% 13,263,198 115.77%
06/30/08 67,979,926 51,813,257 16,166,669 76.22% 14,608,384 110.67%
06/30/09 79,133,393 57,022,230 22,111,163 72.06% 15,212,102 145.35%
06/30/10 87,876,959 61,203,162 26,673,797 69.65% 13,489,043 197.74%
06/30/11 92,858,742 65,483,444 27,375,298 70.52% 12,255,086 223.38%
06/30/12 99,232,017 69,236,481 29,995,536 69.77% 10,754,242 278.92%
Actuarial
Accrued Actuarial Value Unfunded UAAL as a
Actuarial Liabilit of Assets AAL Funde Covere % of Covere
Valuation (AAL) (AVA) (UAAL) Ratio Payrol Payrol
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%
See independent auditors' report.
For the year ended June 30, 2013
- 121 -
CalPERS DEFINED BENEFIT PLA
OTHER POST-EMPLOYMENT BENEFIT PLA
CITY OF PALM DESERT
SCHEDULES OF FUNDING PROGRESS
- 122 -
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Schedule 2
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 75,662,862$ 75,662,862$ 75,662,862$ -$
Resources (inflows):
Taxes 39,524,000 40,777,000 41,387,013 610,013
Licenses and permits 738,900 1,338,900 1,336,125 (2,775)
Intergovernmental revenues 859,000 1,065,100 1,913,609 848,509
Rental income 153,000 153,000 188,775 35,775
Charges of services 716,500 716,500 898,222 181,722
Fines and forfeitures 110,000 110,000 114,026 4,026
Investment earnings 385,000 385,000 126,206 (258,794)
Miscellaneous 324,200 343,260 1,065,087 721,827
Transfers from other funds 2,237,500 2,237,500 2,127,655 (109,845)
Total resources 45,048,100 47,126,260 49,156,718 2,030,458
Charges to appropriations (outflows):
Current:
General governmen 12,406,477 12,800,334 12,463,041 337,293
Public safety 18,655,990 18,560,990 18,520,228 40,762
Public works 7,947,902 7,798,734 7,566,547 232,187
Parks, recreation and culture 3,602,852 3,678,780 3,550,585 128,195
Capital outla - 67,344 55,027 12,317
Transfers to other funds 2,430,821 4,830,821 4,602,022 228,799
Total charges to appropriations 45,044,042 47,737,003 46,757,450 979,553
Excess of resources over (under)
charges to appropriations 4,058 (610,743) 2,399,268 3,010,011
Extraordinary Gain (Loss) (1,847,200) (1,847,200) (1,847,200) -
Fund balance, June 30 73,819,720 73,204,919 76,214,930 3,010,011
See independent auditors' report and note to required supplementary information.
CITY OF PALM DESERT
- 123 -
For the year ended June 30, 2013
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Schedule 3
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 441$ 441$ 441$ -$
Resources (inflows):
Taxes 4,171,872 4,171,872 6,521,561 2,349,689
Special assessments collecte 2,329,908 2,329,908 2,118,083 (211,825)
Intergovernmental revenues 851,277 851,277 834,864 (16,413)
Investment earnings 2,000 2,000 - (2,000)
Miscellaneous 15,000 15,000 5,701 (9,299)
Transfers in 1,053,000 2,653,000 2,653,000 -
Total resources 8,423,057 10,023,057 12,133,209 2,110,152
Charges to appropriations (outflows):
Current:
Public safety 8,898,830 9,423,830 9,543,164 (119,334)
Capital outla - - 7,831 (7,831)
Transfers out 136,000 136,000 - 136,000
Total charges to appropriations 9,034,830 9,559,830 9,550,995 8,835
Excess of resources over (under)
charges to appropriations (611,773) 463,227 2,582,214 2,118,987
Fund balance, June 30 (611,332) 463,668 2,582,655 2,118,987
See independent auditors' report and note to required supplementary information.
CITY OF PALM DESERT
- 124 -
For the year ended June 30, 2013
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX SPECIAL REVENUE FUND
See independent auditors’ report.
- 125 -
CITY OF PALM DESERT
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2013
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
- 126 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 127 -
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 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 75,662,862$ 75,662,862$ 75,662,862$ -$
Resources (inflows):
Taxes:
Property taxes 5,893,000 5,446,000 6,142,498 696,498
Property transfer tax 450,000 450,000 520,393 70,393
Property tax in lie 3,421,000 3,421,000 3,386,520 (34,480)
Timeshare mitigation fee 1,220,000 1,220,000 1,292,859 72,859
Sales tax 16,400,000 17,100,000 16,764,808 (335,192)
Business license tax 1,150,000 1,150,000 1,149,551 (449)
Job valuation fees 20,000 20,000 23,743 3,743
Transient occupancy tax 8,150,000 9,150,000 9,188,981 38,981
Franchises 2,800,000 2,800,000 2,892,805 92,805
Penalties and interest on taxes 20,000 20,000 24,855 4,855
Total Taxes 39,524,000 40,777,000 41,387,013 610,013
Licenses and Permits:
Building permit 550,000 1,150,000 1,196,945 46,945
Grading permits 4,500 4,500 9,990 5,490
Encroachment permits 131,000 131,000 82,206 (48,794)
Miscellaneous permits - - 1,560 1,560
Business regulatory permit 53,000 53,000 44,849 (8,151)
Valet parking permits 400 400 575 175
Total Licenses and Permits 738,900 1,338,900 1,336,125 (2,775)
Intergovernmental Revenues:
Grants - 1,500 4,762 3,262
Motor vehicle in-lieu fees 230,000 230,000 26,691 (203,309)
Monthly parking bal 20,000 20,000 13,352 (6,648)
Reimbursement RDA costs - - 903,684 903,684
Other reimbursements 609,000 813,600 965,120 151,520
Total Intergovernmental Revenues 859,000 1,065,100 1,913,609 848,509
See independent auditors' report.(Continued)
For the year ended June 30, 2013
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
- 128 -
CITY OF PALM DESERT
Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Resources (inflows) (Continued):
Rental income 153,000$ 153,000$ 188,775$ 35,775$
Charges for Services:
Subdivision fees 251,500 251,500 201,794 (49,706)
Zoning fees 90,000 90,000 99,636 9,636
Plan check fees 300,000 300,000 500,698 200,698
Sale of maps and publications 15,000 15,000 16,796 1,796
Microfilm fees 10,000 10,000 18,410 8,410
Other fees 50,000 50,000 60,888 10,888
Total Charges for Services 716,500 716,500 898,222 181,722
Fines and Forfeitures:
Vehicle code fines 25,000 25,000 20,731 (4,269)
Municipal court fines 25,000 25,000 14,335 (10,665)
VICR fees 60,000 60,000 78,960 18,960
Total Fines and Forfeitures 110,000 110,000 114,026 4,026
Investment Earnings:
Interest income 300,000 300,000 41,915 (258,085)
Interest on notes receivable 85,000 85,000 84,291 (709)
Total Investment Earnings 385,000 385,000 126,206 (258,794)
Miscellaneous Revenues:
Code compliance 2,000 2,000 4,774 2,774
Strong motion instrument fe 5,000 5,000 6,265 1,265
Inspection service 1,000 1,000 477 (523)
Special investigation fee 3,000 3,000 3,990 990
Certificate of compliance fee 1,200 1,200 1,300 100
uisance abatement tax 60,000 60,000 144,896 84,896
Abandoned vehicle abatement 40,000 40,000 69,160 29,160
Fire inspection service 92,000 92,000 184,602 92,602
Other revenue 120,000 139,060 649,623 510,563
Total Miscellaneous Revenues 324,200 343,260 1,065,087 721,827
Transfers from other funds 2,237,500 2,237,500 2,127,655 (109,845)
Amounts Available for Appropriatio 45,048,100 47,126,260 49,156,718 2,030,458
See independent auditors' report.(Continued)
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
For the year ended June 30, 2012
Budgeted Amount
(CONTINUED)
- 129 -
Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Charges to appropriations (outflows):
General Government - Departmental:
City counci 420,900$ 304,900$ 301,937$ 2,963$
City cler 893,600 893,600 870,456 23,144
Legislative advocac 37,000 37,000 36,180 820
Elections 61,900 61,900 42,675 19,225
City attorne 237,000 237,000 233,004 3,996
Legal special services 335,000 430,000 347,326 82,674
City manage 808,880 817,000 816,759 241
Community service 407,800 426,800 426,635 165
Finance 1,884,690 1,905,690 1,905,588 102
Auditin 55,000 55,000 47,856 7,144
Human resources 484,050 484,050 482,279 1,771
General services 584,000 501,500 496,580 4,920
Information technolog 794,002 792,002 769,143 22,859
Unemployment insuranc 100,000 55,000 51,364 3,636
Insurance 574,000 354,833 352,737 2,096
Community promotion 624,125 654,125 575,119 79,006
Community developmen 1,849,600 1,815,140 1,777,676 37,464
Economic development cente 733,530 654,530 641,245 13,285
Marketing 946,400 976,400 961,276 15,124
Total General Government - Departmental 11,831,477 11,456,470 11,135,835 320,635
General Government - Nondepartmental:
Retiree funding - 500,000 500,000 -
Contributions to other agencie 575,000 843,864 827,206 16,658
Tota General Government - Non departmental 575,000 1,343,864 1,327,206 16,658
Total General Government 12,406,477 12,800,334 12,463,041 337,293
Public Safety:
Police services 16,568,261 16,528,261 16,518,834 9,427
Animal regulatio 254,904 254,904 239,864 15,040
Traffic safety 248,000 248,000 243,593 4,407
Building and safet 1,584,825 1,529,825 1,517,937 11,888
Total Public Safet 18,655,990 18,560,990 18,520,228 40,762
See independent auditors' report.(Continued)
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2012
Budgeted Amount
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
- 130 -
Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Charges to appropriations (outflows) (Continued):
Public Works:
Administratio 2,717,708$ 2,554,708$ 2,528,131$ 26,577$
Street maintenance 2,569,054 2,362,964 2,353,655 9,309
Street resurfacing 1,235,000 1,235,000 1,179,743 55,257
Curb and gutte 75,000 75,000 75,000 -
Parking lo 70,000 162,625 115,563 47,062
Storm drai 20,000 20,000 - 20,000
Strippin 100,000 317,662 286,881 30,781
Corporate yar 70,500 70,500 67,233 3,267
Building maintenance 491,700 511,335 482,363 28,972
Portola community cente 75,912 75,912 72,370 3,542
Auto equipmen 460,000 350,000 343,695 6,305
Storm water permi 63,028 63,028 61,913 1,115
Total Public Works 7,947,902 7,798,734 7,566,547 232,187
Parks, Recreation and Culture:
Park maintenance 645,192 725,832 721,415 4,417
Civic center par 879,000 927,400 876,730 50,670
Landscape service 1,747,510 1,704,225 1,661,372 42,853
Visitors cente 331,150 321,323 291,068 30,255
Total Parks, Recreation and Culture 3,602,852 3,678,780 3,550,585 128,195
Capital Outlay - Departmenta - 67,344 55,027 12,317
Transfers to other funds 2,430,821 4,830,821 4,602,022 228,799
Amounts Charged to Appropriatio 45,044,042 47,737,003 46,757,450 979,553
Excess of resources over (under)
charges to appropriations 4,058 (610,743) 2,399,268 3,010,011
Extraordinary Gain (Loss) (1,847,200) (1,847,200) (1,847,200) -
Fund balance, June 30 73,819,720 73,204,919 76,214,930 3,010,011
See independent auditors' report.
- 131 -
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2012
Budgeted Amount
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
- 132 -
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- 133 -
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
Schedule 5
Total
Specia Deb Capital Othe
Revenu Servic Projects Governmenta
ASSETS: Funds Fun Funds Funds
Pooled cash and investment 62,719,516$ 136,895$ 18,485,183$ 81,341,594$
Receivables:
Accounts 656,121 - 170 656,291
Assessments - 1,417,094 - 1,417,094
Interes 219,217 - 27,604 246,821
Loans 5,212,938 - - 5,212,938
Prepaid costs 2,171 - 691 2,862
Inventorie 3,371 - - 3,371
Due from other government 844,236 6,804 - 851,040
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 3,041,784 - 21,368,795 24,410,579
TOTAL ASSETS 73,353,354$ 1,560,793$ 53,147,443$ 128,061,590$
LIABILITIES
Accounts payabl 1,569,293$ -$ 728,521$ 2,297,814$
Accrued liabilitie 121,087 - 8,606 129,693
Due to other funds 139,411 - 2,553,000 2,692,411
Unearned revenue 810,154 - 76,238 886,392
Deposits payabl 488,562 - 167,583 656,145
TOTAL LIABILITIE 3,128,507 - 3,533,948 6,662,455
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenu 218,372 1,417,094 - 1,635,466
FUND BALANCES
Nonspendable:
Advance 523,200 - 10,212,000 10,735,200
Loans 5,207,183 - - 5,207,183
Prepaid costs 2,171 - 691 2,862
Inventorie 3,371 - - 3,371
Restricted for:
Capital projects - - 23,894,106 23,894,106
Debt servic - 143,699 - 143,699
Low income housin 10,922,120 - - 10,922,120
Public facilities 3,057,030 - - 3,057,030
Public safet 835,091 - - 835,091
Special program 7,414,068 - 1,361,729 8,775,797
Street related purpose 26,392,538 - - 26,392,538
Committed to:
Aquatic cente 2,132,321 - - 2,132,321
Capital asset replacemen 10,637,043 - 10,637,043
Energy loan progra 2,880,339 - - 2,880,339
Assigned to:
Capital projects - - 5,842,449 5,842,449
Property acquisitio - - 420,387 420,387
Public facilities - - 5,035,892 5,035,892
Special program - - 543,215 543,215
Street related purpose - - 2,303,026 2,303,026
TOTAL FUND BALANCE 70,006,475 143,699 49,613,495 119,763,669
TOTAL LIABILITIES, DEFERRE
INFLOWS OF RESOURCES
AND FUND BALANCE 73,353,354$ 1,560,793$ 53,147,443$ 128,061,590$
See independent auditors' report.
RESOURCES AND FUND BALANCES
- 134 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2013
LIABILITIES, DEFERRED INFLOWS OF
Schedule 6
Total
Special Debt Capital Other
Revenue Service Projects Governmental
Funds Fund Funds Funds
REVENUES:
Taxes 2,859,626$ -$ -$ 2,859,626$
Special assessments collected 1,413,566 122,688 - 1,536,254
Licenses and permits - - 250,671 250,671
Intergovernmental revenues 2,171,869 - 177,550 2,349,419
Rental income 5,175,890 - 5,175,890
Investment earnings 86,992 141 88,776 175,909
Fines and forfeitures 128,542 - - 128,542
Miscellaneous 1,514,734 - 1,423,444 2,938,178
TOTAL REVENUES 13,351,219 122,829 1,940,441 15,414,489
EXPENDITURES:
Current:
General government 1,104,108 27,875 433,228 1,565,211
Housing and redevelopment 5,151,995 - - 5,151,995
Public safety 236,484 - - 236,484
Parks, recreation and culture 1,311,265 - 1,300,599 2,611,864
Public works 1,074,358 - 1,178,686 2,253,044
Capital outlay 1,361,686 - 1,364,132 2,725,818
Debt service:
Principal retirement 283,000 35,000 - 318,000
Interest and fiscal charges 173,965 81,274 - 255,239
TOTAL EXPENDITURES 10,696,861 144,149 4,276,645 15,117,655
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,654,358 (21,320) (2,336,204) 296,834
OTHER FINANCING SOURCES (USES):
Transfers in 5,318,914 - 1,174,970 6,493,884
Transfers out (1,605,913) - (776,000) (2,381,913)
TOTAL OTHER FINANCING
SOURCES (USES) 3,713,001 - 398,970 4,111,971
EXTAORDINARY GAIN (LOSS) (28,524,428) - (2,553,000) (31,077,428)
NET CHANGE IN FUND BALANCES (22,157,069) (21,320) (4,490,234) (26,668,623)
FUND BALANCES - BEGINNING OF YEAR 92,163,544 165,019 54,103,729 146,432,292
FUND BALANCES - END OF YEAR 70,006,475$ 143,699$ 49,613,495$ 119,763,669$
See independent auditors' report.
- 135 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2013
- 136 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 137 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than
expendable trust that are legally restricted to expenditures for specific purposes.
Traffic Safety Fund - Traffic and court fines are collected in these funds. A transfer from this Fund to
the General Fund is made at the end of the fiscal year by council action to be applied toward the
eligible expenditures permitted by law.
Gas Tax Fund - Portions of the tax rate per gallon levied by the State of California on all gasoline
purchases are allocated to cities throughout the State. These funds are restricted to expenditure for
transit and street-related purposes.
Measure A Fund - In 1988, Riverside County voters approved a half-cent sales tax, known as Measure
A, to fund a variety of highway improvements, local street and road maintenance, commuter assistance
and specialized transit projects. This fund is used to collect this tax, and pursuant to the provision of
Measure A (Ordinance No. 88-1 of the County of Riverside) it is restricted for local street and road
expenditures only.
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
of $4.19 per ton, which took effect in June 2011. Due to limited landfill resources, it will be used for
the implementation of appropriate long-range plans to be determined by the City Council for municipal
solid waste disposal.
- 138 -
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- 139 -
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.
Housing Authority Fund - This fund is used to account for revenues and expenditures related to rental
units owned by the Housing Authority, established in January, 1998.
Housin
Traffic Mitigatio
Safet Gas Tax Measure A Fee
ASSETS:
Pooled cash and investments -$ 1,241,520$ 23,204,998$ 2,485,768$
Receivables:
Accounts - - - 123,410
Interest - - - -
Loans - - - -
Prepaid costs - - - -
Inventories - - - -
Due from other government 18,378 103,300 470,227 -
Advances to Successor Agenc - - - -
Restricted assets:
Cash and investments with fiscal agen - - - -
TOTAL ASSETS 18,378$ 1,344,820$ 23,675,225$ 2,609,178$
LIABILITIES:
Accounts payable -$ -$ 688,822$ 123,410$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenues - 739,630 - -
Deposits payable - - - -
TOTAL LIABILITIES - 739,630 688,822 123,410
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - 355 -
FUND BALANCES:
onspendable:
Advances - - - -
Loans - - - -
Prepaid costs - - - -
Inventories - - - -
Restricted for:
Low income housin - - - 2,485,768
Public facilities - - - -
Public safety - - - -
Special programs - - - -
Street related purposes 18,378 605,190 22,986,048 -
Committed to:
Aquatic center - - - -
Capital asset replacement - - - -
Energy loan progra - - - -
TOTAL FUND BALANCES 18,378 605,190 22,986,048 2,485,768
TOTAL LIABILITIES, DEFERRED INFLOW
OF RESOURCES AND FUND BALANCES 18,378$ 1,344,820$ 23,675,225$ 2,609,178$
See independent auditors' report.
CITY OF PALM DESERT
OTHER SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30, 2013
RESOURCES AND FUND BALANCES
- 140 -
LIABILITIES, DEFERRED INFLOWS OF
Schedule 7
Communit ew Park and Public El Paseo
Developmen Constructio Planned Recreation Traffic Safety Police Assessmen
Block Gran Tax Drainage Facilities Signals Recyclin Grants Distric
-$ 407,710$ 2,356,186$ 1,199,659$ 552,868$ 4,883,980$ 25,292$ 41,526$
- - - - - 25,807 - -
- - - - - - - -
5,755 - - - - - - -
- - - - - 549 - -
- - - - - - - -
119,147 - - - - 11,901 74,822 -
- 654,000 - - - - - -
- - - - - - - -
124,902$ 1,061,710$ 2,356,186$ 1,199,659$ 552,868$ 4,922,237$ 100,114$ 41,526$
96,710$ 1,256$ 126,036$ 11,492$ 96$ 41,493$ 66,926$ 5,242$
- - - - - 8,067 - -
8,611 130,800 - - - - - -
- - - - - 20,512 26,190 -
- - - - - - - -
105,321 132,056 126,036 11,492 96 70,072 93,116 5,242
5,755 - - - - - - -
- 523,200 - - - - - -
- - - - - - - -
- - - - - 549 - -
- - - - - - - -
- - - - - - - -
- 406,454 - 1,188,167 - - - -
- - - - - - 6,998 -
13,826 - - - - 4,851,616 - 36,284
- - 2,230,150 - 552,772 - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
13,826 929,654 2,230,150 1,188,167 552,772 4,852,165 6,998 36,284
124,902$ 1,061,710$ 2,356,186$ 1,199,659$ 552,868$ 4,922,237$ 100,114$ 41,526$
(Continued)
- 141 -
Landscape
Ai and Lightin Fire
Qualit Districts Child Care Facilities
Managemen os. 1 - 17 Progra Restoratio
ASSETS:
Pooled cash and investments 324,329$ 2,207,468$ 1,462,409$ 828,093$
Receivables:
Accounts - - - -
Interest - - - -
Loans - - - -
Prepaid costs - - - -
Inventories - - - -
Due from other government 15,626 10,512 - -
Advances to Successor Agenc - - - -
Restricted assets:
Cash and investments with fiscal agen - - - -
TOTAL ASSETS 339,955$ 2,217,980$ 1,462,409$ 828,093$
LIABILITIES:
Accounts payable 18,620$ 26,973$ -$ -$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenues - - - -
Deposits payable - - - -
TOTAL LIABILITIES 18,620 26,973 - -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue - - - -
FUND BALANCES:
onspendable:
Advances - - - -
Loans - - - -
Prepaid costs - - - -
Inventories - - - -
Restricted for:
Low income housin - - - -
Public facilities - - 1,462,409 -
Public safety - - - 828,093
Special programs 321,335 2,191,007 - -
Street related purposes - - - -
Committed to:
Aquatic center - - - -
Capital asset replacement - - - -
Energy loan progra - - - -
TOTAL FUND BALANCES 321,335 2,191,007 1,462,409 828,093
TOTAL LIABILITIES, DEFERRED INFLOW
OF RESOURCES AND FUND BALANCES 339,955$ 2,217,980$ 1,462,409$ 828,093$
See independent auditors' report.
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
June 30, 2013
- 142 -
RESOURCES AND FUND BALANCES
LIABILITIES, DEFERRED INFLOWS OF
Schedule 7
Total
Energ RDA Other
Independence Aquatic Low Incom Housin Special Revenue
Loa Center Housin Authorit Funds
2,744,390$ 1,788,866$ 23,197$ 16,941,257$ 62,719,516$
- 500,402 - 6,502 656,121
212,262 - - 6,955 219,217
5,207,183 - - - 5,212,938
- - - 1,622 2,171
- 3,371 - - 3,371
20,323 - - - 844,236
- - - - 654,000
138,501 - - 2,903,283 3,041,784
8,322,659$ 2,292,639$ 23,197$ 19,859,619$ 73,353,354$
22,875$ 146,545$ -$ 192,797$ 1,569,293$
- - 23,197 89,823 121,087
- - - - 139,411
- 10,402 - 13,420 810,154
- - - 488,562 488,562
22,875 156,947 23,197 784,602 3,128,507
212,262 - - - 218,372
- - - - 523,200
5,207,183 - - - 5,207,183
- - - 1,622 2,171
- 3,371 - - 3,371
- - - 8,436,352 10,922,120
- - - - 3,057,030
- - - - 835,091
- - - - 7,414,068
- - - - 26,392,538
- 2,132,321 - - 2,132,321
- - - 10,637,043 10,637,043
2,880,339 - - - 2,880,339
8,087,522 2,135,692 - 19,075,017 70,006,475
8,322,659$ 2,292,639$ 23,197$ 19,859,619$ 73,353,354$
- 143 -
Housing
Traffic Mitigation
Safety Gas Tax Measure A Fee
REVENUES:
Taxes -$ -$ 2,453,084$ 51,553$
Special assessments collected - - - -
Intergovernmental revenues - 1,171,359 130,111 -
Rental income - - - -
Investment earnings 200 4,904 17,075 2,345
Fines and forfeitures 128,542 - - -
Miscellaneous - - - -
TOTAL REVENUES 128,742 1,176,263 2,600,270 53,898
EXPENDITURES:
Current:
General government - - - -
Housing and redevelopment - - - 384,985
Public safety - - - -
Parks, recreation and culture - - - -
Public works - - 184,744 -
Capital outlay - - 854,642 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES - - 1,039,386 384,985
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 128,742 1,176,263 1,560,884 (331,087)
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out (125,680) (766,624) - -
TOTAL OTHER FINANCING
SOURCES (USES) (125,680) (766,624) - -
EXTRAORDINARY GAIN (LOSS) - - - -
NET CHANGE IN FUND BALANCES 3,062 409,639 1,560,884 (331,087)
FUND BALANCES -
BEGINNING OF YEAR 15,316 195,551 21,425,164 2,816,855
FUND BALANCES - END OF YEAR 18,378$ 605,190$ 22,986,048$ 2,485,768$
See independent auditors' report.
OTHER SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF PALM DESERT
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2013
- 144 -
Schedule 8
Community New Park and Public El Paseo
Development Construction Planned Recreation Traffic Safety Police Assessment
Block Grant Tax Drainage Facilities Signals Recycling Grants District
-$ 190,293$ 15,200$ 34,206$ 7,300$ -$ -$ -$
- - - - - - - 239,950
388,643 - - - 153,769 32,076 236,233 -
- - - - - - - -
175 740 2,107 1,271 466 4,848 2 -
- - - - - - - -
- - - - 1,937 94,264 - -
388,818 191,033 17,307 35,477 163,472 131,188 236,235 239,950
282,935 - - - - 357,143 - 242,143
- - - - - - - -
- - - - - - 236,484 -
- - - 60,271 - 26,215 - -
- 314,715 40 - 13,492 42,147 - -
99,346 - 127,921 84,249 175,643 - - -
- - - - - - - -
- - - - - - - -
382,281 314,715 127,961 144,520 189,135 425,505 236,484 242,143
6,537 (123,682) (110,654) (109,043) (25,663) (294,317) (249) (2,193)
- - - - - - - -
- - - - - (21,851) - -
- - - - - (21,851) - -
- (130,800) - - - - - -
6,537 (254,482) (110,654) (109,043) (25,663) (316,168) (249) (2,193)
7,289 1,184,136 2,340,804 1,297,210 578,435 5,168,333 7,247 38,477
13,826$ 929,654$ 2,230,150$ 1,188,167$ 552,772$ 4,852,165$ 6,998$ 36,284$
(Continued)
- 145 -
Landscape
Air and Lighting Fire
Quality Districts Child Care Facilities
Management Nos. 1 - 17 Program Restoration
REVENUES:
Taxes -$ -$ 19,496$ 88,494$
Special assessments collected - 758,228 - -
Intergovernmental revenues 59,678 - - -
Rental income - - - -
Investment earnings 244 559 1,351 635
Fines and forfeitures - - - -
Miscellaneous - - - -
TOTAL REVENUES 59,922 758,787 20,847 89,129
EXPENDITURES:
Current:
General government 38,226 - 69,080 -
Housing and redevelopment - - - -
Public safety - - - -
Parks, recreation and culture - - - -
Public works - 519,220 - -
Capital outlay - - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES 38,226 519,220 69,080 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 21,696 239,567 (48,233) 89,129
OTHER FINANCING SOURCES (USES):
Transfers in - 67,705 - -
Transfers out - - - -
TOTAL OTHER FINANCING
SOURCES (USES) - 67,705 - -
EXTRAORDINARY GAIN (LOSS) - - - -
NET CHANGE IN FUND BALANCES 21,696 307,272 (48,233) 89,129
FUND BALANCES -
BEGINNING OF YEAR 299,639 1,883,735 1,510,642 738,964
FUND BALANCES - END OF YEAR 321,335$ 2,191,007$ 1,462,409$ 828,093$
See independent auditors' report.
- 146 -
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
For the year ended June 30, 2013
CITY OF PALM DESERT
Schedule 8
Total
Energy RDA Other
Independence Aquatic Low Income Housing Special Revenue
Loan Center Housing Authority Funds
-$ -$ -$ -$ 2,859,626$
415,388 - - - 1,413,566
- - - - 2,171,869
- - 5,175,890 5,175,890
11,783 5,975 - 32,312 86,992
- - - - 128,542
10,440 705,853 - 702,240 1,514,734
437,611 711,828 - 5,910,442 13,351,219
114,581 - - - 1,104,108
- - 691,758 4,075,252 5,151,995
- - - - 236,484
- 1,224,779 - - 1,311,265
- - - - 1,074,358
- 19,885 - - 1,361,686
283,000 - - - 283,000
173,965 - - - 173,965
571,546 1,244,664 691,758 4,075,252 10,696,861
(133,935) (532,836) (691,758) 1,835,190 2,654,358
- 532,836 691,758 4,026,615 5,318,914
- - - (691,758) (1,605,913)
- 532,836 691,758 3,334,857 3,713,001
- - - (28,393,628) (28,524,428)
(133,935) - - (23,223,581) (22,157,069)
8,221,457 2,135,692 - 42,298,598 92,163,544
8,087,522$ 2,135,692$ -$ 19,075,017$ 70,006,475$
- 147 -
Schedule 9-A
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 15,316$ 15,316$ 15,316$ -$
Resources (inflows):
Investment earnings 1,000 1,000 200 (800)
Fines and forfeitures 174,000 174,000 128,542 (45,458)
Total resources 175,000 175,000 128,742 (46,258)
Charges to appropriations (outflows):
Transfers out 175,000 175,000 125,680 49,320
Total charges to appropriations 175,000 175,000 125,680 49,320
Excess of resources over (under)
charges to appropriations - - 3,062 3,062
Fund balance, June 30 15,316$ 15,316$ 18,378$ 3,062$
See independent auditors' report.
CITY OF PALM DESERT
- 148 -
For the year ended June 30, 2013
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC SAFETY
Schedule 9-B
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 195,551$ 195,551$ 195,551$ -$
Resources (inflows):
Intergovernmental revenues 2,123,601 2,123,601 1,171,359 (952,242)
Investment earnings 11,200 11,200 4,904 (6,296)
Total resources 2,134,801 2,134,801 1,176,263 (958,538)
Charges to appropriations (outflows):
Current:
Public works 1,304,801 1,304,801 - 1,304,801
Transfers out 830,000 830,000 766,624 63,376
Total charges to appropriations 2,134,801 2,134,801 766,624 1,368,177
Excess of resources over (under)
charges to appropriations - - 409,639 409,639
Fund balance, June 30 195,551$ 195,551$ 605,190$ 409,639$
See independent auditors' report.
CITY OF PALM DESERT
- 149 -
For the year ended June 30, 2013
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GAS TAX
Schedule 9-C
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 2,816,855$ 2,816,855$ 2,816,855$ -$
Resources (inflows):
Taxes - - 51,553 51,553
Investment earnings 12,000 12,000 2,345 (9,655)
Miscellaneous 120,000 120,000 - (120,000)
Total resources 132,000 132,000 53,898 (78,102)
Charges to appropriations (outflows):
Current:
Housing and redevelopment 500,000 500,000 384,985 115,015
Total charges to appropriations 500,000 500,000 384,985 115,015
Excess of resources over (under)
charges to appropriations (368,000) (368,000) (331,087) 36,913
Fund balance, June 30 2,448,855$ 2,448,855$ 2,485,768$ 36,913$
See independent auditors' report.
CITY OF PALM DESERT
- 150 -
For the year ended June 30, 2013
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
HOUSING MITIGATION FEES
Schedule 9-D
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance (deficit), July 1 7,289$ 7,289$ 7,289$ -$
Resources (inflows):
Intergovernmental revenues 390,462 390,462 388,643 (1,819)
Investment earnings 400 400 175 (225)
Total resources 390,862 390,862 388,818 (2,044)
Charges to appropriations (outflows):
Current:
General government 287,681 587,233 282,935 304,298
Capital outlay - - 99,346 (99,346)
Total charges to appropriations 287,681 587,233 382,281 204,952
Excess of resources over (under)
charges to appropriations 103,181 (196,371) 6,537 202,908
Fund balance, June 30 110,470$ (189,082)$ 13,826$ 202,908$
See independent auditors' report.
CITY OF PALM DESERT
- 151 -
For the year ended June 30, 2013
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
COMMUNITY DEVELOPMENT BLOCK GRANT
Schedule 9-E
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 7,247$ 7,247$ 7,247$ -$
Resources (inflows):
Intergovernmental revenues 100,000 278,072 236,233 (41,839)
Investment earnings - - 2 2
Total resources 100,000 278,072 236,235 (41,837)
Charges to appropriations (outflows):
Current:
Public safety 103,000 281,072 236,484 44,588
Total charges to appropriations 103,000 281,072 236,484 44,588
Excess of resources over (under)
charges to appropriations (3,000) (3,000) (249) 2,751
Fund balance, June 30 4,247$ 4,247$ 6,998$ 2,751$
See independent auditors' report.
Budgeted Amounts
- 152 -
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, 2013
Schedule 9-F
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 38,477$ 38,477$ 38,477$ -$
Resources (inflows):
Special assessments collected 220,000 220,000 239,950 19,950
Total resources 220,000 220,000 239,950 19,950
Charges to appropriations (outflows):
Current:
General government 220,000 250,000 242,143 7,857
Total charges to appropriations 220,000 250,000 242,143 7,857
Excess of resources over (under)
charges to appropriations - (30,000) (2,193) 27,807
Fund balance, June 30 38,477$ 8,477$ 36,284$ 27,807$
See independent auditors' report.
CITY OF PALM DESERT
- 153 -
For the year ended June 30, 2013
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
EL PASEO ASSESSMENT DISTRICT
Schedule 9-G
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 1,883,735$ 1,883,735$ 1,883,735$ -$
Resources (inflows):
Special assessments collected 771,764 771,764 758,228 (13,536)
Investment earnings - - 559 559
Transfers in 77,000 77,000 67,705 (9,295)
Total resources 848,764 848,764 826,492 (22,272)
Charges to appropriations (outflows):
Current:
Public works 721,057 740,473 519,220 221,253
Total charges to appropriations 721,057 740,473 519,220 221,253
Excess of resources over (under)
charges to appropriations 127,707 108,291 307,272 198,981
Fund balance, June 30 2,011,442$ 1,992,026$ 2,191,007$ 198,981$
See independent auditors' report.
CITY OF PALM DESERT
- 154 -
For the year ended June 30, 2013
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE AND LIGHTING DISTRICTS NOS. 1 - 17
- 155 -
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 10
Total
City Other
Highlands Debt Service
Undergrounding Fund
ASSETS:
Pooled cash and investments 136,895$ 136,895$
Receivables:
Assessments 1,417,094 1,417,094
Due from other governments 6,804 6,804
TOTAL ASSETS 1,560,793$ 1,560,793$
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue 1,417,094 1,417,094
TOTAL DEFERRED INFLOWS
OF RESOURCES 1,417,094 1,417,094
FUND BALANCE:
Restricted for:
Debt service 143,699 143,699
TOTAL FUND BALANCE 143,699 143,699
TOTAL DEFERRED INFLOWS
OF RESOURCES AND
FUND BALANCE 1,560,793$ 1,560,793$
See independent auditors' report.
RESOURCESAND FUND BALANCES
- 156 -
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
June 30, 2013
DEFERRED INFLOWS OF
Schedule 11
Total
City Other
Highlands Debt Service
Undergrounding Fund
REVENUES:
Special assessments collected 122,688$ 122,688$
Investment earnings 141 141
TOTAL REVENUES 122,829 122,829
EXPENDITURES:
Current:
General government 27,875 27,875
Debt service:
Principal retirement 35,000 35,000
Interest and fiscal charges 81,274 81,274
TOTAL EXPENDITURES 144,149 144,149
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (21,320) (21,320)
FUND BALANCE - BEGINNING OF YEAR 165,019 165,019
FUND BALANCE - END OF YEAR 143,699$ 143,699$
See independent auditors' report.
- 157 -
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
OTHER DEBT SERVICE FUND
For the year ended June 30, 2013
- 158 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 159 -
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 Recreational Facilities Fund - This fund is used to account for resources and expenditures
for capital improvement projects that are related to park development, maintenance and equipment.
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.
Arts in Drainage
Public Places Facilities
ASSETS:
Pooled cash and investments 1,541,561$ 2,132,549$
Receivables:
Accounts 170 -
Interest - -
Prepaid costs 75 -
Due from other funds - -
Advances to Successor Agenc - -
Restricted assets:
Cash and investments with fiscal agen - -
TOTAL ASSETS 1,541,806$ 2,132,549$
LIABILITIES:
Accounts payable 3,813$ -$
Accrued liabilities 8,606 -
Due to other funds - -
Unearned revenues - -
Deposits payable 167,583 -
TOTAL LIABILITIES 180,002 -
FUND BALANCES:
onspendable
Advances - -
Prepaid costs 75 -
Restricted for:
Capital projects - -
Special programs 1,361,729 -
Assigned to:
Capital projects - -
Property acquisitio - -
Public facilities - -
Special programs - -
Street related purposes - 2,132,549
TOTAL FUND BALANCES 1,361,804 2,132,549
TOTAL LIABILITIES AND FUND BALANCES 1,541,806$ 2,132,549$
See independent auditors' report.
COMBINING BALANCE SHEET
June 30, 2013
LIABILITIES AND FUND BALANCES
CITY OF PALM DESERT
OTHER CAPITAL PROJECTS FUNDS
- 160 -
Schedule 12
Parks and Assessment
Recreation District No. 94-3
Facilities Signalization Buildings Library Merano
290,703$ 227,077$ 2,973,748$ 560,629$ -$
- - - - -
- - - - -
- - - - -
- - - - -
4,765,000 - - - -
- - - - 178,920
5,055,703$ 227,077$ 2,973,748$ 560,629$ 178,920$
7,290$ 56,600$ 304,726$ 17,414$ -$
- - - - -
953,000 - - - -
- - - - -
- - - - -
960,290 56,600 304,726 17,414 -
3,812,000 - - - -
- - - - -
- - - - 178,920
- - - - -
- - - - -
- - - - -
283,413 - 2,669,022 - -
- - - 543,215 -
- 170,477 - - -
4,095,413 170,477 2,669,022 543,215 178,920
5,055,703$ 227,077$ 2,973,748$ 560,629$ 178,920$
(Continued)
- 161 -
Silver Spur Highlands CFD
Ranch Undergrounding University
ASSETS:
Pooled cash and investments 585$ 20$ -$
Receivables:
Accounts - - -
Interest - - 12,645
Prepaid costs - - -
Due from other funds - - -
Advances to Successor Agenc - - -
Restricted assets:
Cash and investments with fiscal agen - - 20,854,938
TOTAL ASSETS 585$ 20$ 20,867,583$
LIABILITIES:
Accounts payable -$ -$ -$
Accrued liabilities - - -
Due to other funds - - -
Unearned revenues - - -
Deposits payable - - -
TOTAL LIABILITIES - - -
FUND BALANCES:
onspendable
Advances - - -
Prepaid costs - - -
Restricted for:
Capital projects 585 20 20,867,583
Special programs - - -
Assigned to:
Capital projects - - -
Property acquisitio - - -
Public facilities - - -
Special programs - - -
Street related purposes - - -
TOTAL FUND BALANCES 585 20 20,867,583
TOTAL LIABILITIES AND FUND BALANCES 585$ 20$ 20,867,583$
See independent auditors' report.
(CONTINUED)
June 30, 2013
LIABILITIES AND FUND BALANCES
CITY OF PALM DESERT
- 162 -
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
Schedule 12
Total
Capital Other
Assessment Capital Capital Projects Capital Projects
29 Golf Properties Reserve Funds
2,557,689$ 1,805,206$ 14,346$ 6,381,070$ 18,485,183$
- - - - 170
- 14,959 - - 27,604
- 616 - - 691
500,000 - - 500,000
- - - 8,000,000 12,765,000
334,937 - - - 21,368,795
2,892,626$ 2,320,781$ 14,346$ 14,381,070$ 53,147,443$
45,628$ 251,054$ -$ 41,996$ 728,521$
- - - - 8,606
- - - 1,600,000 2,553,000
- - - 76,238 76,238
- - - - 167,583
45,628 251,054 - 1,718,234 3,533,948
- - - 6,400,000 10,212,000
- 616 - - 691
2,846,998 - - - 23,894,106
- - - - 1,361,729
- - - 5,842,449 5,842,449
- - - 420,387 420,387
- 2,069,111 14,346 - 5,035,892
- - - - 543,215
- - - - 2,303,026
2,846,998 2,069,727 14,346 12,662,836 49,613,495
2,892,626$ 2,320,781$ 14,346$ 14,381,070$ 53,147,443$
- 163 -
Arts in Drainage
Public Places Facilities
REVENUES:
Licenses and permits 250,671$ -$
Intergovernmental revenues - -
Investment earnings 1,502 1,912
Miscellaneous 108 -
TOTAL REVENUES 252,281 1,912
EXPENDITURES:
Current:
General government - -
Parks, recreation and culture 398,821 -
Public works - -
Capital outlay - -
TOTAL EXPENDITURES 398,821 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (146,540) 1,912
OTHER FINANCING SOURCES (USES):
Transfers in - -
Transfers out - -
TOTAL OTHER FINANCING
SOURCES (USES) - -
EXTRAORDINARY GAIN (LOSS) - -
NET CHANGE IN FUND BALANCES (146,540) 1,912
FUND BALANCES - BEGINNING OF YEAR 1,508,344 2,130,637
FUND BALANCES - END OF YEAR 1,361,804$ 2,132,549$
See independent auditors' report.
- 164 -
OTHER CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF PALM DESERT
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2013
Schedule 13
Parks and Assessment
Recreation District No. 94-3
Facilities Signalization Buildings Library Merano
-$ -$ -$ -$ -$
- 177,550 - - -
408 145 4,293 - 3
- - - - -
408 177,695 4,293 - 3
- - - 283,570 -
36,832 - - - -
- 42,723 1,075,049 - -
28,967 283,699 - - -
65,799 326,422 1,075,049 283,570 -
(65,391) (148,727) (1,070,756) (283,570) 3
- - 91,400 283,570 -
- - - - -
- - 91,400 283,570 -
(953,000) - - - -
(1,018,391) (148,727) (979,356) - 3
5,113,804 319,204 3,648,378 543,215 178,917
4,095,413$ 170,477$ 2,669,022$ 543,215$ 178,920$
(Continued)
- 165 -
Silver Spur Highlands CFD
Ranch Undergrounding University
REVENUES:
Licenses and permits -$ -$ -$
Intergovernmental revenues - - -
Investment earnings - - 38,549
Miscellaneous - - 25,170
TOTAL REVENUES - - 63,719
EXPENDITURES:
Current:
General government - - -
Parks, recreation and culture - - -
Public works - - 4,427
Capital outlay - - -
TOTAL EXPENDITURES - - 4,427
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - 59,292
OTHER FINANCING SOURCES (USES):
Transfers in - - -
Transfers out - - -
TOTAL OTHER FINANCING
SOURCES (USES) - - -
EXTRAORDINARY GAIN (LOSS) - - -
NET CHANGE IN FUND BALANCES - - 59,292
FUND BALANCES - BEGINNING OF YEAR 585 20 20,808,291
FUND BALANCES - END OF YEAR 585$ 20$ 20,867,583$
See independent auditors' report.
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
(CONTINUED)
For the year ended June 30, 2013
- 166 -
CITY OF PALM DESERT
Schedule 13
Total
Capital Other
Assessment Capital Capital Projects Capital Projects
29 Golf Properties Reserve Funds
-$ -$ -$ -$ 250,671$
- - - - 177,550
4,729 22,479 41 14,715 88,776
- 1,125,600 - 272,566 1,423,444
4,729 1,148,079 41 287,281 1,940,441
- - - 149,658 433,228
- 864,946 - - 1,300,599
25,114 - 15,925 15,448 1,178,686
922,463 - - 129,003 1,364,132
947,577 864,946 15,925 294,109 4,276,645
(942,848) 283,133 (15,884) (6,828) (2,336,204)
- - - 800,000 1,174,970
- (776,000) - - (776,000)
- (776,000) - 800,000 398,970
- - - (1,600,000) (2,553,000)
(942,848) (492,867) (15,884) (806,828) (4,490,234)
3,789,846 2,562,594 30,230 13,469,664 54,103,729
2,846,998$ 2,069,727$ 14,346$ 12,662,836$ 49,613,495$
- 167 -
- 168 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 169 -
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 14
Special
Treasurers Retiree Service Assessment
Agency 1991 Bond Act Stipend Fund Funds Totals
Cash and investments 1,921,644$ 270,664$ 2,459,072$ 9,333,241$ 13,984,621$
Receivables (net of allowance
for uncollectibles):
Assessments - - - 97,216,295 97,216,295
Interest - - - 2,801 2,801
Due from other governments - - - 144,654 144,654
Prepaid costs - - - 4,467 4,467
Restricted assets:
Cash with fiscal agent - - - 8,033,685 8,033,685
TOTAL ASSETS 1,921,644$ 270,664$ 2,459,072$ 114,735,143$ 119,386,523$
Deposits 1,921,644$ 270,664$ 2,459,072$ 114,735,143$ 119,386,523$
TOTAL LIABILITIES 1,921,644$ 270,664$ 2,459,072$ 114,735,143$ 119,386,523$
See independent auditors' report.
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
June 30, 2013
CITY OF PALM DESERT
- 170 -
ASSETS
LIABILITIES
Schedule 15
Balance Balance
July 1, June 30,
2012 Additions Deletions 2013
ASSETS:
Cash and investments 1,967,617$ 998,984$ 1,044,957$ 1,921,644$
TOTAL ASSETS 1,967,617 998,984 1,044,957 1,921,644
LIABILITIES:
Deposits 1,967,617$ 998,984$ 1,044,957$ 1,921,644$
TOTAL LIABILITIES 1,967,617 998,984 1,044,957 1,921,644
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 2,043,308$ 1,346,577$ 930,813$ 2,459,072$
Due from other government 362,868 - 362,868 -
TOTAL ASSETS 2,406,176 1,346,577 1,293,681 2,459,072
LIABILITIES:
Deposits 2,406,176$ 1,346,577$ 1,293,681$ 2,459,072$
TOTAL LIABILITIES 2,406,176 1,346,577 1,293,681 2,459,072
See independent auditors' report (Continued)
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
For the year ended June 30, 2013
CITY OF PALM DESERT
RETIREE SERVICES STIPEND FUN
AGENCY
TREASURERS 1911 BOND ACT
- 171 -
Schedule 15
Balance Balance
July 1, June 30,
2012 Additions Deletions 2013
ASSETS:
Cash and investments 9,357,854$ 8,321,585$ 8,346,198$ 9,333,241$
Receivables (net of allowance for uncollectibles):
Assessements 100,422,592 - 3,206,297 97,216,295
Interest 4,103 2,801 4,103 2,801
Due from other government 82,748 144,654 82,748 144,654
Prepaid costs 3,558 4,467 3,558 4,467
Restricted assets:
Cash with fiscal agen 8,125,228 19,971 111,514 8,033,685
TOTAL ASSETS 117,996,083 8,493,478 11,754,418 114,735,143
LIABILITIES:
Deposits 117,996,083$ 8,493,478$ 11,754,418$ 114,735,143$
TOTAL LIABILTIES 117,996,083 8,493,478 11,754,418 114,735,143
ASSETS:
Cash and investments 13,639,443$ 10,667,146$ 10,321,968$ 13,984,621$
Receivables (net of allowance for uncollectibles):
Accounts 100,422,592 - 3,206,297 97,216,295
Interest 4,103 2,801 4,103 2,801
Due from other governmet 445,616 144,654 445,616 144,654
Prepaid costs 3,558 4,467 3,558 4,467
Restricted assets:
Cash with fiscal agen 8,125,228 19,971 111,514 8,033,685
TOTAL ASSETS 122,640,540 10,839,039 14,093,056 119,386,523
LIABILITIES:
Deposits 122,640,540$ 10,839,039$ 14,093,056$ 119,386,523$
TOTAL LIABILITIES 122,640,540 10,839,039 14,093,056 119,386,523
See independent auditors' report.
- 172 -
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, 2013
(CONTINUED)
- 173 -
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2013
This part of the City of Palm Desert’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the City’s overall financial health.
Contents
Financial Trends
Theses schedules contain trend information to help the reader understand how the City’s
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant
local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt in
the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City’s financial report relates to the services the City
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year. The City implemented
GASB Statement 34 in 2001; schedules presenting government-wide information include information
beginning in that year.
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2013 2012 2011 2010 2009
Net Investment in capital assets 465,756,172 475,457,375 302,757,128 304,702,414 302,507,877
Restricted 132,741,798 119,736,419 147,648,424 143,394,780 159,157,317
Unrestricted 103,603,715 107,622,257 107,314,002 110,918,145 113,883,303
Total Governmental Activities Net Position 702,101,685 702,816,051 (4) 557,719,554 559,015,339 575,548,497 (3)
Business-Type Activities
Net Investment in capital assets 72,892,200 73,375,634 74,043,419 67,902,786 68,263,719
Restricted - - - - -
Unrestricted 3,682,061 3,901,816 4,068,623 4,391,160 4,686,899
Total Business-type Activities Net Position 76,574,261 77,277,450 78,112,042 72,293,946 72,950,618
Primary Government
Net Investment in capital assets 538,648,372 548,833,009 376,800,547 372,605,200 370,771,596
Restricted 132,741,798 119,736,419 147,648,424 143,394,780 159,157,317
Unrestricted 107,285,776 111,524,073 111,382,625 115,309,305 118,570,202
Total Primary Government Net Position 778,675,946 780,093,501 635,831,596 631,309,285 648,499,115
Governmental Activities 2008 2007 2006 2005 2004
Net Investment in capital assets 287,536,477 213,685,471 166,229,783 147,410,323 141,303,283
Restricted 161,360,654 173,335,615 153,342,045 103,701,569 100,268,597
Unrestricted 120,089,399 111,386,996 108,077,101 96,445,212 79,075,507
Total Governmental Activities Net Position 568,986,530 (3) 498,408,082 (2) 427,648,929 (1) 347,557,104 320,647,387
Business-Type Activities
Net Investment in capital assets 62,814,656 62,956,911 63,233,079 63,588,616 63,857,424
Restricted - - - - -
Unrestricted 5,211,985 5,294,980 4,459,840 2,948,910 1,830,204
Total Business-type Activities Net Position 68,026,641 68,251,891 67,692,919 66,537,526 65,687,628
Primary Government
Net Investment in capital assets 350,351,133 276,642,382 229,462,862 210,998,939 205,160,707
Restricted 161,360,654 173,335,615 153,342,045 103,701,569 100,268,597
Unrestricted 125,301,384 116,681,976 112,536,941 99,394,122 80,905,711
Total Primary Government Net Position 637,013,171 566,659,973 495,341,848 414,094,630 386,335,015
(1)The increase for FY 2006 is due to issuance of District Bond, see note #6.
(2)The increase for FY 2007 is due to issuance of District Bond, see note #6.
(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 18 and note 19.
174
City of Palm Desert
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 16,375,295 17,387,080 17,182,987 16,701,292 17,328,291
Public safety 28,614,153 28,037,453 26,601,668 27,027,643 27,670,237
Housing & Redevelopment (2)6,944,033 10,519,663 15,976,383 16,220,066 16,760,877
Parks, recreation and culture 8,752,623 6,033,019 7,337,403 7,312,679 7,210,706
Public works 16,316,237 17,407,751 16,984,334 19,900,937 22,036,017
Payments to other agencies - 16,994,265 39,418,936 63,320,650 39,085,940
Interest on long term debt 253,381 10,971,707 18,989,167 20,069,813 20,128,441
Total Governmental Activites Expenses 77,255,722 107,350,938 142,490,878 170,553,080 150,220,509
Business-Type Activities:
Desert Willow Golf Course 8,655,754 8,471,567 7,946,063 7,832,690 7,804,265
Office Complex - Parkview 984,811 1,031,178 861,786 875,394 852,746
Total Business-Type Activities 9,640,565 9,502,745 8,807,849 8,708,084 8,657,011
Total primary government expenses 86,896,287 116,853,683 151,298,727 179,261,164 158,877,520
Program Revenues
Governmental Activities
Charges for services
General government 1,833,823 1,805,442 1,921,573 2,127,138 7,574,059
Housing & Redevelopment 5,308,858 5,034,002 4,935,422 4,986,066 -
Public safety 11,147,297 9,041,801 9,825,352 9,431,478 9,396,435
Parks, recreation and culture 898,222 728,721 768,786 618,440 803,218
Public works 768,775 826,251 762,015 706,374 701,125
Operating grants & contributions 5,876,028 7,411,902 5,675,777 6,558,892 5,582,470
Capital grants & contributions 7,733,439 2,309,678 2,255,393 2,722,312 5,048,666
Total Governmental Activites Program Revenues 33,566,442 27,157,797 26,144,318 27,150,700 29,105,973
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,494,819 7,635,352 7,338,640 7,054,263 6,872,935
Office Complex - Parkview 1,215,860 1,222,971 1,217,985 988,056 958,942
Capital grants & contributions 660,685 236,419 - - -
Total Business-type activites program revenue 9,371,364 9,094,742 8,556,625 8,042,319 7,831,877
Total Primary Government program revenue 42,937,806 36,252,539 34,700,943 35,193,019 36,937,850
Net (Expense) / Revenue
Governmental Activites (43,689,280) (80,193,141) (116,346,560) (143,402,380) (121,114,536)
Business-type activites (269,201) (408,003) (251,224) (665,765) (825,134)
Total Primary Government Net Expense (43,958,481) (80,601,144) (116,597,784) (144,068,145) (121,939,670)
General Revenues & Other Changes in Net Assets
Governmental Activities:
Taxes: (Combined/Net Pass-through)38,742,060 73,105,614 114,880,586 120,872,421 123,650,887
Investment Earnings 318,996 1,102,309 2,158,556 2,916,753 6,161,309
Contributions not restricted for specific purpose - 791,256 762,588 644,603 613,648
Gain(loss) on sales of assets - - - - -
Miscellaneous 3,894,203 5,838,881 3,169,977 2,382,208 2,912,180
Refunding of special assessment debt - - - - -
Transfers In / (Out) 437,500 440,000 (6,046,761) 53,237 (5,661,521)
Gain on Transfer to Successor Agency - 144,011,578 - - -
Total Governmental Activites Net Revenues 43,392,759 225,289,638 114,924,946 126,869,222 127,676,503
Business-Type Activities:
Investment Earnings 3,512 13,411 22,559 62,330 87,590
Transfers Out (437,500) (440,000) 6,046,761 (53,237) 5,661,521
Total Business-type activites (433,988) (426,589) 6,069,320 9,093 5,749,111
Total primary government 42,958,771 224,863,049 120,994,266 126,878,315 133,425,614
Change in Net Position
Governmental Activities: (296,521) 145,096,497 (1,421,614) (16,533,158) 6,561,967
Business-Type Activities:(703,189) (834,592) 5,818,096 (656,672) 4,923,977
Total primary government (999,710) 144,261,905 4,396,482 (17,189,830) 11,485,944
(1) 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 #14.
(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 18 and note 19.
Expenses 20092010 (3)2011 (3)2012 (4)2013
175
City of Palm Desert
Changes in Net Position
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 21,953,229 11,659,965 13,276,549 13,159,370 16,294,744
Public safety 26,855,060 24,674,424 21,856,311 18,743,083 15,420,151
Housing & Redevelopment (2)24,095,414 28,296,802 21,086,301 13,984,668 12,108,158
Parks, recreation and culture 8,013,211 4,996,692 4,243,119 4,043,034 3,977,447
Public works 27,245,937 37,091,512 13,894,980 10,428,219 13,046,864
Payments to other agencies 38,993,445 35,719,075 36,844,061 30,183,408 24,051,292
Interest on long term debt 20,706,514 20,097,198 12,526,964 12,749,188 14,124,371
Total Governmental Activites Expenses 167,862,810 162,535,668 123,728,285 103,290,970 99,023,027
Business-Type Activities:
Desert Willow Golf Course 8,167,682 7,989,321 6,913,517 6,636,889 6,657,220
Office Complex - Parkview 649,548 716,592 646,769 609,298 570,135
Total Business-Type Activities 8,817,230 8,705,913 7,560,286 7,246,187 7,227,355
Total primary government expenses 176,680,040 171,241,581 131,288,571 110,537,157 106,250,382
Program Revenues
Governmental Activities
Charges for services
General government 8,454,683 8,225,112 8,318,175 7,059,609 6,540,065
Housing & Redevelopment - -
Public safety 8,808,300 9,078,214 8,376,981 3,945,395 2,737,585
Parks, recreation and culture 1,190,725 1,822,685 1,994,163 1,442,098 1,048,667
Public works 762,440 514,838 491,179 540,028 511,317
Operating grants & contributions 5,843,010 7,951,650 4,930,120 4,800,413 4,632,297
Capital grants & contributions 42,545,033 57,132,742 51,780,221 5,166,856 7,134,158
Total Governmental Activites Program Revenues 67,604,191 84,725,241 75,890,839 22,954,399 22,604,089
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 8,182,741 7,830,863 7,442,330 6,814,638 6,237,087
Office Complex - Parkview 934,833 915,975 864,447 898,884 851,763
Capital grants & contributions 206,609 278,757 295,304 338,478 267,951
Total Business-type activites program revenue 9,324,183 9,025,595 8,602,081 8,052,000 7,356,801
Total Primary Government program revenue 76,928,374 93,750,836 84,492,920 31,006,399 29,960,890
Net (Expense) / Revenue
Governmental Activites (100,258,619) (77,810,427) (47,837,446) (80,336,571) (76,418,938)
Business-type activites 506,953 319,682 1,041,795 805,813 129,446
Total Primary Government Net Expense (99,751,666) (77,490,745) (46,795,651) (79,530,758) (76,289,492)
General Revenues & Other Changes in Net Assets
Governmental Activities:
Taxes: (Combined/Net Pass-through)129,521,410 122,485,939 114,826,387 96,926,134 87,551,146
Investment Earnings 15,309,271 17,521,600 6,197,595 4,240,360 2,985,463
Contributions not restricted for specific purpose 7,240,770 - - - -
Gain(loss) on sales of assets - - - 17,459 -
Miscellaneous 6,369,028 10,790,417 7,025,216 6,347,396 1,852,229
Refunding of special assessment debt - - - - (8,706,206)
Transfers In / (Out) 1,000,000 - - - -
Gain on Transfer to Successor Agency - - - - -
Total Governmental Activites Net Revenues 159,440,479 150,797,956 128,049,198 107,531,349 83,682,632
Business-Type Activities:
Investment Earnings 267,797 239,290 113,598 43,831 -
Transfers Out (1,000,000) - - 254 -
Total Business-type activites (732,203) 239,290 113,598 44,085 -
Total primary government 158,708,276 151,037,246 128,162,796 107,575,434 83,682,632
Change in Net Position
Governmental Activities: 59,181,860 72,987,529 80,211,752 27,194,778 7,263,694
Business-Type Activities:(225,250) 558,972 1,155,393 849,898 129,446
Total primary government 58,956,610 73,546,501 81,367,145 28,044,676 7,393,140
(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 #14.
(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 18 and note 19.
2004 Expenses 20052006 (1)20072008
176
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:2013 2012 2011 2010 2009
Nonspendable 7,678,250 2,926,739 2,939,850 (1) 9,676,961 11,629,384
Restricted - - - - -
Committed - - - - -
Assigned 3,224,761 3,297,152 4,501,159 4,044,421 3,654,300
Unassigned 65,311,919 69,438,971 66,776,414 63,847,586 59,066,988
Total General Fund 76,214,930 75,662,862 74,217,423 77,568,968 74,350,672
All other Governmental Funds:
Nonspendable 49,319,200 39,525,247 40,925,918 41,050,481 23,361,744
Restricted 76,725,388 69,065,451 230,623,054 260,163,043 296,323,735
Committed 15,649,703 20,289,309 17,285,733 (3) 8,871,910 #4,559,739
Assigned 14,144,969 17,552,726 19,375,999 16,432,292 23,812,325
Unassigned - - - - (2,392)
Total all other Governmental Funds 155,839,260 146,432,733 (4) 308,210,704 326,517,726 348,055,151
General Fund:2008 2007 2006 2005 2004
Nonspendable 11,897,843 22,199,914 21,231,046 22,039,893 24,058,272
Restricted - - - - -
Committed - - - - -
Assigned 4,406,391 2,998,204 5,114,813 4,465,521 3,780,547
Unassigned 63,515,054 50,916,281 48,004,509 36,793,370 27,619,600
Total General Fund 79,819,288 76,114,399 74,350,368 63,298,784 55,458,419
All other Governmental Funds:
Nonspendable 23,141,729 35,511,735 29,781,061 25,955,789 24,299,086
Restricted 299,960,611 318,529,973 147,669,565 114,913,358 121,787,414
Committed 18,487 9,000 - - -
Assigned 26,512,084 27,344,381 24,509,173 24,098,104 23,685,407
Unassigned - (55,684) - - (1,644)
Total all other Governmental Funds 349,632,911 381,339,405 201,959,799 164,967,251 169,770,263
(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 18 and note 19.
177
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues:2013 2012 (5)2011 2010 2009
Taxes 50,768,200 82,901,921 124,672,062 130,655,949 134,060,681
Special assessments collected (2) 3,654,337 3,232,923 3,262,163 3,182,549 2,759,444
Licenses & permits 1,586,796 1,041,834 1,089,543 782,271 1,383,778
Intergovernmental revenues 5,097,892 6,637,426 7,605,282 8,700,234 9,543,551
Rental income 5,367,630 5,146,499 5,011,205 5,023,770 5,050,479
Charges for services 898,222 728,721 701,481 618,440 803,218
Investment Earnings 373,012 1,469,142 3,102,649 4,681,243 8,322,808
Fines & forfeitures 242,568 276,452 310,840 343,054 315,284
Miscellaneous 9,028,698 6,814,924 3,095,689 3,374,309 3,479,370
Contributions from property owners - - - - -
Total Revenues 77,017,355 108,249,842 148,850,914 157,361,819 165,718,613
Expenditures:
General government 14,028,252 15,851,883 15,273,085 19,294,744 18,950,675
Housing & redevelopment 5,650,666 8,942,097 18,033,576 13,612,720 14,359,340
Pass-through-agreement - 16,994,265 39,418,936 63,320,650 39,085,941
Public safety 28,299,876 27,551,113 26,824,434 26,882,787 26,906,123
Parks, recreation & culture 6,162,449 3,685,334 3,845,901 4,534,505 5,122,900
Public works 9,819,591 11,306,021 11,256,499 13,971,797 16,241,963
Capital outlay 2,788,676 9,575,227 14,205,889 6,333,521 22,348,953
Debt service:
Principal retirement 318,000 9,032,707 22,914,707 15,250,707 12,778,707
Interest and fiscal charges 255,239 10,187,765 18,176,454 19,280,517 19,424,623
Total Expenditures 67,322,749 113,126,412 169,949,481 182,481,948 175,219,225
Excess(deficiency of Revenues
over(under) expenditures
Other financing sources (uses)
Transfers in 11,274,539 24,453,724 69,995,597 59,960,402 68,088,670
Transfers out (11,010,550) (24,013,724) (70,555,597) (59,520,402) (67,649,434)
Extraordinary Gain / (Loss)- (155,895,962) - - -
Bonds issued/Capital Accreation on bonds (3)- - - 6,361,000 2,015,000
Sale of property (4)- - - - -
Total Other financing sources (uses)263,989 (155,455,962) (560,000) 6,801,000 2,454,236
Net Change In Fund Balance 9,958,595 (160,332,532) (21,658,567) (18,319,129) (7,046,376)
Revenues:2008 2007 2006 2005 2004
Taxes 140,331,466 138,272,454 131,303,483 102,020,742 93,948,185
Special assessments collected (2) 2,060,791 929,348 269,036 227,848 214,950
Licenses & permits 1,453,177 2,691,486 2,685,415 2,056,554 1,316,669
Intergovernmental revenues 18,996,692 23,499,937 11,095,613 11,064,037 6,067,555
Rental income 4,789,421 4,513,146 4,737,861 4,430,915 4,494,098
Charges for services 1,190,725 1,822,685 1,994,163 1,463,850 1,052,467
Investment Earnings 22,592,392 23,985,001 9,351,716 5,654,986 4,241,506
Fines & forfeitures 254,857 274,365 310,868 323,775 306,630
Miscellaneous 20,164,099 2,847,802 2,470,623 3,232,825 2,083,598
Contributions from property owners (1)- 46,006,292 42,979,973 - 2,095,969
Total Revenues 211,833,620 244,842,516 207,198,751 130,475,532 115,821,627
Expenditures:
General government 24,776,785 18,231,351 15,111,294 13,886,346 16,803,380
Housing & redevelopment 38,018,819 26,356,634 19,395,693 12,225,779 10,319,152
Pass-through-agreement 38,993,445 35,719,075 36,844,061 30,183,408 24,051,292
Public safety 26,677,743 24,550,431 21,715,373 18,567,736 15,290,696
Parks, recreation & culture 4,572,695 3,921,063 3,304,867 2,889,789 2,638,386
Public works 22,936,721 33,925,623 11,103,943 7,306,791 10,153,096
Capital outlay 52,256,552 85,604,515 35,359,139 22,409,057 18,927,787
Debt service:
Principal retirement 10,767,707 8,209,707 5,607,707 9,788,423 28,372,707
Interest and fiscal charges 23,376,564 25,814,526 14,072,572 13,537,219 16,643,049
Total Expenditures 242,377,031 262,332,925 162,514,649 130,794,548 143,199,545
Excess(deficiency of Revenues
over(under) expenditures
Other financing sources (uses)
Transfers in 59,723,636 249,249,847 50,225,747 48,697,604 68,236,264
Transfers out (58,723,636) (249,249,847) (50,225,747) (48,697,604) (68,236,264)
Bond Premiums 7,785,375 - - -
Bonds issued/Capital Accreation on bonds (3)- 287,534,894 - - 48,690,000
Payment refunded bond escrow agent 1,484,806 (101,656,501) - - (8,706,206)
Sale of property (4)47,000 5,230,000 3,360,030 3,356,369 1,728,522
Total Other financing sources (uses)2,531,806 198,893,768 3,360,030 3,356,369 41,712,316
Net Change In Fund Balance (28,011,605) 181,403,359 48,044,132 3,037,353 14,334,398
(1)Bond was issued in FY 2006 and FY 2007. See note #14 for further explanation.
(2) Prior to 2004, the City was recording Assessment District Property Taxes in its debt service funds, city has since removed these from its debt service funds.
(3) See Note #19 of the Financial Statement, included Capital Accreation of Bonds.
(4) Prior to 2008 Sale of Property/Inventory was recorded as other financing sources. In 2008 Sale of Inventory was moved to General Revenue
(5) 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.
21.5%
(4,876,570)
(319,016) (30,543,411)
18.0%
9,694,606
0.9%Debt service as a percentage of noncapital
expenditures
(21,098,567)
26.4%
Debt service as a percentage of noncapital
expenditures 15.5%19.3%36.2%
(9,500,612) (25,120,129)
(27,377,918) (17,490,409)
21.1%
44,684,102
19.6%18.6%
178
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 and contributions from property owners
(3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
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
FY
2
0
0
5
FY
2
0
0
4
Total Revenues
Combined other (1)
Miscellaneous other (2)
Intergovernmental revenues
Licenses & permits
Taxes & Special Assessments
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
FY
2
0
1
3
FY
2
0
1
2
FY
2
0
1
1
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
FY
2
0
0
5
FY
2
0
0
4
Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works
Public safety
Housing & Redevelopment
General Government
179
City of Palm Desert
Supplemental - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
FY 2013 2012 2011 2010 2009
Revenue Type:
Sales Tax 16,764,808$ 15,836,953$ 14,680,578$ 13,273,793$ 14,474,933$
Transient Occupancy Tax 9,188,981 8,085,225 7,421,769 6,848,132 7,030,048
Property Tax (3)9,529,018 7,976,494 8,341,728 8,707,567 8,776,917
Investment Earnings 126,206 408,661 793,461 1,766,868 2,142,915
Transfer In 2,127,655 2,240,703 2,691,634 4,747,672 2,684,568
Franchises 2,892,805 2,856,679 2,771,594 2,705,902 2,818,729
State Subventions (1) (3)26,691 25,759 236,211 151,489 173,448
Building & Grading Permits 1,206,935 750,442 783,031 575,852 950,805
Reimbursments (4)1,868,804 2,535,977 1,971,505 2,488,378 3,263,247
Business License Tax 1,149,551 1,076,541 1,085,411 1,071,997 1,258,688
Timeshare Mitigation Fee 1,292,859 1,110,227 1,192,490 1,483,220 949,871
Plan Check Fees 500,698 275,728 317,332 224,325 389,770
Property Transfer Tax 520,393 485,040 399,280 455,580 324,817
Other Revenues (2)1,961,314 1,398,669 1,475,154 1,567,651 1,601,947
Total General Revenue 49,156,718$ 45,063,098$ 44,161,178$ 46,068,426$ 46,840,703$
FY 2008 2007 2006 (3)2005 2004
Revenue Type:
Sales Tax 17,195,743$ 17,918,375$ 17,776,928$ 15,453,148$ 15,138,424$
Transient Occupancy Tax 8,605,714 8,627,221 8,026,101 7,715,624 7,660,831
Property Tax (3)9,333,842 8,714,568 8,261,944 4,003,585 3,369,711
Investment Earnings 4,571,147 4,890,891 2,636,050 1,486,830 1,135,952
Transfer In 1,101,610 1,122,224 1,083,589 1,130,231 1,092,475
Franchises 2,887,727 2,907,062 2,580,917 2,439,134 2,417,856
State Subventions (1) (3)220,785 267,595 358,954 3,712,256 2,020,583
Building & Grading Permits 975,296 1,476,290 1,963,733 1,446,524 970,826
Reimbursments (4)4,933,807 2,465,685 1,982,846 1,830,295 1,547,862
Business License Tax 1,311,090 1,231,587 1,242,721 1,154,143 955,501
Timeshare Mitigation Fee 881,350 782,739 661,187 526,271 392,988
Plan Check Fees 562,930 617,999 702,857 701,215 459,046
Property Transfer Tax 604,236 671,806 1,030,412 1,099,665 870,415
Other Revenues (2)1,900,529 2,436,664 2,606,760 2,019,035 1,144,752
Total General Revenue 55,085,806$ 54,130,706$ 50,914,999$ 44,717,956$ 39,177,222$
(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
will no longer apply.
180
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property
transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants,
incomes, penalties, permits, sales and taxes.
*State Subventions is any combination of trailer coach fees, 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
$70,000,000
F
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FY
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6
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5
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Combined Other (1)
Interest
Property Tax
Transient Occupancy Tax
Sales Tax
181
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2013 2012 2011 2010 2009
Expenditure:
Public Safety (1)17,002,291$ 16,532,894$ 16,047,991$ 15,671,095$ 16,266,052$
City Administration (2)7,180,519 7,670,377 8,023,314 8,556,627 10,076,543
Public Works Administration 2,528,131 2,527,817 2,380,255 3,021,319 3,720,106
Community Promotions 575,119 526,804 497,366 990,505 1,798,860
Street Maintenance 2,353,655 2,446,854 2,522,117 2,565,567 2,183,445
Building Safety 1,517,937 1,538,506 1,523,748 1,756,589 2,082,996
Street Resurfacing 1,179,743 2,332,968 2,268,901 708,006 1,115,721
Public Works (4)1,505,018 1,056,998 1,354,255 1,278,983 1,552,242
Other Expenditures (3)14,762,237 8,984,441 12,894,776 8,301,439 13,513,354
Total Expenditures 48,604,650$ 43,617,659$ 47,512,723$ 42,850,130$ 52,309,319$
FY 2008 2007 2006 2005 2004
Expenditure:
Public Safety (1)14,413,196$ 13,404,056$ 12,323,448$ 12,135,671$ 11,432,803$
City Administration (2)9,861,106 8,588,341 8,410,706 7,196,081 5,999,228
Public Works Administration 3,329,792 3,014,583 2,823,359 2,506,688 2,270,854
Community Promotions 2,532,637 2,402,435 1,687,148 1,616,071 1,420,717
Street Maintenance 2,133,448 1,968,849 1,681,583 1,558,970 1,411,018
Building Safety 3,260,855 3,084,015 2,695,889 2,297,814 1,620,160
Street Resurfacing 3,342,542 1,192,629 1,277,554 1,375,409 897,153
Public Works (4)1,348,012 1,204,079 1,117,417 934,821 676,505
Other Expenditures (3)11,159,329 17,989,005 7,846,311 7,256,066 6,805,633
Total Expenditures 51,380,917$ 52,847,992$ 39,863,415$ 36,877,591$ 32,534,071$
(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.
182
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
$60,000,000
F
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0
0
7
F
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2
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6
F
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2
0
0
5
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2
0
0
4
Combined Other (1)
Community Promotions
Public Works Administration
City Administration (2)
Public Safety (3)
183
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184
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2013 2012 2011 2010 2009
Total General Revenue (2)47,029,063$ 42,822,395$ 41,469,544$ 41,320,754$ 44,156,135$
Population (1)49,949 49,471 49,111 52,067 51,509
General Revenue Per Capita 942$ 866$ 844$ 794$ 857$
FY 2008 2007 2006 2005 2004
Total General Revenue (2)53,984,196$ 53,008,482$ 49,831,410$ 43,587,725$ 38,084,747$
Population (1)50,907 49,752 49,539 49,280 44,812
General Revenue Per Capita 1,060$ 1,065$ 1,006$ 884$ 850$
FY 2013 2012 2011 2010 2009
Total General Expenditures (2)42,155,428$ 42,099,903$ 41,833,291$ 42,499,812$ 48,696,321$
Population (1)49,949 49,471 49,111 52,067 51,509
General Expenditures Per
Capita 844$ 851$ 852$ 816$ 945$
FY 2008 2007 2006 2005 2004
Total General Expenditures (2)49,238,257$ 43,565,108$ 38,488,367$ 35,426,268$ 31,674,743$
Population (1)50,907 49,752 49,539 49,280 44,812
General Expenditures Per
Capita 967$ 876$ 777$ 719$ 707$
(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
185
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)
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
2005 6,775,427,147 1,084,068,343 135,508,543 385,678,161 (239,745,884)10,423,734,072 1.00000 9,281,846,679
2004 6,061,076,589 1,306,579,384 108,881,615 372,012,186 (199,616,295)9,073,467,947 1.00000 8,704,132,380
(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
186
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
Source: Riverside County Assessor thru HDL Coren & Cone
7.90%6.64%
11.63%12.86%10.63%
5.29%3.43%4.70%4.60%
0.49%
-1.00%
4.00%
9.00%
14.00%
19.00%
24.00%
29.00%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Percent Increase in Assessed Valuation
FY 2004 to FY 2013
$-
$5,000
$10,000
$15,000
$20,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Value in Millions
Net Assessed Valuation -Historical Comparison
FY 2004 to FY 2013
187
City of Palm Desert
Supplemental FY 2013 and 2012 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency FY 2013 Rate FY 2012 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.
188
City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Fiscal
Year
Basic
County-wide
Levy
Total
Direct Tax
Rate
Desert Sands
Unified School
District
Desert
Community
College Dist.
Coachella
Valley Water
District
Coachella
Valley Water
District I.D. 58
2013 1.00000 1.00000 0.11156 0.01995 0.80000 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
2005 1.00000 1.00000 0.09581 0.01994 0.02080 0.02690
2004 1.00000 1.00000 0.09750 0.00000 0.02080 0.02870
Notes:Proposition 13 limits the ability of the city to raise the property tax rate.
Source: CalMuni Statistics Inc
City Direct Overlapping Rates
189
City of Palm Desert
Principal Property Taxpayers
Current Year and Ten Years Ago
2013 2004
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 141,940,644$ 1.17%Marriott Desert Springs $255,641,263 2.93%
Marriott Desert Springs 138,255,385 1.14%WEA Palm Desert 98,393,683 1.13%
Pru Desert Crossing II
LLC 90,540,504 0.75%Elisabeth E. Stewart 68,982,908 0.79%
WVC Rancho Mirage 83,371,563 0.69%Property California
SCJLW One Corp.58,012,054 0.66%
Gardens on El Paseo LLC 80,874,024 0.67%El Paseo Prop. L.P.52,834,590 0.61%
Sinatra and Cook Project 53,798,432 0.44%Big Horn Development 40,696,447 0.47%
Elisabeth E. Stewart 53,196,833 0.44%J H Palm Desert 39,846,414 0.46%
Monarch Sevilla Venture 50,833,625 0.42%Marriott Ownership
Resorts-Timeshares 36,041,142 0.41%
Walmart Real Estate
Business Trust 47,806,227 0.40%CNL Hospitality Partners
L.P 29,130,159 0.33%
Segovia Operations 46,716,000 0.39%National Golf Operating
Partnership 26,615,429 0.30%
Total 787,333,237$ 6.51%Total 706,194,089$ 8.09%
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.
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.
Source: HdL Coren & Cone thru Riverside County Assessor 12/13 and HdL Coren & Cone thru Riverside County Assessor 03/04
190
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
2004 3,080,422 3,007,652 97.64%72,770 3,080,422$ 100.00%
2005 3,768,896 3,501,718 92.91%267,178 3,768,896$ 100.00%
2006 4,318,880 4,243,595 98.26%75,285 4,318,880$ 100.00%
2007 4,820,583 4,575,158 94.91%245,425 4,820,583$ 100.00%
2008 5,206,384 4,734,970 90.95%471,414 5,206,384$ 100.00%
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%
(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, 2013.
(5) Includes amounts receivable for tax year 2012-2013 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
191
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2013
Top 25 Sales Tax Generators (1)Primary Economic Category
APPLE STORES SPECIALTY STORES
ARCO AM/PM MINI MARTS SERVICE STATIONS
BED BATH & BEYOND DEPARTMENT STORES
BEST BUY STORES LP APPLIANCE / ELECTRONICS
CIRCLE K FOOD STORE SERVICE STATIONS
CONSOLIDATED ELECTRICAL DISTRIBUTORS BLDG.MATLS-WHSLE
COSTCO WHOLESALE COMPANY GENERAL STORES
DESERT SPRINGS RESORT & SPA HOTEL / FOOD & BEVERAGE
J.C.PENNY COMPANY INC DEPARTMENT STORES
KOHLS DEPARTMENT STORES DEPARTMENT STORES
LOWE'S HOME IMPROVEMENT BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES
MARSHALLS STORES APPAREL STORES
PETE CARLSONS GOLF & TENNIS SPORTING GOODS
RALPH'S GROCERY SUPERMARKETS
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 STORE DEPARTMENT STORES
TOMMY BAHAMA APPAREL STORES
USA SERVICE STATIONS SERVICE STATIONS
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
$21.0
20
0
4
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
Millions
Sales and Use Tax Trends FY 2004 -2013
0.8%-4.0%
-15.8%
-8.3%
7.9%
5.9%
Amounts
% = % Change from Prior Year
2.1%
15.0%
15.138 15.453 17.776 17.918 17.195 14.474 13.273 14.680 15.836 16.764
10.6%11.1%
-In Lieu *
192
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
Apparel Stores 188,472$ 173,884$ 168,235$ 134,186$ 142,488$ 159,207$ 155,859$ 141,510$ 132,831$ 108,829$
General Merchandise 378,370 366,780 321,023 304,396 326,673 388,583 392,738 362,512 340,277 307,186
Food Markets 76,777 50,734 46,890 40,573 44,880 49,398 53,870 50,556 47,455 52,461
Restaurants 237,778 227,653 152,043 137,475 145,907 181,731 184,954 178,248 167,315 152,508
Furniture/Appliance 99,696 97,327 97,171 97,415 106,166 135,775 161,997 166,109 155,921 135,694
Bldg.Matls-Wholesale 98,481 88,217 73,023 58,241 86,564 95,633 69,773 73,228 68,737 56,180
Automotive 19,857 18,264 15,094 11,314 10,301 8,596 6,121 6,245 5,862 8,211
Service Stations 63,849 86,637 60,764 66,416 64,912 63,969 59,401 48,564 45,585 39,146
Other Retail 158,633 148,921 141,408 185,722 218,005 282,973 295,830 281,388 264,129 243,474
Non-Retail (1)145,519 126,217 182,227 185,655 182,223 219,411 222,177 218,591 205,184 193,041
Amounts in millions
Totals 1,467,432$ 1,384,634$ 1,257,878$ 1,221,393$ 1,328,119$ 1,585,276$ 1,602,720$ 1,526,951$ 1,433,296$ 1,296,730$
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
193
City of Palm Desert
Supplemental Prinicipal Sales Tax Remitters
Current and Ten Calendar Years Ago
Tax Amount Percentage Tax Amount Percentage
General Merchandise 378,370 25.78%307,186$ 23.69%
Other Retail 158,633 10.81%243,474$ 18.78%
Non-Retail (1)145,519 9.92%193,041$ 14.89%
Restaurants 237,778 16.20%152,508$ 11.76%
Apparel Stores 188,472 12.84%108,829$ 8.39%
Furniture/Appliance 99,696 6.79%135,694$ 10.46%
Service Stations 63,849 4.35%39,146$ 3.02%
Bldg.Matls-Wholesale 98,481 6.71%56,180$ 4.33%
Food Markets 76,777 5.23%52,461$ 4.05%
Automotive 19,857 1.35%8,211$ 0.63%
Amounts in millions
Totals 1,467,432$ 1,296,730$
(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
2012 2003Industry
194
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business Type Activities
Successor Agency g Special Total Percentage
Fiscal Redevelopment Assessment Note Capital Primary of Personal Per
Year Bonds Bonds c Payable Leases Government Income b Capita b
2004 256,000,000 28,623,000 981,656 833,358 286,438,014 16.16%6,392
2005 250,485,000 26,050,000 858,949 509,755 277,903,704 13.45% 5,639
2006 245,000,000 73,855,000 736,242 170,493 319,025,493 15.21% 6,440
2007 a 421,819,894 122,393,000 613,535 2,181,546 547,007,975 25.65% 10,987
2008 412,694,700 115,398,000 490,828 1,582,782 530,166,310 21.49%10,414
2009 d 401,601,475 114,597,000 368,121 955,141 517,521,737 29.80%10,047
2010 e,f 388,972,156 117,165,000 245,414 328,273 506,710,843 20.46%9,732
2011 368,261,367 113,713,000 122,707 1,035,721 483,132,795 24.17%9,838
2012 354,527,796 110,393,000 - 2,291,358 112,684,358 5.86%2,278
2013 339,786,269 106,955,000 - 1,751,083 108,706,083 4.14%2,066
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
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 John E. Husing, Ph.D. Economics & Politics, Inc ., California Department of Finance,
and U.S Census Bureau.
c - Special Assessment includes Highlands Undergrounding AD No# 04-01, as of June 30, 2013 the balance was $1.589M.
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. At June 30,2013 the outstanding balance was $1.602M.
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. At June 30, 2013 the outstanding balance was $0.919M.
f - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variiable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
at June 30, 2013 the outstanding Balance was $4.810M.
g -On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies.
which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see note 18
and note 19. This debt is not the City's obligation.
195
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
Successor Agency Percentage of Actual
Fiscal Redevelopment Special Assessment Taxable Value of Per
Year Bonds Bonds Property Capita
Note: There is no General Obligation Bonds from FY2004 to FY 2013
196
City of Palm Desert
Supplemental Special Assesment Information
June 30, 2013
District Name\Description 2003 01-01 Revenue
Bonds 94-2 Sunterrace
2003 01-01
Revenue Bonds 94-
3 Merano
2003 01-01
Revenue Bonds Silver
Spur Ranch
Utility Undergrounding
2004 R-Bonds
98-1
Canyons @ Bighorn
Community Facilities
District No. 2005-1
(University Park) Special
Tax Bonds Series 2006A
Bond Issue Date 06/25/03 06/25/03 06/25/03 02/19/04 05/09/06
Final Maturity Date 09/02/14 09/02/20 09/02/28 09/02/18 09/01/37
Highest Interest Rate 4.80%5.25%5.375%5.100%5.424%
Bond Issue Amount 930,000$ 1,153,000$ 2,340,000$ 2,955,000$ 67,915,000$
Matured Principal 695,000$ 563,000$ 590,000$ 1,290,000$ 7,140,000$
Called Principal 155,000$ 5,000$ 160,000$ 1,260,000$ 6,130,000$
Outstanding Bonds (4)80,000$ 585,000$ 1,590,000$ 405,000$ 54,645,000$
Redemption Premium 3.00%3.00%3.00%3.00%3.00%
Original Parcels 71 121 201 97 37
Active Parcels 0 120 193 12 68
Reserve Requirement (5)8,000$ 58,500$ 97,740$ 40,500$ 4,006,620$
Reserve Balance 12/13 (1)83,840$ 69,180$ 160,856$ 96,540$ 4,155,510$
Principal Due 14/15 (2)80,000$ 75,000$ 75,000$ 70,000$ 1,285,000$
Principal Levied 14/15 (3)-$ 74,491$ 75,160$ 72,746$ 1,285,000$
Interest Due 14/15 (2)1,920$ 27,805$ 81,401$ 18,159$ 2,853,680$
Interest Levied 14/15 (3)-$ 29,662$ 84,563$ 19,332$ 2,853,680$
12/13 Delinquency Rate 3.41%3.17%1.52%48.14%0.78%
Arbitrage Installment Computation Date:
90% Rebate Due 09/02/14 09/02/14 12/17/13 12/16/13 05/08/16
Arbitrage Yield Rate 7.9769%6.672%5.1577%5.8386%5.3599%
Arbitrage-Amount Owed - - ---
Continuing Disclosure Last Report
Issued:12/14/2012 12/14/2012 12/14/2012 12/14/2012 12/14/2012
District Name\Description
2004-2 Section 29
Assessment District
Limited Obligation
Improvement Bonds
2004-1 Palm Desert
Highlands
Undergrounding
Series 2006
Series 2008
Community Facilities
District No. 91-1
Special Tax Refunding
Bonds
Series 2009A (Taxable)
Energy Independence
Program Limited
Obligation Improvement
Bonds
Series 2009B (Taxable)
Energy Independence
Program Limited
Obligation Improvement
Bonds
Bond Issue Date 3/29/2007 8/8/2006 12/19/2007 5/31/2009 9/2/2009
Final Maturity Date 9/2/2037 9/2/2036 10/1/2020 9/2/2029 9/2/2029
Highest Interest Rate 5.100%5.150%4.000%3.000%3.000%
Bond Issue Amount 29,430,000 3,165,000 10,935,000 2,015,000 1,136,000
Matured Principal 2,735,000 266,000 6,205,000 351,000 158,000
Called Principal 25,000 1,346,000 - 398,000 179,000
Outstanding Bonds (4)26,670,000 1,553,000 4,730,000 1,266,000 799,000
Redemption Premium 3.00%3.00%3.00%3.00%3.00%
Original Parcels (Parcels in District)707 172 1,153 61 49
Active Parcels 626 131 1,060 48 42
Reserve Requirement (5)1,929,800$ NA 819,345$ NA NA
Reserve Balance 12/13 (1)1,945,389$ NA 1,001,822$ NA NA
Principal Due 14/15 (2)615,000 37,000 1,000,000 82,000 46,000
Principal Levied 14/15 (3)614,491 34,190 1,000,000 82,000 46,000
Interest Due 14/15 (2)1,312,212 77,998 171,007 36,750 23,280
Interest Levied 14/15 (3)1,325,612 71,954 171,008 36,750 23,280
12/13 Delinquency Rate 0.14%1.18%1.14%2.14%2.14%
Arbitrage Installment Computation Date:
90% Rebate Due 04/11/17 08/08/16 08/08/16 NA NA
Arbitrage Yield Rate 5.0134%5.0691%3.8681%NA NA
Arbitrage-Amount Owed ---- -
Continuing Disclosure Last Report
Issued:12/14/2012 NA 12/14/2012 NA NA
(1) Reserve Balances are as of 9/30/13.
(2) Amount represents principal and interest to be collected on the FY 13/14 tax roll for Debt Service Payment due in FY 14/15.
(3) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments.
(4) Represents Outstanding Bonds after September 2, 2013 principal payment.
(5) Reserve Requirement as of 9/2/13
Source: Wildan Financial Annual Report
197
City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30, 2013
2012/13 Assessed Valuation:12,077,472,159$
City's Share of
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT:Total Debt 6/30/13 % Applicable (1)Debt 6/30/13
Desert Community College District 318,557,913$ 19.619%62,497,878$
Desert Sands Unified School District 299,439,842 34.848%104,348,796
Palm Springs Unified School District 314,298,479 4.379%13,763,130
City of Palm Desert - 0.000%-
City of Palm Desert 1915 Act Bonds 30,200,000 100.000%30,200,000
City of Palm Desert Community Facilities District No. 91-1 5,695,000 100.000%5,695,000
City of Palm Desert Community Facilities District No. 2005-1 62,145,000 100.000%62,145,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 278,649,804$
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Riverside County General Fund Obligations 640,243,149$ 5.989%38,344,162$
Riverside County Pensions Obligations 346,790,000 5.989%20,769,253
Riverside County Board of Education Certificate of Participation 3,900,000 5.898%233,571
Desert Sands Unified School District Certificates of Participation 51,790,000 34.848%18,047,779
City of Palm Desert General Fund Obligation 4,810,000 100.000%4,810,000
Coachella Valley Recreation and Park District Certificates of Participation 2,215,000 27.553%610,299
Coachella Valley County Water District, ID No. 71 Certificate of Participation 0 0.000%-
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT 82,815,064$
Less:Riverside County Supported Obligations 652,486 -
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT 82,162,578$
OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)648,945,796$ .281-100%331,812,434$
TOTAL CITY DIRECT DEBT 4,810,000$
TOTAL GROSS OVERLAPPING DEBT 688,657,302$
TOTAL NET OVERLAPPING DEBT 688,004,816$
GROSS COMBINED TOTAL DEBT 693,277,302$ (2)
NET COMBINED TOTAL DEBT 692,624,816$
(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.
Ratios to 2012-13 Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.31%
Total Direct Debt ($4,810,000)0.04%
Gross Combined Total Debt 5.74%
Net Combined Total Debt 5.73%
Ratios to Successor Agencies Redevelopment Incremental Valuation (7,558,685,021)$
Total Overlapping Tax Increment Debt 4.39%
Source: California Municipal Statistics, Inc., San Francisco
198
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Value 12,077,472,159$
Debt Limit (15% of Assessed Value) (1) 1,811,620,824
Debt Applicable to Limit:
General Obligation Bonds 1,589,000
Less: Amount set aside for
repayment of general obligation
debt -
Total Debt Applicable to Limit 1,589,000
Legal debt margi 1,810,031,82$
200 2005 2006 2007 2008 2009 2010 2011 2012 2013
Debt Limit 1,306,436,757 1,397,304,489 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
Total Net debt applicable to limit - - - 2,783,00 2,748,00 2,702,00 1,719,00 1,658,00 1,624,00 1,589,00
Legal debt margi 1,306,436,75 1,397,304,48 1,582,592,57 1,780,789,97 1,968,660,15 2,073,470,69 1,998,012,41 1,968,167,36 1,883,000,93 1,810,031,82
Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0.16% 0.14% 0.13% 0.09% 0.08% 0.09% 0.09%
(1) Section 43605 of the California Government Code.
Source: California Municipal Statistic, Inc. San Francisco
Legal Debt Margin Calculation for Fiscal Year 2013
FISCAL YEAR
199
City of Palm Desert
Pledged-Revenue Coverage
Last Ten Fiscal Years
Special Special
Fiscal Assessment Assessment
Year Collections Principal Interest Coverage Collections Principal Interest Coverage
2004 4,606,935 1,790,000 2,161,283 1.1659 20,344,776 4,800,000 11,748,004 1.229
2005 2,878,134 2,073,000 1,483,245 0.8093 23,585,980 5,260,000 12,366,733 1.338
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 44,459,163 15,290,000 17,651,958 1.350
2013 9,524,786 3,786,896 5,255,558 1.0533 33,473,418 16,315,000 17,158,418 1.000
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
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 informantion 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 14 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 $5.225 million dollars of the Energy Independence Program Variiable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment was paid on September 2, 2010.
f -On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies.
which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see note 18
and note 19. This debt is not the City's obligation.
Debt ServiceDebt Service
Special Assessment Bonds Tax Increment b
200
Last Ten Calendar Years
Calendar Percentage Per Capita City Riverside Percentage County
Year City Increase Personal Personal Unemployment County Increase Unemployment
End Population (Decrease)Income CY a b Income CY Rate c Population (Decrease)Rate c
2013 49,949 1.0%2,627,948,478$ 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%
2005 49,280 10.0%2,066,437,521 41,933 3.1%1,877,000 5.64%5.4%
2004 44,812 2.0%1,772,405,266 39,552 3.5%1,776,743 5.00%6.0%
a - Personal income, population and per capita information provided by John E. Husing, Ph.D. Economics & Politics Inc .,
Californa Department of Finance., and U.S. Census Bureau.
b - 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.
c - Unemployment rate for fiscal year 12/13 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, John E. Husing, PhD, Economics & Politics, Inc, State Employment Development Department
City of Palm Desert
Demographic & Economic Statistics
201
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 8.41%
Universal Protection Services 1,500 2 5.47%
Securitas-Security Service
USA 700 3 2.55%
Sunshine Landscape 500 4 1.82%
Macy's Department Store 301 5 1.10%
Bighorn Golf Club 250 6 0.91%
Costco 250 7 0.91%
Desert ARC 250 8 0.91%
Westin-Desert Willow 248 9 0.91%
Time Warner Cable 236 10 0.86%
Totals 6,539 24%Totals - 0%
(1) The information for 2004 is not available, tracking for this data began in 2006
(2) As of June 30, 2013
(3) Percentage of Total City Employment data used was Calendar Year end 2012
Sources: InfoUSA.com - Federal and State Government not included, John E. Husing, PhD, Economics & Politics, Inc,
2013 2 2004 1
202
City of Palm Desert
Supplemental Miscellaneous Statistics
1-Jun June 30, 2013
City/ Municipal Government
Form of Government:Council - City Manager/Charter City
Date of Incorporation:November 26, 1973
Number of Employees:107 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:8,325 active business licenses
Number of Hotels & Rooms: 15 hotels, 2,202 rooms
CONTRACT SERVICES:
Police Department Contract with Riverside County Sheriff - 74 positions plus 24 support staff
Fire Department Contract with Riverside County/State Fire 53 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: American Guarantee & Liab. Insurance
Special Events Calif. Joint Powers Insurance Authority $1 Million
Worker's Compensation Calif. Joint Powers Insurance $5 Million
Property Insurance Robert Driver Based on Prop. Value
Health Insurance
Medical California PERS; choice of PPO, HMO, Kaiser
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
203
City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program
Last Ten Fiscal Years
Function / Program 2013* #2012* #2011*2010 2009 2008 2007 2006 2005 2004
General Government
City 33 26 31 31 49 49 51 53 52 51
Economic Dev & Housing # 12 17 24 25 19 19 19 19 19 18
Public Safety 24 24 25 26 35 35 35 28 28 28
Police & Fire (1)157 162 155 151 148 146 143 129 123 123
Public Works 38 40 47 49 53 52 44 49 39 39
Totals 264 271 284 284 318 315 310 289 277 275
(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
204
City of Palm Desert
Operating Indicators by Function / Program
Last Eight Fiscal Years
Function / Program 2013 2012 2011 2010 2009 2008 2007 2006
General Government
Business License Inspections 196 477 515 473 617 489 447 420
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons)52,131 49,205 53,108 51,483 58,198 67,940 73,467 71,820
Recyclables Collected 24,862 23,588 22,867 20,591 22,155 23,798 24,089 24,359
Public Safety
Physical Arrests 986 1,012 1,134 1,342 1,446 1,550 1,430 543
Parking Violations 198 569 332 933 1,278 770 694 1,374
Traffic Violations 5,080 6,216 8,360 10,200 9,162 5,929 6,875 4,527
Emergency Responses-Fire Department 7,907 7,151 7,720 7,772 7,149 6,908 6,785 6,600
Fires Extinguished 104 101 107 104 119 154 241 928
Fire Inspections 3,048 5,235 4,651 4,825 8,248 4,267 5,934 1,845
Building Permits Issued 4,548 3,448 3,711 3,230 3,637 4,012 5,813 5,683
Building Inspections Conducted 19,107 14,749 14,069 14,080 18,040 26,401 33,215 29,925
Public Works
Street Resurfacing (miles) (3)23 60 5 8 13 17 9 11
Parks, recreation & culture
Athletic Field Permits Issued 2,635 3,682 6,050 6,281 6,149 5,949 4,510 2,967
Amphitheater / Pavilions Permits Issued 128 266 286 226 133 133 84 81
Community Center Admissions 53,062 69,240 30,298 59,986 55,954 112,540 97,339 92,083
Aquatic Center Admissions (2)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,
205
City of Palm Desert
Capital Asset Statistics by Function / Program
Last Eight Fiscal Years
Function / Program 2013 2012 2011 2010 2009 2008 2007 2006
General Government
Contracted Services (1)
Collection trucks 36 36 51 51 54 69 61 71
Public Safety - Police & Fire
Police Stations 1 1 1 1 1 1 1 1
Police Sub Stations 1 0 0 2 2 2 2 2
Patrol Units-Cars 28 31 31 26 30 29 29 28
Patrol Units-Motorcycles 10 10 10 10 10 7 5 4
Fire Stations 3 3 3 3 3 3 3 3
Fire Trucks 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved
Ambulance 4 plus 1 Reserved 4 plus 1 Reserved 3 plus 1 Support 3 plus 1 Support 3 plus 1 Support 3 plus 1 Support 3 plus 1 Support 3 plus 1 Support
Fire Prevention Pick-ups 3 3 3 3 3 3 3 3
Public Works
Streets (miles)170 174 159 159 159 159 154.11 154.11
Traffic Signals 98 98 97 99 99 99 87 85
Parks, recreation & culture
Acreage 201 201 201 201 212 200 200 200
Total Parks 13 13 13 13 14 13 13 11
Playgrounds 16 16 16 16 16 9 8 7
Baseball/softball diamonds 8 8 8 8 9 11 11 8
Soccer/football fields 9 9 9 9 9 7 7 5
Basketball Courts 11 11 11 11 11 9 9 6
Tennis Courts 10 10 10 10 10 10 10 8
Volleyball Courts 8 8 8 8 8 10 10 6
Community Centers 2 2 2 2 2 2 2 2
Skateboard Parks 2 2 2 2 2 2 2 1
Aquatic Center (2)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
Occupancy Rate 88%83%90%97%98%100%100%100%
Number of Tenants by Type
Government (State, local regional)8 10 10 10 11 11 10 9
Non-Profit 4 5 7 7 5 7 6 6
Private 5 3 4 6 7 6 8 8
Square Footage lease by tenant
Government (State, local regional)31,321 32,021 32,696 34,617 34,617 34,402 33,298 32,457
Non-Profit 4,467 5,215 5,663 4,735 4,735 6,188 5,708 5,708
Private 8,513 4,310 7,350 10,212 10,212 9,732 11,316 10,836
Vacant 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
Holes 36 36 36 36 36 36 36 36
Golf Carts 172 172 172 160 160 160 160 160
Clubhouse square footage 39,000 39,000 39,000 33,000 33,000 33,000 33,000 33,000
Rounds per Course
Fire Cliff 45,645 45,005 44,745 45,988 46,041 46,688 47,263 46,602
Mountain View 38,669 41,666 39,178 37,146 34,899 43,898 41,182 43,725
Total Annual Rounds 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
206
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
207
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208
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
City of Palm Desert
Project Area Statistics
June 30, 2013
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$
1,639,897,172$
150,000,000$
307,480,720$
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.
(2) Uncertainty exists with regards to TI Limit relative to Dissolution Law.
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: Successor Agency to the Palm Desert Redevelopment Agency
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$
210
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2013
DESCRIPTION $22,070,000
Tax Allocation Bonds
$19,000,000
Tax Allocation Bonds
$24,945,000
Tax Allocation Bonds
$62,300,000
Tax Allocation
Revenue
$32,600,000
Tax Allocation
Revenue
BondYears28272124 11
Bond Issue Date 03/13/02 08/05/03 06/24/04 07/06/06 01/09/07
Final Maturity Date 04/01/30 04/01/30 04/01/25 04/01/30 04/01/18
Highest Interest Rate 5.100%5.000%5.000%5.820%5.000%
Bond Issue Amount 22,070,000$ 19,000,000$ 24,945,000$ 62,320,000$ 32,600,000$
Outstanding Bond Amount 22,070,000$ 19,000,000$ 16,495,000$ 46,505,000$ 16,970,000$
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 13/14 - 0 1,210,000 2,745,000 3,100,000
Interest Due 13/14 1,114,665 950,000 776,988 2,422,240 794,500
Arbritage Yield Rate 5.2939%4.8571%4.7961%4.7182%3.8374%
Arbritage-Amount Owed - - - - -
Arbritage Five Year Due Date:04/13/17 08/05/13 06/24/14 07/06/16 01/09/17
DESCRIPTION
$17,310,000
Tax Allocation Revenue
Bonds
$15,745,000
Tax Allocation Revenue
Bonds
$67,600,000
Tax Allocation Revenue
Bonds
$4,745,000
Tax Allocation Bonds
$15,050,000
Tax Allocation
Revenue
Years 20 30 30 30 35
Bond Issue Date 07/17/02 03/26/03 07/25/06 08/05/03 07/25/06
Final Maturity Date 08/01/22 08/01/33 08/01/36 04/01/33 04/01/41
Highest Interest Rate 5.000%5.00%6.10%5.13%6.10%
Bond Issue Amount 17,310,000$ 15,745,000$ 67,618,213$ 4,745,000$ 15,059,526$
Outstanding Bond Amount 10,385,000$ 15,745,000$ 51,433,014$ 3,690,000$ 14,283,475$
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 13/14 835,000 - 1,700,353 120,000 254,760
Interest Due 13/14 472,353 769,006 2,334,447 177,953 571,715
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 08/05/13 07/25/16
DESCRIPTION
$11,020,000
Tax Allocation Revenue
Bonds
$15,695,000
Tax Allocation
Revenue Bonds
$19,273,089
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 7,950,000$ 12,905,000$ 16,988,170$ 9,450,000$ 66,680,000$
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 13/14 145,000 365,000 779,182 320,000 5,235,000
Interest Due 13/14 407,506 599,909 635,195 445,849 3,082,063
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 #1
PROJECT AREA #2 PROJECT AREA #3
PROJECT AREA #4 HOUSING FUND
211
City of Palm Desert
FY 2012/2013
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 28.39372439%28.29258707%26.09980395%25.3331182%21.92234434%
County Library 2.74919048%2.89636807%2.95200789%2.8167532%2.83000090%
County Fire 5.91818318%6.23501631%6.35478867%6.0636324%6.09214415%
City of Indian Wells Annex 0.00000000%0.00000670%0.00000000%0.00000000%0.00000000%
Supervisor Road District 4 0.00000000%-0.00030431%0.00000000%0.00000000%0.00000000%
City of Palm Desert 0.00000000%2.32456771%5.43065080%4.55103648%8.65709276%
Rancho Mirage Library 0.00000000%0.01427037%0.00000000%0.00000000%0.00000000%
Rancho Mirage Fire Asmt.0.00000000%0.03071982%0.00000000%0.00000000%0.00000000%
Desert Sands Unified School District 36.49972585%36.97296222%22.48042614%37.39678487%37.57261038%
Palm Springs Unified School District 0.00000000%0.00000000%12.16644232%0.00000000%0.00000000%
Desert Community College 7.58450934%8.06169222%8.14404579%7.77091167%7.80745120%
County Superintendent of Schools 4.12636196%4.38597405%4.43077837%4.22777257%4.24765544%
Riverside County Reg Park & Open
Space 0.42949136%0.42741978%0.39480319%0.38319972%0.44212733%
Coachella Valley Public Cemetary 0.34253587%0.30118179%0.21097009%0.35094944%0.35260407%
Palm Springs Public Cemetary 0.00000000%0.000289369 0.07214581%0.00000000%0.00000000%
Desert Hospital 2.01213993%1.23617893%1.74789340%1.04877783%0.00000000%
Coachella Valley Mosquito & Vector
Control 1.38021427%1.46705072%1.48203721%1.41413285%1.42078362%
Coachella Valley Recreation & Park 2.08753024%1.83550688%1.28572409%2.13883216%2.14889165%
Coachella Valley Water District 2.75761994%2.93183023%2.96105907%2.82539066%2.87292208%
Coachella Valley Resource Cons.0.00000000%0.02235021%0.03796085%0.03133660%0.03639042%
Coachella Valley Imp District 80 2.22784836%0.98544603%0.00000000%0.07065287%0.00344434%
Coachella Valley Water District Storm
Water Unit 3.49092485%1.55023831%3.74846236%3.57671853%3.59353731%
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
212
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213
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Original
Last Ten Fiscal Years
FY 2013 2012 2011 2010 2009
Secured: (1)
Land 249,394,404$ 244,450,814$ 246,861,736$ 249,715,896$ 241,759,729$
Improvements 627,764,488 626,574,093 610,067,877 613,769,221 610,061,698
Personal Property 3,908,602 2,933,226 3,127,559 3,399,575 5,000,717
Penalty 0 0 0 0 0
Less Other Exempt (1,999,569) (1,960,491) (895,957) (898,089) (455,200)
Less Home Owner Value (42,000) (56,000) (61,600) (49,000) (70,000)
Less B Inv. Value 0 0 0 0
Total Net Assessed Taxable Secured Value 879,025,925 871,941,642 859,099,615 865,937,603 856,296,944
Unsecured:
Land 99 99 99 99 1,267
Improvements 63,729,112 60,147,367 57,617,429 63,627,182 69,008,584
Personal Property 43,573,580 48,331,227 48,607,315 53,892,307 60,792,341
Penalty 0 0 0 0 0
Less Other Exempt (223,222) (64,730) (63,954) (68,471) (66,749)
Total Net Assessed Taxable Unsecured Value 107,079,569 108,413,963 106,160,889 117,451,117 129,735,443
Total Net Assessed Taxable Value 986,105,494$ 980,355,605$ 965,260,504$ 983,388,720$ 986,032,387$
FY 2008 2007 2006 2005 2004
Secured: (1)
Land 233,208,647$ 216,759,847$ 209,051,600$ 193,066,855$ 180,571,588$
Improvements 584,395,005 552,604,613 515,092,610 468,555,559 430,563,506
Personal Property 4,856,393 6,825,265 7,420,696 4,909,559 2,970,008
Penalty 0 0 0 0 0
Less Other Exempt (1,570,949) (760,295) (610,338) (730,777) (100)
Less Home Owner Value (63,000) (70,000) (70,000) (70,000) (77,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 820,826,096 775,359,430 730,884,568 665,731,196 614,028,002
Unsecured:
Land 1,245 1,220 396 156,701 174,128
Improvements 60,185,535 56,536,963 48,736,306 51,133,704 52,581,364
Personal Property 57,684,012 57,404,440 47,480,402 51,093,465 54,158,601
Penalty 0 0 0 0 0
Less Other Exempt (56,785) (32,652) (32,573) (39,043) (57,842)
Total Net Assessed Taxable Unsecured Value 117,814,007 113,909,971 96,184,531 102,344,827 106,856,251
Total Net Assessed Taxable Value 938,640,103$ 889,269,401$ 827,069,099$ 768,076,023$ 720,884,253$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
214
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 1 - Original
2013 versus 2012
FY 2013 2012 % Change
Secured: (1)
Land 249,394,404$ 244,450,814$ 2.0%
Improvements 627,764,488$ 626,574,093$ 0.2%
Personal Property 3,908,602$ 2,933,226$ 33.3%
Penalty 0$ 0$ 0.0%
Less Other Exempt (1,999,569)$ (1,960,491)$ 2.0%
Less Home Owner Value (42,000)$ (56,000)$ -25.0%
Total Net Assessed Taxable Secured Value 879,025,925$ 871,941,642$ 0.8%
Unsecured:
Land 99$ 99$ 0.0%
Improvements 63,729,112$ 60,147,367$ 6.0%
Personal Property 43,573,580$ 48,331,227$ -9.8%
Penalty 0$ 0$ 0.0%
Less Other Exempt (223,222)$ (64,730)$ 244.9%
Total Net Assessed Taxable Unsecured Value 107,079,569$ 108,413,963$ -1.2%
Total Net Assessed Taxable Value 986,105,494$ 980,355,605$ 0.6%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
215
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Years
FY 2013 2012 2011 2010 2009
Secured: (1)
Land 1,498,607,642$ 1,485,119,173$ 1,520,035,284$ 1,556,322,273$ 1,646,837,956$
Improvements 2,993,556,770 2,972,294,294 3,064,294,006 3,138,650,280 3,216,329,372
Personal Property 2,686,088 2,902,053 3,304,016 2,462,676 4,295,752
Penalty 0 0 0 0 0
Less Other Exempt (93,807,367) (92,647,477) (89,778,462) (86,825,212) (86,439,305)
Less Home Owner Value (27,231,015) (28,318,713) (29,088,641) (29,699,188) (30,414,878)
Less B Inv. Value 0
Total Net Assessed Taxable Secured Value 4,373,812,118 4,339,349,330 4,468,766,203 4,580,910,829 4,750,608,897
Unsecured:
Land 266,702 547 262,619 623 56,456
Improvements 20,144,944 30,038,023 31,662,152 33,207,261 37,501,662
Personal Property 50,154,674 56,942,231 64,035,933 59,544,019 67,485,677
Penalty (8,269,749) (4,784,840) 0 0 0
Less Other Exempt 7,000 28,000 (3,119,713) (7,874,926) (11,366,822)
Total Net Assessed Taxable Unsecured Value 62,303,571 82,223,961 92,840,991 84,876,977 93,676,973
Total Net Assessed Taxable Value 4,436,115,689$ 4,421,573,291$ 4,561,607,194$ 4,665,787,806$ 4,844,285,870$
2008 2007 2006 2005 2004
Secured: (1)
Land 1,548,363,317$ 1,404,883,142$ 1,221,817,819$ 1,099,974,404$ 1,037,831,772$
Improvements 3,098,549,660 2,848,708,294 2,548,978,946 2,322,285,503 2,109,457,532
Personal Property 4,850,231 5,159,912 5,081,062 4,080,748 3,722,255
Penalty 0 0 0 0 0
Less Other Exempt (84,042,297) (71,117,424) (75,212,626) (72,356,678) (50,011,055)
Less Home Owner Value (30,606,235) (30,941,142) (30,902,546) (31,114,156) (30,819,292)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 4,537,114,676 4,156,692,782 3,669,762,655 3,322,869,821 3,070,181,212
Unsecured:
Land 714 781 0 1,449 9,581
Improvements 36,438,840 38,277,529 33,710,842 33,165,394 32,087,933
Personal Property 62,971,014 57,326,123 51,779,049 53,234,502 56,477,588
Penalty 0 0 0 0 0
Less Other Exempt (7,990,591) (3,164,410) (6,306,859) (6,430,836) (8,791,155)
Total Net Assessed Taxable Unsecured Value 91,419,977 92,440,023 79,183,032 79,970,509 79,783,947
Total Net Assessed Taxable Value 4,628,534,653$ 4,249,132,805$ 3,748,945,687$ 3,402,840,330$ 3,149,965,159$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
216
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 1 - Amended
2013 versus 2012
FY 2013 2012 % Change
Secured: (1)
Land 1,498,607,642$ 1,485,119,173$ 0.9%
Improvements 2,993,556,770$ 2,972,294,294$ 0.7%
Personal Property 2,686,088$ 2,902,053$ -7.4%
Penalty 0$ 0$ 0.0%
Less Other Exempt (93,807,367)$ (92,647,477)$ 1.3%
Less Home Owner Value (27,231,015)$ (28,318,713)$ -3.8%
Total Net Assessed Taxable Secured Value 4,373,812,118$ 4,339,349,330$ 0.8%
Unsecured:
Land 266,702$ 547$ 48657.2%
Improvements 20,144,944$ 30,038,023$ -32.9%
Personal Property 50,154,674$ 56,942,231$ -11.9%
Penalty (8,269,749)$ 0$ -100.0%
Less Other Exempt 7,000$ 28,000$ -75.0%
Total Net Assessed Taxable Unsecured Value 62,303,571$ 82,223,961$ -24.2%
Total Net Assessed Taxable Value 4,436,115,689$ 4,421,573,291$ 0.3%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
217
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2013 2012 2011 2010 2009
Secured: (1)
Land 403,779,647$ 404,539,856$ 516,275,626$ 566,073,734$ 633,335,921$
Improvements 1,012,458,943 1,031,878,423 1,075,692,278 1,268,066,132 1,367,855,491
Personal Property 2,127,081 580,087 2,702,362 670,711 866,004
Penalty (2)0 0 0 0 0
Less Other Exempt (11,014,472) (11,276,866) (10,401,200) (8,919,361) (7,964,045)
Less Home Owner Value (3,662,400) (3,697,400) (3,750,600) (3,673,600) (3,724,000)
Less B Inv. Value 0
Total Net Assessed Taxable Secured Value 1,403,688,799 1,422,024,100 1,580,518,466 1,822,217,616 1,990,369,371
Unsecured:
Land 7,777 4,719 0 0 2,542
Improvements 11,308,677 18,513,172 9,474,802 14,071,375 18,201,638
Personal Property 26,904,564 38,744,588 28,314,673 34,842,003 29,865,376
Penalty (20,089) 0 0 0 0
Total Net Assessed Taxable Unsecured Value 38,200,929 57,262,479 37,789,475 48,913,378 48,069,556
Total Net Assessed Taxable Value 1,441,889,728$ 1,479,286,579$ 1,618,307,941$ 1,871,130,994$ 2,038,438,927$
FY 2008 2007 2006 2005 2004
Secured: (1)
Land 587,058,715$ 521,340,003$ 414,088,670$ 377,500,739$ 338,504,943$
Improvements 1,276,315,674 1,137,488,315 1,043,768,419 964,730,831 915,313,076
Personal Property 590,836 6,592,802 6,930,907 8,309,969 7,136,535
Penalty (2)0 0 0 0 0
Less Other Exempt (9,550,463) (7,655,384) (3,292,024) (3,133,357) (2,979,597)
Less Home Owner Value (3,735,200) (3,752,000) (3,752,000) (3,689,000) (3,316,600)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 1,850,679,562 1,654,013,736 1,457,743,972 1,343,719,182 1,254,658,357
Unsecured:
Land 0 0 0 0 0
Improvements 5,343,621 6,215,099 4,187,472 3,853,947 4,482,615
Personal Property 20,391,298 19,806,418 12,129,847 13,891,105 11,486,746
Penalty 0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 25,734,919 26,021,517 16,317,319 17,745,052 15,969,361
Total Net Assessed Taxable Value 1,876,414,481$ 1,680,035,253$ 1,474,061,291$ 1,361,464,234$ 1,270,627,718$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
218
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 2
2013 versus 2012
FY 2013 2012 % Change
Secured: (1)
Land 403,779,647$ 404,539,856$ -0.2%
Improvements 1,012,458,943$ 1,031,878,423$ -1.9%
Personal Property 2,127,081$ 580,087$ 266.7%
Penalty 0$ 0$ 0.0%
Less Other Exempt (11,014,472)$ (11,276,866)$ -2.3%
Less Home Owner Value (3,662,400)$ (3,697,400)$ -0.9%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,403,688,799 1,422,024,100 -1.3%
Unsecured:
Land 7,777$ 4,719$ 64.8%
Improvements 11,308,677$ 18,513,172$ -38.9%
Personal Property 26,904,564$ 38,744,588$ -30.6%
Penalty (20,089)$ 0$ -100.0%
Total Net Assessed Taxable Unsecured Value 38,200,929 57,262,479 -33.3%
Total Net Assessed Taxable Value 1,441,889,728$ 1,479,286,579$ -2.5%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
219
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 3
Last Ten Fiscal Years
FY 2013 2012 2011 2010 2009
Secured: (1)
Land 117,624,411$ 119,303,599$ 123,088,378$ 125,790,120$ 134,147,217$
Improvements 367,800,719 379,322,839 392,221,646 424,745,043 418,977,238
Personal Property 3,626,212 3,461,707 3,523,812 5,011,721 3,308,454
Penalty 0 0 0 0 0
Less Other Exempt (22,250,710) (19,890,920) (20,749,611) (20,847,823) (20,782,445)
Less Home Owner Value (2,041,200) (2,170,000) (2,303,000) (2,371,600) (2,331,000)
Total Net Assessed Taxable Secured Value 464,759,432 480,027,225 495,781,225 532,327,461 533,319,464
Unsecured:
Land 0 0 0 0 0
Improvements 7,241,041 7,844,983 8,768,007 14,220,568 18,796,505
Personal Property 31,467,777 45,527,343 70,315,349 54,874,036 45,622,109
Penalty 0 0 0 0 0
Less Other Exempt (721,058) (753,726) (419,433) (534,431) (549,632)
Total Net Assessed Taxable Unsecured Value 37,987,760 52,618,600 78,663,923 68,560,173 63,868,982
Total Net Assessed Taxable Value 502,747,192$ 532,645,825$ 574,445,148$ 600,887,634$ 597,188,446$
FY 2008 2007 2006 2005 2004
Secured: (1)
Land 119,422,958$ 114,253,170$ 103,496,559$ 91,523,675$ 83,600,129$
Improvements 375,240,496 333,347,161 298,197,384 243,139,587 221,590,995
Personal Property 3,629,771 3,893,071 3,890,560 3,152,374 1,581,880
Penalty 0 0 0 0 0
Less Other Exempt (19,251,214) (19,311,510) (20,251,190) (19,430,222) (3,149,364)
Less Home Owner Value (2,203,600) (2,206,400) (2,046,800) (1,974,000) (1,912,400)
Total Net Assessed Taxable Secured Value 476,838,411 429,975,492 383,286,513 316,411,414 301,711,240
Unsecured:
Land 0 0 370 2,138 2,138
Improvements 17,795,034 13,109,332 12,424,085 9,635,015 13,245,112
Personal Property 45,542,975 44,899,884 38,091,911 35,730,772 37,209,995
Penalty 0 0 0 0 0
Less Other Exempt (402,531) (437,726) (434,582) (455,101) (470,220)
Total Net Assessed Taxable Unsecured Value 62,935,478 57,571,490 50,081,784 44,912,824 49,987,025
Total Net Assessed Taxable Value 539,773,889$ 487,546,982$ 433,368,297$ 361,324,238$ 351,698,265$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
220
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 3
2013 versus 2012
FY 2013 2012 % Change
Secured: (1)
Land 117,624,411$ 119,303,599$ -1.4%
Improvements 367,800,719$ 379,322,839$ -3.0%
Personal Property 3,626,212$ 3,461,707$ 4.8%
Penalty 0$ 0$ 0.0%
Less Other Exempt (22,250,710)$ (19,890,920)$ 11.9%
Less Home Owner Value (2,041,200)$ (2,170,000)$ -5.9%
Total Net Assessed Taxable Secured Value 464,759,432 480,027,225 -3.2%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 7,241,041$ 7,844,983$ -7.7%
Personal Property 31,467,777$ 45,527,343$ -30.9%
Penalty 0$ 0$ 0.0%
Less Other Exempt (721,058)$ (753,726)$ -4.3%
Total Net Assessed Taxable Unsecured Value 37,987,760 52,618,600 -27.8%
Total Net Assessed Taxable Value 502,747,192$ 532,645,825$ -5.6%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
221
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY 2013 2012 2011 2010 2009
Secured: (1)
Land 505,988,799$ 506,713,567$ 535,851,149$ 571,851,472$ 612,342,380$
Improvements 1,179,416,036 1,199,159,939 1,239,148,331 1,299,807,730 1,338,202,248
Personal Property 3,507,587 3,132,280 3,145,190 3,272,357 3,221,691
Penalty (2)0 0 0 0 0
Less Other Exempt (3,542,096) (3,098,791) (3,156,884) (3,073,279) (3,034,308)
Less Home Owner Value (13,911,800) (14,345,800) (14,840,000) (14,991,200) (15,250,200)
Less B Inv. Value
Total Net Assessed Taxable Secured Value 1,671,458,526 1,691,561,195 1,760,147,786 1,856,867,080 1,935,481,811
Unsecured:
Land 26,524 34,446 0 0 0
Improvements 803,594 948,280 971,923 1,383,594 1,404,311
Personal Property 2,594,779 2,347,964 3,219,710 6,284,727 6,296,641
Penalty (2)0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 3,424,897 3,330,690 4,191,633 7,668,321 7,700,952
Total Net Assessed Taxable Value 1,674,883,423$ 1,694,891,885$ 1,764,339,419$ 1,864,535,401$ 1,943,182,763$
FY 2008 2007 2006 2005 2004
Secured: (1)
Land 589,549,492$ 538,079,392$ 480,264,736$ 423,136,913$ 387,894,896$
Improvements 1,340,102,309 1,253,230,590 1,145,343,698 1,060,291,261 1,000,472,990
Personal Property 4,306,781 895,558 1,037,306 1,039,548 903,523
Penalty (2)0 0 0 0 0
Less Other Exempt (3,046,149) (2,814,993) (2,988,924) (2,213,136) (2,236,588)
Less Home Owner Value (15,577,800) (15,797,600) (15,874,600) (16,083,200) (16,032,800)
Less B Inv. Value 0
Total Net Assessed Taxable Secured Value 1,915,334,633 1,773,592,947 1,607,782,216 1,466,171,386 1,371,002,021
Unsecured:
Land 0 0 0 0 0
Improvements 1,372,786 1,581,231 1,606,970 2,043,627 1,172,618
Personal Property 6,712,170 7,973,923 10,276,814 4,639,732 3,438,910
Penalty (2)0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 8,084,956 9,555,154 11,883,784 6,683,359 4,611,528
Total Net Assessed Taxable Value 1,923,419,589$ 1,783,148,101$ 1,619,666,000$ 1,472,854,745$ 1,375,613,549$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
222
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 4
2013 versus 2012
FY 2013 2012 % Change
Secured: (1)
Land 505,988,799$ 506,713,567$ -0.1%
Improvements 1,179,416,036$ 1,199,159,939$ -1.6%
Personal Property 3,507,587$ 3,132,280$ 12.0%
Penalty 0$ 0$ 0.0%
Less Other Exempt (3,542,096)$ (3,098,791)$ 14.3%
Less Home Owner Value (13,911,800)$ (14,345,800)$ -3.0%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,671,458,526 1,691,561,195 -1.2%
Unsecured:
Land 26,524$ 34,446$ -23.0%
Improvements 803,594$ 948,280$ -15.3%
Personal Property 2,594,779$ 2,347,964$ 10.5%
Penalty 0$ 0$ 0.0%
Total Net Assessed Taxable Unsecured Value 3,424,897 3,330,690 2.8%
Total Net Assessed Taxable Value 1,674,883,423$ 1,694,891,885$ -1.2%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
223
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