HomeMy WebLinkAboutComplete CAFR 2010
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2010
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
BUSINESS LICENSE TECHNICIAN II
Rob Bishop
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 I
Cherie Williams
SENIOR FINANCIAL ANALYST
Anthony Hernandez
SENIOR OFFICE ASSISTANT
Claudia Jaime
i
CITY OF PALM DESERT
TABLE OF CONTENTS
JUNE 30, 2010
Page
Number
INTRODUCTORY SECTION
Table of Contents i
Letter of Transmittal vii
GFOA Certificate of Achievement for Excellence in Financial Reporting xii
List of Principal Officials xiii
Organization Chart xiv
FINANCIAL SECTION
AUDITORS' REPORT
Independent Auditors' Report 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 3
BASIC FINANCIAL STATEMENTS
Exhibit A - Statement of Net Assets 15
Exhibit B - Statement of Activities 16
Exhibit C - Balance Sheet - Governmental Funds 20
Exhibit D - Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets 23
Exhibit E - Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds 24
Exhibit F - Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 26
Exhibit G - Statement of Net Assets - Proprietary Funds 27
Exhibit H - Statement of Revenues, Expenses and Changes in Fund
Net Assets - Proprietary Funds 28
ii
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2010
Page
Number
BASIC FINANCIAL STATEMENTS (CONTINUED):
Exhibit I - Statement of Cash Flows - Proprietary Funds 29
Exhibit J - Statement of Fiduciary Assets and Liabilities – Agency Funds 31
Notes to Basic Financial Statements 33
REQUIRED SUPPLEMENTARY INFORMATION
Schedule 1 - Schedules of Funding Progress:
Cal PERS Defined Benefit Plan 117
Other Post-Employment Benefit Plan 117
Schedule 2 - Budgetary Comparison Schedule - General Fund 119
Schedule 3 - Budgetary Comparison Schedule - Prop A Fire Tax
Special Revenue Fund 120
Note to Required Supplementary Information 121
SUPPLEMENTARY SCHEDULES
General Fund: 123
Schedule 4 - Budgetary Comparison Schedule by Department - General Fund 124
Other Governmental Funds - Combining Statements: 129
Schedule 5 - Combining Balance Sheet - Other Governmental Funds 130
Schedule 6 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Governmental Funds 131
Other Governmental Funds - Other Special Revenue: 133
Schedule 7 - Combining Balance Sheet - Other Special Revenue Funds 136
Schedule 8 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Special Revenue Funds 140
iii
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2010
Page
Number
SUPPLEMENTARY SCHEDULES (CONTINUED)
Schedule 9 - Schedules of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - Special Revenue Funds:
A. Traffic Safety 144
B. Gas Tax 145
C. Housing Mitigation Fees 146
D. Community Development Block Grant 147
E. Public Safety Police Grants 148
F. El Paseo Assessment District 149
G. City-Wide Business License 150
H. Landscape and Lighting Districts No. 1-17 151
Other Governmental Funds - Other Debt Service: 153
Schedule 10 - Combining Balance Sheet - Other Debt Service Fund 154
Schedule 11 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balance - Other Debt Service Fund 155
Other Governmental Funds - Other Capital Projects: 157
Schedule 12 - Combining Balance Sheet - Other Capital Projects Funds 158
Schedule 13 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Capital Projects Funds 162
Agency Funds: 167
Schedule 14 - Combining Statement of Assets and Liabilities - All Agency Funds 168
Schedule 15 - Combining Statement of Changes in Assets and
Liabilities - All Agency Funds 169
iv
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2010
Page
Number
STATISTICAL SECTION
Description of Statistical Section 171
Financial Trends
Net Assets by Component 172
Changes in Net Assets 173
Fund Balances of Governmental Funds 175
Changes in Fund Balances of Governmental Funds 176
Graphs - Changes in Fund Balances of Governmental Funds 177
Supplemental Historical General Fund Revenues 178
Supplemental Graph - Historical General Fund Revenues 179
Supplemental Historical General Fund Expenditures 180
Supplemental Graph - Historical General Fund Expenditures 181
Supplemental Historical General Revenue and Expenditures Per Capita 183
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 184
Historical Net Assessed Taxable Values Citywide and
Graph - Assessed Valuation Growth 185
Supplemental FY 2010 and 2009 Breakdown of Basic 1% Property
Tax Rate Not in Redevelopment Project Area 186
Property Tax Rates Direct and Overlapping Property Tax Rates 187
Principal Property Taxpayers 188
Property Tax Levies and Collections 189
Supplemental Top 25 Sales Tax Generators and
Graph - Historical Sales Tax Trends 190
Supplemental Taxable Sales by Category 191
Supplemental Principal Sales Tax Remitters 192
Debt Capacity
Ratios of Outstanding Debt by Type 193
Ratios of General Bonded Debt Outstanding 194
Supplemental Special Assessment Information 195
Direct and Overlapping Government Activities Debt 196
Legal Debt Margin Information 197
Pledged-Revenue Coverage 198
v
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2010
Page
Number
STATISTICAL SECTION
(CONTINUED)
Demographic and Economic Information
Demographic and Economic Statistics 199
Principal Employers 200
Supplemental Miscellaneous Statistics 201
Operating Information
Full-time Equivalent City Government Employee’s by Function/Program 202
Operating Indicators by Function/Program 203
Capital Asset Statistics by Function/Program 204
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION
Redevelopment Agency Project Area Map 207
FY 2010 Top Twenty Property Taxpayers:
Project Area No. 1 and 1982 Annex 208
Project Area No. 2 209
Project Area No. 3 210
Project Area No. 4 211
Project Area Statistics 212
Tax Allocation Bond Issue Information 213
FY 2009/2010 Breakdown of Basic 1% Property Tax Levy Rates 214
Historical Tax Increment Summary:
Redevelopment Project Area No. 1 - Original 215
Redevelopment Project Area No. 1 - Amended 216
Redevelopment Project Area No. 2 217
Redevelopment Project Area No. 3 218
Redevelopment Project Area No. 4 219
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Original 220
Change in Taxable Values:
Redevelopment Project Area No. 1 - Original 221
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Amended 222
Change in Taxable Values:
Redevelopment Project Area No. 1 - Amended 223
vi
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2010
Page
Number
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION (CONTINUED)
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 2 224
Change in Taxable Values:
Redevelopment Project Area No. 2 225
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 3 226
Change in Taxable Values:
Redevelopment Project Area No. 3 227
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 4 228
Change in Taxable Values:
Redevelopment Project Area No. 4 229
xiii
CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2010
City Council - Manager Form of Government
CITY COUNCIL
CINDY FINERTY
Mayor
JIM FERGUSON
Mayor Pro-Tempore
JEAN M. BENSON RICHARD S. KELLY ROBERT A. SPIEGEL
Council Member Council Member Council Member
CITY ADMINISTRATION
JOHN M. WOHLMUTH
City Manager
City Attorney - Best, Best & Krieger David J. Erwin
Assistant City Manager for Redevelopment Agency/Housing Justin McCarthy
Director of Finance/City Treasurer Paul S. Gibson
REDEVELOPMENT AGENCY
Executive Director
JOHN M. WOHLMUTH
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xvi
THIS PAGE INTENTIONALLY LEFT BLANK
OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W VALLEY PARKWAY, SUITE 330
CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598
(760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
5 CORPORATE PARK, SUITE 100
IRVINE, CALIFORNIA 92606-5165
(949) 399-0600 • FAX (949) 399-0610
www.diehlevans.com
November 29, 2010
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and
Members of the City Council
City of Palm Desert, California
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund and the aggregate remaining fund
information of the City of Palm Desert, California, as of and for the year ended June 30, 2010, which
collectively comprise the City's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the City of Palm Desert's management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we express no such opinion. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the discretely presented component
unit, each major fund and the aggregate remaining fund information of the City of Palm Desert as of
June 30, 2010, and the respective changes in financial position and cash flows, where applicable thereof for the
year then ended in conformity with accounting principles generally accepted in the United States of America.
As described in Note 7 to the basic financial statements, the City adopted the provisions of Governmental
Accounting Standards Board Statement No. 53, “Accounting and Financial Reporting for Derivative
Instruments”, for the year ended June 30, 2010.
- 1 -
MICHAEL R LUDIN, CPA
CRAIG W SPRAKER, CPA
NITIN P PATEL, CPA
ROBERT J CALLANAN, CPA
*PHILIP H HOLTKAMP, CPA
*THOMAS M PERLOWSKI, CPA
*HARVEY J SCHROEDER, CPA
KENNETH R AMES, CPA
WILLIAM C PENTZ, CPA
*A PROFESSIONAL CORPORATION
- 2 -
In accordance with Government Auditing Standards, we have also issued our report dated November 29, 2010,
on our consideration of the City of Palm Desert's internal control over financial reporting and on our tests of its
compliance with certain laws, regulations, contracts, grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The management’s discussion and analysis, the schedules of funding progress and budgetary comparison
schedules, as listed in the table of contents as required supplementary information, are not a required part of the
basic financial statements but are supplementary information required by the accounting principles generally
accepted in the United States of America. This information is 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.
The budgetary comparison schedules and related note 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 of Palm Desert 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 information is fairly stated in all material respects in relation to the basic financial statements
taken as a whole.
Our audit was made for the purpose of forming opinions on the financial statements that collectively comprise
the City’s basic financial statements. The combining, individual fund statements and schedules are presented
for purposes of additional analysis and are not a required part of the basic financial statements of the City. Such
information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements of the City or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements
taken as a whole.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements of the City of
Palm Desert, California as a whole. The introductory section and statistical section are presented for purposes
of additional analysis and are not a required part of the basic financial statements. Such information has 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.
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, 2010 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 $631.30 million (net assets).
• Long-term debt obligations decreased $8.83 million from $417.07 million to $408.24 million
through normally scheduled debt service payments.
• The City’s governmental activities net assets decreased $16.54 million, and the net assets of the
business-type activities decreased $0.66 million.
• During the year, the City’s revenues were $116.17 million and expenses were $132.76 million in
its governmental activities compared to fiscal year 2009, where revenues were $12.22 million
greater than expenses.
• In the City’s business-type activities, expenses were $0.61 million more than the $8.10 million
generated in green fees, merchandise sales, rental income and other revenues compared to the
prior year, where business-type activities revenues were $0.74 million less than its expenses.
• The City’s governmental activities program revenues and general revenues decreased by $7.18
million, or 5.8 percent from prior year, while program expenses increased $21.63 million, or 19.4
percent from prior year, which is due to the $25.52 million payment for the fiscal year 2009-10
Supplemental Education Relief Augmentation Fund (SERAF) obligation enacted by the State of
California.
• Business-type activities revenues increased by $0.19 million, from $7.91 million to $8.10 million.
Expenses increased by $0.06 million from the prior year.
• The revenues available for expenditures were $2.58 million more than budgeted in the General
Fund. The City kept General Fund expenditures within spending limits by $2.85 million.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Assets and
Statement of Activities (on pages 15, 16 and 17) provide information about the activities of the City as a
whole and present a long-term view of the City’s finances. Fund financial statements start on page 20.
For governmental activities, these fund statements tell how these services were financed in the short term
as well as what remains for future spending. Fund financial statements also report the City’s operation in
more detail than the government-wide statements by providing information about the City’s most
significant funds and other funds. The remaining fiduciary fund statement provides financial information
about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the
government.
See independent auditors’ report.
- 3 -
REPORTING THE CITY AS A WHOLE
The Statement of Net Assets and the Statement of Activities:
Our analysis of the City as a whole begins on page 15. One of the most important 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 Assets and the Statement of Activities report information about the City as a whole
and about its activities in a way that answers this question. These statements include all assets and
liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most
private-sector companies. All of the current year’s revenues and expenses are taken into account
regardless of when cash is received or paid.
These two statements report the City’s net assets and changes in them. Net assets are the difference
between assets and liabilities, which is one way to measure the City’s financial health, or financial
position. Over time, increases or decreases in the City’s net assets are an indication of whether its
financial health is improving or deteriorating. Other non-financial factors should be considered, however,
such as changes in the economy that could cause a decrease in consumer spending.
In the Statement of Net Assets and the Statement of Activities, we separate City Activities as follows:
Governmental activities – Most of the City’s basic services are reported in this category, including
general administration (city manager, city clerk, finance, etc.), police and fire protection, public works,
parks & recreation, and culture departments. Property taxes, sales tax, transient occupancy tax, user
fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and
other revenues finance these activities.
Business-type activities – The City charges a fee to customers to cover all or most of the cost of certain
services it provides. The City’s municipal golf course, Desert Willow, and the City’s Parkview Office
Complex activities are reported in this category.
Component unit activities – The City includes one separate legal entity in its report – the Palm Desert
Recreation Facilities Corporation. Although legally separate, this “component unit” is important because
the City is financially accountable for it.
REPORTING THE CITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements:
The fund financial statements provide detailed information about the most significant funds and other
funds, not the City as a whole. Some funds are required to be established by State law and by bond
covenants. However, management established many other funds to help it control and manage money
for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants,
and other resources. The City has two types of funds: governmental and proprietary.
Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus
on how money flows in and out of those funds and the balances left at year-end that are available for
spending. These funds are reported using an accounting method called modified accrual accounting,
which measures cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the City’s general government
operations and the basic services it provides. Governmental fund information helps determine whether
there are more or fewer financial resources that can be spent in the near future to finance the City’s
programs. The differences of results in the Governmental Fund financial statements to those in the
Government-Wide financial statements are explained in a reconciliation following each Governmental
Fund financial statement.
See independent auditors’ report.
- 4 -
Proprietary funds – When the City charges customers for the services it provides, these services are
generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities
are reported in the Statement of Net Assets and the Statement of Activities. 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.
THE CITY AS TRUSTEE
Reporting the City’s Fiduciary Responsibilities:
The City is the trustee, or fiduciary, for certain funds held on behalf of developers and its employees’
retiree service stipend fund. The City’s fiduciary activities are reported in separate Statements of
Fiduciary Assets and Liabilities. We exclude these activities from the City’s other financial statements
because the City cannot use these assets to finance its operations. The City is responsible for ensuring
that the assets reported in these funds are used for their intended purposes.
THE CITY AS A WHOLE
The City’s combined net assets decreased $17.20 million from $648.50 million to $631.30 million. A
separate review of the net change in the governmental and business-type activities is provided for the
reader. Our analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City’s
governmental and business-type activities.
2010 2009 2010 2009 2010 2009
Current and restricted assets 499.18$ 511.53$ 5.40$ 5.51$ 504.58$ 517.04$
Capital assets 541.94 547.94 68.23 69.22 610.17 617.16
TOTAL ASSETS 1,041.12 1,059.47 73.63 74.73 1,114.75 1,134.20
Long-term liabilities
outstanding 407.91 416.12 0.33 0.95 408.24 417.07
Other liabilities 74.20 67.80 1.01 0.83 75.21 68.63
TOTAL LIABILITIES 482.11 483.92 1.34 1.78 483.45 485.70
Net assets:
Invested in capital
assets, net of
related debt 304.70 302.51 67.90 68.26 372.60 370.77
Restricted 150.70 166.13 - - 150.70 166.13
Unrestricted 103.61 106.91 4.39 4.69 108.00 111.60
TOTAL NET
ASSETS 559.01$ 575.55$ 72.29$ 72.95$ 631.30$ 648.50$
TABLE 1
NET ASSETS
As of June 30, 2010 and 2009
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
See independent auditors’ report.
- 5 -
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200
400
600
800
1,000
1,200
2010 2009 2010 2009 2010 2009
Governmental
Activities
Business‐Type
Activities
Total
Do
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Table 1 ‐Graph
Total Assets & Liabilities
Total Assets
Total Liabilities
Compared to prior year, net assets of the City’s governmental activities decreased by 2.87 percent, or
$16.54 million. The City’s Net Assets are made up of three components: Investment in Capital Assets,
Net of Related Debt; Restricted Net Assets; and Unrestricted Net Assets. For governmental activities,
unrestricted net assets, which represent the part of net assets that can be used to finance day-to-day
operations, accounted for 18.53 percent of the overall total net assets. Unrestricted net assets decreased
$3.30 million from $106.91 million in 2009 to $103.61 million in 2010. This is an indication that the City’s
Governmental Activities financial position recognized a decline from prior year. The City has $3.30 million
less of unrestricted funds that can be used to finance its operations. The decrease is attributable to: 1) a
4.6 percent drop in sales tax revenue from $14.36 million to $13.69 million; 2) a decrease in investment
earnings from $6.16 million to $2.92 million or 52.59 percent decrease; and 3) a decrease of $0.18 million
in transient occupancy tax.
The decrease in restricted net assets of $15.43 million was due to the following: restricted capital projects
decreased by $3.59 million due to capital projects expenses and the completion of the Highlands
Undergrounding Project. Remaining capital funds for this project were used to pay off outstanding bonds
and reduce the amount of debt owed by residents in the bonding area; restricted special projects
increased by $3.87 million due to the increase in the RDA Low-Income Housing fund of $6.94 million. The
majority of the capital projects for the RDA Low-Income Housing Fund were in the design stage of
construction during fiscal year 2009/2010. For fiscal year 2010/11 its capital budget including carryover is
$13.22 million; restricted debt projects decreased $16.03 million due to the SERAF payment that was
required to be made to the State of California; and there was a $0.33 million increase in other post-
employment benefits.
Investment in capital assets, net of related debt increased $2.19 million. Major additions included land
acquisitions for the improvement of an alleyway and future RDA projects, infrastructure projects that
include street widening and improvement projects; Aquatic Center design; and renovation of the City-
owned golf resort.
The net assets of the business-type activities saw a decrease of $0.66 million, from $72.95 million to
$72.29 million. During the previous year, the business-type activities net assets recognized an increase of
$4.92 million. The major factor for this year’s decrease was the transfer out of $0.44 million from the
Office Complex Parkview fund to the General Fund. Desert Willow Golf Resort anticipated a decrease in
their gross revenues and responded promptly to reduce overall expenses, resulting in a $0.42 million net
asset decrease. The Parkview Office Complex recognized a net asset decrease of $0.24 million in which
it saw minor increases in both gross revenues and expenses.
See independent auditors’ report.
- 6 -
The change in the City’s governmental activities total assets was attributable to the decrease in current
and restricted assets. The total change in current and restricted assets was $12.35 million, with the
majority of the change coming from the reduction in cash and investments. As mentioned previously, the
Agecny was required to pay the State of California $25.52 million for its SERAF obligation.
Total liabilities decreased by $1.81 million. There was an $8.21 million reduction due to the retirement of
debt, and an increase of $6.40 million in other liabilities. The increase in other liabilities represents the
change in amounts due under pass-through agreements that increased from $53.29 million to $60.67
million. The City’s Redevelopment Agency retains funds in trust that are distributed at year end. These
funds are held on behalf of other taxing agencies related to specific pass-through agreements (see note
9).
See independent auditors’ report.
- 7 -
2010 2009 2010 2009 2010 2009
REVENUES:
Program Revenues:
Charges for services 17.87$ 18.47$ 8.04$ 7.83$ 25.91$ 26.30$
Operating grants and
contributions 6.56 5.58 - - 6.56 5.58
Capital grants and
contributions 2.72 5.05 - - 2.72 5.05
General Revenues:
Property taxes 5.42 5.22 - - 5.42 5.22
Tax increment (net of pass-through)54.26 54.96 - - 54.26 54.96
Transient occupancy tax 6.85 7.03 - - 6.85 7.03
Sales tax 13.69 14.36 - - 13.69 14.36
Other taxes 2.86 3.00 - - 2.86 3.00
Investment earnings 2.92 6.16 0.06 0.08 2.98 6.24
Contribution not restricted for
special purpose 0.64 0.61 - - 0.64 0.61
Other revenues 2.38 2.91 2.38 2.91
TOTAL REVENUES 116.17 123.35 8.10 7.91 124.27 131.26
EXPENSES:
General government 58.45 34.09 - - 58.45 34.09
Public safety 27.03 27.67 - - 27.03 27.67
Parks, recreation and culture 7.31 7.21 - - 7.31 7.21
Public works 19.90 22.04 - - 19.90 22.04
Interest on long-term debt 20.07 20.12 - - 20.07 20.12
Golf Course-Desert Willow - - 7.83 7.80 7.83 7.80
Office Complex-Parkview - - 0.88 0.85 0.88 0.85
TOTAL EXPENSES 132.76 111.13 8.71 8.65 141.47 119.78
INCREASE (DECREASE ) IN NET
ASSETS BEFORE TRANSFERS (16.59) 12.22 (0.61) (0.74) (17.20) 11.48
Transfers 0.05 (5.66) (0.05) 5.66 - -
INCREASE (DECREASE) IN NET ASSETS (16.54) 6.56 (0.66) 4.92 (17.20) 11.48
BEGINNING NET ASSETS 575.55 568.99 72.95 68.03 648.50 637.02
ENDING NET ASSETS 559.01$ 575.55$ 72.29$ 72.95$ 631.30$ 648.50$
TABLE 2
CHANGES IN NET ASSETS
As of June 30, 2010 and 2009
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
See independent auditors’ report.
- 8 -
Table 2- Graph
‐
100
200
300
400
500
600
700
2009 2010
Governmental Activities
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20
30
40
50
60
70
80
2009 2010
Business‐Type Activities
Beginning Net
Assets
Total Revenues
Ending Net
Assets
Total Expenses
Changes in Net Assets
Governmental Activities
Total revenue decreased from $123.35 million to $116.17 million, a 5.82 percent decrease. The decrease
is the result of a 46.13 percent decrease in capital grants and contributions of $2.33 million, a $0.67
million decrease in sales tax, and a $3.24 million drop in investment earnings. Factors that contributed to
the changes in revenues are as follows:
• The City received capital grants and contributions from the Coachella Valley Association of
Governments and Riverside County Transportation Commission that decreased due to projects
being completed in prior year;
• Reduction in gross taxable sales due to economic downturn; and
• Decrease in City’s earnings due to lower yields in investments related to the current economic
condition.
Total expenses increased from $111.13 million to $132.76 million. The major factor contributing to the
change in expenses was the payment to the State of California for the SERAF obligation of $25.52 million
which is included in the general government expenditures. Pursuant to AB 26 4x, a budget trailer bill,
California redevelopment agencies were required to make SERAF contributions totaling $1.7 billion for
fiscal year 2009-10 and $350 million for fiscal year 2010-11.
See independent auditors’ report.
- 9 -
The following schedule represents the net cost of providing services:
Governmental Activities
Net (Expense) Revenue
(In Millions)
2010 2009
General government ($48.00) ($23.73)
Public safety (17.30) (18.04)
Parks, recreation and culture (6.69) (6.40)
Public works (13.55) (13.73)
Interest on long term debt (20.07) (20.13)
Total ($105.61) ($82.03)
45%
16%
7%
13%
19%
2010
Governmental Activities
Net (Expense) Revenue
29%
22%7%
17%
25%
2009
Governmental Activities
Net (Expense) Revenue
General government
Public safety
Parks, recreation &
culture
Public works
Interest on long term
debt
Business-type Activities
Business-type activities revenues increased by $0.19 million from $7.91 million to $8.10 million, a 2.40
percent increase. The overall increase was directly related to the substantial increase in the sales of the
golf resort’s Platinum Card loyalty program. Management diligently marketed the platinum card program
and offered a discount during an introductory period, which motivated sales. The overall rounds mix and
play remained consistent as Desert Willow continued to work closely with wholesalers who provide a
substantial amount of play to the golf courses. The Parkview Office Complex revenues increased by 3
percent from the previous year. This increase is related to CPI adjustments and the Full Gross Lease
agreements which extended at their current rates.
Operating expenses for business-type activities increased from $8.65 million to $8.71 million, an increase
of less than 1.00 percent. The majority of the increase was related to minor increases to general and
administration expenses at the golf resort and increased depreciation for the Parkview Office Complex.
Overall, the changes implemented by Desert Willow and the Parkview Office Complex responding to the
economic downturn are in place and as a result the overall expenditures did not increase significantly.
THE CITY’S FUNDS
On page 20, the governmental funds balance sheet is shown. The combined fund balance of $404.09
million decreased from $422.41 million, or 4.30 percent. This total includes the General Fund balance of
$77.57 million, which increased by $3.22 million from prior year. The City’s General Fund balance has
See independent auditors’ report.
- 10 -
reserved $13.72 million for advances, encumbrances, loans and notes, debt service, inventory, and
prepaid cost, compared to the prior year of $15.28 million; however, its undesignated fund balance
increased $4.78 million from prior year. The change in the General Fund’s balance was due to combined
decreases in sales tax, transient occupancy tax, and investment earnings. The increase in transfers in
from other funds created the positive net increase in fund balance for the General Fund. Other major fund
balance changes are noted below:
• The Prop A Fire Tax Fund: the fund balance decreased. In prior years, the General Fund would
transfer funds to the Prop A Fire Tax Fund to cover its shortage; however, due to budget
constraints, the City did not transfer for this year’s shortage.
• The Redevelopment Agency Financing Authority Debt Service Fund: the fund balance decreased
due to its scheduled debt service payments.
• The Redevelopment Agency Debt Service Funds: the fund balance decreased due to the SERAF
payment of $25.52 million.
• The Redevelopment Agency Capital Projects Funds: the fund balance decreased due to capital
project expenditures.
• The Redevelopment Low-income Housing Special Revenue Fund: the fund balance increased
due to capital expenditures being carried over and reduction in transfers out that were made in
the prior year for capital projects.
More detailed information about the combined fund balance reserves is presented in Note 11 to the
financial statements.
General Fund Budgetary Highlights
Based upon recommendations from the City’s staff, the City Council revised the City 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 decrease
their budgets due to declining revenues. 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 $46.06 million were $2.58 million more than the
final budgeted revenues of $43.48 million. The majority of the variance resulted from the transfer of funds
that the General Fund transferred during the prior year to the Energy Independence Loan fund. The
Energy Independence Loan fund was able to obtain a lease revenue bond that was used to pay back the
General Fund. Sales and transient occupancy taxes continue to be the top two revenue generators for the
City and were $278,075 within budget.
The General Fund actual ending expenditures of $42.85 million were $2.85 million less than the final
budget of $45.70 million. There were changes in the original budget compared to the final budget during
the year. The original expenditure budget was $46.95 million compared to the final budget of $45.70
million, a $1.25 million decrease. The major change was due to the re-appropriations of prior year
encumbrances that totaled $0.89 million, the mid-year reduction of $2.26 million and retirement reduction
of $0.75 million. The mid-year reductions were part of the estimated reduction in sales tax and investment
earnings.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2010, the City had $610.17 million invested in a broad range of capital assets, including
land, streets, bridges, drainage systems, traffic lights, parks, buildings, art work, vehicles and equipment
(See Table 3). This amount represents a net decrease (including additions and deductions) of $6.99
million, or 1.10 percent over prior year.
See independent auditors’ report.
- 11 -
2010 2009 2010 2009 2010 2009
Land 126.89$ 125.34$ 52.62$ 52.62$ 179.51$ 177.96$
Construction-in-progress 18.70 16.90 - - 18.70 16.90
Buildings and improvements
other than buildings 115.64 120.60 14.75 15.23 130.39 135.83
Machinery and equipment 3.07 3.60 0.86 1.37 3.93 4.97
Infrastructure 277.64 281.50 - - 277.64 281.50
TOTALS 541.94$ 547.94$ 68.23$ 69.22$ 610.17$ 617.16$
TABLE 3
CAPITAL ASSETS AT YEAR-END
For the years ended June 30, 2010 and 2009
TotalActivities
Business-TypeGovernmental
Activities
(NET OF DEPRECIATION, IN MILLIONS)
‐
100
200
300
400
500
600
700
2010 2009 2010 2009 2010 2009
Governmental
Activities
Business Type Activities Total
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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
This year’s major additions included (in millions):
Land acquisitions $ 1.37
Taos Palms Apartment improvements .51
Monterey street improvements 1.12
Various equipment purchases .58
Aquatic facility .69
Desert Willow renovations .80
$ 5.07
See independent auditors’ report.
- 12 -
The City’s fiscal year 2011 capital budget calls for it to spend an additional $24.30 million plus continuing
capital projects spending of $139.98 million from prior year, with the majority being spent on street
improvements. Projects will be funded with existing bond proceeds or funds that have been designated by
an outside party for specific use. More detailed information about the City’s capital assets is presented in
Note 1d and Note 5 to the financial statements.
Debt
At year-end, the City’s governmental activities had $407.91 million in bonds, notes, contracts, and
compensated absences versus $416.12 million last year, a decrease of $8.21 million, or 1.90 percent as
shown in Table 4. The major cause for the decrease was the re-payment of principal of tax allocation
bonds by the Agency.
2010 2009 2010 2009 2010 2009
Compensated absences payable 2.16$ 2.76$ -$ -$ 2.16$ 2.76$
Notes payable 0.25 0.37 - - 0.25 0.37
Capital leases - - 0.33 0.95 0.33 0.95
Claims and judgements payable 0.89 0.78 - - 0.89 0.78
Special assessments debt with
government commitment 1.72 2.70 - - 1.72 2.70
Limited Obligation Improvement
bonds 3.15 2.01 - - 3.15 2.01
Lease revenue bond 5.23 - - - 5.23 -
Tax allocation bonds 394.51 407.50 - - 394.51 407.50
TOTALS 407.91$ 416.12$ 0.33$ 0.95$ 408.24$ 417.07$
TABLE 4
OUTSTANDING DEBT, AT YEAR-END
For the years ended June 30, 2010 and 2009
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
The City was able to meet its current year debt obligation in a timely manner. Debts issued in the prior
year have been used to finance various capital projects. An example of this would be the purchase of
land and construction of the City’s golf course.
The City’s business-type activities debt decreased $0.62 million from $0.95 million to $0.33 million. Debt
in the business-type activities is for capital leasing of equipment. The City’s golf course uses leasing as
an alternative to purchasing maintenance equipment to maintain a cash flow to operate the day-to-day
activities. The decrease in the City’s business-type activities debt was directly related to the continued
reduction in principal on the leases for golf course equipment, golf carts, and the GPS tracking golf cart
system. During the next few years, the debt for the business-type activities will be fully amortized. Within
the next two years, the golf resort will determine whether to replace the maintenance equipment as they
have reached the end of their useful life. The golf carts will be replaced with a new fleet next fiscal year.
As a result, the liability will increase. More detailed information about the City’s long-term liabilities is
presented in Note 6 to the financial statements.
See independent auditors’ report.
- 13 -
See independent auditors’ report.
- 14 -
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for fiscal year 2011, management focused on three core principles; 1) Minimize
the impact of budget cuts to key services and maintain the level of service expected by residents,
businesses, and visitors, 2) Minimize the number of tax and fee adjustments required to maintain existing
service levels, and 3) 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 State of California’s budget crisis has started to affect the pass-through revenues that the
City receives from the State. In addition, the State is holding payments that belong to the City to
meet their obligations. The uncertainty of how the State will balance their budget has caused the
City to anticipate ways of reducing expenditures.
• National Economy: The City’s main revenue sources, sales tax (30%) and transient occupancy
tax (15%), rely heavily on a strong national and local economy. With a strong national economy,
the market demand for leisure activities such as travel, shopping, and dining is increased.
However, in an economic downturn or a slowing of the economy, the typical trend is for
consumers to reduce their disposable income spending for leisure activities. The City of Palm
Desert does not know the impact that the current economic environment will have on the City’s
primary revenue sources; however, since the City relies on tourism for revenue, a downturn in the
tourism industry will have a direct negative impact on the City sales tax and TOT that it relies on.
Compared to the 2009-10 budget, the City’s general fund expenditures are projected to decrease by
$4.05 million. Staff salaries and benefits decreased due to employees who took advantage of early
retirement offered by the City, as well as, layoffs that were enacted in May of 2010. Conversely, the City’s
contracts with the Riverside County Sheriff’s Department for police services and the contract with the Cal-
Fire for fire protection have increased. Due to the decrease in estimated revenues, other levels of
support have been reduced by 16.10 percent.
The 2011 budget is a reflection of the City’s commitment to the residents of Palm Desert. The City’s
conservative approach has provided for a consistently high level of services. The City has made a
commitment to allocate resources for public safety, cultural/social programs, and necessary infrastructure
improvements. A copy of the City’s 2010-2011 financial plan can be obtained by contacting the City’s
Finance Department or on the City’s website at www.cityofpalmdesert.org.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors
with a general overview of the City’s finances and to show the City’s accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
City’s Finance Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California
92260-2578, or (760) 346-0611.
Exhibit A
Componen
Uni
Palm Desert
Recreational
Governmental Business-typ Facilities
Activities Activities Total Corporatio
Current assets:
Cash and investments 283,695,271$ 4,268,419$ 287,963,690$ 186,272$
Receivables:
Accounts 2,334,798 138,926 2,473,724 18,593
otes 1,719,000 - 1,719,000 -
Interest 1,526,906 - 1,526,906 -
Loans 14,068,023 - 14,068,023 -
Prepaid costs 629,919 21,017 650,936 4,461
Inventories 33,262 160,214 193,476 55,428
Due from other government 5,026,158 - 5,026,158 -
Property held for resale 855,224 - 855,224 -
Due from component uni 285,000 818,323 1,103,323 -
Unamortized debt issuance costs 9,990,544 - 9,990,544 -
et OPEB asset 7,305,057 - 7,305,057 -
Deferred asset from derivative instruments 163,286 - 163,286 -
Restricted assets:
Cash with fiscal agen 171,555,686 - 171,555,686 -
oncurrent assets:
Capital assets, not being depreciated 266,217,328 52,616,189 318,833,517 -
Capital assets, net of depreciation 275,718,347 15,614,870 291,333,217 -
TOTAL ASSETS 1,041,123,809 73,637,958 1,114,761,767 264,754
Current liabilities:
Accounts payable 6,809,971 709,306 7,519,277 74,578
Accrued liabilities 525,925 83,363 609,288 20,790
Interest payable 5,194,101 - 5,194,101 -
Unearned revenues 253,887 196,934 450,821 32,719
Deposits payable 569,632 26,136 595,768 -
Due to primary governmen - - - 1,103,323
Liability from derivative instrument 163,286 - 163,286 -
Amounts due unde
ass-through agreemen 60,678,180 - 60,678,180 -
oncurrent liabilities:
Due within one yea 15,930,707 321,798 16,252,505 -
Due in more than one yea 391,982,781 6,475 391,989,256 -
TOTAL LIABILITIES 482,108,470 1,344,012 483,452,482 1,231,410
ET ASSETS:
Invested in capital assets,
net of related debt 304,702,414 67,902,786 372,605,200 -
Restricted for:
Special projects 73,040,134 - 73,040,134 -
Debt service 3,038,461 - 3,038,461 -
Capital projects 67,316,185 - 67,316,185 -
Other Post Employment Benefi 7,305,057 - 7,305,057 -
Unrestricted (deficit) 103,613,088 4,391,160 108,004,248 (966,656)
TOTAL NET ASSETS DEFICIT 559 015 339$ 72 293 946$ 631 309 285$ 966 656$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
- 15 -
Primary Governmen
STATEMENT OF NET ASSETS
June 30, 2010
ASSETS
LIABILITIES AND NET ASSETS
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
Primary Government:
Governmental activities:
General government 58,449,389$ 7,113,204$ 1,616,398$ 1,718,322$
Public safety 27,027,643 9,431,478 91,815 207,450
Parks, recreation and culture 7,312,679 618,440 - -
Public works 19,899,121 706,374 4,850,679 796,540
Interest on long term debt 20,069,813 - - -
Total governmental activities 132,758,645 17,869,496 6,558,892 2,722,312
Business-type activities:
Desert Willow Golf Course 7,832,690 7,054,263 - -
Office Complex - Parkview 875,394 988,056 - -
Total business-type activities 8,708,084 8,042,319 - -
Total primary governmen 141,466,729$ 25,911,815$ 6,558,892$ 2,722,312$
Component Unit:
Palm Desert Recreational Facilities Corp. 2,274,973$ 2,005,700$ -$ -$
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
Contribution not restricted for specific purpose
Miscellaneous
Transfers
Total general revenues
Change in net assets
Net assets (deficit) - beginning of year
et assets (deficit) - end of year
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
- 16 -
STATEMENT OF ACTIVITIES
For the year ended June 30, 2010
Functions/Programs
Program Revenue
Exhibit B
Component
Unit
Palm Desert
Recreational
Governmental Business-type Facilities
Activities Activities Total Corporation
(48,001,465)$ -$ (48,001,465)$ -$
(17,296,900) - (17,296,900) -
(6,694,239) - (6,694,239) -
(13,545,528) - (13,545,528) -
(20,069,813) - (20,069,813) -
(105,607,945) - (105,607,945) -
- (778,427) (778,427) -
- 112,662 112,662 -
- (665,765) (665,765) -
(105,607,945) (665,765) (106,273,710) -
- - - (269,273)
5,424,987 - 5,424,987 -
54,255,702 - 54,255,702 -
6,848,132 - 6,848,132 -
13,691,774 - 13,691,774 -
2,705,902 - 2,705,902 -
151,489 - 151,489 -
2,916,753 62,330 2,979,083 -
644,603 - 644,603 -
2,382,208 - 2,382,208 -
53,237 (53,237) - -
89,074,787 9,093 89,083,880 -
(16,533,158) (656,672) (17,189,830) (269,273)
575,548,497 72,950,618 648,499,115 (697,383)
559,015,339$ 72,293,946$ 631,309,285$ (966,656)$
- 17 -
Primary Government
Net (Expenses) Revenues and Changes in Net Assets
- 18 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 19 -
FUND FINANCIAL STATEMENTS
RDA
Prop A Low Income
General Fire Tax Housing
ASSETS:
Pooled cash and investments 67,416,746$ 2,406,396$ 26,663,015$
Receivables:
Accounts 1,115,797 - 125,666
Assessments - - -
Notes 1,719,000 - -
Interest 740,365 - 71,366
Loans 140,739 - 7,328,010
Prepaid costs 602,960 - -
Due from other governments 2,425,200 567,439 -
Due from other funds 8,918 - -
Advances to other funds 9,236,000 - 17,821,288
Inventories 33,262 - -
Property held for resale - - 855,224
Due from component unit 285,000 - -
Restricted assets:
Cash and investments with fiscal agent - - 25,195,523
TOTAL ASSET 83,723,987$ 2,973,835$ 78,060,092$
LIABILITIES:
Accounts payable 2,968,563$ 953,986$ 30,841$
Accrued liabilities 389,768 - 30,786
Due to other funds - - -
Unearned revenues 3,038 - 6,796
Advances from other funds - - -
Deferred revenue 2,793,650 - 36,493
Amounts due under pass-through agreements - - -
Deposits payable - - 500
TOTAL LIABILITIES 6,155,019 953,986 105,416
FUND BALANCES:
Reserved 13,721,382 - 35,765,570
Unreserved:
Designated for, reported in:
Special revenue - 2,019,849 42,189,106
Debt service - - -
Capital outlay - - -
Undesignated, reported in:
General fund 63,847,586 - -
Special revenue - - -
TOTAL FUND BALANCES 77,568,968 2,019,849 77,954,676
TOTAL LIABILITIES AND FUND BALANCE 83,723,987$ 2,973,835$ 78,060,092$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
Special Revenue Funds
LIABILITIES AND FUND BALANCES
- 20 -
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2010
Exhibit C
RDA RDA RDA Other Total
Financing Debt Capital Governmental Governmental
Authority Service Projects Funds Funds
-$ 110,919,900$ 5,472,433$ 65,752,218$ 278,630,708$
- 250,541 44,991 797,803 2,334,798
- - - 1,569,860 1,569,860
- - - - 1,719,000
14,509 - 483,323 217,343 1,526,906
- - 1,600,000 4,999,274 14,068,023
- - 26,813 146 629,919
- - - 2,033,519 5,026,158
- - - - 8,918
- - - 13,419,000 40,476,288
- - - - 33,262
- - - - 855,224
- - - - 285,000
16,139,929 - 105,951,616 24,268,618 171,555,686
16,154,438$ 111,170,441$ 113,579,176$ 113,057,781$ 518,719,750$
-$ -$ 1,438,333$ 1,417,583$ 6,809,306$
- - 49,513 55,858 525,925
- - - 8,918 8,918
- - - 244,053 253,887
- 40,476,288 - - 40,476,288
- - - 2,480,777 5,310,920
- 60,678,180 - - 60,678,180
- - 15,000 554,132 569,632
- 101,154,468 1,502,846 4,761,321 114,633,056
- - 64,100,871 60,303,865 173,891,688
- - - 18,002,997 62,211,952
16,154,438 10,015,973 - 166,494 26,336,905
- - 47,975,459 30,208,343 78,183,802
- - - - 63,847,586
- - - (385,239) (385,239)
16,154,438 10,015,973 112,076,330 108,296,460 404,086,694
16,154,438$ 111,170,441$ 113,579,176$ 113,057,781$ 518,719,750$
Debt Service Funds
- 21 -
- 22 -
THIS PAGE INTENTIONALLY LEFT BLANK
Exhibit D
Total fund balance for governmental funds 404,086,694$
Amounts reported for governmental activities in the Statement of Net Assets are
different because:
When capital assets (land, buildings, equipment, etc.) that are to be used in
governmental activities are purchased or constructed, the costs of those assets
are reported as expenditures in governmental funds. However, the Statement
of Net Assets includes those capital assets and contribution among the assets
of the City as a whole:
Beginning Balance, net depreciation 546,687,239$
Current year additions 6,333,521
Current year deletions (566,908)
Current year depreciation (11,846,800)
Prior year adjustmen (94,297)
Ending Balance, net depreciation 540,512,755
Deferred asset from derivative Instrument 163,286
Long-term debt activities and compensated absences have not been included
in the governmental fund activities:
Long-term deb (400,212,261)
Bond premium (6,899,537)
Unamortized loss on defeasance 1,360,820
Compensated absences (2,162,510)
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due. (5,194,101)
Cost of issuing bonds is recognized as an expenditure in the period paid, however,
in the Statement of Net Assets it is amortized over the life of the bond. 9,990,544
Liability from derivative instruments (163,286)
Because the focus of governmental funds is on short-term financing, some assets
will not be available to pay for current-period expenditures. Those assets (for
example, receivables) are offset by deferred revenues in the governmental funds
and, thus, are not included in fund balance:
Palm Desert Recreational Facilities Corporation - relates to the amount of rent
owed by component unit to City's General Fund 285,000
Community Development Block Grant - relates to loans given to low
to moderate income families 15,092
Capital reimbursement from developer for work completed by the City
on behalf of the developer 689,586
Interest that was not paid at year-end 278,401
Sales tax 417,981
Redevelopment Agency land purchase from City 2,055,000
3,741,060
Other post employment benefit asset is not available to fund current expenditures
for governmental funds and therefore is not reported as an asset in the
governmental funds.7,305,057
Internal service fund are used by management to charge the costs of certain
activities, such as equipment to individual funds. The assets and liabilities
of the internal service fund must be added to the Statement of Net Assets. 6,486,818
et assets o governmenta act v t es 55 ,5,
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
June 30, 2010
- 23 -
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
RDA
Prop A Low Income
General Fire Tax Housing
REVENUES:
Taxes 34,593,131$ 5,264,673$ -$
Special assessments collected - 2,056,461 -
Licenses and permits 701,941 - -
Intergovernmental revenues 2,677,198 765,311 -
Rental income - - 3,067
Charges for services 618,440 - -
Investment earnings 1,766,868 48,404 485,444
Fines and forfeitures 126,327 - -
Miscellaneous 836,849 9,352 620,937
TOTAL REVENUES 41,320,754 8,144,201 1,109,448
EXPENDITURES:
Current:
General government 12,895,030 - 2,522,568
Pass-through agreement - - -
Public safety 17,427,684 9,194,223 -
Parks, recreation and culture 4,534,505 - -
Public works 7,573,875 - -
Capital outlay 68,718 1,361 4,099
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
TOTAL EXPENDITURES 42,499,812 9,195,584 2,526,667
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,179,058) (1,051,383) (1,417,219)
OTHER FINANCING SOURCES (USES):
Transfers in 4,747,672 - 17,943,665
Transfers out (350,318) - (9,586,557)
Issuance of bonds - - -
TOTAL OTHER FINANCING
SOURCES (USES) 4,397,354 - 8,357,108
NET CHANGE IN FUND BALANCES 3,218,296 (1,051,383) 6,939,889
FUND BALANCES - BEGINNING OF YEAR 74,350,672 3,071,232 71,014,787
FUND BALANCES - END OF YEA 77,568,968$ 2,019,849$ 77,954,676$
See independent auditors' report and notes to basic financial statements.
STATEMENT OF REVENUES, EXPENDITURES AND
CITY OF PALM DESERT
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2010
- 24 -
Special Revenue Funds
Exhibit E
RDA RDA RDA Other Total
Financing Debt Capital Governmental Governmental
Authority Service Projects Funds Funds
-$ 88,068,683$ -$ 2,729,462$ 130,655,949$
- - - 1,126,088 3,182,549
- - - 80,330 782,271
- - 243,294 5,014,431 8,700,234
- - 173,475 4,847,228 5,023,770
- - - - 618,440
94,667 190,761 492,429 1,602,670 4,681,243
- - - 216,727 343,054
- 473,864 8,880 1,424,427 3,374,309
94,667 88,733,308 918,078 17,041,363 157,361,819
- 25,568,580 6,066,335 11,381,166 58,433,679
- 37,794,435 - - 37,794,435
- - - 260,880 26,882,787
- - - - 4,534,505
- - - 6,397,922 13,971,797
- - 2,380,374 3,878,969 6,333,521
14,145,000 122,707 - 983,000 15,250,707
18,000,774 735,411 - 544,332 19,280,517
32,145,774 64,221,133 8,446,709 23,446,269 182,481,948
(32,051,107) 24,512,175 (7,528,631) (6,404,906) (25,120,129)
31,759,391 207,551 3,726,556 1,575,567 59,960,402
(791,298) (41,721,239) (1,415,693) (5,655,297) (59,520,402)
- - - 6,361,000 6,361,000
30,968,093 (41,513,688) 2,310,863 2,281,270 6,801,000
(1,083,014) (17,001,513) (5,217,768) (4,123,636) (18,319,129)
17,237,452 27,017,486 117,294,098 112,420,096 422,405,823
16,154,438$ 10,015,973$ 112,076,330$ 108,296,460$ 404,086,694$
- 25 -
Debt Service Funds
Exhibit F
Net change in fund balances - total governmental funds (18,319,129)$
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
Statement of Activities, the costs of those assets are allocated over their
estimated useful lives as a depreciation expense. This is the amount by which
capital outlays exceeded depreciation and deletions in the current period:
Current year additions 6,333,521$
Current year deletions (566,908)
Current year depreciation (11,846,800) (6,080,187)
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Assets.15,250,707
Proceeds of bonds are reported as other financing sources in governmental
funds, however, the receipts of debt increases liabilities in the Statement of (6,361,000)
Net Assets.
An increase in accreted interest on bonds increases the liabilities in the Statement
of Net Assets, but does not provide resources for the fund financial statements.(1,515,681)
Costs of issuing bonds are recognized as an expenditures in the period paid,
however, in the Statement of Net Assets, it is amortized over the life of the
bond.(301,813)
Premium on bonds are recognized as revenues in the period received, however,
in the Statement of Net Assets it is amortized over the life of the bond.475,703
Losses on defeased bonds are recorded in the Statement of Net Assets as a
reduction to long-term liabilities and amortized over the life of the bonds.(122,715)
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Net change in compensated absences for the current period 598,061
Net change in accrued interest for the current period (60,201)
Net change in claims and judgments for the current period (121,840)
Collection of deferred revenues is reported as revenues in governmental funds
and thus has the effect of increasing fund balances. For the City as a whole,
however, the collection of these receipts reduces the net assets in the Statement
of Net Assets and does not result in revenues in the Statement of Activities:
Deferred loans (1,918)
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 (900,946)
Interest on note issued by the City (8,442)
Sales tax true-up from the State 417,981
Current year change for other post employment benefit asset.334,447
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.183,815
Change in net assets of governmental activities (16,533,158)$
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, 2010
- 26 -
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Exhibit G
Major Other
Fund Fund Governmental
Desert Office Total Activities-
Willow Complex Enterprise Internal
Golf Course Parkview Funds Service Fund
CURRENT ASSETS:
Cash and investments 1,219,626$ 3,048,793$ 4,268,419$ 5,064,563$
Receivables:
Accounts 73,820 65,106 138,926 -
Prepaid costs 19,942 1,075 21,017 -
Inventories 160,214 - 160,214 -
Due from component unit (PDRFC) 818,323 - 818,323 -
TOTAL CURRENT ASSETS 2,291,925 3,114,974 5,406,899 5,064,563
CAPITAL ASSETS:
Nondepreciable 52,616,189 - 52,616,189 -
Depreciable, net 6,939,912 8,674,958 15,614,870 1,422,920
CAPITAL ASSETS, NET 59,556,101 8,674,958 68,231,059 1,422,920
TOTAL ASSETS 61,848,026 11,789,932 73,637,958 6,487,483
CURRENT LIABILITIES:
Accounts payable 683,739 25,567 709,306 665
Accrued liabilities 83,363 - 83,363 -
Deposits payable - 26,136 26,136 -
Unearned revenues 188,126 8,808 196,934 -
Current portion - capital leases 321,798 - 321,798 -
TOTAL CURRENT LIABILITIES 1,277,026 60,511 1,337,537 665
NONCURRENT LIABILITIES:
Capital leases 6,475 - 6,475 -
TOTAL NONCURRENT LIABILITIES 6,475 - 6,475 -
TOTAL LIABILITIES 1,283,501 60,511 1,344,012 665
Invested in capital assets, net of related debt 59,227,828 8,674,958 67,902,786 1,422,920
Unrestricted 1,336,697 3,054,463 4,391,160 5,063,898
TOTAL NET ASSETS 60,564,525$ 11,729,421$ 72,293,946$ 6,486,818$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2010
- 27 -
Enterprise Funds
Business-type Activities-
LIABILITIES
NET ASSETS
ASSETS
Exhibit H
Major Other
Fund Fund Governmental
Desert Office Total Activities-
Willow Complex Enterprise Internal
Golf Course Parkview Funds Service Fund
OPERATING REVENUES:
Fees and rentals 6,162,908$ 988,056$ 7,150,964$ 124,352$
Merchandise sales 891,355 - 891,355 -
TOTAL OPERATING REVENUES 7,054,263 988,056 8,042,319 124,352
OPERATING EXPENSES:
Maintenance and operations 4,300,209 260,144 4,560,353 -
Cost of merchandise 390,608 - 390,608 -
General and administrative 1,966,621 243,611 2,210,232 -
Depreciation and amortization 1,145,514 371,639 1,517,153 373,673
TOTAL OPERATING EXPENSES 7,802,952 875,394 8,678,346 373,673
OPERATING INCOME (LOSS) (748,689) 112,662 (636,027) (249,321)
NONOPERATING REVENUES (EXPENSES):
Interest revenue 1,012 61,318 62,330 89,621
Interest expense (29,738) - (29,738) -
TOTAL NONOPERATING
REVENUES (EXPENSES) (28,726) 61,318 32,592 89,621
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS
AND TRANSFERS (777,415) 173,980 (603,435) (159,700)
CAPITAL CONTRIBUTIONS 358,134 28,629 386,763 343,515
TRANSFERS OUT - (440,000) (440,000) -
CHANGE IN NET ASSETS (419,281) (237,391) (656,672) 183,815
NET ASSETS - BEGINNING OF YEAR 60,983,806 11,966,812 72,950,618 6,208,706
RESTATEMENT OF NET ASSETS - - - 94,297
ET ASSETS - END OF YEAR 60,564,525$ 11,729,421$ 72,293,946$ 6,486,818$
See independent auditors' report and notes to basic financial statements.
For the year ended June 30, 2010
- 28 -
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
Enterprise Funds
Business-type Activities-
Exhibit I
Major Other
Fund Fund Governmental
Desert Office Total Activities-
Willow Complex Enterprise Internal
Golf Course Parkview Funds Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers 6,670,086$ 956,723$ 7,626,809$ -$
Payments to suppliers (3,163,650) (505,618) (3,669,268) -
Payments for contract (3,239,769) - (3,239,769) -
Receipts from interfund services - - - 124,352
NET CASH PROVIDED BY
OPERATING ACTIVITIES 266,667 451,105 717,772 124,352
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash paid to other funds - (440,000) (440,000) -
NET CASH USED BY
NONCAPITAL AND RELATED
ACTIVITIES - (440,000) (440,000) -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (28,000) (102,998) (130,998) (109,980)
Principal paid on leases (638,458) - (638,458) -
Interest paid on leases (29,738) - (29,738) -
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (696,196) (102,998) (799,194) (109,980)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 1,012 61,318 62,330 89,621
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (428,517) (30,575) (459,092) 103,993
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 1,648,143 3,079,368 4,727,511 4,960,570
CASH AND CASH EQUIVALENTS -
END OF YEAR 1,219,626$ 3,048,793$ 4,268,419$ 5,064,563$
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, 2010
Enterprise Funds
Business-type Activities-
- 29 -
Exhibit I
Major Other
Fund Fund Governmental
Desert Office Total Activities-
Willow Complex Enterprise Internal
Golf Course Parkview Funds Service Fund
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Operating income (loss) (748,689)$ 112,662$ (636,027)$ (249,321)$
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization 1,145,514 371,639 1,517,153 373,673
Changes in assets and liabilities:
(Increase) decrease in receivables, net (13,772) (30,572) (44,344) -
(Increase) decrease in prepaid costs (2,466) (720) (3,186) -
(Increase) decrease in inventories 71,534 - 71,534 -
(Increase) decrease in due
from component unit (376,525) - (376,525) -
Increase (decrease) in accrued liabilities 184,951 (193) 184,758 -
Increase (decrease) in deposits payable - (951) (951) -
Increase (decrease) in unearned revenues 6,120 (760) 5,360 -
NET CASH PROVIDED BY
OPERATING ACTIVITIES 266,667$ 451,105$ 717,772$ 124,352$
NONCASH ITEMS:
Noncash items include $358,134, $28,629 and $343,515 (net value) of capital assets contributed by the City of Palm Desert to Desert
Willow Golf Course, Office Complex Parkview and the internal service fund, respectively and $11,590 in capital assets acquired through
the issuance of a lease in the Desert Willow Golf Course Fund.
See independent auditors' report and notes to basic financial statements.
Enterprise Funds
(CONTINUED)
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2010
Business-type Activities-
- 30 -
CITY OF PALM DESERT
Exhibit
Total
Agenc
Funds
Cash and investments 14,403,214$
Receivables (net of allowance for uncollectibles):
Accounts 106,442,541
Interest 283
Restricted assets:
Cash with fiscal agen 8,133,655
TOTAL ASSETS 128,979,693
Deposits 128,979,693
See independent auditors' report and notes to basic financial statements
CITY OF PALM DESERT
- 31 -
ASSETS
LIABILITIES
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
June 30, 2010
- 32 -
THIS PAGE INTENTIONALLY LEFT BLANK
See independent auditors’ report.
- 33 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2010
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 Redevelopment Agency (Agency) was established October 24, 1974, pursuant
to California Health and Safety Code Section 33000 entitled "Community Redevelopment
Law." The purpose of the Agency is to prepare and execute plans for the improvement,
rehabilitation and redevelopment of blighted areas within the limits of the City. The Agency's
transactions are reported in the governmental fund financial statements as special revenue, debt
service, and capital projects funds.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 34 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
a. Description of the Reporting Entity (Continued):
Blended Component Units (Continued)
The Palm Desert Housing Authority (Housing Authority) was established by the City Council
in January 1998, and is partly responsible for the administration of providing affordable
housing in the City. The Housing Authority transactions are reported in the governmental fund
financial statements under other governmental funds.
The Palm Desert Financing Authority (Financing Authority) was formed on January 26, 1989.
The purpose of the Financing Authority is to issue debt and loan the proceeds to the City and
Agency. The Financing Authority's capital related transactions are reported in the governmental
fund financial statements in the capital projects funds, and the collection of assessments and
payments of debt service is recorded in the fiduciary funds.
The City Council of Palm Desert is the governing body for the Agency, Housing Authority and
Financing Authority.
The financial statements of the Agency can be obtained at the administrative offices of the
City. Separate financial statements are not issued for the Housing Authority and Financing
Authority.
Discretely Presented Component Unit
The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on
February 25, 1997. The purpose of the Corporation is to lease, operate and manage a restaurant
and bar in the Desert Willow Golf Course in Palm Desert, California. The Board of Directors of
the Corporation appoints an executive director to administer operations.
The Corporation is in a separate column to emphasize that it is legally separate from the City
and is financially accountable to the City. The two-member board governing the Corporation is
appointed by the City Council, and the City has authority to control the Corporation's budget.
Complete financial statements of the Component Unit can be obtained from the City's
administrative offices.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 35 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation:
Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of the nonfiduciary activities of the primary government
and its component units. For the most part, the effect of interfund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to
a significant extent on fees and charges for support. Likewise, the primary government is
reported separately from certain legally separate component units for which the primary
government is financially accountable.
The statement of activities demonstrates the degree to which the direct and indirect expenses of
a given function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include: 1) charges
to customers or applicants who purchase, use or directly benefit from goods, services or
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead as
general revenues. Expenses reported for functional activities include allocated indirect
expenses.
Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
Fund Financial Statements
The accounting system of the City is organized and operated on the basis of separate funds,
each of which is considered to be a separate accounting entity. Each fund is accounted for by
providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund
equity, revenues and expenditures/expenses. Funds are organized into three major categories:
governmental, proprietary and fiduciary. An emphasis is placed on major funds within the
governmental and proprietary categories.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 36 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
A fund is considered major if it is the primary operation fund of the City or meets the following
criteria:
a. Total assets, liabilities, revenues or expenditures/expenses of that individual governmental
or enterprise fund are at least 10% of the corresponding total for all funds of that category
or type; and
b. Total assets, liabilities, revenues or expenditures/expenses of the individual governmental
fund or enterprise fund are at least 5% of the corresponding total for all governmental and
enterprise funds combined.
c. The government has determined that a fund is important to the financial statement user.
The funds of the financial reporting entity are described below:
Governmental Fund Types
General Fund - The General Fund is the general operating fund of the City. It is used to account
for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of
specific revenue resources (other than major capital projects) that are legally restricted to
expenditures for specified purposes.
Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources
for, and the payment of, general long-term obligation principal, interest and related costs.
Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be
used for the acquisition or construction of major capital facilities.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 37 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
The funds of the financial reporting entity are described below (Continued):
Proprietary Fund Types
Enterprise Funds - The Enterprise Funds account for operations that are financed and operated
in a manner similar to private business enterprises, where the intent of the City Council is that
the costs (expenses including depreciation) of providing goods and services to the general
public on a continuing basis be financed or recovered primarily through user charges.
The Primary Government's Enterprise funds consist of the Parkview Office Complex and the
Desert Willow Golf Course, which are operated by a management company. The Component
Unit's Enterprise fund consists of the Palm Desert Recreational Facilities Corporation.
Internal Service Funds - The Internal Service Fund accounts for financial transactions related to
replacement of City-owned vehicles and equipment. These services are provided to other
departments or agencies of the City on a cost reimbursement basis.
Fiduciary Fund Types
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, 2010
See independent auditors’ report.
- 38 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
The major funds are as follows:
Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund.
The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax
collected within the City for upgrading fire protection and prevention. Its use is restricted to
obtaining, furnishing, operating and maintaining fire protection and prevention services
(currently under contract with Riverside County Fire Department) equipment or apparatus. This
fund is reported as a major fund because the tax collected is a voter approved measure.
The RDA Low Income Housing Special Revenue Fund is used to account for the tax increment
set aside to be spent on projects that benefit low and moderate income families.
The Redevelopment Agency Financing Authority Debt Service Fund is used to account for the
resources and payment of the debt issued by the Palm Desert Financing Authority and loaned to
the Redevelopment Agency.
The Redevelopment Agency Debt Service Fund is used to account for resources and payments
of debt issued by the Redevelopment Agency.
The Redevelopment Agency Capital Projects Fund is used to account for the financial
resources to be used for the acquisition or construction of major capital facilities in the Palm
Desert Redevelopment Agency.
Proprietary Fund
The Desert Willow Golf Course Fund is used to account for the fees collected and expenses
incurred in connection with operating the municipal golf course in the City of Palm Desert.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 39 -
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 Assets and the Statement of Activities, both
governmental and business-like activities are presented using the economic resources
measurement focus. The accounting objectives of the economic measurement focus are the
determination of operating income, changes in net assets (or cost recovery), financial position
and cash flows. All assets and liabilities (whether current or noncurrent) associated with their
activities are reported.
In the fund financial statements, the "current financial resources" measurement focus or the
"economic resources" measurement focus is used as appropriate:
1. All governmental funds utilize a "current financial resources" measurement focus. Only
current financial assets and liabilities are generally included on their balance sheets. Their
operating statements present sources and uses of available spendable financial resources
during a given period. These funds use fund balance as their measure of available spendable
financial resources at the end of the period.
2. The proprietary fund utilizes an "economic resources" measurement focus. Proprietary fund
equity is classified as net assets.
3. Agency funds are not involved in the measurement of results of operations; therefore,
measurement focus is not applicable to them.
Basis of Accounting
In the government-wide Statement of Net Assets and Statement of Activities, both
governmental and business-like activities are presented using the accrual basis of accounting.
Under the accrual basis of accounting, revenues are recognized when earned and expenses are
recorded when the liability is incurred or economic asset used. Revenues, expenses, gains,
losses, assets and liabilities resulting from exchange and exchange-like transactions are
recognized when the exchange takes place.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 40 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting (Continued)
In the fund financial statements, governmental funds are presented on the modified accrual
basis of accounting. Under this modified accrual basis of accounting, revenues are recognized
when "measurable and available." Measurable means knowing or being able to reasonably
estimate the amount. Available means collectible within the current period or soon enough
thereafter to pay current liabilities.
Revenues that are susceptible to accrual include property taxes and special assessments that are
levied for and due for the fiscal year and collected within 60 days after year-end. Licenses,
permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as
governmental fund type revenues when received in cash because they are not generally
measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes,
are recognized in the accounting period in which they became both measurable and available to
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 in the amount of $3,546,412 has been eliminated from the general
government function for the government-wide financial statements except for charges between
the government's Desert Willow Golf Course and Parkview Office Complex funds and various
other functions of the government. Elimination of these charges would distort the direct costs
and program revenues for the various functions considered.
The accrual basis of accounting is followed by the proprietary fund. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability
is incurred or economic assets are used.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing goods and services in
connection with a proprietary fund's principal ongoing operations. The principal revenue of the
Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges to
customers for use of the golf course and rental fees. Operating expenses for enterprise funds
include the cost of sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 41 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting (Continued)
Private-sector standards of accounting and financial reporting issued prior to December 1989,
generally are followed in both the government-wide and proprietary fund financial statements
to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. Governments also have the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds,
subject to this same limitation. The government has elected not to follow subsequent private-
sector guidance.
When both restricted and unrestricted resources are available for use, it is the government's
policy to use restricted resources first, and then unrestricted resources as they are needed.
d. Capital Assets and Depreciation:
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads,
traffic signals, drainage systems and similar items), are reported in the applicable governmental
or business-type activities column in the government-wide financial statements. Capital assets
are defined by the City as assets with an initial cost of more than $500 and an estimated life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at
the date of donation.
In accordance with GASB Statement No. 34, the City has reported general infrastructure assets
acquired in prior and current years.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Property, plant and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Buildings 40 years
Improvements other than buildings 20 years
Machinery and equipment 5 to 8 years
Infrastructure 20 to 75 years
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 42 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
e. Appropriations Limit:
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative),
the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and
if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the
State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or
other refund arrangements. For the fiscal year ended June 30, 2010, proceeds of taxes did not
exceed appropriations.
f. Investments:
Investments are stated at fair value (quoted market price or the best available estimate thereof).
g. Cash and Investments:
For purposes of the statement of cash flows, the City has defined cash and investments to
include cash on hand, demand deposits, investments held in various instruments, and
investments held in the California Local Agency Investment Fund (LAIF) and California Asset
Management Program (CAMP).
h. Employee Compensated Absences:
It is the government's policy to permit employees to accumulate earned but unused vacation
and sick leave (compensated absences). Vacation pay and sick leave, which are expected to be
liquidated with expendable available resources, are reported as expenditure and liability of the
governmental fund that will pay it only if they have matured, for example, as a result of
employee resignations or retirements. Compensated absences in the amount of $2,162,510,
which are not expected to be liquidated with expendable available financial resources, are
reported as long-term liabilities.
i. Property Held for Resale:
The Agency purchased land within the Agency's project area. The land held for resale is
recorded in the Redevelopment Agency Low Income Housing Special Revenue Fund as
property held for resale at the lower of acquisition cost or net realizable value. At
June 30, 2010, the cost of the property held for resale for various housing properties in Palm
Desert totaled $855,224.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 43 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
j. Inventories, Prepaid Costs and Deposits:
Inventory in the amount of $160,214 and $55,428 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 $33,262 in the general
fund is stated at cost. Inventory is recorded as an expenditure when consumed rather than
purchased.
Certain payments to vendors that reflect costs applicable to future accounting periods are
recorded as prepaid costs in the government-wide and fund financial statements.
k. Property Tax Calendar:
Property taxes are assessed and collected each fiscal year according to the following property
tax calendar:
Lien date: January 1
Levy date: July 1 to June 30
Due date: November 1 - 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.
l. 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, 2010
See independent auditors’ report.
- 44 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
m. Use of Estimates:
The financial statements are prepared in conformity with accounting principles generally
accepted in the United States of America and, accordingly, include amounts that are based on
management’s best estimates and judgments. The financial statements include estimates for
the value of the capital assets (infrastructure), depreciation expense, fair value of investments,
for the amounts reported for the schedule of funding progress for the Defined Benefit Plan
(Note 10) and actuarial accrued liability for the other post-employment benefits (Note 14).
Accordingly, actual results could differ from the estimates.
2. CASH AND INVESTMENTS:
As of June 30, 2010, cash and investments were reported in the accompanying financial statements
as follows:
Governmental activities $ 455,250,957
Business-type activities 4,268,419
Component unit 186,272
Fiduciary funds 22,536,869
Total Cash and Investments $ 482,242,517
Cash and investments at June 30, 2010 consisted of the following:
Demand accounts $ 7,018,891
Petty cash 18,350
Investments 475,205,276
Total Cash and Investments $ 482,242,517
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 45 -
2. CASH AND INVESTMENTS (CONTINUED):
Deposits
At June 30, 2010, the carrying amount of the City’s deposits was $7,018,891, and the bank balance
was $7,907,888. The $(888,997) 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 enterprise obligations, participations or other instruments
• Banker’s Acceptances issued by commercial banks
• Commercial Paper issued by general corporations
• Negotiable Certificates of Deposits, issued by a nationally or state-chartered bank, a savings
association, a federal association or by a state-licensed branch of a foreign bank
• Time Certificates of Deposit issued by qualified public depositories.
• 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
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 46 -
2. CASH AND INVESTMENTS (CONTINUED):
Investments (Continued)
• 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 Standard and Poor’s rating as of year-end for each investment type.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 47 -
2. CASH AND INVESTMENTS (CONTINUED):
Credit Risk (Continued)
Total Minimum
as of Legal
Investment Type June 30, 2010 Rating AAA Other Unrated
California Local Agency
Investment Fund $ 89,532,285 N/A $ - $ - $ 89,532,285
California Asset
Management Program 35,595,800 N/A 35,595,800 - -
United States Government
Sponsored Enterprise
Securities 125,475,693 N/A 125,475,693 - -
Medium-term corporate notes 44,352,789 A - 44,352,789 -
Investment in City Bonds 3,151,000 N/A - - 3,151,000
Held by Fiscal Agent:
Money market mutual funds 96,191,675 AAA 96,191,675 - -
California Local Agency
Investment Fund 80,906,034 N/A - - 80,906,034
Total $ 475,205,276 $ 257,263,168 $ 44,352,789 $173,589,319
N/A - Not Applicable
The actual ratings for the Medium Term Corporate Notes (MTN) are as follows:
Other:
AA $ 17,313,820
AA+ 10,063,505
A 6,962,723
A+ 10,012,741
$ 44,352,789
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 48 -
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, 2010, 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, 2010, in accordance with
GASB Statement no. 40, if the city has invested more than 5% of its total investments in any one
issuer then they are exposed to concentration of credit risk. The following investments are
considered to be exposed to concentration credit risk:
Issuer Investment Type
Reported
Amount
Percent of
Investment
Federal Home Loan Bank U.S. Government Sponsored
Enterprise Securities
$ 58,771,429 12 %
Federal National
Mortgage Association
U.S. Government Sponsored
Enterprise Securities
28,108,304 6 %
Federal Home Loan
Mortgage Corporation
U.S. Government Sponsored
Enterprise Securities
25,511,333 5 %
Investments explicitly guaranteed by the U.S. government, investments in mutual funds and
external investment pools are excluded from this requirement.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 49 -
2. CASH AND INVESTMENTS (CONTINUED):
Concentration of Credit Risk (continued)
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
Enterprise Securities 100% 30%
Banker’s Acceptances 40% 30%
Commercial Paper 25% 10%
Negotiable Certificates of Deposit 30% N/A
Time Certificates of Deposit 15% N/A
Repurchase Agreements 20% N/A
Medium-Term Corporate Notes 30% 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 30% N/A
N/A - Not Applicable
The City’s policy is more conservative than state law, which has no issuer concentration limits on
federal agency debt. The federal agency debt that the City purchases have implied credit ratings of
“AAA/Aaa”.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to
fair value losses arising from increasing interest rates. The City's investment policy states that the
City shall not invest in securities with maturities exceeding five years and the weighted-average
maturity of the City portfolio shall not exceed 540 days. The City has elected to use the segmented
time distribution method of disclosure for its interest rate risk.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 50 -
2. CASH AND INVESTMENTS (CONTINUED):
Interest Rate Risk (continued)
As of June 30, 2010, the City had the following investments and maturities:
Less Than 6 months - 1 year - Over Fair
6 Months 1 year 3 years 3 years Value
California Local Agency
Investment Fund $ 89,532,285 $ - $ - $ - $ 89,532,285
California Asset Management
Program 35,595,800 - - - 35,595,800
United States Government
Sponsored Enterprise Securities 20,846,925 19,158,532 85,470,236 - 125,475,693
Medium-term corporate notes 21,085,325 8,251,810 15,015,654 - 44,352,789
Investment in City Bonds 101,000 - 447,000 2,603,000 3,151,000
Held by Fiscal Agent:
Money market mutual funds 96,191,675 - - - 96,191,675
California Local Agency
Investment Fund 80,906,034 - - - 80,906,034
$ 344,259,044 $ 27,410,342 $100,932,890 $ 2,603,000 $475,205,276
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 51 -
2. CASH AND INVESTMENTS (CONTINUED):
Investment in California Asset Management Program
The California Asset Management Program (CAMP) is a public joint powers authority which
provides California Public Agencies with investment management services for surplus funds and
comprehensive investment management, accounting and arbitrage rebate calculation services for
proceeds of tax-exempt financings. The CAMP currently offers the Cash Reserve Portfolio, a
short-term investment portfolio, as a means for Public Agencies to invest these funds. Public
Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants
may also establish individual, professionally managed investment accounts (Individual Portfolios)
by separate agreement with the Investment Advisor.
Investments in the Pools and Individual Portfolios are made only in investments in which Public
Agencies generally are permitted by California statute. The CAMP may reject any investment and
may limit the size of a Participant’s account. The Pool seeks to maintain, but does not guarantee, a
constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool
accounts at any time by check or wire transfers. Requests for wire transfers must be made by
9:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the Pool’s
underlying portfolio.
3. RECEIVABLES:
Primary Government's Governmental Funds
Notes and Loans Receivable:
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds will be used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. Bond maturities begin
September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from
3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and
reports a receivable in the general fund that corresponds to the outstanding principal on the bonds.
As of June 30, 2010, the receivable balance was $1,719,000.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 52 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
On April 21, 2003, the Agency entered into a loan agreement with The Regents of the University
of California, on behalf of its Riverside Campus, to loan various amounts over a period of time, not
to exceed an aggregate amount of $2,000,000. Proceeds of the loan are to be used for capital
improvements at the University’s Riverside Campus. The outstanding principal balance and
interest on the note is due in five annual payments beginning on July 15, 2009. As of
June 30, 2010, the amount outstanding on the loan is $1,600,000.
The City has $15,092 and the Agency has $29,463 in home improvement loans. Payments of
interest and principal are due monthly on these loans.
The City entered into several individual loan agreements with residents of the Highlands Utility
Undergrounding Assessment District No. 04-01. The loans were issued by the City to pay off the
principal of the respective properties assessment. In turn, the residents agreed to pay to the City the
full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the
loan along with all accrued interest is due and payable at the earliest of September 2, 2036 or any
change in ownership of the property. At June 30, 2010 the total receivable from the Highlands
Deferral Loan Program is $140,739.
A loan receivable for the construction of a multi-family affordable housing development dated
June 14, 2001, with a balance of $7,298,547 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 Senate 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. Senate 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, 2010 the outstanding loans receivable through the
EIP Program was $4,984,182.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors‟ report.
- 53 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
The Agency has issued loans for several other projects, all of which are secured by a deed of trust.
A valuation allowance equal to the loan balance has been recognized where there is a significant
possibility that these loans either become uncollectible or forgiven by the Agency at a future date if
all the terms of the loans have been met.
Detailed information for these loans is as follows:
Loan
Balance Interest Maturity Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Self-Help 429,000$ 7.25%30 years Deed of Trust
Housing Program or 2024
Home Improvement 218,346 N/A N/A Deed of Trust
Loans
Portola Palms 149,040 3.00%30 years Deed of Trust
Mobilehome Park from date
of loan
Desert Rose 2,257,521 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, 2010
See independent auditors‟ report.
- 54 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
Detailed information for these loans (Continued):
Loan
Balance Interest Maturity Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Falcon Crest 5,888,423$ 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.
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
The composition of interfund balances as of June 30, 2010, was as follows:
Due To/From Other Funds
Due From Due To Amount
General Fund Other Governmental Funds $ 8,918
$ 8,918
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 55 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Due To/From Other Funds (Continued)
The General Fund receivable of $8,918 to Other Governmental Funds was to provide temporary
funds for operations.
The composition of interfund balances as of June 30, 2010, was as follows:
Advances To/From Other Funds
Advances From Advances To Amount
General Fund RDA Debt Service Fund $ 9,236,000
RDA Low-Income Housing RDA Debt Service Fund 17,821,288
Other Governmental Funds RDA Debt Service Fund 13,419,000
$ 40,476,288
The advances from the General Fund and Other Governmental Funds were made to the
Redevelopment Agency for capital improvements. The advances earn interest at a rate equal to
LAIF rates plus four percent (4%) in Project Area No. 1 and plus two percent (2%) in Project Area
No. 2. The advances from the RDA Low-Income Housing Fund to the RDA Debt Service Fund
were made to cover the SERAF payment. The advances have no interest rate.
Due To/From Component Unit
Due From
Component
Unit
Major Funds:
General Fund $ 285,000
Desert Willow Golf Course 818,323
$ 1,103,323
The receivable by the General Fund is for rent owed by the Palm Desert Recreational Facilities
Corporation (PDRFC), and the receivable by the Desert Willow Golf Course represents funds
loaned to PDRFC for operations.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors‟ report.
- 56 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
The composition of interfund balances as of June 30, 2010, was as follows:
Interfund Transfers
RDA
Low Income RDA
Housing Financing RDA
Special Authority RDA Capital Other
General Revenue Debt Service Debt Service Projects Governmental
Fund Fund Fund Fund Fund Funds Total
General Fund -$ -$ -$ -$ -$ 350,318$ 350,318$
RDA Low
Income
Housing - - 9,082,658 207,551 296,348 - 9,586,557
RDA Financing
Authority
Debt Service - - - - 791,298 - 791,298
RDA Debt
Service - 17,821,289 22,676,733 - 1,223,217 - 41,721,239
RDA Capital
Projects - - - - 1,415,693 - 1,415,693
Other
Governmental
Funds 4,307,672 122,376 - - - 1,225,249 5,655,297
Office
Complex
Parkview
Enterprise
Fund 440,000 - - - - - 440,000
Totals 4,747,672$ 17,943,665$ 31,759,391$ 207,551$ 3,726,556$ 1,575,567$ 59,960,402$
Transfers In
Transfers Out:
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 57 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Interfund Transfers (Continued)
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 20% of tax increment received by RDA debt service funds to the low and moderate
income housing special revenue fund.
3. Transfer allocation of administrative expenses.
4. Transfer revenues to provide for capital projects, and
5. Transfer revenues to provide for additional resources to pay for expenditures.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 58 -
5. CAPITAL ASSETS:
A summary of changes in capital assets at June 30, 2010, was as follows:
Primary Government - Governmental Activities
Balance at Balance at Balance at
June 30, 2009 Adjustments June 30, 2009 Transfers Additions Deletions June 30, 2010
Capital assets, not
being depreciated:
Land 125,343,381$ -$ 125,343,381$ 173,434$ 1,372,513$ -$ 126,889,328$
Right-of-way 120,505,799 - 120,505,799 13,445 110,243 - 120,629,487
Construction-in-progress 16,897,187 - 16,897,187 (85,438) 2,429,594 (542,830) 18,698,513
Total capital assets, not
being depreciated 262,746,367 - 262,746,367 101,441 3,912,350 (542,830) 266,217,328
Capital assets, being
depreciated:
Buildings 119,150,570 - 119,150,570 (173,434) 511,582 - 119,488,718
Improvements other
than buildings 53,239,496 - 53,239,496 - 460,074 - 53,699,570
Machinery and equipment 8,689,871 (103,087) 8,586,784 - 123,315 (192,260) 8,517,839
Infrastructure 221,912,143 - 221,912,143 71,993 1,326,200 - 223,310,336
Equipment - Internal
service fund 5,024,855 103,087 5,127,942 - 454,160 (141,487) 5,440,615
Total capital assets,
being depreciated 408,016,935 - 408,016,935 (101,441) 2,875,331 (333,747) 410,457,078
Less accumulated
depreciation for:
Buildings (36,192,206) - (36,192,206) - (2,958,351) - (39,150,557)
Improvements other
than buildings (15,596,346) - (15,596,346) - (2,801,785) - (18,398,131)
Machinery and equipment (6,339,740) 8,790 (6,330,950) - (707,712) 168,182 (6,870,480)
Infrastructure (60,922,916) - (60,922,916) - (5,378,952) - (66,301,868)
Equipment - Internal
service fund (3,776,719) (8,790) (3,785,509) - (373,673) 141,487 (4,017,695)
Total accumulated
depreciation (122,827,927) - (122,827,927) - (12,220,473) 309,669 (134,738,731)
Capital assets, being
depreciated, net 285,189,008 - 285,189,008 (101,441) (9,345,142) (24,078) 275,718,347
Capital assets, net -
Governmental Activities 547,935,375$ -$ 547,935,375$ -$ (5,432,792)$ (566,908)$ 541,935,675$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 59 -
5. CAPITAL ASSETS (CONTINUED):
A summary of changes in capital assets at June 30, 2010, was as follows:
Primary Government - Business-type Activities
Balance at Balance at Balance at
June 30, 2009 Adjustments June 30, 2009 Transfers Additions Deletions June 30, 2010
Capital assets, not
being depreciated:
Land 52,616,189$ -$ 52,616,189$ -$ -$ -$ 52,616,189$
Total capital assets, not
being depreciated 52,616,189 - 52,616,189 - - - 52,616,189
Capital assets, being
being depreciated:
Buildings and
improvements 19,454,052 - 19,454,052 - 138,481 - 19,592,533
Machinery and equipment 5,915,329 - 5,915,329 - 393,890 (220,390) 6,088,829
Total capital assets,
being depreciated 25,369,381 - 25,369,381 - 532,371 (220,390) 25,681,362
Less accumulated
depreciation for:
Buildings and
improvements (4,224,830) - (4,224,830) - (613,316) - (4,838,146)
Machinery and equipment (4,541,880) - (4,541,880) - (903,837) 217,371 (5,228,346)
Total accumulated
depreciation (8,766,710) - (8,766,710) - (1,517,153) 217,371 (10,066,492)
Capital assets, being
depreciated, net 16,602,671 - 16,602,671 - (984,782) (3,019) 15,614,870
Capital assets, net -
Business-type Activities 69,218,860$ -$ 69,218,860$ -$ (984,782)$ (3,019)$ 68,231,059$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 60 -
5. CAPITAL ASSETS (CONTINUED):
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 3,361,678
Public safety 238,307
Public works 5,890,633
Parks, recreation and culture 2,356,182
Depreciation expenses for internal service funds is charged
to various functions based on usage of capital assets 373,673
Total depreciation expense - governmental activities $ 12,220,473
Business-type Activities:
Desert Willow Golf Course $ 1,145,514
Parkview Office complex 371,639
Total depreciation expense - business-type activities $ 1,517,153
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 61 -
6. LONG-TERM LIABILITIES:
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2010:
Primary Government - Governmental Activities
Balance Balance Due Within
July 1, 2009 Additions Reductions June 30, 2010 One Year
Special assessment deb
with governmen
commitment 2,702,000$ -$ (983,000)$ 1,719,000$ 32,000$
Tax allocation bonds 401,601,475 1,515,681 (14,145,000) 388,972,156 14,625,000
Limited obligatio
improvement bonds 2,015,000 1,136,000 - 3,151,000 101,000
Lease revenue bonds - 5,225,000 - 5,225,000 130,000
Notes payable 368,121 - (122,707) 245,414 122,707
Claims and judgments
ayable 777,851 609,926 (488,086) 899,691 320,000
Compensated absences
ayable 2,760,571 1,830,272 (2,428,333) 2,162,510 600,000
Subtotal 410,225,018 10,316,879 (18,167,126) 402,374,771 15,930,707
Add: Unamortized
ond premiu 7,375,240 - (475,703) 6,899,537 -
Less: Deferred amoun
on refunding (1,483,535) - 122,715 (1,360,820) -
Total 416,116,723$ 10,316,879$ (18,520,114)$ 407,913,488$ 15,930,707$
Debt service payments for the special assessment debt with government commitment, tax
allocation bonds and notes payable are made from debt service funds.
Primary Government -Business-type Activities:
Capital leases 955,141$ 11,590$ (638,458)$ 328,273$ 321,798$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 62 -
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 $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds will be used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential obligation to
provide additional funds to pay the debt service, therefore these bonds are reported as special
assessment debt with government commitment. Bond maturities begin September 2, 2007, and
continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The
City of Palm Desert is the only bondholder on record of the bonds.
The future debt service requirements on the Highlands Undergrounding Assessment District
No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:
Year Ending
June 30, Principal Interest Total
2011 32,000$ 85,683$ 117,683$
2012 34,000 84,264 118,264
2013 35,000 82,745 117,745
2014 36,000 81,148 117,148
2015 38,000 79,445 117,445
2016 - 2020 220,000 367,388 587,388
2021 - 2025 281,000 305,430 586,430
2026 - 2030 360,000 224,009 584,009
2031 - 2035 463,000 118,579 581,579
2036 - 2037 220,000 11,485 231,485
1,719,000$ 1,440,176$ 3,159,176$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 63 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2010, was as follows:
Balance Additions/ Repayments/ Balance Due Within
July 1, 2009 Accretion Reductions June 30, 2010 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 20,775,000 - (945,000) 19,830,000 1,130,000
2006 A & B TARBs, $62,320,000 56,065,000 - (2,195,000) 53,870,000 2,320,000
2007A TARRBs, $32,600,000 28,060,000 - (2,640,000) 25,420,000 2,625,000
Project Area No. 2
2002A TARRBs, $17,310,000 13,355,000 - (695,000) 12,660,000 720,000
2003 TARBs, $15,745,000 15,745,000 - - 15,745,000 -
2006 A-D TARBs, $67,618,213 68,350,021 1,005,564 (2,015,000) 67,340,585 1,790,000
Project Area No. 3
2003 TARBs, $4,745,000 4,120,000 - (100,000) 4,020,000 105,000
2006 A-C TABs, $15,059,526 15,566,776 216,202 (135,000) 15,647,978 170,000
Project Area No. 4
1998 TARBs, $11,02,000 8,355,000 - - 8,355,000 130,000
2001 TARBs, $15,695,000 14,200,000 - (305,000) 13,895,000 320,000
2006A TARBs, $19,273,089 19,854,678 293,915 (445,000) 19,703,593 435,000
Combined Low and
Moderate Housing
1998 TARBs, $48,760,000 4,385,000 - (1,390,000) 2,995,000 1,460,000
2002 TARBs, $12,100,000 10,610,000 - (275,000) 10,335,000 285,000
2007 TARBs, $86,155,000 81,090,000 - (3,005,000) 78,085,000 3,135,000
Total 401,601,475$ 1,515,681$ (14,145,000)$ 388,972,156$ 14,625,000$
Tax Allocation bonds used for capital improvements are special obligations of the Agency and the
Financing Authority (a component unit of the Agency) and are secured by an irrevocable pledge of
tax revenues and other funds as provided under the Bond Resolution. The bonds and any interest
thereon are not a debt of the City, the State of California or any of its political subdivisions, and
neither the City, the State of California nor any of its political subdivisions is liable on the bonds,
nor in any event shall the bonds and interest thereon be payable out of any funds or properties other
than those provided under the Bond Resolution. The Agency purchased insurance from Ambac
Assurance Corporation (Ambac) and MBIA Insurance Corporation (MBIA) for the purpose of
enhancing the creditworthiness of the bonds.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 64 -
6. LONG-TERM LIABILITIES (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”).
Pursuant to California Health and Safety Code Section 33670, the total number of dollars of taxes
which may be divided and allocated to the Agency for Project Area No. 1 is $500,000,000, and it is
estimated that the cap will be reached in the year 2022. Project Area No. 4’s total is $600,000,000,
and it is estimated that this cap will be reached in the year 2034. The result of reaching the cap
limits would preclude the Agency from receiving taxes and using the taxes to pay debt in these
project areas, thereby requiring the Agency to call bonds prior to those dates. As of June 30, 2010,
the Agency has transferred $6,273,954 to its trustee to cover debt payments.
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”).
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 65 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
In March 2002, the Palm Desert Financing Authority issued $22,070,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2002 Series A. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency. A portion of the proceeds of the
loan was used to prepay the prior loan, which affected the current refunding of a like portion of the
prior bonds. The remainder was used to fund various redevelopment capital projects of the Agency
in Project Area No. 1. The bonds consist of $10,905,000 term bonds at 5.00% due April 1, 2025,
and $11,165,000 term bonds at 5.10% due April 1, 2030. Interest is payable semi-annually on
April 1 and October 1. Mandatory sinking fund redemptions begin April 1, 2024.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2011 -$ 1,114,665$ 1,114,665$
2012 - 1,114,665 1,114,665
2013 - 1,114,665 1,114,665
2014 - 1,114,665 1,114,665
2015 - 1,114,665 1,114,665
2016 - 2020 - 5,573,325 5,573,325
2021 - 2025 10,905,000 5,334,325 16,239,325
2026 - 2030 11,165,000 1,764,855 12,929,855
22,070,000$ 18,245,830$ 40,315,830$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 66 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 1)
In July 2003, the Financing Authority issued $19,000,000 Tax Allocation Revenue Bonds (Project
Area No. 1, as amended) 2003 Series. The proceeds of the bonds were disbursed to make a loan to
the Redevelopment Agency. The Agency 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 $11,950,000 term bonds due in 2030. Interest will be payable on April 1 and
October 1 of each year beginning April 1, 2004. Principal payments will be on April 1 of the years
stated above.
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 1) are as follows:
Year Ending
June 30, Principal Interest Total
2011 -$ 950,000$ 950,000$
2012 - 950,000 950,000
2013 - 950,000 950,000
2014 - 950,000 950,000
2015 - 950,000 950,000
2016 - 2020 - 4,750,000 4,750,000
2021 - 2025 - 4,750,000 4,750,000
2026 - 2030 19,000,000 2,942,500 21,942,500
19,000,000$ 17,192,500$ 36,192,500$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 67 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2004 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
In June 2004, the Palm Desert Financing Authority issued $24,945,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2004 Series A. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency to refinance a portion of the
Agency’s obligations from 1995, and to fund various redevelopment capital projects within or of
benefit to the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable
semi-annually on April 1 and October 1. Principal payments will be made annually beginning
April 1, 2005.
The future debt service requirements on the 2004 Series A Tax Allocation Revenue Bonds (Project
Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2011 1,130,000$ 927,063$ 2,057,063$
2012 1,050,000 876,213 1,926,213
2013 1,155,000 828,963 1,983,963
2014 1,210,000 776,988 1,986,988
2015 1,235,000 728,588 1,963,588
2016 - 2020 7,015,000 2,763,826 9,778,826
2021 - 2025 7,035,000 1,043,200 8,078,200
19,830,000$ 7,944,841$ 27,774,841$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 68 -
6. LONG-TERM LIABILITIES (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
$11,320,000 carry an interest rate of 5.82% and mature April 1, 2016.
The future debt service requirements on the 2006 Series A and Series B Tax Allocation Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2011 2,320,000$ 2,848,266$ 5,168,266$
2012 2,450,000 2,714,634 5,164,634
2013 2,595,000 2,573,269 5,168,269
2014 2,745,000 2,422,240 5,167,240
2015 2,905,000 2,262,482 5,167,482
2016 - 2020 15,430,000 9,229,753 24,659,753
2021 - 2025 21,015,000 3,542,788 24,557,788
2026 - 2030 4,410,000 348,035 4,758,035
53,870,000$ 25,941,467$ 79,811,467$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 69 -
6. LONG-TERM LIABILITIES (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 $32,600,000 Serial Bonds with interest rates
ranging from 3.50% to 5.00% payable semiannually on October 1 and April 1. Bond maturities
began April 1, 2008, and continue annually through 2018.
The future debt service requirements on the 2007 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2011 2,625,000$ 1,201,625$ 3,826,625$
2012 2,870,000 1,083,500 3,953,500
2013 2,955,000 940,000 3,895,000
2014 3,100,000 794,500 3,894,500
2015 3,230,000 686,000 3,916,000
2016 - 2018 10,640,000 1,078,500 11,718,500
25,420,000$ 5,784,125$ 31,204,125$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 70 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 2)
In July 2002, the Palm Desert Financing Authority issued $17,310,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 2) 2002 Series A. The Palm Desert Financing
Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to prepay
outstanding indebtedness and to fund various redevelopment capital projects within or of benefit to
the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable semi-
annually on February 1 and August 1.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 2) are as follows:
Year Ending
June 30, Principal Interest Total
2011 720,000$ 581,497$ 1,301,497$
2012 760,000 548,638 1,308,638
2013 795,000 509,763 1,304,763
2014 835,000 472,353 1,307,353
2015 870,000 436,113 1,306,113
2015 - 2019 5,010,000 1,533,734 6,543,734
2020 - 2023 3,670,000 281,250 3,951,250
12,660,000$ 4,363,348$ 17,023,348$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 71 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 2)
In March 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation
Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to fund various redevelopment capital
projects of the Agency in Project Area No. 2. Interest rates on the bonds vary from 4.5% to 5.0%
per annum payable semi-annually on February 1 and August 1, with principal maturing as follows:
$ 875,000 Serial Bonds August 1, 2023
910,000 Serial Bonds August 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
2011 -$ 769,006$ 769,006$
2012 - 769,006 769,006
2013 - 769,006 769,006
2014 - 769,006 769,006
2015 - 769,006 769,006
2016 - 2020 - 3,845,030 3,845,030
2021 - 2025 1,785,000 3,765,494 5,550,494
2026 - 2030 6,915,000 2,663,192 9,578,192
2031 - 2034 7,045,000 726,625 7,771,625
15,745,000$ 14,845,371$ 30,590,371$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 72 -
6. LONG-TERM LIABILITIES (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 consist of
$3,950,000 Serial Bonds with interest rates ranging from 3.90% to 4.90% payable semiannually on
August 1 and February 1. Bond maturities begin August 1, 2010, and continue annually through
2026. Term bonds in the amount of $1,910,000 carry an interest rate of 4.90% and mature August
1, 2031. Term bonds in the amount of $1,915,000 carry an interest rate of 5.00% and mature
August 1, 2035. The Series D bonds consist of $16,936,095 Capital Appreciation Bonds with a
reoffering yield ranging from 4.65% to 6.10%. Bond maturities 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, 2010 is $3,629,194.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 73 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Continued)
The future debt service requirements on the 2006 Series A Tax Allocation Refunding Revenue
Bonds, Series B Tax Allocation Revenue Capital Appreciation Bonds, Series C Revenue Bonds
and Series D Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area
No. 2) are as follows:
Year Ending
June 30, Principal Interest Total
2011 1,547,001$ 2,589,956$ 4,136,957$
2012 1,647,818 2,561,720 4,209,538
2013 1,808,558 2,628,779 4,437,337
2014 1,880,353 2,681,585 4,561,938
2015 1,949,239 2,733,786 4,683,025
2016 - 2020 7,490,552 12,445,214 19,935,766
2021 - 2025 10,454,379 14,017,066 24,471,445
2026 - 2030 11,799,082 13,051,939 24,851,021
2031 - 2035 15,396,513 10,589,477 25,985,990
2036 - 2037 9,737,896 2,184,947 11,922,843
63,711,391$ 65,484,469$ 129,195,860$
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3)
In July 2003, the Financing Authority issued $4,745,000 of Tax Allocation Revenue Bonds
(Project Area No. 3) 2003 Series. The proceeds of the bonds were disbursed to make a loan to the
Redevelopment Agency. The Agency will use the proceeds of the loan to fund various
redevelopment capital projects within or of benefit to the project area and to finance costs of
issuance of the bonds. The bonds bear interest at rates ranging from 3.000% to 5.125%. Principal
maturities for the serial bonds of $2,475,000 began April 1, 2004, and continue through
October 1, 2031. The term bonds in the amount of $2,270,000 are due in 2033.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 74 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3) (Continued)
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 3) are as follows:
Year Ending
June 30, Principal Interest Total
2011 105,000$ 189,848$ 294,848$
2012 110,000 186,225 296,225
2013 115,000 182,265 297,265
2014 120,000 177,953 297,953
2015 120,000 173,272 293,272
2016 - 2020 690,000 787,135 1,477,135
2021 - 2025 860,000 618,411 1,478,411
2026 - 2030 1,100,000 379,250 1,479,250
2031 - 2033 800,000 83,281 883,281
4,020,000$ 2,777,640$ 6,797,640$
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, 2010
See independent auditors’ report.
- 75 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 3 Tax Allocation Revenue Bonds 2006 Series A, Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital Appreciation
Bonds 2006 Series C (Continued)
The Series A bonds consist of $2,980,000 Serial Bonds with interest rates ranging from 4.00% to
4.75% payable semiannually on April 1 and October 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, 2010 is $776,564.
The future debt service requirements on the 2006 Series A Tax Allocation Revenue Bonds,
Series B Tax Allocation Revenue Capital Appreciation Bonds and Series C Subordinate Tax
Allocation Revenue Capital Appreciation Bonds (Project Area No. 3) are as follows:
Year Ending
June 30, Principal Interest Total
2011 160,871$ 570,204$ 731,075$
2012 198,934 562,141 761,075
2013 228,133 565,742 793,875
2014 254,760 571,715 826,475
2015 285,721 578,154 863,875
2016 - 2020 1,614,190 3,217,255 4,831,445
2021 - 2025 1,916,677 3,721,092 5,637,769
2026 - 2030 1,941,143 4,153,207 6,094,350
2031 - 2035 3,030,985 3,515,965 6,546,950
2036 - 2040 4,255,000 903,075 5,158,075
2041 985,000 49,250 1,034,250
14,871,414$ 18,407,800$ 33,279,214$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 76 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
1998 Series Tax Allocation Revenue Bonds (Project Area No. 4)
On March 1, 1998, the Palm Desert Financing Authority issued $11,020,000 of Tax Allocation
Revenue Bonds (Project Area No. 4) 1998 Series. The proceeds from the bonds were loaned to the
Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency
in Project Area No. 4. Interest rates on the bonds vary from 4.0% to 5.2% per annum payable semi-
annually on April 1 and October 1, with principal maturing annually on October 1. In July 2006,
$1,785,000 of the outstanding balance was advance refunded by the issuance of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A.
The future debt service requirements on the 1998 Series Tax Allocation Revenue Bonds (Project
Area No. 4) (after defeasance) are as follows:
Year Ending
June 30, Principal Interest Total
2011 130,000$ 426,665$ 556,665$
2012 135,000 420,635 555,635
2013 140,000 414,240 554,240
2014 145,000 407,506 552,506
2015 360,000 394,973 754,973
2016 - 2020 2,070,000 1,674,728 3,744,728
2021 - 2025 2,680,000 1,063,140 3,743,140
2026 - 2029 2,695,000 288,990 2,983,990
8,355,000$ 5,090,877$ 13,445,877$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 77 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2001 Series Tax Allocation Revenue Bonds (Project Area No. 4)
In November 2001, the Palm Desert Financing Authority issued $15,695,000 of Tax Allocation
Revenue Bonds (Project Area No. 4) 2001 Series. The proceeds from the bonds were loaned to the
Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency
in Project Area No. 4. Interest rates on the bonds vary from 3.5% to 4.9% per annum payable
semi-annually on April 1 and October 1, with principal maturing annually on October 1.
The future debt service requirements on the 2001 Series Tax Allocation Revenue Bonds (Project
Area No. 4) are as follows:
Year Ending
June 30, Principal Interest Total
2011 320,000$ 639,909$ 959,909$
2012 325,000 628,011 953,011
2013 345,000 614,805 959,805
2014 365,000 599,909 964,909
2015 375,000 584,038 959,038
2016 - 2020 2,150,000 2,648,851 4,798,851
2021 - 2025 2,670,000 2,091,529 4,761,529
2026 - 2030 4,125,000 1,357,320 5,482,320
2031 - 2032 3,220,000 156,480 3,376,480
13,895,000$ 9,320,852$ 23,215,852$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 78 -
6. LONG-TERM LIABILITIES (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, 2010 is $1,070,001.
The future debt service requirements on the 2006 Series A Tax Allocation Refunding Bonds and
Series B Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) are as follows:
Year Ending
June 30, Principal Interest Total
2011 435,000$ 662,658$ 1,097,658$
2012 554,233 657,612 1,211,845
2013 656,190 651,686 1,307,876
2014 779,182 635,195 1,414,377
2015 718,718 599,477 1,318,195
2016 - 2020 1,453,205 2,716,225 4,169,430
2021 - 2025 2,778,326 2,947,368 5,725,694
2026 - 2030 4,495,323 3,545,510 8,040,833
2031 - 2035 6,763,415 8,823,461 15,586,876
18,633,592$ 21,239,192$ 39,872,784$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 79 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
1998 Series Tax Allocation (Housing Set-Aside) Revenue Bonds
In January 1998, the Palm Desert Financing Authority issued $48,760,000 in Tax Allocation
(Housing Set-Aside) Revenue Bonds. The proceeds from the bonds were loaned to the Palm Desert
Redevelopment Agency to finance the acquisition of seven apartment complexes consisting of 725
rental units from the Housing Authority of the County of Riverside. Interest rates on the bonds vary
from 4.0% to 5.1% per annum payable semi-annually on April 1 and October 1, with principal
maturing annually on October 1. In February 2007, $38,740,000 of the outstanding balance was
advance refunded by the issuance of Tax Allocation (Housing Set-Aside) Refunding Revenue
Bonds Series 2007.
The future debt service requirements on the 1998 Series Tax Allocation (Housing Set-Aside)
Revenue Bonds (after defeasance) are as follows:
Year Ending
June 30, Principal Interest Total
2011 1,460,000$ 113,250$ 1,573,250$
2012 1,535,000 38,375 1,573,375
2,995,000$ 151,625$ 3,146,625$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 80 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2002 Series Tax Allocation (Housing Set-Aside) Revenue Bonds
In August 2002, the Palm Desert Financing Authority issued $12,100,000 of Tax Allocation
(Housing Set-Aside) Revenue Bonds 2002 Series. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to fund various low and moderate
housing capital projects of the Agency and to finance costs of issuance of the bonds. Interest rates
on the $6,555,000 serial bonds vary from 2.0% to 4.9% per annum payable semi-annually on
March 1 and October 1. Annual principal payments began October 1, 2003. The $5,545,000 term
bonds bear an interest rate of 5.0% per annum and mature October 1, 2031.
The future debt service requirements on the 2002 Series Tax Allocation (Housing Set-Aside)
Revenue Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2011 285,000$ 481,298$ 766,298$
2012 295,000 470,201 765,201
2013 305,000 458,348 763,348
2014 320,000 445,848 765,848
2015 330,000 432,848 762,848
2016 - 2020 1,890,000 1,934,347 3,824,347
2021 - 2025 2,390,000 1,436,798 3,826,798
2026 - 2030 3,065,000 762,125 3,827,125
2031 - 2032 1,455,000 73,625 1,528,625
10,335,000$ 6,495,438$ 16,830,438$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 81 -
6. LONG-TERM LIABILITIES (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 $86,155,000 Serial
Bonds with interest ranging from 4.00% to 5.00% payable semiannually on October 1 and April 1.
Bond maturities began October 1, 2007, and continue annually through 2027.
The future debt service requirements on the Tax Allocation (Housing Set-Aside) Refunding
Revenue Bonds Series 2007 are as follows:
Year Ending
June 30, Principal Interest Total
2011 3,135,000$ 3,606,438$ 6,741,438$
2012 3,265,000 3,478,438 6,743,438
2013 5,005,000 3,313,038 8,318,038
2014 5,235,000 3,082,063 8,317,063
2015 5,505,000 2,813,563 8,318,563
2016 - 2020 32,050,000 9,533,188 41,583,188
2021 - 2025 13,895,000 3,788,675 17,683,675
2026 - 2028 9,995,000 649,294 10,644,294
78,085,000$ 30,264,697$ 108,349,697$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 82 -
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 $2,015,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities will commence September 2, 2010,
and continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A
(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2011 80,000$ 59,250$ 139,250$
2012 95,000 56,625 151,625
2013 100,000 53,700 153,700
2014 100,000 50,700 150,700
2015 105,000 47,625 152,625
2016 - 2020 510,000 192,150 702,150
2021 - 2025 500,000 117,150 617,150
2026 - 2030 525,000 40,275 565,275
2,015,000$ 617,475$ 2,632,475$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 83 -
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 $1,136,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities will commence September 2, 2010,
and continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B
(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2011 21,000$ 33,765$ 54,765$
2012 49,000 32,715 81,715
2013 51,000 31,215 82,215
2014 52,000 29,670 81,670
2015 54,000 28,080 82,080
2016 - 2020 293,000 114,885 407,885
2021 - 2025 318,000 69,060 387,060
2026 - 2030 298,000 22,860 320,860
1,136,000$ 362,250$ 1,498,250$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 84 -
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 $5,225,000 Serial Variable Rate Bonds with interest payable on a
monthly basis based on a weekly rate period based on the USD-LIBOR-BBA 1-month interest rate.
The City has entered into a swap agreement to effectively fix the interest rate with a floor of 1.93%
and an interest rate cap of 5.25%. Principal payments are due on September 1 of each year. Bond
maturities will commence September 1, 2010, and continue annually through September 1, 2029.
The future debt service requirements computed at a variable rate of 0.349% at June 30, 2010 on the
Lease Revenue Bonds Series 2009 are as follows:
Year Ending
June 30, Principal Interest Total
2011 130,000$ 17,896$ 147,896$
2012 140,000 17,413 157,413
2013 145,000 16,909 161,909
2014 155,000 16,372 171,372
2015 170,000 15,787 185,787
2016 - 2020 1,030,000 68,724 1,098,724
2021 - 2025 1,440,000 46,846 1,486,846
2026 - 2030 2,015,000 16,253 2,031,253
5,225,000$ 216,200$ 5,441,200$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 85 -
6. LONG-TERM LIABILITIES (CONTINUED):
Notes Payable
County of Riverside
The Agency entered into a cooperation agreement with the County of Riverside on
December 15, 1987, regarding the adoption of the Agency’s Project Area No. 2. The agreement
states that the Agency was to retain 50% of the County’s share of tax increment. This was based on
the County’s share of tax increment being what would be allocated to the County in the absence of
a redevelopment project area being adopted.
This agreement called for the Agency to retain 50% of the County’s share until the gross increment
reached $3,500,000. The agreement further states that when gross increment reaches $10,000,000,
the Agency would repay the 50% of the retained County’s share of increment in equal payments
over a 10-year period.
The gross increment reached the $3,500,000 limit in fiscal year 1991-1992. The Agency reached
the $10,000,000 limit in fiscal year 2002-2003. The total amount owed to the County at
June 30, 2010, was $245,414. Annual payments on the note are $122,707.
Future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2011 122,707$ -$ 122,707$
2012 122,707 - 122,707
245,414$ -$ 245,414$
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, 2010, total estimated workers' compensation and
general liability claims payable, including a provision for incurred but not reported claims, were
$332,830 and $566,861, respectively.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 86 -
6. LONG-TERM LIABILITIES (CONTINUED):
Claims and Judgments Payable (Continued)
Changes in claims liabilities during the past two years are as follows:
June 30, 2009 June 30, 2010
Claims payable - Beginning of Year 441,313$ 777,851$
Incurred claims (including IBNR)
and changes in estimates 766,110 609,926
Claims payments (429,572) (488,086)
Claims payable - End of Year 777,851$ 899,691$
Compensated Absences Payable
There is no fixed payment schedule to pay the governmental fund types' outstanding liability of
$2,162,510 for compensated absences earned at June 30, 2010. Compensated absences are
generally liquidated by the General Fund.
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. $ 9,240
Pure Plant Water, Inc. - The present value of the minimum lease
payment on water purification equipment was capitalized at $10,752
using an interest rate of 5.15%. Lease is payable in 60 monthly
installments of $204 beginning September 1, 2005. 405
Commerca Leasing Corporation - The present value of the minimum
lease payment on the Uplink GPS system was capitalized at $569,046
using an interest rate of 6.00%. Lease is payable in 48 monthly
installments of 13,364 beginning September 15, 2006. 13,298
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 87 -
6. LONG-TERM LIABILITIES (CONTINUED):
Business-type Activities - Capital Leases (Continued)
Citicapital Commercial Corporation - The present value of the
minimum lease payment on the Club Car Golf Carts was capitalized at
$663,256 using an interest rate of 5.220%. Lease is payable in 48
monthly installments of $12,249 beginning October 1, 2006. There is
a balloon payment at the end of the lease of $165,300, which will be
paid on October 1, 2010. $ 187,524
Wells Fargo Financial Leasing, Inc. - The present value of the
minimum lease payment on the new golf course equipment was
capitalized at $1,325,933 using an interest rate of 3.720%. Lease is
payable in 48 monthly installments of $29,680 beginning
December 15, 2006. 117,806
Present value of net minimum lease payments 328,273
Less: current portion (321,798)
$ 6,475
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, 2010:
Year Ending Minimum
June 30, Lease Payments
2011 325,465$
2012 3,376
2013 3,376
2014 281
332,498
Less: amounts representing interest (4,225)
Present value of net minimum lease
payments 328,273$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 88 -
6. LONG-TERM LIABILITIES (CONTINUED):
Business-type Activities - Capital Leases (Continued)
The assets acquired through capital lease are as follows:
Machinery and equipment $ 2,887,212
Less: accumulated depreciation (2,684,602)
$ 202,610
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
1 Month USD-LIBOR-BBA rate for that period.
Details on the swap agreement are as follows:
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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 89 -
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT (CONTINUED):
Summary of Activities in Cash Flow Hedging Derivative Instrument:
Fair Value Fair Value
Notional at Change in at
Amount June 30, 2009 Fair Value June 30, 2010
$ 5,225,000 $ - $ 163,286 $ 163,286
As of June 30, 2010, the fair value of $163,286 is reported as a deferred asset from derivative
instruments and a liability from derivative instruments in the Statements of Net Assets.
Credit Risk:
As of June 30, 2010, 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 becomes 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 A1
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 1 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%.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 90 -
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT (CONTINUED):
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, 2010
the swap had a negative fair value of $163,286.
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, 2010, 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
2011 $ 130,000 $ 17,896 $ 147,896 $ 98,760 $ 228,760
2012 140,000 17,413 157,413 96,090 236,090
2013 145,000 16,909 161,909 93,308 238,308
2014 155,000 16,372 171,372 90,350 245,350
2015 170,000 15,787 185,787 15,261 185,261
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 91 -
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 $8,683,501 held by NRS and
ICMA of the 457 Plan are not reflected in the City’s financial statements.
9. AMOUNTS DUE UNDER REDEVELOPMENT AGENCY PASS-THROUGH AGREEMENTS:
Property taxes related to the incremental increase in assessed values after the adoption of the
Redevelopment Plan are, except where otherwise provided by specific agreement, allocated to the
Agency. All taxes on the "frozen" assessed valuation of the property are allocated to the City and
other taxing agencies. The Agency has entered into various pass-through agreements with other tax
agencies to allocate their tax increment resulting from the increase in assessed values after the
adoption of the Redevelopment Plan.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 92 -
9. AMOUNTS DUE UNDER REDEVELOPMENT AGENCY PASS-THROUGH AGREEMENTS
(CONTINUED):
At June 30, 2010, the Agency was holding $60,678,180 in trust on behalf of other taxing agencies
related to specific pass-through agreements as detailed below:
Balance at Balance at
July 1, 2009 Additions Payments June 30, 2010
Riverside County Capital Improvement 19,100,688$ * 20,693,584$ 15,887,409$ 23,906,863$
Riverside County - Schools 820,792 789,297 826,486 783,603
Riverside County - Library 9,789,662 1,849,126 24,558 11,614,230
Riverside County - Fire 3,280,832 3,180,860 3,284,204 3,177,488
Coachella Valley Mosquito
Abatement District 676,989 643,523 677,243 643,269
Coachella Valley Water District 9,713,483 1,289,051 30,074 10,972,460
Desert Community College District 1,421,245 1,368,077 1,445,317 1,344,005
Desert Sands Unified School District 6,004,686 * 5,926,865 6,274,284 5,657,267
Coachella Valley Recreation
and Park District 511,403 486,412 512,268 485,547
Coachella Valley Resources District 4,743 4,969 4,774 4,938
Palm Springs Unified School District 377,837 376,618 377,837 376,618
County Juvenile Health District 980,811 983,252 914,148 1,049,915
Other Deposits 602,298 313,177 253,498 661,977
53,285,469$ 37,904,811$ 30,512,100$ 60,678,180$
Entity
* The Redevelopment Agency has used bond proceeds for the construction of capital
improvements, which benefit these entities. These entities have agreements with the
Redevelopment Agency, which will allow it to use a portion of these amounts to offset debt
service costs.
10. 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 93 -
10. PENSION PLAN (CONTINUED):
b. Funding Policy:
Participants are required to contribute 8% of their annual covered salary. The City contributes
7% of the required employee contribution on their behalf and the employee contributes the
remaining 1%. The City is required to contribute at an actuarially determined rate; the rate for
fiscal year 2009-2010, was 19.803% for non-safety employees of annual covered payroll. The
contribution requirements of plan members and the City are established and may be amended
by PERS.
c. Annual Pension Cost:
For 2010, the City's annual pension cost of $3,880,525 for PERS was equal to the City's
required and actual contributions. The required contribution was determined as part of the
June 30, 2007, actuarial valuation using the entry age normal actuarial cost method. The
actuarial assumptions included: a) 7.75% investment rate of return (net of administrative
expenses), b) projected annual salary increases of 3.25% to 14.45% depending on age, service
and type of employment, and c) 3.25% per year cost-of-living adjustments. Both a) and
b) included an inflation component of 3.00%. The actuarial value of PERS’ assets was
determined using techniques that smooth the effects of short-term volatility in the market value
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
6/30/08 $ 3,680,511 100% $ -
6/30/09 4,106,308 100% -
6/30/10 3,880,525 100% -
e. Schedule of Funding Progress for PERS:
As of June 30, 2008, the most recent actuarial valuation date, the plan was 76.22% funded.
The actuarial accrued liability for benefits was $67.98 million, and the actuarial value of assets
was $51.81 million, resulting in an unfunded actuarial accrued liability (UAAL) of
$16.17 million. The covered payroll (annual payroll of active employees covered by the plan)
was $14.61 million, and the ratio of the UAAL to the covered payroll was 110.67%.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 94 -
10. PENSION PLAN (CONTINUED):
e. Schedule of Funding Progress for PERS (Continued):
The schedule of funding progress, presented as required supplementary information following
the notes to basic financial statements, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
11. FUND BALANCE:
Reserves of Fund Balance
In the fund financial statements, reserves segregate portions of fund balances that are either not
available or have been earmarked for specific purposes. The various reserves established as of
June 30, 2010, were as follows:
RDA
Low Income RDA Other
General Housing Capital Governmental
Fund Special Revenue Projects Funds Total
Encumbrances 1,841,911$ 243,423$ 3,413,324$ 2,416,999$ 7,915,657$
Inventory 33,262 - - - 33,262
Continuing
appropriations 40,000 9,517,625 59,060,734 39,447,172 108,065,531
Prepaid costs
and deposits 602,960 - 26,813 146 629,919
Reserve requiremen - - - 36,366 36,366
Property held
for resale - 855,224 - - 855,224
Debt service 2,162,510 - - - 2,162,510
Loans and notes
receivable 1,859,739 7,328,010 1,600,000 4,984,182 15,771,931
Advances 7,181,000 17,821,288 - 13,419,000 38,421,288
Totals 13,721,382$ 35,765,570$ 64,100,871$ 60,303,865$ 173,891,688$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 95 -
11. FUND BALANCE (CONTINUED):
Reserves of Fund Balance (Continued)
Reserved for Encumbrances - These reserves represent the portion of purchase orders awarded for
which the goods or services had not yet been received at June 30, 2010. Although all
appropriations lapse at year-end, even if encumbered, the City intends either to honor the contracts
in progress or to cancel them. Reserve for encumbrances is rebudgeted on July 1, by Council
action.
Reserved for Inventory - This reserve is to restrict fund balance so that it will not be considered as
current funds available.
Reserved for Continuing Appropriations - These reserves are for appropriations for capital
projects, which are unexpended as of June 30, 2010, and are carried forward as continuing
appropriations to be expended in 2010-2011.
Reserved for Prepaid Costs and Deposits - These reserves represent contractual obligations for
cash payments made before June 30, 2010, but not recognized as an expenditure until after July 1,
2010, and noncurrent portions of deposits.
Reserved for Reserve Requirement - These reserves are set up for the maintenance requirements
for the housing apartments.
Reserved for Property Held for Resale - This reserve is for property held for resale and has been set
aside to indicate that these funds are not available to finance current expenditures.
Reserved for Debt Service - These reserves for Debt Service represent reserves accumulated by the
City for compensated absences.
Reserved for Loans and Notes Receivables - These reserves are set up to reflect the noncurrent
portion of receivables so that they will not be considered as current funds available.
Reserved for Advances - These reserves are set up to reflect the advances to the Redevelopment
Agency so that they will not be considered as current funds available.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 96 -
11. FUND BALANCE (CONTINUED):
Reserves of Fund Balance (Continued)
Fund designations are established to indicate tentative plans for financial resource utilization in a
future period. The City’s designations at June 30, 2010 are as follows:
RDA RDA RDA RDA Other
Prop A Low Income Financing Debt Capital Governmental
Fire Tax Housing Authority Service Projects Funds Total
Special revenue designation:
Fire protection services 2,019,849$ -$ -$ -$ -$ -$ 2,019,849$
Low income housing - 42,189,106 - - - 1,787,271 43,976,377
Traffic safety - - - - - 16,956 16,956
Street related purposes - - - - - 211,410 211,410
Public facilities - - - - - 368,371 368,371
Drainage - - - - - 259,967 259,967
Park development - - - - - 1,588,629 1,588,629
Recycling - - - - - 5,990,825 5,990,825
Public safety - - - - - 10,184 10,184
El Paseo promotion - - - - - 32,298 32,298
Air quality - - - - - 275,990 275,990
City wide promotion - - - - - 1,492 1,492
Community maintenance - - - - - 1,261,079 1,261,079
Child care programs - - - - - 120,213 120,213
Golf course maintenance - - - - - 2,196,995 2,196,995
Fire facilities - - - - - 29,955 29,955
Energy program loans - - - - - 3,851,362 3,851,362
Total special revenue designation 2,019,849 42,189,106 - - - 18,002,997 62,211,952
Debt service - - 16,154,438 10,015,973 - 166,494 26,336,905
Capital outlay - - - - 47,975,459 30,208,343 78,183,802
Totals 2,019,849$ 42,189,106$ 16,154,438$ 10,015,973$ 47,975,459$ 48,377,834$ 166,732,659$
Designated for special revenue - These funds are for future use for specific programs listed above.
Designated for debt service - This designation is for resources accumulated for payment of
principal and interest on long-term debt.
Designated for capital outlay - This designation represents resources accumulated for capital
projects except for those financed by special revenue and enterprise funds.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 97 -
11. FUND BALANCE (CONTINUED):
Reserves of Fund Balance (Continued)
Net Asset Restatements
Net assets of the governmental activities – Internal Service Funds have been restated as follows:
Net assets, July 1, 2009, as previously reported $ 6,208,706
To adjust capital assets
Inadvertently not transferred in prior year 94,297
Net assets, July 1, 2009, as restated $ 6,303,003
12. RISK MANAGEMENT:
a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement:
The City is a member of the California Joint Powers Insurance Authority (Insurance Authority).
The Insurance Authority is composed of 122 California public entities and is organized under a
joint powers agreement pursuant to California Government Code Section 6500 et. seq. The
purpose of the Insurance 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 Insurance Authority’s pool
began covering claims of its members in 1978. Each member government has an elected
official as its representative on the Board of Directors. The Board operates through a
9-member Executive Committee.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 98 -
12. RISK MANAGEMENT (CONTINUED):
b. Self-Insurance Programs of the Authority:
General Liability
Each member government pays a primary deposit to cover estimated losses for a fiscal year
(claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective
deposit computation is then made for each open claims year. Claims are pooled separately
between police and non-police. Costs are allocated to members by the following methods
within each of the four layers of coverage: (1) the first $30,000 of each occurrence is charged
directly to the member’s primary deposit; (2) costs from $30,000 to $750,000 and the loss
development reserves associated with losses up to $750,000 are pooled based on the member’s
share of losses under $30,000; (3) losses from $750,000 to $5,000,000 and the associated loss
development reserves are pooled based on payroll; (4a) costs of covered claims from
$5,000,000 to $10,000,000 are paid under reinsurance policies and are subject to a $2,500,000
annual aggregate deductible; (4b) costs of covered claims from $10,000,000 to $50,000,000 are
covered through excess insurance policies; (4c) costs of covered claims for subsidence losses
are paid by excess insurance with a sub-limit of $25,000,000 per occurrence per member. This
$25,000,000 subsidence sub-limit is composed of $10,000,000 in reinsurance and $15,000,000
in excess insurance. The excess insurance layer has a $15,000,000 annual aggregate. The costs
associated with 4a, 4b, and 4c are estimated using actuarial models and pre-funded as part of
the primary retrospective deposits.
The overall policy limit for each member including all layers of coverage is $50,000,000 per
occurrence.
Workers' Compensation
The City also participates in the workers compensation pool administered by the Insurance
Authority. Each member pays a primary deposit to cover estimated losses for a fiscal year
(claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective
deposit computation is then made for each open claims year. Claims are pooled separately
between public safety and non-public safety. Costs are allocated to members by the following
methods within each of the four layers of coverage: (1) the first $50,000 of each loss is charged
directly to the member’s primary deposit; (2) losses from $50,000 to $100,000 and the loss
development reserve associated with losses up to $100,000 are pooled based on the member’s
share of losses under $50,000; (3) losses from $100,000 to $2,000,000 and the loss
development reserves associated with those losses are pooled based on payroll; (4) losses from
$2,000,000 up to statutory limits are paid under an excess insurance policy. Protection is
provided per statutory liability under California Workers’ Compensation law.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 99 -
12. RISK MANAGEMENT (CONTINUED):
b. Self-Insurance Programs of the Authority (continued):
Workers' Compensation (continued)
Employer’s liability losses are pooled among members to $2,000,000, coverage from
$2,000,000 to $4,000,000 is purchased as part of an excess insurance policy, and losses from
$4,000,000 to $10,000,000 are pooled among members.
c. Purchased Insurance:
Property Insurance
The City of Palm Desert participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies. The City
of Palm Desert property is currently insured according to a schedule of covered property
submitted by the City of Palm Desert to the Authority. The City’s property currently has
all-risk property insurance protection in the amount of $184,584,823. There is a $5,000
deductible per occurrence except for non-emergency vehicle insurance which has $1,000
deductible. Premiums for the coverage are paid annually and are not subject to retroactive
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 Insurance 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 Insurance Authority.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 100 -
12. RISK MANAGEMENT (CONTINUED):
d. Adequacy of Protection:
During the past three fiscal (claims) years, none of the above programs of protection have had
settlements or judgments that exceeded pooled or insured coverage. There have been no
significant reductions in pooled or insured liability coverage from coverage in the prior year.
13. DEFERRED REVENUES AND UNEARNED REVENUES:
Major Governmental Funds
General Fund:
On March 13, 1997, the Redevelopment Agency (Agency) purchased land from the City for the
purpose of developing a second golf course financed by a note in the amount of $2,055,000. The
note has no specific due date and carries an interest rate that equates the rate of return the City
receives on its investment with the Local Agency Investment Fund (0.528% at June 30, 2010).
Recognition of the revenue from the sale has been deferred until it becomes available.
On March 13, 1997, the City entered into an agreement; along with amendments on June 4, 1997
and May 18, 2004; with the Palm Desert Recreational Facilities Corporation (Corporation) for the
use of property at the City's Golf Resort (Desert Willow). Payment is due when the Corporation's
revenues exceed its expenses. At June 30, 2010, 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 $417,981 for sales
tax has been deferred.
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, 2010, $35,669 in interest has been accrued.
Recognition of the interest revenue has been deferred until it becomes due.
Other amounts reported as unearned revenues include $3,038 of unearned rents.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 101 -
13. DEFERRED REVENUES AND UNEARNED REVENUES (CONTINUED):
Major Governmental Funds (Continued)
RDA Low Income Housing Special Revenue Fund:
Uncollected interest of $36,493 due from the Palm Desert Development Company has been
deferred.
Other amounts reported as unearned revenues include $6,796 for damages on purchased home.
Other Governmental Funds:
Special Revenue Funds:
Measure A fund has $26,222 of unearned revenue representing a deposit from a developer for
street improvements.
Loans receivable in the amount of $15,092 for home improvement loans are recorded as deferred in
the Community Development Block Grant Fund.
$75,108 of grant funds are deemed unearned until expenditures are incurred in the Recycling Fund.
$2,392 of grant funds are deemed unearned until expenditures are incurred in the Public Safety
Police Grants Fund.
Accrued interest of $206,239 on loans receivable through the City’s EIP Program (see Note 3).
Prepaid rents in the amount of $11,364 from the eight apartment complexes operated by the Palm
Desert Housing Authority will be recognized as revenue when earned.
Debt Service Funds:
Assessment receivables in the amount of $1,569,860 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 102 -
13. DEFERRED REVENUES AND UNEARNED REVENUES (CONTINUED):
Other Governmental Funds (Continued):
Capital Project Funds:
$689,586 has been deferred for capital reimbursements due from developers for work completed by
the City on their behalf.
$128,967 of unearned revenue represents deposits from developers for street improvements, which
have not been spent as of June 30, 2010.
Business-type Activities
The balance of $196,934 represents the unused portions of prepaid golf fees, value of unredeemed
gift certificates and unearned rent.
Component Unit
The balance of $32,719 represents the unused portions of prepaid banquets.
14. OTHER POST-EMPLOYMENT BENEFITS:
a. Plan Description:
In addition to the pension benefits described in Note 10, 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 103 -
14. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (continued):
Employees Hired Prior to January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or
after age 50 with at least 10 consecutive years of service with the City. Eligible employees
must be covered under the CalPERS Health Plan at the time of retirement and elect to
participate in the stipend program within 30 days of retirement. The City’s contribution
towards the coverage is based on years of service as follows:
Consecutive Years of Service City’s Contribution
With the City at Retirement Percentage
10 years of service 50%
11 years of service 55%
12 years of service 60%
13 years of service 65%
14 years of service 70%
15 or more years of service 75%
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 104 -
14. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (Continued):
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 ($101 in 2009 and $105 in 2010) for these employees.
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, 2010, the City
contributed $644,603 to the plan, which included $400,420 of the annual required contribution
and $244,183 pay-as-you-go premiums. The purpose of these contributions is to cover the
required City contribution rate of 6.60% of annual covered payroll (annual payroll of active
employees covered by the plan) and to prefund benefits. As a result, the City calculated and
recorded a Net OPEB Asset, representing the difference between the Annual Required
Contribution (ARC) and actual contributions, as presented below:
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 105 -
14. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
b. Funding Policy (Continued):
Annual required contribution (ARC) 400,420$
Interest on Net OPEB obligation (asset) (540,150)
Adjustment to ARC 449,886
Annual OPEB cost 310,156
Contribution made (644,603)
Increase in Net OPEB obligation (asset) (334,447)
Net OPEB obligation (asset) at June 30, 2009 (6,970,610)
Net OPEB obligation (asset) at June 30, 2010 (7,305,057)$
The contribution rate of 5.20% is based on the ARC of $400,420, 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 2010, the City’s annual OPEB cost (expense) was $310,156. 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)
6/30/2008 $ 759,139 $ 7,428,386 979% $ (6,669,247)
6/30/2009 312,285 613,648 197% (6,970,610)
6/30/2010 310,156 644,603 208% (7,305,057)
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 106 -
14. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
d. Funded Status and Funding Progress:
As of July 1, 2009, the most recent actuarial valuation date, the plan was 84.04% funded. The
actuarial accrued liability for benefits was $8.23 million, and the actuarial value of assets was
$6.92 million, resulting in an unfunded actuarial accrued liability (UAAL) of $1.31 million.
The covered payroll (annual payroll of active employees covered by the plan) was
$12.45 million, and the ratio of the UAAL to the covered payroll was 10.55%.
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 July 1, 2009 actuarial valuation, the entry age normal actuarial cost method was used.
The actuarial assumptions included a 7.75% investment rate of return (net of administrative
expenses) and an initial annual healthcare cost trend rate of 10%, reduced by decrements to an
ultimate rate of 5% after ten years. A 3.25% annual rate of increase in future salaries is also
assumed in the valuation. The City’s unfunded actuarial accrued liability will be amortized as
a level percentage of projected covered payroll on a closed basis. The amortization period at
July 1, 2009, was twenty-eight years.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 107 -
15. SPECIAL ASSESSMENT DEBT:
Below is a summary of the changes in the special assessment bonds payable:
Balance at Payments and Balance at
June 30, 2009 Additions Reductions June 30, 2010
2003 Assessment Revenue Bonds 3,310,000$ -$ (205,000)$ 3,105,000$
AD 98-1 Limited Obligation
Refunding Bonds 780,000 - (80,000) 700,000
CFD 2005-1 Special Tax
Bonds Series 2006A 67,090,000 - (1,165,000) 65,925,000
AD 2004-2 Limited Obligation
Improvement Bonds 29,430,000 - (505,000) 28,925,000
2008 Special Tax Refunding Bonds 9,270,000 - (855,000) 8,415,000
109,880,000$ -$ (2,810,000)$ 107,070,000$
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 $4,423,000 in 2003 Assessment
Revenue Bonds. The proceeds were used to purchase three series of limited obligation
improvement bonds issued by the City in connection with the financing and refinancing of certain
improvements of benefit to property within the City’s Assessment District No. 94-2 (Sunterrace),
Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Undergrounding Assessment
District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide
funds for public improvements in the respective assessment districts.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 108 -
15. SPECIAL ASSESSMENT DEBT (CONTINUED):
2003 Assessment Revenue Bonds (continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2011 190,000$ 150,200$ 340,200$
2012 200,000 142,200 342,200
2013 210,000 133,275 343,275
2014 220,000 123,380 343,380
2015 235,000 112,570 347,570
2016 - 2020 845,000 432,348 1,277,348
2021 - 2025 640,000 231,822 871,822
2026 - 2029 565,000 62,484 627,484
3,105,000$ 1,388,279$ 4,493,279$
As of June 30, 2010, the principal amounts to be repaid by each assessment district to pay off the
loans from the Financing Authority are as follows:
Assessment District 94-2 370,000$
Assessment District 94-3 850,000
Assessment District 01-1 1,890,000
3,110,000$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 109 -
15. SPECIAL ASSESSMENT DEBT (CONTINUED):
Assessment District 98-1 Limited Obligation Refunding Improvement Bonds
The bonds were issued in an original amount of $2,955,000 in February 2004, to redeem and
defease the outstanding limited obligation improvement bonds of Assessment District No. 98-1,
which were issued in 1998. The bonds are secured by unpaid assessments on parcels within the
District.
Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the
scheduled debt service requirements are to be included on the regular county tax bills for the
assessed parcels for which there are unpaid assessments. Interest rates vary from 1.5% to 5.1%
with interest payable semi-annually on March 2 and September 2, with principal maturing annually
on September 2.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2011 65,000$ 30,799$ 95,799$
2012 70,000 28,180 98,180
2013 70,000 25,310 95,310
2014 75,000 22,171 97,171
2015 75,000 18,768 93,768
2016 - 2019 345,000 35,431 380,431
700,000$ 160,659$ 860,659$
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, 2010
See independent auditors’ report.
- 110 -
15. 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 $50,000,000, from a pledge of net taxes derived
from special taxes to be levied by the District on real properties within the boundaries of the
District from the net proceeds of any foreclosure actions brought following delinquency in the
payment of the special taxes, and from amounts held in certain funds under the indenture. Interest
rates vary from 3.875% to 5.20% with interest payable semi-annually on March 1 and September
1, with principal maturing annually on September 1.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2011 1,210,000$ 3,373,361$ 4,583,361$
2012 1,260,000 3,320,818 4,580,818
2013 1,310,000 3,264,628 4,574,628
2014 1,370,000 3,204,685 4,574,685
2015 1,430,000 3,140,658 4,570,658
2016 - 2020 8,250,000 14,585,598 22,835,598
2021 - 2025 10,505,000 12,266,414 22,771,414
2026 - 2030 13,520,000 9,150,445 22,670,445
2031 - 2035 17,530,000 5,036,478 22,566,478
2036 - 2038 9,540,000 609,616 10,149,616
65,925,000$ 57,952,701$ 123,877,701$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 111 -
15. 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 $14,925,000 carry an interest rate of 5.10% and mature September 2, 2037.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2011 525,000$ 1,407,160$ 1,932,160$
2012 545,000 1,385,760 1,930,760
2013 570,000 1,363,175 1,933,175
2014 590,000 1,339,100 1,929,100
2015 615,000 1,313,488 1,928,488
2016 - 2020 3,520,000 6,118,229 9,638,229
2021 - 2025 4,420,000 5,185,058 9,605,058
2026 - 2030 5,635,000 3,932,824 9,567,824
2031 - 2035 7,220,000 2,304,691 9,524,691
2036 - 2038 5,285,000 413,228 5,698,228
28,925,000$ 24,762,713$ 53,687,713$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 112 -
15. 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 $16,260,000 principal amount of the Palm Desert Financing
Authority 1997 Revenue Bonds. These bonds were issued pursuant to the provisions of the Mello-
Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5,
of the Government Code of the State of California.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2011 880,000$ 274,920$ 1,154,920$
2012 905,000 247,026 1,152,026
2013 935,000 217,813 1,152,813
2014 965,000 186,930 1,151,930
2015 1,000,000 154,008 1,154,008
2016 ‐ 2020 3,550,000 270,699 3,820,699
2021 180,000 3,600 183,600
8,415,000$ 1,354,995$ 9,769,995$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 113 -
15. SPECIAL ASSESSMENT DEBT (CONTINUED):
Bond Reserve Requirements
At June 30, 2010, the fund balance reserve requirements and actual reserve balances were as
follows:
Requirement Actual
Assessment District 98-1 70,000$ 142,157$
2003 Financing Authority Revenue Bonds 284,094 337,593
CFD 2005-1 Special Tax Bonds 4,583,361 4,608,891
Assessment District 29 1,933,175 1,945,358
2008 Special Tax Refunding Bonds 841,500 1,093,500
16. 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, 2010, the outstanding amount was
$19,185,000.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
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16. CONDUIT DEBT OBLIGATIONS (CONTINUED):
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, 2010,
the outstanding amount was $70,510,000.
17. OTHER DISCLOSURES:
The Palm Desert Recreational Facilities Corporation has a net asset deficit of $966,656, 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.
For the year ended June 30, 2010, expenditures exceeded appropriations for the Public Safety
Police Grants Special Revenue Fund by $28,522. These over expenditures resulted from prior year
budgeted expenditures which were not spent until this fiscal year and not budgeted in the current
fiscal year.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
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18. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS:
Construction Commitments
Current
Year Spent Remaining
Spent to Date Commitment
Parks and recreation 114,803$ 170,974$ 170,690$
Low income housing 142,204 253,802 287,667
Street resurfacing 18,069 18,069 2,114,589
Building construction 195,645 216,709 237,816
Street improvements 705,309 1,063,347 680,131
Freeway on-ramp improvements 263,028 547,801 219,231
Aquatic Center construction 358,034 358,034 453,150
Residential street construction 9,241 1,195,449 873,110
Drainage - 114,532 58,020
1,806,333 3,938,717 5,094,404
Miscellaneous non construction 701,330 1,025,743 2,837,068
2,507,663 4,964,460 7,931,472
Project
19. COMMITMENTS AND CONTINGENCIES:
SERAF Contingency:
SERAF Contributions for the Fiscal Years 2009-2010 and 2010-2011
Pursuant to AB 26 4x, a budget trailer bill, California redevelopment agencies were required to
make SERAF contributions totaling $1.7 billion for the fiscal year 2009-2010 and $350 million for
the fiscal year 2010-2011. Under AB 26 4x, agencies may borrow a portion of the required
contributions from their low and moderate income housing fund. Alternatively, sponsoring
governmental agencies (the cities or counties) may elect to pay the SERAF contributions on behalf
of their redevelopment agencies. On October 20, 2009, the CRA filed a class action lawsuit in
behalf of all California redevelopment agencies, again challenging the SERAF obligations as
unconstitutional. On May 13, 2010, the Superior Court found in favor of the State relative to the
class action suit.
The Agency’s SERAF contributions for fiscal year 2009-2010 was $25,526,215. The Agency
borrowed funds from the low and moderate income housing fund to make this payment. The
Agency’s SERAF contribution for fiscal year 2010-2011 will be $5,225,397.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
See independent auditors’ report.
- 116 -
19. COMMITMENTS AND CONTINGENCIES (CONTINUED):
Contingencies:
The City is a defendant in several pending lawsuits of a nature common to many similar
jurisdictions. City management estimates that the potential claims against the City not covered by
insurance resulting from such litigation would not materially affect the financial position of the
City.
The City incurs various costs under federal and state grant reimbursement programs and records
the related revenue and receivables for grant claims. Such grant claims are subject to final audit by
federal and state agencies.
Schedule 1
Note 10e
Entry Age
ormal
Accrued Actuarial Value Unfunded UAAL as a
Actuarial Liabilit of Assets AAL Funde Covere % of Covere
Valuation (AAL) (AVA) (UAAL) Ratio Payrol Payrol
Date (a) (b) (a) - (b) (b)/(a) (c) [(a)-(b)]/(c)
06/30/06 52,739,452$ 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%
Note 14d
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%
See independent auditors' report.
For the year ended June 30, 2010
- 117 -
CalPERS DEFINED BENEFIT PLA
OTHER POST-EMPLOYMENT BENEFIT PLA
CITY OF PALM DESERT
SCHEDULES OF FUNDING PROGRESS
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Schedule 2
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 74,350,672$ 74,350,672$ 74,350,672$ -$
Resources (inflows):
Taxes 38,845,000 35,345,000 34,593,131 (751,869)
Licenses and permits 650,000 650,000 701,941 51,941
Intergovernmental revenues 2,486,000 2,486,000 2,677,198 191,198
Charges of services 620,000 620,000 618,440 (1,560)
Fines and forfeitures 110,000 110,000 126,327 16,327
Investment earnings 1,145,000 1,145,000 1,766,868 621,868
Miscellaneous 540,000 540,000 836,849 296,849
Transfers from other funds 2,586,000 2,586,000 4,747,672 2,161,672
Total resources 46,982,000 43,482,000 46,068,426 2,586,426
Charges to appropriations (outflows):
Current:
General governmen 13,346,962 13,275,987 12,895,030 380,957
Public safety 18,617,307 17,534,427 17,427,684 106,743
Public works 8,990,909 9,729,368 7,573,875 2,155,493
Parks, recreation and culture 5,382,368 4,685,750 4,534,505 151,245
Capital outla - 68,718 68,718 -
Transfers to other funds 620,000 410,000 350,318 59,682
Total charges to appropriations 46,957,546 45,704,250 42,850,130 2,854,120
Excess of resources over (under)
charges to appropriations 24,454 (2,222,250) 3,218,296 5,440,546
Fund balance, June 30 74,375,126 72,128,422 77,568,968 5,440,546
See independent auditors' report and note to required supplementary information.
CITY OF PALM DESERT
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For the year ended June 30, 2010
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Schedule 3
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 3,071,232$ 3,071,232$ 3,071,232$ -$
Resources (inflows):
Taxes 5,270,000 5,270,000 5,264,673 (5,327)
Special assessments collecte 2,039,000 2,039,000 2,056,461 17,461
Intergovernmental revenues 716,212 716,212 765,311 49,099
Investment earnings 50,000 50,000 48,404 (1,596)
Miscellaneous - - 9,352 9,352
Total resources 8,075,212 8,075,212 8,144,201 68,989
Charges to appropriations (outflows):
Current:
Public safety 9,577,107 9,577,107 9,194,223 382,884
Capital outla 54,000 163,175 1,361 161,814
Total charges to appropriations 9,631,107 9,740,282 9,195,584 544,698
Excess of resources over (under)
charges to appropriations (1,555,895) (1,665,070) (1,051,383) 613,687
Fund balance, June 30 1,515,337 1,406,162 2,019,849 613,687
See independent auditors' report and note to required supplementary information.
CITY OF PALM DESERT
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For the year ended June 30, 2010
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX SPECIAL REVENUE FUND
See independent auditors’ report.
- 121 -
CITY OF PALM DESERT
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2010
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:
Prop A Fire Tax
Traffic Safety
Gas Tax
Housing Mitigation Fees
Community Development Block Grant
Public Safety Police Grants
El Paseo Assessment District
City-Wide Business License
Landscape and Lighting District No. 1-17
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GENERAL FUND
The General Fund is used to account for all financial resources traditionally associated with
government, except those required to be accounted for in another fund. It is the primary operating fund
that includes the operating budgets for all the departments and the majority of the City’s tax revenues.
Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 74,350,672$ 74,350,672$ 74,350,672$ -$
Resources (inflows):
Taxes:
Property taxes 5,510,000 5,510,000 4,969,407 (540,593)
Property transfer tax 500,000 500,000 455,580 (44,420)
Property tax in lie 3,740,000 3,740,000 3,738,160 (1,840)
Timeshare mitigation fee 900,000 900,000 1,483,220 583,220
Sales tax 15,900,000 13,600,000 13,273,793 (326,207)
Business license tax 1,300,000 1,300,000 1,071,997 (228,003)
Job valuation fees 25,000 25,000 14,238 (10,762)
Transient occupancy tax 8,000,000 6,800,000 6,848,132 48,132
Franchises 2,950,000 2,950,000 2,705,902 (244,098)
Penalties and interest on taxes 20,000 20,000 32,702 12,702
Total Taxes 38,845,000 35,345,000 34,593,131 (751,869)
For the year ended June 30, 2010
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
CITY OF PALM DESERT
Licenses and Permits:
Building permit 550,000 550,000 570,041 20,041
Grading - - 5,811 5,811
Valet parking permits - - 300 300
Encroachment permits 50,000 50,000 65,157 15,157
Miscellaneous permits - - 1,505 1,505
Business regulatory permit 50,000 50,000 59,127 9,127
Total Licenses and Permits 650,000 650,000 701,941 51,941
Intergovernmental Revenues:
Federal grants - - 9,233 9,233
State grants - - - -
Motor vehicle in-lieu fees 150,000 150,000 151,489 1,489
Monthly parking bal - - 28,098 28,098
Reimbursement RDA costs 2,000,000 2,000,000 1,772,591 (227,409)
Other reimbursements 336,000 336,000 715,787 379,787
Total Intergovernmental Revenues 2,486,000 2,486,000 2,677,198 191,198
See independent auditors' report.(Continued)
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Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Resources (inflows) (Continued):
Charges for Services:
Subdivision fees 250,000$ 250,000$ 183,719$ (66,281)$
Zoning fees 50,000 50,000 107,647 57,647
Plan check fees 300,000 300,000 224,325 (75,675)
Sale of maps and publications 10,000 10,000 28,073 18,073
Microfilm fees 10,000 10,000 11,068 1,068
Other fees - - 63,608 63,608
Total Charges for Services 620,000 620,000 618,440 (1,560)
Fines and Forfeitures:
Vehicle code fines 50,000 50,000 33,669 (16,331)
Municipal court fines 60,000 60,000 92,658 32,658
Total Fines and Forfeitures 110,000 110,000 126,327 16,327
Investment Earnings:
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
For the year ended June 30, 2010
Budgeted Amount
(CONTINUED)
Interest income 645,000 645,000 1,176,956 531,956
Interest on advances 500,000 500,000 328,756 (171,244)
Interest on notes receivable - - 261,156 261,156
Total Investment Earnings 1,145,000 1,145,000 1,766,868 621,868
Miscellaneous Revenues:
Code compliance - - 3,445 3,445
Strong motion instrument fe 5,000 5,000 6,698 1,698
Special investigation fee - - 7,670 7,670
Certificate of compliance fee - - 1,200 1,200
uisance abatement tax 25,000 25,000 223,978 198,978
Abandoned vehicle abatement 30,000 30,000 83,117 53,117
Fire inspection service 100,000 100,000 112,747 12,747
Rental income 150,000 150,000 154,620 4,620
Other revenue 230,000 230,000 243,374 13,374
Total Miscellaneous Revenues 540,000 540,000 836,849 296,849
Transfers from other funds 2,586,000 2,586,000 4,747,672 2,161,672
Amounts Available for Appropriatio 46,982,000 43,482,000 46,068,426 2,586,426
See independent auditors' report.(Continued)
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Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Charges to appropriations (outflows):
General Government - Departmental:
City counci 440,200$ 420,180$ 373,838$ 46,342$
City cler 624,412 870,336 867,028 3,308
Legislative advocac 49,000 44,500 37,260 7,240
Electio - - - -
City attorne 233,000 233,000 221,595 11,405
Legal special services 300,000 342,000 341,460 540
City manage 703,450 893,776 887,034 6,742
Community service 1,603,272 814,000 798,355 15,645
Finance 1,972,100 1,903,730 1,900,062 3,668
Auditin 50,000 50,600 50,537 63
Human resources 593,163 533,393 507,619 25,774
General services 445,200 445,200 428,850 16,350
Data processing 953,386 845,786 841,901 3,885
Unemployment insuranc 10,000 56,000 54,830 1,170
Insurance 402,000 1,253,585 1,246,258 7,327
Communit romotion 1 472 453 1 133 453 990 505 142 948
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2010
Budgeted Amount
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
Community developmen 1,698,616 1,866,313 1,859,261 7,052
Marketing 1,113,210 886,635 806,969 79,666
Total General Government - Departmental 12,663,462 12,592,487 12,213,362 379,125
General Government - Nondepartmental:
Contributions to other agencie 683,500 683,500 681,668 1,832
Public Safety:
Police services 15,443,796 14,914,722 14,847,640 67,082
Animal regulatio 220,000 254,517 254,321 196
Traffic safety 438,000 425,665 388,971 36,694
Development services 754,629 180,961 180,163 798
Building and safet 1,760,882 1,758,562 1,756,589 1,973
Total Public Safet 18,617,307 17,534,427 17,427,684 106,743
See independent auditors' report.(Continued)
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Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Charges to appropriations (outflows) (Continued):
Public Works:
Administratio 3,226,622$ 3,023,303$ 3,021,319$ 1,984$
Street maintenance 2,357,280 2,572,341 2,565,567 6,774
Street resurfacing 1,900,000 2,600,135 708,006 1,892,129
Curb and gutte 100,000 80,268 52,489 27,779
Parking lo - 268 268 -
Storm drai 25,000 - - -
Strippin 150,000 105,829 - 105,829
Corporate yar 75,500 74,825 64,167 10,658
Equipmen 420,000 545,502 490,802 54,700
Building maintenance 601,600 591,990 550,265 41,725
Portola community cente 84,907 84,907 73,400 11,507
Storm water permi 50,000 50,000 47,592 2,408
Total Public Works 8,990,909 9,729,368 7,573,875 2,155,493
Parks Recreation and Culture:
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2010
Budgeted Amount
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
Park maintenance 1,068,696 585,446 564,315 21,131
Civic center par 1,576,122 1,653,812 1,649,098 4,714
Landscape service 2,027,150 1,762,956 1,652,357 110,599
Visitors cente 710,400 683,536 668,735 14,801
Total Parks, Recreation and Culture 5,382,368 4,685,750 4,534,505 151,245
Capital Outlay - Departmenta - 68,718 68,718 -
Transfers to other funds 620,000 410,000 350,318 59,682
Amounts Charged to Appropriatio 46,957,546 45,704,250 42,850,130 2,854,120
Excess of resources over (under)
charges to appropriations 24,454 (2,222,250) 3,218,296 5,440,546
Fund balance, June 30 74,375,126 72,128,422 77,568,968 5,440,546
See independent auditors' report.
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OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
Schedule 5
Total
Special Debt Capital Other
Revenue Service Projects Governmental
Funds Fund Funds Funds
ASSETS:
Pooled cash and investments 45,470,244$ 158,568$ 20,123,406$ 65,752,218$
Receivables:
Accounts 108,217 - 689,586 797,803
Assessments - 1,569,860 - 1,569,860
Interest 206,283 - 11,060 217,343
Loans 4,999,274 - - 4,999,274
Prepaid costs 110 - 36 146
Due from other governments 1,065,748 7,926 959,845 2,033,519
Advances to other funds 654,000 - 12,765,000 13,419,000
Restricted assets:
Cash and investments with fiscal agent 3,000,773 - 21,267,845 24,268,618
TOTAL ASSETS 55,504,649$ 1,736,354$ 55,816,778$ 113,057,781$
LIABILITIES:
Accounts payable 391,354$ -$ 1,026,229$ 1,417,583$
Accrued liabilities 49,276 - 6,582 55,858
Due to other funds 8,918 - - 8,918
Unearned revenues 115,086 - 128,967 244,053
Deferred revenue 221,331 1,569,860 689,586 2,480,777
Deposits payable 395,569 - 158,563 554,132
TOTAL LIABILITIES 1,181,534 1,569,860 2,009,927 4,761,321
FUND BALANCES:
Reserved for:
Encumbrances 1,488,426 - 928,573 2,416,999
Continuing appropriation 29,542,273 - 9,904,899 39,447,172
Loans 4,984,182 - - 4,984,182
Prepaid costs 110 - 36 146
Advances to other funds 654,000 - 12,765,000 13,419,000
Reserve requirement 36,366 - - 36,366
Unreserved:
Designated for:
Special revenue purposes 18,002,997 - - 18,002,997
Debt service - 166,494 - 166,494
Capital outlay - - 30,208,343 30,208,343
Undesignated (385,239) - - (385,239)
TOTAL FUND BALANCES 54,323,115 166,494 53,806,851 108,296,460
TOTAL LIABILITIES
AND FUND BALANCES 55,504,649$ 1,736,354$ 55,816,778$ 113,057,781$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
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CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2010
Schedule 6
Total
Special Debt Capital Other
Revenue Service Projects Governmental
Funds Fund Funds Funds
REVENUES:
Taxes 2,729,462$ -$ -$ 2,729,462$
Special assessments collected 886,270 239,818 - 1,126,088
Licenses and permits - - 80,330 80,330
Intergovernmental revenues 3,854,541 - 1,159,890 5,014,431
Rental income 4,847,228 - - 4,847,228
Investment earnings 864,902 1,989 735,779 1,602,670
Fines and forfeitures 216,727 - - 216,727
Miscellaneous 1,421,741 - 2,686 1,424,427
TOTAL REVENUES 14,820,871 241,807 1,978,685 17,041,363
EXPENDITURES:
Current:
General government 6,750,723 118,726 4,511,717 11,381,166
Public safety 260,880 - - 260,880
Public works 1,367,607 - 5,030,315 6,397,922
Capital outlay 2,008,577 - 1,870,392 3,878,969
Debt service:
Principal retirement - 983,000 - 983,000
Interest and fiscal charges 433,506 110,826 - 544,332
TOTAL EXPENDITURES 10,821,293 1,212,552 11,412,424 23,446,269
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,999,578 (970,745) (9,433,739) (6,404,906)
OTHER FINANCING SOURCES (USES):
Issuance of bonds 6,361,000 - - 6,361,000
Transfers in 60,980 886,054 628,533 1,575,567
Transfers out (4,050,908) - (1,604,389) (5,655,297)
TOTAL OTHER FINANCING
SOURCES (USES) 2,371,072 886,054 (975,856) 2,281,270
NET CHANGE IN FUND BALANCES 6,370,650 (84,691) (10,409,595) (4,123,636)
FUND BALANCES - BEGINNING OF YEAR 47,952,465 251,185 64,216,446 112,420,096
FUND BALANCES - END OF YEA 54,323,115$ 166,494$ 53,806,851$ 108,296,460$
See independent auditors' report.
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CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2010
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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 $8.50 per ton, which took effect in July 1996. Due to limited landfill resources, it will be used for
the implementation of appropriate long-range plans to be determined by the City Council for municipal
solid waste disposal.
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- 135 -
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. Collections are made in
the same manner and at the same time as the City business license fees. Proceeds from all charges are
used for the promotion of business activities in the area.
Air Quality Management Fund - This fund accounts for receipts from South Coast Air Quality
Management District, forty-five percent of which is disbursed to the Coachella Valley Association of
Governments. The remaining fifty-five percent are spent for programs that promote the goal of
attaining Federal and State air quality standards.
City-Wide Business License Fund - This fund accounts for receipts received from the College of the
Desert Alumni Association Fair collected from all street fair vendors at $2.00 per day for each space.
Fifty percent of the proceeds are spent for city-wide business promotion and the other fifty percent is
transferred to the General Fund for partial business licensing cost recovery.
Various Landscape and Lighting District Funds - These funds are used to account for expenditures and
receipts of property taxes and service fees levied to the property owners in the various landscaping and
lighting districts, which were formed to provide landscaping and street lighting maintenance.
Individual landscaping and lighting funds are set up for Districts No. 1 through 17.
AIPP Maintenance Fund - This fund is used to account for monies set aside to maintain the artwork in
the City of Palm Desert.
Child Care Program Fund - This fund is used to collect funds from developers for the purpose of
providing child care programs.
Golf Course Maintenance Fund - This fund is used to offset the cost of capital improvements,
equipment purchases, perimeter maintenance, pay off assessments and other nonrecurring costs that
will arise as a result of Desert Willow Golf Course Resort. Funding sources for the Golf Course
Maintenance Fund are collections from the IROC and Standard Vacation Ownership, Inc. time-share
project.
Fire Facilities Restoration Fund - This fund is used to collect funds from developers for the purpose of
construction, restoration and purchase of equipment for fire stations within the City.
Energy Independence Loan Fund -This fund is used to provide funding for the AB811 Energy Loans
and collect assessments from those AB811 loans through property tax collections. The assessments
collected will be used to service debt issued and to provide additional funding for the AB811 loans.
Redevelopment Agency Housing Authority Fund - This fund is used to account for revenues and
expenditures related to rental units owned by the Housing Authority.
Housing
Traffic Mitigation
Safety Gas Tax Measure A Fee
ASSETS:
Pooled cash and investments -$ 336,806$ 17,537,845$ 2,130,118$
Receivables:
Accounts - - - -
Interest - - - -
Loans - - - -
Prepaid costs - - - -
Due from other governments 16,956 211,410 719,845 -
Advances to other funds - - - -
Restricted assets:
Cash and investments with fiscal agent - - - -
TOTAL ASSET 16,956$ 548,216$ 18,257,690$ 2,130,118$
LIABILITIES:
Accounts payable -$ -$ 6,341$ 1,016$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenues - - 26,222 -
Deferred revenue - - - -
Deposits payable - - - -
TOTAL LIABILITIES - - 32,563 1,016
FUND BALANCES:
Reserved for:
Encumbrances - 336,806 253,986 -
Continuing appropriation - - 17,971,141 341,831
Loans - - - -
Prepaid costs - - - -
Advances to other funds - - - -
Reserve requirement - - - -
Unreserved:
Designated for:
Special revenue purposes 16,956 211,410 - 1,787,271
Undesignated - - - -
TOTAL FUND BALANCES 16,956 548,216 18,225,127 2,129,102
TOTAL LIABILITIES
AND FUND BALANCES 16,956$ 548,216$ 18,257,690$ 2,130,118$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 136 -
COMBINING BALANCE SHEET
June 30, 2010
CITY OF PALM DESERT
OTHER SPECIAL REVENUE FUNDS
Schedule 7
Community New Park and Public
Development Construction Planned Recreation Traffic Safety Police
Block Grant Tax Drainage Facilities Signals Recycling Grants
1,092$ 468,371$ 5,436,112$ 1,774,674$ 737,378$ 6,040,477$ -$
- - - - - 101,912 -
- - - - - - -
15,092 - - - - - -
- - - - - - -
23,635 - - - - 24,740 46,118
- 654,000 - - - - -
- - - - - - -
39,819$ 1,122,371$ 5,436,112$ 1,774,674$ 737,378$ 6,167,129$ 46,118$
23,635$ -$ -$ 14,478$ 8,956$ 29,018$ 24,624$
- - - - - 5,521 -
- - - - - - 8,918
- - - - - 75,108 2,392
15,092 - - - - - -
- - - - - - -
38,727 - - 14,478 8,956 109,647 35,934
386,331 58,000 7,316 6,061 282,403 66,657 -
- 42,000 5,168,829 165,506 446,019 - -
- - - - - - -
- - - - - - -
- 654,000 - - - - -
- - - - - - -
- 368,371 259,967 1,588,629 - 5,990,825 10,184
(385,239) - - - - - -
1,092 1,122,371 5,436,112 1,760,196 728,422 6,057,482 10,184
39,819$ 1,122,371$ 5,436,112$ 1,774,674$ 737,378$ 6,167,129$ 46,118$
(Continued)
- 137 -
Landscape
El Paseo Air City Wide and Lighting
Assessment Quality Business Districts
District Management License Nos. 1 - 17
ASSETS:
Pooled cash and investments 36,640$ 267,375$ -$ 1,276,135$
Receivables:
Accounts - - 1,492 -
Interest - - - -
Loans - - - -
Prepaid costs - - - -
Due from other governments - 15,663 - 7,381
Advances to other funds - - - -
Restricted assets:
Cash and investments with fiscal agent - - - -
TOTAL ASSET 36,640$ 283,038$ 1,492$ 1,283,516$
LIABILITIES:
Accounts payable 4,342$ 7,048$ -$ 22,437$
Accrued liabilities - - - -
Due to other funds - - - -
Unearned revenues - - - -
Deferred revenue - - - -
Deposits payable - - - -
TOTAL LIABILITIES 4,342 7,048 - 22,437
FUND BALANCES:
Reserved for:
Encumbrances - - - -
Continuing appropriation - - - -
Loans - - - -
Prepaid costs - - - -
Advances to other funds - - - -
Reserve requirement - - - -
Unreserved:
Designated for:
Special revenue purposes 32,298 275,990 1,492 1,261,079
Undesignated - - - -
TOTAL FUND BALANCES 32,298 275,990 1,492 1,261,079
TOTAL LIABILITIES
AND FUND BALANCES 36,640$ 283,038$ 1,492$ 1,283,516$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 138 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
June 30, 2010
(CONTINUED)
Schedule 7
Redevelopment Total
Fire Energy Agency Other
AIPP Child Care Golf Course Facilities Independence Housing Special Revenue
Maintenance Program Maintenance Restoration Loan Authority Funds
-$ 1,566,205$ 2,270,903$ 644,561$ 3,470,951$ 1,474,601$ 45,470,244$
- - - - - 4,813 108,217
- - - - 206,253 30 206,283
- - - - 4,984,182 - 4,999,274
- - 110 - - - 110
- - - - - - 1,065,748
- - - - - - 654,000
- - - - 409,139 2,591,634 3,000,773
-$ 1,566,205$ 2,271,013$ 644,561$ 9,070,525$ 4,071,078$ 55,504,649$
-$ 525$ 67,540$ -$ 28,742$ 152,652$ 391,354$
- - - - - 43,755 49,276
- - - - - - 8,918
- - - - - 11,364 115,086
- - - - 206,239 - 221,331
- - - - - 395,569 395,569
- 525 67,540 - 234,981 603,340 1,181,534
- 5,500 6,368 - - 78,998 1,488,426
- 1,439,967 - 614,606 - 3,352,374 29,542,273
- - - - 4,984,182 - 4,984,182
- - 110 - - - 110
- - - - - - 654,000
- - - - - 36,366 36,366
- 120,213 2,196,995 29,955 3,851,362 - 18,002,997
- - - - - - (385,239)
- 1,565,680 2,203,473 644,561 8,835,544 3,467,738 54,323,115
-$ 1,566,205$ 2,271,013$ 644,561$ 9,070,525$ 4,071,078$ 55,504,649$
- 139 -
Housing
Traffic Mitigation
Safety Gas Tax Measure A Fee
REVENUES:
Taxes -$ -$ 2,110,411$ 69,203$
Special assessments collected - - - -
Intergovernmental revenues - 2,051,181 1,086,985 -
Rental income - - - -
Investment earnings 2,187 11,026 302,571 43,479
Fines and forfeitures 216,727 - - -
Miscellaneous - - - 60,000
TOTAL REVENUES 218,914 2,062,207 3,499,967 172,682
EXPENDITURES:
Current:
General government - - - 35,793
Public safety - - - -
Public works - 852,475 - -
Capital outlay - - 455,284 -
Debt service:
Interest and fiscal charges - - - -
TOTAL EXPENDITURES - 852,475 455,284 35,793
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 218,914 1,209,732 3,044,683 136,889
OTHER FINANCING SOURCES (USES):
Issuance of bonds - - - -
Transfers in - - - -
Transfers out (246,417) (834,172) - (122,376)
TOTAL OTHER FINANCING
SOURCES (USES) (246,417) (834,172) - (122,376)
NET CHANGE IN FUND BALANCES (27,503) 375,560 3,044,683 14,513
FUND BALANCES (DEFICITS)
BEGINNING OF YEAR 44,459 172,656 15,180,444 2,114,589
FUND BALANCES END OF YEA 16,956$ 548,216$ 18,225,127$ 2,129,102$
See independent auditors' report.
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF PALM DESERT
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2010
- 140 -
OTHER SPECIAL REVENUE FUNDS
Schedule 8
Community New Park and Public
Development Construction Planned Recreation Traffic Safety Police
Block Grant Tax Drainage Facilities Signals Recycling Grants
-$ 87,430$ 30,140$ -$ 24,444$ -$ -$
- - - - - - -
297,882 - 13,435 - - 60,713 286,023
- - - - - - -
315 25,444 98,122 42,757 13,898 110,428 -
- - - - - - -
- - - - - 411,706 -
298,197 112,874 141,697 42,757 38,342 582,847 286,023
296,718 - - - - 586,676 -
- - - - - - 260,880
- 53,834 - 14,478 36,240 - -
- - 22,800 823,786 24,084 - 27,892
- - - - - - -
296,718 53,834 22,800 838,264 60,324 586,676 288,772
1,479 59,040 118,897 (795,507) (21,982) (3,829) (2,749)
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
1,479 59,040 118,897 (795,507) (21,982) (3,829) (2,749)
(387) 1,063,331 5,317,215 2,555,703 750,404 6,061,311 12,933
1,092$ 1,122,371$ 5,436,112$ 1,760,196$ 728,422$ 6,057,482$ 10,184$
(Continued)
- 141 -
Landscape
El Paseo Air City Wide and Lighting
Assessment Quality Business Districts
District Management License Nos. 1 - 17
REVENUES:
Taxes -$ -$ 41,658$ -$
Special assessments collected 193,426 - - 692,844
Intergovernmental revenues - 58,322 - -
Rental income - - - -
Investment earnings - 4,611 329 7,719
Fines and forfeitures - - - -
Miscellaneous - - - -
TOTAL REVENUES 193,426 62,933 41,987 700,563
EXPENDITURES:
Current:
General government 189,363 29,353 - -
Public safety - - - -
Public works - - - 410,580
Capital outlay - - - -
Debt service:
Interest and fiscal charges - - - -
TOTAL EXPENDITURES 189,363 29,353 - 410,580
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,063 33,580 41,987 289,983
OTHER FINANCING SOURCES (USES):
Issuance of bonds - - - -
Transfers in - - - 48,737
Transfers out - - (41,895) -
TOTAL OTHER FINANCING
SOURCES (USES) - - (41,895) 48,737
NET CHANGE IN FUND BALANCES 4,063 33,580 92 338,720
FUND BALANCES (DEFICITS)
BEGINNING OF YEAR 28,235 242,410 1,400 922,359
FUND BALANCES END OF YEA 32,298$ 275,990$ 1,492$ 1,261,079$
See independent auditors' report.
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
- 142 -
For the year ended June 30, 2010
(CONTINUED)
Schedule 8
Redevelopment Total
Fire Energy Agency Other
AIPP Child Care Golf Course Facilities Independence Housing Special Revenue
Maintenance Program Maintenance Restoration Loan Authority Funds
-$ 92,008$ -$ 18,574$ 255,594$ -$ 2,729,462$
- - - - - - 886,270
- - - - - - 3,854,541
- - - - - 4,847,228 4,847,228
- 28,205 50,238 11,381 92,248 19,944 864,902
- - - - - - 216,727
- - 831,141 - - 118,894 1,421,741
- 120,213 881,379 29,955 347,842 4,986,066 14,820,871
10,238 25,475 550,044 - 3,246 5,023,817 6,750,723
- - - - - - 260,880
- - - - - - 1,367,607
- - - - - 654,731 2,008,577
- - - - 433,506 - 433,506
10,238 25,475 550,044 - 436,752 5,678,548 10,821,293
(10,238) 94,738 331,335 29,955 (88,910) (692,482) 3,999,578
- - - - 6,361,000 - 6,361,000
12,243 - - - - - 60,980
- - (830,189) - (1,969,000) (6,859) (4,050,908)
12,243 - (830,189) - 4,392,000 (6,859) 2,371,072
2,005 94,738 (498,854) 29,955 4,303,090 (699,341) 6,370,650
(2,005) 1,470,942 2,702,327 614,606 4,532,454 4,167,079 47,952,465
-$ 1,565,680$ 2,203,473$ 644,561$ 8,835,544$ 3,467,738$ 54,323,115$
- 143 -
Schedule 9-A
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 44,459$ 44,459$ 44,459$ -$
Resources (inflows):
Investment earnings 1,000 2,187 2,187 -
Fines and forfeitures 149,000 216,727 216,727 -
Total resources 150,000 218,914 218,914 -
Charges to appropriations (outflows):
Transfers out 150,000 246,417 246,417 -
Total charges to appropriations 150,000 246,417 246,417 -
Excess of resources over (under)
charges to appropriations - (27,503) (27,503) -
Fund balance, June 30 44,459$ 16,956$ 16,956$ -$
See independent auditors' report.
CITY OF PALM DESERT
- 144 -
For the year ended June 30, 2010
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 1 172,656$ 172,656$ 172,656$ -$
Resources (inflows):
Intergovernmental revenues 837,500 1,408,499 2,051,181 642,682
Investment earnings 12,500 12,500 11,026 (1,474)
Total resources 850,000 1,420,999 2,062,207 641,208
Charges to appropriations (outflows):
Current:
Public works - 1,189,283 852,475 336,808
Transfers out 850,000 850,000 834,172 15,828
Total charges to appropriations 850,000 2,039,283 1,686,647 352,636
Excess of resources over (under)
charges to appropriations - (618,284) 375,560 993,844
Fund balance, June 30 172,656$ (445,628)$ 548,216$ 993,844$
See independent auditors' report.
CITY OF PALM DESERT
- 145 -
For the year ended June 30, 2010
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 2,114,589$ 2,114,589$ 2,114,589$ -$
Resources (inflows):
Taxes - - 69,203 69,203
Investment earnings 40,000 40,000 43,479 3,479
Miscellaneous - - 60,000 60,000
Total resources 40,000 40,000 172,682 132,682
Charges to appropriations (outflows):
Current:
General government 500,000 500,000 35,793 464,207
Transfers out - - 122,376 (122,376)
Total charges to appropriations 500,000 500,000 158,169 341,831
Excess of resources over (under)
charges to appropriations (460,000) (460,000) 14,513 474,513
Fund balance, June 30 1,654,589$ 1,654,589$ 2,129,102$ 474,513$
See independent auditors' report.
CITY OF PALM DESERT
- 146 -
For the year ended June 30, 2010
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 (387)$ (387)$ (387)$ -$
Resources (inflows):
Intergovernmental revenues 563,000 563,000 297,882 (265,118)
Investment earnings 3,000 3,000 315 (2,685)
Total resources 566,000 566,000 298,197 (267,803)
Charges to appropriations (outflows):
Current:
General government 413,000 715,121 296,718 418,403
Total charges to appropriations 413,000 715,121 296,718 418,403
Excess of resources over (under)
charges to appropriations 153,000 (149,121) 1,479 150,600
Fund balance, June 30 152,613$ (149,508)$ 1,092$ 150,600$
See independent auditors' report.
CITY OF PALM DESERT
- 147 -
For the year ended June 30, 2010
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 12,933$ 12,933$ 12,933$ -$
Resources (inflows):
Intergovernmental revenues 215,500 215,500 286,023 70,523
Investment earnings 500 500 - (500)
Total resources 216,000 216,000 286,023 70,023
Charges to appropriations (outflows):
Current:
Public safety 256,000 260,250 260,880 (630)
Capital outlay - - 27,892 (27,892)
Total charges to appropriations 256,000 260,250 288,772 (28,522)
Excess of resources over (under)
charges to appropriations (40,000) (44,250) (2,749) 41,501
Fund balance, June 30 (27,067)$ (31,317)$ 10,184$ 41,501$
See independent auditors' report.
Budgeted Amounts
- 148 -
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, 2010
Schedule 9-F
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 28,235$ 28,235$ 28,235$ -$
Resources (inflows):
Special assessments collected 230,000 230,000 193,426 (36,574)
Total resources 230,000 230,000 193,426 (36,574)
Charges to appropriations (outflows):
Current:
General government 230,000 230,000 189,363 40,637
Total charges to appropriations 230,000 230,000 189,363 40,637
Excess of resources over (under)
charges to appropriations - - 4,063 4,063
Fund balance, June 30 28,235$ 28,235$ 32,298$ 4,063$
See independent auditors' report.
CITY OF PALM DESERT
- 149 -
For the year ended June 30, 2010
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 1,400$ 1,400$ 1,400$ -$
Resources (inflows):
Taxes 50,000 50,000 41,658 (8,342)
Investment earnings - - 329 329
Total resources 50,000 50,000 41,987 (8,013)
Charges to appropriations (outflows):
General government - - - -
Transfers to other funds 50,000 50,000 41,895 8,105
Total charges to appropriations 50,000 50,000 41,895 8,105
Excess of resources over (under)
charges to appropriations - - 92 92
Fund balance, June 30 1,400$ 1,400$ 1,492$ 92$
See independent auditors' report.
CITY OF PALM DESERT
- 150 -
For the year ended June 30, 2010
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
CITY WIDE BUSINESS LICENSE
Schedule 9-H
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 922,359$ 922,359$ 922,359$ -$
Resources (inflows):
Special assessments collected 719,403 719,403 692,844 (26,559)
Investment earnings - - 7,719 7,719
Transfers from other funds 70,000 70,000 48,737 (21,263)
Total resources 789,403 789,403 749,300 (40,103)
Charges to appropriations (outflows):
Current:
Public works 754,302 754,302 410,580 343,722
Total charges to appropriations 754,302 754,302 410,580 343,722
Excess of resources over (under)
charges to appropriations 35,101 35,101 338,720 303,619
Fund balance, June 30 957,460$ 957,460$ 1,261,079$ 303,619$
See independent auditors' report.
CITY OF PALM DESERT
- 151 -
For the year ended June 30, 2010
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE AND LIGHTING DISTRICTS NOS. 1 - 17
- 152 -
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- 153 -
OTHER GOVERNMENTAL FUNDS - DEBT SERVICE
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 158,568$ 158,568$
Receivables:
Assessments 1,569,860 1,569,860
Due from other governments 7,926 7,926
TOTAL ASSETS 1,736,354$ 1,736,354$
LIABILITIES:
Deferred revenue 1,569,860$ 1,569,860$
TOTAL LIABILITIES 1,569,860 1,569,860
FUND BALANCE:
Unreserved:
Designated for:
Debt service 166,494 166,494
TOTAL FUND BALANCE 166,494 166,494
TOTAL LIABILITIES
AND FUND BALANCE 1,736,354$ 1,736,354$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 154 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER DEBT SERVICE FUND
June 30, 2010
Schedule 11
Total
City Other
Highlands Debt Service
Undergrounding Fund
REVENUES:
Special assessments collected 239,818$ 239,818$
Investment earnings 1,989 1,989
TOTAL REVENUES 241,807 241,807
EXPENDITURES:
Current:
General government 118,726 118,726
Debt service:
Principal retirement 983,000 983,000
Interest and fiscal charges 110,826 110,826
TOTAL EXPENDITURES 1,212,552 1,212,552
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (970,745) (970,745)
OTHER FINANCING SOURCES:
Transfers in 886,054 886,054
TOTAL OTHER FINANCING SOURCES 886,054 886,054
NET CHANGE IN FUND BALANCE (84,691) (84,691)
FUND BALANCE - BEGINNING OF YEAR 251,185 251,185
FUND BALANCE - END OF YEAR 166,494$ 166,494$
See independent auditors' report.
- 155 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
OTHER DEBT SERVICE FUND
For the year ended June 30, 2010
- 156 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 157 -
OTHER GOVERNMENTAL FUNDS - CAPITAL PROJECTS
Capital Projects Funds are used to account for the acquisition and construction of major capital
facilities, except for those financed by certain Special Revenue and Enterprise funds.
Arts in Public Places Fund - This fund is used to account for fees collected from residential,
commercial and public facilities development except for street and drainage projects. Its use is
restricted for acquisition, installation, improvement and maintenance of artwork to be displayed in the
City, the administration of the program and community public art education programs.
Capital Projects Reserve Fund - This fund is used to account for resources and expenditures for capital
improvement projects that are related to the acquisition and development of public facilities,
infrastructure and equipment.
Drainage Facilities Fund - This fund is used to account for resources and expenditures for planned
capital improvement projects that are under the Master Drainage Plan.
Park and Recreational Facilities Fund - This fund is used to account for resources and expenditures for
capital improvement projects that are related to park development, maintenance and equipment.
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 Fund - This fund is used to account for the construction of public improvements
from bond proceeds resulting from the creation of this District.
Highlands Undergrounding - This fund is used to account for the construction of public improvements
from bond proceeds resulting from the creation of this District.
CFD University - This fund is used to account for the construction of public improvements from
proceeds resulting from the creation of this District.
Assessment 29 - This fund is used to account for the construction of public improvement from
proceeds resulting from the creation of this District.
Capital
Arts in Projects
Public Places Reserve
ASSETS:
Pooled cash and investments 2,264,344$ 6,370,393$
Receivables:
Accounts - 689,586
Interest - 10,315
Prepaid costs 36 -
Due from other governments - 959,845
Advances to other funds - 8,000,000
Restricted assets:
Cash and investments with fiscal agent - -
TOTAL ASSETS 2,264,380$ 16,030,139$
LIABILITIES:
Accounts payable 677$ 982,747$
Accrued liabilities 6,582 -
Unearned revenue - 128,967
Deferred revenue - 689,586
Deposits payable 158,563 -
TOTAL LIABILITIES 165,822 1,801,300
FUND BALANCES:
Reserved for:
Encumbrances 36,640 633,845
Continuing appropriation - 5,552,913
Prepaid costs 36 -
Advances to other funds - 8,000,000
Unreserved:
Designated for:
Capital outlay 2,061,882 42,081
TOTAL FUND BALANCES 2,098,558 14,228,839
TOTAL LIABILITIES AND FUND BALANCES 2,264,380$ 16,030,139$
See independent auditors' report.
COMBINING BALANCE SHEET
June 30, 2010
CITY OF PALM DESERT
OTHER CAPITAL PROJECTS FUNDS
LIABILITIES AND FUND BALANCES
- 158 -
Schedule 12
Parks and
Drainage Recreation
Facilities Facilities Signalization Buildings Library
3,157,832$ 375,585$ 339,798$ 3,639,724$ 528,464$
- - - - -
- - - - -
- - - - -
- - - - -
- 4,765,000 - - -
- - - - -
3,157,832$ 5,140,585$ 339,798$ 3,639,724$ 528,464$
-$ -$ -$ 24,854$ 17,951$
- - - - -
- - - - -
- - - - -
- - - - -
- - - 24,854 17,951
52,224 - - - -
2,312,188 - 339,798 1,700,000 -
- - - - -
- 4,765,000 - - -
793,420 375,585 - 1,914,870 510,513
3,157,832 5,140,585 339,798 3,614,870 510,513
3,157,832$ 5,140,585$ 339,798$ 3,639,724$ 528,464$
(Continued)
- 159 -
Assessment
District No. 94-3 Silver Spur
Merano Ranch
ASSETS:
Pooled cash and investments -$ 578$
Receivables:
Accounts - -
Interest 6 -
Prepaid costs - -
Due from other governments - -
Advances to other funds - -
Restricted assets:
Cash and investments with fiscal agent 178,840 -
TOTAL ASSETS 178,846$ 578$
LIABILITIES:
Accounts payable -$ -$
Accrued liabilities - -
Unearned revenue - -
Deferred revenue - -
Deposits payable - -
TOTAL LIABILITIES - -
FUND BALANCES:
Reserved for:
Encumbrances - -
Continuing appropriation - -
Prepaid costs - -
Advances to other funds - -
Unreserved:
Designated for:
Capital outlay 178,846 578
TOTAL FUND BALANCES 178,846 578
TOTAL LIABILITIES AND FUND BALANCES 178,846$ 578$
See independent auditors' report.
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
June 30, 2010
(CONTINUED)
LIABILITIES AND FUND BALANCES
- 160 -
Schedule 12
Total
Other
Highlands CFD Assessment Capital Projects
Undergrounding University 29 Funds
-$ -$ 3,446,688$ 20,123,406$
- - - 689,586
- 727 12 11,060
- - - 36
- - - 959,845
- - - 12,765,000
- 20,754,217 334,788 21,267,845
-$ 20,754,944$ 3,781,488$ 55,816,778$
-$ -$ -$ 1,026,229$
- - - 6,582
- - - 128,967
- - - 689,586
- - - 158,563
- - - 2,009,927
- - 205,864 928,573
- - - 9,904,899
- - - 36
- - - 12,765,000
- 20,754,944 3,575,624 30,208,343
- 20,754,944 3,781,488 53,806,851
-$ 20,754,944$ 3,781,488$ 55,816,778$
- 161 -
Capital
Arts in Projects
Public Places Reserve
REVENUES:
Licenses and permits 80,330$ -$
Intergovernmental revenues - 1,159,890
Investment earnings 42,090 425,346
Miscellaneous 20 -
TOTAL REVENUES 122,440 1,585,236
EXPENDITURES:
Current:
General government 359,989 3,850,000
Public works - 2,368,587
Capital outlay 9,160 1,815,707
TOTAL EXPENDITURES 369,149 8,034,294
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (246,709) (6,449,058)
OTHER FINANCING SOURCES (USES):
Transfers in - 320,093
Transfers out (12,243) (676,092)
TOTAL OTHER FINANCING
SOURCES (USES) (12,243) (355,999)
NET CHANGE IN FUND BALANCES (258,952) (6,805,057)
FUND BALANCES - BEGINNING OF YEAR 2,357,510 21,033,896
FUND BALANCES - END OF YEAR 2,098,558$ 14,228,839$
See independent auditors' report.
- 162 -
OTHER CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF PALM DESERT
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2010
Schedule 13
Parks and
Drainage Recreation
Facilities Facilities Signalization Buildings Library
-$ -$ -$ -$ -$
- - - - -
57,863 132,187 6,154 67,005 -
- - - - 147
57,863 132,187 6,154 67,005 147
- - - - 301,728
68,471 80,881 551 120,744 -
872 44,653 - - -
69,343 125,534 551 120,744 301,728
(11,480) 6,653 5,603 (53,739) (301,581)
- 6,859 - - 301,581
- - - (30,000) -
- 6,859 - (30,000) 301,581
(11,480) 13,512 5,603 (83,739) -
3,169,312 5,127,073 334,195 3,698,609 510,513
3,157,832$ 5,140,585$ 339,798$ 3,614,870$ 510,513$
- 163 -
Assessment
District No. 94-3 Silver Spur
Merano Ranch
REVENUES:
Licenses and permits -$ -$
Intergovernmental revenues - -
Investment earnings 41 10
Miscellaneous - -
TOTAL REVENUES 41 10
EXPENDITURES:
Current:
General government - -
Public works - -
Capital outlay - -
TOTAL EXPENDITURES - -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 41 10
OTHER FINANCING SOURCES (USES):
Transfers in - -
Transfers out - -
TOTAL OTHER FINANCING
SOURCES (USES) - -
NET CHANGE IN FUND BALANCES 41 10
FUND BALANCES - BEGINNING OF YEAR 178,805 568
FUND BALANCES - END OF YEAR 178,846$ 578$
See independent auditors' report.
For the year ended June 30, 2010
(CONTINUED)
- 164 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
Schedule 13
Total
Other
Highlands CFD Assessment Capital Projects
Undergrounding University 29 Funds
-$ -$ -$ 80,330$
- - - 1,159,890
- 5,083 - 735,779
- 2,519 - 2,686
- 7,602 - 1,978,685
- - - 4,511,717
130,314 2,242,649 18,118 5,030,315
- - - 1,870,392
130,314 2,242,649 18,118 11,412,424
(130,314) (2,235,047) (18,118) (9,433,739)
- - - 628,533
(886,054) - - (1,604,389)
(886,054) - - (975,856)
(1,016,368) (2,235,047) (18,118) (10,409,595)
1,016,368 22,989,991 3,799,606 64,216,446
-$ 20,754,944$ 3,781,488$ 53,806,851$
- 165 -
- 166 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 167 -
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 2,600,650$ 270,664$ 2,928,612$ 8,603,288$ 14,403,214$
Receivables (net of allowance
for uncollectibles):
Accounts - - - 106,442,541 106,442,541
Interest - - - 283 283
Restricted assets:
Cash with fiscal agent - - - 8,133,655 8,133,655
TOTAL ASSETS 2,600,650$ 270,664$ 2,928,612$ 123,179,767$ 128,979,693$
Deposits 2,600,650$ 270,664$ 2,928,612$ 123,179,767$ 128,979,693$
TOTAL LIABILITIES 2,600,650$ 270,664$ 2,928,612$ 123,179,767$ 128,979,693$
See independent auditors' report.
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
June 30, 2010
CITY OF PALM DESERT
- 168 -
ASSETS
LIABILITIES
Schedule 15
Balance Balance
July 1, June 30,
2009 Additions Deletions 2010
ASSETS:
Cash and investments 2,775,713$ 1,369,504$ 1,544,567$ 2,600,650$
TOTAL ASSETS 2,775,713 1,369,504 1,544,567 2,600,650
LIABILITIES:
Deposits 2,775,713$ 1,369,504$ 1,544,567$ 2,600,650$
TOTAL LIABILITIES 2,775,713 1,369,504 1,544,567 2,600,650
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 3,581,042$ 62,173$ 714,603$ 2,928,612$
TOTAL ASSETS 3,581,042 62,173 714,603 2,928,612
LIABILITIES:
Deposits 3,581,042$ 62,173$ 714,603$ 2,928,612$
TOTAL LIABILITIES 3,581,042 62,173 714,603 2,928,612
See independent auditors' report (Continued)
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
For the year ended June 30, 2010
CITY OF PALM DESERT
RETIREE SERVICES STIPEND FUN
AGENCY
TREASURERS 1911 BOND ACT
- 169 -
Schedule 15
Balance Balance
July 1, June 30,
2009 Additions Deletions 2010
ASSETS:
Cash and investments 8,458,161$ 8,309,587$ 8,164,460$ 8,603,288$
Receivables (net of allowance for uncollectibles):
Accounts 109,500,634 49,111 3,107,204 106,442,541
Interest 224 285 226 283
Restricted assets:
Cash with fiscal agen 8,203,488 107,964 177,797 8,133,655
TOTAL ASSETS 126,162,507 8,466,947 11,449,687 123,179,767
LIABILITIES:
Deposits 126,162,507$ 8,466,947$ 11,449,687$ 123,179,767$
TOTAL LIABILTIES 126,162,507 8,466,947 11,449,687 123,179,767
ASSETS:
Cash and investments 15,085,580$ 9,741,264$ 10,423,630$ 14,403,214$
Receivables (net of allowance for uncollectibles):
Accounts 109,500,634 49,111 3,107,204 106,442,541
Interest 224 285 226 283
Restricted assets:
Cash with fiscal agen 8,203,488 107,964 177,797 8,133,655
TOTAL ASSETS 132,789,926 9,898,624 13,708,857 128,979,693
LIABILITIES:
Deposits 132,789,926$ 9,898,624$ 13,708,857$ 128,979,693$
TOTAL LIABILITIES 132,789,926 9,898,624 13,708,857 128,979,693
See independent auditors' report.
- 170 -
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, 2010
(CONTINUED)
- 171 -
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2010
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 Assets by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities 2010 2009 2008 2007 2006
Invested in capital assets, net of related debt 304,702,414 302,507,877 (3) 287,536,477 (3) 213,685,471 166,229,783
Restricted 150,699,837 166,127,927 168,029,901 173,335,615 153,342,045
Unrestricted 103,613,088 106,912,693 113,420,152 111,386,996 108,077,101
Total Governmental Activities Net Assets 559,015,339 575,548,497 568,986,530 498,408,082 427,648,929
Business-Type Activities
Invested in capital assets, net of related debt 67,902,786 68,263,719 62,814,656 62,956,911 63,233,079
Restricted - - - - -
Unrestricted 4,391,160 4,686,899 5,211,985 5,294,980 4,459,840
Total Business-type Activities Net Assets 72,293,946 72,950,618 68,026,641 68,251,891 67,692,919
Primary Government
Invested in capital assets, net of related debt 372,605,200 370,771,596 350,351,133 276,642,382 229,462,862
Restricted 150,699,837 166,127,927 168,029,901 173,335,615 153,342,045
Unrestricted 108,004,248 111,599,592 118,632,137 116,681,976 112,536,941
Total Primary Government Net Assets 631,309,285 648,499,115 637,013,171 566,659,973 495,341,848
Governmental Activities 2005 2004 2003 2002 2001
Invested in capital assets, net of related debt 147,410,323 141,303,283 143,448,973 44,179,223 41,332,088
Restricted 103,701,569 100,268,597 99,313,317 78,732,876 72,610,266
Unrestricted 96,445,212 79,075,507 80,229,689 88,266,933 80,007,103
Total Governmental Activities Net Assets 347,557,104 320,647,387 322,991,979 211,179,032 193,949,457
Business-Type Activities
Invested in capital assets, net of related debt 63,588,616 63,857,424 64,269,694 64,085,563 64,702,174
Restricted - - - -
Unrestricted 2,948,910 1,830,204 1,288,488 1,494,726 1,419,665
Total Business-type Activities Net Assets 66,537,526 65,687,628 65,558,182 65,580,289 66,121,839
Primary Government
Invested in capital assets, net of related debt 210,998,939 205,160,707 207,718,667 108,264,786 106,034,262
Restricted 103,701,569 100,268,597 99,313,317 78,732,876 72,610,266
Unrestricted 99,394,122 80,905,711 81,518,177 89,761,659 81,426,768
Total Primary Government Net Assets 414,094,630 386,335,015 388,550,161 276,759,321 260,071,296
(1)The increase for FY 2006 is due to issuance of District Bond see note #6
172
(1)The , .
(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.
172
City of Palm Desert
Changes in Net Assets
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 58,449,389 34,089,168 46,048,643 39,956,767 34,362,850
Public safety 27,027,643 27,670,237 26,855,060 24,674,424 21,856,311
Parks, recreation and culture 7,312,679 7,210,706 8,013,211 4,996,692 4,243,119
Public works 19,899,121 22,036,017 27,245,937 37,091,512 13,894,980
Interest on long term debt 20,069,813 20,128,441 20,706,514 20,097,198 12,526,964
Total Governmental Activites Expenses 132,758,645 111,134,569 128,869,365 126,816,593 86,884,224
Business-Type Activities:
Desert Willow Golf Course 7,832,690 7,804,265 8,167,682 7,989,321 6,913,517
Office Complex - Parkview 875,394 852,746 649,548 716,592 646,769
Total Business-Type Activities 8,708,084 8,657,011 8,817,230 8,705,913 7,560,286
Total primary government expenses 141,466,729 119,791,580 137,686,595 135,522,506 94,444,510
Program Revenues
Governmental Activities
Charges for services
General government 7,113,204 7,574,059 8,454,683 8,225,112 8,318,175
Public safety 9,431,478 9,396,435 8,808,300 9,078,214 8,376,981
Parks, recreation and culture 618,440 803,218 1,190,725 1,822,685 1,994,163
Public works 706,374 701,125 762,440 514,838 491,179
Operating grants & contributions 6,558,892 5,582,470 5,843,010 7,951,650 4,930,120
Capital grants & contributions (1)2,722,312 5,048,666 42,545,033 57,132,742 51,780,221
Total Governmental Activites Program Revenues 27,150,700 29,105,973 67,604,191 84,725,241 75,890,839
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,054,263 6,872,935 8,182,741 7,830,863 7,442,330
Office Complex - Parkview 988,056 958,942 934,833 915,975 864,447
Capital grants & contributions - - 206,609 278,757 295,304
Total Business-type activites program revenue 8,042,319 7,831,877 9,324,183 9,025,595 8,602,081
Total Primary Government program revenue 35,193,019 36,937,850 76,928,374 93,750,836 84,492,920
Net (Expense) / Revenue
Governmental Activites (105,607,945) (82,028,596) (61,265,174) (42,091,352) (47,837,446)
Business-type activites (665,765) (825,134) 506,953 319,682 1,041,795
Total Primary Government Net Expense (106,273,710) (82,853,730) (60,758,221) (41,771,670) (46,795,651)
General Revenues & Other Changes in Net Assets
Governmental Activities:
Taxes: (Combined/Net Pass-through) 83,077,986 84,564,947 90,527,965 86,766,864 114,826,387
Investment Earnings 2,916,753 6,161,309 15,309,271 17,521,600 6,197,595
Contributions not restricted for specific purpose 644,603 613,648 7,240,770 - -
Gain(loss) on sales of assets - - - - -
Contributions from other agencies
Expenses 2007 2006200820092010
173
Contributions from other agencies - - - - -
Miscellaneous 2,382,208 2,912,180 6,369,028 10,790,417 7,025,216
Refunding of special assessment debt - - - - -
Transfers In 53,237 (5,661,521) 1,000,000 - -
Total Governmental Activites Net Revenues 89,074,787 88,590,563 120,447,034 115,078,881 128,049,198
Business-Type Activities:
Investment Earnings 62,330 87,590 267,797 239,290 113,598
Transfers Out (53,237) 5,661,521 (1,000,000) - -
Total Business-type activites 9,093 5,749,111 (732,203) 239,290 113,598
Total primary government 89,083,880 94,339,674 119,714,831 115,318,171 128,162,796
Change in Net Assets
Governmental Activities: (16,533,158) 6,561,967 59,181,860 72,987,529 80,211,752
Business-Type Activities: (656,672) 4,923,977 (225,250) 558,972 1,155,393
Total primary government (17,189,830) 11,485,944 58,956,610 73,546,501 81,367,145
(1) The Increase for FY 2006 is due to Bond Funds received for capital improvement at the District known as University Park and Assessment 29. See note #15
173
City of Palm Desert
Changes in Net Assets
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
174 174
Contributions from other agencies 262 193 4 328 656
Expenses 2005 2004 2003 2002 2001
Governmental Activities:
General government 27,144,038 28,402,902 21,055,957 20,830,544 18,625,329
Public safety 18,743,083 15,420,151 15,601,833 14,547,981 12,744,434
Parks, recreation and culture 4,043,034 3,977,447 3,480,264 19,686,164 3,542,671
Public works 10,428,219 13,046,864 23,009,640 3,775,417 15,595,997
Interest on long term debt 12,749,188 14,124,371 14,443,467 15,271,200 16,224,248
Total Governmental Activites Expenses 73,107,562 74,971,735 77,591,161 74,111,306 66,732,679
Business-Type Activities:
Desert Willow Golf Course 6,636,889 6,657,220 6,653,242 6,629,866 6,901,576
Office Complex - Parkview 609,298 570,135 511,272 534,865 1,481,938
Total Business-Type Activities 7,246,187 7,227,355 7,164,514 7,164,731 8,383,514
Total primary government expenses 80,353,749 82,199,090 84,755,675 81,276,037 75,116,193
Program Revenues
Governmental Activities
Charges for services
General government 7,059,609 6,540,065 6,605,215 6,166,557 6,237,731
Public safety 3,945,395 2,737,585 2,737,571 2,903,623 2,882,947
Parks, recreation and culture 1,442,098 1,048,667 868,255 394,263 322,606
Public works 540,028 511,317 455,676 959,412 845,097
Operating grants & contributions 4,800,413 4,632,297 6,249,955 5,568,966 4,607,448
Capital grants & contributions (1)5,166,856 7,134,158 4,325,033 4,434,722 5,300,829
Total Governmental Activites Program Revenues 22,954,399 22,604,089 21,241,705 20,427,543 20,196,658
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 6,814,638 6,237,087 5,824,079 5,753,581 5,882,813
Office Complex - Parkview 898,884 851,763 843,812 861,405 943,895
Capital grants & contributions 338,478 267,951 414,967 8,195 543,303
Total Business-type activites program revenue 8,052,000 7,356,801 7,082,858 6,623,181 7,370,011
Total Primary Government program revenue 31,006,399 29,960,890 28,324,563 27,050,724 27,566,669
Net (Expense) / Revenue
Governmental Activites (80,336,571) (76,418,938)(78,490,293)(71,417,934)(60,853,995)
Business-type activites 805,813 129,446 (81,656)(541,550)(1,013,503)
Total Primary Government Net Expense (79,530,758) (76,289,492)(76,289,492)(71,959,484)(61,867,498)
General Revenues & Other Changes in Net Assets
Governmental Activities:
Taxes: (Combined/Net Pass-through)96,926,134 87,551,146 81,297,385 73,257,210 66,975,636
Investment Earnings 4,240,360 2,985,463 3,366,548 6,388,234 11,539,085
Contributions from fiduciary funds - - - - -
Gain(loss) on sales of assets 17,459 - (984,837)204,000 764,000
Contributions from other agencies - - - 262 193,4 328 656, ,
Miscellaneous 6,347,396 1,852,229 3,997,338 4,709,580 2,785,106
Refunding of special assessment debt - (8,706,206)- - -
Transfers In - - - - -
Total Governmental Activites Net Revenues 107,531,349 83,682,632 87,676,434 84,821,217 86,392,483
Business-Type Activities:
Investment Earnings 43,831 - 11,718 - -
Transfers Out 254 - 47,831 - -
Total Business-type activites 44,085 - 59,549 - -
Total primary government 107,575,434 83,682,632 87,735,983 84,821,217 86,392,483
Change in Net Assets
Governmental Activities: 27,194,778 7,263,694 9,186,141 13,403,283 25,538,488
Business-Type Activities:849,898 129,446 (22,107)(541,550)(1,013,503)
Total primary government 28,044,676 7,393,140 9,164,034 12,861,733 24,524,985
(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 #15
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund: 2010 2009 2008 2007 2006
Reserved 13,721,382 15,283,684 16,304,234 25,198,118 26,345,859
Unreserved 63,847,586 59,066,988 63,515,054 50,916,281 48,004,509
Total General Fund 77,568,968 74,350,672 79,819,288 76,114,399 74,350,368
All other Governmental Funds:
Reserved 160,170,306 132,772,497 144,034,808 133,768,988 115,924,400
Unreserved, reported in:
Special revenue funds 61,826,713 81,096,342 72,478,199 48,231,447 19,944,227
Capital projects funds 78,183,802 89,680,189 97,413,884 175,094,003 55,995,596
Debt service funds 26,336,905 44,506,123 35,706,020 24,254,967 10,095,576
Total all other Governmental Funds 326,517,726 348,055,151 349,632,911 381,349,405 201,959,799
General Fund: 2005 2004 2003 2002 2001
Reserved 26,505,414 27,838,819 25,701,984 27,506,623 22,951,643
Unreserved 36,793,370 27,619,600 23,113,284 23,827,558 24,419,570
Total General Fund 63,298,784 55,458,419 48,815,268 51,334,181 47,371,213
All other Governmental Funds:
Reserved 96,349,160 83,603,140 86,423,841 89,223,387 77,271,685
Unreserved, reported in:
Special revenue funds 25,991,171 32,614,358 24,709,698 24,222,615 15,521,068
Capital projects funds 34,196,750 40,652,793 48,976,239 46,630,038 53,720,744
Debt service funds 8,430,170 12,899,972 11,641,650 5,803,153 6,744,244
Total all other Governmental Funds 164,967,251 169,770,263 171,751,428 165,879,193 153,257,741
175
175
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues 2010 2009 2008 2007 2006
Taxes 130,655,949 134,060,681 140,331,466 138,272,454 131,303,483
Special assessments collected (2) 3,182,549 2,759,444 2,060,791 929,348 269,036
Licenses & permits 782,271 1,383,778 1,453,177 2,691,486 2,685,415
Intergovernmental revenues 8,700,234 9,543,551 18,996,692 23,499,937 11,095,613
Rental income 5,023,770 5,050,479 4,789,421 4,513,146 4,737,861
Charges for services 618,440 803,218 1,190,725 1,822,685 1,994,163
Investment Earnings 4,681,243 8,322,808 22,592,392 23,985,001 9,351,716
Fines & forfeitures 343,054 315,284 254,857 274,365 310,868
Miscellaneous (4)3,374,309 3,479,370 20,164,099 2,847,802 2,470,623
Contributions from property owners (1)- - - 46,006,292 42,979,973
Total Revenues 157,361,819 165,718,613 211,833,620 244,842,516 207,198,751
Expenditures
General government 58,433,679 33,310,015 62,795,604 44,587,985 34,506,987
Pass-through-agreement 37,794,435 39,085,941 38,993,445 35,719,075 36,844,061
Public safety 26,882,787 26,906,123 26,677,743 24,550,431 21,715,373
Parks, recreation & culture 4,534,505 5,122,900 4,572,695 3,921,063 3,304,867
Public works 13,971,797 16,241,963 22,936,721 33,925,623 11,103,943
Capital outlay 6,333,521 22,348,953 52,256,552 85,604,515 35,359,139
Debt service:
Principal retirement 15,250,707 12,778,707 10,767,707 8,209,707 5,607,707
Interest and fiscal charges 19 280 517 19 424 623 23 376 564 25 814 526 14 072 572
Total Expenditures 182,481,948 175,219,225 242,377,031 262,332,925 162,514,649
Excess(deficiency of Revenues
over(under) expenditures
Other financing sources (uses)
Transfers in 59,960,402 68,088,670 59,723,636 249,249,847 50,225,747
Transfers out (59,520,402) (67,649,434) (58,723,636) (249,249,847) (50,225,747)
Bond Premiums - - - 7,785,375 -
Bonds issued/Capital Accreation on bonds(3) 6,361,000 2,015,000 1,484,806 287,534,894 -
Payment refunded bond escrow agent - - (101,656,501) -
Sale of property (4)- - 47,000 5,230,000 3,360,030
Total Other financing sources (uses)6,801,000 2,454,236 2,531,806 198,893,768 3,360,030
Net Change In Fund Balance (18,319,129) (7,046,376) (28,011,605) 181,403,359 48,044,132
Revenues 2005 2004 2003 2002 2001
Taxes 102,020,742 93,948,185 83,762,760 78,631,363 72,173,943
Special assessments collected (2) 227,848 214,950 5,818,624 6,684,402 12,884,346
18.0%Debt service as a percentage of noncapital
expenditures
15.5%19.3%19.6% 21.1%
(30,543,411) (9,500,612) (17,490,409) 44,684,102 (25,120,129)
Special assessments collected (2) 227,848 214,950 5,818,624 6,684,402 12,884,346
Licenses & permits 2,056,554 1,316,669 1,286,262 1,417,012 1,511,652
Intergovernmental revenues 11,064,037 6,067,555 11,488,993 10,581,051 6,463,484
Rental income 4,430,915 4,494,098 4,115,892 4,186,607 3,943,706
Charges for services 1,463,850 1,052,467 873,605 975,841 845,097
Investment Earnings 5,654,986 3,322,733 5,035,799 7,671,358 15,114,698
Fines & forfeitures 323,775 306,630 367,903 305,197 238,872
Miscellaneous (4) 3,232,825 4,179,567 2,443,684 1,405,298 11,037,622
Contributions from property owners (1) - - - - -
Total Revenues 130,475,532 114,902,854 115,193,522 111,858,129 124,213,420
Expenditures
General government 26,112,125 27,122,532 20,034,295 19,194,096 17,286,613
Pass-through-agreement 30,183,408 24,051,292 22,140,837 17,734,171 14,317,974
Public safety 18,567,736 15,290,696 15,410,711 14,368,399 12,598,263
Parks, recreation & culture 2,889,789 2,638,386 2,656,809 2,580,841 2,434,884
Public works 7,306,791 10,153,096 20,631,322 17,657,120 13,167,046
Capital outlay 22,409,057 18,927,787 36,687,223 17,159,885 14,330,725
Debt service:
Principal retirement 9,788,423 28,372,707 25,975,000 28,360,000 16,820,000
Interest and fiscal charges 13,537,219 16,643,049 17,071,421 17,062,974 16,452,210
Total Expenditures 130,794,548 143,199,545 160,607,618 134,117,486 107,407,715
Excess(deficiency of Revenues
over(under) expenditures
Other financing sources (uses)
Transfers in 48,697,604 68,236,264 87,390,536 60,894,943 37,122,796
Transfers out (48,697,604) (68,236,264) (90,285,014) (60,894,943) (37,122,796)
Bond Premiums - 915,773 - - -
Bonds issued/Capital Accreation on bonds(3)- 48,690,000 50,682,363 37,765,000 -
Payment refunded bond escrow agent - - - - -
Sale of property (4)3 356 369 1 728 522 979 533 766 279 767 500
Total Other financing sources (uses)3,356,369 51,334,295 48,767,418 38,531,279 767,500
Net Change In Fund Balance 3,037,353 14,334,398 3,353,322 16,271,922 17,573,205
(1)Bond was issued in FY 2006 and FY 2007. See note #15 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 #6 of the Financial Statement, included Capital Accreation of Bonds.
(4) Pior to 2008 Sale of Property/Inventory was recorded as other financing sources. In 2008 Sale of Inventory was moved to General Revenue
16,805,705
35.8%
(27,377,918) (45,414,096) (22,259,357)
38.8%34.7%36.2%21.5%Debt service as a percentage of noncapital
expenditures
(319,016)
176
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 use of money & property 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
$350,000,000
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
FY
2
0
0
3
FY
2
0
0
2
FY
2
0
0
1
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
$350,000,000
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
FY
2
0
0
3
FY
2
0
0
2
FY
2
0
0
1
Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works
Public safety
General Government
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
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
FY
2
0
0
3
FY
2
0
0
2
FY
2
0
0
1
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
$350,000,000
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
FY
2
0
0
5
FY
2
0
0
4
FY
2
0
0
3
FY
2
0
0
2
FY
2
0
0
1
Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works
Public safety
General Government
177
City of Palm Desert
Supplemental - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Revenue Type:
Sales Tax 13,273,793$ 14,474,933$ 17,195,743$ 17,918,375$ 17,776,928$
Transient Occupancy Tax 6,848,132 7,030,048 8,605,714 8,627,221 8,026,101
Property Tax (3)8,707,567 8,776,917 9,333,842 8,714,568 8,261,944
Investment Earnings 1,766,868 2,142,915 4,571,147 4,890,891 2,636,050
Transfer In 4,747,672 2,684,568 1,101,610 1,122,224 1,083,589
Franchises 2,705,902 2,818,729 2,887,727 2,907,062 2,580,917
State Subventions (1) (3)151,489 173,448 220,785 267,595 358,954
Building & Grading Permits 575,852 950,805 975,296 1,476,290 1,963,733
Reimbursments (4)2,488,378 3,263,247 4,933,807 2,465,685 1,982,846
Business License Tax 1,071,997 1,258,688 1,311,090 1,231,587 1,242,721
Timeshare Mitigation Fee 1,483,220 949,871 881,350 782,739 661,187
Plan Check Fees 224,325 389,770 562,930 617,999 702,857
Property Transfer Tax 455,580 324,817 604,236 671,806 1,030,412
Other Revenues (2)1,567,651 1,601,947 1,900,529 2,436,664 2,606,760
Total General Revenue 46,068,426$ 46,840,703$ 55,085,806$ 54,130,706$ 50,914,999$
FY 2005 2004 2003 2002 2001
Revenue Type:
Sales Tax 15,453,148$ 15,138,424$ 13,463,197$ 13,027,395$ 13,619,607$
Transient Occupancy Tax 7,715,624 7,660,831 6,816,682 7,043,454 7,385,707
Property Tax 4,003,585 3,369,711 3,078,047 2,765,556 2,466,758
Investment Earnings 1,486,830 1,135,952 1,573,165 2,379,764 3,147,544
Transfer In 1,130,231 1,092,475 2,450,600 870,624 934,039
Franchises 2,439,134 2,417,856 2,198,663 2,131,820 1,981,697
State Subventions (1)3,712,256 2,020,583 2,634,949 2,555,811 2,262,535
Building & Grading Permits 1,446,524 970,826 876,372 1,064,097 1,101,743
Reimbursments (4)1,830,295 1,547,862 1,367,303 1,036,133 2,125,784
Business License Tax 1,154,143 955,501 961,675 898,113 826,591
Timeshare Mitigation Fee 526,271 392,988 262,403 158,302 265,350
Plan Check Fees 701,215 459,046 472,356 612,845 623,936
Property Transfer Tax 1,099,665 870,415 689,147 497,967 578,238
Other Revenues (2)2,019,035 1,144,752 1,845,700 1,116,608 711,438
Total General Revenue 44,717,956$ 39,177,222$ 38,690,259$ 36,158,489$ 38,030,967$
(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 and other revenues.
(3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes.
(4) Riembursements is a combination of RDA costs and other reimbursements
178
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
(1) C bi d Oth i bi ti f t f f hi t t b ti * b ildi d di
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
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
FY
2
0
0
3
FY
2
0
0
2
FY
2
0
0
1
Combined Other (1)
Interest
Property Tax
Transient Occupancy Tax
Sales Tax
(1) om ne t er s any com nat on o trans ers, ranc ses, state su vent ons , u ng an gra ng
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
$70,000,000
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
FY
2
0
0
5
FY
2
0
0
4
FY
2
0
0
3
FY
2
0
0
2
FY
2
0
0
1
Combined Other (1)
Interest
Property Tax
Transient Occupancy Tax
Sales Tax
179
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Expenditure:
Public Safety (1)15,671,095$ 16,266,052$ 14,413,196$ 13,404,056$ 12,323,448$
City Administration (2)8,556,627 10,076,543 9,861,106 8,588,341 8,410,706
Public Works Administration 3,021,319 3,720,106 3,329,792 3,014,583 2,823,359
Community Promotions 990,505 1,798,860 2,532,637 2,402,435 1,687,148
Street Maintenance 2,565,567 2,183,445 2,133,448 1,968,849 1,681,583
Building Safety 1,756,589 2,082,996 3,260,855 3,084,015 2,695,889
Street Resurfacing 708,006 1,115,721 3,342,542 1,192,629 1,277,554
Public Works (4)1,278,983 1,552,242 1,348,012 1,204,079 1,117,417
Other Expenditures (3)8,301,439 13,513,354 11,159,329 17,989,005 7,846,311
Total Expenditures 42,850,130$ 52,309,319$ 51,380,917$ 52,847,992$ 39,863,415$
FY 2005 2004 2003 2002 2001
Expenditure:
Public Safety (1)12,135,671$ 11,432,803$ 10,869,991$ 10,732,159$ 9,489,468$
City Administration (2)7,196,081 5,999,228 6,573,351 6,461,706 4,972,981
Public Works Administration 2,506,688 2,270,854 1,937,184 1,745,513 1,764,947
Community Promotions 1,616,071 1,420,717 1,654,768 2,262,129 2,052,281
Street Maintenance 1,558,970 1,411,018 1,323,955 1,378,064 1,455,268
Building Safety 2,297,814 1,620,160 1,535,427 1,386,988 1,201,802
Street Resurfacing 1,375,409 897,153 2,078,218 608,616 1,422,637
Public Works (4)934,821 676,505 1,007,637 880,295 918,575
Other Expenditures (3)7,256,066 6,805,633 14,228,641 7,052,549 8,398,278
Total Expenditures 36,877,591$ 32,534,071$ 41,209,172$ 32,508,019$ 31,676,237$
(1) Public Safety is any combination of animal regulation, development services, 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, data processing, elections, finance, general services, human resources, insurance, legal special services,
legistlative advocacy and unemployment insurance expenditures.
(3) Other Expenditures is any combination of aquisitions, centers, committees, contributions, community
development, office of energy management, newsletter, marketing, interfund transfers, parks, recreation and culture,
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.
180
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,
office of energy management, newsletter, 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, data processing, elections, finance, general services, human resources, insurance, legal special services,
legistlative advocacy and unemployment insurance expenditures.
(3) Public Safety is any combination of animal regulation, development services, police
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
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
FY
2
0
0
3
FY
2
0
0
2
FY
2
0
0
1
Combined Other (1)
Community Promotions
Public Works Administratio
City Administration (2)
Public Safety (3)
services, .
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
FY
2
0
0
5
FY
2
0
0
4
FY
2
0
0
3
FY
2
0
0
2
FY
2
0
0
1
Combined Other (1)
Community Promotions
Public Works Administratio
City Administration (2)
Public Safety (3)
181
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182 182
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Total General Revenue (2)41,320,754$ 44,156,135$ 53,984,196$ 53,008,482$ 49,831,410$
Population (1)52,067 51,509 50,907 49,752 49,539
General Revenue Per Capita 794$ 857$ 1,060$ 1,065$ 1,006$
FY 2005 2004 2003 2002 2001
Total General Revenue (2)43,587,725$ 38,084,747$ 36,239,659$ 35,287,865$ 37,096,928$
Population (1)49,280 44,812 43,917 42,863 42,334
General Revenue Per Capita 884$ 850$ 825$ 823$ 876$
FY 2010 2009 2008 2007 2006
Total General Expenditures (2)42,499,812$ 48,696,321$ 49,238,257$ 43,565,108$ 38,488,367$
Population (1)52,067 51,509 50,907 49,752 49,539
General Expenditures Per
Capita 816$ 945$ 967$ 876$ 777$
FY 2005 2004 2003 2002 2001
Total General Expenditures (2)35,426,268$ 31,674,743$ 34,935,591$ 30,941,156$ 28,902,706$
4 Population (1)49,28 44,812 43,917 42,8 3 42,334
General Expenditures Per
Capita 719$ 707$ 795$ 722$ 683$
(1) Population figures are as of January start of fiscal year.
(2) Interfund Transfers In/Out are not included in total.
Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department
183
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)
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
2003 5,360,801,928 1,200,179,536 88,013,166 328,049,073 (184,027,529) 8,001,196,907 1.00000 8,066,795,481
2002 4,806,079,266 1,069,623,656 79,499,056 332,450,596 (173,452,485) 7,227,186,866 1.00000 7,291,094,312
2001 4,153,891,190 838,518,408 70,951,558 296,706,514 (161,253,540) 6,450,141,599 1.00000 6,511,773,110
(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
184 184
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Ten Fiscal Years
Historical Major Additions
12 24%11.97%10.64%7.90%
6 64%
11.63%12.86%
10.63%
5.29%
3.43%
1.00%
6.00%
11.00%
16.00%
21.00%
26.00%
31.00%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Percent Increase in Assessed Valuation
FY 2001 to FY 2010
$-
$5,000
$10,000
$15,000
$20,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Value in Millions
Net Assessed Valuation - Historical Comparison
FY 2001 to FY 2010
185
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
Source: Riverside County Assessor thru HDL Coren & Cone
185
City of Palm Desert
Supplemental FY 2010 and 2009 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency FY 2010 Rate FY 2009 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 2.977291%2.972906%
Coachella Valley County Water Storm Water Unit 3.464324%3.464324%
General Purpose Basic 1%100.004385%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.
186
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
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
2003 1.00000 1.00000 0.09750 0.00000 0.02080 0.03060
2002 1.00000 1.00000 0.09750 0.00000 0.02080 0.03060
2001 1.00000 1.00000 0.09750 0.00000 0.02080 0.04060
Notes:Proposition 13 limits the ability of the city to raise the property tax rate.
Source: CalMuni Statistics Inc
City Direct Overlapping Rates
187 187
City of Palm Desert
Principal Property Taxpayers
Current Year and Ten Years Ago
2010 2001
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
Taxpayer Taxable
Assessed Value
Percentage of Total
City Tax Assessed
Value
Marriott Desert Springs 211,183,579$ 1.58% Marriott Desert Springs $187,742,451 3.28%
WEA Palm Desert 138,765,071 1.04%Teachers Insurance &
Annuity Assoc 69,110,895 1.21%
Pru of Desert Crossing II
LLC 88,837,232 0.66%Property California
SCJLW One Corp.53,446,748 0.93%
Gardens SPE II 78,760,087 0.59%Marriott Ownership
Resorts 32,051,576 0.56%
Elisabeth E. Stewart 67,483,248 0.50% San Tropez Apartments 25,060,546 0.44%
Monarch Sevilla Venture 64,358,476 0.48%National Golf Operatiing
LP 24,172,690 0.42%
Capri W Canterra 60,136,516 0.45%Colony Cablevision of
California 24,138,625 0.42%
Marriott Ownership
Resorts 57,174,952 0.43% U.S. Filter Corporation 23,599,788 0.41%
Time Warner
Entertainment 55,354,986 0.43% Sunrise Desert Partners 22,764,492 0.40%
Walmart Real
Estate/SAM'S 47,461,794 0.35% Indian Ridge Land 21,904,055 0.38%
Total 869,515,941$ 6.50%Total 483,991,866$ 8.46%
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.
188
Source: HdL Coren & Cone thru Riverside County Assessor 09/10 and City of Palm Desert CAFR 99/00
188
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year Taxes Levied Collections
Ended for the Percentage in Subsequen Percentage
June 30, Fiscal Year Amount of Levy Years (4)mount (4)of Levy
2001 2,426,812 2,387,760 98.39% 39,052 2,426,812$ 100.00%
2002 2,603,643 2,475,308 95.07% 128,335 2,603,643$ 100.00%
2003 3,273,730 2,723,336 83.19% 550,394 3,273,730$ 100.00%
2004 3,080,422 3,007,652 97.64% 72,770 3,080,422$ 100.00%
2005 3,768,896 3,501,718 92.91% 267,178 3,768,896$ 100.00%
2006 4,318,880 4,243,595 98.26% 75,285 4,318,880$ 100.00%
2007 4,820,583 4,575,158 94.91% 245,425 4,820,583$ 100.00%
2008 5,206,384 4,734,970 90.95% 471,414 5,206,384$ 100.00%
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%
(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 inal total collected includes ad ustments or No-Low ro ert
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) Inlcludes tax collections accrued as of June 30, 2010.
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
189 189
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2010
Top 25 Sales Tax Generators (1)Primary Economic Category
ALBERTSON'S FOOD CENTERS SUPERMARKETS
ARCO AM/PM M NI MARTS SERVICE STATIONS
BED BATH & BEYOND SPECIALTY STORES
BEST BUY STORES LP APPLIANCE / ELECTRONICS
COSTCO WHOLESALE COMPANY GENERAL STORES
DESERT SPRINGS RESORT & SPA HOTEL / FOOD & BEVERAGE
HIGH TECH RRIGATION SPECIAL MATLS-WHSLE
J.C PENNY COMPANY NC DEPARTMENT STORES
KOHLS DEPARTMENT STORES DEPARTMENT STORES
LOWE'S HOME MPROVEMENT BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES
MARSHALLS OF CA APPAREL STORES
MOBIL SERVICE STATION SERVICE STATIONS
PETE CARLSONS GOLF & TENNIS SPORT NG GOODS
RALPH'S GROCERY SUPERMARKETS
SAKS F FTH AVENUE DEPARTMENT STORES
SAM'S CLUB DEPARTMENT STORES
SEARS-ROEBUCK AND CO DEPARTMENT STORES
S MPLOT PARTNERS BLDG.MATLS-WHSLE
STONELEDGE FURNITURE HOME FURNISHINGS
SUPERIOR POOL PRODUCTS BLDG.MATLS-WHSLE
TARGET STORE DEPARTMENT STORES
TOMMY BAHAMA APPAREL STORES
WAL-MART SUPERCENTER DEPARTMENT STORES
WEST COAST TURF BLDG.MATLS-WHSLE
(1) Listed in Alphabetical Order
Millions
Sales and Use Tax Trends FY 2001 - 2010
% = % Change from Prior Year
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
$19.0
20
0
1
20
0
2
20
0
3
20
0
4
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
Millions
Sales and Use Tax Trends FY 2001 - 2010
0.8%-2.5%
-14.1%
-11.5%
Amounts
in Millions
% = % Change from Prior Year
2.0%
15.0%
13.620 13.027 13.463 15.138 15.453 17.776 17.918 17.195 14.474 13.273
-4.5%3.1%3.2%
11.1%
-In Lieu *
190
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Apparel Stores 134,186$ 142,488$ 159,207$ 155,859$ 141,510$ 132,831$ 108,829$ 97,924$ 93,792$ 92,192$
General Merchandise 304,396 326,673 388,583 392,738 362,512 340,277 307,186 278,583 272,856 269,776
Food Markets 40,573 44,880 49,398 53,870 50,556 47,455 52,461 51,738 52,282 55,817
Restaurants 137,475 145,907 181,731 184,954 178,248 167,315 152,508 148,228 155,911 153,970
Furniture/Appliance 97,415 106,166 135,775 161,997 166,109 155,921 135,694 128,623 125,130 128,899
Bldg.Matls-Wholesale 58,241 86,564 95,633 69,773 73,228 68,737 56,180 54,111 64,251 57,865
Automotive 11,314 10,301 8,596 6,121 6,245 5,862 8,211 6,904 8,825 8,108
Service Stations 66,416 64,912 63,969 59,401 48,564 45,585 39,146 23,930 22,633 25,807
Other Retail 185,722 218,005 282,973 295,830 281,388 264,129 243,474 228,286 220,252 227,591
Non-Retail (1)185,655 182,223 219,411 222,177 218,591 205,184 193,041 190,058 195,137 197,961
mounts in million
Totals 1,221,393$ 1,328,119$ 1,585,276$ 1,602,720$ 1,526,951$ 1,433,296$ 1,296,730$ 1,208,385$ 1,211,069$ 1,217,986$
City direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 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: John E. Husing, Ph.D. Economics and Politics Inc. via California State Board of Equalization this information is calendar year based only
191 191
City of Palm Desert
Supplemental Prinicipal Sales Tax Remitters
Current and Ten Calendar Years Ago
Tax Amount Percentage Tax Amount Percentage
General Merchandise 304,396$ 24.92% 269,800$ 22.15%
Other Retail 185,722 15.21% 227,600 18.69%
Non-Retail (1) 185,655 15.20% 198,000 16.26%
Restaurants 137,475 11.26% 154,000 12.64%
Apparel Stores 134,186 10.99% 128,900 10.58%
Furniture/Appliance 97,415 7.98% 92,200 7.57%
Service Stations 66,416 5.44% 25,800 2.12%
Bldg.Matls-Wholesale 58,241 4.77% 57,870 4.75%
Food Markets 40,573 3.32% 55,800 4.58%
Automotive 11,314 0.93% 8,100 0.66%
Amounts in millions
Totals 1,221,393$ 1,218,070$
(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: John E. Husing, Ph.D. Economics and Politics Inc. via California State Board of Equalization
2009 2000Industry
192
192
City of Palm Desert
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business Type Activities
Special Total Percentage
Fiscal Redevelopment Assessment Note Capital Primary of Personal Per
Year Bonds Bonds c Payable Leases Government Income b Capita b
2001 193,015,000 48,415,000 - 373,556 241,803,556 13.90% 5,712
2002 207,990,000 43,145,000 - 106,373 251,241,373 15.96% 5,861
2003 234,464,000 40,528,000 1,104,363 1,146,582 277,242,945 16.73% 6,313
2004 256,000,000 28,623,000 981,656 833,358 286,438,014 16.16% 6,392
2005 250,485,000 26,050,000 858,949 509,755 277,903,704 13.45% 5,639
2006 245,000,000 73,855,000 736,242 170,493 319,025,493 15.21% 6,440
2007 a 421,819,894 122,393,000 613,535 2,181,546 547,007,975 25.65% 10,987
2008 412,694,700 115,398,000 490,828 1,582,782 530,166,310 21.49% 10,414
2009 d 401,601,475 114,597,000 368,121 955,141 517,521,737 29.80% 10,047
2010 e 388,972,156 117,165,000 245,414 328,273 506,710,843 20.46% 9,732
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, 2010 the balance was $1,719,000
- Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million to fund the
Energy Independence Loan Program. The actual Bond Issuance was for $2.015m.
e - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011
In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variiable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment is due September 2, 2010.
Governmental Activities
193 193
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of Actual
Fiscal Redevelopment Special Assessment Taxable Value of Per
Year Bonds Bonds c Property a Capita b
2001 193,015,000 2.990% 4,559$
2002 207,990,000 2.880% 4,852$
2003 234,464,000 2.930% 5,339$
2004 256,000,000 2.820% 5,713$
2005 250,485,000 2.400% 5,083$
2006 245,000,000 2.080% 4,946$
2007 421,819,894 2,783,000 3.250% 8,478$
2008 412,694,700 2,748,000 3.170% 8,107$
2009 401,601,475 4,717,000 2.940% 7,797$
2010 388,972,155 10,095,000 d 2.900% 7,471$
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
a - County of Riverside, County Auditor Controller, Assessed Valuations
b - Population information provided by John E. Husing , Ph.D. Economics & Politics, Inc., California Department of Finance.,
and U.S Census Bureau.
c - During the fiscal year end 2010 the city issued the Energy Independence Program Limited Obligation Improvement Bonds Series
2009B (Taxable) $1.136 Million to fund the and the 5.225M Energy Independence Program Variable Rate Demand Lease Revenue
Bonds Series 2009 (Federally Taxable) to provide funding for the Energy Independence Loan Program.
d - The fiscal year end balance at June 30, 2010 is the sum of the combined ending balances of the Special Assessment Debt with
government commitment ($1.719 M),limited obligation improvement bonds ($3.151M), a the lease revenue bonds ($5.225M).
See the financial statement note 6.
General Bonded Debt Outstanding
194
City of Palm Desert
Supplemental Special Assesment Information
June 30, 2010
District Name\Description 2003 01-01 Revenue
Bonds 94-2 Sunterrace
2003 01-01
Revenue Bonds 94-
3 Merano
2003 01-01
Revenue Bonds Silver
Spur Ranch
Utility Undergrounding
2004 R-Bonds
98-1
Canyons @ Bighorn
Community Facilities
District No. 2005-1
(University Park) Special
Tax Bonds Series 2006A
Bond Issue Date 06/25/03 06/25/03 06/25/03 02/19/04 05/09/06
Final Maturity Date 09/02/14 09/02/20 09/02/28 09/02/18 09/01/37
Highest Interest Rate 4 80%5 25%5 375%5 100%5 424%
Bond Issue Amount 930,000 1,153,000 2,340,000 2,955,000 67,915,000
Matured Principal 480,000 363,000 385,000 1,085,000 3,200,000
Called Principal 150,000 - 125,000 1,230,000 -
Outstanding Bonds (4)300,000 790,000 1,830,000 640,000 64,715,000
Redemption Premium 3 00%3 00%3 00%3 00%3 00%
Original Parcels 71 201 250 73 37
Active Parcels 64 121 195 19 69
Reserve Requirement (5)37,500$ 85,000$ 162,094$ 71,500$ 4,583,361$
Reserve Balance 09/10 (1)86,480$ 80,640$ 166,125$ 142,152$ 4,608,043$
Principal Due 10/11 (2)70,000 65,000 65,000 70,000 1,260,000
Principal Levied 10/11 (3)81,126 65,000 66,427 73,265 1,260,000
Interest Due 10/11 (2)12,210 37,445 92,840 28,435 3,320,818
Interest Levied 10/11 (3)15,824 38,810 94,752 31,472 3,348,043
09/10 Delinquency Rate 4 70%3 75%2 97%0 00%9 36%
Arbitrage Installment Computation Date:
90% Rebate Due 09/02/14 09/02/14 12/17/13 12/16/13 05/09/11
Arbitrage Yield Rate 7 9769%6 672%5 1577%5 8386%5 3599%
Arbitrage-Amount Owed - - - - -
Continuing Disclosure Last Report
Issued:12/15/2009 12/15/2009 12/15/2009 12/15/2009 12/15/2009
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 1,030,000 161,000 3,400,000 80,000 21,000
Called Principal - 1,317,000 - - -
Outstanding Bonds (4)28,400,000 1,687,000 7,535,000 1,935,000 1,115,000
Redemption Premium 3 00%3 00%3 00%3 00%3 00%
Original Parcels 167 172 1,154 61 45
Active Parcels 329 135 1,063 59 45
Reserve Requirement (5)1,933,175$ NA 841,500$ NA NA
Reserve Balance 09/10 (1)1,945,358$ NA 1,093,500$ NA NA
Principal Due 09/10 (2)545,000 34,000 905,000 90,513 4,800
Principal Levied 09/10 (3)545,000 30,680 905,000 90,513 4,800
Interest Due 09/10 (2)1,385,760 84,264 247,026 191,518 220,094
Interest Levied 09/10 (3)1,396,660 77,605 261,280 191,518 220,094
09/10 Delinquency Rate 4 71%3 49%1 15%5 82%0 00%
Arbitrage Installment Computation Date:
90% Rebate Due 03/29/12 08/08/11 08/08/11 NA NA
Arbitrage Yield Rate 5 0134%5 0691%3 8681%NA NA
Arbitrage-Amount Owed - - -- -
Continuing Disclosure Last Report
Issued:12/15/2009 NA 12/15/2009 NA NA
(1) Reserve Balances are as of 9/30/10, shortfall will be recovered by additional levy, and interest earnings.
(2) Amount represents principal and interest to be collected on the FY 09/10 tax roll for Debt Service Payment due in FY 10/11.
(3) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments.
(4) Represents Outstanding Bonds after September 2, 2010 principal payment.
(5) Reserve Requirement as of 9/2/10
Source: Wildan Financial Annual Report
195
City of Palm Desert
Direct and Overlapping Government Acitivities Debt
June 30, 2010
2008/09 Assessed Valuation:13,331,542,734$
Redevelopment Incremental Valuation:8,506,256,356
Adjusted Assessed Valuation:4,825,286,378$
City's Share of
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT:Total Debt 6/30/10 % Applicable (1) Debt 6/30/10
Desert Community College District 323,954,507$ 14 105% 45,693,783$
Desert Sands Unified School District General Obligation Bonds 278,387,325 28 535% 79,437,823
Desert Sands Unified School District Lease Tax Obligations 0 0 000% -
Palm Springs Unified School District 334,930,000 3 156% 10,570,391
Coachella Valley County Water District, ID No 54 2,665,000 64 390% 1,715,994
Coachella Valley County Water District, ID No 55 3,730,000 3 997% 149,088
Coachella Valley County Water District, ID No 58 1,755,000 36 382% 638,504
City of Palm Desert 0 100 000% 0
City of Palm Desert 1915 Act Bonds 35,472,000 100 000% 35,472,000
City of Palm Desert Community Facilities District No. 91-1 8,415,000 100 000% 8,415,000
City of Palm Desert Community Facilities District No. 2005-1 65,925,000 100 000% 65,925,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 248,017,583$
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Riverside County General Fund Obligations 736,427,761$ 3 179% 23,411,039$
Riverside County Pensions Obligations 375,100,000 3 179% 11,924,429
Riverside County Board of Education Certificate of Participation 7,240,000 3 179%230,160
Desert Sands Unified School District Certificates of Participation 65,970,000 28 535% 18,824,540
City of Palm Desert General Fund Obligation 5,225,000 100.000%5,225,000
Coachella Valley Recreation and Park District Certificates of Participation 2,400,000 23 059%553,416
Coachella Valley County Water District, ID No 71 Certificate of Participation 4,025,000 20 058%807,335
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT 60,975,919$
Less: Riverside County Self-Supporting Obligations 480,744
-
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT 60,495,175$
GROSS COMBINED TOTAL DEBT 308,993,502 (2)
NET COMBINED TOTAL DEBT 308,512,758
(1) Percentage of overlapping ageny's assessed valuation located within bondaries of city
(2) Excludes tax revenue anticipation noted enterprise revenue mortage revenue and tax allocation bonds and non-bonded
196
(2) Excludes tax revenue anticipation noted, enterprise revenue, mortage revenue and tax allocation bonds and non-bonded
capital lease obligations
Ratios to 2009-10 Assessed Valualtions:
Total Direct and Overlapping Tax and Assessment Debt 1 86%
Ratios to Adjusted Valuations
Combined Direct Debt ($5,225,000)0.11%
Gross Combined Total Debt 6 40%
Net Combined Total Debt 6 39%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/10 0$
Source: California Municipal Statistics, Inc , San Francisco
196
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Value 13,331,542,734$
Debt Limit (15% of Assessed Value) (1)1,999,731,410
Debt Applicable to Limit:
General Obligation Bonds 1,719,000
Less: Amount set aside for
repayment of general obligation
debt -
Total Debt Applicable to Limit 1,719,000
Legal debt margin 1,998,012,410$
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Debt Limit 967,521,240 1,084,078,030 1,200,179,536 1,306,436,757 1,397,304,489 1,582,592,579 1,783,572,979 1,971,408,152 2,076,172,690 1,999,731,410
Total Net debt applicable to limit - - - - - - 2,783,000 2,748,000 2,702,000 1,719,000
Legal debt margin 967,521,240 1,084,078,030 1,200,179,536 1,306,436,757 1,397,304,489 1,582,592,579 1,780,789,979 1,968,660,152 2,073,470,690 1,998,012,410
Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0% 0% 0.16% 0.14% 0.13% 0.09%
(1) Section 43605 of the California Government Code.
Source California Municipal Statistic Inc. San Francisco
FISCAL YEAR
Legal Debt Margin Calculation for Fiscal Year 2010
197 197
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
2001 5,471,643 2,485,000 3,436,552 0.9240 14,993,158 3,895,000 10,610,473 1 034
2002 4,623,412 2,295,000 2,730,780 0.9199 16,294,794 3,960,000 10,538,582 1.124
2003 4,495,603 1,930,000 2,451,363 1.0261 18,496,636 4,195,000 10,960,525 1 221
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
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 due 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 $5.225 million dollars of the Energy Independence Program Variiable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment is due September 2, 2010.
Tax Increment b
Debt ServiceDebt Service
Special Assessment Bonds
198 198
Last Ten Calendar Years
Fiscal Percentage Per Capita City Riverside Percentage County
Year City Increase Personal Personal Unemployment County Increase Unemployment
End Population (Decrease)Income CY a b Income CY Rate c Population (Decrease)Rate c
2010 52,067 1.1% 2,513,151,788$ 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%
2003 43,917 2.5% 1,657,414,199 37,740 3.8% 1,692,187 2.91%6.5%
2002 42,863 1.2% 1,573,796,241 36,717 3.7% 1,644,341 3.06%6.5%
2001 42,334 12.5% 1,739,444,000 41,089 3.2% 1,595,576 5.73%5.5%
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 09/10 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
199
City of Palm Desert
Principal Employers
Current and Ten Years Ago
Employer Employees Rank
Percentage of
Total City
Employment
Employer Employees Rank
Percentage of
Total City
Employment
JW Marriot-Desert Springs
Resort 2,000 1 6.08%
Universal Protection Services 1,500 2 4.56%
Guthy Renker Corp.825 3 2.51%
Securitas-Security Service
USA 700 4 2.13%
Desert ARC 400 5 1.22%
WalMart Super Center 350 6 1.06%
Marriott Desert Springs Villas 304 7 0.92%
Macy's West 301 8 0.91%
Toscana Country Club 300 9 0.91%
Bighorn Golf Club 250 10 0.76%
Totals 6,930 21%Totals - 0%
(1) The information for 2001 is not available
(2) As of June 30, 2010
Sources Cit o Palm Desert RDA thru In oUSA.com - Federal and State Government not included
2010 2 2001 1
200
y f f
200
City of Palm Desert
Supplemental Miscellaneous Statistics
June 30, 2010
City/ Municipal Government
Form of Gorvernment:Council - City Manager/Charter City
Date of Incorporation:November 26, 1973
Number of Employees 133 Full Time Employees
Size of City 25.5 Square Miles
Geographic Location: Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
Streets 159 paved street miles
Number of Business Licenses 7,800 active business licenses
Number of Hotels & Rooms 16 hotels, 2,216 rooms
CONTRACT SERVICES:
Police Department Contract with Riverside County Sheriff - 75 positions plus 19 support staff
Fire Department Contract with Riverside County/State Fire 52 positions plus 5 Fire Prevention Staff
Animal Control Riverside County Animal Services
Water & Sewer: Coachella Valley Water District
Trash Collection Burrtec - Waste Management
Electric Southern Calif. Edison
Gas Southern California Gas
Telephone Verizon
Airport Palm Springs International Airport
Public Education
3
201
Elementary School (grades K - 5) 3
Middle School (grades 6 - 8) 1
High School (grades 9 - 12) 1
Community College - C.O.D. 1
CSUSB - Palm Desert Campus 1
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
Workers Compensation Calif. Joint Powers Insurance 5 Million
Property Insurance Robert Driver Based on Prop. Value
Health Insurance
Medical California PERS; choice of PPO, HMO
Dental Delta Dental
Vision Vision Service Plan
Disability Insurance Disability - Standard Insurance Company
Life Standard Insurance Company
Retirement California PERS - Public Employers Retirement System
Source: City of Palm Desert
201
City of Palm Desert
Full-time Equivalent City Government Employee's by Function / Program
Last Ten Fiscal Years
Function / Program 2010 * 2009 2008 2007 2006 2005 2004 2003 2002 2001
General Government
City 31 49 49 51 53 52 51 51 48 45
Redevelopment Agency 25 19 19 19 19 19 18 18 15 11
Public Safety 26 35 35 35 28 28 28 32 30 31
Police & Fire (1)151 148 146 143 129 123 123 126 126 125
Public Works 49 53 52 44 49 39 39 39 36 35
Parks, recreation & culture 2 14 14 18 11 16 16 16 16 14
Totals 284 318 315 310 289 277 275 282 271 261
(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 2010 realignments were made due to budget cuts, retirements and layoffs
Source City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriffs Department
202 202
City of Palm Desert
Operating Indicators by Function / Program
Last Five Fiscal Years
Function / Program 2010 2009 2008 2007 2006
General Government
Business License Inspections 473 617 489 447 420
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons)51,483 58,198 67,940 73,467 71,820
Recyclables Collected 20,591 22,155 23,798 24,089 24,359
Public Safety
Physical Arrests 1,342 1,446 1,550 1,430 543
Parking Violations 933 1,278 770 694 1,374
Traffic Violations 10,200 9,162 5,929 6,875 4,527
Emergency Responses-Fire Department 7,772 7,149 6,908 6,785 6,600
Fires Extinguished 171 147 154 241 928
Fire Inspections 4,825 8,248 4,267 5,934 1,845
Building Permits Issued 3,230 3,637 4,012 5,813 5,683
Building Inspections Conducted 14,080 18,040 26,401 33,215 29,925
Public Works
Street Resurfacing (miles)8 13 17 9 11
Parks, recreation & culture
Athletic Field Permits Issued 6,281 6,149 5,949 4,510 2,967
Amphitheater / Pavilions Permits Issued 226 133 133 84 81
Community Center Admissions 59,986 55,954 112,540 97,339 92,083
(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.
203
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 Sheriffs Dept., California State Department of Forestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste
203
City of Palm Desert
Capital Asset Statistics by Function / Program
Last Five Fiscal Years
Function / Program 2010 2009 2008 2007 2006
General Government
Contracted Services (1)
Collection trucks 51 54 69 61 71
Public Safety - Police & Fire
Police Stations 1 1 1 1 1
Police Sub Stations 2 2 2 2 2
Patrol Units-Cars 26 30 29 29 28
Patrol Units-Motorcycles 10 10 7 5 4
Fire Stations 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
Ambulance 3 plus 1 Breathing Support 3 plus 1 Breathing Support 3 plus 1 Breathing Support 3 plus 1 Breathing Support 3 plus 1 Breathing Support
Fire Prevention Pick-ups 3 3 3 3 3
Public Works
Streets (miles)159 159 159 154.11 154.11
Traffic Signals 99 99 99 87 85
Parks, recreation & culture
Acreage 201 212 200 200 200
Total Parks 13 14 13 13 11
Playgrounds 16 16 9 8 7
Baseball/softball diamonds 8 9 11 11 8
Soccer/football fields 9 9 7 7 5
Basketball Courts 11 11 9 9 6
Tennis Courts 10 10 10 10 8
Volleyball Courts 8 8 10 10 6
Community Centers 2 2 2 2 2
Skateboard Park 2 2 2 2 1
Commercial Office Space
(Parkview Office Complex)
Leaseable Space (square feet)50,322 50,322 50,322 50,322 50,322
Occupancy Rate 97%98%100%100%100%
Number of Tenants by Type
Government (State, local regional)10 11 11 10 9
Non-Profit 7 5 7 6 6
Private 6 7 6 8 8
Square Footage lease by tenant
Government (State, local regional)34,617 34,617 34,402 33,298 32,457
Non-Profit 4,735 4,735 6,188 5,708 5,708
Private 10,212 10,212 9,732 11,316 10,836
Vacant 758 758 0 0 1,321
Municipal Golf Course
Desert Willow Golf Resort
204
( )
Courses - Fire Cliff and Mountain View 2 2 2 2 2
Holes 36 36 36 36 36
Golf Carts 160 160 160 160 160
Clubhouse square footage 33,000 33,000 33,000 33,000 33,000
Rounds per Course
Fire Cliff 45,988 46,041 46,688 47,263 46,602
Mountain View 37,146 34,899 43,898 41,182 43,725
Total Annual Rounds 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.
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 Sheriffs Dept., California State Department of Forestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste
204
Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
Note: This section is not required by GASB No. 44, however, City believes that statistical
information is beneficial to the reader.
205
THIS PAGE INTENTIONALLY LEFT BLANK
206
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
RDA Project Area #1 and 1982 Annex
FY 2010 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $
Cumulative %
(1) Business Description
WEA Palm Desert (8) 139,023,138$ 20.9%800,000 sq. ft. Retail Shopping Mall Westfield
Shopping Town
Pru of Desert Crossing II LLC(11) 88,837,232$ 13.4% Major Commercial / Retail Buildings
Elisabeth Stewart-Marrakesh CC (289) 84,773,231$ 12.8% Golf Course / Country Club
Gardens SPE II (1) 78,791,600$ 11.9%Garden's at El Paseo up-scale retail shopping
Center.
Macys Calif (1) 30,094,846$ 4.5% Retail Store in Westfield Mall (Macy's)
Harsch Investment Realty LLC(11) 29,931,589$ 4.5%Mix Commercial Buildings One-Eleven Town
Center Shopping Center
Bighorn Development (59) 29,887,753$ 4.5% Recreational / Residential Land Developer
Colonnade on El Paseo (2) 20,377,657$ 3.1% El Paseo Village up-scale retail shopping Center.
ARV Aassisted Living Inc (1) 19,547,714$ 2.9% Assissted Living Center
26 Del Sur Palms LLC (3) 18,154,977$ 2.7%Commercial Center Palms to Pines
Ralphs/Washington Mutual
Sears Roebuck & Company (1) 17,490,665$ 2.6% Westfield Mall (SearsParking Structure)
McKenzie Prop Dev (4) 13,115,110$ 2.0% Vacant Residential Land
Target Stores (1) 13,101,354$ 2.0% Commercial, Department Store
Deep Canyon Partners (5) 12,248,207$ 1.8% Residential Structures Deep Canyon Tennis Club
Palm Dundee One (2) 12,097,769$ 1.8% Commercial Shopping Center
Orlo Styles (3) 11,600,872$ 1.7% Commercial Development
Summit Cable Services of Georgia (1) 11,576,085$ 1.7% Residential Development
L. Lee Bosley Trust (2) 11,407,808$ 1.7% Residential Land Bighorn Development
Orin C Smith (1) 11,316,827$ 1.7% 2 Single Family Residences Bighorn C.C.
Town Center Plaza (1) 11,325,459$ 1.7%Commercial Shopping Center Trader
Joe's/Michaels
Total Net Assessed Value 664,699,893$ 100%
(1) Cumulative represents only the top twenty properties.
Source: Muniservices LLC and Riverside County Assessor 2009/2010 Combined Tax Rolls
208
City of Palm Desert
RDA Project Area #2
FY 2010 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $
Cumulative %
(1) Business Description
Desert Springs Hotel (111)304,390,157$ 51.4% Marriott Desert Springs Resort 895 room Hotel
Lakha Prop Palm Desert (9)32,436,000$ 5.5% Commercial, Food Store, Retail
Palm Desert Funding (11)31,576,011$ 5.3% Vacant Commercial/Residential Land
RST4 Tenant, Lessee (1)26,229,170$ 4.4%Courtyard 151 Room and Residence Inn 130 Room
Hotels
Sinatra & Cook Project (1)25,208,869$ 4.3% Vacant Commercial Land
Palm Desert North 80 (2)21,516,954$ 3.6% Vacant Commercial Land
City National Bank (65)16,912,814$ 2.9% Golf Course Timeshares Condominiums
University Plaza Corp (5)15,777,488$ 2.7% Vacant Commercial Land
SGH Partners (6)14,481,502$ 2.4% General Office Buildings
Mathew V Johnson (2)11,600,636$ 2.0% Vacant Commercial Land
Villas at Desert Springs (52)10,909,390$ 1.8% Time Share Condos/Villas (Shadow Ridge &
Desert Springs Villas)
Palm Desert Terracina (72)10,771,177$ 1.8% Vacant Residential Land
Palm Desert University Village (2)10,332,677$ 1.7% Commercial Buildings - University Village
Desert Falls Country Club Inc (6)10,013,095$ 1.7% Private Golf Course & Homes
HCR ManorCare Pro 1 9 462 586 1.6%Assissted Livin Centerp ( ), ,g
City of Palm Desert (24)8,923,529$ 1.5% Vacant Commercial Land
Cook Ford (1)8,773,693$ 1.5% Office Buildings
Shaw Palm Desert (25)8,443,714$ 1.4% Commercial Shopping Centers
RJT Homes Catavina (2)7,577,022$ 1.3% Vacant Commercial Land
WL Homes (3)6,386,620$ 1.1% Golf Course Timeshares Land
Total Net Assessed Value 591,723,104$ 100%
(1) Cumulative represents only the top twenty properties.
Source: Muniservices LLC and Riverside County Assessor 2009/2010 Combined Tax Rolls
209
City of Palm Desert
RDA Project Area #3
FY 2010 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $
Cumulative %
(1) Business Description
Capri W. Canterra (1) 60,545,947$ 26.7% Multi Family Dwelling (Canterra Apts & Vacant land)
Time Warner Entertainment Advance (4) 31,386,572$ 13.9% Cable Operator (Commercial Office Buildings)
Sunrise IV Carlotta SL (1) 28,809,223$ 12.7%Senior Citizens Assisted Living Center(The
Fountains)
Burrtec Waste & Recycling (1) 11,581,792$ 5.1% Refuse Collection Base / Industrial Offices
Business Park of the Desert (14) 8,960,162$ 4.0% Industrial / Commercial Business Park
SAG Palm Desert (1) 8,697,395$ 3.8% Industrial / Commercial Business Park
Northern Trust Bank of California (8) 7,898,312$ 3.5% Industrial / Commercial Business Park
Desert Properties LLC (5) 6,703,814$ 3.0% Industrial Offices & Parking Lot
Rancho Vista Apts (7) 6,440,455$ 2.8% Multi Family Dwellings (Rancho Vista Apts)
Melanie Place (1) 6,401,501$ 2.8% Industrial / Commercial Business Park
SMG 17 (1) 6,314,020$ 2.8% Business / Commercial Offices
Lakes Country Club Assoc Inc (2) 5,664,410$ 2.5% Golf Course / Country Club
43100 Cook St (1) 5,579,077$ 2.5% Business / Commercial Offices
Cook St. Office (1) 5,208,049$ 2.3%Business / Commercial Offices (Corner of
Cook/Hovley St)
Entravision Communications Corp (2) 4,861,482$ 2.1% KUNA-TV / Commercial Offices
4 758 188$/Lakeside Investment Properties (5)4,758,188$ 2.1% Mix Use Industrial/Commercial Buildings/Stores
Veridian (1)4,484,000$ 2.0% Vacant Commercial Land
Desert Art Properties (1)4,329,727$ 1.9% Industrial / Commercial Business Park
Stor N Lock Partners 16 (1)3,941,587$ 1.7% Storage Facility (Stor-n-Lock)
Eclectic Associates (1)3,809,076$ 1.7% Business / Commercial Offices
Total Net Assessed Value 226,374,789$ 100%
(1) Cumulative represents only the top twenty properties.
Source: Muniservices LLC and Riverside County Assessor 2009/2010 Combined Tax Rolls
210
City of Palm Desert
RDA Project Area #4
FY 2010 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $
Cumulative %
(1) Business Description
Indian Ridge Country Club Inc. (37) 33,445,705$ 19.6% Indian Ridge Golf Course & Homes (Private)
Ashford Park Holdings (1) 29,316,552$ 17.2% Multi-Family Dwellings (Desert Oasis Apts)
Sure Save Storage Palm Desert (2) 13,248,965$ 7.8% Storage Facility
Palm Desert SPE (4) 12,520,371$ 7.3% Multi-Family Dwellings (Palm Desert Apts)
Desert Breezes Assoc (14) 8,293,022$ 4.9% Single-Family Dwellings Condos (Desert Breezes)
PD Villas on the Green (1) 8,090,894$ 4.7%Multi-Family Dwellings (Villas on the Green,
55+Apts)
PDCC Development LLC (17) 7,684,100$ 4.5% Palm Desert C.C. Golf Course & Clubhouse
CT Woodhaven (4) 6,653,060$ 3.9% Golf Course / Country Club
Redevelopment Agency, City of Palm
Desert (2)6,339,679$ 3.7% City Corp Satellite Yard / Parking Lot
SR Mutual Investment Corp. (7) 6,333,965$ 3.7% Palm Desert Resort Golf Course & Clubhouse
Palm Desert Resort C.C. (26) 6,110,839$ 3.6% Palm Desert Country Club Golf Course & Clubhouse
D R Horton Los Angeles (31) 5,283,882$ 3.1% Multiple Singe Family Residences (PDCC)
Royal Palms Realty LLC (37) 4,490,456$ 2.6% Multi-Family Dwellings (Royal Palms Apts)
First Interstate Bank of California (1) 3,707,521$ 2.2% Business / Commercial Offices
Oasis Palm Desert H.O.A. (62) 3,458,569$ 2.0% Oasis Country Club Golf Course & Clubhouse
Peggy M. Hoffman (2) 3,408,000$ 2.0% 2 Single Family Residences (Indian Ridge C.C.)
Edward R. Chiuminatta (2) 3,373,457$ 2.0% Single Family Residence (Indian Ridge C.C.)
Denver Braden (2) 3,040,798$ 1.8% 2 Single Family Residences (Indian Ridge C.C.)
Sunrise Desert Partners (37) 2,971,479$ 1.7% Owners of Multiple Single Family Dwellings
Robert Allen (2) 2,926,000$ 1.7% 2 Single Family Residences (Indian Ridge C.C.)
Total Net Assessed Value 170,697,314$ 100%
(1) Cumulative represents only the top twenty properties.
Source: Muniservices LLC and Riverside County Assessor 2009/2010 Combined Tax Rolls
211
City of Palm Desert
Project Area Statistics
June 30, 2010
Description RDA 1
Ori inal
RDA 1
Anne 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
Pro ect 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$
1,548,428,449$
150,000,000$
287,796,915$
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.
600,000,000$
Bonded Debt Limits (1) none 200,000,000$ 100,000,000$ 135,000,000$
Redevelopment Plan Limitations:
Tax Increment Limit (1) 758,000,000$ 500,000,000$ 360,000,000$
212
Source: Palm Desert Redevelopment Agency
212
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2010
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
$32,600,000
Tax Allocation
Revenue
Years 28 27 21 24 11
Bond Issue Date 03/13/02 08/05/03 06/24/04 07/06/06 01/09/07
Final Maturity Date 04/01/30 04/01/30 04/01/25 04/01/30 04/01/18
Highest Interest Rate 5 100% 5 000% 5 000% 5 820% 5 000%
Bond Issue Amount 22,070,000$ 19,000,000$ 24,945,000$ 62,320,000$ 32,600,000$
Outstanding Bond Amount 22,070,000$ 19,000,000$ 19,830,000$ 53,870,000$ 25,420,000$
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 10/11 - 0 1,130,000 2,320,000 2,625,000
Interest Due 10/11 1,114,665 950,000 974,313 2,974,259 1,201,625
Arbritage Yield Rate 5 2939% 4 8571% 4 7961% 4 7182% 3 8374%
Arbritage-Amount Owed - - - - -
Arbritage Five Year Due Date: 04/13/12 08/05/13 06/24/14 07/06/11 01/09/12
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 12,660,000$ 15,745,000$ 67,340,585$ 4,020,000$ 15,647,978$
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 10/11 720,000 - 1,790,000 105,000 170,000
Interest Due 10/11 581,498 769,006 2,589,956 189,848 570,204
Arbritage Yield Rate 4 7043% 4 9502% 5 2580% 4 9358% 5 3626%
Arbritage-Amount Owed - - - - -
Arbritage Five Year Due Date: 07/17/12 03/26/13 07/25/11 08/05/13 07/25/11
PROJECT AREA #1
PROJECT AREA #3PROJECT AREA #2
213
HOUSING FUND
DESCRIPTION
$11,020,000
Tax Allocation
Revenue Bonds
$15,695,000
Tax Allocation
Revenue Bonds
$19,273,089
Tax Allocation
Revenue
$48,760,000
Tax Allocation
Revenue Bonds
$12,100,000
Tax Allocation
Revenue Bonds
$86,155,000
Tax Allocation
Revenue
Years 30 30 28 30 30 20
Bond Issue Date 03/01/98 11/28/01 07/25/06 01/01/98 09/05/02 02/07/07
Final Maturity Date 10/01/28 10/01/31 10/01/34 10/01/27 10/01/31 10/01/27
Highest Interest Rate 5 00% 4 80% 5 56% 5 10% 4 90% 5 00%
Bond Issue Amount 11,020,000$ 15,695,000$ 19,273,089$ 48,760,000$ 12,100,000$ 86,155,000$
Outstanding Bond Amount 8,355,000$ 13,895,000$ 19,703,593$ 2,995,000$ 10,335,000$ 78,085,000$
Call Premium 0 - 2 00% 0 - 2 00% 0 00% 0 - 2 00% 1 - 2 00% 0 00%
Bond Insurer MBIA MBIA MBIA MBIA MBIA MBIA
Reserve Requirement (1)768,020 482,890 3,740,843 572,500 767,625 7,887,224
Reserve Balance (1)(1) (1) (1) (1) (1) (1)
Called Bonds 105,000$ -$ -$ -$ -$ -$
Principle due 10/11 130,000 320,000 435,000 1,460,000 285,000 3,135,000
Interest Due 10/11 426,665 639,909 662,658 113,250 481,298 3,606,438
Arbritage Yield Rate 5 2271% 4 9464% 5 1111% 5 1343% 4 8290% 4 1830%
Arbritage-Amount Owed - - - - - -
Arbritage Five Year Due Date:10/01/12 11/28/11 07/25/11 10/01/12 09/05/12 02/07/12
(1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero.
Source City of Palm Desert and Redevelopment Agency
PROJECT AREA #4
213
City of Palm Desert
FY 2009/2010
Breakdown of Basic 1% Property Tax Levy Rates
Redevelopment Project Areas
RATE
Taxing Agency RDA 1 Original RDA 1 1982 Annex RDA 2 RDA 3 RDA 4
County General 28.40700453% 28.30180084% 26.60558373% 25.5563064% 21.91479610%
County Library 2.75046814% 2.89268563% 2.95555097% 2.8149967% 2.82897170%
County Fire 5.92093838% 6.22708999% 6.36241455% 6.0598470% 6.08992835%
City of Indian Wells Annex 0.00000000%0.00000616%0.00000000% 0.00000000%0.00000000%
Supervisor Road District 4 0.00000000%0.00007516%0.00000000% 0.00000000%0.00000000%
City of Palm Desert 0.00000000%2.25679571% 4.85307892% 4.25223894% 8.68170866%
Rancho Mirage Library 0.00000000%0.01396623%0.00000000% 0.00000000% 0.00000000%
Rancho Mirage Fire Asmt 0.00000000%0.03006509%0.00000000% 0.00000000% 0.00000000%
Desert Sands Unified School District 36.51673718% 36.92838889% 22.25684737% 37.37343452% 37.55894476%
Palm Springs Unified School District 0.00000000% 0.00000000%12.36344573%0.00000000% 0.00000000%
Desert Community College 7.58804112% 8.04857391% 8.15381878% 7.76606146% 7.80461151%
County Superintendent of Schools 4.12828236% 4.37883652% 4.43609559% 4.22513419% 4.24611066%
Riverside County Reg Park & Open
Space 0.42968742% 0.42845039% 0.40245477% 0.38657812% 0.44196642%
Coachella Valley Public Cemetary 0.34269204% 0.30143479% 0.20887203% 0.35073150% 0.35247557%
Palm Springs Public Cemetary 0.00000000%0.02854740% 0.07331448%0.00000000% 0.00000000%
Desert Hospital 2.01307402% 1.28228895% 1.81618954% 1.16073449%0.00000000%
Coachella Valley Mosquito & Vector
Control 1.38085381% 1.46466267% 1.48381600% 1.41324962% 1.42026725%
Coachella Valley Recreation & Park 2.08849947% 1.83705568% 1.27293720% 2.13749790% 2.14810999%
Coachella Valley Water District 2.75890183% 2.92549508% 2.96461239% 2.82362731% 2.88092946%
Coachella Valley Resource Cons 0.00000000%0.02139135% 0.03800706% 0.03099578% 0.03637750%
Coachella Valley Imp District 80 2.18227103% 0.98494417%0.00000000%0.07408075% 0.00257178%
Coachella Valley Water District Storm
Water Unit 3.49254869% 1.64744538% 3.75296088% 3.57448533% 3.59223028%
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: Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
214
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area #1 - Original
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured/Unsecured 9,559,527$ 9,587,028$ 9,112,173$ 8,618,586$ 7,996,533$
Supplemental 110,042 30,362 330,285 255,077 817,902
SBE (Utility)330,667 361,150 362,009 358,243 280,131
Total Gross Increment 10,000,236 9,978,539 9,804,467 9,231,907 9,094,566
Low/Mod Housing Set Aside (2,000,047) (1,995,708) (1,960,893) (1,829,832) (1,803,116)
Tax Increment Less Low/Mod 8,000,189 7,982,832 7,843,574 7,402,075 7,291,450
Total Pass-Throughs (850,953) (885,352) (841,237) (724,021) (830,846)
SB 2557 Charges (119,449) (92,168) (86,539) (82,749) (78,987)
Net Tax Increment Agency (2)7,029,786$ 7,005,311$ 6,915,798$ 6,595,305$ 6,381,617$
FY 2005 2004 2003 2002 2001
Secured/Unsecured 7,406,602$ 6,934,754$ 6,503,515$ 6,360,760$ 6,199,196$
Supplemental 200,879 151,075 49,849 104,267 140,667
SBE (Utility)300,931 297,098 288,489 285,323 292,520
Total Gross Increment 7,908,412 7,382,927 6,841,853 6,750,350 6,632,383
Low/Mod Housing Set Aside (1,561,352) (1,455,810) (1,348,011) (1,328,643) (1,305,693)
Tax Increment Less Low/Mod 6,347,059 5,927,117 5,493,842 5,421,707 5,326,690
Total Pass-Throughs (1)(279,854) (316,366) (696,443) (922,984) 0
SB 2557 Charges (101,653) (103,877) (101,797) (107,137) (103,919)
Net Tax Increment Agency (2)5,965,552$ 5,506,874$ 4,695,602$ 4,391,586$ 5,222,771$
(1) RDA Project Area 1 does not have Total Pass-Throughs with the exception of FY 1991/92.
(2) Net Tax Increment Agency does not include Debt Service payments.
Sources: City of Palm Desert, Tax Increment Calculations & County of Riverside
$0
$1,500,000
$3,000,000
$4,500,000
$6,000,000
$7,500,000
$9,000,000
2010 2009 2008 2007 2006
3.35%6.97%
Percentage represents change from prior year.
4.86%1.29%.35%
215
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured/Unsecured 40,394,226$ 42,187,053$ 40,030,758$ 36,240,089$ 31,237,832$
Supplemental 1,501,116 310,030 2,644,698 3,587,825 5,644,432
SBE (Utility)295,078 320,911 280,014 255,476 167,752
Total Gross Increment 42,190,420 42,817,994 42,955,470 40,083,390 37,050,016
Low/Mod Housing Set Aside (8,438,084) (8,563,599) (8,591,094) (7,949,224) (7,350,269)
Tax Increment Less Low/Mod 33,752,336 34,254,395 34,364,376 32,134,166 29,699,746
Total Pass-Throughs (19,409,560) (20,165,002) (20,349,225) (18,869,733) (17,382,480)
SB 2557 Charges (491,441) (391,166) (368,824) (337,271) (298,669)
Net Tax Increment Agency (1)13,851,336$ 13,698,227$ 13,646,327$ 12,927,162$ 12,018,598$
FY 2005 2004 2003 2002 2001
Secured/Unsecured 27,778,894$ 25,247,194$ 22,967,677$ 19,826,224$ 15,969,365$
Supplemental 1,502,190 886,454 910,786 2,011,351 1,352,695
SBE (Utility)142,166 144,829 136,296 134,804 138,207
Total Gross Increment 29,423,250 26,278,477 24,014,759 21,972,379 17,460,268
Low/Mod Housing Set Aside (5,811,002) (5,182,761) (4,733,721) (4,330,166) (3,440,490)
Tax Increment Less Low/Mod 23,612,248 21,095,716 19,281,038 17,642,213 14,019,778
Total Pass-Throughs (13,463,639) (11,740,730) (10,523,374) (9,583,446) (7,339,195)
SB 2557 Charges (368,240) (364,672) (346,155) (321,551) (257,820)
Net Tax Increment Agency (1)9,780,369$ 8,990,314$ 8,411,509$ 7,737,217$ 6,422,763$
(1) Net Tax Increment Agency does not include Debt Service payments.
Sources: City of Palm Desert, Tax Increment Calculations Worksheets & County of Riverside
$0
$3,000,000
$6,000,000
$9,000,000
$12,000,000
$15,000,000
$18,000,000
2010 2009 2008 2007 2006
Percentage represents change from prior year.
7.56%22.88%
5.56%.38%1.12%
216
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured/Unsecured 17,726,474$ 19,400,296$ 17,779,922$ 15,816,298$ 13,756,558$
Supplemental 958,429 216,957 1,121,602 1,332,272 1,553,145
SBE (Utility)93,124 101,056 81,421 70,380 39,774
Total Gross Increment 18,778,027 19,718,309 18,982,945 17,218,950 15,349,478
Low/Mod Housing Set Aside (3,755,605) (3,943,662) (3,796,589) (3,414,421) (3,043,663)
Tax Increment Less Low/Mod 15,022,421 15,774,648 15,186,356 13,804,529 12,305,815
Total Pass-Throughs (7,331,058) (7,665,640) (7,598,015) (6,846,307) (6,072,950)
SB 2557 Charges (215,165) (179,911) (163,443) (146,845) (131,163)
Net Tax Increment Agency (1)7,476,199$ 7,929,096$ 7,424,898$ 6,811,376$ 6,101,702$
FY 2005 2004 2003 2002 2001
Secured/Unsecured 12,629,958$ 11,717,869$ 10,422,746$ 8,575,348$ 7,816,649$
Supplemental 698,023 812,847 548,517 257,896 391,197
SBE (Utility)23,747 25,689 22,768 22,519 23,088
Total Gross Increment 13,351,728 12,556,405 10,994,031 8,855,763 8,230,934
Low/Mod Housing Set Aside (2,636,969) (2,477,550) (2,167,507) (1,743,454) (1,621,091)
Tax Increment Less Low/Mod 10,714,759 10,078,855 8,826,524 7,112,309 6,609,843
Total Pass-Throughs (5,459,600) (4,683,769) (4,320,158) (3,296,575) (2,790,025)
SB 2557 Charges (166,884) (168,655) (156,494) (138,491) (125,482)
Net Tax Increment Agency (1)5,088,275$ 5,226,431$ 4,349,872$ 3,677,242$ 3,694,336$
(1) Net Tax Increment Agency does not include Debt Service payments.
Sources: City of Palm Desert, Tax Increment Calculations Worksheets
$0
$1,500,000
$3,000,000
$4,500,000
$6,000,000
$7,500,000
$9,000,000
$10,500,000
2010 2009 2008 2007 2006
Percentage represents change from prior year.
11.63%9.01%
19.92%
6.79%-5.71%
217
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area #3
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured/Unsecured 4,537,360$ 4,499,995$ 3,924,542$ 3,402,301$ 2,858,918$
Supplemental 301,307 236,572 454,199 185,346 607,706
SBE (Utility)12,900 13,956 9,990 6,910 3,147
Total Gross Increment 4,851,567 4,750,524 4,388,731 3,594,557 3,469,772
Low/Mod Housing Set Aside (970,313) (950,105) (877,746) (712,606) (688,513)
Tax Increment Less Low/Mod 3,881,254 3,800,419 3,510,985 2,881,951 2,781,259
Total Pass-Throughs (2,213,071) (2,214,109) (2,173,895) (1,806,340) (1,750,650)
SB 2557 Charges (1)(54,958) (42,288) (36,007) (31,526) (27,207)
Net Tax Increment Agency 1,613,225$ 1,544,022$ 1,301,083$ 1,044,084$ 1,003,402$
FY 2005 2004 2003 2002 2001
Secured/Unsecured 2,137,750$ 2,040,874$ 1,359,556$ 1,204,009$ 1,028,201$
Supplemental 261,674 150,716 79,744 130,497 47,444
SBE (Utility)763 1,001 731 723 742
Total Gross Increment 2,400,187 2,192,591 1,440,031 1,335,229 1,076,387
Low/Mod Housing Set Aside (474,397) (432,653) (283,930) (263,165) (211,984)
Tax Increment Less Low/Mod 1,925,790 1,759,938 1,156,101 1,072,064 864,403
Total Pass-Throughs (1,197,599) (899,766) (448,489) (183,986) (548,192)
SB 2557 Charges (1)(28,204) (29,324) (20,379) (19,405) (16,469)
Net Tax Increment Agency (2)699,987$ 830,848$ 687,233$ 868,673$ 299,742$
(1) Data for SB 2557 Charges is available from FY 1993/94.
Sources: City of Palm Desert, Tax Increment Calculations Worksheets
$0
$300,000
$600,000
$900,000
$1,200,000
$1,500,000
$1,800,000
$2,100,000
2010 2009 2008 2007 2006
Percentage represents change from prior year.
4.05%43.35%
24.61%
18.67%-6.43%
218
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured/Unsecured 12,923,345$ 13,712,549$ 13,518,052$ 12,117,535$ 10,483,484$
Supplemental 308,182 140,937 1,013,384 1,296,818 2,197,486
SBE (Utility)54,666 59,245 43,558 34,914 15,009
Total Gross Increment 13,286,193 13,912,731 14,574,994 13,449,266 12,695,978
Low/Mod Housing Set Aside (2,657,239) (2,782,546) (2,914,999) (2,667,385) (2,519,237)
Tax Increment Less Low/Mod 10,628,955 11,130,185 11,659,995 10,781,881 10,176,742
Total Pass-Throughs (7,400,665) (7,784,441) (8,032,775) (7,426,842) (6,778,536)
SB 2557 Charges (1)(156,747) (127,300) (124,107) (112,342) (99,794)
Net Tax Increment Agency 3,071,543$ 3,218,444$ 3,503,113$ 3,242,697$ 3,298,411$
FY 2005 2004 2003 2002 2001
Secured/Unsecured 9,017,457$ 8,044,541$ 7,275,223$ 6,205,401$ 4,612,165$
Supplemental 694,864 318,307 411,994 854,021 829,389
SBE (Utility)2,036 3,641 1,952 1,930 1,979
Total Gross Increment 9,714,357 8,366,489 7,689,169 7,061,353 5,443,533
Low/Mod Housing Set Aside (1,919,081) (1,650,181) (1,516,029) (1,392,274) (1,073,936)
Tax Increment Less Low/Mod 7,795,276 6,716,308 6,173,140 5,669,078 4,369,597
Total Pass-Throughs (5,145,220) (3,569,212) (3,863,556) (3,747,180) (3,640,563)
SB 2557 Charges (1)(118,954) (115,583) (109,024) (99,981) (73,853)
Net Tax Increment Agency 2,531,102$ 3,031,513$ 2,200,560$ 1,821,917$ 655,182$
(1) Data for SB 2557 Charges is available from FY 1995/96.
Sources: City of Palm Desert, Tax Increment Calculations Worksheets
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
2010 2009 2008 2007 2006
Percentage represents change from prior year.
-1.69%30.32%8.03%-8.13%-4.56%
219
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Original
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 249,715,896$ 241,759,729$ 233,208,647$ 216,759,847$ 209,051,600$
Improvements 613,769,221 610,061,698 584,395,005 552,604,613 515,092,610
Personal Property 3,399,575 5,000,717 4,856,393 6,825,265 7,420,696
Penalty 0 0 0 0 0
Less Other Exempt (898,089) (455,200) (1,570,949) (760,295) (610,338)
Less Home Owner Value (49,000) (70,000) (63,000) (70,000) (70,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 865,937,603 856,296,944 820,826,096 775,359,430 730,884,568
Unsecured:
Land 99 1,267 1,245 1,220 396
Improvements 63,627,182 69,008,584 60,185,535 56,536,963 48,736,306
Personal Property 53,892,307 60,792,341 57,684,012 57,404,440 47,480,402
Penalty 0 0 0 0 0
Less Other Exempt (68,471) (66,749) (56,785) (32,652) (32,573)
Total Net Assessed Taxable Unsecured Value 117,451,117 129,735,443 117,814,007 113,909,971 96,184,531
Total Net Assessed Taxable Value 983,388,720$ 986,032,387$ 938,640,103$ 889,269,401$ 827,069,099$
FY 2005 2004 2003 2002 2001
Secured: (1)
Land 193,066,855$ 180,571,588$ 175,028,644$ 171,440,095$ 167,254,618$
Improvements 468,555,559 430,563,506 403,984,613 389,716,686 381,168,647
Personal Property 4,909,559 2,970,008 3,290,180 3,824,393 4,621,105
Penalty 0 0 0 2,536 61,938
Less Other Exempt (730,777) (100) 0 0 0
Less Home Owner Value (70,000) (77,000) (75,600) (70,000) (49,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assess xable Secured V 665,731,196 614,028,002 582,227,837 564,913,710 553,057,308Total Net Assessed Taxable Secured Value 665,731,196 614,028,002 582,227,837 564,913,710 553,057,308
Unsecured:
Land 156,701 174,128 201,461 229,626 191,925
Improvements 51,133,704 52,581,364 48,916,729 52,533,594 47,281,799
Personal Property 51,093,465 54,158,601 46,472,846 44,331,125 44,847,382
Penalty 0 0 0 1,592,700 2,089,768
Less Other Exempt (39,043) (57,842) (57,121) (58,570) (61,394)
Total Net Assessed Taxable Unsecured Value 102,344,827 106,856,251 95,533,915 98,628,475 94,349,480
Total Net Assessed Taxable Value 768,076,023$ 720,884,253$ 677,761,752$ 663,542,185$ 647,406,788$
(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 # 1 - Original
2010 versus 2009
FY 2010 2009 % Change
Secured: (1)
Land 249,715,896$ 241,759,729$ 3.3%
Improvements 613,769,221$ 610,061,698$ 0.6%
Personal Property 3,399,575$ 5,000,717$ -32.0%
Penalty 0$ 0$ 0.0%
Less Other Exempt (898,089)$ (455,200)$ 97.3%
Less Home Owner Value (49,000)$ (70,000)$ -30.0%
Total Net Assessed Taxable Secured Value 865,937,603$ 856,296,944$ 1.1%
Unsecured:
Land 99$ 1,267$ -92.2%
Improvements 63,627,182$ 69,008,584$ -7.8%
Personal Property 53,892,307$ 60,792,341$ -11.4%
Penalty 0$ 0$ 0.0%
Less Other Exempt (68,471)$ (66,749)$ 2.6%
Total Net Assessed Taxable Unsecured Value 117,451,117$ 129,735,443$ -9.5%
Total Net Assessed Taxable Value 983,388,720$ 986,032,387$ -0.3%
(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 # 1 - Amended
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 1,556,322,273$ 1,646,837,956$ 1,548,363,317$ 1,404,883,142$ 1,221,817,819$
Improvements 3,138,650,280 3,216,329,372 3,098,549,660 2,848,708,294 2,548,978,946
Personal Property 2,462,676 4,295,752 4,850,231 5,159,912 5,081,062
Penalty 0 0 0 0 0
Less Other Exempt (86,825,212) (86,439,305) (84,042,297) (71,117,424) (75,212,626)
Less Home Owner Value (29,699,188) (30,414,878) (30,606,235) (30,941,142) (30,902,546)
Less B Inv Value 0 0 0 0
Total Net Assessed Taxable Secured Value 4,580,910,829 4,750,608,897 4,537,114,676 4,156,692,782 3,669,762,655
Unsecured:
Land 623 56,456 714 781 0
Improvements 33,207,261 37,501,662 36,438,840 38,277,529 33,710,842
Personal Property 59,544,019 67,485,677 62,971,014 57,326,123 51,779,049
Penalty 0 0 0 0 0
Less Other Exempt (7,874,926) (11,366,822) (7,990,591) (3,164,410) (6,306,859)
Total Net Assessed Taxable Unsecured Value 84,876,977 93,676,973 91,419,977 92,440,023 79,183,032
Total Net Assessed Taxable Value 4,665,787,806$ 4,844,285,870$ 4,628,534,653$ 4,249,132,805$ 3,748,945,687$
2005 2004 2003 2002 2001
Secured: (1)
Land 1,099,974,404$ 1,037,831,772$ 964,043,115$ 887,797,124$ 746,195,135$
Improvements 2,322,285,503 2,109,457,532 1,966,604,300 1,742,745,364 1,493,036,846
Personal Property 4,080,748 3,722,255 4,822,804 4,009,942 3,266,563
Penalty 0 0 0 31,999 159,145
Less Other Exempt (72,356,678) (50,011,055) (50,251,474) (55,711,920) (47,407,077)
Less Home Owner Value (31,114,156) (30,819,292) (28,898,212) (28,025,997) (27,838,129)
Less B Inv Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 3,322,869,821 3,070,181,212 2,856,320,533 2,550,846,512 2,167,412,483
Unsecured:
Land 1,449 9,581 135,778 143,855 52,422
Improvements 33,165,394 32,087,933 29,960,052 26,976,720 27,217,181
Personal Property 53,234,502 56,477,588 46,150,607 42,134,507 40,144,238
Penalty 0 0 0 494,612 673,565
Less Other Exempt (6,430,836) (8,791,155) (8,632,424) (9,613,037) (10,316,419)
Total Net Assessed Taxable Unsecured Value 79,970,509 79,783,947 67,614,013 60,136,657 57,770,987
Total Net Assessed Taxable Value 3,402,840,330$ 3,149,965,159$ 2,923,934,546$ 2,610,983,169$ 2,225,183,470$
(1) Secured values include State assessed data
Source: County of Riverside, County Auditor Controller, Assessed Valuations
222
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 1 - Amended
2010 versus 2009
FY 2010 2009 % Change
Secured: (1)
Land 1,556,322,273$ 1,646,837,956$ -5.5%
Improvements 3,138,650,280$ 3,216,329,372$ -2.4%
Personal Property 2,462,676$ 4,295,752$ -42.7%
Penalty 0$ 0$ 0.0%
Less Other Exempt (86,825,212)$ (86,439,305)$ 0.4%
Less Home Owner Value (29,699,188)$ (30,414,878)$ -2.4%
Total Net Assessed Taxable Secured Value 4,580,910,829$ 4,750,608,897$ -3.6%
Unsecured:
Land 623$ 56,456$ -98.9%
Improvements 33,207,261$ 37,501,662$ -11.5%
Personal Property 59,544,019$ 67,485,677$ -11.8%
Penalty 0$ 0$ 0.0%
Less Other Exempt (7,874,926)$ (11,366,822)$ -30.7%
Total Net Assessed Taxable Unsecured Value 84,876,977$ 93,676,973$ -9.4%
Total Net Assessed Taxable Value 4,665,787,806$ 4,844,285,870$ -3.7%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
223
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 566,073,734$ 633,335,921$ 587,058,715$ 521,340,003$ 414,088,670$
Improvements 1,268,066,132 1,367,855,491 1,276,315,674 1,137,488,315 1,043,768,419
Personal Property 670,711 866,004 590,836 6,592,802 6,930,907
Penalty (2)0 0 0 0
Less Other Exempt (8,919,361) (7,964,045) (9,550,463) (7,655,384) (3,292,024)
Less Home Owner Value (3,673,600) (3,724,000) (3,735,200) (3,752,000) (3,752,000)
Less B Inv. Value 0 0 0 0
Total Net Assessed Taxable Secured Value 1,822,217,616 1,990,369,371 1,850,679,562 1,654,013,736 1,457,743,972
Unsecured:
Land 0 2,542 0 0 0
Improvements 14,071,375 18,201,638 5,343,621 6,215,099 4,187,472
Personal Property 34,842,003 29,865,376 20,391,298 19,806,418 12,129,847
Penalty 0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 48,913,378 48,069,556 25,734,919 26,021,517 16,317,319
Total Net Assessed Taxable Value 1,871,130,994$ 2,038,438,927$ 1,876,414,481$ 1,680,035,253$ 1,474,061,291$
FY 2005 2004 2003 2002 2001
Secured: (1)
Land 377,500,739$ 338,504,943$ 298,852,366$ 268,700,076$ 254,353,602$
Improvements 964,730,831 915,313,076 830,436,695 675,455,198 615,751,576
Personal Property 8,309,969 7,136,535 7,539,988 6,840,530 6,545,424
Penalty (2)0 0 0 0 0
Less Other Exempt (3,133,357) (2,979,597) (2,823,135) (2,767,781) (1,213,512)
Less Home Owner Value (3,689,000) (3,316,600) (2,853,200) (2,639,000) (2,623,600)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 1,343,719,182 1,254,658,357 1,131,152,714 945,589,023 872,813,490
Unsecured:
Land 0 0 0 0 0
Improvements 3,853,947 4,482,615 2,799,545 2,910,472 2,417,234
Personal Property 13,891,105 11,486,746 7,626,600 8,438,055 5,921,587
Penalty 0 0 0 115,676 46,458
Total Net Assessed Taxable Unsecured Value 17,745,052 15,969,361 10,426,145 11,464,203 8,385,279
Total Net Assessed Taxable Value 1,361,464,234$ 1,270,627,718$ 1,141,578,859$ 957,053,226$ 881,198,769$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
224
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 2
2010 versus 2009
FY 2010 2009 % Change
Secured: (1)
Land 566,073,734$ 633,335,921$ -10.6%
Improvements 1,268,066,132$ 1,367,855,491$ -7.3%
Personal Property 670,711$ 866,004$ -22.6%
Penalty 0$ 0$ 0.0%
Less Other Exempt (8,919,361)$ (7,964,045)$ 12.0%
Less Home Owner Value (3,673,600)$ (3,724,000)$ -1.4%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,822,217,616 1,990,369,371 -8.4%
Unsecured:
Land 0$ 2,542$ 0.0%
Improvements 14,071,375$ 18,201,638$ -22.7%
Personal Property 34,842,003$ 29,865,376$ 16.7%
Penalty 0$ 0$ 0.0%
Total Net Assessed Taxable Unsecured Value 48,913,378 48,069,556 1.8%
Total Net Assessed Taxable Value 1,871,130,994$ 2,038,438,927$ -8.2%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
225
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 3
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 125,790,120$ 134,147,217$ 119,422,958$ 114,253,170$ 103,496,559$
Improvements 424,745,043 418,977,238 375,240,496 333,347,161 298,197,384
Personal Property 5,011,721 3,308,454 3,629,771 3,893,071 3,890,560
Penalty 0 0 0 0 0
Less Other Exempt (20,847,823) (20,782,445) (19,251,214) (19,311,510) (20,251,190)
Less Home Owner Value (2,371,600) (2,331,000) (2,203,600) (2,206,400) (2,046,800)
Total Net Assessed Taxable Secured Value 532,327,461 533,319,464 476,838,411 429,975,492 383,286,513
Unsecured:
Land 0 0 0 0 370
Improvements 14,220,568 18,796,505 17,795,034 13,109,332 12,424,085
Personal Property 54,874,036 45,622,109 45,542,975 44,899,884 38,091,911
Penalty 0 0 0 0 0
Less Other Exempt (534,431) (549,632) (402,531) (437,726) (434,582)
Total Net Assessed Taxable Unsecured Value 68,560,173 63,868,982 62,935,478 57,571,490 50,081,784
Total Net Assessed Taxable Value 600,887,634$ 597,188,446$ 539,773,889$ 487,546,982$ 433,368,297$
FY 2005 2004 2003 2002 2001
Secured: (1)
Land 91,523,675$ 83,600,129$ 76,423,641$ 70,984,182$ 67,042,691$
Improvements 243,139,587 221,590,995 176,923,362 167,824,429 149,512,375
Personal Property 3,152,374 1,581,880 1,224,360 1,221,819 1,739,556
Penalty 0 0 0 255 40,255
Less Other Exempt (19,430,222) (3,149,364) (2,977,801) (2,868,530) (2,651,190)
Less Home Owner Value (1,974,000) (1,912,400) (1,750,000) (1,687,000) (1,762,600)
Total Net Assessed Taxable Secured Value 316,411,414 301,711,240 249,843,562 235,475,155 213,921,087
Unsecured:
Land 2,138 2,138 2,213 29,325 29,992
Improvements 9,635,015 13,245,112 8,281,641 11,021,570 11,069,151
Personal Property 35,730,772 37,209,995 26,061,080 21,453,363 24,808,691
Penalty 0 0 0 904,695 1,176,179
Less Other Exempt (455,101) (470,220) (459,656) (646,953) (424,328)
Total Net Assessed Taxable Unsecured Value 44,912,824 49,987,025 33,885,278 32,762,000 36,659,685
Total Net Assessed Taxable Value 361,324,238$ 351,698,265$ 283,728,840$ 268,237,155$ 250,580,772$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
226
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 3
2010 versus 2009
FY 2010 2009 % Change
Secured: (1)
Land 125,790,120$ 134,147,217$ -6.2%
Improvements 424,745,043$ 418,977,238$ 1.4%
Personal Property 5,011,721$ 3,308,454$ 51.5%
Penalty 0$ 0$ 0.0%
Less Other Exempt (20,847,823)$ (20,782,445)$ 0.3%
Less Home Owner Value (2,371,600)$ (2,331,000)$ 1.7%
Total Net Assessed Taxable Secured Value 532,327,461 533,319,464 -0.2%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 14,220,568$ 18,796,505$ -24.3%
Personal Property 54,874,036$ 45,622,109$ 20.3%
Penalty 0$ 0$ 0.0%
Less Other Exempt (534,431)$ (549,632)$ -2.8%
Total Net Assessed Taxable Unsecured Value 68,560,173 63,868,982 7.3%
Total Net Assessed Taxable Value 600,887,634$ 597,188,446$ 0.6%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
227
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY 2010 2009 2008 2007 2006
Secured: (1)
Land 571,851,472$ 612,342,380$ 589,549,492$ 538,079,392$ 480,264,736$
Improvements 1,299,807,730 1,338,202,248 1,340,102,309 1,253,230,590 1,145,343,698
Personal Property 3,272,357 3,221,691 4,306,781 895,558 1,037,306
Penalty (2)0 0 0 0 0
Less Other Exempt (3,073,279) (3,034,308) (3,046,149) (2,814,993) (2,988,924)
Less Home Owner Value (14,991,200) (15,250,200) (15,577,800) (15,797,600) (15,874,600)
Less B Inv Value
Total Net Assessed Taxable Secured Value 1,856,867,080 1,935,481,811 1,915,334,633 1,773,592,947 1,607,782,216
Unsecured:
Land 0 0 0 0 0
Improvements 1,383,594 1,404,311 1,372,786 1,581,231 1,606,970
Personal Property 6,284,727 6,296,641 6,712,170 7,973,923 10,276,814
Penalty (2)0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 7,668,321 7,700,952 8,084,956 9,555,154 11,883,784
Total Net Assessed Taxable Value 1,864,535,401$ 1,943,182,763$ 1,923,419,589$ 1,783,148,101$ 1,619,666,000$
FY 2005 2004 2003 2002 2001
Secured: (1)
Land 423,136,913$ 387,894,896$ 363,532,124$ 336,601,532$ 295,636,937$
Improvements 1,060,291,261 1,000,472,990 943,610,707 861,691,896 742,772,488
Personal Property 1,039,548 903,523 1,176,104 1,269,934 1,085,189
Penalty (2)0 0 0 91,675 32,666
Less Other Exempt (2,213,136) (2,236,588) (2,005,855) (1,924,780) (1,240,153)
Less Home Owner Value (16,083,200) (16,032,800) (15,162,000) (14,604,800) (14,263,200)
Less B Inv Value 0 0 0 0
Total Net Assessed Taxable Secured Value 1,466,171,386 1,371,002,021 1,291,151,080 1,183,125,457 1,024,023,927
Unsecured:
Land 0 0 0 0 0
Improvements 2,043,627 1,172,618 1,610,760 1,878,576 2,018,343
Personal Property 4,639,732 3,438,910 6,790,656 8,053,034 8,071,994
Penalty (2)0 0 0 70,495 31,283
Total Net Assessed Taxable Unsecured Value 6,683,359 4,611,528 8,401,416 10,002,105 10,121,620
Total Net Assessed Taxable Value 1,472,854,745$ 1,375,613,549$ 1,299,552,496$ 1,193,127,562$ 1,034,145,547$
(1) Secured values include State assessed data
Source: County of Riverside, County Auditor Controller, Assessed Valuations
228
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 4
2010 versus 2009
FY 2010 2009 % Change
Secured: (1)
Land 571,851,472$ 612,342,380$ -6.6%
Improvements 1,299,807,730$ 1,338,202,248$ -2.9%
Personal Property 3,272,357$ 3,221,691$ 1.6%
Penalty 0$ 0$ 0.0%
Less Other Exempt (3,073,279)$ (3,034,308)$ 1.3%
Less Home Owner Value (14,991,200)$ (15,250,200)$ -1.7%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,856,867,080 1,935,481,811 -4.1%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 1,383,594$ 1,404,311$ -1.5%
Personal Property 6,284,727$ 6,296,641$ -0.2%
Penalty 0$ 0$ 0.0%
Total Net Assessed Taxable Unsecured Value 7,668,321 7,700,952 -0.4%
Total Net Assessed Taxable Value 1,864,535,401$ 1,943,182,763$ -4.0%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
229
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