HomeMy WebLinkAboutComplete CAFR 2011
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year Ended
June 30, 2011
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
SENIOR FINANCIAL ANALYST
Anthony Hernandez
SENIOR OFFICE ASSISTANT
Claudia Jaime
i
CITY OF PALM DESERT
TABLE OF CONTENTS
JUNE 30, 2011
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
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2011
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 121
Other Post-Employment Benefit Plan 121
Schedule 2 - Budgetary Comparison Schedule - General Fund 123
Schedule 3 - Budgetary Comparison Schedule - Prop A Fire Tax
Special Revenue Fund 124
Note to Required Supplementary Information 125
SUPPLEMENTARY SCHEDULES
General Fund: 127
Schedule 4 - Budgetary Comparison Schedule by Department - General Fund 128
Other Governmental Funds - Combining Statements: 133
Schedule 5 - Combining Balance Sheet - Other Governmental Funds 134
Schedule 6 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Governmental Funds 135
Other Governmental Funds - Other Special Revenue: 137
Schedule 7 - Combining Balance Sheet - Other Special Revenue Funds 140
Schedule 8 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Special Revenue Funds 144
iii
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2011
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 148
B. Gas Tax 149
C. Housing Mitigation Fees 150
D. Community Development Block Grant 151
E. Public Safety Police Grants 152
F. El Paseo Assessment District 153
G. City-Wide Business License 154
H. Landscape and Lighting Districts No. 1-17 155
Other Governmental Funds - Other Debt Service: 157
Schedule 10 - Balance Sheet - Other Debt Service Fund 158
Schedule 11 - Statement of Revenues, Expenditures and Changes
in Fund Balance - Other Debt Service Fund 159
Other Governmental Funds - Other Capital Projects: 161
Schedule 12 - Combining Balance Sheet - Other Capital Projects Funds 162
Schedule 13 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Capital Projects Funds 166
Agency Funds: 171
Schedule 14 - Combining Statement of Assets and Liabilities - All Agency Funds 172
Schedule 15 - Combining Statement of Changes in Assets and
Liabilities - All Agency Funds 173
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2011
Page
Number
STATISTICAL SECTION
Description of Statistical Section 175
Financial Trends
Net Assets by Component 176
Changes in Net Assets 177
Fund Balances of Governmental Funds 179
Changes in Fund Balances of Governmental Funds 180
Graphs - Changes in Fund Balances of Governmental Funds 181
Supplemental Historical General Fund Revenues 182
Supplemental Graph - Historical General Fund Revenues 183
Supplemental Historical General Fund Expenditures 184
Supplemental Graph - Historical General Fund Expenditures 185
Supplemental Historical General Revenue and Expenditures Per Capita 187
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property 188
Historical Net Assessed Taxable Values Citywide and
Graph - Assessed Valuation Growth 189
Supplemental FY 2011 and 2010 Breakdown of Basic 1% Property
Tax Rate Not in Redevelopment Project Area 190
Property Tax Rates Direct and Overlapping Property Tax Rates 191
Principal Property Taxpayers 192
Property Tax Levies and Collections 193
Supplemental Top 25 Sales Tax Generators and
Graph - Historical Sales Tax Trends 194
Supplemental Taxable Sales by Category 195
Supplemental Principal Sales Tax Remitters 196
Debt Capacity
Ratios of Outstanding Debt by Type 197
Ratios of General Bonded Debt Outstanding 198
Supplemental Special Assessment Information 199
Direct and Overlapping Government Activities Debt 200
Legal Debt Margin Information 201
Pledged-Revenue Coverage 202
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2011
Page
Number
STATISTICAL SECTION
(CONTINUED)
Demographic and Economic Information
Demographic and Economic Statistics 203
Principal Employers 204
Supplemental Miscellaneous Statistics 205
Operating Information
Full-time Equivalent City Government Employee’s by Function/Program 206
Operating Indicators by Function/Program 207
Capital Asset Statistics by Function/Program 208
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION
Redevelopment Agency Project Area Map 211
FY 2011 Top Twenty Property Taxpayers:
Project Area No. 1 and 1982 Annex 212
Project Area No. 2 213
Project Area No. 3 214
Project Area No. 4 215
Project Area Statistics 216
Tax Allocation Bond Issue Information 217
FY 2010/2011 Breakdown of Basic 1% Property Tax Levy Rates 218
Historical Tax Increment Summary:
Redevelopment Project Area No. 1 - Original 219
Redevelopment Project Area No. 1 - Amended 220
Redevelopment Project Area No. 2 221
Redevelopment Project Area No. 3 222
Redevelopment Project Area No. 4 223
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Original 224
Change in Taxable Values:
Redevelopment Project Area No. 1 - Original 225
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Amended 226
Change in Taxable Values:
Redevelopment Project Area No. 1 - Amended 227
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CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2011
Page
Number
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION (CONTINUED)
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 2 228
Change in Taxable Values:
Redevelopment Project Area No. 2 229
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 3 230
Change in Taxable Values:
Redevelopment Project Area No. 3 231
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 4 232
Change in Taxable Values:
Redevelopment Project Area No. 4 233
vii
December 16, 2011
Citizens of the City of Palm Desert,
Honorable Mayor and Members of the City Council
The Comprehensive Annual Financial Report (CAFR) of the City of Palm Desert for the fiscal year
ended June 30, 2011, is submitted herewith. This report was prepared by the City’s Finance
Department.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control established for this
purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to
provide reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
It is the policy of the City of Palm Desert to have an annual audit performed by an independent
certified public accountant. The independent audit of the City’s financial statements for fiscal year
ended June 30, 2011, was conducted by White Nelson Diehl Evans, LLP as appointed by the City
Council. The auditor’s unqualified (“clean”) opinion on the basic financial statements is included in
the Financial Section of this report.
As part of the City’s annual audit engagement, the auditors reviewed the City’s internal control
structure as well as compliance with applicable laws and regulations. The results of the City’s annual
audit for fiscal year ended June 30, 2011, provided no instances of material weaknesses in connection
with the internal control structure or significant violations of applicable laws and regulations.
As recipients of federal, state and county financial resources, the City of Palm Desert is required to
undergo an annual single audit. When applicable, information related to this single audit, including the
schedule of expenditures of federal awards, findings and recommendations, and auditor’s reports on
the internal control structure and compliance with applicable laws and regulations, is included in a
separately issued report. For the fiscal year ended June 30, 2011, the City is required to have a single
audit performed.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A
complements this letter of transmittal and should be read in conjunction with it.
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
December 16, 2011
viii
CAFR Structure
The format and content of this report is presented in three sections:
Introductory Section - provides the reader with the organizational structure of the City, its
services, and operating environment. This section includes a title page, table of contents, a
letter of transmittal, an organizational chart, a list of the City of Palm Desert’s elected and
appointed officials, and the certificates of award from the Government Finance Officers
Association of the United States and Canada.
Financial Section - presents the City’s independent auditor’s report on the Basic Financial
Statements, the Management’s Discussion and Analysis (MD&A), the Basic Financial
Statements, the notes to the financial statements, the Required Supplementary Information
(RSI), and the non-major supplementary schedules.
Statistical Section - provides the reader with additional historical financial data and other
information concerning the City.
PROFILE OF THE CITY OF PALM DESERT
Located in Riverside County in the geographical center of the Coachella Valley, Palm Desert was
incorporated on November 26, 1973, as a General Law City. Fourteen years later, on
November 4, 1997, voters overwhelmingly approved Measure LL adopting a city charter.
Under the provisions of the charter, the City of Palm Desert has full authority over its own municipal
affairs including: bidding and contracting procedures; regulation of parks, libraries, and other facilities;
certain fees; imposition of taxes; municipal zoning; salaries of officials and employees; municipal
utilities; and municipal election procedures.
The City of Palm Desert operates under a Council-Manager form of government. The City Council
consists of five members elected by the residents of the City. Council terms are four years, and
elections occur in November during even-numbered years. Each November, the City Council selects
the Mayor from among its members for a one-year term. The City Council appoints the City Manager
and the City Attorney.
The City operates as a “contract city”, primarily utilizing agreements with other governmental entities,
private firms, and individuals to provide many services. Contracted services include: police and fire
protection through the County of Riverside; animal control; road maintenance and construction
services; legal services; landscape maintenance; and recreation program services. The City is a
member of the California Joint Powers Insurance Authority that provides insurance coverage for the
City. Waste and recycling services are provided under a franchise agreement with Burrtec Waste and
Recycling Services. The City provides traditional municipal, public enterprise, and redevelopment
services as follows:
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
December 16, 2011
ix
Municipal Services Public Enterprise Services
Public improvements, infrastructure and maintenance Golf course
Public art and community promotion Office complex
Planning, zoning, building and engineering Internal service
Housing and community development
Code enforcement and inspections Blended & Discrete Component
Economic development, business support and energy Units
conservation PD Redevelopment Agency
Legislative, city clerk, visitor center, public information PD Financing Authority
General administration, fiscal services, human resources, PD Housing Authority
and risk management PD Recreational Facilities Corp.
PD Parking Authority
The City maintains budgetary controls. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated budget approved by the City
Council. Activities of the General, Special Revenue, Debt Service, and Capital Project Funds are
included in the annual appropriated budget. Budgetary amounts for Debt Service, Capital Projects, and
certain Special Revenue Funds are adopted annually, however, these budgets are considered to be
long-term in nature.
The City also maintains an encumbrance accounting system of purchase orders and contracts at the
fund level as a means of accomplishing budgetary control. Open encumbrances are reported as a
reservation of fund balance at the end of each fiscal year. Purchase orders are reviewed to ensure that
funds are available and that requests are properly authorized prior to being released to vendors.
The adopted budget for fiscal year 2010-2011 was prepared in accordance with accounting principles
generally accepted in the United States of America. As reflected in the statements and schedules
included in the financial section of this report, the City continues to meet its responsibility for sound
financial management.
LOCAL ECONOMY
The City comprises an area of approximately 26 square miles and, as of January 1, 2011, has a
population of 49,111, according to data provided by the California Department of Finance. In addition
to permanent residents, approximately 20,000 seasonal residents make Palm Desert their home for
three to six months each year.
The City of Palm Desert has cultivated a sound foundation of general fund revenues including sales
tax, transient occupancy tax, licenses and permits, property tax, and investment earnings. Tourism and
sales tax are the City’s main revenue sources.
Citizens of the City of Palm Desert, Honorable Mayor and Members of the City Council
December 16, 2011
x
As a balanced community where economic, environmental, social, and cultural development
flourishes, Palm Desert is a much sought-after place to visit and reside. The first city in Riverside
County to create a public art program, Palm Desert is home to numerous cultural attractions including:
the McCallum Theatre for the Performing Arts, a 1,127-seat theater which hosts some of the biggest
names and well-known productions in show business; The Living Desert wildlife and botanical park, a
1,200-acre facility containing a wide array of plants and animals from desert regions around the world;
and the Palm Desert Art in Public Places program, a museum without walls, featuring more than
100 works of art on permanent display throughout the City.
Palm Desert’s active, five-star accredited Chamber of Commerce has more than 1,100 members who
work to promote, support, and enhance business prosperity, civic vitality, and the quality of life within
their community. Noted for its extensive array of retail options, including the world famous upscale
shopping destination of El Paseo, the City is home to a variety of malls and retail centers including
Westfield Palm Desert, Desert Crossing, The Gardens on El Paseo, and El Paseo Village.
The internationally acclaimed Desert Willow Golf Resort, one of the nation’s premier municipal
courses, boasts 36 holes of championship golf and stunning scenery in close proximity to first-class
hotel accommodations and fine dining.
In addition to being the home of the Coachella Valley’s only community college, College of the
Desert, Palm Desert is the location of two new recently opened satellite campuses for California State
University, San Bernardino and the University of California, Riverside. Both of these institutions of
higher learning offer multiple options for degree programs and continuing education.
The State of California Employment Development Department Labor Market Information Division
reported that the City of Palm Desert had an unemployment rate of 8.67% compared to Riverside
County, which had a rate of 14.44%. The City’s balanced foundation of tourism, culture, and education
has strengthened the City’s labor force as the County tries to rebound from its current economic crisis.
LONG-TERM FINANCIAL PLANNING
In June 2011 the City Council approved a total of $5.99 million in funding for various capital
improvement projects for the fiscal year of 2011-2012. Projects include traffic signals, sidewalk
repairs and construction, accessibility improvements, street widening, improving drainage areas, a new
aquatic facility, and renovations at Desert Willow Golf Resort and two local fire stations.
With all these projects slated for the next fiscal year, it is evident that the City of Palm Desert is
committed to promoting tourism, business, culture, and education in an effort to maintain the high
quality of life that the entire community enjoys.
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CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2011
City Council - Manager Form of Government
CITY COUNCIL
JEAN M. BENSON
Mayor
ROBERT A. SPIEGEL
Mayor Pro-Tempore
CINDY FINERTY JAN C. HARNIK WILLIAM R. KROONEN
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
JOHN M. WOHLMUTH
Executive Director
FUNCTIONAL ORGANIZATION CHART
xi
v
City Attorney
Litigation / Advise City Dept. on Legal Matters
Corporate Secretary to :
City Council
Redevelopment Agency Board
Housing Authority Board
Prepare Agendas & Minutes
Legal Notices
Ordinances & Resolutions
Public Records, Contracts, Deeds
Legislative Historic Documents
Proclamations & Certificates
Summons & Subpoenas
Application & Appointments
Records Maintenance
Legislative Tracking
Library Oversight
Administration
Local Filing Officer
Conflict of Interest
Campaign Statements
Fair Political Practices Duties
Municipal Elections
Oaths of Office
Initiative/Other Petitions
Elections
City Clerk
General Training
Employee Relations
New Employee Orientation
Benefits & Compensation
Employee Assistance Program
New Hires(application/interview/testing)
Perfomance Appraisals
Discipline/Grievances
Compliance with State/Federal Laws
COBRA
Class/Comp. Surveys
Workers Compensation Claims
Retirements
Human Resources
Special Events
Franchise Contract Oversight
Public Safety Commitee
Disaster Preparedness Coordinator
Cal-OSHA Compliance
Safety Programs
Liability Claims
Crossing Guards Coordinator
Facilities/Equip. Inspection
Risk Management
Community Services
City Manager
Special Events
Cadet/Explorer Program
P.A.C.T. Program
Motorcycle Patrol
Canine
Narcotics Task Force
Special Investigation
Gang Suppression
Forensic Services
Crime Prevention
Homicides & Assaults
Domestic Violence
Dispatch Operations
D.A.R.E Program
Accident Investigation
Traffic Patrol
Police Department
Fire Prevention
Fire Marshall
Building Review & Inspections
Paramedics
Search & Rescue
Volunteer Fire Fighters
Training
Special Events
Children Safety Programs
Dispatch
Fire Department
Police & FireDepartment
Contracted with County Sheriff
Contracted with County Fire/State C.D.F.
Annual Financial Statement
General Ledger Reconciliation
Grants Receivables and Control
Redevelopment Project Accounting
CDBG and Housing Accounting
Golf Course and Office Complex Accounting
Accounting
Purchasing
Accounts Payables
Process Police & Fire Purchase Orders/Payments
Process Vendor Payments
Audit Payment Process
Centralized Supplies
City-wide Dues to Organizations
General Services
Cash Receipts
Accounts Receivables
Trust Deposits
Investments
Banking Services
Business License Collection
Trancient Occupancy Tax Collection
Bank Accounts Reconciliation
Treasury & Cash Management
Analyze needs & Specify Systems
Assist with PC Hardware & Software
Support Local Area Networks (LANs)
Support & Run City Computer Business System
Support City Telephone System
Support Golf Course Computers/Telephone
Support Library, Fire & Police Computers/Software
Administer Internet Systems (Electronic mail, web site)
Geographical Information System Mapping (G.I.S.)
Telephone Payments
Copier Repair/Maintenance/ Payments
Information Services
City Payroll Preparation & Distribution
City Internal Audits
Annual City & Agency Budget Preparation
Revenue & Expenditure Monitoring
Financial Forecasting
Administer Outside Agency Committee
Administer Audit/Finance/Investment Committee
Management & Support
Finance Director/Treasurer
Financing of Projects
Redevelopment Implementation
Specific Five-Year Plans
Acquisition & Development
Construction Management
Public Parking Lots
Development Agreements
Infrastructure Improvements
Housing Development
Renovation of Apartment Units
Adaptive Reuse for Existing Structures
Business Outreach/Development
Business Attraction & Retention
Industry/Demographic
Research & Analysis
Bus. Loan Improvement Program
Economic Development
Redevelopment Agency
Rental Assistance
Acquistion & Development
Affordable Monitoring
Neighborhood Clean-ups
Self-help Housing
Rehab Loans
Relocation Assistance
Property Management
Mobile Home Rentals
Emergency Shelter Grants
Housing Authority
City Special Events
Summer Concerts
Promote City Tourism
Community Calendar
Promotions & Advertising
Visitor Information Center
Redevelopment/Housing/Economic
Assistant City Manager
Planning Counter
Environmental Review
Development Review
Zoning Review
Planning Commission Administration
Architect Review Commission Admin.
General & Specific Plan Coordination
Future Use Planning
Planning Division
Complaint Response
Animal Control
Commercial Code Enforcement
Sign Code Enforcement
Abandoned Vehicles
Nuisance Abatement
Recreation Vehicle & illegal Parking
Golf Cart Inspection Program
County Health Department Issues
Business License Enforcement
Code Enforcement
rt in Public Places
Community Development
Building Permit Counter
Structural Plan Check
Disabled Accessibility
State Building Code Compliance
Construction Inspections
Occupancy Inspections
Plumbing & Mechanical Plan Check
Electrical Plan Check
Dangerous & Abandoned Buildings
Substandard Housing
Building & Safety
Public Works
Development Services
City Manager
City Manager
RDA Executive Dir.
Operations Overview/ Project Overview/Energy Management
Personnel/Budget/Policy Development/Citizen & Business Inquiries
Committee and Commissions
Planning Commission / Architect Review Commission
Public Safety / Technology / Legislative / Rent Review / Investment
Golf Course / Landscape / Park & Recreation / RDA Project Area / Housing
MAYOR and
CITY COUNCIL
RESIDENTS OF THE
CITY OF PALM DESERT
FUNCTIONAL ORGANIZATION CHART
xv
Clerical Support
Radio Dispatch
Purchasing
Grants/Contract tracking
General Administrative support
Provide map & plan checking
Analyze & condition
development projects
Issue street work permits
Review environmental
impact reports
Development Services
Coordinate & monitor
CIP implementation
Advocate & promote City's position
on regional transportation CIP
Represent City on regional
transportation issues at
CVAG, SCAG & RCTC
Transportation Services
Administration
Tree trimming, planting,
removal, watering,
fertilization
Pesticide & fungicide
Tree staking
Street Trees
Street sweeping
Street repair
Pothole repair
Sidewalk repairs
Crack sealing
Overlays
Slurry seals
Curb & gutter repairs
Cross gutter repairs
Storm drain/
channel cleaning
Roadway maintenance
Grafitti removal
Painting
Weed abatement
Hazardous waste
Emergency response
City-owned vacant
parcel maintenance
Environmental sanitation
Building Maintenance
Streets &
Building Maint.
Landscape Plan Review
(public & private)
Landscape maintenance
New Capital Projects
design & construction
Urban forestry
Water conservation programs
Special projects
(Earth Day, Arbor Day)
Training of City &
private landscape crews
Landscape Services
Acquisition/replacement
of City vehicles
Tracking maint.
Fueling
Vehicle maint.
Fleet Maint.
Review traffic studies
& reports
Detours & striping plan check
Traffic signal design & operation
Arterial neighborhood traffic plans
Traffic engineering
Develop project scope & budget
Contract administration of
design consultants
Prepaire plans & specs for CIP
Define deferred & preventative
maintenance needs
Right-of-way acquisition
Street abandonments
Property management
Flood control & storm
water runoff
Design engineering
Contract administration of
construction contracts
Inspection of all projects
in public right-of-way
Survey services
Review of plans and specs of
public projects for constructability
Construction engineering
Engineering
Painted striping
Raised pavement markers
Painted curbs
Street & regulatory
signs
Traffic signals
Street lighting
Safety cones &
barricades
Utilities
Traffic Signals
Transportation
Create Parks
Administer contracts
New Walking & Bike Trails
Park & Recreation Committe
Parks & Recreation
PUBLIC WORKS
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2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
- 1 -
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and
Members of the City Council
City of Palm Desert, California
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, 2011, 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, 2011, 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 11, the City has implemented the provisions of Governmental Accounting Standards Board
Statement Number 54, “Fund Balance Reporting and Governmental Fund Type Definitions”, for the year ended
June 30, 2011.
As explained further in Note 20, the California State Legislature has enacted legislation that is intended to
provide for the dissolution of redevelopment agencies in the State of California. The effects of this legislation
are uncertain pending the result of certain lawsuits that have been initiated to challenge the constitutionality of
this legislation.
- 2 -
In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2011,
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.
December 16, 2011
Irvine, California
See independent auditors’ report.
- 3 -
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, 2011 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 $635.83 million (net assets).
• Long-term debt obligations decreased $21.29 million from $408.24 million to $386.95 million.
• The City’s governmental activities net assets decreased $1.29 million, and the net assets of the
business-type activities increased $5.82 million.
• During the year, the City’s revenues were $147.11 million and expenses were $142.48 million in
its governmental activities compared to fiscal year 2010, where expenses were $16.59 million
greater than revenues.
• In the City’s business-type activities, expenses were $0.23 million more than the $8.58 million
generated in green fees, merchandise sales, rental income and other revenues compared to the
prior year, where business-type activities revenues were $0.61 million less than its expenses.
• The City’s governmental activities program revenues and general revenues decreased by $6.85
million, or 4.4 percent from prior year, while program expenses decreased $28.07 million, or 16.4
percent from prior year, which is due to the decrease in the Supplemental Education Relief
Augmentation Fund (SERAF) obligation enacted by the State of California. The payment made in
fiscal year 2010 was $25.52 million and payment made for fiscal year 2011 was $5.26 million.
• Business-type activities revenues increased by $0.48 million, from $8.10 million to $8.58 million.
Expenses increased by $0.10 million from the prior year.
• The revenues available for expenditures were $1.25 million more than budgeted in the General
Fund. The City kept General Fund expenditures within spending limits by $3.25 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.
- 4 -
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.
- 5 -
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 increased $4.53 million from $631.30 million to $635.83 million. A
separate review of the net change in the governmental and business-type activities is provided for the
reader. Our analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City’s
governmental and business-type activities.
2011 2010 2011 2010 2011 2010
Current and restricted assets 466.11$ 499.18$ 4.97$ 5.40$ 471.08$ 504.58$
Capital assets 539.15 541.94 75.08 68.23 614.23 610.17
TOTAL ASSETS 1,005.26 1,041.12 80.05 73.63 1,085.31 1,114.75
Long-term liabilities
outstanding 385.91 407.91 1.04 0.33 386.95 408.24
Other liabilities 61.63 74.20 0.90 1.01 62.53 75.21
TOTAL LIABILITIES 447.54 482.11 1.94 1.34 449.48 483.45
Net assets:
Invested in capital
assets, net of
related debt 302.76 304.70 74.04 67.90 376.80 372.60
Restricted 147.65 143.39 - - 147.65 143.39
Unrestricted 107.31 110.92 4.07 4.39 111.38 115.31
TOTAL NET
ASSETS 557.72$ 559.01$ 78.11$ 72.29$ 635.83$ 631.30$
TABLE 1
NET ASSETS
As of June 30, 2011 and 2010
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
See independent auditors’ report.
- 6 -
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200
400
600
800
1,000
1,200
2011 2010 2011 2010 2011 2010
Governmental
Activities
Business‐Type
Activities
Total
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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 0.2 percent, or
$1.29 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 19.2 percent of the overall total net assets. Unrestricted net assets decreased
$3.61 million from $110.92 million in 2010 to $107.31 million in 2011. This is an indication that the City’s
Governmental Activities financial position recognized a decline from prior year. The City has $3.61 million
less of unrestricted funds that can be used to finance its operations. The decrease is attributable to
transfers out from the General Fund to establish and replenish reserve balances that are not included
under unrestricted net assets.
The increase in restricted net assets of $4.26 million was due to the following: restricted capital projects
decreased by $2.16 million due to capital projects expenses; restricted special projects increased by
$6.91 million due to the increase in the RDA Low-Income Housing fund and Housing Authority fund of
$5.94 million. The majority of the capital projects for the RDA Low-Income Housing Fund were in the
design stage of construction during fiscal year 2010/2011. For fiscal year 2011/12 its capital budget
including carryover is $32.36 million; restricted debt projects decreased $0.49 million due to the SERAF
payment that was required to be made to the State of California.
Investment in capital assets, net of related debt decreased $1.94 million. Major additions included land
acquisitions of open space, infrastructure projects that include street widening and improvement projects;
aquatic center construction; and renovation of the City-owned golf resort (see Note 5).
The net assets of the business-type activities recognized an increase of $5.82 million, from $72.29 million
to $78.11 million. The major factor for this year’s increase was the net effect of the capitalization of the
improvements to the Clubhouse Kitchen, Terrace and indoor dining area, and the parking lot expansion in
the amount of $6 million. Long term liabilities for Desert Willow increased by $0.71 million as a result of
$1.10 million of capital leases executed for new Golf Cart Fleet, GPS golf cart system, and additional golf
course equipment.
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 $33.07 million, with the
majority of the change coming from the reduction in cash and investments. The reduction in cash and
investments was the cause of the City and Agency starting and completing various capital projects. In
addition, the Agency was required to pay the State of California $5.26 million for its SERAF obligation and
made payments in the current year that reduced its obligation to pass-through agencies.
See independent auditors’ report.
- 7 -
Total liabilities decreased by $34.57 million. There was a $22 million reduction due to the retirement of
debt, and a decrease of $12.57 million in other liabilities. The decrease in other liabilities represents the
change in amounts due under pass-through agreements that decreased from $60.68 million to $44.34
million. The City’s Redevelopment Agency retains funds in trust that are distributed at year end. These
funds are held on behalf of other taxing agencies related to specific pass-through agreements (see note
9).
See independent auditors’ report.
- 8 -
2011 2010 2011 2010 2011 2010
REVENUES:
Program Revenues:
Charges for services 18.21$ 17.87$ 8.56$ 8.04$ 26.77$ 25.91$
Operating grants and
contributions 5.68 6.56 - - 5.68 6.56
Capital grants and
contributions 2.26 2.72 - - 2.26 2.72
General Revenues:
Property taxes 5.18 5.42 - - 5.18 5.42
Tax increment (net of pass-through) 84.54 92.05 - - 84.54 92.05
Transient occupancy tax 7.42 6.85 - - 7.42 6.85
Sales tax 14.73 13.69 - - 14.73 13.69
Other taxes 3.00 2.86 - - 3.00 2.86
Investment earnings 2.16 2.92 0.02 0.06 2.18 2.98
Contribution not restricted for
special purpose 0.76 0.64 - - 0.76 0.64
Other revenues 3.17 2.38 - - 3.17 2.38
TOTAL REVENUES 147.11 153.96 8.58 8.10 155.69 162.06
EXPENSES:
General government 17.18 16.70 - - 17.18 16.70
Housing and redevelopment 15.97 16.22 - - 15.97 16.22
Public safety 26.60 27.03 - - 26.60 27.03
Parks, recreation and culture 7.34 7.31 - - 7.34 7.31
Public works 16.98 19.90 - - 16.98 19.90
Payments to other agencies 39.42 63.32 - - 39.42 63.32
Interest on long-term debt 18.99 20.07 - - 18.99 20.07
Golf Course-Desert Willow - - 7.95 7.83 7.95 7.83
Office Complex-Parkview - - 0.86 0.88 0.86 0.88
TOTAL EXPENSES 142.48 170.55 8.81 8.71 151.29 179.26
INCREASE (DECREASE ) IN NET
ASSETS BEFORE TRANSFERS 4.63 (16.59) (0.23) (0.61) 4.40 (17.20)
Transfers (6.05) 0.05 6.05 (0.05) - -
INCREASE (DECREASE) IN NET ASSETS (1.42) (16.54) 5.82 (0.66) 4.40 (17.20)
BEGINNING NET ASSETS, AS RESTATED 559.14 575.55 72.29 72.95 631.43 648.50
ENDING NET ASSETS 557.72$ 559.01$ 78.11$ 72.29$ 635.83$ 631.30$
TABLE 2
CHANGES IN NET ASSETS
As of June 30, 2011 and 2010
TotalActivities
Business-TypeGovernmental
Activities
(IN MILLIONS)
See independent auditors’ report.
- 9 -
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200
300
400
500
600
700
2010 2011
Governmental Activities
Do
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10
20
30
40
50
60
70
80
90
2010 2011
Business‐Type Activities
Beginning Net
Assets
Total Revenues
Ending Net Assets
Total Expenses
Table 2- Graph
Changes in Net Assets
Governmental Activities
Total revenue decreased from $153.96 million to $147.11 million, a 4.5 percent decrease. The decrease
is the result of an 8.16 percent decrease in tax increment of $7.51 million, and a $0.76 million decrease in
investment earnings. Factors that contributed to the changes in revenues are as follows:
• Decrease in tax increment due to declining assessed property values, and
• Decrease in City’s earnings due to lower yields in investments related to the current economic
condition.
Total expenses decreased from $170.55 million to $142.48 million. The major factor contributing to the
change in expenses was the payment to the State of California for the SERAF obligation of $5.26 million
which is included in the payments to other agencies expenditures. The payment made in fiscal year 2010
was $25.52 million.
See independent auditors’ report.
- 10 -
11%
10%
14%
5%
9%
35%
16%
2011
Governmental Activities
Net (Expense) Revenue
The following schedule represents the net cost of providing services:
Governmental Activities
Net (Expense) Revenue
(In Millions)
Business-type Activities
Business-type activities revenues increased by $0.48 million from $8.10 million to $8.58 million, a 5.9
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. Other revenues increased by Desert Willow were
increases in merchandise sales from the proshop and lessons at the golf learning center. The Parkview
Office Complex revenues remained consistent with the prior year.
Operating expenses for business-type activities increased from $8.71 million to $8.81 million, an increase
of 1.1 percent. The majority of the increase was related to general and administration expenses at the
golf resort and increased depreciation for the Parkview Office Complex. The changes implemented by
Desert Willow and the Parkview Office Complex two years ago in response to the economic downturn
have continued to keep the overall expenditures from increasing significantly.
2011 2010
General government
Housing and redevelopment
($12.87)
(11.04)
($11.24)
(11.23)
Public safety (16.55) (17.30)
Parks, recreation and culture (6.57) (6.69)
Public works
Payments to other agencies
(10.90)
(39.42)
(13.55)
(63.32)
Interest on long term debt (18.99) (20.07)
Total ($116.34) ($143.40)
12%
4%
12%
4%
9%
45%
14%
2010
Governmental Activities
Net (Expense) Revenue
General government
Housing and
redevelopment
Public safety
Parks, recreation &
culture
Public works
Payments to other
agencies
Interest on long term
debt
See independent auditors’ report.
- 11 -
THE CITY’S FUNDS
On page 20, the governmental funds balance sheet is shown. The combined fund balance of $382.43
million decreased from $404.09 million, or 5.4 percent. This total includes the General Fund balance of
$74.22 million, which decreased by $3.35 million from prior year. The City’s General Fund balance has a
nonspendable balance of $2.94 million, which includes advances, loans and notes, inventory, and prepaid
cost; $4.50 million in assigned fund balance and $66.78 million of unassigned fund balance. The change
in the General Fund’s balance was due to transfers out to other funds to establish and replenish reserve
balances. 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 $5.26 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 decreased
due to the transfers out to the housing authority fund for capital replacement reserve.
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 $44.16 million were $1.25 million more than the
final budgeted revenues of $42.91 million. Sales and transient occupancy taxes continue to be the top
two revenue generators for the City and exceed budgeted revenues by $2.20 million.
The General Fund actual ending expenditures of $47.51 million were $3.25 million less than the final
budget of $50.76 million. There were changes in the original budget compared to the final budget during
the year. The original expenditure budget was $42.91 million compared to the final budget of $50.76
million, a $7.85 million increase. The major change was due to the appropriations of an additional $5.72
million in transfers out for the establishment and replenishment of reserve.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2011, the City had $614.23 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 increase (including additions and deductions) of $4.06
million over the prior year.
See independent auditors’ report.
- 12 -
‐
100
200
300
400
500
600
700
2011 2010 2011 2010 2011 2010
Governmental Activities Business‐Type Activities Total
Do
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Table 3 ‐Graph
Capital Assets at Year‐End
(Net of Depreciation in Millions)
Land
Construction in Progress
Buildings and Improvements
Equipment
Infrastructure
Totals
2011 2010 2011 2010 2011 2010
Land 129.34$ 126.89$ 53.15$ 52.62$ 182.49$ 179.51$
Construction-in-progress 18.24 18.70 - - 18.24 18.70
Buildings and improvements
other than buildings 116.40 115.64 20.03 14.75 136.43 130.39
Machinery and equipment 2.51 3.07 1.90 0.86 4.41 3.93
Infrastructure 272.66 277.64 - - 272.66 277.64
TOTALS 539.15$ 541.94$ 75.08$ 68.23$ 614.23$ 610.17$
TABLE 3
CAPITAL ASSETS AT YEAR-END
For the years ended June 30, 2011 and 2010
TotalActivities
Business-TypeGovernmental
Activities
(NET OF DEPRECIATION, IN MILLIONS)
This year’s major additions included (in millions):
Land acquisitions $ 2.04
Aquatic facility 8.46
Street improvements 2.81
Equipment purchases .42
Affordable units .29
$ 14.02
See independent auditors’ report.
- 13 -
The City’s fiscal year 2012 capital budget calls for it to spend an additional $5.99 million plus continuing
capital projects spending of $123.26 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 $385.91 million in bonds, notes, contracts, and
compensated absences versus $407.91 million last year, a decrease of $22 million as shown in Table 4.
The major cause for the decrease was the re-payment of principal of tax allocation bonds by the Agency.
2011 2010 2011 2010 2011 2010
Compensated absences payable 2.33$ 2.16$ -$ -$ 2.33$ 2.16$
Notes payable 0.12 0.25 - - 0.12 0.25
Capital leases - - 1.04 0.33 1.04 0.33
Claims and judgements payable 0.47 0.89 - - 0.47 0.89
Special assessments debt with
government commitment 1.66 1.72 - - 1.66 1.72
Limited Obligation Improvement
bonds 2.79 3.15 - - 2.79 3.15
Lease revenue bond 5.10 5.23 - - 5.10 5.23
Tax allocation bonds 373.44 394.51 - - 373.44 394.51
TOTALS 385.91$ 407.91$ 1.04$ 0.33$ 386.95$ 408.24$
TABLE 4
OUTSTANDING DEBT, AT YEAR-END
For the years ended June 30, 2011 and 2010
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.
The City’s business-type activities debt increased by $0.71 million from $0.33 million to $1.04 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 increase in the City’s business-type activities debt was directly related to the new lease
contracts executed during the fiscal year for a new golf cart fleet, new GPS Golf Cart System, and new
maintenance equipment. During the next five years, the debt for the business-type activities will be fully
amortized. More detailed information about the City’s long-term liabilities is presented in Note 6 to the
financial statements.
See independent auditors’ report.
- 14 -
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for fiscal year 2012, 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 City also considered the possibility that the Governor of California may attempt to enact
legislation to eliminate redevelopment agencies across the State to solve the State’s budget
crisis. More detailed information about the City actions related to these two budget bills is
presented in Note 20 of the financial statements.
The 2012 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 2011-2012 financial plan can be obtained by contacting the City’s
Finance Department or on the City’s website at www.cityofpalmdesert.org.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors
with a general overview of the City’s finances and to show the City’s accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
City’s Finance Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California
92260-2578, or (760) 346-0611.
Exhibit A
Componen
Uni
Palm Desert
Recreational
Governmental Business-typ Facilities
Activities Activities Total Corporatio
Cash and investments 269,243,492$ 3,904,928$ 273,148,420$ 187,609$
Receivables:
Accounts 2,153,939 62,226 2,216,165 9,235
otes 1,658,000 - 1,658,000 -
Interest 1,082,855 - 1,082,855 -
Loans 14,185,017 - 14,185,017 -
Internal balances 500,000 (500,000) - -
Prepaid costs 714,204 67,436 781,640 8,622
Inventories 25,631 220,236 245,867 45,349
Due from other government 4,304,496 22,350 4,326,846 -
Property held for resale 2,983,412 - 2,983,412 -
Due from component uni 285,000 1,195,297 1,480,297 -
Unamortized debt issuance costs 9,469,908 - 9,469,908 -
Deferred asset from derivative instruments 171,598 - 171,598 -
Restricted assets:
Cash with fiscal agen 151,606,153 - 151,606,153 -
et OPEB asset 7,734,617 - 7,734,617 -
Capital assets, not being depreciated 268,288,221 53,150,057 321,438,278 -
Capital assets, net of depreciation 270,857,333 21,929,083 292,786,416 -
TOTAL ASSETS 1,005,263,876 80,051,613 1,085,315,489 250,815
Accounts payable 10,879,357 574,689 11,454,046 64,521
Accrued liabilities 572,533 96,837 669,370 25,654
Interest payable 4,916,420 - 4,916,420 -
Unearned revenues 169,896 207,420 377,316 54,198
Deposits payable 581,533 24,904 606,437 -
Due to primary governmen - - - 1,480,297
Liability from derivative instrument 171,598 - 171,598 -
Amounts due unde
ass-through agreemen 44,341,716 - 44,341,716 -
Long-term liabilities:
Due within one yea 16,637,707 215,945 16,853,652 -
Due in more than one yea 369,273,562 819,776 370,093,338 -
TOTAL LIABILITIES 447,544,322 1,939,571 449,483,893 1,624,670
ET ASSETS:
Invested in capital assets,
net of related debt 302,757,128 74,043,419 376,800,547 -
Restricted for:
Special projects 79,945,396 - 79,945,396 -
Debt service 2,550,054 - 2,550,054 -
Capital projects 65,152,974 - 65,152,974 -
Unrestricted (deficit) 107,314,002 4,068,623 111,382,625 (1,373,855)
TOTAL NET ASSETS DEFICIT 557,719,554$ 78,112,042$ 635,831,596$ 1,373,855$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
- 15 -
Primary Government
STATEMENT OF NET ASSETS
June 30, 2011
ASSETS:
LIABILITIES:
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
Primary Government:
Governmental activities:
General government 17,182,987$ 1,921,573$ 1,065,386$ 1,323,014$
Housing and redevelopment 15,976,383 4,935,422 - -
Public safety 26,601,668 9,825,352 104,510 118,899
Parks, recreation and culture 7,337,403 768,786 - 358
Public works 16,984,334 762,015 4,505,881 813,122
Payments to other agencies 39,418,936 - - -
Interest on long term debt 18,989,167 - - -
Total governmental activities 142,490,878 18,213,148 5,675,777 2,255,393
Business-type activities:
Desert Willow Golf Course 7,946,063 7,338,640 - -
Office Complex - Parkview 861,786 1,217,985 - -
Total business-type activities 8,807,849 8,556,625 - -
Total primary governmen 151,298,727$ 26,769,773$ 5,675,777$ 2,255,393$
Component Unit:
Palm Desert Recreational Facilities Corp. 2,390,832$ 1,983,633$ -$ -$
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, as restated
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, 2011
Functions/Programs
Program Revenue
Exhibit B
Component
Unit
Palm Desert
Recreational
Governmental Business-type Facilities
Activities Activities Total Corporation
(12,873,014)$ -$ (12,873,014)$ -$
(11,040,961) - (11,040,961) -
(16,552,907) - (16,552,907) -
(6,568,259) - (6,568,259) -
(10,903,316) - (10,903,316) -
(39,418,936) - (39,418,936) -
(18,989,167) - (18,989,167) -
(116,346,560) - (116,346,560) -
- (607,423) (607,423) -
- 356,199 356,199 -
- (251,224) (251,224) -
(116,346,560) (251,224) (116,597,784) -
- - - (407,199)
5,176,075 - 5,176,075 -
84,542,493 - 84,542,493 -
7,421,769 - 7,421,769 -
14,732,444 - 14,732,444 -
2,771,594 - 2,771,594 -
236,211 - 236,211 -
2,158,556 22,559 2,181,115 -
762,588 - 762,588 -
3,169,977 - 3,169,977 -
(6,046,761) 6,046,761 - -
114,924,946 6,069,320 120,994,266 -
(1,421,614) 5,818,096 4,396,482 (407,199)
559,141,168 72,293,946 631,435,114 (966,656)
557,719,554$ 78,112,042$ 635,831,596$ (1,373,855)$
- 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 72,470,291$ 1,552,083$ 23,896,294$
Receivables:
Accounts 1,292,791 - 49,577
Assessments - - -
Notes 1,658,000 - -
Interest 386,292 - 67,270
Loans 140,739 - 7,324,592
Prepaid costs 536,578 - 130
Due from other governments 2,632,621 518,220 -
Due from other funds - - -
Advances to other funds 2,636,000 - 17,821,288
Inventories 23,533 - -
Property held for resale - - 2,685,387
Due from component unit 285,000 - -
Restricted assets:
Cash and investments with fiscal agent - - 24,647,938
TOTAL ASSETS 82,061,845$ 2,070,303$ 76,492,476$
LIABILITIES:
Accounts payable 4,563,056$ 996,477$ 17,368$
Accrued liabilities 424,794 - 32,280
Due to other funds - - -
Unearned revenues - - 6,796
Advances from other funds - - -
Deferred revenue 2,856,572 - 36,493
Amounts due under pass-through agreements - - -
Deposits payable - - 500
TOTAL LIABILITIES 7,844,422 996,477 93,437
FUND BALANCES:
Nonspendable 2,939,850 - 27,831,397
Restricted - 1,073,826 48,567,642
Committed - - -
Assigned 4,501,159 - -
Unassigned 66,776,414 - -
TOTAL FUND BALANCES 74,217,423 1,073,826 76,399,039
TOTAL LIABILITIES AND FUND BALANCES 82,061,845$ 2,070,303$ 76,492,476$
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, 2011
Exhibit C
RDA RDA RDA Other Total
Financing Debt Capital Governmental Governmental
Authority Service Projects Funds Funds
-$ 80,677,150$ 5,984,206$ 78,513,395$ 263,093,419$
- 124,001 57,584 629,986 2,153,939
- - - 1,509,558 1,509,558
- - - - 1,658,000
7,761 - 345,023 276,509 1,082,855
- - 1,200,000 5,519,686 14,185,017
- - 177,190 306 714,204
- - - 1,153,655 4,304,496
- 3,979,739 - 500,000 4,479,739
- - - 10,919,000 31,376,288
- - - 2,098 25,631
- - - 298,025 2,983,412
- - - - 285,000
8,295,750 - 94,645,074 24,017,391 151,606,153
8,303,511$ 84,780,890$ 102,409,077$ 123,339,609$ 479,457,711$
-$ 7,938$ 2,827,724$ 2,494,630$ 10,907,193$
- - 53,493 61,966 572,533
- - 3,979,739 - 3,979,739
- - - 163,100 169,896
- 31,376,288 - - 31,376,288
- - - 2,207,621 5,100,686
- 44,341,716 - - 44,341,716
- - 15,000 566,033 581,533
- 75,725,942 6,875,956 5,493,350 97,029,584
- - 1,377,190 11,717,331 43,865,768
8,303,511 9,054,948 94,155,931 69,467,196 230,623,054
- - - 17,285,733 17,285,733
- - - 19,375,999 23,877,158
- - - - 66,776,414
8,303,511 9,054,948 95,533,121 117,846,259 382,428,127
8,303,511$ 84,780,890$ 102,409,077$ 123,339,609$ 479,457,711$
Debt Service Funds
- 21 -
- 22 -
THIS PAGE INTENTIONALLY LEFT BLANK
Exhibit D
Total fund balance for governmental funds 382,428,127$
Amounts reported for governmental activities in the Statement of Net Assets ar
different because:
When capital assets (land, buildings, equipment, etc.) that are to be used in
governmental activities are purchased or constructed, the costs of those asset
are reported as expenditures in governmental funds. However, the Statemen
of Net Assets includes those capital assets and contribution among the asset
of the City as a whole:
Beginning Balance, net depreciation, as restated 540,638,584$
Current year additions 14,205,889
Current year deletions (4,967,018)
Current year depreciation (11,909,908)
Ending Balance, net depreciation 537,967,547
Deferred asset from derivative instruments 171,598
Long-term debt activities and compensated absences have not been include
in the governmental fund activities:
Long-term deb (378,397,941)
Bond premiu (6,423,834)
Unamortized loss on defeasance 1,238,105
Compensated absences (2,327,599)
Interest on long-term debt is not accrued in governmental funds, but rather i
recognized as an expenditure when due. (4,888,584)
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. 9,469,908
Liability from derivative instrument (171,598)
Because the focus of governmental funds is on short-term financing, some asset
will not be available to pay for current-period expenditures. Those assets (fo
example, receivables) are offset by deferred revenues in the governmental funds
and, thus, are not included in fund balance:
Palm Desert Recreational Facilities Corporation - relates to the amount of ren
owed by component unit to City's General Fun 285,000
Community Development Block Grant - relates to loans given to low
to moderate income familie 13,310
Capital reimbursement from developer for work completed by the City
on behalf of the develope 459,724
Interest that was not paid at year-en 308,247
Sales tax 469,847
Redevelopment Agency land purchase from Cit 2,055,000
3,591,128
Other post employment benefit asset is not available to fund current expenditure
for governmental funds and therefore is not reported as an asset in the
governmental funds.7,734,617
Internal service fund are used by management to charge the costs of certai
activities, such as equipment to individual funds. The assets and liabilities
of the internal service fund must be added to the Statement of Net Assets. 7,328,080
et assets of governmental activitie 557,719,554$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
June 30, 2011
- 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 35,933,144$ 5,237,952$ -$
Special assessments collected - 2,134,244 -
Licenses and permits 1,051,475 - -
Intergovernmental revenues 2,226,534 787,806 -
Rental income 154,187 - 1,993
Charges for services 701,481 - -
Investment earnings 793,461 13,348 424,532
Fines and forfeitures 109,110 - -
Miscellaneous 500,152 41,899 420,973
TOTAL REVENUES 41,469,544 8,215,249 847,498
EXPENDITURES:
Current:
General government 11,260,339 - -
Housing and redevelopment - - 1,633,874
-- - -
STATEMENT OF REVENUES, EXPENDITURES AND
CITY OF PALM DESERT
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the year ended June 30, 2011
Special Revenue Funds
- - - -
Public safety 17,571,739 9,107,998 -
Parks, recreation and culture 3,845,901 - -
Public works 8,525,528 - -
Capital outlay 629,784 53,274 995
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
TOTAL EXPENDITURES 41,833,291 9,161,272 1,634,869
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (363,747) (946,023) (787,371)
OTHER FINANCING SOURCES (USES):
Transfers in 2,691,634 - 16,365,307
Transfers out (5,679,432) - (17,133,573)
TOTAL OTHER FINANCING
SOURCES (USES) (2,987,798) - (768,266)
NET CHANGE IN FUND BALANCES (3,351,545) (946,023) (1,555,637)
FUND BALANCES - BEGINNING OF YEAR 77,568,968 2,019,849 77,954,676
FUND BALANCES - END OF YEA 74,217,423$ 1,073,826$ 76,399,039$
See independent auditors' report and notes to basic financial statements.
- 24 -
Exhibit E
RDA RDA RDA Other Total
Financing Debt Capital Governmental Governmental
Authority Service Projects Funds Funds
-$ 80,977,560$ -$ 2,523,406$ 124,672,062$
- - - 1,127,919 3,262,163
- - - 38,068 1,089,543
- - - 4,590,942 7,605,282
- - 126,593 4,728,432 5,011,205
- - - - 701,481
40,401 384,537 453,025 993,345 3,102,649
- - - 201,730 310,840
- 260,784 179,688 1,692,193 3,095,689
40,401 81,622,881 759,306 15,896,035 148,850,914
- 48,303 - 3,964,443 15,273,085
- - 11,624,488 4,775,214 18,033,576
-- -
Debt Service Funds
- ,, - - ,,
- - - 144,697 26,824,434
- - - - 3,845,901
- - - 2,730,971 11,256,499
- - 9,558,462 3,963,374 14,205,889
22,240,000 122,707 - 552,000 22,914,707
17,237,994 578,630 - 359,830 18,176,454
39,477,994 40,168,576 21,182,950 16,490,529 169,949,481
(39,437,593) 41,454,305 (20,423,644) (594,494) (21,098,567)
31,591,763 - 4,725,937 14,620,956 69,995,597
(5,097) (42,415,330) (845,502) (4,476,663) (70,555,597)
31,586,666 (42,415,330) 3,880,435 10,144,293 (560,000)
(7,850,927) (961,025) (16,543,209) 9,549,799 (21,658,567)
16,154,438 10,015,973 112,076,330 108,296,460 404,086,694
8,303,511$ 9,054,948$ 95,533,121$ 117,846,259$ 382,428,127$
- 25 -
Exhibit G
Major Other
Fund Fund Governmental
Desert Parkview Total Activities-
Willow Office Enterprise Internal
Golf Course Complex Funds Service Fund
CURRENT ASSETS:
Cash and investments 892,292$ 3,012,636$ 3,904,928$ 6,150,073$
Receivables:
Accounts 18,459 43,767 62,226 -
Prepaid costs 67,166 270 67,436 -
Due from other governments - 22,350 22,350 -
Inventories 220,236 - 220,236 -
Due from component unit (PDRFC) 1,195,297 - 1,195,297 -
TOTAL CURRENT ASSETS 2,393,450 3,079,023 5,472,473 6,150,073
CAPITAL ASSETS:
Nondepreciable 53,150,057 - 53,150,057 -
Depreciable, net 13,147,269 8,781,814 21,929,083 1,178,007
CAPITAL ASSETS, NET 66,297,326 8,781,814 75,079,140 1,178,007
TOTAL ASSETS 68,690,776 11,860,837 80,551,613 7,328,080
CURRENT LIABILITIES:
Accounts payable 415,506 159,183 574,689 -
Accrued liabilities 96,837 - 96,837 -
Deposits payable - 24,904 24,904 -
Unearned revenues 198,612 8,808 207,420 -
Due to other funds 500,000 - 500,000 -
Current portion - capital leases 215,945 - 215,945 -
TOTAL CURRENT LIABILITIES 1,426,900 192,895 1,619,795 -
NONCURRENT LIABILITIES:
Capital leases 819,776 - 819,776 -
TOTAL NONCURRENT LIABILITIES 819,776 - 819,776 -
TOTAL LIABILITIES 2,246,676 192,895 2,439,571 -
Invested in capital assets, net of related debt 65,261,605 8,781,814 74,043,419 1,178,007
Unrestricted 1,182,495 2,886,128 4,068,623 6,150,073
TOTAL NET ASSETS 66,444,100$ 11,667,942$ 78,112,042$ 7,328,080$
See independent auditors' report and notes to basic financial statements.
CITY OF PALM DESERT
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2011
- 27 -
Enterprise Funds
Business-type Activities-
LIABILITIES
NET ASSETS
ASSETS
Exhibit H
Major Other
Fund Fund Governmental
Desert Parkview Total Activities-
Willow Office Enterprise Internal
Golf Course Complex Funds Service Fund
OPERATING REVENUES:
Fees and rentals 6,369,671$ 993,385$ 7,363,056$ 130,175$
Merchandise sales 968,969 - 968,969 -
Miscellaneous - 224,600 224,600 -
TOTAL OPERATING REVENUES 7,338,640 1,217,985 8,556,625 130,175
OPERATING EXPENSES:
Maintenance and operations 4,488,067 247,988 4,736,055 -
Cost of merchandise 403,955 - 403,955 -
General and administrative 2,159,173 230,971 2,390,144 -
Depreciation and amortization 841,401 382,827 1,224,228 343,145
TOTAL OPERATING EXPENSES 7,892,596 861,786 8,754,382 343,145
OPERATING INCOME (LOSS) (553,956) 356,199 (197,757) (212,970)
NONOPERATING REVENUES (EXPENSES):
Interest revenue 237 22,322 22,559 32,912
Interest expense (44,546) - (44,546) -
Gain (loss) on disposal of capital assets (8,921) - (8,921) (31,274)
TOTAL NONOPERATING
REVENUES (EXPENSES) (53,230) 22,322 (30,908) 1,638
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS
AND TRANSFERS (607,186) 378,521 (228,665) (211,332)
CAPITAL CONTRIBUTIONS 6,486,761 - 6,486,761 52,594
TRANSFERS IN - - - 1,000,000
TRANSFERS OUT - (440,000) (440,000) -
CHANGE IN NET ASSETS 5,879,575 (61,479) 5,818,096 841,262
NET ASSETS - BEGINNING OF YEAR 60,564,525 11,729,421 72,293,946 6,486,818
ET ASSETS - END OF YEAR 66,444,100$ 11,667,942$ 78,112,042$ 7,328,080$
See independent auditors' report and notes to basic financial statements.
For the year ended June 30, 2011
- 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 Parkview Total Activities-
Willow Office Enterprise Internal
Golf Course Complex Funds Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers 7,027,513$ 1,216,974$ 8,244,487$ -$
Payments to suppliers (3,990,247) (345,770) (4,336,017) -
Payments for contract (3,402,615) - (3,402,615) -
Receipts from interfund services - - - 130,175
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES (365,349) 871,204 505,855 130,175
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Cash recieved from other funds 500,000 - 500,000 1,000,000
Cash paid to other funds - (440,000) (440,000) -
NET CASH PROVIDED (USED)
BY NONCAPITAL AND
RELATED ACTIVITIES 500,000 (440,000) 60,000 1,000,000
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets (19,586) (489,683) (509,269) (77,577)
Principal paid on leases (413,049) - (413,049) -
Interest paid on leases (29,587) - (29,587) -
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (462,222) (489,683) (951,905) (77,577)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends 237 22,322 22,559 32,912
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (327,334) (36,157) (363,491) 1,085,510
CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 1,219,626 3,048,793 4,268,419 5,064,563
CASH AND CASH EQUIVALENTS -
END OF YEAR 892,292$ 3,012,636$ 3,904,928$ 6,150,073$
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, 2011
Enterprise Funds
Business-type Activities-
- 29 -
Exhibit I
Major Other
Fund Fund Governmental
Desert Parkview Total Activities-
Willow Office Enterprise Internal
Golf Course Complex Funds Service Funds
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss) (553,956)$ 356,199$ (197,757)$ (212,970)$
Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation and amortization 841,401 382,827 1,224,228 343,145
Changes in assets and liabilities:
(Increase) decrease in receivables, net 55,361 (1,012) 54,349 -
(Increase) decrease in prepaid costs (26,886) 805 (26,081) -
(Increase) decrease in inventories (60,022) - (60,022) -
(Increase) decrease in due
from component unit (376,974) - (376,974) -
Increase (decrease) in accrued liabilities (254,759) 132,385 (122,374) -
Increase (decrease) in unearned revenues 10,486 - 10,486 -
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES (365,349)$ 871,204$ 505,855$ 130,175$
NONCASH ITEMS:
Noncash items include $6,486,761,and $52,594 (net value) of capital assets contributed by the City of Palm Desert to Desert
Willow Golf Course and the internal service fund, respectively.
See independent auditors' report and notes to basic financial statements.
Enterprise Funds
(CONTINUED)
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the year ended June 30, 2011
Business-type Activities-
- 30 -
CITY OF PALM DESERT
Exhibit
Total
Agenc
Funds
Cash and investments 14,325,875$
Receivables (net of allowance for uncollectibles):
Accounts 103,567,945
Interest 5,507
Restricted assets:
Cash with fiscal agen 8,138,796
TOTAL ASSETS 126,038,123
Deposits 126,038,123
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, 2011
- 32 -
THIS PAGE INTENTIONALLY LEFT BLANK
See independent auditors’ report.
- 33 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
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, 2011
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, the City has authority to approve the Corporation's budget, and
the City must approve any debt issued.
Complete financial statements of the Component Unit can be obtained from the City's
administrative offices.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
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, 2011
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, 2011
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
Agency Funds
The Agency, Special Assessment and Treasurers 1911 Bond Act Funds are used to account for
assets held by the City in a custodial capacity as a trustee or as an agent. These assets include
deposits placed with the City by developers, individuals and groups to obtain future services, as
well as deposits from assessment district’s property owners. These deposits are reduced by
payments and/or refunds to individuals or entities at some future time. Agency funds are
custodial in nature and do not involve measurement of results of operations.
The City’s Retiree Service Stipend Fund is used to account for assets held to pay for the retiree
service stipend.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
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, 2011
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, 2011
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 $2,347,545 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, 2011
See independent auditors’ report.
- 41 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting (Continued)
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
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, 2011, proceeds of taxes did not
exceed appropriations.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 42 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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), California Asset
Management Program (CAMP), Riverside County Treasurer’s Pooled Investment Fund and
Rabobank.
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 $2,327,599,
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 and Other
Governmental Funds as property held for resale at the lower of acquisition cost or net
realizable value. At June 30, 2011, the cost of the property held for resale for various housing
properties in Palm Desert totaled $2,983,412.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 43 -
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
j. Inventories, Prepaid Costs and Deposits:
Inventory in the amount of $220,236 and $45,349 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 $25,631 in the general
fund and Other Governmental Funds are stated at cost. Inventory is recorded as an expenditure
when consumed rather than purchased.
Certain payments to vendors that reflect costs applicable to future accounting periods are
recorded as prepaid costs in the government-wide and fund financial statements.
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, 2011
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, 2011, cash and investments were reported in the accompanying financial statements
as follows:
Governmental activities $ 420,849,645
Business-type activities 3,904,928
Component unit 187,609
Fiduciary funds 22,464,671
Total Cash and Investments $ 447,406,853
Cash and investments at June 30, 2011 consisted of the following:
Demand accounts $ 2,042,744
Petty cash 22,150
Investments 445,341,959
Total Cash and Investments $ 447,406,853
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, 2011
See independent auditors’ report.
- 45 -
2. CASH AND INVESTMENTS (CONTINUED):
Deposits
At June 30, 2011, the carrying amount of the City’s deposits was $2,042,744, and the bank balance
was $2,575,222. The $(532,478) difference represents outstanding checks and other reconciling
items.
The California Government Code requires California banks and savings and loan associations to
secure an Entity's deposits by pledging government securities with a value of 110% of an Entity's
deposits. California law also allows financial institutions to secure deposits by pledging first trust
deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the
collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The
collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized
Agent of Depository recognized by the State of California Department of Banking. The collateral
for deposits with savings and loan associations is generally held in safekeeping by the Federal
Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are
physically held in an undivided pool for all California public agency depositors. Under
Government Code Section 53655, the placement of securities by a bank or savings and loan
association with an Agent of Depository has the effect of perfecting the security interest in the
name of the local governmental agency. Accordingly, all collateral held by California Agents of
Depository are considered to be held for, and in the name of, the local governmental agency.
Investments
Under provision of the City’s investment policy and in accordance with the California Government
Code, the following investments are authorized:
• United States Treasury bills, notes, bonds or certificates of indebtedness
• United States government-sponsored agency obligations, participations or other instruments
• Banker’s Acceptances issued by commercial banks
• Commercial Paper issued by general corporations
• Negotiable Certificates of Deposits, issued by a nationally or state-chartered bank, a savings
association, a federal association or by a state-licensed branch of a foreign bank
• 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, 2011
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, 2011
See independent auditors’ report.
- 47 -
2. CASH AND INVESTMENTS (CONTINUED):
Credit Risk (Continued)
Total Minimum
as of Legal
Investment Type June 30, 2011 Rating AAA Other Unrated
California Local Agency
Investment Fund $ 28,028,383 N/A $ - $ - $ 28,028,383
California Asset
Management Program 14,613,210 N/A 14,613,210 - -
Rabobank 99,509,345 N/A 99,509,345 - -
Riverside County Treasurer’s
Pooled Investment Fund 87,589,029 N/A 87,589,029 - -
United States Government
Sponsored Agency Securities 41,233,490 N/A 41,233,490 -
-
Medium-term corporate notes 14,550,806 A - 14,550,806 -
Investment in City Bonds 2,790,000 N/A - - 2,790,000
Held by Fiscal Agent:
Escrow deposit 625,098 N/A - - 625,098
Money market mutual funds 7,068,846 AAA 7,068,846 - -
California Local Agency
Investment Fund 149,333,752 N/A - - 149,333,752
Total $ 445,341,959 $ 250,013,920 $ 14,550,806 $180,777,233
N/A - Not Applicable
The actual ratings for the Medium Term Corporate Notes (MTN) are as follows:
Other:
A $ 4,015,768
Aa 10,535,038
$ 14,550,806
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
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, 2011, 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, 2011, 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 of credit risk:
Reported Percent of
Issuer Investment Type Amount Investment
Federal Home Loan Bank U.S. Government Sponsored
Agency Securities $ 26,653,849 6.1%
U.S. 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, 2011
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
Agency Securities 100% 30%
Banker’s Acceptances 40% 30%
Commercial Paper 25% 10%
Negotiable Certificates of Deposit 30% N/A
Time Certificates of Deposit 15% N/A
Repurchase Agreements 20% N/A
Medium-Term Corporate Notes 30% 5%
Money Market Mutual Funds 20% N/A
Local Agency Investment Fund (LAIF) $50M/Acct N/A
Structured Notes (STRIPS) 20% N/A
Local Government Investment Pools 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”. Subsequent to June 30, 2011, Federal Agency debt has been downgraded to “AA+
(negative)/Aaa (negative)”.
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, 2011
See independent auditors’ report.
- 50 -
2. CASH AND INVESTMENTS (CONTINUED):
Interest Rate Risk (Continued)
As of June 30, 2011, 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 $ 28,028,383 $ - $ - $ - $ 28,028,383
California Asset Management
Program 14,613,210 - - - 14,613,210
Rabobank 99,509,345 - - - 99,509,345
Riverside County Treasurer’s
Pooled Investment Fund 87,589,029 - - - 87,589,029
United States Government
Sponsored Agency Securities 18,075,036 - 23,158,454 - 41,233,490
Medium-term corporate notes 10,867,541 - 3,683,265 - 14,550,806
Investment in City Bonds 131,000 - 423,000 2,236,000 2,790,000
Held by Fiscal Agent:
Escrow deposit 625,098 - - - 625,098
Money market mutual funds 7,068,846 - - - 7,068,846
California Local Agency
Investment Fund 149,333,752 - - - 149,333,752
$ 415,841,240 $ - $ 27,264,719 $ 2,236,000 $445,341,959
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, 2011
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.
Investment in Riverside County Treasurer’s Pooled Investment Fund
The City is a voluntary participant in the Riverside County Treasurer’s Pooled Investment Fund
(Pooled Fund). The fair value of the City’s investment in this pool is reported in the accompanying
financial statements at amounts based upon the City’s pro-rata share of the fair value that the
Riverside County Treasurer’s Office has provided for the entire Pooled Fund (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based upon the
accounting records that the Riverside County Treasurer’s Office maintains, which are recorded on
an amortized cost basis.
Investment in Rabobank Money Market Accounts
The City has money market accounts (MMAs) with Rabobank, N.A. These accounts are the
financial obligations of the bank, and are collateralized with government securities at 110 percent
of the balance on deposit pursuant to California Government Code Section 53652, with a third
party custodian holding the collateral.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 52 -
3. RECEIVABLES:
Primary Government's Governmental Funds
Notes and Loans Receivable:
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds will be used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. Bond maturities began
September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from
3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and
reports a receivable in the general fund that corresponds to the outstanding principal on the bonds.
As of June 30, 2011, the receivable balance was $1,658,000.
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, 2011, the amount outstanding on the loan is $1,200,000.
The City has $13,310 and the Agency has $26,045 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, 2011 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.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 53 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
On August 28, 2008 the City Council approved through resolution the Energy Independence
Program (EIP), which is supported by 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, 2011 the outstanding loans receivable through the
EIP Program was $5,404,076.
On January 13, 2011 the City Council approved a loan in the amount of $102,300 with the
Coachella Valley Water District for the relocation of water lines and installation of siphons. The
loan provided is interest-free and principal is due within the first quarter of the 2011-2012 fiscal
year which begins on July 1, 2011.
The Agency has issued loans for several other projects, all of which are secured by a deed of trust.
A valuation allowance equal to the loan balance has been recognized since there is a significant
possibility that these loans will either become uncollectible or forgiven by the Agency at a future
date if all the terms of the loans have been met.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 54 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
Detailed information for these loans is as follows:
Loan
Balance Interest Maturity Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Self-Help 429,000$ 7.25% 30 years Deed of Trust
Housing Program or 2024
Home Improvement 318,304 N/A N/A Deed of Trust
Loans
Portola Palms 113,640 3.00% 30 years Deed of Trust
Mobilehome Park from date
of loan
Desert Rose 2,275,438 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, 2011
See independent auditors’ report.
- 55 -
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
Detailed information for these loans (Continued):
Loan
Balance Interes Maturit Special Provisions
Project Name Outstanding Rate Date Secured By of Loan
Falcon Crest 5,490,383$ 3.00% 30 - 45 Deed of Trust
years
from date
of loan
Acquisition, 190,510 3.00% 30 - 45 Deed of Trust
Rehabilitation, years Assignment
Resale from date of Rent
of loan
* All properties acquired from the Redevelopment Agency after June 2009 will have a 45 year restrictive
covenant.
Loan is payable upon
change or transfer of title,
refinancing or upon the
death of the borrower.
Restrictive covenants are
placed against property to
maintain affordability for up
to 45 years in exchange for
favorable loan terms.
Loan is payable upon
change or transfer of title,
refinancing or upon the
death of the borrower.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 56 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
Due To/From Other Funds
The composition of interfund balances as of June 30, 2011, was as follows:
Due From Due To Amount
RDA Debt Service RDA Capital Projects $ 3,979,739
Other Governmental Funds Desert Willow Golf Course 500,000
$ 4,479,739
The RDA Debt Service receivable of $3,979,739 to RDA Capital Projects was to provide
temporary funds for operators. The Capital Golf Fund advanced $500,000 to Desert Willow for
operations during the construction phase of the clubhouse and kitchen expansion.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 57 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Advances To/From Other Funds
The composition of interfund balances as of June 30, 2011, was as follows:
Advances From Advances To Amount
General Fund RDA Debt Service Fund $ 2,636,000
RDA Low-Income Housing RDA Debt Service Fund 17,821,288
Other Governmental Funds RDA Debt Service Fund 10,919,000
$ 31,376,288
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
made to cover the SERAF payment are due to be paid prior to June 30, 2015. 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 1,195,297
$ 1,480,297
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, 2011
See independent auditors’ report.
- 58 -
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Interfund Transfers
The composition of interfund balances as of June 30, 2011, was as follows:
RDA
Low Income RDA
Housing Financing RDA
Special Authority Capital Other Internal
General Revenue Debt Service Projects Governmental Service
Transfers Out: Fund Fund Fund Fund Funds Total Fund Totals
General Fund -$ -$ -$ -$ 4,679,432$ 4,679,432$ 1,000,000$ 5,679,432$
RDA Low
Income Housing - - 9,080,943 336,135 7,716,495 17,133,573 - 17,133,573
RDA Financing
Authority Debt Service - - - 5,097 - 5,097 - 5,097
RDA Debt Service - 16,365,307 22,510,820 3,539,203 - 42,415,330 - 42,415,330
RDA Capital Projects - - - 845,502 - 845,502 - 845,502
Other
Governmental Funds 2,251,634 - - - 2,225,029 4,476,663 - 4,476,663
Office Complex
Parkview Enterprise
Fund 440,000 - - - - 440,000 - 440,000
Totals 2,691,634$ 16,365,307$ 31,591,763$ 4,725,937$ 14,620,956$ 69,995,597$ 1,000,000$ 70,995,597$
Transfers In
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 59 -
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,
5. Transfer revenues to provide for additional resources to pay for expenditures, and
6. Transfer to cover future cost of equipment.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 60 -
5. CAPITAL ASSETS:
A summary of changes in capital assets at June 30, 2011, was as follows:
Primary Government - Governmental Activities
Balance at Balance at Balance at
June 30, 2010 Adjustments June 30, 2010 Transfers Additions Deletions June 30, 2011
Capital assets, not
being depreciated:
Land 126,889,328$ 407,865$ 127,297,193$ 302,538$ 1,861,142$ (121,537)$ 129,339,336$
Right-of-way 120,629,487 - 120,629,487 - 176,958 (98,379) 120,708,066
Construction-in-progress 18,698,513 - 18,698,513 (10,748,006) 11,464,173 (1,173,861) 18,240,819
Total capital assets, not
being depreciated 266,217,328 407,865 266,625,193 (10,445,468) 13,502,273 (1,393,777) 268,288,221
Capital assets, being
depreciated:
Buildings 119,488,718 - 119,488,718 10,413,646 - (3,843,282) 126,059,082
Improvements other
than buildings 53,699,570 - 53,699,570 - 47,292 - 53,746,862
Machinery and equipment 8,517,839 - 8,517,839 (52,594) 341,083 (96,888) 8,709,440
Infrastructure 223,310,336 - 223,310,336 31,822 315,241 - 223,657,399
Equipment - Internal
service fund 5,440,615 - 5,440,615 52,594 76,911 (106,135) 5,463,985
Total capital assets,
being depreciated 410,457,078 - 410,457,078 10,445,468 780,527 (4,046,305) 417,636,768
Less accumulated
depreciation for:
Buildings (39,150,557) (282,036) (39,432,593) - (3,106,689) 339,513 (42,199,769)
Improvements other
than buildings (18,398,131) - (18,398,131) - (2,811,066) - (21,209,197)
Machinery and equipment (6,870,480) - (6,870,480) - (592,651) 80,010 (7,383,121)
Infrastructure (66,301,868) - (66,301,868) - (5,399,502) - (71,701,370)
Equipment - Internal
service fund (4,017,695) - (4,017,695) - (343,145) 74,862 (4,285,978)
Total accumulated
depreciation (134,738,731) (282,036) (135,020,767) - (12,253,053) 494,385 (146,779,435)
Capital assets, being
depreciated, net 275,718,347 (282,036) 275,436,311 10,445,468 (11,472,526) (3,551,920) 270,857,333
Capital assets, net -
Governmental Activities 541,935,675$ 125,829$ 542,061,504$ -$ 2,029,747$ (4,945,697)$ 539,145,554$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 61 -
5. CAPITAL ASSETS (CONTINUED):
A summary of changes in capital assets at June 30, 2011, was as follows:
Primary Government - Business-type Activities
Balance at Balance at Balance at
June 30, 2010 Adjustments June 30, 2010 Transfers Additions Deletions June 30, 2011
Capital assets, not
being depreciated:
Land 52,616,189$ -$ 52,616,189$ -$ 533,868$ -$ 53,150,057$
Total capital assets,
not being depreciated 52,616,189 - 52,616,189 - 533,868 - 53,150,057
Capital assets, being
being depreciated:
Buildings and
improvements 19,592,533 - 19,592,533 - 6,010,373 (27,353) 25,575,553
Machinery and equipment 6,088,829 - 6,088,829 - 1,541,459 (1,385,531) 6,244,757
Total capital assets,
being depreciated 25,681,362 - 25,681,362 - 7,551,832 (1,412,884) 31,820,310
Less accumulated
depreciation for:
Buildings and
improvements (4,838,146) - (4,838,146) - (725,137) 21,669 (5,541,614)
Machinery and equipment (5,228,346) - (5,228,346) - (499,091) 1,377,824 (4,349,613)
Total accumulated
depreciation (10,066,492) - (10,066,492) - (1,224,228) 1,399,493 (9,891,227)
Capital assets, being
depreciated, net 15,614,870 - 15,614,870 - 6,327,604 (13,391) 21,929,083
Capital assets, net -
Business-type Activities 68,231,059$ -$ 68,231,059$ -$ 6,861,472$ (13,391)$ 75,079,140$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 62 -
5. CAPITAL ASSETS (CONTINUED):
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 804,196
Housing and redevelopment 2,598,417
Public safety 230,415
Public works 5,932,310
Parks, recreation and culture 2,344,570
Depreciation expenses for internal service funds is charged
to various functions based on usage of capital assets 343,145
Total depreciation expense - governmental activities $ 12,253,053
Business-type Activities:
Desert Willow Golf Course $ 841,401
Parkview Office complex 382,827
Total depreciation expense - business-type activities $ 1,224,228
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 63 -
6. LONG-TERM LIABILITIES:
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2011:
Primary Government - Governmental Activities
Balance Balance Due Within
July 1, 2010 Additions Reductions June 30, 2011 One Year
Special assessment deb
with governmen
commitment 1,719,000$ -$ (61,000)$ 1,658,000$ 34,000$
Tax allocation bonds 388,972,156 1,529,211 (22,240,000) 368,261,367 15,290,000
Limited obligation
improvement bonds 3,151,000 - (361,000) 2,790,000 131,000
Lease revenue bonds 5,225,000 - (130,000) 5,095,000 140,000
Notes payable 245,414 - (122,707) 122,707 122,707
Claims and judgments
ayable 899,691 - (428,824) 470,867 320,000
Compensated absences
ayable 2,162,510 1,911,556 (1,746,467) 2,327,599 600,000
Subtotal 402,374,771 3,440,767 (25,089,998) 380,725,540 16,637,707
Add: Unamortized
ond premiu 6,899,537 - (475,703) 6,423,834 -
Less: Deferred amoun
on refunding (1,360,820) - 122,715 (1,238,105) -
Total 407,913,488$ 3,440,767$ (25,442,986)$ 385,911,269$ 16,637,707$
Debt service payments for the special assessment debt with government commitment, tax
allocation bonds and notes payable are made from debt service funds and a special revenue fund.
Primary Government -Business-type Activities:
Capital leases 328,273$ 1,120,497$ (413,049)$ 1,035,721$ 215,945$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 64 -
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 $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds will be used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential obligation to
provide additional funds to pay the debt service, therefore these bonds are reported as special
assessment debt with government commitment. Bond maturities begin September 2, 2007, and
continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The
City of Palm Desert is the only bondholder on record of the bonds.
The future debt service requirements on the Highlands Undergrounding Assessment District
No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:
Year Ending
June 30, Principal Interest Total
2012 34,000$ 82,793$ 116,793$
2013 35,000 81,274 116,274
2014 36,000 79,677 115,677
2015 37,000 77,997 114,997
2016 39,000 76,221 115,221
2017 - 2021 227,000 350,038 577,038
2022 - 2026 291,000 285,292 576,292
2027 - 2031 371,000 201,117 572,117
2032 - 2036 477,000 92,423 569,423
2037 111,000 2,858 113,858
1,658,000$ 1,329,690$ 2,987,690$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 65 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2011, was as follows:
Balance Additions/ Repayments/ Balance Due Within
July 1, 2010 Accretion Reductions June 30, 2011 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 19,830,000 - (1,130,000) 18,700,000 1,050,000
2006 A & B TARBs, $62,320,000 53,870,000 - (2,320,000) 51,550,000 2,450,000
2007A TARRBs, $32,600,000 25,420,000 - (2,625,000) 22,795,000 2,870,000
Project Area No. 2
2002A TARRBs, $17,310,000 12,660,000 - (720,000) 11,940,000 760,000
2003 TARBs, $15,745,000 15,745,000 - - 15,745,000 -
2006 A-D TARBs, $67,618,213 67,340,585 993,362 (9,405,000) 58,928,947 1,720,000
Project Area No. 3
2003 TARBs, $4,745,000 4,020,000 - (105,000) 3,915,000 110,000
2006 A-C TABs, $15,059,526 15,647,978 226,380 (170,000) 15,704,358 205,000
Project Area No. 4
1998 TARBs, $11,02,000 8,355,000 - (130,000) 8,225,000 135,000
2001 TARBs, $15,695,000 13,895,000 - (320,000) 13,575,000 325,000
2006A TARBs, $19,273,089 19,703,593 309,469 (435,000) 19,578,062 570,000
Combined Low and
Moderate Housing
1998 TARBs, $48,760,000 2,995,000 - (1,460,000) 1,535,000 1,535,000
2002 TARBs, $12,100,000 10,335,000 - (285,000) 10,050,000 295,000
2007 TARBs, $86,155,000 78,085,000 - (3,135,000) 74,950,000 3,265,000
Total 388,972,156$ 1,529,211$ (22,240,000)$ 368,261,367$ 15,290,000$
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, 2011
See independent auditors’ report.
- 66 -
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. Susequent to the restructuring of
MBIA, S&P assigned its insurance financial strength rating of MBIA Illinois to ‘AA-minus’. Effective
March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee Corporation
(“NPFGC”).
National Public Finance Guarantee Corporation (formerly MBIA Illinois), an insurance subsidiary of
MBIA, which assumes the risk associated with U.S. municipal exposures, has financial strength credit
ratings of “BBB (Developing)/Baa1 (Developing)”.
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, 2011, the Agency has
transferred $6,298,846 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, 2011
See independent auditors’ report.
- 67 -
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 $11,165,000 term bonds at 5.10% due April 1, 2030. Interest is payable semi-annually on
April 1 and October 1. Mandatory sinking fund redemptions begin April 1, 2024.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2012 -$ 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 - 1,114,665 1,114,665
2017 - 2021 - 5,573,325 5,573,325
2022 - 2026 12,920,000 4,789,075 17,709,075
2027 - 2030 9,150,000 1,195,440 10,345,440
22,070,000$ 17,131,165$ 39,201,165$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 68 -
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 $11,950,000 term bonds due in 2030. Interest will be payable on April 1 and
October 1 of each year beginning April 1, 2004. Principal payments will be on April 1 of the years
stated above.
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 1) are as follows:
Year Ending
June 30, Principal Interest Total
2012 -$ 950,000$ 950,000$
2013 - 950,000 950,000
2014 - 950,000 950,000
2015 - 950,000 950,000
2016 - 950,000 950,000
2017 - 2021 - 4,750,000 4,750,000
2022 - 2026 3,440,000 4,750,000 8,190,000
2027 - 2030 15,560,000 1,992,500 17,552,500
19,000,000$ 16,242,500$ 35,242,500$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 69 -
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 $24,945,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2004 Series A. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency to refinance a portion of the
Agency’s obligations from 1995, and to fund various redevelopment capital projects within or of
benefit to the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable
semi-annually on April 1 and October 1. Principal payments will be made annually beginning
April 1, 2005.
The future debt service requirements on the 2004 Series A Tax Allocation Revenue Bonds (Project
Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2012 1,050,000$ 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 1,280,000 676,100 1,956,100
2017 - 2021 7,355,000 2,435,426 9,790,426
2022 - 2025 5,415,000 695,500 6,110,500
18,700,000$ 7,017,778$ 25,717,778$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 70 -
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
$11,320,000 carry an interest rate of 5.82% and mature April 1, 2016.
The future debt service requirements on the 2006 Series A and Series B Tax Allocation Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2012 2,450,000$ 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 3,075,000 2,093,410 5,168,410
2017 - 2021 17,895,000 8,404,650 26,299,650
2022 - 2026 18,810,000 2,492,038 21,302,038
2027 - 2030 1,075,000 130,478 1,205,478
51,550,000$ 23,093,201$ 74,643,201$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 71 -
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 $32,600,000 Serial Bonds with interest rates
ranging from 3.50% to 5.00% payable semiannually on October 1 and April 1. Bond maturities
began April 1, 2008, and continue annually through 2018.
The future debt service requirements on the 2007 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30, Principal Interest Total
2012 2,870,000$ 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 3,390,000 532,000 3,922,000
2017 - 2018 7,250,000 546,500 7,796,500
22,795,000$ 4,582,500$ 27,377,500$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 72 -
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 $17,310,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 2) 2002 Series A. The Palm Desert Financing
Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to prepay
outstanding indebtedness and to fund various redevelopment capital projects within or of benefit to
the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable semi-
annually on February 1 and August 1.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 2) are as follows:
Year Ending
June 30, Principal Interest Total
2012 760,000$ 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
2016 910,000 397,388 1,307,388
2017 - 2021 5,260,000 1,290,846 6,550,846
2022 - 2023 2,510,000 126,750 2,636,750
11,940,000$ 3,781,851$ 15,721,851$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 73 -
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
2012 -$ 769,006$ 769,006$
2013 - 769,006 769,006
2014 - 769,006 769,006
2015 - 769,006 769,006
2016 - 769,006 769,006
2017 - 2021 - 3,845,031 3,845,031
2022 - 2026 2,930,000 3,658,691 6,588,691
2027 -2031 7,400,000 2,312,488 9,712,488
2032 - 2034 5,415,000 415,125 5,830,125
15,745,000$ 14,076,365$ 29,821,365$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 74 -
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 were paid off during
the fiscal year. The Series D bonds consist of $16,936,095 Capital Appreciation Bonds with a
reoffering yield ranging from 4.65% to 6.10%. Bond maturities began August 1, 2007, and
continue annually through 2035. Each year the outstanding balance is increased for the accretion
of interest associated with the bonds. The accreted interest at June 30, 2011 is $4,379,557.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 75 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Continued)
The debt service requirements schedules on the 2006 Series A Tax Allocation Refunding Revenue
Bonds, Series B Tax Allocation Revenue Capital Appreciation Bonds, Series C Revenue Bonds
and Series D Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area
No. 2) do not agree to the liability for those bonds shown in the schedule of changes. These bond
issues include capital appreciation bonds, which are issued at a discount. The carrying amount of
these bonds accretes, or increases each year. The amount shown in the schedule of changes
include the accreted value to date. The future debt service requirements are as follows:
Year Ending
June 30, Principal Interest Total
2012 1,482,818$ 2,200,570$ 3,683,388$
2013 1,633,558 2,274,429 3,907,987
2014 1,700,353 2,334,447 4,034,800
2015 1,759,238 2,394,399 4,153,637
2016 1,108,312 2,059,088 3,167,400
2017 - 2021 6,806,042 11,211,420 18,017,462
2022 - 2026 9,749,415 13,123,694 22,873,109
2027 - 2031 9,974,569 11,466,626 21,441,195
2032 - 2036 15,790,085 10,142,454 25,932,539
2037 4,545,000 116,466 4,661,466
54,549,390$ 57,323,593$ 111,872,983$
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 $2,270,000 are due in 2033.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 76 -
6. LONG-TERM LIABILITIES (CONTINUED):
Tax Allocation Bonds (Continued)
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3) (Continued)
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 3) are as follows:
Year Ending
June 30, Principal Interest Total
2012 110,000$ 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 125,000 168,473 293,473
2017 - 2021 720,000 757,548 1,477,548
2022 - 2026 905,000 576,900 1,481,900
2027 - 2031 1,155,000 322,875 1,477,875
2032 - 2033 545,000 42,281 587,281
3,915,000$ 2,587,792$ 6,502,792$
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, 2011
See independent auditors’ report.
- 77 -
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, 2011 is $993,815.
The future debt service requirements on the 2006 Series A Tax Allocation Revenue Bonds,
Series B Tax Allocation Revenue Capital Appreciation Bonds and Series C Subordinate Tax
Allocation Revenue Capital Appreciation Bonds (Project Area No. 3) are as follows:
Year Ending
June 30, Principal Interest Total
2012 198,934$ 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 309,731 585,687 895,418
2017 - 2021 1,563,348 3,448,684 5,012,032
2022 - 2026 2,095,724 3,646,626 5,742,350
2027 - 2031 1,981,030 4,209,408 6,190,438
2032 - 2036 3,323,162 2,977,189 6,300,351
2037 - 2041 4,470,000 692,250 5,162,250
14,710,543$ 17,837,596$ 32,548,139$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 78 -
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,
$1,785,000 of the outstanding balance was advance refunded by the issuance of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A.
The future debt service requirements on the 1998 Series Tax Allocation Revenue Bonds (Project
Area No. 4) (after defeasance) are as follows:
Year Ending
June 30, Principal Interest Total
2012 135,000$ 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 375,000 376,375 751,375
2017 - 2021 2,175,000 1,565,373 3,740,373
2022 - 2026 2,825,000 920,010 3,745,010
2027 - 2029 2,070,000 165,100 2,235,100
8,225,000$ 4,664,212$ 12,889,212$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 79 -
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 $15,695,000 of Tax Allocation
Revenue Bonds (Project Area No. 4) 2001 Series. The proceeds from the bonds were loaned to the
Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency
in Project Area No. 4. Interest rates on the bonds vary from 3.5% to 4.9% per annum payable
semi-annually on April 1 and October 1, with principal maturing annually on October 1.
The future debt service requirements on the 2001 Series Tax Allocation Revenue Bonds (Project
Area No. 4) are as follows:
Year Ending
June 30, Principal Interest Total
2012 325,000$ 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 390,000 567,322 957,322
2017 - 2021 2,250,000 2,548,904 4,798,904
2022 - 2026 2,785,000 1,962,194 4,747,194
2027 - 2031 5,090,000 1,136,160 6,226,160
2032 1,650,000 39,600 1,689,600
13,575,000$ 8,680,943$ 22,255,943$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 80 -
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, 2011 is $1,379,470.
The future debt service requirements on the 2006 Series A Tax Allocation Refunding Bonds and
Series B Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) are as follows:
Year Ending
June 30, Principal Interest Total
2012 554,233$ 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 672,930 543,641 1,216,571
2017 - 2021 1,073,328 2,837,240 3,910,568
2022 - 2026 3,290,862 2,901,973 6,192,835
2027 - 2031 4,339,748 4,177,361 8,517,109
2032 - 2035 6,113,401 7,572,349 13,685,750
18,198,592$ 20,576,534$ 38,775,126$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 81 -
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, $38,740,000 of the outstanding balance was
advance refunded by the issuance of Tax Allocation (Housing Set-Aside) Refunding Revenue
Bonds Series 2007.
The future debt service requirements on the 1998 Series Tax Allocation (Housing Set-Aside)
Revenue Bonds (after defeasance) are as follows:
Year Ending
June 30, Principal Interest Total
2012 1,535,000$ 38,375$ 1,573,375$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 82 -
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 $5,545,000 term
bonds bear an interest rate of 5.0% per annum and mature October 1, 2031.
The future debt service requirements on the 2002 Series Tax Allocation (Housing Set-Aside)
Revenue Bonds are as follows:
Year Ending
June 30, Principal Interest Total
2012 295,000$ 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 345,000 419,004 764,004
2017 - 2021 1,980,000 1,847,932 3,827,932
2022 - 2026 2,510,000 1,316,334 3,826,334
2027 - 2031 3,220,000 605,000 3,825,000
2032 745,000 18,625 763,625
10,050,000$ 6,014,140$ 16,064,140$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 83 -
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 $86,155,000 Serial
Bonds with interest ranging from 4.00% to 5.00% payable semiannually on October 1 and April 1.
Bond maturities began October 1, 2007, and continue annually through 2027.
The future debt service requirements on the Tax Allocation (Housing Set-Aside) Refunding
Revenue Bonds Series 2007 are as follows:
Year Ending
June 30, Principal Interest Total
2012 3,265,000$ 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 5,785,000 2,531,313 8,316,313
2017 - 2021 28,790,000 8,012,187 36,802,187
2022 - 2026 14,560,000 3,135,363 17,695,363
2027 - 2028 6,805,000 292,294 7,097,294
74,950,000$ 26,658,259$ 101,608,259$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 84 -
6. LONG-TERM LIABILITIES (CONTINUED):
Limited Obligation Bonds
Limited Obligation Improvement Bonds Series 2009A (Taxable)
On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds
Series 2009A (Taxable). The proceeds of the Bonds were used to fund the City’s Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond
purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to
par value.
The Series 2009A (Taxable) bonds consist of $2,015,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A
(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2012 87,000$ 52,125$ 139,125$
2013 92,000 49,440 141,440
2014 92,000 46,680 138,680
2015 97,000 43,845 140,845
2016 92,000 41,010 133,010
2017 - 2021 465,000 162,825 627,825
2022 - 2026 465,000 93,975 558,975
2027 - 2030 391,000 23,925 414,925
1,781,000$ 513,825$ 2,294,825$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 85 -
6. LONG-TERM LIABILITIES (CONTINUED):
Limited Obligation Bonds (Continued)
Limited Obligation Improvement Bonds Series 2009B (Taxable)
On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds
Series 2009B (Taxable). The proceeds of the Bonds were used to fund the City’s Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond
purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to
par value.
The Series 2009B (Taxable) bonds consist of $1,136,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B
(Taxable) are as follows:
Year Ending
June 30, Principal Interest Total
2012 44,000$ 29,610$ 73,610$
2013 46,000 28,260 74,260
2014 47,000 26,865 73,865
2015 49,000 25,425 74,425
2016 50,000 23,940 73,940
2017 - 2021 269,000 95,985 364,985
2022 - 2026 285,000 54,015 339,015
2027 - 2030 219,000 13,425 232,425
1,009,000$ 297,525$ 1,306,525$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 86 -
6. LONG-TERM LIABILITIES (CONTINUED):
Lease Revenue Bonds
EIP Series 2009
On August 31, 2009, the Palm Desert Financing Authority issued $5,225,000 Energy Independence
Program Variable Rate Demand lease Revenue Bonds, Series 2009 (Federally Taxable). The
proceeds of the bonds were used to partially pay off the General Fund EIP loan of $1,196,000
originally loaned to start up the Energy Loan Program, and the remaining bond funds were used to
fund the City’s Energy Independence Program.
The Series 2009 bonds consist of $5,225,000 Serial Variable Rate Bonds with interest payable on a
monthly basis based on a weekly rate period based on the USD-LIBOR-BBA 1-month interest rate.
The City has entered into a swap agreement to effectively fix the interest rate with a floor of 1.93%
and an interest rate cap of 5.25%. Principal payments are due on September 1 of each year. Bond
maturities commenced on September 1, 2010, and will continue annually through
September 1, 2029.
The future debt service requirements computed at a variable rate of 0.18792% at June 30, 2011 on
the Lease Revenue Bonds Series 2009 are as follows:
Year Ending
June 30, Principal Interest Total
2012 140,000$ 9,356$ 149,356$
2013 145,000 9,085 154,085
2014 155,000 8,797 163,797
2015 170,000 8,482 178,482
2016 180,000 8,147 188,147
2017 - 2021 1,100,000 34,881 1,134,881
2022 - 2027 1,540,000 22,310 1,562,310
2028 - 2030 1,665,000 5,493 1,670,493
5,095,000$ 106,551$ 5,201,551$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 87 -
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, 2011, was $122,707.
Future debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2012 122,707$ -$ 122,707$
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, 2011, total estimated workers' compensation and
general liability claims payable, including a provision for incurred but not reported claims, were
$324,936 and $145,931, respectively, for a total claims and judgments payable of $470,867.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 88 -
6. LONG-TERM LIABILITIES (CONTINUED):
Claims and Judgments Payable (Continued)
Changes in claims liabilities during the past two years are as follows:
June 30, 2010 June 30, 2011
Claims payable - Beginning of Yea 777,851$ 899,691$
Incurred claims (including IBNR)
and changes in estimates 609,926 (11,256)
Claims payments (488,086) (417,568)
Claims payable - End of Yea 899,691$ 470,867$
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. $ 6,480
PNCEF, LLC dba PNC Equipment Finance – The present value of the
minimum lease payment on the Toro Greens mowers and equipment
lift was capitalized at $78,329 using an interest rate of 4.60%. Lease is
payable in 48 monthly installments of $1,789 beginning December 15,
2010. There is a $1 bargain purchase option (Termination Amount)
which will be exercised upon the expiration of the lease. 67,548
De Lage Lande Public Finance LLC – The present value of the
minimum lease payment on the Club Car Golf Carts was capitalized at
$738,639 using an interest rate of 4.81%. Lease is payable in 48
monthly installments of $13,686 beginning December 15, 2010. A
Balloon payment in the amount of $172,210 is due on January 1, 2015. 662,654
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 89 -
6. LONG-TERM LIABILITIES (CONTINUED):
Business-type Activities - Capital Leases (Continued)
GPSI Leasing, LLC – The present value of the minimum lease
payment on the GPSI Visage Golf Cart GPS System was capitalized at
$303,530 using an interest rate of 16.66%. Lease is payable in 48
monthly installments of $8,706 beginning June 15, 2011. $ 299,039
Present value of net minimum lease payments 1,035,721
Less: current portion (215,945)
$ 819,776
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, 2011:
Year Ending Minimum
June 30, Lease Payments
2012 293,554$
2013 293,554
2014 290,460
2015 346,042
1,223,610
Less: amounts representing interest (187,889)
Present value of net minimum lease
payments 1,035,721$
The assets acquired through capital lease are as follows:
Machinery and equipment $ 2,824,003
Less: accumulated depreciation (1,810,519)
$ 1,013,424
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 90 -
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:
Original Initial
Notional Interest Rate Termination Effective
Amount Range Issue Date Date
$ 5,225,000 1.93% - 5.25% Wells Fargo 09/01/2014 08/31/2009
Terms:
Under the swap agreement, the City will make a monthly interest payment at the variable rate
between 1.93% and 5.25%. The City will receive a variable rate interest payment for those variable
interest rates in excess of the 5.25% cap and makes a payment if the variable rate is less than
1.93%. The rate is adjusted weekly every Thursday at the 1-Month USD-LIBOR-BBA rate. The
swap is for a total notional amount of $5,225,000 and will terminate on September 14, 2014.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 91 -
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT (CONTINUED):
Summary of Activities in Cash Flow Hedging Derivative Instrument:
Outstanding Fair Value Fair Value
Notional at Change in at
Amount June 30, 2010 Fair Value June 30, 2011
$ 5,095,000 $ 163,286 $ 8,312 $ 171,598
As of June 30, 2011, the fair value of $171,598 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, 2011, 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, 2011
See independent auditors’ report.
- 92 -
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, 2011
the swap had a negative fair value of $171,598.
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, 2011, 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
2012 $ 140,000 $ 9,356 $ 149,356 $ 86,734 $ 236,090
2013 145,000 9,085 154,085 84,223 238,308
2014 155,000 8,797 163,797 81,553 245,350
2015 170,000 8,482 178,482 6,779 185,261
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 93 -
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 $9,818,933 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, 2011
See independent auditors’ report.
- 94 -
9. AMOUNTS DUE UNDER REDEVELOPMENT AGENCY PASS-THROUGH AGREEMENTS
(CONTINUED):
At June 30, 2011, the Agency was holding $44,341,716 in trust on behalf of other taxing agencies
related to specific pass-through agreements as detailed below:
Balance at Balance at
July 1, 2010 Additions Payments June 30, 2011
Riverside County Capital Improvement 23,906,863$ * 23,796,976$ 26,610,498$ 21,093,341$
Riverside County - Schools 783,603 696,662 783,603 696,662
Riverside County - Library 11,614,230 1,710,496 3,548,864 9,775,862
Riverside County - Fire 3,177,488 2,944,289 3,177,488 2,944,289
Coachella Valley Mosquito
Abatement District 643,269 561,173 643,269 561,173
Coachella Valley Water District 10,972,460 1,095,835 11,421,798 646,497
Desert Community College District 1,344,005 1,205,279 1,344,005 1,205,279
Desert Sands Unified School District 5,657,267 * 5,276,147 5,834,227 5,099,187
Coachella Valley Recreation
and Park District 485,547 440,674 485,547 440,674
Coachella Valley Resources District 4,938 4,114 4,938 4,114
Palm Springs Unified School District 376,618 282,543 376,618 282,543
County Juvenile Health District 1,049,915 1,037,566 1,032,507 1,054,974
Other Deposits 661,977 171,612 296,468 537,121
60,678,180$ 39,223,366$ 55,559,830$ 44,341,716$
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, 2011
See independent auditors’ report.
- 95 -
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 2010-2011, was 19.412% 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 2011, the City's annual pension cost of $3,432,588 for PERS was equal to the City's
required and actual contributions. The required contribution was determined as part of the
June 30, 2008, 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
6/30/09 $ 4,106,308 100% $ -
6/30/10 3,880,525 100% -
6/30/11 3,432,588 100% -
e. Schedule of Funding Progress for PERS:
As of June 30, 2010, the most recent actuarial valuation date, the plan was 69.65% funded.
The actuarial accrued liability for benefits was $87.88 million, and the actuarial value of assets
was $61.20 million, resulting in an unfunded actuarial accrued liability (UAAL) of
$26.67 million. The covered payroll (annual payroll of active employees covered by the plan)
was $13.49 million, and the ratio of the UAAL to the covered payroll was 197.74%.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 96 -
10. PENSION PLAN (CONTINUED):
e. Schedule of Funding Progress for PERS (Continued):
The schedule of funding progress, presented as required supplementary information following the notes
to basic financial statements, presents multi-year trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
11. FUND BALANCE:
Fund Balance
In the fund financial statements, reserves segregate portions of fund balances that are either not available or
have been earmarked for specific purposes. The various reserves established as of June 30, 2011, were as
follows:
RDA
Low Income RDA RDA RDA Other
General Prop A Housing Financing Debt Capital Governmental
Fund Fire Tax Special Revenue Authority Service Projects Funds Total
Nonspendable:
Advances 581,000$ -$ 17,821,288$ -$ -$ -$ 11,419,000$ 29,821,288$
Inventory 23,533 - - - - - - 23,533
Loans and notes receivables 1,798,739 - 7,324,592 - - 1,200,000 - 10,323,331
Prepaid costs 536,578 - 130 - - 177,190 306 714,204
Property held for resale - - 2,685,387 - - - 298,025 2,983,412
Restricted for:
Capital projects - - - - - 94,155,931 24,683,865 118,839,796
Debt service - - - 8,303,511 9,054,948 - 156,636 17,515,095
Low income housing - - 48,567,642 - - - 5,600,147 54,167,789
Public facilities - - - - - - 3,360,074 3,360,074
Public safety - 1,073,826 - - - - 705,167 1,778,993
Special programs - - - - - - 9,351,822 9,351,822
Street related purposes - - - - - - 25,609,485 25,609,485
Committed to:
Aquatic center - - - - - - 1,135,692 1,135,692
Capital asset replacement - - - - - - 7,752,862 7,752,862
Energy loan program - - - - - - 8,397,179 8,397,179
Assigned to:
Capital projects 253,546 - - - - - 7,943,281 8,196,827
Community contingency 500,000 - - - - - - 500,000
Debt service 2,327,599 - - - - - - 2,327,599
Property acquisition - - - - - - 1,000,000 1,000,000
Public facilities - - - - - - 6,389,251 6,389,251
Special programs - - - - - - 542,888 542,888
Street related purposes 1,420,014 - - - - - 3,500,579 4,920,593
Unassigned 66,776,414 - - - - - - 66,776,414
Totals 74,217,423$ 1,073,826$ 76,399,039$ 8,303,511$ 9,054,948$ 95,533,121$ 117,846,259$ 382,428,127$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 97 -
11. FUND BALANCE (CONTINUED):
Fund Balance (Continued)
The City has implemented Governmental Accounting Standards Board Statement No. 54, “Fund
Balance Reporting and Governmental Fund Type Definitions”, for the year ended June 30, 2011.
The fund balances reported on the fund statements now consist of the following categories:
Nonspendable - This classification includes amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted - This classification includes amounts that can be spent only for specific purposes
stipulated by constitution, external resource providers or through enabling legislation.
Committed - This classification includes amounts that can be used only for the specific purposes
determined by a formal action of the government’s highest level of decision-making authority.
Assigned - This classification includes amounts to be used by the government for specific purposes
but do not meet the criteria to be classified as restricted or committed. In governmental funds, other
than the general fund, assigned fund balance represents the remaining amount that is not restricted
or committed.
Unassigned - This classification includes the residual balance for the government’s general fund
and includes all spendable amounts not contained in other classifications. In other funds, the
unassigned classification is used only to report a deficit balance resulting from overspending for
specific purposes for which amounts had been restricted, committed or assigned.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balances are available, the City’s policy is to apply restricted fund balance first.
When an expenditure is incurred for purposes for which committed, assigned or unassigned fund
balances are available, the City’s policy is to apply committed fund balance first, then assigned
fund balance, and finally unassigned fund balance.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 98 -
11. FUND BALANCE (CONTINUED):
Fund Balance (Continued)
Net Asset Restatements
Net assets of the governmental activities have been restated as follows:
Net assets, July 1, 2010, as previously reported $ 559,015,339
To adjust capital assets inadvertently not
recorded, and depreciation of apartment not
booked in prior year 125,829
Net assets, July 1, 2010, as restated $ 559,141,168
12. RISK MANAGEMENT:
a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement:
The City of Palm Desert is a member of the CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (Authority). The Authority is composed of 121 California public entities and is
organized under a joint powers agreement pursuant to California Government Code §6500 et
seq. The purpose of the Authority is to arrange and administer programs for the pooling of
self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group
purchased insurance for property and other lines of coverage. The California JPIA began
covering claims of its members in 1978. Each member government has an elected official as
its representative on the Board of Directors. The Board operates through a nine-member
Executive Committee.
b. Self-Insurance Programs of the Authority:
A revised cost allocation methodology was introduced in 2010-11, however it retains many
elements of the previous cost allocation methodology. Each member pays an annual
contribution (formerly called the primary deposit) to cover estimated losses for the coverage
period. This initial funding is paid at the beginning of the coverage period. After the close of
the coverage period, outstanding claims are valued. A retrospective deposit computation is
then conducted annually thereafter until all claims incurred during the coverage period are
closed on a pool-wide basis. This subsequent cost re-allocation among members based on
actual claim development can result in adjustments of either refunds or additional deposits
required.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 99 -
12. RISK MANAGEMENT (CONTINUED):
b. Self-Insurance Programs of the Authority (Continued):
The total funding requirement for self-insurance programs is estimated using actuarial models
and pre-funded through the annual contribution. Costs are allocated to individual agencies
based on exposure (payroll) and experience (claims) relative to other members of the risk-
sharing pool. Additional information regarding the cost allocation methodology is provided
below.
General Liability
In the liability program claims are pooled separately between police and non-police exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members. A
variable credibility factor is determined for each member, which establishes the weight applied
to payroll and the weight applied to losses within the formula. (2) The first layer of losses
includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of
the pool’s total incurred costs within the first layer. (3) The second layer of losses includes
incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage
of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of
$750,000 up to the reinsurance attachment point of $5 million are distributed based on the
outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims
from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million
annual aggregate deductible. Costs of covered claims from $10 million to $15 million are paid
under two reinsurance contracts subject to a combined $3 million annual aggregate deductible.
On a cumulative basis for all 2010-11 reinsurance contracts the annual aggregate deductible is
$5.5 million. (6) Costs of covered claims from $15 million up to $50 million are covered
through excess insurance policies.
The overall coverage limit for each member including all layers of coverage is $50 million per
occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance
with a pooled sub-limit of $35 million per occurrence. This $35 million subsidence sub-limit is
composed of (a) $5 million retained within the pool’s SIR, (b) $10 million in reinsurance and
(c) $20 million in excess insurance. The excess insurance layer has a $20 million annual
aggregate.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 100 -
12. RISK MANAGEMENT (CONTINUED):
b. Self-Insurance Programs of the Authority (Continued):
Workers' Compensation
In the workers’ compensation program claims are pooled separately between public safety
(police and fire) and non-public safety exposures. (1) The payroll of each member is evaluated
relative to the payroll of other members. A variable credibility factor is determined for each
member, which establishes the weight applied to payroll and the weight applied to losses
within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first
layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second
layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2
million are distributed based on the outcome of cost allocation within the first and second loss
layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a
reinsurance policy. Protection is provided per statutory liability under California Workers’
Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from $2
million to $4 million is purchased as part of a reinsurance policy, and Employer’s Liability
losses from $4 million to $10 million 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. City of
Palm Desert property is currently insured according to a schedule of covered property
submitted by the City of Palm Desert to the Authority. City of Palm Desert property currently
has all-risk property insurance protection in the amount of $184,654,940. There is a $5,000
deductible per occurrence except for non-emergency vehicle insurance which has a $1,000
deductible. Premiums for the coverage are paid annually and are not subject to retrospective
adjustments.
Crime Insurance
The City of Palm Desert purchases crime insurance coverage in the amount of $10,000,000
with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums
are paid annually and are not subject to retrospective adjustments.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 101 -
12. RISK MANAGEMENT (CONTINUED):
c. Purchased Insurance (Continued):
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
agency property. The insurance premium is paid by the tenant user and is paid to the City of
Palm Desert according to a schedule. The City of Palm Desert then pays for the insurance.
The insurance is arranged by the Authority.
d. Adequacy of Protection:
During the past three fiscal (claims) years, none of the above programs of protection
experienced settlements or judgments that exceeded pooled or insured coverage. There were
also no significant reductions in pooled or insured liability coverage from coverage in 2010-11.
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 (0.448% at June 30, 2011).
Recognition of the revenue from the sale has been deferred until it becomes available.
On March 13, 1997, the City entered into an agreement with subsequent amendments on June 4,
1997, May 18, 2004, and May 12, 2009, with the Palm Desert Recreational Facilities Corporation
(Corporation) for the use of property at the City's Golf Resort (Desert Willow). Payment is due
when the Corporation's revenues exceed its expenses. At June 30, 2011, 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 $469,846 for sales
tax has been deferred.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 102 -
13. DEFERRED REVENUES AND UNEARNED REVENUES (CONTINUED):
Major Governmental Funds (Continued)
General Fund (Continued):
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, 2011, $46,726 in interest has been accrued.
Recognition of the interest revenue has been deferred until it becomes due.
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 $13,310 for home improvement loans are recorded as deferred in
the Community Development Block Grant Fund.
$16,552 of grant funds are deemed unearned until expenditures are incurred in the Recycling Fund.
$21,889 of grant funds are deemed unearned until expenditures are incurred in the Public Safety
Police Grants Fund.
$8,985 represents the unused portions of prepaid aquatic fees.
Accrued interest of $225,029 on loans receivable through the City’s EIP Program (see Note 3).
Prepaid rents in the amount of $13,214 from the eight apartment complexes operated by the Palm
Desert Housing Authority will be recognized as revenue when earned.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 103 -
13. DEFERRED REVENUES AND UNEARNED REVENUES (CONTINUED):
Other Governmental Funds (Continued):
Debt Service Funds:
Assessment receivables in the amount of $1,509,558 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.
Capital Project Funds:
$459,724 has been deferred for capital reimbursements due from developers for work completed by
the City on their behalf.
$76,238 of unearned revenue represents deposits from developers for street improvements, which
have not been spent as of June 30, 2011.
Business-type Activities
The balance of $207,420 represents the unused portions of prepaid golf fees, value of unredeemed
gift certificates and unearned rent.
Component Unit
The balance of $54,198 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).
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 104 -
14. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (Continued):
All full-time or part-time employees who meet the eligibility requirements for this program
may continue their medical coverage through the CalPERS Health Plan and receive
reimbursement from the City for a portion of the costs for the coverage. Separate financial
statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North, 400
Q Street, Sacramento, CA 95811, or by visiting the CalPERS website at www.calpers.ca.gov.
Employees Hired Prior to January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or
after age 50 with at least 10 consecutive years of service with the City. Eligible employees
must be covered under the CalPERS Health Plan at the time of retirement and elect to
participate in the stipend program within 30 days of retirement. 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, 2011
See independent auditors’ report.
- 105 -
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 ($105 in 2010 and $108 in 2011) 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, 2011, the City
contributed $762,588 to the plan, which included $427,636 of the annual required contribution
and $334,952 pay-as-you-go premiums. The purpose of these contributions is to cover the
required City contribution rate of 6.60% of annual covered payroll (annual payroll of active
employees covered by the plan) and to prefund benefits. As a result, the City calculated and
recorded a Net OPEB Asset, representing the difference between the Annual Required
Contribution (ARC) and actual contributions, as presented below:
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 106 -
14. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
b. Funding Policy (Continued):
Annual required contribution (ARC) 427,636$
Interest on Net OPEB obligation (asset) (566,142)
Adjustment to ARC 471,534
Annual OPEB cost 333,028
Contribution made (762,588)
Increase in Net OPEB obligation (asset) (429,560)
Net OPEB obligation (asset) at June 30, 2010 (7,305,057)
Net OPEB obligation (asset) at June 30, 2011 (7,734,617)$
The contribution rate of 5.20% is based on the ARC of $427,636, 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 2011, the City’s annual OPEB cost (expense) was $333,028. 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)
6/30/2009 $ 312,285 $ 613,648 197% $ (6,970,610)
6/30/2010 310,156 644,603 208% (7,305,057)
6/30/2011 333,028 762,588 229% (7,734,617)
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 107 -
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, 2011
See independent auditors’ report.
- 108 -
15. SPECIAL ASSESSMENT DEBT:
Below is a summary of the changes in the special assessment bonds payable:
Balance at Payments and Balance at
July 1, 2010 Additions Reductions June 30, 2011
2003 Assessment Revenue Bonds 3,105,000$ -$ (210,000)$ 2,895,000$
AD 98-1 Limited Obligation
Refunding Bonds 700,000 - (75,000) 625,000
CFD 2005-1 Special Tax
Bonds Series 2006A 65,925,000 - (1,210,000) 64,715,000
AD 2004-2 Limited Obligation
Improvement Bonds 28,925,000 - (525,000) 28,400,000
2008 Special Tax Refunding Bonds 8,415,000 - (880,000) 7,535,000
107,070,000$ -$ (2,900,000)$ 104,170,000$
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 $4,423,000 in 2003 Assessment
Revenue Bonds. The proceeds were used to purchase three series of limited obligation
improvement bonds issued by the City in connection with the financing and refinancing of certain
improvements of benefit to property within the City’s Assessment District No. 94-2 (Sunterrace),
Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Undergrounding Assessment
District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide
funds for public improvements in the respective assessment districts.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 109 -
15. SPECIAL ASSESSMENT DEBT (CONTINUED):
2003 Assessment Revenue Bonds (continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2012 200,000$ 141,189$ 341,189$
2013 210,000 132,264 342,264
2014 215,000 122,485 337,485
2015 230,000 111,912 341,912
2016 155,000 102,595 257,595
2017 - 2021 870,000 385,930 1,255,930
2022 - 2026 585,000 196,745 781,745
2027 - 2029 430,000 35,474 465,474
2,895,000$ 1,228,594$ 4,123,594$
As of June 30, 2011, the principal amounts to be repaid by each assessment district to pay off the
loans from the Financing Authority are as follows:
Assessment District 94-2 295,000$
Assessment District 94-3 790,000
Assessment District 01-1 1,815,000
2,900,000$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 110 -
15. SPECIAL ASSESSMENT DEBT (CONTINUED):
Assessment District 98-1 Limited Obligation Refunding Improvement Bonds
The bonds were issued in an original amount of $2,955,000 in February 2004, to redeem and
defease the outstanding limited obligation improvement bonds of Assessment District No. 98-1,
which were issued in 1998. The bonds are secured by unpaid assessments on parcels within the
District.
Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the
scheduled debt service requirements are to be included on the regular county tax bills for the
assessed parcels for which there are unpaid assessments. Interest rates vary from 1.5% to 5.1%
with interest payable semi-annually on March 2 and September 2, with principal maturing annually
on September 2.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2012 70,000$ 27,738$ 97,738$
2013 65,000 24,973 89,973
2014 75,000 21,940 96,940
2015 70,000 18,653 88,653
2016 80,000 15,134 95,134
2017 - 2019 265,000 20,297 285,297
625,000$ 128,735$ 753,735$
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, 2011
See independent auditors’ report.
- 111 -
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 $50,000,000, from a pledge of net taxes derived
from special taxes to be levied by the District on real properties within the boundaries of the
District from the net proceeds of any foreclosure actions brought following delinquency in the
payment of the special taxes, and from amounts held in certain funds under the indenture. Interest
rates vary from 3.875% to 5.20% with interest payable semi-annually on March 1 and September
1, with principal maturing annually on September 1.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2012 1,260,000$ 3,320,817$ 4,580,817$
2013 1,310,000 3,264,627 4,574,627
2014 1,370,000 3,204,685 4,574,685
2015 1,430,000 3,140,658 4,570,658
2016 1,500,000 3,072,470 4,572,470
2017 - 2021 8,650,000 14,173,501 22,823,501
2022 - 2026 11,040,000 11,713,594 22,753,594
2027 - 2031 14,235,000 8,415,283 22,650,283
2032 - 2036 18,470,000 4,068,133 22,538,133
2037 - 2038 5,450,000 205,573 5,655,573
64,715,000$ 54,579,341$ 119,294,341$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 112 -
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 $14,925,000 carry an interest rate of 5.10% and mature September 2, 2037.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2012 545,000$ 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 645,000 1,286,075 1,931,075
2017 - 2021 3,680,000 5,952,201 9,632,201
2022 - 2026 4,635,000 4,962,786 9,597,786
2027 - 2031 5,920,000 3,639,525 9,559,525
2032 - 2036 7,590,000 1,927,035 9,517,035
2037 - 2038 3,610,000 186,405 3,796,405
28,400,000$ 23,355,550$ 51,755,550$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 113 -
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 $16,260,000 principal amount of the Palm Desert Financing
Authority 1997 Revenue Bonds. These bonds were issued pursuant to the provisions of the
Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2,
Title 5, of the Government Code of the State of California.
Debt service requirements to maturity are as follows:
Year Ending
June 30, Principal Interest Total
2012 905,000$ 247,026$ 1,152,026$
2013 935,000 217,812 1,152,812
2014 965,000 186,930 1,151,930
2015 1,000,000 154,008 1,154,008
2016 1,030,000 118,983 1,148,983
2017 - 2021 2,700,000 155,317 2,855,317
7,535,000$ 1,080,076$ 8,615,076$
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
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15. SPECIAL ASSESSMENT DEBT (CONTINUED):
Bond Reserve Requirements
At June 30, 2011, the fund balance reserve requirements and actual reserve balances were as
follows:
Requirement Actual
Assessment District 98-1 62,500$ 142,152$
2003 Financing Authority Revenue Bonds 270,175 333,296
CFD 2005-1 Special Tax Bonds 4,580,818 4,618,060
Assessment District 29 1,933,175 1,945,358
2008 Special Tax Refunding Bonds 1,076,884 1,093,528
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, 2011, the outstanding amount was
$18,575,000.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 115 -
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, 2011,
the outstanding amount was $66,090,000.
17. OTHER DISCLOSURES:
The Palm Desert Recreational Facilities Corporation has a net asset deficit of $1,373,855, which
will be eliminated by increasing revenues through banquet reservations and outings directly related
to the expansion of the outside dining terrace and the kitchen.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 116 -
18. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS:
Construction Commitments
Current
Yea Spent Remaining
Spent to Date Commitment
Parks and recreation 70,351$ 155,857$ 271,592$
Low income housing 108,209 169,284 2,597,580
Street resurfacing 1,431,112 1,431,112 604,294
Building construction 458,127 471,877 1,310,200
Street improvements 2,529,309 3,109,486 3,931,380
Freeway on-ramp improvements 50,385 1,007,529 281,967
Aquatic Center construction 8,135,267 8,606,678 1,147,972
Residential street construction - 1,185,137 873,060
Drainage 41,552 125,825 2,886,033
12,824,312 16,262,785 13,904,078
Miscellaneous non construction 1,772,738 2,004,374 2,806,631
14,597,050$ 18,267,159$ 16,710,709$
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
SERAF contribution for fiscal year 2010-2011 made by the Agency totaled $5,255,397.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
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20. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES:
As part of the State Budget for fiscal year 2011-2012, Governor Brown signed two bills, AB X1 26
and AB X1 27, on June 29, 2011, affecting redevelopment agencies throughout the State of
California. Upon its effectiveness on June 29, 2011, AB X1 26 immediately prohibited
redevelopment agencies from engaging in most activities (including, but not limited to, the
incurrence of new debt, the execution of new contracts and the modification of existing contracts).
Furthermore, pursuant to AB X1 26, a redevelopment agency would be dissolved on
October 1, 2011, unless the city (or the county, as the case may be) that activated the
redevelopment agency timely enacted an ordinance (an “AB X1 27 Ordinance”) to opt into the
“Alternative Voluntary Redevelopment Program” (“AVRP”) and agreed to make specified annual
payments to the county auditor-controller for allocation to special districts and educational entities.
Pursuant to AB X1 27, as long as the city is a participant in the AVRP, the redevelopment agency
would be exempt from most of the provisions of AB X1 26 and be permitted to continue and carry
on redevelopment activities.
On July 18, 2011, the California Redevelopment Association (the “CRA”) and the League of
California Cities (the “League”) filed a petition with the California Supreme Court, requesting the
Court to review the constitutionality of AB X1 26 and AB X1 27 (California Redevelopment Assn.
v. Matosantos, S194861) (the “CRA Lawsuit”). The CRA and the League also requested the
Supreme Court to issue a stay of the implementation of AB X1 26 and AB X1 27, pending the
Court’s disposition of the CRA Lawsuit. On August 11, 2011, the Supreme Court issued a stay
order (the “Stay Order”), which was modified on August 17, 2011. The Supreme Court granted a
stay of portions of AB X1 26 and AB X1 27. The provisions that allow a redevelopment agency to
continue carrying on redevelopment activities, if the city has adopted an AB X1 27 Ordinance, are
subject to the stay.
The City Council of the City of Palm Desert adopted Ordinance No. 1227 on September 8, 2011,
opting into the AVRP in order to provide for the continuation of the Palm Desert Redevelopment
Agency. However, because of the effect of the Stay Order, the authority for the Agency to engage
in most activities, as of the date of this report, continues to be in suspension. The initial payment
by the City is estimated to be $20.5 million with one half due on January 15, 2012 and the other
half due May 15, 2012. The amounts to be paid for the fiscal year 2012-13 and succeeding years
have yet to be determined. The semi-annual payments will be due on January 15 and May 15 of
each year and would increase or decrease with changes in tax increment. Additionally, an increased
amount would be due to schools if any “new debt” is incurred. Assembly Bill X1 27 allows a
one-year reprieve on the Agency’s obligation to contribute 20% of tax increment to the low- and
moderate-income housing fund.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
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20. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES (CONTINUED):
The City and Agency have entered into a reimbursement agreement and the reprieve on the
Agency’s obligation to contribute to housing will assist the Agency to assemble sufficient funds to
reimburse the City for the initial payments. Failure to make these payments would require agencies
to be terminated under the provisions of AB X1 26.
The Supreme Court heard oral arguments on November 10, 2011, but has not issued its decision as
of the date of this report. It is uncertain whether the Supreme Court will strike down, uphold or
modify some or all of the provisions of AB X1 26 and AB X1 27. If AB X1 26 and AB X1 27 are
upheld in whole or in part, it may take some time to ascertain the mechanics and practical effects of
the implementation of the upheld provisions. For example, under AB X1 26, if a redevelopment
agency is dissolved, a successor agency to the redevelopment agency will be required to make
payments for enforceable obligations, including previously issued agency bonds, listed in
Recognized Obligation Payment Schedules. However, AB X1 26 establishes a flow of revenues to
repay bonds that is different from the flow of tax increment currently provided in the Community
Redevelopment Law.
Further, under AB X1 26, if the Agency is dissolved, the State Controller of the State of California
is directed to review the propriety of any transfers of assets between redevelopment agencies and
other public bodies that occurred after January 1, 2011. If the public body that received such
transfers is not contractually committed to a third party for the expenditure or encumbrance of
those assets, the State Controller is required to order the available assets to be transferred to the
public body designated as the successor agency by AB X1 26, if a successor agency is established
by only to such extent that such order for return is not prohibited by state or federal law.
In addition, under AB X1 26, if the Agency is dissolved, the interagency receivable recognized by
funds of the City that had previously loaned or advanced funds to the Agency may become
uncollectible resulting in a loss recognized by such funds. The City may also be impacted if
reimbursements previously paid by the Agency to the City for shared administrative services are
reduced or eliminated.
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2011
See independent auditors’ report.
- 119 -
20. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES (CONTINUED):
Management believes that the Agency will have sufficient funds to pay its obligations as they
become due during the fiscal year ending June 30, 2012. The nature and extent of the operation of
redevelopment agencies in the State of California beyond that time frame cannot be determined at
this time and are dependent upon the outcome of many factors related to the constitutionality of
AB X1 26 and AB X1 27. There is always a possibility that future legislative acts may create new
challenges to the ability of redevelopment agencies to operate in the State of California in light of
the California State Legislature’s continued taking of redevelopment agencies funding to balance
the state’s budget.
The full text of AB X1 26 and AB X1 27 may be obtained from the “Official California Legislative
Information” website maintained by the Legislative Counsel of the State of California, at the
following webpage: http://www.leginfo.ca.gov/bilinfo.html. Docket information for the CRA
Lawsuit can be found at the California Appellate Courts Case Information System website, at the
following webpage: http://appellatecases.courtinfo.ca.gov. None of the websites or webpages
referenced above are in any way incorporated into this Annual Report. They are cited for
informational purposes only. The Agency makes no representation whatsoever as to the accuracy
or completeness of any of the information on such websites.
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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%
06/30/09 79,133,393 57,022,230 22,111,163 72.06% 15,212,102 145.35%
06/30/10 87,876,959 61,203,162 26,673,797 69.65% 13,489,043 197.74%
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, 2011
- 121 -
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 77,568,968$ 77,568,968$ 77,568,968$ -$
Resources (inflows):
Taxes 34,262,000 34,262,000 35,933,144 1,671,144
Licenses and permits 670,000 670,000 1,051,475 381,475
Intergovernmental revenues 2,596,000 2,596,000 2,226,534 (369,466)
Charges of services 545,000 545,000 701,481 156,481
Fines and forfeitures 130,000 130,000 109,110 (20,890)
Investment earnings 1,325,000 1,325,000 793,461 (531,539)
Miscellaneous 682,000 682,000 654,339 (27,661)
Transfers from other funds 2,700,000 2,700,000 2,691,634 (8,366)
Total resources 42,910,000 42,910,000 44,161,178 1,251,178
Charges to appropriations (outflows):
Current:
General governmen 11,431,026 12,122,826 11,260,339 862,487
Public safety 18,419,890 17,977,754 17,571,739 406,015
Public works 8,335,761 10,119,550 8,525,528 1,594,022
Parks, recreation and culture 4,215,562 4,138,612 3,845,901 292,711
Capital outla - 677,650 629,784 47,866
Transfers to other funds 504,000 5,725,251 5,679,432 45,819
Total charges to appropriations 42,906,239 50,761,643 47,512,723 3,248,920
Excess of resources over (under)
charges to appropriations 3,761 (7,851,643) (3,351,545) 4,500,098
Fund balance, June 30 77,572,729 69,717,325 74,217,423 4,500,098
See independent auditors' report and note to required supplementary information.
CITY OF PALM DESERT
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For the year ended June 30, 2011
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Schedule 3
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 2,019,849$ 2,019,849$ 2,019,849$ -$
Resources (inflows):
Taxes 5,100,000 5,100,000 5,237,952 137,952
Special assessments collecte 2,039,000 2,039,000 2,134,244 95,244
Intergovernmental revenues 756,000 756,000 787,806 31,806
Investment earnings 50,000 50,000 13,348 (36,652)
Miscellaneous - - 41,899 41,899
Total resources 7,945,000 7,945,000 8,215,249 270,249
Charges to appropriations (outflows):
Current:
Public safety 9,581,040 9,528,491 9,107,998 420,493
Capital outla - 53,274 53,274 -
Total charges to appropriations 9,581,040 9,581,765 9,161,272 420,493
Excess of resources over (under)
charges to appropriations (1,636,040) (1,636,765) (946,023) 690,742
Fund balance, June 30 383,809 383,084 1,073,826 690,742
See independent auditors' report and note to required supplementary information.
CITY OF PALM DESERT
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For the year ended June 30, 2011
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX SPECIAL REVENUE FUND
See independent auditors’ report.
- 125 -
CITY OF PALM DESERT
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2011
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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- 127 -
GENERAL FUND
The General Fund is used to account for all financial resources traditionally associated with
government, except those required to be accounted for in another fund. It is the primary operating fund
that includes the operating budgets for all the departments and the majority of the City’s tax revenues.
Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 77,568,968$ 77,568,968$ 77,568,968$ -$
Resources (inflows):
Taxes:
Property taxes 5,415,000 5,415,000 4,776,795 (638,205)
Property transfer tax 350,000 350,000 399,280 49,280
Property tax in lie 3,550,000 3,550,000 3,564,933 14,933
Timeshare mitigation fee 1,000,000 1,000,000 1,192,490 192,490
Sales tax 13,200,000 13,200,000 14,680,578 1,480,578
Business license tax 1,200,000 1,200,000 1,085,411 (114,589)
Job valuation fees 25,000 25,000 20,402 (4,598)
Transient occupancy tax 6,700,000 6,700,000 7,421,769 721,769
Franchises 2,800,000 2,800,000 2,771,594 (28,406)
Penalties and interest on taxes 22,000 22,000 19,892 (2,108)
Total Taxes 34,262,000 34,262,000 35,933,144 1,671,144
CITY OF PALM DESERT
For the year ended June 30, 2011
Budgeted Amount
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
Licenses and Permits:
Building permit 550,000 550,000 781,015 231,015
Grading - - 2,016 2,016
Valet parking permits - - 375 375
Encroachment permits 50,000 50,000 211,876 161,876
Miscellaneous permits - - 2,525 2,525
Business regulatory permit 70,000 70,000 53,668 (16,332)
Total Licenses and Permits 670,000 670,000 1,051,475 381,475
Intergovernmental Revenues:
Motor vehicle in-lieu fees 150,000 150,000 236,211 86,211
Monthly parking bal 25,000 25,000 18,818 (6,182)
Reimbursement RDA costs 2,034,000 2,034,000 1,209,216 (824,784)
Other reimbursements 387,000 387,000 762,289 375,289
Total Intergovernmental Revenues 2,596,000 2,596,000 2,226,534 (369,466)
See independent auditors' report.(Continued)
- 128 -
Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Resources (inflows) (Continued):
Charges for Services:
Subdivision fees 150,000$ 150,000$ 222,025$ 72,025$
Zoning fees 75,000 75,000 78,461 3,461
Plan check fees 200,000 200,000 317,332 117,332
Sale of maps and publications 15,000 15,000 19,561 4,561
Microfilm fees 10,000 10,000 12,713 2,713
Other fees 95,000 95,000 51,389 (43,611)
Total Charges for Services 545,000 545,000 701,481 156,481
Fines and Forfeitures:
Vehicle code fines 65,000 65,000 21,493 (43,507)
Municipal court fines 65,000 65,000 87,617 22,617
Total Fines and Forfeitures 130,000 130,000 109,110 (20,890)
Investment Earnings:
GENERAL FUND
For the year ended June 30, 2011
Budgeted Amount
(CONTINUED)
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
Interest ncome 675,000 675,000 477,660 197,340
Interest on advances 500,000 500,000 231,230 (268,770)
Interest on notes receivable 150,000 150,000 84,571 (65,429)
Total Investment Earnings 1,325,000 1,325,000 793,461 (531,539)
Miscellaneous Revenues:
Code compliance 10,000 10,000 1,835 (8,165)
Strong motion instrument fe 10,000 10,000 5,249 (4,751)
Special investigation fee 10,000 10,000 3,951 (6,049)
Certificate of compliance fee 2,000 2,000 1,175 (825)
uisance abatement tax 60,000 60,000 179,799 119,799
Abandoned vehicle abatement 35,000 35,000 55,752 20,752
Fire inspection service 100,000 100,000 91,580 (8,420)
Rental income 250,000 250,000 154,187 (95,813)
Other revenue 205,000 205,000 160,811 (44,189)
Total Miscellaneous Revenues 682,000 682,000 654,339 (27,661)
Transfers from other funds 2,700,000 2,700,000 2,691,634 (8,366)
Amounts Available for Appropriatio 42,910,000 42,910,000 44,161,178 1,251,178
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 415,785$ 415,785$ 363,510$ 52,275$
City cler 945,600 945,600 941,393 4,207
Legislative advocac 40,000 40,000 36,225 3,775
Electio 61,900 61,900 39,563 22,337
City attorne 225,000 226,000 225,996 4
Legal special services 335,000 422,000 421,038 962
City manage 910,350 937,350 887,842 49,508
Community service 395,225 395,225 376,501 18,724
Finance 1,745,826 1,805,826 1,804,282 1,544
Auditin 50,000 50,000 34,716 15,284
Human resources 467,491 467,491 458,347 9,144
General services 432,000 535,000 502,845 32,155
Data processing 841,311 843,111 762,978 80,133
Unemployment insuranc 200,000 200,000 194,509 5,491
Insurance 498,700 505,700 473,569 32,131
Retiree health - 500 000 500 000 -
(CONTINUED)
For the year ended June 30, 2011
Budgeted Amount
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
Community promotion 545,875 565,875 497,366 68,509
Community developmen 1,835,013 1,635,013 1,550,452 84,561
Marketing 782,950 622,950 575,154 47,796
Total General Government - Departm 10,728,026 11,174,826 10,646,286 528,540
General Government - Nondepartmental:
Contributions to other agencie 703,000 948,000 614,053 333,947
Public Safety:
Police services 16,339,096 15,839,096 15,543,543 295,553
Animal regulatio 257,119 273,619 238,982 34,637
Traffic safety 248,000 289,364 265,466 23,898
Building and safet 1,575,675 1,575,675 1,523,748 51,927
Total Public Safet 18,419,890 17,977,754 17,571,739 406,015
See independent auditors' report.(Continued)
- 130 -
Schedule 4
Variance with
Final Budge
Actual Positive
Original Final Amounts (Negative)
Charges to appropriations (outflows) (Continued):
Public Works:
Administratio 2,272,903$ 2,381,259$ 2,380,255$ 1,004$
Street maintenance 2,659,000 2,559,000 2,522,117 36,883
Street resurfacing 1,900,000 3,522,473 2,268,901 1,253,572
Curb and gutte 80,000 99,525 47,350 52,175
Parking lo 80,000 80,000 69,935 10,065
Storm drai 25,000 65,793 50,892 14,901
Strippin 125,000 217,642 99,685 117,957
Corporate yar 75,500 75,500 71,336 4,164
Equipmen 420,000 420,000 349,209 70,791
Building maintenance 566,100 566,100 547,183 18,917
Portola community cente 79,907 79,907 68,458 11,449
Storm water permi 52,351 52,351 50,207 2,144
Total Public Works 8,335,761 10,119,550 8,525,528 1,594,022
Parks Recreation and Culture:
GENERAL FUND
(CONTINUED)
For the year ended June 30, 2011
Budgeted Amount
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
Park maintenance 780,500 791,550 691,440 100,110
Civic center par 1,057,351 1,057,351 988,169 69,182
Landscape service 1,846,700 1,758,700 1,696,163 62,537
Visitors cente 531,011 531,011 470,129 60,882
Total Parks, Recreation and Culture 4,215,562 4,138,612 3,845,901 292,711
Capital Outlay - Departmenta - 677,650 629,784 47,866
Transfers to other funds 504,000 5,725,251 5,679,432 45,819
Amounts Charged to Appropriatio 42,906,239 50,761,643 47,512,723 3,248,920
Excess of resources over (under)
charges to appropriations 3,761 (7,851,643) (3,351,545) 4,500,098
Fund balance, June 30 77,572,729 69,717,325 74,217,423 4,500,098
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 Fun Funds Funds
ASSETS:
Pooled cash and investments 53,242,474$ 147,578$ 25,123,343$ 78,513,395$
Receivables:
Accounts 167,337 - 462,649 629,986
Assessments - 1,509,558 - 1,509,558
Interest 230,147 - 46,362 276,509
Loans 5,417,386 - 102,300 5,519,686
Prepaid costs - - 306 306
Inventories 2,098 - - 2,098
Due from other government 1,121,739 9,058 22,858 1,153,655
Property held for resale 298,025 - - 298,025
Due from other funds - - 500,000 500,000
Advances to other funds 654,000 - 10,265,000 10,919,000
Restricted assets:
Cash and investments with fiscal agen 2,796,931 - 21,220,460 24,017,391
T T L ET ,,7 ,, 57,7 ,7 ,,
LIABILITIES:
Accounts payable 2,005,719$ -$ 488,911$ 2,494,630$
Accrued liabilities 54,513 - 7,453 61,966
Unearned revenues 86,862 - 76,238 163,100
Deferred revenue 238,339 1,509,558 459,724 2,207,621
Deposits payable 393,871 - 172,162 566,033
TOTAL LIABILITIES 2,779,304 1,509,558 1,204,488 5,493,350
FUND BALANCES:
onspendable:
Advances 654,000 - 10,765,000 11,419,000
Prepaid costs - - 306 306
Property held for resale 298,025 - - 298,025
Restricted for:
Capital projects - - 24,683,865 24,683,865
Debt service - 156,636 - 156,636
Low income housin 5,600,147 - - 5,600,147
Public facilities 3,360,074 - - 3,360,074
Public safety 705,167 - - 705,167
Special programs 7,638,202 - 1,713,620 9,351,822
Street related purposes 25,609,485 - - 25,609,485
Committed to:
Aquatic center 1,135,692 - - 1,135,692
Capital asset replacement 7,752,862 - - 7,752,862
Energy loan progra 8,397,179 - - 8,397,179
Assigned to:
Capital projects - - 7,943,281 7,943,281
Property acquisitio - - 1,000,000 1,000,000
Public facilities - - 6,389,251 6,389,251
Special programs - - 542,888 542,888
Street related purposes - - 3,500,579 3,500,579
TOTAL FUND BALANCES 61,150,833 156,636 56,538,790 117,846,259
TOTAL LIABILITIES
ND FUND B L N E ,,7 ,, 57,7 ,7 ,,
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 134 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2011
Schedule 6
Total
Special Debt Capital Other
Revenue Service Projects Governmental
Funds Fund Funds Funds
REVENUES:
Taxes 2,523,406$ -$ -$ 2,523,406$
Special assessments collected 961,496 166,423 - 1,127,919
Licenses and permits - - 38,068 38,068
Intergovernmental revenues 4,042,318 - 548,624 4,590,942
Rental income 4,728,432 - - 4,728,432
Investment earnings 359,629 976 632,740 993,345
Fines and forfeitures 201,730 - - 201,730
Miscellaneous 712,140 - 980,053 1,692,193
TOTAL REVENUES 13,529,151 167,399 2,199,485 15,896,035
EXPENDITURES:
Current:
General government 1,718,358 30,574 2,215,511 3,964,443
Housing and redevelopment 4,775,214 - - 4,775,214
Public safety 144,697 - - 144,697
Public works 1,580,846 - 1,150,125 2,730,971
Capital outlay 3,660,905 - 302,469 3,963,374
Debt service:
Principal retirement 491,000 61,000 - 552,000
Interest and fiscal charges 274,147 85,683 - 359,830
TOTAL EXPENDITURES 12,645,167 177,257 3,668,105 16,490,529
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 883,984 (9,858) (1,468,620) (594,494)
OTHER FINANCING SOURCES (USES):
Transfers in 9,055,927 - 5,565,029 14,620,956
Transfers out (3,112,193) - (1,364,470) (4,476,663)
TOTAL OTHER FINANCING
SOURCES (USES) 5,943,734 - 4,200,559 10,144,293
NET CHANGE IN FUND BALANCES 6,827,718 (9,858) 2,731,939 9,549,799
FUND BALANCES - BEGINNING OF YEAR 54,323,115 166,494 53,806,851 108,296,460
FUND BALANCES - END OF YEAR 61,150,833$ 156,636$ 56,538,790$ 117,846,259$
See independent auditors' report.
- 135 -
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2011
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- 137 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than
expendable trust that are legally restricted to expenditures for specific purposes.
Traffic Safety Fund - Traffic and court fines are collected in these funds. A transfer from this Fund to
the General Fund is made at the end of the fiscal year by council action to be applied toward the
eligible expenditures permitted by law.
Gas Tax Fund - Portions of the tax rate per gallon levied by the State of California on all gasoline
purchases are allocated to cities throughout the State. These funds are restricted to expenditure for
transit and street-related purposes.
Measure A Fund - In 1988, Riverside County voters approved a half-cent sales tax, known as Measure
A, to fund a variety of highway improvements, local street and road maintenance, commuter assistance
and specialized transit projects. This fund is used to collect this tax, and pursuant to the provision of
Measure A (Ordinance No. 88-1 of the County of Riverside) it is restricted for local street and road
expenditures only.
Housing Mitigation Fee Fund - This fund is used to account for fees collected from construction of
commercial and office buildings for low and moderate income mitigation purposes to be used strictly
for projects and programs that benefit the low and moderate income households.
Community Development Block Grant Fund - This fund is used to account for the receipts and
expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development.
New Construction Tax Fund - This fund is used to account for tax collected upon application to the
City for a building permit from every person/entity for the construction of any new building, addition
or trailer space in the city according to a fee schedule. Its use is restricted for the acquisition and
development of public facilities such as parks, playgrounds and public structures.
Planned Drainage Fund - This fund is used to account for off-site drainage fees based on an established
fee schedule collected prior to approval of the final map in the case of land being subdivided or prior to
the issuance of a building permit in the case of construction or improvement of subdivided land.
Park and Recreation Facilities Fund - This fund is used to account for fees collected for residential and
subdivision developments collected either at the time grading permits are paid or prior to the approval
of the final map. Its use is restricted for expenditures related to park development, maintenance and
equipment.
Traffic Signals Fund - This fund is used to account for fees collected for residential, commercial and
industrial developments either at the time grading permits are paid or prior to the approval of the final
map. Its use is restricted for expenditures related to the acquisition and maintenance of traffic signals.
Recycling Fund - This fund is used to account for resources resulting from lower landfill tipping fees
of $4.19 per ton, which took effect in June 2011. Due to limited landfill resources, it will be used for
the implementation of appropriate long-range plans to be determined by the City Council for municipal
solid waste disposal.
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- 139 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Public Safety Police Grants Fund - This fund is used to account for grants received from the U.S.
Department of Justice under the Local Law Enforcement Block Grants Program for the purpose of
purchasing equipment related to public safety.
El Paseo Assessment District Fund - This fund is used to collect assessments on all business
establishments located within the boundaries set for the El Paseo parking and business improvement
area based on a fee schedule established for the various types of businesses. Proceeds from all charges
are used for the promotion of business activities in the area.
Air Quality Management Fund - This fund accounts for receipts from South Coast Air Quality
Management District, one hundred percent of which is disbursed to the Coachella Valley Association
of Governments.
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.
Aquatic Center Fund -This fund is used to account for revenues and expenditures of the city’s aquatic
facility.
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 -$ 520,331$ 20,078,640$ 2,356,155$
Receivables:
Accounts - - - 30,000
Interest - - - 3,161
Loans - - - -
Inventories - - - -
Due from other governments 13,304 155,527 496,888 -
Property held for resale - - - 298,025
Advances to other funds - - - -
Restricted assets:
Cash and investments with fiscal agent - - - -
TOTAL ASSETS 13,304$ 675,858$ 20,575,528$ 2,687,341$
LIABILITIES:
Accounts payable -$ -$ 187,714$ -$
Accrued liabilities - - - -
Unearned revenues - - 26,222 -
Deferred revenue - - - -
Deposits payable - - - -
TOTAL LIABILITIES - - 213,936 -
FUND BALANCES:
Nonspendable:
Advances - - - -
Property held for resale - - - 298,025
Restricted for:
Low income housing - - - 2,389,316
Public facilities - - - -
Public safety - - - -
Special programs - - - -
Street related purposes 13,304 675,858 20,361,592 -
Committed to:
Aquatic center - - - -
Capital asset replacement - - - -
Energy loan program - - - -
TOTAL FUND BALANCES 13,304 675,858 20,361,592 2,687,341
TOTAL LIABILITIES
AND FUND BALANCES 13,304$ 675,858$ 20,575,528$ 2,687,341$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 140 -
COMBINING BALANCE SHEET
June 30, 2011
CITY OF PALM DESERT
OTHER SPECIAL REVENUE FUNDS
Schedule 7
Community New Park and Public El Paseo
Development Construction Planned Recreation Traffic Safety Police Assessment
Block Grant Tax Drainage Facilities Signals Recycling Grants District
2,878$ 557,589$ 4,744,220$ 1,542,543$ 541,481$ 5,678,994$ 34,244$ 36,422$
- - - - - 104,783 - -
- - - - - - - -
13,310 - - - - - - -
- - - - - - - -
124,203 - 205,470 - - 74,368 19,088 -
- - - - - - - -
- 654,000 - - - - - -
- - - - - - - -
140,391$ 1,211,589$ 4,949,690$ 1,542,543$ 541,481$ 5,858,145$ 53,332$ 36,422$
124,203$ 87,558$ 931,414$ 142,208$ 1,026$ 106,062$ 23,761$ 10,675$
- - - - - 6,637 - -
- - - - - 16,552 21,889 -
13,310 - - - - - - -
- - - - - - - -
137,513 87,558 931,414 142,208 1,026 129,251 45,650 10,675
- 654,000 - - - - - -
- - - - - - - -
- - - - - - - -
- 470,031 - 1,400,335 - - - -
- - - - - - 7,682 -
2,878 - - - - 5,728,894 - 25,747
- - 4,018,276 - 540,455 - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
2,878 1,124,031 4,018,276 1,400,335 540,455 5,728,894 7,682 25,747
140,391$ 1,211,589$ 4,949,690$ 1,542,543$ 541,481$ 5,858,145$ 53,332$ 36,422$
(Continued)
- 141 -
Landscape
Air City Wide and Lighting
Quality Business Districts AIPP
Management License Nos. 1 - 17 Maintenance
ASSETS:
Pooled cash and investments 275,791$ -$ 1,626,560$ -$
Receivables:
Accounts - - - -
Interest - - - -
Loans - - - -
Inventories - - - -
Due from other governments 12,041 - 17,244 -
Property held for resale - - - -
Advances to other funds - - - -
Restricted assets:
Cash and investments with fiscal agent - - - -
TOTAL ASSETS 287,832$ -$ 1,643,804$ -$
LIABILITIES:
Accounts payable 12,041$ -$ 38,912$ -$
Accrued liabilities - - - -
Unearned revenues - - - -
Deferred revenue - - - -
Deposits payable - - - -
TOTAL LIABILITIES 12,041 - 38,912 -
FUND BALANCES:
Nonspendable:
Advances - - - -
Property held for resale - - - -
Restricted for:
Low income housing - - - -
Public facilities - - - -
Public safety - - - -
Special programs 275,791 - 1,604,892 -
Street related purposes - - - -
Committed to:
Aquatic center - - - -
Capital asset replacement - - - -
Energy loan program - - - -
TOTAL FUND BALANCES 275,791 - 1,604,892 -
TOTAL LIABILITIES
AND FUND BALANCES 287,832$ -$ 1,643,804$ -$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 142 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
June 30, 2011
Schedule 7
Redevelopment Total
Fire Energy Agency Other
Child Care Golf Course Facilities Independence Aquatic Housing Special Revenue
Program Maintenance Restoration Loan Center Authority Funds
1,489,708$ -$ 697,485$ 2,939,833$ 1,207,741$ 8,911,859$ 53,242,474$
- - - - 29,848 2,706 167,337
- - - 225,029 - 1,957 230,147
- - - 5,404,076 - - 5,417,386
- - - - 2,098 - 2,098
- - - 3,606 - - 1,121,739
- - - - - - 298,025
- - - - - - 654,000
- - - 79,682 - 2,717,249 2,796,931
1,489,708$ -$ 697,485$ 8,652,226$ 1,239,687$ 11,633,771$ 63,930,137$
-$ -$ -$ 30,018$ 95,010$ 215,117$ 2,005,719$
- - - - - 47,876 54,513
- - - - 8,985 13,214 86,862
- - - 225,029 - - 238,339
- - - - - 393,871 393,871
- - - 255,047 103,995 670,078 2,779,304
- - - - - - 654,000$
- - - - - - 298,025
- - - - - 3,210,831 5,600,147
1,489,708 - - - - - 3,360,074
- - 697,485 - - - 705,167
- - - - - - 7,638,202
- - - - - - 25,609,485
- - - - 1,135,692 - 1,135,692
- - - - - 7,752,862 7,752,862
- - - 8,397,179 - - 8,397,179
1,489,708 - 697,485 8,397,179 1,135,692 10,963,693 61,150,833
1,489,708$ -$ 697,485$ 8,652,226$ 1,239,687$ 11,633,771$ 63,930,137$
- 143 -
Housing
Traffic Mitigation
Safety Gas Tax Measure A Fee
REVENUES:
Taxes -$ -$ 1,875,080$ 15,759$
Special assessments collected - - - -
Intergovernmental revenues - 1,291,281 1,002,461 304,136
Rental income - - - -
Investment earnings 533 4,872 123,196 32,406
Fines and forfeitures 201,730 - - -
Miscellaneous - - - 210,000
TOTAL REVENUES 202,263 1,296,153 3,000,737 562,301
EXPENDITURES:
Current:
General government - - - -
Housing and redevelopment - - - 4,062
Public safety - - - -
Public works - 467,198 - -
Capital outlay - - 864,272 -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES - 467,198 864,272 4,062
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 202,263 828,955 2,136,465 558,239
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out (205,915) (701,313) - -
TOTAL OTHER FINANCING
SOURCES (USES) (205,915) (701,313) - -
NET CHANGE IN FUND BALANCES (3,652) 127,642 2,136,465 558,239
FUND BALANCES
BEGINNING OF YEAR 16,956 548,216 18,225,127 2,129,102
FUND BALANCES END OF YEAR 13,304$ 675,858$ 20,361,592$ 2,687,341$
See independent auditors' report.
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF PALM DESERT
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2011
- 144 -
OTHER SPECIAL REVENUE FUNDS
Schedule 8
Community New Park and Public El Paseo
Development Construction Planned Recreation Traffic Safety Police Assessment
Block Grant Tax Drainage Facilities Signals Recycling Grants District
-$ 129,262$ 7,050$ -$ 6,484$ -$ -$ -$
- - - - - - - 205,341
556,412 - 205,470 67,305 129,587 228,501 200,447 -
- - - - - - - -
254 19,549 37,872 10,768 4,425 40,960 - -
- - - - - - - -
- - - - - 310,038 - -
556,666 148,811 250,392 78,073 140,496 579,499 200,447 205,341
554,880 - - - - 611,844 - 211,892
- - - - - - - -
- - - - - - 144,697 -
- 147,151 25 96,194 99,940 278,639 - -
- - 1,668,203 341,740 228,523 17,604 58,252 -
- - - - - - - -
- - - - - - - -
554,880 147,151 1,668,228 437,934 328,463 908,087 202,949 211,892
1,786 1,660 (1,417,836) (359,861) (187,967) (328,588) (2,502) (6,551)
- - - - - - - -
- - - - - - - -
- - - - - - - -
1,786 1,660 (1,417,836) (359,861) (187,967) (328,588) (2,502) (6,551)
1,092 1,122,371 5,436,112 1,760,196 728,422 6,057,482 10,184 32,298
2,878$ 1,124,031$ 4,018,276$ 1,400,335$ 540,455$ 5,728,894$ 7,682$ 25,747$
(Continued)
- 145 -
Landscape
Air City Wide and Lighting
Quality Business Districts AIPP
Management License Nos. 1 - 17 Maintenance
REVENUES:
Taxes -$ -$ -$ -$
Special assessments collected - - 756,155 -
Intergovernmental revenues 56,718 - - -
Rental income - - - -
Investment earnings 1,858 - 3,844 -
Fines and forfeitures - - - -
Miscellaneous - - - -
TOTAL REVENUES 58,576 - 759,999 -
EXPENDITURES:
Current:
General government 58,775 - - -
Housing and redevelopment - - - -
Public safety - - - -
Public works - - 491,699 -
Capital outlay - - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES 58,775 - 491,699 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (199) - 268,300 -
OTHER FINANCING SOURCES (USES):
Transfers in - - 75,513 -
Transfers out - (1,492) - -
TOTAL OTHER FINANCING
SOURCES (USES) - (1,492) 75,513 -
NET CHANGE IN FUND BALANCES (199) (1,492) 343,813 -
FUND BALANCES
BEGINNING OF YEAR 275,990 1,492 1,261,079 -
FUND BALANCES END OF YEAR 275,791$ -$ 1,604,892$ -$
See independent auditors' report.
AND CHANGES IN FUND BALANCES
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
For the year ended June 30, 2011
CITY OF PALM DESERT
- 146 -
COMBINING STATEMENT OF REVENUES, EXPENDITURES
Schedule 8
Redevelopment Total
Fire Energy Agency Other
Child Care Golf Course Facilities Independence Aquatic Housing Special Revenue
Program Maintenance Restoration Loan Center Authority Funds
19,232$ -$ 48,459$ 422,080$ -$ -$ 2,523,406$
- - - - - - 961,496
- - - - - - 4,042,318
- - - - - 4,728,432 4,728,432
10,614 - 4,465 25,805 358 37,850 359,629
- - - - - - 201,730
- - - 3,422 22,962 165,718 712,140
29,846 - 52,924 451,307 23,320 4,932,000 13,529,151
4,895 - - 124,525 151,547 - 1,718,358
- - - - - 4,771,152 4,775,214
- - - - - - 144,697
- - - - - - 1,580,846
100,923 - - - - 381,388 3,660,905
- - - 491,000 - - 491,000
- - - 274,147 - - 274,147
105,818 - - 889,672 151,547 5,152,540 12,645,167
(75,972) - 52,924 (438,365) (128,227) (220,540) 883,984
- - - - 1,263,919 7,716,495 9,055,927
- (2,203,473) - - - - (3,112,193)
- (2,203,473) - - 1,263,919 7,716,495 5,943,734
(75,972) (2,203,473) 52,924 (438,365) 1,135,692 7,495,955 6,827,718
1,565,680 2,203,473 644,561 8,835,544 - 3,467,738 54,323,115
1,489,708$ -$ 697,485$ 8,397,179$ 1,135,692$ 10,963,693$ 61,150,833$
- 147 -
Schedule 9-A
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 16,956$ 16,956$ 16,956$ -$
Resources (inflows):
Investment earnings 1,000 1,000 533 (467)
Fines and forfeitures 149,000 202,000 201,730 (270)
Total resources 150,000 203,000 202,263 (737)
Charges to appropriations (outflows):
Transfers out 150,000 206,000 205,915 85
Total charges to appropriations 150,000 206,000 205,915 85
Excess of resources over (under)
charges to appropriations - (3,000) (3,652) (652)
Fund balance, June 30 16,956$ 13,956$ 13,304$ (652)$
See independent auditors' report.
CITY OF PALM DESERT
- 148 -
For the year ended June 30, 2011
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 1 548,216$ 548,216$ 548,216$ -$
Resources (inflows):
Intergovernmental revenues 837,500 1,330,463 1,291,281 (39,182)
Investment earnings 12,500 12,500 4,872 (7,628)
Total resources 850,000 1,342,963 1,296,153 (46,810)
Charges to appropriations (outflows):
Current:
Public works - 1,123,855 467,198 656,657
Transfers out 850,000 850,000 701,313 148,687
Total charges to appropriations 850,000 1,973,855 1,168,511 805,344
Excess of resources over (under)
charges to appropriations - (630,892) 127,642 758,534
Fund balance, June 30 548,216$ (82,676)$ 675,858$ 758,534$
See independent auditors' report.
CITY OF PALM DESERT
- 149 -
For the year ended June 30, 2011
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 2,129,102$ 2,129,102$ 2,129,102$ -$
Resources (inflows):
Taxes 5,500 5,500 15,759 10,259
Intergovernmental revenues - - 304,136 304,136
Investment earnings 40,000 40,000 32,406 (7,594)
Miscellaneous 120,000 120,000 210,000 90,000
Total resources 165,500 165,500 562,301 396,801
Charges to appropriations (outflows):
Current:
Housing and redevelopment 500,000 841,831 4,062 837,769
Total charges to appropriations 500,000 841,831 4,062 837,769
Excess of resources over (under)
charges to appropriations (334,500) (676,331) 558,239 (440,968)
Fund balance, June 30 1,794,602$ 1,452,771$ 2,687,341$ (440,968)$
See independent auditors' report.
CITY OF PALM DESERT
- 150 -
For the year ended June 30, 2011
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, July 1 1,092$ 1,092$ 1,092$ -$
Resources (inflows):
Intergovernmental revenues 427,000 427,000 556,412 129,412
Investment earnings 500 500 254 (246)
Total resources 427,500 427,500 556,666 129,166
Charges to appropriations (outflows):
Current:
General government 428,000 814,331 554,880 259,451
Total charges to appropriations 428,000 814,331 554,880 259,451
Excess of resources over (under)
charges to appropriations (500) (386,831) 1,786 388,617
Fund balance, June 30 592$ (385,739)$ 2,878$ 388,617$
See independent auditors' report.
CITY OF PALM DESERT
- 151 -
For the year ended June 30, 2011
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 10,184$ 10,184$ 10,184$ -$
Resources (inflows):
Intergovernmental revenues 447,600 447,600 200,447 (247,153)
Investment earnings 500 500 - (500)
Total resources 448,100 448,100 200,447 (247,653)
Charges to appropriations (outflows):
Current:
Public safety 447,600 447,600 144,697 302,903
Capital outlay - - 58,252 (58,252)
Total charges to appropriations 447,600 447,600 202,949 244,651
Excess of resources over (under)
charges to appropriations 500 500 (2,502) (3,002)
Fund balance, June 30 10,684$ 10,684$ 7,682$ (3,002)$
See independent auditors' report.
Budgeted Amounts
- 152 -
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
PUBLIC SAFETY POLICE GRANTS
For the year ended June 30, 2011
Schedule 9-F
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Fund balance, July 1 32,298$ 32,298$ 32,298$ -$
Resources (inflows):
Special assessments collected 200,000 200,000 205,341 5,341
Total resources 200,000 200,000 205,341 5,341
Charges to appropriations (outflows):
Current:
General government 200,000 222,000 211,892 10,108
Total charges to appropriations 200,000 222,000 211,892 10,108
Excess of resources over (under)
charges to appropriations - (22,000) (6,551) 15,449
Fund balance, June 30 32,298$ 10,298$ 25,747$ 15,449$
See independent auditors' report.
CITY OF PALM DESERT
- 153 -
For the year ended June 30, 2011
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 1,492$ 1,492$ 1,492$ -$
Resources (inflows):
Taxes 50,000 50,000 - (50,000)
Total resources 50,000 50,000 - (50,000)
Charges to appropriations (outflows):
Transfers out 50,000 50,000 1,492 48,508
Total charges to appropriations 50,000 50,000 1,492 48,508
Excess of resources over (under)
charges to appropriations - - (1,492) (1,492)
Fund balance, June 30 1,492$ 1,492$ -$ (1,492)$
See independent auditors' report.
CITY OF PALM DESERT
- 154 -
For the year ended June 30, 2011
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 1,261,079$ 1,261,079$ 1,261,079$ -$
Resources (inflows):
Special assessments collected 726,150 726,150 756,155 30,005
Investment earnings - - 3,844 3,844
Transfers from other funds 70,000 70,000 75,513 5,513
Total resources 796,150 796,150 835,512 39,362
Charges to appropriations (outflows):
Current:
Public works 772,704 805,485 491,699 313,786
Total charges to appropriations 772,704 805,485 491,699 313,786
Excess of resources over (under)
charges to appropriations 23,446 (9,335) 343,813 353,148
Fund balance, June 30 1,284,525$ 1,251,744$ 1,604,892$ 353,148$
See independent auditors' report.
CITY OF PALM DESERT
- 155 -
For the year ended June 30, 2011
Budgeted Amounts
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LANDSCAPE AND LIGHTING DISTRICTS NOS. 1 - 17
- 156 -
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- 157 -
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 147,578$ 147,578$
Receivables:
Assessments 1,509,558 1,509,558
Due from other governments 9,058 9,058
TOTAL ASSETS 1,666,194$ 1,666,194$
LIABILITIES:
Deferred revenue 1,509,558$ 1,509,558$
TOTAL LIABILITIES 1,509,558 1,509,558
FUND BALANCE:
Restricted for:
Debt service 156,636 156,636
TOTAL FUND BALANCE 156,636 156,636
TOTAL LIABILITIES
AND FUND BALANCE 1,666,194$ 1,666,194$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 158 -
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
June 30, 2011
Schedule 11
Total
City Other
Highlands Debt Service
Undergrounding Fund
REVENUES:
Special assessments collected 166,423$ 166,423$
Investment earnings 976 976
TOTAL REVENUES 167,399 167,399
EXPENDITURES:
Current:
General government 30,574 30,574
Debt service:
Principal retirement 61,000 61,000
Interest and fiscal charges 85,683 85,683
TOTAL EXPENDITURES 177,257 177,257
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (9,858) (9,858)
NET CHANGE IN FUND BALANCE (9,858) (9,858)
FUND BALANCE - BEGINNING OF YEAR 166,494 166,494
FUND BALANCE - END OF YEAR 156,636$ 156,636$
See independent auditors' report.
- 159 -
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
OTHER DEBT SERVICE FUND
For the year ended June 30, 2011
- 160 -
THIS PAGE INTENTIONALLY LEFT BLANK
- 161 -
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
Highlands Undergrounding
CFD University
Assessment
Capital Golf Fund - This fund is used to offset the cost of capital improvements, equipment purchases,
perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of
Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are
collections from the IROC and Standard Vacation Ownership, Inc. time-share project.
Capital Properties - This fund is used to account for the cost of city owned properties that will either be
sold or for the construction of public facilities.
Capital
Arts in Projects Drainage
Public Places Reserve Facilities
ASSETS:
Pooled cash and investments 1,912,720$ 8,914,617$ 3,163,795$
Receivables:
Accounts - 459,724 -
Interest - 6,877 -
Loans 102,300
Prepaid costs 36 - -
Due from other governments - 2,988 -
Due from other funds - - -
Advances to other funds - 5,500,000 -
Restricted assets:
Cash and investments with fiscal agent - - -
TOTAL ASSETS 1,912,756$ 14,986,506$ 3,163,795$
LIABILITIES:
Accounts payable 19,485$ 7,263$ 1,470$
Accrued liabilities 7,453 - -
Unearned revenue - 76,238 -
Deferred revenue - 459,724 -
Deposits payable 172,162 - -
TOTAL LIABILITIES 199,100 543,225 1,470
FUND BALANCES:
Nonspendable
Advance - 5,500,000 -
Prepaid costs 36 - -
Restricted for:
Capital projects - - -
Special programs 1,713,620 - -
Assigned to:
Capital projects - 7,943,281 -
Property acquisition - 1,000,000 -
Public facilities - - -
Special programs - - -
Street related purposes - - 3,162,325
TOTAL FUND BALANCES 1,713,656 14,443,281 3,162,325
TOTAL LIABILITIES AND FUND BALANCES 1,912,756$ 14,986,506$ 3,163,795$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 162 -
COMBINING BALANCE SHEET
June 30, 2011
CITY OF PALM DESERT
OTHER CAPITAL PROJECTS FUNDS
Schedule 12
Parks and Assessment
Recreation District No. 94-3
Facilities Signalization Buildings Library Merano
488,847$ 338,471$ 4,038,238$ 578,479$ -$
- - - - -
- - - - 2
- - - - -
- - 19,870 - -
- - - - -
4,765,000 - - - -
- - - - 178,895
5,253,847$ 338,471$ 4,058,108$ 578,479$ 178,897$
2,052$ 217$ 350,219$ 35,591$ -$
- - - - -
- - - - -
- - - - -
- - - - -
2,052 217 350,219 35,591 -
4,765,000 - - - -
- - - - -
- - - - 178,897
- - - - -
- - - - -
- - - - -
486,795 - 3,707,889 - -
- - - 542,888 -
- 338,254 - - -
5,251,795 338,254 3,707,889 542,888 178,897
5,253,847$ 338,471$ 4,058,108$ 578,479$ 178,897$
(Continued)
- 163 -
Silver Spur Highlands CFD
Ranch Undergrounding University
ASSETS:
Pooled cash and investments 582$ 20$ 3,067$
Receivables:
Accounts - - -
Interest - - 24,522
Loans
Prepaid costs - - -
Due from other governments - - -
Due from other funds - - -
Advances to other funds - - -
Restricted assets:
Cash and investments with fiscal agent - - 20,706,673
TOTAL ASSETS 582$ 20$ 20,734,262$
LIABILITIES:
Accounts payable -$ -$ 6,940$
Accrued liabilities - - -
Unearned revenue - - -
Deferred revenue - - -
Deposits payable - - -
TOTAL LIABILITIES - - 6,940
FUND BALANCES:
Nonspendable
Advance - - -
Prepaid costs - - -
Restricted for:
Capital projects 582 20 20,727,322
Special programs - - -
Assigned to:
Capital projects - - -
Property acquisition - - -
Public facilities - - -
Special programs - - -
Street related purposes - - -
TOTAL FUND BALANCES 582 20 20,727,322
TOTAL LIABILITIES AND FUND BALANCES 582$ 20$ 20,734,262$
See independent auditors' report.
LIABILITIES AND FUND BALANCES
- 164 -
CITY OF PALM DESERT
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
(CONTINUED)
June 30, 2011
Schedule 12
Total
Other
Assessment Capital Capital Capital Projects
29 Golf Properties Funds
3,442,049$ 2,213,310$ 29,148$ 25,123,343$
2,925 - - 462,649
2 14,959 - 46,362
- - 102,300
- 270 - 306
- - - 22,858
- 500,000 - 500,000
- - - 10,265,000
334,892 - - 21,220,460
3,779,868$ 2,728,539$ 29,148$ 57,743,278$
2,824$ 60,342$ 2,508$ 488,911$
- - - 7,453
- - - 76,238
- - - 459,724
- - - 172,162
2,824 60,342 2,508 1,204,488
- 500,000 - 10,765,000
- 270 - 306
3,777,044 - - 24,683,865
- - - 1,713,620
- - - 7,943,281
- - - 1,000,000
- 2,167,927 26,640 6,389,251
- - - 542,888
- - - 3,500,579
3,777,044 2,668,197 26,640 56,538,790
3,779,868$ 2,728,539$ 29,148$ 57,743,278$
- 165 -
Capital
Arts in Projects Drainage
Public Places Reserve Facilities
REVENUES:
Licenses and permits 38,068$ -$ -$
Intergovernmental revenues - 349,924 -
Investment earnings 14,856 292,003 21,514
Miscellaneous 349 - -
TOTAL REVENUES 53,273 641,927 21,514
EXPENDITURES:
Current:
General government 418,175 925,000 -
Public works - 90,536 3,958
Capital outlay 20,000 35,949 13,063
TOTAL EXPENDITURES 438,175 1,051,485 17,021
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (384,902) (409,558) 4,493
OTHER FINANCING SOURCES (USES):
Transfers in - 1,000,000 -
Transfers out - (376,000) -
TOTAL OTHER FINANCING
SOURCES (USES) - 624,000 -
NET CHANGE IN FUND BALANCES (384,902) 214,442 4,493
FUND BALANCES - BEGINNING OF YEAR 2,098,558 14,228,839 3,157,832
FUND BALANCES - END OF YEAR 1,713,656$ 14,443,281$ 3,162,325$
See independent auditors' report.
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF PALM DESERT
AND CHANGES IN FUND BALANCES
For the year ended June 30, 2011
- 166 -
OTHER CAPITAL PROJECTS FUNDS
Schedule 13
Parks and Assessment
Recreation District No. 94-3
Facilities Signalization Buildings Library Merano
-$ -$ -$ -$ -$
- - 198,700 - -
121,262 2,319 23,083 - 51
- - - - -
121,262 2,319 221,783 - 51
- - - 307,625 -
10,052 3,863 895,754 - -
- - 204,800 - -
10,052 3,863 1,100,554 307,625 -
111,210 (1,544) (878,771) (307,625) 51
- - 1,000,000 340,000 -
- - (28,210) - -
- - 971,790 340,000 -
111,210 (1,544) 93,019 32,375 51
5,140,585 339,798 3,614,870 510,513 178,846
5,251,795$ 338,254$ 3,707,889$ 542,888$ 178,897$
(Continued)
- 167 -
Silver Spur Highlands CFD
Ranch Undergrounding University
REVENUES:
Licenses and permits -$ -$ -$
Intergovernmental revenues - - -
Investment earnings 4 20 104,603
Miscellaneous - - -
TOTAL REVENUES 4 20 104,603
EXPENDITURES:
Current:
General government - - -
Public works - - 132,225
Capital outlay - - -
TOTAL EXPENDITURES - - 132,225
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4 20 (27,622)
OTHER FINANCING SOURCES (USES):
Transfers in - - 1,556
Transfers out - - (1,556)
TOTAL OTHER FINANCING
SOURCES (USES) - - -
NET CHANGE IN FUND BALANCES 4 20 (27,622)
FUND BALANCES - BEGINNING OF YEAR 578 - 20,754,944
FUND BALANCES - END OF YEAR 582$ 20$ 20,727,322$
See independent auditors' report.
AND CHANGES IN FUND BALANCES
OTHER CAPITAL PROJECTS FUNDS
(CONTINUED)
For the year ended June 30, 2011
CITY OF PALM DESERT
- 168 -
COMBINING STATEMENT OF REVENUES, EXPENDITURES
Schedule 13
Total
Other
Assessment Capital Capital Capital Projects
29 Golf Properties Funds
-$ -$ -$ 38,068$
- - - 548,624
23,590 29,435 - 632,740
- 958,704 21,000 980,053
23,590 988,139 21,000 2,199,485
- 564,711 - 2,215,511
- - 13,737 1,150,125
28,034 - 623 302,469
28,034 564,711 14,360 3,668,105
(4,444) 423,428 6,640 (1,468,620)
- 3,203,473 20,000 5,565,029
- (958,704) - (1,364,470)
- 2,244,769 20,000 4,200,559
(4,444) 2,668,197 26,640 2,731,939
3,781,488 - - 53,806,851
3,777,044$ 2,668,197$ 26,640$ 56,538,790$
- 169 -
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- 171 -
AGENCY FUNDS
Agency Funds are used to account for assets held by the city as an agent for individuals, private
organizations, other governments and/or funds.
Agency Fund - This fund is used to account for deposits placed with the City by developers,
individuals and groups to obtain future services. Deposits are reduced by disbursements and/or refunds
to the depositors when the cost of services is determined.
Treasurers 1911 Bond Act - This fund is used to account for the assets held on behalf of the assessment
district’s property owners until they are remitted to the bondholders.
Retiree Service Stipend Fund - This fund is used to account for assets held to pay for the retiree service
stipend.
Special Assessment Funds - These funds are used to account for the collection of special assessments
and the future payment of debt service related to bonds issued.
Schedule 14
Special
Treasurers Retiree Service Assessment
Agency 1991 Bond Act Stipend Fund Funds Totals
Cash and investments 1,841,078$ 270,664$ 2,824,607$ 9,389,526$ 14,325,875$
Receivables (net of allowance
for uncollectibles):
Accounts - - - 103,567,945 103,567,945
Interest - - - 5,507 5,507
Restricted assets:
Cash with fiscal agent - - - 8,138,796 8,138,796
TOTAL ASSETS 1,841,078$ 270,664$ 2,824,607$ 121,101,774$ 126,038,123$
Deposits 1,841,078$ 270,664$ 2,824,607$ 121,101,774$ 126,038,123$
TOTAL LIABILITIES 1,841,078$ 270,664$ 2,824,607$ 121,101,774$ 126,038,123$
See independent auditors' report.
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
June 30, 2011
CITY OF PALM DESERT
- 172 -
ASSETS
LIABILITIES
Schedule 15
Balance Balance
July 1, June 30,
2010 Additions Deletions 2011
ASSETS:
Cash and investments 2,600,650$ 696,462$ 1,456,034$ 1,841,078$
TOTAL ASSETS 2,600,650 696,462 1,456,034 1,841,078
LIABILITIES:
Deposits 2,600,650$ 696,462$ 1,456,034$ 1,841,078$
TOTAL LIABILITIES 2,600,650 696,462 1,456,034 1,841,078
ASSETS:
Cash and investments 270,664$ -$ -$ 270,664$
TOTAL ASSETS 270,664 - - 270,664
LIABILITIES:
Deposits 270,664$ -$ -$ 270,664$
TOTAL LIABILITIES 270,664 - - 270,664
ASSETS:
Cash and investments 2,928,612$ 664,445$ 768,450$ 2,824,607$
TOTAL ASSETS 2,928,612 664,445 768,450 2,824,607
LIABILITIES:
Deposits 2,928,612$ 664,445$ 768,450$ 2,824,607$
TOTAL LIABILITIES 2,928,612 664,445 768,450 2,824,607
See independent auditors' report (Continued)
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
For the year ended June 30, 2011
CITY OF PALM DESERT
RETIREE SERVICES STIPEND FUN
AGENCY
TREASURERS 1911 BOND ACT
- 173 -
Schedule 15
Balance Balance
July 1, June 30,
2010 Additions Deletions 2011
ASSETS:
Cash and investments 8,603,288$ 9,109,866$ 8,323,628$ 9,389,526$
Receivables (net of allowance for uncollectibles):
Accounts 106,442,541 95,333 2,969,929 103,567,945
Interest 283 5,507 283 5,507
Restricted assets:
Cash with fiscal agen 8,133,655 12,167 7,026 8,138,796
TOTAL ASSETS 123,179,767 9,222,873 11,300,866 121,101,774
LIABILITIES:
Deposits 123,179,767$ 9,222,873$ 11,300,866$ 121,101,774$
TOTAL LIABILTIES 123,179,767 9,222,873 11,300,866 121,101,774
ASSETS:
Cash and investments 14,403,214$ 10,470,773$ 10,548,112$ 14,325,875$
Receivables (net of allowance for uncollectibles):
Accounts 106,442,541 95,333 2,969,929 103,567,945
Interest 283 5,507 283 5,507
Restricted assets:
Cash with fiscal agen 8,133,655 12,167 7,026 8,138,796
TOTAL ASSETS 128,979,693 10,583,780 13,525,350 126,038,123
LIABILITIES:
Deposits 128,979,693$ 10,583,780$ 13,525,350$ 126,038,123$
TOTAL LIABILITIES 128,979,693 10,583,780 13,525,350 126,038,123
See independent auditors' report.
- 174 -
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, 2011
(CONTINUED)
- 175 -
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2011
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 2011 2010 2009 2008 2007
Invested in capital assets, net of related debt 302,757,128 304,702,414 302,507,877 287,536,477 213,685,471
Restricted 147,648,424 143,394,780 159,157,317 161,360,654 173,335,615
Unrestricted 107,314,002 110,918,145 113,883,303 120,089,399 111,386,996
Total Governmental Activities Net Assets 557,719,554 559,015,339 575,548,497 568,986,530 498,408,082
Business-Type Activitie
Invested in capital assets, net of related debt 74,043,419 67,902,786 68,263,719 62,814,656 62,956,911
Restricted - - - - -
176
Unrestricted 4,068,623 4,391,160 4,686,899 5,211,985 5,294,980
Total Business-type Activities Net Asset 78,112,042 72,293,946 72,950,618 68,026,641 68,251,891
Primary Government
Invested in capital assets, net of related debt 376,800,547 372,605,200 370,771,596 350,351,133 276,642,382
Restricted 147,648,424 143,394,780 159,157,317 161,360,654 173,335,615
Unrestricted 111,382,625 115,309,305 118,570,202 125,301,384 116,681,976
Total Primary Government Net Assets 635,831,596 631,309,285 648,499,115 637,013,171 566,659,973
Governmental Activities 2006 2005 2004 2003 2002
Invested in capital assets, net of related debt 166,229,783 147,410,323 141,303,283 143,448,973 44,179,223
Restricted 153,342,045 103,701,569 100,268,597 99,313,317 78,732,876
Unrestricted 108,077,101 96,445,212 79,075,507 80,229,689 88,266,933
Total Governmental Activities Net Asset 427,648,929 347,557,104 320,647,387 322,991,979 211,179,032
Business-Type Activitie
Invested in capital assets, net of related debt 63,233,079 63,588,616 63,857,424 64,269,694 64,085,563
Restricted - - - - -
,, ,, ,, ,, ,,
Total Business-type Activities Net Asset 67,692,919 66,537,526 65,687,628 65,558,182 65,580,289
Primary Government
Invested in capital assets, net of related debt 229,462,862 210,998,939 205,160,707 207,718,667 108,264,786
Restricted 153,342,045 103,701,569 100,268,597 99,313,317 78,732,876
Unrestricted 112,536,941 99,394,122 80,905,711 81,518,177 89,761,659
Total Primary Government Net Asset 495,341,848 414,094,630 386,335,015 388,550,161 276,759,321
(1)The increase for FY 2006 is due to issuance of District Bond, see note #6.
(2)The increase for FY 2007 is due to issuance of District Bond, see note #6.
(3) The increase for FY 2008 is due to Capital Contribution of Hwy 111 & Hwy 74 infastructure totalling $30.19 million from the State of California.
176
City of Palm Desert
Changes in Net Assets
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 17,182,987 16,701,292 17,328,291 21,953,229 11,659,965
Public safety 26,601,668 27,027,643 27,670,237 26,855,060 24,674,424
Housing & Redevelopment (2) 15,976,383 16,220,066 16,760,877 24,095,414 28,296,802
Parks, recreation and culture 7,337,403 7,312,679 7,210,706 8,013,211 4,996,692
Public works 16,984,334 19,900,937 22,036,017 27,245,937 37,091,512
Payments to other agencies (3) 39,418,936 63,320,650 39,085,940 38,993,445 35,719,075
Interest on long term debt 18,989,167 20,069,813 20,128,441 20,706,514 20,097,198
Total Governmental Activites Expenses 142,490,878 170,553,080 150,220,509 167,862,810 162,535,668
Business-Type Activities:
Desert Willow Golf Course 7,946,063 7,832,690 7,804,265 8,167,682 7,989,321
Office Complex - Parkview 861,786 875,394 852,746 649,548 716,592
Total Business-Type Activities 8,807,849 8,708,084 8,657,011 8,817,230 8,705,913
Total primary government expenses 151,298,727 179,261,164 158,877,520 176,680,040 171,241,581
Program Revenues
Governmental Activities
Charges for services
General government 1,921,573 2,127,138 7,574,059 8,454,683 8,225,112
Housing & Redevelopment 4,935,422 4,986,066 - - -
Public safety 9,825,352 9,431,478 9,396,435 8,808,300 9,078,214
Parks, recreation and culture 768,786 618,440 803,218 1,190,725 1,822,685
Public works 762,015 706,374 701,125 762,440 514,838
Operating grants & contributions 5,675,777 6,558,892 5,582,470 5,843,010 7,951,650
Capital grants & contributions (1)2,255,393 2,722,312 5,048,666 42,545,033 57,132,742
Total Governmental Activites Program Revenues 26,144,318 27,150,700 29,105,973 67,604,191 84,725,241
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,338,640 7,054,263 6,872,935 8,182,741 7,830,863
Office Complex - Parkview 1,217,985 988,056 958,942 934,833 915,975
Capital grants & contributions - - - 206,609 278,757
Total Business-type activites program revenue 8,556,625 8,042,319 7,831,877 9,324,183 9,025,595
Total Primary Government program revenue 34,700,943 35,193,019 36,937,850 76,928,374 93,750,836
Net (Expense) / Revenue
Governmental Activites (116,346,560) (143,402,380) (121,114,536) (100,258,619) (77,810,427)
Business-type activites (251,224) (665,765) (825,134) 506,953 319,682
Total Primary Government Net Expens (116,597,784) (144,068,145) (121,939,670) (99,751,666) (77,490,745)
General Revenues & Other Changes in Net Asset
Governmental Activities:
Taxes: (Combined/Net Pass-through) 114,880,586 120,872,421 123,650,887 129,521,410 122,485,939
Investment Earnings 2,158,556 2,916,753 6,161,309 15,309,271 17,521,600
Contributions not restricted for specific purpose 762,588 644,603 613,648 7,240,770 -
Gain(loss) on sales of assets - - - - -
Contributions from other agencies - - - - -
Miscellaneous 3,169,977 2,382,208 2,912,180 6,369,028 10,790,417
Refunding of special assessment debt - - - - -
Transfers In (6,046,761) 53,237 (5,661,521) 1,000,000 -
Total Governmental Activites Net Revenue 114,924,946 126,869,222 127,676,503 159,440,479 150,797,956
Business-Type Activities:
Investment Earnings 22,559 62,330 87,590 267,797 239,290
Transfers Out 6,046,761 (53,237) 5,661,521 (1,000,000) -
Total Business-type activites 6,069,320 9,093 5,749,111 (732,203) 239,290
Total primary government 120,994,266 126,878,315 133,425,614 158,708,276 151,037,246
Change in Net Assets
Governmental Activities: (1,421,614) (16,533,158) 6,561,967 59,181,860 72,987,529
Business-Type Activities: 5,818,096 (656,672) 4,923,977 (225,250) 558,972
Total primary government 4,396,482 (17,189,830) 11,485,944 58,956,610 73,546,501
(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
(2)City has changed the matter it report RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(3) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397.
Expenses 20072008200920102011
177
City of Palm Desert
Changes in Net Assets
Continued
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental Activities:
General government 13,276,549 13,159,370 16,294,744 11,837,157 5,299,883
Public safety 21,856,311 18,743,083 15,420,151 15,601,833 14,547,981
Housing & Redevelopment (2) 21,086,301 13,984,668 12,108,158 9,218,800 15,530,661
Parks, recreation and culture 4,243,119 4,043,034 3,977,447 3,480,264 19,686,164
Public works 13,894,980 10,428,219 13,046,864 23,009,640 3,775,417
Payments to other agencies (3) 36,844,061 30,183,408 24,051,292 22,140,837 17,734,171
Interest on long term debt 12,526,964 12,749,188 14,124,371 14,443,467 15,271,200
Total Governmental Activites Expenses 123,728,285 103,290,970 99,023,027 99,731,998 91,845,477
Business-Type Activities:
Desert Willow Golf Course 6,913,517 6,636,889 6,657,220 6,653,242 6,629,866
Office Complex - Parkview 646,769 609,298 570,135 511,272 534,865
Total Business-Type Activities 7,560,286 7,246,187 7,227,355 7,164,514 7,164,731
Total primary government expenses 131,288,571 110,537,157 106,250,382 106,896,512 99,010,208
Program Revenues
Governmental Activities
Charges for services
General government 8,318,175 7,059,609 6,540,065 6,605,215 6,166,557
Public safety 8,376,981 3,945,395 2,737,585 2,737,571 2,903,623
Parks, recreation and culture 1,994,163 1,442,098 1,048,667 868,255 394,263
Public works 491,179 540,028 511,317 455,676 959,412
Operating grants & contributions 4,930,120 4,800,413 4,632,297 6,249,955 5,568,966
Capital grants & contributions (1)51,780,221 5,166,856 7,134,158 4,325,033 4,434,722
Total Governmental Activites Program Revenues 75,890,839 22,954,399 22,604,089 21,241,705 20,427,543
Business-Type Activities
Charges for Service:
Desert Willow Golf Course 7,442,330 6,814,638 6,237,087 5,824,079 5,753,581
Office Complex - Parkview 864,447 898,884 851,763 843,812 861,405
Capital grants & contributions 295,304 338,478 267,951 414,967 8,195
Total Business-type activites program revenue 8,602,081 8,052,000 7,356,801 7,082,858 6,623,181
Total Primary Government program revenue 84,492,920 31,006,399 29,960,890 28,324,563 27,050,724
Net (Expense) / Revenue
Governmental Activites (47,837,446) (80,336,571) (76,418,938) (78,490,293) (71,417,934)
Business-type activites 1,041,795 805,813 129,446 (81,656) (541,550)
Total Primary Government Net Expens (46,795,651) (79,530,758) (76,289,492) (76,289,492) (71,959,484)
General Revenues & Other Changes in Net Asset
Governmental Activities:
Taxes: (Combined/Net Pass-through) 114,826,387 96,926,134 87,551,146 81,297,385 73,257,210
Investment Earnings 6,197,595 4,240,360 2,985,463 3,366,548 6,388,234
Contributions from fiduciary funds - - - - -
Gain(loss) on sales of assets - 17,459 - (984,837) 204,000
Contributions from other agencies - - - - 262,193
Miscellaneous 7,025,216 6,347,396 1,852,229 3,997,338 4,709,580
Refunding of special assessment debt - - (8,706,206) - -
Transfers In - - - - -
Total Governmental Activites Net Revenue 128,049,198 107,531,349 83,682,632 87,676,434 84,821,217
Business-Type Activities:
Investment Earnings 113,598 43,831 - 11,718 -
Transfers Out - 254 - 47,831 -
Total Business-type activites 113,598 44,085 - 59,549 -
Total primary government 128,162,796 107,575,434 83,682,632 87,735,983 84,821,217
Change in Net Assets
Governmental Activities: 80,211,752 27,194,778 7,263,694 9,186,141 13,403,283
Business-Type Activities: 1,155,393 849,898 129,446 (22,107) (541,550)
Total primary government 81,367,145 28,044,676 7,393,140 9,164,034 12,861,733
(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
(2)City has changed the matter it report RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
2004 2003 2002 Expenses 20052006
178
City of Palm Desert
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund: 2011 2010 2009 2008 2007
Nonspendable (1) 2,939,850 9,676,961 11,629,384 11,897,843 22,199,914
Restricted - - - - -
Committed - - - - -
Assigned 4,501,159 4,044,421 3,654,300 4,406,391 2,998,204
Unassigned 66,776,414 63,847,586 59,066,988 63,515,054 50,916,281
Total General Fund 74,217,423 77,568,968 74,350,672 79,819,288 76,114,399
All other Governmental Funds:
Nonspendable 40,925,918 41,050,481 23,361,744 23,141,729 35,511,735
Restricted 230,623,054 260,163,043 296,323,735 299,960,611 318,529,973
Committed (2) 17,285,733 8,871,910 4,559,739 18,487 9,000
Assigned 19,375,999 16,432,292 23,812,325 26,512,084 27,344,381
Unassigned - - (2,392) - (55,684)
Total all other Governmental Funds 308,210,704 326,517,726 348,055,151 349,632,911 381,339,405
General Fund: 2006 2005 2004 2003 2002
Nonspendable 21,231,046 22,039,893 24,058,272 22,307,089 20,235,387
Restricted - - - - -
Committed - - - - -
Assigned 5,114,813 4,465,521 3,780,547 3,394,895 7,271,236
Unassigned 48,004,509 36,793,370 27,619,600 23,113,284 23,827,558
Total General Fund 74,350,368 63,298,784 55,458,419 48,815,268 51,334,181
All other Governmental Funds:
Nonspendable 29,781,061 25,955,789 24,299,086 24,721,041 23,358,763
Restricted 147,669,565 114,913,358 121,787,414 118,077,654 118,204,877
Committed - - - - -
Assigned 24,509,173 24,098,104 23,685,407 19,280,321 19,553,767
Unassigned - - (1,644) - (7,247,669)
Total all other Governmental Funds 201,959,799 164,967,251 169,770,263 162,079,016 153,869,738
(1) RDA made payment on advances from the city.
(2) Start of new Energy program that loans residents funds for energy efficiency.
179
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Revenues: 2011 2010 2009 2008 2007
Taxes 124,672,062 130,655,949 134,060,681 140,331,466 138,272,454
Special assessments collected (2) 3,262,163 3,182,549 2,759,444 2,060,791 929,348
Licenses & permits 1,089,543 782,271 1,383,778 1,453,177 2,691,486
Intergovernmental revenues 7,605,282 8,700,234 9,543,551 18,996,692 23,499,937
Rental income 5,011,205 5,023,770 5,050,479 4,789,421 4,513,146
Charges for services 701,481 618,440 803,218 1,190,725 1,822,685
Investment Earnings 3,102,649 4,681,243 8,322,808 22,592,392 23,985,001
Fines & forfeitures 310,840 343,054 315,284 254,857 274,365
Miscellaneous (4) 3,095,689 3,374,309 3,479,370 20,164,099 2,847,802
Contributions from property owners (1) - - - - 46,006,292
Total Revenues 148,850,914 157,361,819 165,718,613 211,833,620 244,842,516
Expenditures:
General government 15,273,085 19,294,744 18,950,675 24,776,785 18,231,351
Housing & redevelopment 18,033,576 13,612,720 14,359,340 38,018,819 26,356,634
Pass-through-agreement 39,418,936 63,320,650 39,085,941 38,993,445 35,719,075
Public safety 26,824,434 26,882,787 26,906,123 26,677,743 24,550,431
Parks, recreation & culture 3,845,901 4,534,505 5,122,900 4,572,695 3,921,063
Public works 11,256,499 13,971,797 16,241,963 22,936,721 33,925,623
Capital outlay 14,205,889 6,333,521 22,348,953 52,256,552 85,604,515
Debt service:
Principal retirement 22,914,707 15,250,707 12,778,707 10,767,707 8,209,707
Interest and fiscal charges 18,176,454 19,280,517 19,424,623 23,376,564 25,814,526
Total Expenditures 169,949,481 182,481,948 175,219,225 242,377,031 262,332,925
Excess(deficiency of Revenues
over(under) expenditures
Other financing sources (uses)
Transfers in 69,995,597 59,960,402 68,088,670 59,723,636 249,249,847
Transfers out (70,555,597) (59,520,402) (67,649,434) (58,723,636) (249,249,847)
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
Total Other financing sources (uses)(560,000) 6,801,000 2,454,236 2,531,806 198,893,768
Net Change In Fund Balance (21,658,567) (18,319,129) (7,046,376) (28,011,605) 181,403,359
Revenues: 2006 2005 2004 2003 2002
Taxes 131,303,483 102,020,742 93,948,185 83,762,760 78,631,363
Special assessments collected (2) 269,036 227,848 214,950 5,818,624 6,684,402
Licenses & permits 2,685,415 2,056,554 1,316,669 1,286,262 1,417,012
Intergovernmental revenues 11,095,613 11,064,037 6,067,555 11,488,993 10,581,051
Rental income 4,737,861 4,430,915 4,494,098 4,115,892 4,186,607
Charges for services 1,994,163 1,463,850 1,052,467 873,605 975,841
Investment Earnings 9,351,716 5,654,986 4,241,506 5,035,799 7,671,358
Fines & forfeitures 310,868 323,775 306,630 367,903 305,197
Miscellaneous (4) 2,470,623 3,232,825 2,083,598 2,443,684 1,405,298
Contributions from property owners (1) 42,979,973 - 2,095,969 - -
Total Revenue 207,198,751 130,475,532 115,821,627 115,193,522 111,858,129
Expenditures:
General government 15,111,294 13,886,346 16,803,380 13,111,347 12,234,529
Housing & redevelopment 19,395,693 12,225,779 10,319,152 7,606,422 13,980,337
Pass-through-agreement 36,844,061 30,183,408 24,051,292 22,140,837 17,734,171
Public safety 21,715,373 18,567,736 15,290,696 15,410,711 14,368,399
Parks, recreation & culture 3,304,867 2,889,789 2,638,386 2,656,809 2,580,841
Public works 11,103,943 7,306,791 10,153,096 19,947,848 10,636,350
Capital outlay 35,359,139 22,409,057 18,927,787 36,687,223 17,159,885
Debt service:
Principal retirement 5,607,707 9,788,423 28,372,707 25,975,000 28,360,000
Interest and fiscal charges 14,072,572 13,537,219 16,643,049 17,071,421 17,062,974
Total Expenditures 162,514,649 130,794,548 143,199,545 160,607,618 134,117,486
Excess(deficiency of Revenues
over(under) expenditures
Other financing sources (uses)
Transfers in 50,225,747 48,697,604 68,236,264 87,390,536 60,894,943
Transfers out (50,225,747) (48,697,604) (68,236,264) (90,285,014) (60,894,943)
Bond Premiums - - - - -
Bonds issued/Capital Accreation on bonds(3) - - 48,690,000 50,682,363 37,765,000
Payment refunded bond escrow agent - - (8,706,206) - -
Sale of property (4) 3,360,030 3,356,369 1,728,522 979,533 766,279
Total Other financing sources (uses)3,360,030 3,356,369 41,712,316 48,767,418 38,531,279
Net Change In Fund Balance 48,044,132 3,037,353 14,334,398 3,353,322 16,271,922
(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
(45,414,096)
19.6% 21.1%Debt service as a percentage of noncapital
expenditures
(25,120,129)
18.0% 19.3%
(21,098,567)
26.4%
(17,490,409) (30,543,411) (9,500,612)
(22,259,357)
Debt service as a percentage of noncapital
expenditures 15.5% 21.5% 36.2% 34.7% 38.8%
44,684,102 (319,016) (27,377,918)
180
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
FY
2
0
1
1
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
FY
2
0
0
5
FY
2
0
0
4
FY
2
0
0
3
FY
2
0
0
2
Total Revenues
Combined other (1)
Miscellaneous other (2)
Intergovernmental revenues
Licenses & permits
Taxes & Special Assessments
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
FY
2
0
1
1
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
FY
2
0
0
5
FY
2
0
0
4
FY
2
0
0
3
FY
2
0
0
2
Total Expenditures
Parks, recreation & culture
Pass-through-agreement
Debt Expenditures (3)
Capital outlay
Public works
Public safety
Housing & Redevelopment
General Government
181
City of Palm Desert
Supplemental - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Revenue Type:
Sales Tax 14,680,578$ 13,273,793$ 14,474,933$ 17,195,743$ 17,918,375$
Transient Occupancy Tax 7,421,769 6,848,132 7,030,048 8,605,714 8,627,221
Property Tax (3)8,341,728 8,707,567 8,776,917 9,333,842 8,714,568
Investment Earnings 793,461 1,766,868 2,142,915 4,571,147 4,890,891
Transfer In 2,691,634 4,747,672 2,684,568 1,101,610 1,122,224
Franchises 2,771,594 2,705,902 2,818,729 2,887,727 2,907,062
State Subventions (1) (3)236,211 151,489 173,448 220,785 267,595
Building & Grading Permits 783,031 575,852 950,805 975,296 1,476,290
Reimbursments (4)1,971,505 2,488,378 3,263,247 4,933,807 2,465,685
Business License Tax 1,085,411 1,071,997 1,258,688 1,311,090 1,231,587
Timeshare Mitigation Fee 1,192,490 1,483,220 949,871 881,350 782,739
Plan Check Fees 317,332 224,325 389,770 562,930 617,999
Property Transfer Tax 399,280 455,580 324,817 604,236 671,806
Other Revenues (2)1,475,154 1,567,651 1,601,947 1,900,529 2,436,664
Total General Revenue 44,161,178$ 46,068,426$ 46,840,703$ 55,085,806$ 54,130,706$
FY 2006 2005 2004 2003 2002
Revenue Type:
Sales Tax 17,776,928$ 15,453,148$ 15,138,424$ 13,463,197$ 13,027,395$
Transient Occupancy Tax 8,026,101 7,715,624 7,660,831 6,816,682 7,043,454
Property Tax 8,261,944 4,003,585 3,369,711 3,078,047 2,765,556
Investment Earnings 2,636,050 1,486,830 1,135,952 1,573,165 2,379,764
Transfer In 1,083,589 1,130,231 1,092,475 2,450,600 870,624
Franchises 2,580,917 2,439,134 2,417,856 2,198,663 2,131,820
State Subventions (1)358,954 3,712,256 2,020,583 2,634,949 2,555,811
Building & Grading Permits 1,963,733 1,446,524 970,826 876,372 1,064,097
Reimbursments (4)1,982,846 1,830,295 1,547,862 1,367,303 1,036,133
Business License Tax 1,242,721 1,154,143 955,501 961,675 898,113
Timeshare Mitigation Fee 661,187 526,271 392,988 262,403 158,302
Plan Check Fees 702,857 701,215 459,046 472,356 612,845
Property Transfer Tax 1,030,412 1,099,665 870,415 689,147 497,967
Other Revenues (2)2,606,760 2,019,035 1,144,752 1,845,700 1,116,608
Total General Revenue 50,914,999$ 44,717,956$ 39,177,222$ 38,690,259$ 36,158,489$
(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) Reimbursements is a combination of RDA costs and other reimbursements
182
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
Last Ten Fiscal Years
(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
FY
2
0
1
1
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
FY
2
0
0
5
FY
2
0
0
4
FY
2
0
0
3
FY
2
0
0
2
Combined Other (1)
Interest
Property Tax
Transient Occupancy Tax
Sales Tax
transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants,
incomes, penalties, permits, sales and taxes.
*State Subventions is any combination of trailer coach fees, motor vehicle and off-highway in-lieus, and
subventions from state.
183
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Expenditure:
Public Safety (1)16,047,991$ 15,671,095$ 16,266,052$ 14,413,196$ 13,404,056$
City Administration (2)8,023,314 8,556,627 10,076,543 9,861,106 8,588,341
Public Works Administration 2,380,255 3,021,319 3,720,106 3,329,792 3,014,583
Community Promotions 497,366 990,505 1,798,860 2,532,637 2,402,435
Street Maintenance 2,522,117 2,565,567 2,183,445 2,133,448 1,968,849
Building Safety 1,523,748 1,756,589 2,082,996 3,260,855 3,084,015
Street Resurfacing 2,268,901 708,006 1,115,721 3,342,542 1,192,629
Public Works (4)1,354,255 1,278,983 1,552,242 1,348,012 1,204,079
Other Expenditures (3)12,894,776 8,301,439 13,513,354 11,159,329 17,989,005
Total Expenditures 47,512,723$ 42,850,130$ 52,309,319$ 51,380,917$ 52,847,992$
FY 2006 2005 2004 2003 2002
Expenditure:
Public Safety (1)12,323,448$ 12,135,671$ 11,432,803$ 10,869,991$ 10,732,159$
City Administration (2)8,410,706 7,196,081 5,999,228 6,573,351 6,461,706
Public Works Administration 2,823,359 2,506,688 2,270,854 1,937,184 1,745,513
Community Promotions 1,687,148 1,616,071 1,420,717 1,654,768 2,262,129
Street Maintenance 1,681,583 1,558,970 1,411,018 1,323,955 1,378,064
Building Safety 2,695,889 2,297,814 1,620,160 1,535,427 1,386,988
Street Resurfacing 1,277,554 1,375,409 897,153 2,078,218 608,616
Public Works (4)1,117,417 934,821 676,505 1,007,637 880,295
Other Expenditures (3)7,846,311 7,256,066 6,805,633 14,228,641 7,052,549
Total Expenditures 39,863,415$ 36,877,591$ 32,534,071$ 41,209,172$ 32,508,019$
(1) Public Safety is any combination of animal regulation, police services, and traffic safety expenditures.
(2) City Administration is any combination of community services, auditing, City attorney, City clerk, City council and
City manager, data processing, elections, finance, general services, human resources, insurance, legal special services,
legistlative advocacy, retiree health and unemployment insurance expenditures.
(3) Other Expenditures is any combination of aquisitions, committees, contributions, community
development, marketing, interfund transfers, parks, recreation and culture, 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.
184
City of Palm Desert
Supplemental Graph - Historical General Fund Expenditures
(Including Transfers Out)
Last Ten Fiscal Years
(1) "Combined Other" is any combination of street maintenance, building safety, street resurfacing and public
works. It may also be aquisitions, centers, committees, contributions, community development,
marketing, interfund transfers, parks, recreation and culture, visitor center.
(2) City Administration is any combination of community services, auditing, City attorney, City clerk, City council and
City manager, data processing, elections, finance, general services, human resources, insurance, legal special services,
legistlative advocacy, retiree health and unemployment insurance expenditures.
(3) Other Expenditures is any combination of aquisitions, committees, contributions, community
development, marketing, interfund transfers, parks, recreation and culture, and visitor center.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
FY
2
0
1
1
FY
2
0
1
0
FY
2
0
0
9
FY
2
0
0
8
FY
2
0
0
7
FY
2
0
0
6
FY
2
0
0
5
FY
2
0
0
4
FY
2
0
0
3
FY
2
0
0
2
Combined Other (1)
Community Promotions
Public Works Administratio
City Administration (2)
Public Safety (3)
(4) , , , ,
equipment, building maintenance, Portola Community center, storm water permit.
185
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186
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Total General Revenue (2)41,469,544$ 41,320,754$ 44,156,135$ 53,984,196$ 53,008,482$
Population (1)49,111 52,067 51,509 50,907 49,752
General Revenue Per Capita 844$ 794$ 857$ 1,060$ 1,065$
FY 2006 2005 2004 2003 2002
Total General Revenue (2)49,831,410$ 43,587,725$ 38,084,747$ 36,239,659$ 35,287,865$
Population (1)49,539 49,280 44,812 43,917 42,863
General Revenue Per Capita 1,006$ 884$ 850$ 825$ 823$
FY 2011 2010 2009 2008 2007
Total General Expenditures (2)41,833,291$ 42,499,812$ 48,696,321$ 49,238,257$ 43,565,108$
Population (1)49,111 52,067 51,509 50,907 49,752
General Expenditures Per
Capita 852$ 816$ 945$ 967$ 876$
FY 2006 2005 2004 2003 2002
Total General Expenditures (2)38,488,367$ 35,426,268$ 31,674,743$ 34,935,591$ 30,941,156$
Population (1)49,539 49,280 44,812 43,917 42,863
General Expenditures Per
Capita 777$ 719$ 707$ 795$ 722$
(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
187
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)
2011 8,982,403,643 2,179,940,065 52,528,676 564,683,270 288,907,720 13,132,169,069 1.00000 12,707,884,566
2010 9,210,638,643 2,419,511,046 54,988,887 426,163,878 (274,944,437) 13,747,221,855 1.00000 13,334,233,975
2009 9,376,213,348 2,130,957,579 127,857,455 667,700,041 (255,714,909) 14,206,383,860 1.00000 13,808,181,235
2008 9,160,443,514 1,929,224,481 134,910,803 688,045,095 (242,839,445) 13,491,080,286 1.00000 13,114,105,220
2007 8,931,447,910 1,684,439,737 143,634,396 639,825,947 (248,095,775) 13,057,672,383 1.00000 11,853,797,089
2006 7,913,843,803 1,368,116,067 165,117,456 483,558,265 (247,676,185) 11,794,104,029 1.00000 10,503,193,237
2005 6,775,427,147 1,084,068,343 135,508,543 385,678,161 (239,745,884) 10,423,734,072 1.00000 9,281,846,679
2004 6,061,076,589 1,306,579,384 108,881,615 372,012,186 (199,616,295) 9,073,467,947 1.00000 8,704,132,380
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
(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
188
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Last Ten Fiscal Years
Historical Major Additions
Annexations FY Retail Centers FY
Cook Street Area 88/89 Town Center Mall 83/84
Country Club #28 93/94 Desert Springs Marriott 86/87
Price Club/Costco 93/94 One Eleven Town Ctr 88/89
Palm Desert CC #29 94/95 Mervyn's Center 92/93
Palm Desert Greens 04/05 Desert Crossing 95/96
Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97
Remodel 111 Town Ctr (Best Buy) 97/98
Gardens on El Paseo 98/99
Remodel Westfield Mall (Sears, Barnes & Nobl 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
10.80% 10.64%7.90%
6.64%
11.63%12.86%10.63%
5.29%3.43%4.70%
1.00%
6.00%
11.00%
16.00%
21.00%
26.00%
31.00%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Percent Increase in Assessed Valuation
FY 2002 to FY 2011
$-
$5,000
$10,000
$15,000
$20,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Value in Millions
Net Assessed Valuation - Historical Comparison
FY 2002 to FY 2011
189
City of Palm Desert
Supplemental FY 2011 and 2010 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency FY 2011 Rate FY 2010 Rate
County General 28.177327% 28.177327%
County Free Library 2.728242% 2.728242%
County Structure Fire Protection 5.873086% 5.873086%
City of Palm Desert (1) 0.000000% 0.000000%
Desert Sands Unified School District 36.221587% 36.221587%
Desert Community College 7.526714% 7.526714%
Riverside County Reg. Park & Open Space 0.426231% 0.426231%
Riverside County Office of Education 4.094919% 4.094919%
Desert Hospital 1.996808% 1.996808%
Coachella Valley Public Cemetary 0.339927% 0.339927%
Coachella Valley Recreation & Park 2.071624% 2.071624%
Coachella Valley Mosquito & Vector Control 1.369698% 1.369698%
Coachella Valley County Water 2.736607% 2.736607%
Coachella Valley County Water Imp. District 80 2.972906% 2.972906%
Coachella Valley County Water Storm Water Unit 3.464324% 3.464324%
General Purpose Basic 1% 100.000000% 100.000000%
(1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low Property Tax
Cities.
Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041.
190
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
2011 1.00000 1.00000 0.10036 0.01995 0.08000 0.00000
2010 1.00000 1.00000 0.08112 0.01995 0.06000 0.00000
2009 1.00000 1.00000 0.07990 0.01995 0.04000 0.00000
2008 1.00000 1.00000 0.07561 0.01995 0.04000 0.00230
2007 1.00000 1.00000 0.07613 0.01995 0.02080 0.01560
2006 1.00000 1.00000 0.07674 0.01995 0.02080 0.02520
2005 1.00000 1.00000 0.09581 0.01994 0.02080 0.02690
2004 1.00000 1.00000 0.09750 0.00000 0.02080 0.02870
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
Notes:Proposition 13 limits the ability of the city to raise the property tax rate.
Source: CalMuni Statistics Inc
City Direct Overlapping Rates
191
City of Palm Desert
Principal Property Taxpayers
Current Year and Ten Years Ago
2011 2002
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 164,824,823$ 1.29% Marriott Desert Springs $185,133,521 2.56%
WEA Palm Desert 138,093,212 1.08% WEA Palm Desert 78,260,549 1.08%
Pru of Desert Crossing II
LLC 88,684,713 0.70%Property California
SCJLW One Corp.55,744,979 0.77%
Gardens SPE II 78,571,131 0.62% El Paseo Prop. L.P. 50,782,961 0.70%
Palm Desert Funding Co. 60,970,223 0.48%Marriott Ownership
Resorts 31,352,352 0.43%
Elisabeth E. Stewart 58,380,362 0.46%CNL Hospitality Partners
L.P/27,999,000 0.39%
Time Warner
Entertainment 55,409,220 0.43% J H Palm Desert 26,280,906 0.36%
Lomas de Arena 51,502,791 0.40%National Golf Operatiing
LP 26,098,029 0.36%
WVC Rancho Mirage 48,644,917 0.38% Felcor Suites L.P. 26,027,660 0.36%
Monarch Sevilla Venture 47,835,778 0.38% Big Horn Development 22,043,694 0.31%
Total 792,917,170$ 6.22%Total 529,723,651$ 7.32%
Note:The estimated property tax revenue stated above is based upon net taxable values, tax ratios and base year values that impact the revenue
calculation. As a result, parcels with the same assessed value that are assigned to different tax rate areas may contribute dissimilar amounts
of total revenue to the City and Redevelopment Agency.
Source: HdL Coren & Cone thru Riverside County Assessor 10/11 and City of Palm Desert CAFR 01/02
192
City of Palm Desert
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
ear Taxes Levied Collections
Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years (4)Amount (4)of Levy
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%
2011 5,312,856 4,560,417 87.24% 216,378 4,776,795$ 89.91%
(1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was
received in the fiscal year 1993/94.
(2) City of Palm Desert is a "No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973
which is when the City of Palm Desert Incorporated and the Property Tax rates were zero.
Based on current state law the County allocates 7% of the 1% assessed values within the City less the
Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes.
(3) Fiscal Year 1996/97 final total collected includes adjustments for No-Low property
tax collections from prior years modified by the County of Riverside. The County adjusted the payment to
the City of Palm Desert (FY 1995/96) for the annexation of Palm Desert Country Club.
(4) Inlcludes tax collections accrued as of June 30, 2011.
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
193
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
APPLE STORES SPECIALTY STORES
ARCO AM/PM MINI 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
J.C.PENNY COMPANY INC DEPARTMENT STORES
KOHLS DEPARTMENT STORES DEPARTMENT STORES
LOWE'S HOME IMPROVEMENT BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES DEPARTMENT STORES
MARSHALLS OF CA APPAREL STORES
MOBIL SERVICE STATION SERVICE STATIONS
PETE CARLSONS GOLF & TENNIS SPORTING GOODS
RALPH'S GROCERY SUPERMARKETS
SAKS FIFTH AVENUE DEPARTMENT STORES
SAM'S CLUB DEPARTMENT STORES
SEARS-ROEBUCK AND CO DEPARTMENT STORES
STONELEDGE FURNITURE HOME FURNISHINGS
SUPERIOR POOL PRODUCTS SPECIAL MATLS-WHSLE
TARGET STORE DEPARTMENT STORES
TOMMY BAHAMA APPAREL STORES
USA SERVICE STATIONS SERVICE STATIONS
WAL-MART SUPERCENTER DEPARTMENT STORES
WEST COAST TURF BLDG.MATLS-WHSLE
(1) Listed in Alphabetical Order
Note : Current California law prohibits production of individual tax information as an effort not to infringe on proprietary
information, therefore confidential information which is protected by law is not disclosed.
* The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged.
Source: SBOE Data, MuniServices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert
$7.0
$9.0
$11.0
$13.0
$15.0
$17.0
$19.0
$21.0
20
0
2
20
0
3
20
0
4
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
Millions
Sales and Use Tax Trends FY 2002 - 2011
0.8%-4.0%
-15.8%
-8.3%
Amounts
2.1%
15.0%
13.027 13.463 15.138 15.453 17.776 17.918 17.195 14.474 13.273 14.680
-4.5%
10.6%
3.2%
11.1%
-In Lieu *
194
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Apparel Stores 168,235$ 134,186$ 142,488$ 159,207$ 155,859$ 141,510$ 132,831$ 108,829$ 97,924$ 93,792$
General Merchandise 321,023 304,396 326,673 388,583 392,738 362,512 340,277 307,186 278,583 272,856
Food Markets 46,890 40,573 44,880 49,398 53,870 50,556 47,455 52,461 51,738 52,282
Restaurants 152,043 137,475 145,907 181,731 184,954 178,248 167,315 152,508 148,228 155,911
Furniture/Appliance 97,171 97,415 106,166 135,775 161,997 166,109 155,921 135,694 128,623 125,130
195
Bldg.Matls-Wholesale 73,023 58,241 86,564 95,633 69,773 73,228 68,737 56,180 54,111 64,251
Automotive 15,094 11,314 10,301 8,596 6,121 6,245 5,862 8,211 6,904 8,825
Service Stations 60,764 66,416 64,912 63,969 59,401 48,564 45,585 39,146 23,930 22,633
Other Retail 141,408 185,722 218,005 282,973 295,830 281,388 264,129 243,474 228,286 220,252
Non-Retail (1)182,227 185,655 182,223 219,411 222,177 218,591 205,184 193,041 190,058 195,137
Amounts in millions
Totals 1,257,878$ 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$
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
195
City of Palm Desert
Supplemental Prinicipal Sales Tax Remitters
Current and Ten Calendar Years Ago
Tax Amount Percentage Tax Amount Percentage
General Merchandise 321,023$ 25.52% 201,123$ 20.40%
Other Retail 141,408 11.24% 188,973 19.17%
Non-Retail (1) 182,227 14.49% 154,980 15.72%
Restaurants 152,043 12.09% 143,628 14.57%
Apparel Stores 168,235 13.37% 83,955 8.52%
Furniture/Appliance 97,171 7.72% 104,856 10.64%
Service Stations 60,764 4.83% 19,917 2.02%
Bldg.Matls-Wholesale 73,023 5.81% 34,899 3.54%
Food Markets 46,890 3.73% 46,998 4.77%
Automotive 15,094 1.20% 6,495 0.66%
Amounts in millions
Totals 1,257,878$ 985,824$
(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
2010 2001Industry
196
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
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,f 388,972,156 117,165,000 245,414 328,273 506,710,843 20.46% 9,732
2011 368,261,367 113,713,000 122,707 1,035,721 483,132,795 24.17% 9,838
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, 2011 the balance was $1.658M.
- Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million to fund the
Energy Independence Loan Program. The actual Bond Issuance was for $2.015M. At June 30,2011 the outstanding balance was $1.781M.
e - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011. At June 30, 2011 the outstanding balance was $1.009M.
f - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variiable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment is due September 2, 2010.
Governmental Activities
197 197
City of Palm Desert
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of Actual
Fiscal Redevelopment Special Assessment Taxable Value of Per
Year Bonds Bonds c Property a Capita b
2002 207,990,000 2.880% 4,852$
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% 8,534$
2008 412,694,700 2,748,000 3.170% 8,350$
2009 401,601,475 4,717,000 2.940% 8,167$
2010 388,972,155 10,095,000 d 2.900% 8,021$
2011 368,261,367 9,543,000 d 3.120% 7,693$
Notes: eta s regar ng t e c ty s outstan ng e t can e oun n t e notes to t e nanc a 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, 2011 is the sum of the combined ending balances of the Special Assessment Debt with
government commitment ($1.658 M),limited obligation improvement bonds ($2.79M), and lease revenue bonds ($5.095M).
See the financial statement note 6.
General Bonded Debt Outstanding
198
City of Palm Desert
Supplemental Special Assesment Information
June 30, 2011
District Name\Description 2003 01-01 Revenue
Bonds 94-2 Sunterrace
2003 01-01
Revenue Bonds 94-
3 Merano
2003 01-01
Revenue Bonds Silver
Spur Ranch
Utility Undergrounding
2004 R-Bonds
98-1
Canyons @ Bighorn
Community Facilities
District No. 2005-1
(University Park) Special
Tax Bonds Series 2006A
Bond Issue Date 06/25/03 06/25/03 06/25/03 02/19/04 05/09/06
Final Maturity Date 09/02/14 09/02/20 09/02/28 09/02/18 09/01/37
Highest Interest Rate 4.80% 5.25% 5.375% 5.100% 5.424%
Bond Issue Amount 930,000 1,153,000 2,340,000 2,955,000 67,915,000
Matured Principal 500,000 428,000 450,000 1,155,000 4,460,000
Called Principal 155,000 - 140,000 1,235,000 -
Outstanding Bonds (4)275,000 725,000 1,750,000 565,000 63,455,000
Redemption Premium 3.00% 3.00% 3.00% 3.00% 3.00%
Original Parcels 71 201 250 73 37
Active Parcels 64 121 195 19 68
Reserve Requirement (5)22,500$ 72,500$ 161,675$ 55,500$ 4,574,685$
Reserve Balance 09/10 (1)85,505$ 80,654$ 166,153$ 142,152$ 4,610,340$
Principal Due 10/11 (2)75,000 65,000 70,000 65,000 1,310,000
Principal Levied 10/11 (3)85,634 65,000 71,172 75,555 1,310,000
Interest Due 10/11 (2)8,818 34,618 89,115 24,974 3,264,627
Interest Levied 10/11 (3)12,417 36,080 91,962 28,541 3,293,593
09/10 Delinquency Rate 5.65% 2.26% 2.11% 0.00% 1.01%
Arbitrage Installment Computation Date:
90% Rebate Due 09/02/14 09/02/14 12/17/13 12/16/13 05/08/16
Arbitrage Yield Rate 7.9769% 6.672% 5.1577% 5.8386% 5.3599%
Arbitrage-Amount Owed - - - - -
Continuing Disclosure Last Report
Issued:12/15/2010 12/15/2010 12/15/2010 12/15/2010 12/15/2010
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
Obli ation Im rovement
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 1,575,000 194,000 4,305,000 167,000 65,000
Called Principal - 1,346,000 - 154,000 106,000
Outstanding Bonds (4)27,855,000 1,625,000 6,630,000 1,694,000 965,000
Redemption Premium 3.00% 3.00% 3.00% 3.00% 3.00%
Original Parcels 167 172 1,154 61 45
Active Parcels 564 132 1,061 58 40
Reserve Requirement (5)1,933,175$ NA 1,036,535$ NA NA
Reserve Balance 09/10 (1)1,945,358$ NA 1,093,214$ NA NA
Principal Due 10/11 (2)570,000 35,000 935,000 92,000 46,000
Principal Levied 10/11 (3)570,000 31,948 935,000 92,000 46,000
Interest Due 10/11 (2)1,363,175 81,326 217,812 49,440 28,260
Interest Levied 10/11 (3)1,374,860 75,581 232,773 49,440 28,260
09/10 Delinquency Rate 0.18% 1.73% 1.23% 3.24% 3.24%
Arbitrage Installment Computation Date:
90% Rebate Due 03/29/12 08/08/16 08/08/16 NA NA
Arbitrage Yield Rate 5.0134% 5.0691% 3.8681% NA NA
Arbitrage-Amount Owed - - - - -
Continuing Disclosure Last Report
Issued:12/15/2010 NA 12/15/2010 NA NA
(1) Reserve Balances are as of 9/30/11, shortfall will be recovered by additional levy, and interest earnings.
(2) Amount represents principal and interest to be collected on the FY 11/12 tax roll for Debt Service Payment due in FY 12/13.
(3) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments.
(4) Represents Outstanding Bonds after September 2, 2011 principal payment.
(5) Reserve Requirement as of 9/2/11
Source: Wildan Financial Annual Report
199
City of Palm Desert
Direct and Overlapping Government Acitivities Debt
June 30, 2011
2010/11 Assessed Valuation: 12,713,752,589$
Redevelopment Incremental Valuation: 8,008,613,837
Adjusted Assessed Valuation: 4,705,138,752$
City's Share of
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT:Total Debt 6/30/11 % Applicable (1) Debt 6/30/11
Desert Community College District 322,389,659$ 14.518% 46,804,531$
Desert Sands Unified School District 260,875,460 28.706% 74,886,910
Desert Sands Unified School District Lease Tax Obligations - 0.000% -
Palm Springs Unified School District 338,021,439 3.493% 11,807,089
Coachella Valley County Water District, ID No. 54 2,335,000 66.212% 1,546,050
Coachella Valley County Water District, ID No. 55 3,270,000 4.208% 137,602
Coachella Valley County Water District, ID No. 58 1,540,000 37.747% 565,904
City of Palm Desert - 0.000% -
City of Palm Desert 1915 Act Bonds 33,657,000 100.000% 33,657,000
City of Palm Desert Community Facilities District No. 91-1 7,535,000 100.000% 7,535,000
City of Palm Desert Community Facilities District No. 2005-1 64,715,000 100.000% 64,715,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 241,655,086$
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Riverside County General Fund Obligations 696,634,853$ 3.217% 22,410,743$
Riverside County Pensions Obligations 366,945,000 3.217% 11,804,621
Riverside County Board of Education Certificate of Participation 6,170,000 3.217% 198,489
Desert Sands Unified School District Certificates of Participation 62,005,000 28.706% 17,799,155
City of Palm Desert General Fund Obligation 5,095,000 100.000% 5,095,000
Coachella Valley Recreation and Park District Certificates of Participation 2,340,000 23.633% 553,012
Coachella Valley County Water District, ID No. 71 Certificate of Participation 2,750,000 20.556% 565,290
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT 58,426,310$
Less: Riverside County Self-Supporting Obligations 444,048
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT 57,982,262$
TOTAL DIRECT DEBT 5,095,000$
TOTAL GROSS OVERLAPPING DEBT 294,986,396$
TOTAL NET OVERLAPPING DEBT 294,542,348$
GROSS COMBINED TOTAL DEBT 300,081,396 (2)
NET COMBINED TOTAL DEBT 299,637,348
(1) Percentage of overlapping agency'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
capital lease obligations
Ratios to Adjusted Assessed Valuation:
Total Direct Debt ($5,095,000) 0.11%
Gross Combined Total Debt 6.38%
Net Combined Total Debt 6.37%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/10 -
Source: California Municipal Statistics, Inc., San Francisco
200
City of Palm Desert
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed Value 13,132,169,069$
Debt Limit (15% of Assessed Value) (1) 1,969,825,360
Debt Applicable to Limit:
General Obligation Bonds 1,658,000
Less: Amount set aside for
repayment of general obligation
debt -
Total Debt Applicable to Limit 1,658,000
Legal debt margin 1,968,167,36$
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Debt Limit 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 1,969,825,360
Total Net debt applicable to limit - - - - - 2,783,00 2,748,00 2,702,00 1,719,00 1,658,00
Legal debt margin 1,084,078,03 1,200,179,53 1,306,436,75 1,397,304,48 1,582,592,57 1,780,789,97 1,968,660,15 2,073,470,69 1,998,012,41 1,968,167,36
Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0% 0.16% 0.14% 0.13% 0.09% 0.08%
(1) Section 43605 of the California Government Code.
Source: California Municipal Statistic, Inc. San Francisco
FISCAL YEAR
Legal Debt Margin Calculation for Fiscal Year 2011
201
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
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
2011 9,695,868 3,452,000 5,595,543 1.0717 39,400,572 22,240,000 18,767,205 0.961
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 $5.225 million dollars of the Energy Independence Program Variiable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment is due September 2, 2010.
Tax Increment b
Debt ServiceDebt Service
Special Assessment Bonds
202
Last Ten Calendar Years
Calenda Percentag Per Capit Cit Riversid Percentag Count
Yea Cit Increas Personal Persona Unemploymen Count Increas Unemploymen
End Populatio (Decrease Income CY a b Income C Rate c Populatio (Decrease Rate c
2011 49,111 -5.7% 2,550,849,065$ 51,940$ 8.67% 2,217,778 3.66% 14.44%
2010 52,067 1.1% 2,513,151,788$ 48,268 8.8% 2,139,535 1.51% 14.65%
2009 51,509 1.2% 2,476,011,613 48,069 6.8% 2,107,653 0.93% 11.46%
2008 50,907 2.3% 2,439,420,309 47,919 4.1% 2,088,322 6.91% 8.6%
2007 49,752 0.4% 2,132,710,348 42,867 3.6% 2,031,625 4.01% 6.0%
2006 49,539 0.5% 2,097,434,084 42,339 2.9% 1,953,330 4.07% 5.0%
2005 49,280 10.0% 2,066,437,521 41,933 3.1% 1,877,000 5.64% 5.4%
2004 44,812 2.0% 1,772,405,266 39,552 3.5% 1,776,743 5.00% 6.0%
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%
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 10/11 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
203
City of Palm Desert
Principal Employers
Current and Ten Years Ago
Employer Employees Rank
Percentage of
Total City
Employment
Employer Employees Rank
Percentage of
Total City
Employment
JW Marriot-Desert Springs
Resort & DS Villas 2,304 1 7.00%
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%
Westin-Desert Willow 280 6 0.85%
Bighorn Golf Club 250 7 0.76%
Time Warner Cable 236 8 0.72%
Indian Ridge Country Club 200 9 0.61%
Marriott Shadow Ridge 200 10 0.61%
Totals 6,895 21% Totals - 0%
(1) The information for 2002 is not available
(2) As of June 30, 2011
Sources: City of Palm Desert thru InfoUSA.com - Federal and State Government not included
2011 2 2002 1
204
City of Palm Desert
Supplemental Miscellaneous Statistics
1-Jun June 30, 2011
City/ Municipal Government
Form of Gorvernment: Council - City Manager/Charter City
Date of Incorporation: November 26, 1973
Number of Employees 129 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 7,406 active business licenses
Number of Hotels & Rooms 15 hotels, 2,202 rooms
CONTRACT SERVICES:
Police Department Contract with Riverside County Sheriff - 74 positions plus 24 support staff
Fire Department Contract with Riverside County/State Fire 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
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
205
City of Palm Desert
Full-time Equivalent City Government Employee's by Function / Program
Last Ten Fiscal Years
Function / Program 2011* 2010 * 2009 2008 2007 2006 2005 2004 2003 2002
General Government
City 31 31 49 49 51 53 52 51 51 48
Redevelopment Agency 24 25 19 19 19 19 19 18 18 15
Public Safety 25 26 35 35 35 28 28 28 32 30
Police & Fire (1) 155 151 148 146 143 129 123 123 126 126
Public Works 47 49 53 52 44 49 39 39 39 36
Parks, recreation & culture 2 2 14 14 18 11 16 16 16 16
Totals 284 284 318 315 310 289 277 275 282 271
(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, Cal-Fire, animal control, health services,
legal services and landscape maintenance.
* As of June 2011 realignments were made due to budget cuts, retirements and layoffs.
Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriffs Department
206
City of Palm Desert
Operating Indicators by Function / Program
Last Six Fiscal Years
Function / Program 2011 2010 2009 2008 2007 2006
General Government
Business License Inspections 515 473 617 489 447 420
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons)53,108 51,483 58,198 67,940 73,467 71,820
Recyclables Collected 22,867 20,591 22,155 23,798 24,089 24,359
Public Safety
Physical Arrests 1,134 1,342 1,446 1,550 1,430 543
Parking Violations 332 933 1,278 770 694 1,374
Traffic Violations 8,360 10,200 9,162 5,929 6,875 4,527
Emergency Responses-Fire Department 7,720 7,772 7,149 6,908 6,785 6,600
Fires Extinguished 107 104 119 154 241 928
Fire Inspections 4,651 4,825 8,248 4,267 5,934 1,845
Building Permits Issued 3,711 3,230 3,637 4,012 5,813 5,683
Building Inspections Conducted 14,069 14,080 18,040 26,401 33,215 29,925
Public Works
Street Resurfacing (miles)5 8 13 17 9 11
Parks, recreation & culture
Athletic Field Permits Issued 6,050 6,281 6,149 5,949 4,510 2,967
Amphitheater / Pavilions Permits Issued 286 226 133 133 84 81
Community Center Admissions 30,298 59,986 55,954 112,540 97,339 92,083
Aquatic Center Admissions (2)4,329
(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services,
207
ega serv ces an an scape ma ntenance.
(2) Aquatic Center operations began in June 2011, managed by the YMCA.
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 and The YMCA.
207
City of Palm Desert
Capital Asset Statistics by Function / Program
Last Six Fiscal Years
Function / Program 2011 2010 2009 2008 2007 2006
General Government
Contracted Services (1)
Collection trucks 51 51 54 69 61 71
Public Safety - Police & Fire
Police Stations 1 1 1 1 1 1
Police Sub Stations 0 2 2 2 2 2
Patrol Units-Cars 31 26 30 29 29 28
Patrol Units-Motorcycles 10 10 10 7 5 4
Fire Stations 3 3 3 3 3 3
208
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 3 plus 1 Breathing Support
Fire Prevention Pick-ups 3 3 3 3 3 3
Public Works
Streets (miles)159 159 159 159 154.11 154.11
Traffic Signals 97 99 99 99 87 85
Parks, recreation & culture
Acreage 201 201 212 200 200 200
Total Parks 13 13 14 13 13 11
Playgrounds 16 16 16 9 8 7
Baseball/softball diamonds 8 8 9 11 11 8
Soccer/football fields 9 9 9 7 7 5
Basketball Courts 11 11 11 9 9 6
Tennis ourts
Volleyball Courts 8 8 8 10 10 6
Community Centers 2 2 2 2 2 2
Skateboard Parks 2 2 2 2 2 1
Aquatic Center (2)1
Commercial Office Space
(Parkview Office Complex)
Leaseable Space (square feet)50,322 50,322 50,322 50,322 50,322 50,322
Occupancy Rate 90% 97% 98% 100% 100% 100%
Number of Tenants by Type
Government (State, local regional)10 10 11 11 10 9
Non-Profit 7 7 5 7 6 6
Private 4 6 7 6 8 8
Square Footage lease by tenant
Government (State, local regional)32,696 34,617 34,617 34,402 33,298 32,457
Non-Profit 5,663 4,735 4,735 6,188 5,708 5,708
Private 7,350 10,212 10,212 9,732 11,316 10,836
Vacant 4,613 758 758 0 0 1,321
Municipal Golf Course
(Desert Willow Golf Resort)
Courses - Fire Cliff and Mountain View 2 2 2 2 2 2
Holes 36 36 36 36 36 36
Golf Carts 172 160 160 160 160 160
Clubhouse square footage 39,000 33,000 33,000 33,000 33,000 33,000
Rounds per Course
Fire Cliff 44,745 45,988 46,041 46,688 47,263 46,602
Mountain View 39,178 37,146 34,899 43,898 41,182 43,725
Total Annual Rounds 83,923 83,134 80,940 90,586 88,445 90,327
(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services,
legal services and landscape maintenance.
(2) Aquatic Center operations began in June 2011
Note:Note: e ty o a m esert c ose to mp ement t s sc e u e retroact ve y.
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
208
Note: This section is not required by GASB No. 44, however, City believes that statistical
information is beneficial to the reader.
Supplemental Redevelopment Agency Statistical Section
City of Palm Desert, California
209
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211
INSERT RDA MAP AS PAGE 211
City of Palm Desert
RDA Project Area #1 and 1982 Annex
FY 2011 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed Value
$
Cumulative %
(1) Business Description
WEA Palm Desert (8) 138,407,331$ 20.4%800,000 sq. ft. Retail Shopping Mall Westfield
Shopping Town
Pru of Desert Crossing II LLC(12) 88,631,723$ 13.1% Major Commercial / Retail Buildings
Elisabeth Stewart-Marrakesh CC (292) 81,088,292$ 12.0% Golf Course / Country Club
Gardens SPE II (1) 78,600,276$ 11.6%Garden's at El Paseo up-scale retail shopping
Center.
Harsch Investment Realty LLC(11) 29,860,631$ 4.4%Mix Commercial Buildings One-Eleven Town
Center Shopping Center
Macys Calif (3) 29,528,661$ 4.4% Retail Store in Westfield Mall (Macy's)
Bighorn Development (60) 28,128,520$ 4.2% Recreational / Residential Land Developer
Colonnade on El Paseo (2) 20,329,357$ 3.0% El Paseo Village up-scale retail shopping Center.
ARV Aassisted Living Inc (3) 19,610,777$ 2.9% Assissted Living Center
26 Del Sur Palms LLC (3) 18,111,944$ 2.7%Commercial Center Palms to Pines
Ralphs/Washington Mutual
Sears Roebuck & Company (1) 16,981,098$ 2.5% Westfield Mall (SearsParking Structure)
El Paseo Collection (4) 16,581,024$ 2.4%Commercial Shopping Center Trader
Joe's/Michaels
Edward Fritzky (3) 15,286,965$ 2.3% 2 Single Family Residences/Land @ Bighorn C.C.
Target Stores (1) 13,070,301$ 1.9% Commercial, Department Store
One El Paseo West (6) 12,361,389$ 1.8% Commercial Buildings / Development
McKenzie Prop Dev (4) 12,233,804$ 1.8% Vacant Residential Land
Libri Partners LTD (2) 12,153,722$ 1.8% 2 Single Family Residences Indian Ridge C.C.
Palm Dundee One (1) 12,069,096$ 1.8% Commercial Shopping Center
Hubbard R D (5) 11,938,929$ 1.8% Vacant Residential Land Bighorn C.C.
Bosley L Lee (1) 11,380,770$ 1.7% Single Family Residence @ Bighorn C.C.
Town Center Plaza (1) 11,298,615$ 1.7% Commercial Buildings
Total Net Assessed Value 677,653,225$ 100%
(1) Cumulative represents only the top twenty properties.
Source: Muniservices LLC and Riverside County Assessor 2010/2011 Combined Tax Rolls & City of Palm Desert Redevelopment Agency
212
City of Palm Desert
RDA Project Area #2
FY 2011 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed Value
$
Cumulative %
(1) Business Description
Desert Springs Hotel (10) 164,824,823$ 32.2% Marriott Desert Springs Resort 895 room Hotel
Palm Desert Funding (10) 60,970,223$ 11.9% Vacant Agricultural Land
WVC Rancho Mirage Inc (86) 48,644,917$ 9.5% Residential Timeshares Use
Marriott Ownership Resorts Inc (40) 45,170,094$ 8.8% Time Share Condos/Villas (Shadow Ridge & Desert
Springs Villas)
Lakha Prop Palm Desert (9) 23,472,500$ 4.6% Commercial, Food Store, Retail
Palm Desert North 80 (3) 20,872,317$ 4.1% Vacant Commercial Land
RST4 Tenant, Lessee (1) 17,400,000$ 3.4% 151 Room and 130 Room Hotels
University Plaza Corp (5) 15,740,089$ 3.1% Commercial Buildings
City National Bank (65) 15,227,273$ 3.0% Residential Condos/Timeshares-Desert Willow
SGH Partners (1) 12,694,423$ 2.5% General Office Buildings
Mathew V Johnson (7) 11,352,692$ 2.2% Vacant Commercial Land
Palm Desert University Village (2) 10,875,184$ 2.1% Commercial Buildings - University Village
Palm Desert Hospitality (1) 10,770,762$ 2.1% 129 Suite Hotel
HCR ManorCare Prop (1) 9,440,158$ 1.8% Assissted Living Center
Resort Ventures (14) 9,230,639$ 1.8% Residential / Timeshares
Cook Ford (1) 8,752,897$ 1.7% Office Buildings
Shaw Palm Desert 1 (21) 7,433,412$ 1.5% Commercial Shopping Centers
RJT Homes Catavina (2) 7,137,903$ 1.4% Vacant Commercial Land
Dutt Hospitality Group (24) 6,204,310$ 1.2% 88 Room Hotel
Desert Falls Country Club Inc (6) 6,051,830$ 1.2% Private Golf Course & Homes
Total Net Assessed Value 512,266,446$ 100%
(1) Cumulative represents only the top twenty properties.
Source: Muniservices LLC and Riverside County Assessor 2010/2011 Combined Tax Rolls & City of Palm Desert Redevelopment Agency
213
City of Palm Desert
RDA Project Area #3
FY 2011 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $
Cumulative %
(1) Business Description
Capri W. Canterra (1) 40,084,738$ 20.1% Multi Family Dwelling (Canterra Apts & Vacant land)
Sunrise IV Carlotta SL (1) 28,875,668$ 14.5%Senior Citizens Assisted Living Center(The
Fountains)
Time Warner Entertainment Advance (8) 28,366,997$ 14.2% Cable Operator (Commercial Office Buildings)
Burrtec Waste & Recycling (1) 12,178,259$ 6.1% Refuse Collection Base / Industrial Offices
Business Park of the Desert (13) 9,014,141$ 4.5% Industrial / Commercial Business Park
SAG Palm Desert (1) 8,676,780$ 4.4% Industrial / Commercial Business Park
Northern Trust Bank of California (8) 7,879,580$ 4.0% Industrial / Commercial Business Park
Desert Properties LLC (5) 6,687,912$ 3.4% Industrial Offices & Parking Lot
Melanie Place (1) 6,386,327$ 3.2% Industrial / Commercial Business Park
SMG 17 (1) 6,299,054$ 3.2% Business / Commercial Offices
43100 Cook St (1) 5,565,852$ 2.8% Business / Commercial Offices
Cook St. Office (1) 5,195,704$ 2.6%Business / Commercial Offices (Corner of
Cook/Hovley St)
Entravision Communications Corp (2) 4,856,864$ 2.4% KUNA-TV / Commercial Offices
Lakeside Investment Properties (5) 4,746,902$ 2.4% Mix Use Industrial/Commercial Buildings/Stores
Veridian (1) 4,573,680$ 2.3% Vacant Commercial Land
Desert Art Properties (1) 4,319,463$ 2.2% Industrial / Commercial Business Park
Rancho Vista Apts (7) 4,150,675$ 2.1% Multi Family Dwellings (Rancho Vista Apts)
Stor N Lock Partners 16 (1) 3,932,243$ 2.0% Storage Facility (Stor-n-Lock)
Eclectic Associates (1) 3,800,047$ 1.9% Business / Commercial Offices
WR XVIII (1) 3,764,726$ 1.9% Golf Course / Country Club
Total Net Assessed Value 199,355,612$ 100%
(1) Cumulative represents only the top twenty properties.
Source: Muniservices LLC and Riverside County Assessor 2010/2011 Combined Tax Rolls & City of Palm Desert Redevelopment Agency
214
City of Palm Desert
RDA Project Area #4
FY 2011 Top Twenty Property Taxpayers
Owner
(Number of Parcels)
Assessed
Value $
Cumulative %
(1) Business Description
Ashford Park Holdings (1) 29,223,036$ 20.9% Multi-Family Dwellings (Desert Oasis Apts)
Indian Ridge Country Club Inc. (29) 27,639,637$ 19.7% Indian Ridge Golf Course & Homes (Private)
Sure Save Storage Palm Desert (2) 13,217,561$ 9.4% Storage Facility
Palm Desert SPE (4) 12,505,531$ 8.9% Multi-Family Dwellings (Palm Desert Apts)
PD Villas on the Green (1) 8,067,156$ 5.8%Multi-Family Dwellings (Villas on the Green,
55+Apts)
CT Woodhaven (4) 6,827,038$ 4.9% Golf Course / Country Club
PDCC Development LLC (17) 6,494,250$ 4.6% Single-Family Dwellings Condos (Desert Breezes)
SR Mutual Investment Corp. (7) 6,098,881$ 4.4% Residential ,Condo's-PD Resort C.C.
First Interstate Bank of California (1) 3,698,732$ 2.6% Multi-Family Dwellings (Royal Palms Apts)
Royal Palms Realty LLC (43) 3,285,761$ 2.3% Multiple Singe Family Residences (PDCC)
Edward R. Chiuminatta (2) 2,517,000$ 1.8% 2 Single Family Residences (Indian Ridge C.C.)
Dennis L. McGuire (2) 2,515,000$ 1.8% 2 Single Family Residences (Indian Ridge C.C.)
Peggy M. Hoffman (2) 2,467,000$ 1.8% 2 Single Family Residences (Indian Ridge C.C.)
MLK (1) 2,406,582$ 1.7% Business / Commercial Offices
Denver Braden (2) 2,392,550$ 1.7% 2 Single Family Residences (Indian Ridge C.C.)
Villa Del Sol (2) 2,369,000$ 1.7% Multi-Family Dwellings (Villa Del Sol Apts)
Robert Allen (2) 2,268,000$ 1.6% 2 Single Family Residences (Indian Ridge C.C.)
Mobil Oil Corp (2) 2,231,582$ 1.6% Mobil Gas Station/Car wash
Ronald E Brown 1,996,327$ 1.4% Single Family Residence (Indian Ridge C.C.)
Joann E Jacobs 1,769,000$ 1.3% Single Family Residence (Indian Ridge C.C.)
Total Net Assessed Value 139,989,624$ 100%
(1) Cumulative represents only the top twenty properties.
Source: Muniservices LLC and Riverside County Assessor 2010/2011 Combined Tax Rolls & City of Palm Desert Redevelopment Agency
215
City of Palm Desert
Project Area Statistics
June 30, 2011
Description RDA 1
Original
RDA 1
Annex RDA 2 RDA 3 RDA 4
Date Project Area was Established July 16, 1975 November 25, 1981 July 15, 1987 July 17, 1991 July 19, 1993
Most Recent Amendment Date December 9, 2004 December 9, 2004 December 9, 2004 December 9, 2004 December 9, 2004
Effectiveness of Plan
(Project Duration)July 16, 2016 November 25, 2022 July 15, 2028 July 17, 2032 July 19, 2034
Repayment of Indebtedness July 16, 2026 November 25, 2032 July 15, 2038 July 17, 2042 July 19, 2044
Last Date to incur indebtedness Eliminated Eliminated Eliminated Eliminated Eliminated
Eminent Domain July 16, 1987 November 25, 1993 July 15, 1999 July 17, 2003 July 19, 2005
800,000,000$
1,548,428,449$
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.
Source: Palm Desert Redevelopment Agency
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$ 600,000,000$
216
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2011
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$ 18,700,000$ 51,550,000$ 22,795,000$
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 11/12 - 0 1,050,000 2,450,000 2,870,000
Interest Due 11/12 1,114,665 950,000 876,213 2,714,634 1,083,500
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 11,940,000$ 15,745,000$ 58,928,942$ 3,915,000$ 15,704,358$
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 11/12 760,000 - 1,720,000 110,000 205,000
Interest Due 11/12 548,638 769,006 2,200,570 186,225 562,141
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
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 8,225,000$ 13,575,000$ 19,578,062$ 1,535,000$ 10,050,000$ 74,950,000$
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 -$ -$ -$ -$ -$ -$
Principle due 11/12 135,000 325,000 570,000 1,535,000 295,000 3,265,000
Interest Due 11/12 420,635 628,011 657,612 38,375 470,201 3,478,438
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 #1
PROJECT AREA #3
PROJECT AREA #4
PROJECT AREA #2
217
City of Palm Desert
FY 2010/2011
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 28.40860522% 28.27889425% 26.32466050% 25.5052249% 21.91597139%
County Library 2.75062310% 2.89619776% 2.95731980% 2.8158860% 2.82912979%
County Fire 5.92127143% 6.23465071% 6.36622293% 6.0617622% 6.09027026%
City of Indian Wells Annex 0.00000000% 0.00007617% 0.00000000% 0.00000000%0.00000000%
Supervisor Road District 4 0.00000000% 0.00000630% 0.00000000% 0.00000000%0.00000000%
City of Palm Desert 0.00000000% 2.32820687%5.21695427% 4.32799289% 8.67577210%
Rancho Mirage Library 0.00000000% 0.02961138% 0.00000000% 0.00000000% 0.00000000%
Rancho Mirage Fire Asmt.0.00000000% 0.01375547% 0.00000000% 0.00000000% 0.00000000%
Desert Sands Unified School District 36.51879189%36.94526243% 22.06223400% 37.38525297% 37.56105155%
Palm Springs Unified School District 0.00000000% 0.00000000%12.52222627%0.00000000% 0.00000000%
Desert Community College 7.58846852% 8.05866692%8.15869977% 7.76851690% 7.80504966%
County Superintendent of Schools 4.12851436%4.38432769% 4.43875100% 4.22647025% 4.24634836%
Riverside County Reg Park & Open
Space 0.42971253%0.42750168% 0.39820492% 0.38580430% 0.44199124%
Coachella Valley Public Cemetary 0.34271099%0.30068113% 0.20704545% 0.35084215% 0.35249582%
Palm Springs Public Cemetary 0.00000000%0.000291039 0.07425602%0.00000000% 0.00000000%
Desert Hospital 2.01318734% 1.25732067% 1.76729033% 1.11626899%0.00000000%
Coachella Valley Mosquito & Vector
Control 1.38093124%1.46649920% 1.48470411% 1.41369571% 1.42034671%
Coachella Valley Recreation & Park 2.08861703% 1.83246098% 1.26180664% 2.13817363% 2.14823011%
Coachella Valley Water District 2.75905645% 2.92939465% 2.96638710% 2.82451917% 2.88206601%
Coachella Valley Resource Cons.0.00000000%0.02200202% 0.03802971% 0.07262428% 0.03637933%
Coachella Valley Imp District 80 2.17676493% 0.97366089%0.00000000%0.03135070% 0.00246580%
Coachella Valley Water District Storm
Water Unit 3.49274496% 1.59171892% 3.75520718% 3.57561492% 3.59243186%
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: City of Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
218
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area #1 - Original
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured/Unsecured 9,378,370$ 9,559,527$ 9,587,028$ 9,112,173$ 8,618,586$
Supplemental 126,342 110,042 30,362 330,285 255,077
SBE (Utility)339,871 330,667 361,150 362,009 358,243
Total Gross Increment 9,844,583 10,000,236 9,978,539 9,804,467 9,231,907
Low/Mod Housing Set Aside (1,968,917) (2,000,047) (1,995,708) (1,960,893) (1,829,832)
Tax Increment Less Low/Mod 7,875,666 8,000,189 7,982,832 7,843,574 7,402,075
Total Pass-Throughs (838,722) (850,953) (885,352) (841,237) (724,021)
SB 2557 Charges (101,933) (119,449) (92,168) (86,539) (82,749)
Net Tax Increment Agency (2)6,935,011$ 7,029,786$ 7,005,311$ 6,915,798$ 6,595,305$
FY 2006 2005 2004 2003 2002
Secured/Unsecured 7,996,533$ 7,406,602$ 6,934,754$ 6,503,515$ 6,360,760$
Supplemental 817,902 200,879 151,075 49,849 104,267
SBE (Utility)280,131 300,931 297,098 288,489 285,323
Total Gross Increment 9,094,566 7,908,412 7,382,927 6,841,853 6,750,350
Low/Mod Housing Set Aside (1,803,116) (1,561,352) (1,455,810) (1,348,011) (1,328,643)
Tax Increment Less Low/Mod 7,291,450 6,347,059 5,927,117 5,493,842 5,421,707
Total Pass-Throughs (1)(830,846) (279,854) (316,366) (696,443) (922,984)
SB 2557 Charges (78,987) (101,653) (103,877) (101,797) (107,137)
Net Tax Increment Agency (2)6,381,617$ 5,965,552$ 5,506,874$ 4,695,602$ 4,391,586$
(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.
Source: City of Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
$0
$1,500,000
$3,000,000
$4,500,000
$6,000,000
$7,500,000
$9,000,000
2011 2010 2009 2008 2007
4.86%3.35%
Percentage represents change from prior year.
1.29%.35%-1.35%
219
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured/Unsecured 39,345,895$ 40,394,226$ 42,187,053$ 40,030,758$ 36,240,089$
Supplemental 521,948 1,501,116 310,030 2,644,698 3,587,825
SBE (Utility)311,964 295,078 320,911 280,014 255,476
Total Gross Increment 40,179,806 42,190,420 42,817,994 42,955,470 40,083,390
Low/Mod Housing Set Aside (8,035,961) (8,438,084) (8,563,599) (8,591,094) (7,949,224)
Tax Increment Less Low/Mod 32,143,845 33,752,336 34,254,395 34,364,376 32,134,166
Total Pass-Throughs (18,838,888) (19,409,560) (20,165,002) (20,349,225) (18,869,733)
SB 2557 Charges (415,966) (491,441) (391,166) (368,824) (337,271)
Net Tax Increment Agency (1)12,888,990$ 13,851,336$ 13,698,227$ 13,646,327$ 12,927,162$
FY 2006 2005 2004 2003 2002
Secured/Unsecured 31,237,832$ 27,778,894$ 25,247,194$ 22,967,677$ 19,826,224$
Supplemental 5,644,432 1,502,190 886,454 910,786 2,011,351
SBE (Utility)167,752 142,166 144,829 136,296 134,804
Total Gross Increment 37,050,016 29,423,250 26,278,477 24,014,759 21,972,379
Low/Mod Housing Set Aside (7,350,269) (5,811,002) (5,182,761) (4,733,721) (4,330,166)
Tax Increment Less Low/Mod 29,699,746 23,612,248 21,095,716 19,281,038 17,642,213
Total Pass-Throughs (17,382,480) (13,463,639) (11,740,730) (10,523,374) (9,583,446)
SB 2557 Charges (298,669) (368,240) (364,672) (346,155) (321,551)
Net Tax Increment Agency (1)12,018,598$ 9,780,369$ 8,990,314$ 8,411,509$ 7,737,217$
(1) Data for SB 2557 Charges is available from FY 1990/91.
(1) Net Tax Increment Agency does not include Debt Service payments.
Source: City of Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
$12,400,000
$12,600,000
$12,800,000
$13,000,000
$13,200,000
$13,400,000
$13,600,000
$13,800,000
$14,000,000
2011 2010 2009 2008 2007
Percentage represents change from prior year.
5.56%
33.68%
.38%
1.12%
-6.95%
220
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured/Unsecured 15,199,013$ 17,726,474$ 19,400,296$ 17,779,922$ 15,816,298$
Supplemental 136,222 958,429 216,957 1,121,602 1,332,272
SBE (Utility)99,809 93,124 101,056 81,421 70,380
Total Gross Increment 15,435,043 18,778,027 19,718,309 18,982,945 17,218,950
Low/Mod Housing Set Aside (3,087,009) (3,755,605) (3,943,662) (3,796,589) (3,414,421)
Tax Increment Less Low/Mod 12,348,035 15,022,421 15,774,648 15,186,356 13,804,529
Total Pass-Throughs (4,643,546) (7,331,058) (7,665,640) (7,598,015) (6,846,307)
SB 2557 Charges (160,467) (215,165) (179,911) (163,443) (146,845)
Net Tax Increment Agency (1)7,544,021$ 7,476,199$ 7,929,096$ 7,424,898$ 6,811,376$
FY 2006 2005 2004 2003 2002
Secured/Unsecured 13,756,558$ 12,629,958$ 11,717,869$ 10,422,746$ 8,575,348$
Supplemental 1,553,145 698,023 812,847 548,517 257,896
SBE (Utility)39,774 23,747 25,689 22,768 22,519
Total Gross Increment 15,349,478 13,351,728 12,556,405 10,994,031 8,855,763
Low/Mod Housing Set Aside (3,043,663) (2,636,969) (2,477,550) (2,167,507) (1,743,454)
Tax Increment Less Low/Mod 12,305,815 10,714,759 10,078,855 8,826,524 7,112,309
Total Pass-Throughs (6,072,950) (5,459,600) (4,683,769) (4,320,158) (3,296,575)
SB 2557 Charges (131,163) (166,884) (168,655) (156,494) (138,491)
Net Tax Increment Agency (1)6,101,702$ 5,088,275$ 5,226,431$ 4,349,872$ 3,677,242$
(1) Net Tax Increment Agency does not include Debt Service payments.
Source: City of Palm Desert Redevelopment Agency, 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
$10,500,000
2011 2010 2009 2008 2007
Percentage represents change from prior year.
9.01%6.79%
11.63%-5.71%.91%
221
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area #3
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured/Unsecured 4,272,249$ 4,537,360$ 4,499,995$ 3,924,542$ 3,402,301$
Supplemental 7,421 301,307 236,572 454,199 185,346
SBE (Utility)14,393 12,900 13,956 9,990 6,910
Total Gross Increment 4,294,063 4,851,567 4,750,524 4,388,731 3,594,557
Low/Mod Housing Set Aside (858,813) (970,313) (950,105) (877,746) (712,606)
Tax Increment Less Low/Mod 3,435,251 3,881,254 3,800,419 3,510,985 2,881,951
Total Pass-Throughs (1,983,494) (2,213,071) (2,214,109) (2,173,895) (1,806,340)
SB 2557 Charges (1)(44,962) (54,958) (42,288) (36,007) (31,526)
Net Tax Increment Agency 1,406,795$ 1,613,225$ 1,544,022$ 1,301,083$ 1,044,084$
FY 2006 2005 2004 2003 2002
Secured/Unsecured 2,858,918$ 2,137,750$ 2,040,874$ 1,359,556$ 1,204,009$
Supplemental 607,706 261,674 150,716 79,744 130,497
SBE (Utility)3,147 763 1,001 731 723
Total Gross Increment 3,469,772 2,400,187 2,192,591 1,440,031 1,335,229
Low/Mod Housing Set Aside (688,513) (474,397) (432,653) (283,930) (263,165)
Tax Increment Less Low/Mod 2,781,259 1,925,790 1,759,938 1,156,101 1,072,064
Total Pass-Throughs (1,750,650) (1,197,599) (899,766) (448,489) (183,986)
SB 2557 Charges (1)(27,207) (28,204) (29,324) (20,379) (19,405)
Net Tax Increment Agency (2)1,003,402$ 699,987$ 830,848$ 687,233$ 868,673$
(1) Data for SB 2557 Charges is available from FY 1993/94.
Source: City of Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
$0
$300,000
$600,000
$900,000
$1,200,000
$1,500,000
$1,800,000
$2,100,000
2011 2010 2009 2008 2007
Percentage represents change from prior year.
24.61%
4.05%
18.67%-6.43%
-2.62%
222
City of Palm Desert
Historical Tax Increment Summary
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured/Unsecured 11,919,873$ 12,923,345$ 13,712,549$ 13,518,052$ 12,117,535$
Supplemental 93,893 308,182 140,937 1,013,384 1,296,818
SBE (Utility)59,275 54,666 59,245 43,558 34,914
Total Gross Increment 12,073,042 13,286,193 13,912,731 14,574,994 13,449,266
Low/Mod Housing Set Aside (2,414,608) (2,657,239) (2,782,546) (2,914,999) (2,667,385)
Tax Increment Less Low/Mod 9,658,434 10,628,955 11,130,185 11,659,995 10,781,881
Total Pass-Throughs (6,744,173) (7,400,665) (7,784,441) (8,032,775) (7,426,842)
SB 2557 Charges (1)(125,648) (156,747) (127,300) (124,107) (112,342)
Net Tax Increment Agency 2,788,613$ 3,071,543$ 3,218,444$ 3,503,113$ 3,242,697$
FY 2006 2005 2004 2003 2002
Secured/Unsecured 10,483,484$ 9,017,457$ 8,044,541$ 7,275,223$ 6,205,401$
Supplemental 2,197,486 694,864 318,307 411,994 854,021
SBE (Utility)15,009 2,036 3,641 1,952 1,930
Total Gross Increment 12,695,978 9,714,357 8,366,489 7,689,169 7,061,353
Low/Mod Housing Set Aside (2,519,237) (1,919,081) (1,650,181) (1,516,029) (1,392,274)
Tax Increment Less Low/Mod 10,176,742 7,795,276 6,716,308 6,173,140 5,669,078
Total Pass-Throughs (6,778,536) (5,145,220) (3,569,212) (3,863,556) (3,747,180)
SB 2557 Charges (1)(99,794) (118,954) (115,583) (109,024) (99,981)
Net Tax Increment Agency 3,298,411$ 2,531,102$ 3,031,513$ 2,200,560$ 1,821,917$
(1) Data for SB 2557 Charges is available from FY 1995/96.
Source: City of Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
$0
$750,000
$1,500,000
$2,250,000
$3,000,000
$3,750,000
$4,500,000
$5,250,000
2011 2010 2009 2008 2007
Percentage represents change from prior year.
8.03%-1.69%-8.13%-4.56%-9.21%
223
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Original
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured: (1)
Land 246,861,736$ 249,715,896$ 241,759,729$ 233,208,647$ 216,759,847$
Improvements 610,067,877 613,769,221 610,061,698 584,395,005 552,604,613
Personal Property 3,127,559 3,399,575 5,000,717 4,856,393 6,825,265
Penalty 0 0 0 0 0
Less Other Exempt (895,957) (898,089) (455,200) (1,570,949) (760,295)
Less Home Owner Value (61,600) (49,000) (70,000) (63,000) (70,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 859,099,615 865,937,603 856,296,944 820,826,096 775,359,430
Unsecured:
Land 99 99 1,267 1,245 1,220
Improvements 57,617,429 63,627,182 69,008,584 60,185,535 56,536,963
Personal Property 48,607,315 53,892,307 60,792,341 57,684,012 57,404,440
Penalty 0 0 0 0 0
Less Other Exempt (63,954) (68,471) (66,749) (56,785) (32,652)
Total Net Assessed Taxable Unsecured Value 106,160,889 117,451,117 129,735,443 117,814,007 113,909,971
Total Net Assessed Taxable Value 965,260,504$ 983,388,720$ 986,032,387$ 938,640,103$ 889,269,401$
FY 2006 2005 2004 2003 2002
Secured: (1)
Land 209,051,600$ 193,066,855$ 180,571,588$ 175,028,644$ 171,440,095$
Improvements 515,092,610 468,555,559 430,563,506 403,984,613 389,716,686
Personal Property 7,420,696 4,909,559 2,970,008 3,290,180 3,824,393
Penalty 0 0 0 0 2,536
Less Other Exempt (610,338) (730,777) (100) 0 0
Less Home Owner Value (70,000) (70,000) (77,000) (75,600) (70,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 730,884,568 665,731,196 614,028,002 582,227,837 564,913,710
Unsecured:
Land 396 156,701 174,128 201,461 229,626
Improvements 48,736,306 51,133,704 52,581,364 48,916,729 52,533,594
Personal Property 47,480,402 51,093,465 54,158,601 46,472,846 44,331,125
Penalty 0 0 0 0 1,592,700
Less Other Exempt (32,573) (39,043) (57,842) (57,121) (58,570)
Total Net Assessed Taxable Unsecured Value 96,184,531 102,344,827 106,856,251 95,533,915 98,628,475
Total Net Assessed Taxable Value 827,069,099$ 768,076,023$ 720,884,253$ 677,761,752$ 663,542,185$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
224
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 1 - Original
2011 versus 2010
FY 2011 2010 % Change
Secured: (1)
Land 246,861,736$ 249,715,896$ -1.1%
Improvements 610,067,877$ 613,769,221$ -0.6%
Personal Property 3,127,559$ 3,399,575$ -8.0%
Penalty 0$ 0$ 0.0%
Less Other Exempt (895,957)$ (898,089)$ -0.2%
Less Home Owner Value (61,600)$ (49,000)$ 25.7%
Total Net Assessed Taxable Secured Value 859,099,615$ 865,937,603$ -0.8%
Unsecured:
Land 99$ 99$ 0.0%
Improvements 57,617,429$ 63,627,182$ -9.4%
Personal Property 48,607,315$ 53,892,307$ -9.8%
Penalty 0$ 0$ 0.0%
Less Other Exempt (63,954)$ (68,471)$ -6.6%
Total Net Assessed Taxable Unsecured Value 106,160,889$ 117,451,117$ -9.6%
Total Net Assessed Taxable Value 965,260,504$ 983,388,720$ -1.8%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
225
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Amended
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured: (1)
Land 1,520,035,284$ 1,556,322,273$ 1,646,837,956$ 1,548,363,317$ 1,404,883,142$
Improvements 3,064,294,006 3,138,650,280 3,216,329,372 3,098,549,660 2,848,708,294
Personal Property 3,304,016 2,462,676 4,295,752 4,850,231 5,159,912
Penalty 0 0 0 0 0
Less Other Exempt (89,778,462) (86,825,212) (86,439,305) (84,042,297) (71,117,424)
Less Home Owner Value (29,088,641) (29,699,188) (30,414,878) (30,606,235) (30,941,142)
Less B Inv. Value 0 0 0
Total Net Assessed Taxable Secured Value 4,468,766,203 4,580,910,829 4,750,608,897 4,537,114,676 4,156,692,782
Unsecured:
Land 262,619 623 56,456 714 781
Improvements 31,662,152 33,207,261 37,501,662 36,438,840 38,277,529
Personal Property 64,035,933 59,544,019 67,485,677 62,971,014 57,326,123
Penalty 0 0 0 0 0
Less Other Exempt (3,119,713) (7,874,926) (11,366,822) (7,990,591) (3,164,410)
Total Net Assessed Taxable Unsecured Value 92,840,991 84,876,977 93,676,973 91,419,977 92,440,023
Total Net Assessed Taxable Value 4,561,607,194$ 4,665,787,806$ 4,844,285,870$ 4,628,534,653$ 4,249,132,805$
2006 2005 2004 2003 2002
Secured: (1)
Land 1,221,817,819$ 1,099,974,404$ 1,037,831,772$ 964,043,115$ 887,797,124$
Improvements 2,548,978,946 2,322,285,503 2,109,457,532 1,966,604,300 1,742,745,364
Personal Property 5,081,062 4,080,748 3,722,255 4,822,804 4,009,942
Penalty 0 0 0 0 31,999
Less Other Exempt (75,212,626) (72,356,678) (50,011,055) (50,251,474) (55,711,920)
Less Home Owner Value (30,902,546) (31,114,156) (30,819,292) (28,898,212) (28,025,997)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 3,669,762,655 3,322,869,821 3,070,181,212 2,856,320,533 2,550,846,512
Unsecured:
Land 0 1,449 9,581 135,778 143,855
Improvements 33,710,842 33,165,394 32,087,933 29,960,052 26,976,720
Personal Property 51,779,049 53,234,502 56,477,588 46,150,607 42,134,507
Penalty 0 0 0 0 494,612
Less Other Exempt (6,306,859) (6,430,836) (8,791,155) (8,632,424) (9,613,037)
Total Net Assessed Taxable Unsecured Value 79,183,032 79,970,509 79,783,947 67,614,013 60,136,657
Total Net Assessed Taxable Value 3,748,945,687$ 3,402,840,330$ 3,149,965,159$ 2,923,934,546$ 2,610,983,169$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
226
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 1 - Amended
2011 versus 2010
FY 2011 2010 % Change
Secured: (1)
Land 1,520,035,284$ 1,556,322,273$ -2.3%
Improvements 3,064,294,006$ 3,138,650,280$ -2.4%
Personal Property 3,304,016$ 2,462,676$ 34.2%
Penalty 0$ 0$ 0.0%
Less Other Exempt (89,778,462)$ (86,825,212)$ 3.4%
Less Home Owner Value (29,088,641)$ (29,699,188)$ -2.1%
Total Net Assessed Taxable Secured Value 4,468,766,203$ 4,580,910,829$ -2.4%
Unsecured:
Land 262,619$ 623$ 42053.9%
Improvements 31,662,152$ 33,207,261$ -4.7%
Personal Property 64,035,933$ 59,544,019$ 7.5%
Penalty 0$ 0$ 0.0%
Less Other Exempt (3,119,713)$ (7,874,926)$ -60.4%
Total Net Assessed Taxable Unsecured Value 92,840,991$ 84,876,977$ 9.4%
Total Net Assessed Taxable Value 4,561,607,194$ 4,665,787,806$ -2.2%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
227
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 2
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured: (1)
Land 516,275,626$ 566,073,734$ 633,335,921$ 587,058,715$ 521,340,003$
Improvements 1,075,692,278 1,268,066,132 1,367,855,491 1,276,315,674 1,137,488,315
Personal Property 2,702,362 670,711 866,004 590,836 6,592,802
Penalty (2)0 0 0
Less Other Exempt (10,401,200) (8,919,361) (7,964,045) (9,550,463) (7,655,384)
Less Home Owner Value (3,750,600) (3,673,600) (3,724,000) (3,735,200) (3,752,000)
Less B Inv. Value 0 0 0
Total Net Assessed Taxable Secured Value 1,580,518,466 1,822,217,616 1,990,369,371 1,850,679,562 1,654,013,736
Unsecured:
Land 0 0 2,542 0 0
Improvements 9,474,802 14,071,375 18,201,638 5,343,621 6,215,099
Personal Property 28,314,673 34,842,003 29,865,376 20,391,298 19,806,418
Penalty 0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 37,789,475 48,913,378 48,069,556 25,734,919 26,021,517
Total Net Assessed Taxable Value 1,618,307,941$ 1,871,130,994$ 2,038,438,927$ 1,876,414,481$ 1,680,035,253$
FY 2006 2005 2004 2003 2002
Secured: (1)
Land 414,088,670$ 377,500,739$ 338,504,943$ 298,852,366$ 268,700,076$
Improvements 1,043,768,419 964,730,831 915,313,076 830,436,695 675,455,198
Personal Property 6,930,907 8,309,969 7,136,535 7,539,988 6,840,530
Penalty (2)0 0 0 0 0
Less Other Exempt (3,292,024) (3,133,357) (2,979,597) (2,823,135) (2,767,781)
Less Home Owner Value (3,752,000) (3,689,000) (3,316,600) (2,853,200) (2,639,000)
Less B Inv. Value 0 0 0 0 0
Total Net Assessed Taxable Secured Value 1,457,743,972 1,343,719,182 1,254,658,357 1,131,152,714 945,589,023
Unsecured:
Land 0 0 0 0 0
Improvements 4,187,472 3,853,947 4,482,615 2,799,545 2,910,472
Personal Property 12,129,847 13,891,105 11,486,746 7,626,600 8,438,055
Penalty 0 0 0 0 115,676
Total Net Assessed Taxable Unsecured Value 16,317,319 17,745,052 15,969,361 10,426,145 11,464,203
Total Net Assessed Taxable Value 1,474,061,291$ 1,361,464,234$ 1,270,627,718$ 1,141,578,859$ 957,053,226$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
228
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 2
2011 versus 2010
FY 2011 2010 % Change
Secured: (1)
Land 516,275,626$ 566,073,734$ -8.8%
Improvements 1,075,692,278$ 1,268,066,132$ -15.2%
Personal Property 2,702,362$ 670,711$ 302.9%
Penalty 0$ 0$ 0.0%
Less Other Exempt (10,401,200)$ (8,919,361)$ 16.6%
Less Home Owner Value (3,750,600)$ (3,673,600)$ 2.1%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,580,518,466 1,822,217,616 -13.3%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 9,474,802$ 14,071,375$ -32.7%
Personal Property 28,314,673$ 34,842,003$ -18.7%
Penalty 0$ 0$ 0.0%
Total Net Assessed Taxable Unsecured Value 37,789,475 48,913,378 -22.7%
Total Net Assessed Taxable Value 1,618,307,941$ 1,871,130,994$ -13.5%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
229
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 3
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured: (1)
Land 123,088,378$ 125,790,120$ 134,147,217$ 119,422,958$ 114,253,170$
Improvements 392,221,646 424,745,043 418,977,238 375,240,496 333,347,161
Personal Property 3,523,812 5,011,721 3,308,454 3,629,771 3,893,071
Penalty 0 0 0 0 0
Less Other Exempt (20,749,611) (20,847,823) (20,782,445) (19,251,214) (19,311,510)
Less Home Owner Value (2,303,000) (2,371,600) (2,331,000) (2,203,600) (2,206,400)
Total Net Assessed Taxable Secured Value 495,781,225 532,327,461 533,319,464 476,838,411 429,975,492
Unsecured:
Land 0 0 0 0 0
Improvements 8,768,007 14,220,568 18,796,505 17,795,034 13,109,332
Personal Property 70,315,349 54,874,036 45,622,109 45,542,975 44,899,884
Penalty 0 0 0 0 0
Less Other Exempt (419,433) (534,431) (549,632) (402,531) (437,726)
Total Net Assessed Taxable Unsecured Value 78,663,923 68,560,173 63,868,982 62,935,478 57,571,490
Total Net Assessed Taxable Value 574,445,148$ 600,887,634$ 597,188,446$ 539,773,889$ 487,546,982$
FY 2006 2005 2004 2003 2002
Secured: (1)
Land 103,496,559$ 91,523,675$ 83,600,129$ 76,423,641$ 70,984,182$
Improvements 298,197,384 243,139,587 221,590,995 176,923,362 167,824,429
Personal Property 3,890,560 3,152,374 1,581,880 1,224,360 1,221,819
Penalty 0 0 0 0 255
Less Other Exempt (20,251,190) (19,430,222) (3,149,364) (2,977,801) (2,868,530)
Less Home Owner Value (2,046,800) (1,974,000) (1,912,400) (1,750,000) (1,687,000)
Total Net Assessed Taxable Secured Value 383,286,513 316,411,414 301,711,240 249,843,562 235,475,155
Unsecured:
Land 370 2,138 2,138 2,213 29,325
Improvements 12,424,085 9,635,015 13,245,112 8,281,641 11,021,570
Personal Property 38,091,911 35,730,772 37,209,995 26,061,080 21,453,363
Penalty 0 0 0 0 904,695
Less Other Exempt (434,582) (455,101) (470,220) (459,656) (646,953)
Total Net Assessed Taxable Unsecured Value 50,081,784 44,912,824 49,987,025 33,885,278 32,762,000
Total Net Assessed Taxable Value 433,368,297$ 361,324,238$ 351,698,265$ 283,728,840$ 268,237,155$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
230
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 3
2011 versus 2010
FY 2011 2010 % Change
Secured: (1)
Land 123,088,378$ 125,790,120$ -2.1%
Improvements 392,221,646$ 424,745,043$ -7.7%
Personal Property 3,523,812$ 5,011,721$ -29.7%
Penalty 0$ 0$ 0.0%
Less Other Exempt (20,749,611)$ (20,847,823)$ -0.5%
Less Home Owner Value (2,303,000)$ (2,371,600)$ -2.9%
Total Net Assessed Taxable Secured Value 495,781,225 532,327,461 -6.9%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 8,768,007$ 14,220,568$ -38.3%
Personal Property 70,315,349$ 54,874,036$ 28.1%
Penalty 0$ 0$ 0.0%
Less Other Exempt (419,433)$ (534,431)$ -21.5%
Total Net Assessed Taxable Unsecured Value 78,663,923 68,560,173 14.7%
Total Net Assessed Taxable Value 574,445,148$ 600,887,634$ -4.4%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
231
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 4
Last Ten Fiscal Years
FY 2011 2010 2009 2008 2007
Secured: (1)
Land 535,851,149$ 571,851,472$ 612,342,380$ 589,549,492$ 538,079,392$
Improvements 1,239,148,331 1,299,807,730 1,338,202,248 1,340,102,309 1,253,230,590
Personal Property 3,145,190 3,272,357 3,221,691 4,306,781 895,558
Penalty (2)0 0 0 0 0
Less Other Exempt (3,156,884) (3,073,279) (3,034,308) (3,046,149) (2,814,993)
Less Home Owner Value (14,840,000) (14,991,200) (15,250,200) (15,577,800) (15,797,600)
Less B Inv. Value
Total Net Assessed Taxable Secured Value 1,760,147,786 1,856,867,080 1,935,481,811 1,915,334,633 1,773,592,947
Unsecured:
Land 0 0 0 0 0
Improvements 971,923 1,383,594 1,404,311 1,372,786 1,581,231
Personal Property 3,219,710 6,284,727 6,296,641 6,712,170 7,973,923
Penalty (2)0 0 0 0 0
Total Net Assessed Taxable Unsecured Value 4,191,633 7,668,321 7,700,952 8,084,956 9,555,154
Total Net Assessed Taxable Value 1,764,339,419$ 1,864,535,401$ 1,943,182,763$ 1,923,419,589$ 1,783,148,101$
FY 2006 2005 2004 2003 2002
Secured: (1)
Land 480,264,736$ 423,136,913$ 387,894,896$ 363,532,124$ 336,601,532$
Improvements 1,145,343,698 1,060,291,261 1,000,472,990 943,610,707 861,691,896
Personal Property 1,037,306 1,039,548 903,523 1,176,104 1,269,934
Penalty (2)0 0 0 0 91,675
Less Other Exempt (2,988,924) (2,213,136) (2,236,588) (2,005,855) (1,924,780)
Less Home Owner Value (15,874,600) (16,083,200) (16,032,800) (15,162,000) (14,604,800)
Less B Inv. Value 0 0 0
Total Net Assessed Taxable Secured Value 1,607,782,216 1,466,171,386 1,371,002,021 1,291,151,080 1,183,125,457
Unsecured:
Land 0 0 0 0 0
Improvements 1,606,970 2,043,627 1,172,618 1,610,760 1,878,576
Personal Property 10,276,814 4,639,732 3,438,910 6,790,656 8,053,034
Penalty (2)0 0 0 0 70,495
Total Net Assessed Taxable Unsecured Value 11,883,784 6,683,359 4,611,528 8,401,416 10,002,105
Total Net Assessed Taxable Value 1,619,666,000$ 1,472,854,745$ 1,375,613,549$ 1,299,552,496$ 1,193,127,562$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
232
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 4
2011 versus 2010
FY 2011 2010 % Change
Secured: (1)
Land 535,851,149$ 571,851,472$ -6.3%
Improvements 1,239,148,331$ 1,299,807,730$ -4.7%
Personal Property 3,145,190$ 3,272,357$ -3.9%
Penalty 0$ 0$ 0.0%
Less Other Exempt (3,156,884)$ (3,073,279)$ 2.7%
Less Home Owner Value (14,840,000)$ (14,991,200)$ -1.0%
Less B Inv. Value 0$ 0$ 0.0%
Total Net Assessed Taxable Secured Value 1,760,147,786 1,856,867,080 -5.2%
Unsecured:
Land 0$ 0$ 0.0%
Improvements 971,923$ 1,383,594$ -29.8%
Personal Property 3,219,710$ 6,284,727$ -48.8%
Penalty 0$ 0$ 0.0%
Total Net Assessed Taxable Unsecured Value 4,191,633 7,668,321 -45.3%
Total Net Assessed Taxable Value 1,764,339,419$ 1,864,535,401$ -5.4%
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations & City of Palm Desert Redevelopment Agency
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