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Home My WebLink AboutPalm Desert CAFR Final 2019$JUZPG1BMN%FTFSU $PNQSFIFOTJWF"OOVBM'JOBODJBM3FQPSU 'JTDBM:FBS&OEFE+VOF 1BMN%FTFSU $BMJGPSOJB &2035(+(16,9($118$/),1$1&,$/5(3257 RIWKH &,7<2)3$/0'(6(57&$/,)251,$ )RUWKH)LVFDO<HDUHQGHG -XQH Prepared by the Finance Department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Schedule of Changes in Net Pension Liability and Related Ratios ............................................................................. 98 Miscellaneous Plan- Agent Multiple – Employer Schedule of Plan Contributions ......................... 99 Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................... 100 Schedule of Contributions – OPEB .............................................................................................. 101 Budgetary Comparison Schedule by Department – General Fund .............................................. 102 Budgetary Comparison Schedule – Measure A ........................................................................... 104 Budgetary Comparison Schedule – Prop A Fire Tax ................................................................... 105 Budgetary Comparison Schedule –Housing Asset Fund ............................................................. 106 Budgetary Comparison Schedule – Housing Authority ................................................................ 107 Note to Required Supplementary Information .............................................................................. 108 SUPPLEMENTARY SCHEDULES Combining Balance Sheet – Other Governmental Funds ............................................................ 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Other Governmental Funds .............................................................................. 111 Combining Balance Sheet – Other Special Revenue Funds ....................................................... 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Other Special Revenue Funds ................................................................... 122 Budgetary Comparison Schedules – Special Revenue Funds: Traffic Safety .......................................................................................................................... 127 Gas Tax .................................................................................................................................. 128 Housing Mitigation Fees......................................................................................................... 129 Community Development Block Grant ................................................................................... 130 Child Care Program ............................................................................................................... 131 Public Safety Police Grants ................................................................................................... 132 New Construction Tax ............................................................................................................ 133 Planned Drainage .................................................................................................................. 134 Parks and Recreational Facilities ........................................................................................... 135 Traffic Signals ........................................................................................................................ 136 Fire Facilities Restoration ...................................................................................................... 137 Recycling ................................................................................................................................ 138 &,7<2)3$/0'(6(57 &2035(+(16,9($118$/),1$1&,$/5(3257 )257+(),6&$/<($5(1'('-81( 7$%/(2)&217(176 3DJH 1XPEHU (QHUJ\,QGHSHQGHQFH/RDQ $LU4XDOLW\0DQDJHPHQW $TXDWLF&HQWHU &DQQDELV&RPSOLDQFH (O3DVHR$VVHVVPHQW'LVWULFW /DQGVFDSHDQG/LJKWLQJ'LVWULFWV1R )RUPHU5'$/RZ,QFRPH+RXVLQJ &RPELQLQJ%DODQFH6KHHW±2WKHU&DSLWDO3URMHFWV)XQGV 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of Statistical Section ......................................................................................................... 181 Financial Trends: Net Position by Component .......................................................................................................... 183 Changes in Net Position ............................................................................................................... 184 Fund Balances of Governmental Funds ....................................................................................... 187 Changes in Fund Balances of Governmental Funds .................................................................... 188 Graphs – Changes in Fund Balances of Governmental Funds .................................................... 189 Supplemental Historical General Fund Revenues ....................................................................... 190 Supplemental Graph – Historical General Fund Revenues ......................................................... 191 Supplemental Historical General Fund Expenditures ................................................................... 192 Supplemental Graph – Historical General Fund Expenditures .................................................... 193 Supplemental Historical General Revenue and Expenditures Per Capita ................................... 195 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property .............................................. 196 Historical Net Assessed Taxable Values Citywide and Graph – Assessed Valuation Growth ........................................................................................ 197 Supplemental FY 2019 and 2018 Breakdown of Basic 1% Property Tax Rate Not In Redevelopment Project Area .......................................................................... 198 Property Tax Rates Direct and Overlapping Property Tax Rates ................................................ 199 Principal Property Taxpayers ....................................................................................................... 200 Property Tax Levies and Collections ............................................................................................ 201 Supplemental Top 25 Sales Tax Generators and Graph – Historical Sales Tax Trends ........................................................................................ 202 Debt Capacity: Ratios of Outstanding Debt by Type............................................................................................. 203 Ratios of General Bonded Debt Outstanding ............................................................................... 204 Supplemental Special Assessment Information ........................................................................... 205 Direct and Overlapping Government Activities Debt .................................................................... 206 Legal Debt Margin Information ..................................................................................................... 207 Pledged-Revenue Coverage ........................................................................................................ 208 Demographic and Economic Information: Demographic and Economic Statistics ......................................................................................... 209 Principal Employers ...................................................................................................................... 210 Supplemental Miscellaneous Statistics ........................................................................................ 211 Operating Information: Full-Time Equivalent City Government Employees by Function/Program ................................... 212 Operating Indicators by Function/Program 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INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Palm Desert, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of City of Palm Desert, California, (the City) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 203 N.Brea Blvd.,Suite 203 Brea CA 92821Lance, Soll & Lun hard, LLP Phone:714.672.0022 To the Honorable Mayor and Members of the City Council City of Palm Desert, California 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, California, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules for the general fund, measure a fund, prop a fire tax fund, housing asset fund, housing authority fund, the schedule of changes in net pension liability and related ratios, the schedules of employer contributions and the schedule of changes in net OPEB liability and related ratios on pages 100 and 101 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole. 2 To the Honorable Mayor and Members of the City Council City of Palm Desert, California The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2019 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Brea, California December 20, 2019 3 7+,63$*(,17(17,21$//</()7%/$1. 4 CITY OF PALM DESERT MANAGEMENT’S DISCUSSION AND ANALYSIS Our discussion and analysis of the City of Palm Desert’s financial performance for the fiscal year ended June 30, 2019 provides: a comparison of current year to prior year ending results based on the government-wide financial statements; an analysis of the City’s overall financial position and results of operations to assist users in evaluating the City’s financial position; a discussion of significant changes that occurred in the funds; and significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. We end our discussion and analysis with a description of known facts, decisions, and conditions that are expected to have a significant effect on the financial position or results of operations. Please read it in conjunction with the transmittal letter and the City’s financial statements. FINANCIAL HIGHLIGHTS  The City’s total assets and deferred outflows exceeded its liabilities and deferred inflows by $795.99 million (net position).  The City’s governmental activities net position increased $1.74 million, and the net position of the business-type activities increased $0.94 million.  During the year, the City’s revenues were $101.84 million and expenses were $92.87 million in its governmental activities, excluding transfers and special item, compared to fiscal year 2018, where revenues were $88.89 million and expenses were $91.47 million.  In the City’s business-type activities, expenses were $1.24 million less than the $10.81 million generated in golf course green fees, merchandise sales, rental income and other revenues compared to the prior year, where business-type activities revenues were $0.36 million more than its expenses.  The City’s governmental activities program revenues and general revenues increased by $12.95 million, while program expenses increased $1.40 million.  Business-type activities revenues increased $0.76 million, from $10.05 million to $10.81 million. Expenses decreased from the $9.69 million to $9.57 million.  The City kept its General Fund expenditures within spending limits by $2.02 million. The revenues available for expenditures were over budget by $0.35 million. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and Statement of Activities (on pages 17, 18 and 19) provide information about the activities of the City as a whole and present a long-term view of the City’s finances. The fund financial statements start on page 22. For governmental activities, these fund statements tell how these services were financed in the short term as well as what remains for future spending. The fund financial statements also report the City’s operation in more detail than the government-wide statements by providing information about the City’s most significant funds and other funds. The remaining fiduciary fund statement provides financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. 5 REPORTING THE CITY AS A WHOLE The Statement of Net Position and the Statement of Activities: Our analysis of the City as a whole begins on page 17. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that answers this question. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City’s net position and changes in them. Net position is the difference between total assets and deferred outflows of resources less liabilities and deferred inflows, which is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are an indication of whether its financial health is improving or deteriorating. Other non-financial factors should be considered, however, such as changes in the economy that could cause a decrease in consumer spending. In the Statement of Net Position and the Statement of Activities, we separate City activities as follows: Governmental activities – Most of the City’s basic services are reported in this category, including general administration (city manager, city clerk, finance, etc.), housing and redevelopment, public safety (police and fire protection), public works, parks, recreation and culture departments. Property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues finance these activities. Business-type activities – The City charges 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 Recreational Facilities Corporation. Although legally separate, this “component unit” is important because the City is financially accountable for it. REPORTING THE CITY’S MOST SIGNIFICANT FUNDS Fund Financial Statements: The fund financial statements provide detailed information about the most significant funds and other funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management established many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other resources. The City has three types of funds: governmental, proprietary and fiduciary. Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in the Government-wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. 6 Proprietary funds – When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City’s enterprise funds are the same as the business-type activities we report in the government-wide statements, but provide more detail and information such as a statement of cash flows. Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Palm Desert operations. The accounting used for fiduciary funds is much like that used for proprietary funds. THE CITY AS TRUSTEE Reporting the City’s Fiduciary Responsibilities: The City is the trustee, or fiduciary, for the Successor Agency to the Palm Desert Redevelopment Agency’s (Successor Agency) private-purpose trust fund and for certain agency funds held on behalf of developers and its employees’ retiree service stipend fund. The City’s fiduciary activities are reported in separate Statements of Net Position, Statement of Changes in Net Position, Statement of Assets and Liabilities, and Statement of Changes in Assets and Liabilities. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. THE CITY AS A WHOLE During the fiscal year ending June 30, 2019, the City’s combined net position increased $2.68 million from $793.31 million to $795.99 million. A separate review of the net change in the governmental and business-type activities is provided for the reader. Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities. 7 2019 2018 2019 2018 2019 2018 Current and restricted assets 352.80$ 344.26$ 7.73$ 6.62$ 360.53$ 350.88$ Capital assets 429.73 438.18 70.67 70.60 500.40 508.78 TOTAL ASSETS 782.53 782.44 78.40 77.22 860.93 859.66 Deferred outflows of resources 10.75$ 12.62$ -$ -$ 10.75$ 12.62$ Long-term liabilities outstanding 43.60 48.49 1.60 1.49 45.20 49.98 Other liabilities 27.42 24.88 1.14 1.01 28.56 25.89 TOTAL LIABILITIES 71.02 73.37 2.74 2.50 73.76 75.87 Deferred inflows of resources 1.93$ 3.10$ -$ -$ 1.93$ 3.10$ Net position: Net investment in capital assets 429.73 438.18 69.07 69.11 498.80 507.29 Restricted 200.54 197.36 - - 200.54 197.36 Unrestricted 90.06 83.05 6.59 5.61 96.65 88.66 TOTAL NET POSITION 720.33$ 718.59$ 75.66$ 74.72$ 795.99$ 793.31$ TABLE 1 NET POSITION As of June 30, 2019 and 2018 TotalActivities Business-TypeGovernmental Activities (IN MILLIONS) ‐ 200 400 600 800 1,000 1,200 2019 2018 2019 2018 2019 2018 Governmental Activities Business‐Type Activities Total Do l l a r s i n M i l l i o n s Table 1 ‐ Graph Total Assets & Liabilities Total Assets Total Liabilities 8 The City’s governmental activities net position increased $1.74 million. The City’s net position is made up of three components: Net investment in capital assets; restricted net position; and unrestricted net position. For governmental activities, unrestricted net position, which represents the part of net position that can be used to finance day-to-day operations, accounted for 12.50 percent of the overall total net position. Unrestricted net position increased $7.01 million from $83.05 million in 2018 to $90.06 million in 2019. The increase in unrestricted net position was the result of an increase in sales taxes and reduction in the City’s pension liability. The increase in sales tax of $3.18 million from last year is due in large part, to a delay in tax distributions from the California Department of Fee and Tax Administration as well as better than expected retail sales and one-time sales events. In the City’s efforts to minimize the effects of the change in discount rate by CalPERS, the City made $3.70 million in additional payments to CalPERS during the last two years resulting in a reduction in the City’s overall outstanding unfunded liability and an increase in net position (see Note 11). The increase of $3.18 million in restricted net position was due to restricted capital projects increasing by $2.41 million from the prior year. During the year, capital projects were at their early stage of planning, therefore, revenues exceed the expenses for street resurfacing, drainage improvements, and street improvements. Restricted special projects increased by $0.77 million, mainly due to new revenue sources for emergency service reimbursement and cannabis tax. Investment in capital assets decreased $8.45 million. The decrease is attributed to current year depreciation of $11.82 million. The calculation of investment in capital assets includes outstanding debt used to purchase or construct the City’s capital assets. The City’s governmental activities total assets and deferred outflow of resources combined decreased $1.78 million from $795.06 million in 2018 to $793.28 million in 2019. The decrease is mostly attributable to the $1.87 million decrease in deferred outflows of resources. Deferred outflows from pensions decreased $2.91 million (see Note 11d) and deferred outflows from other post-employment benefits (OPEB) increased $1.04 million (see Note 15h). In addition to the decrease in deferred outflows of resources, the City established an allowance of $6 million on part of the advances owed by the Successor Agency (see Note 21). Total liabilities and deferred inflows combined decreased by $3.52 million from $76.47 in 2018 to $72.95 million in 2019. As stated above, the City made additional payments to CalPERS that have resulted in a decrease of $4.13 million in the City’s pension liability from $38.97 million in 2018 to $34.84 million in 2019. The net position of the business-type activities recognized an increase of $0.94 million, from $74.72 million to $75.66 million. The main factor for the increase in net position was overall increase in gross revenues which increased by $0.76 million from the previous year. During the 2018-19 fiscal year, Desert Willow market recognized a 2 percent increase in total rounds played along with a 9 percent increase in loyalty programs sold resulting in total increase in green fees of 5 percent. Total liabilities increased $0.24 million from $2.50 million in 2018 to $2.74 million in 2019. The increase in debt obligation for the new lease of golf cart fleet along with the GPS system (see Note 8) is the major factor for the increase in total liabilities. 9 2019 2018 2019 2018 2019 2018 REVENUES: Program Revenues: Charges for services 28.92$ 24.25$ 10.04$ 9.68$ 38.96$ 33.93$ Operating grants and contributions 10.43 8.56 - - 10.43 8.56 Capital grants and contributions 4.02 2.44 0.50 0.17 4.52 2.61 General Revenues: Property taxes 11.91 11.51 - - 11.91 11.51 Transient occupancy tax 17.48 17.30 - - 17.48 17.30 Sales tax 21.43 18.25 - - 21.43 18.25 Other taxes 3.08 3.09 - - 3.08 3.09 Investment earnings 3.17 1.90 0.18 0.07 3.35 1.97 Gain on sale of capital assets - 0.02 - - - 0.02 Other revenues 1.40 1.57 0.09 0.13 1.49 1.70 TOTAL REVENUES 101.84 88.89 10.81 10.05 112.65 98.94 EXPENSES: General government 23.25 18.47 - - 23.25 18.47 Housing and redevelopment 9.07 9.61 - - 9.07 9.61 Public safety 37.20 36.54 - - 37.20 36.54 Parks, recreation and culture 8.28 8.24 - - 8.28 8.24 Public w orks 14.84 18.35 - - 14.84 18.35 Interest on long-term debt 0.23 0.26 - - 0.23 0.26 Golf Course-Desert Willow - - 8.70 8.76 8.70 8.76 Office Complex-Parkview - - 0.87 0.93 0.87 0.93 TOTAL EXPENSES 92.87 91.47 9.57 9.69 102.44 101.16 INCREASE (DECREASE ) IN NET POSITION BEFORE TRANSFERS & SPECIAL ITEM 8.97 (2.58) 1.24 0.36 10.21 (2.22) Transfers 0.30 0.30 (0.30) (0.30) - - Special Item (7.53) - - - (7.53) - INCREASE (DECREASE) IN NET POSITION 1.74 (2.28) 0.94 0.06 2.68 (2.22) BEGINNING NET POSITION 718.59 720.87 74.72 74.66 793.31 795.53 ENDING NET POSITION 720.33$ 718.59$ 75.66$ 74.72$ 795.99$ 793.31$ TABLE 2 CHANGES IN NET POSITION As of June 30, 2019 and 2018 TotalActivities Business-TypeGovernmental Activities (IN MILLIONS) 10 Table 2- Graph Changes in Net Position Governmental Activities Total revenue (excluding transfers) increased by $12.95 million from $88.89 million to $101.84 million. Factors that contributed to the changes in revenues are as follows:  In 2019, investment rates were higher than prior year, therefore, the City accounted for $3.17 million in investment earnings compared to $1.90 million in 2018, an increase of $1.27 million.  The City’s combined general property taxes and sales tax increased by $3.58 million from $29.76 million in 2018 to $33.34 million in 2019. Increase in sales tax was due to a delay in tax distributions from the California Department of Fee and Tax Administration as well as better than expected retail sales and one-time sales events.  Charges for services increased from $24.25 million in 2018 to $28.62 million in 2019. In 2019, the City began collecting for emergency services and cannabis tax. These two new revenue sources increase charges for services by $2.91 million. $2.12 million in emergency service and $0.79 million in cannabis tax.  Operating contributions and grants increased by $1.87 million. This was the result of an increase in investment earnings allocated to those functions/programs.  Capital contribution and grants increased from $2.44 million to $4.02 million, an increase of $1.58 million.  Transient occupancy tax increase from $17.30 million in 2018 to $17.48 million in 2019, an increase of $0.18 million Total expenses increased from $91.47 million to $92.87 million, a 1.53 percent increase. The primary reason for the increase was in the general government function that increased $4.78 million. Additional factors in the change in amount of expenses for the year included, public works decreased $3.51 million. Public safety increased $0.66 million attributed to the increase in fire protection services from $13.50 million to $13.96 million. Additionally, various City funds established an allowance that totaled $7.53 million for advances and interest owed by the Successor Agency (see Note 21). ‐ 100 200 300 400 500 600 700 800 2019 2018 Governmental Activities Do l l a r s i n m i l l i o n s ‐ 10 20 30 40 50 60 70 80 2019 2018 Business‐Type Activities Beginning Net Position Total Revenues Ending Net Position Total Expenses 11 The following schedule represents the net cost of providing services: Governmental Activities Net (Expense) Revenue (In Millions) Business-type Activities In the business-type activities, total revenues increased by 7.5 percent from $10.05 million to $10.81 million, a $0.76 million increase. The main factors for the increase were related to an increase in golf rounds played during the fiscal year from 90,332 to 92,169, plus an increase in the sales of the loyalty programs resulting in increased ancillary revenue. Total green fees and ancillary revenue were $0.33 million more than the previous year. Desert Willow Golf Resort management continued to utilize a strategic pricing structure, which allowed the golf resort to retain the course utilization, which optimized the green fee revenue during periods that were traditionally under-utilized and sold at a discount. The overall rounds mix and play remained consistent with the previous years. The Parkview Office Complex revenues increased slightly. The rental market remained soft during the fiscal year; the tenant mix remained unchanged. Operating expenses for business-type activities decreased by $0.12 million from $9.69 million to $9.57 million. The decrease is recognized from the Desert Willow Golf Resort costs which decreased their overall costs by $62,702 with the remaining decrease recognized by Parkview depreciation costs which were $76,079 less than the prior year. Both Desert Willow and the City continued to implement effective and efficient methods to control costs without impacting service. 2019 2018 General government ($18.51) ($13.82) Housing and redevelopment (0.69) (1.96) Public safety (22.38) (25.62) Parks, recreation and culture (4.20) (4.97) Public works (3.50) (9.59) Interest on long term debt (0.23) (0.26) Total ($49.51) ($56.22) 38% 1%44% 8% 8%1% 2019 Governmental Activities Net (Expense) Revenue 25% 4% 44% 9% 18%0% 2018 Governmental Activities Net (Expense) Revenue General government Housing and redevelopment Public safety Parks, recreation & culture Public works Interest on long term debt 12 THE CITY’S FUNDS On page 22, the governmental funds balance sheet is shown. The combined fund balance of $306.50 million increased 2.19 percent from $299.93 million. This total includes the General Fund balance of $93.04 million, which increased by $2.67 million from the prior year. The City’s General Fund balance has a nonspendable balance of $10.56 million, committed balance of $63.20 million, assigned balance of $15.96 million, and $3.32 million of unassigned fund balance. The change in the General Fund’s balance was due to growth in sales tax, transient occupancy tax and investment earnings. Other major fund balance changes are noted below:  The Prop A Fire Tax Special Revenue Fund: The fund balance increased $0.60 million. The City transferred $2.30 million to cover future shortage.  The Housing Asset Fund: The fund balance had a decrease of $0.46 million. The decrease was the result of establishing an allowance of $1.20 million for advances owed by the Successor Agency (see Note 21).  Measure A Special Revenue Fund: the fund balance increased from $21.97 million to $25.12 million. Projects budgeted at $28.11 million are at their early stage which resulted in non- spending of available funds.  Housing Authority Fund: This fund had a minor decrease of $0.04 million from $19.98 million to $19.94 million.  Capital Properties Fund: The fund balance increased $0.32 million from $68.75 million to $69.07 million. The increase was due to the investment earnings exceeding capital project expenditures. More detailed information about the combined fund balance reserves is presented in Note 12 to the financial statements. General Fund Budgetary Highlights Based upon recommendations from the staff, the City Council revised the budget several times during the year. Adjustments were made on a monthly basis as City staff requested additional appropriations to cover the cost of projects that either had change orders for additional work, or were underestimated. At mid-year, no adjustments were requested as department budgets met current demands. At year-end, budgets were adjusted for unanticipated approved expenditures. All amendments that either increase or decrease appropriations are approved by the City Council. For the City’s General Fund, the actual ending revenues of $65.66 million were $0.35 million more than the final budgeted revenues of $65.31 million. Sales and transient occupancy taxes continue to be the top two revenue generators for the City, totaling $38.69 million or 58.92 percent of the total General Fund actual revenues. The General Fund actual ending expenditures of $62.98 million were $2.02 million less than the final budget of $65 million. There were changes in the original budget compared to the final budget during the year. The original expenditure budget was $58.01 million compared to the final budget of $65 million, a $6.99 million increase. During the year, the following represent the major change between original budget and final budget; $2 million was appropriated to reduce the City’s pension liability, $2.67 million was appropriated for land acquisition, and $1 million appropriated to reduce the City’s OPEB liability. 13 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets At the end of 2019, the City had $500.40 million invested in a broad range of capital assets including land, streets, bridges, drainage systems, traffic lights, parks, buildings, artwork, vehicles, golf courses and equipment (See Table 3). This amount represents a net decrease (including additions and deductions) of $8.38 million over the prior year, due mainly to depreciation. 2019 2018 2019 2018 2019 2018 Land 81.96$ 79.29$ 53.31$ 53.31$ 135.27$ 132.60$ Construction-in-progress 2.15 2.51 - - 2.15 2.51 Buildings and improvements other than buildings 94.47 99.92 15.32 15.67 109.79 115.59 Machinery and equipment 2.57 2.70 2.04 1.62 4.61 4.32 Infrastructure & right-of-way 248.58 253.76 - - 248.58 253.76 TOTALS 429.73$ 438.18$ 70.67$ 70.60$ 500.40$ 508.78$ TABLE 3 CAPITAL ASSETS AT YEAR-END For the years ended June 30, 2019 and 2018 TotalActivities Business-TypeGovernmental Activities (NET OF DEPRECIATION, IN MILLIONS) ‐ 100 200 300 400 500 600 700 2019 2018 2019 2018 Governmental Activities Business‐Type Activities Do l l a r s i n m i l l i o n s Table 3 ‐ Graph Capital Assets at Year‐End (Net of Depreciation in Millions) Land Construction‐in‐Progress Buildings & Improvements other than buildings Equipment Infrastructure & right‐of‐way Totals 14 This year’s major additions included (in millions): Street improvements $ 0.13 Park and recreation improvements 0.39 Equipment and software purchases 0.66 Land acquisitions 2.67 $ 3.85 The City’s fiscal year 2020 adopted capital budget calls for an additional $22.14 million to be spent, plus continuing capital projects of $66.15 million from prior year, with the majority being spent on streets, infrastructure, buildings, parks and golf course improvements. Projects will be funded with existing bond proceeds or funds that have been designated by an outside party for specific use. More detailed information about the City’s capital assets is presented in Note 1f and Note 5 to the financial statements. Debt At year-end, the City’s governmental activities had $43.60 million in bonds, claims, compensated absences, OPEB liability and pension liability versus $48.49 million last year, a decrease of $4.89 million as shown in Table 4. The major decrease was the City’s pension liability that went from $38.97 million to $34.84 million, which was the result of additional payments made during the year. In addition, the City’s OPEB liability decreased from $4.12 million to $3.48 million. 2019 2018 2019 2018 2019 2018 Compensated absences payable 2.63$ 2.39$ - - 2.63$ 2.39$ Capital leases - - 1.60 1.49 1.60 1.49 Claims and judgements payable 0.58 0.36 - - 0.58 0.36 Special assessments debt with government commitment 1.31 1.36 - - 1.31 1.36 Limited Obligation Improvement bonds 0.76 1.29 - - 0.76 1.29 OPEB liability 3.48 4.12 - - 3.48 4.12 Pension liability 34.84 38.97 - - 34.84 38.97 TOTALS 43.60$ 48.49$ 1.60$ 1.49$ 45.20$ 49.98$ TABLE 4 OUTSTANDING DEBT AT YEAR-END For the years ended June 30, 2019 and 2018 TotalActivities Business-TypeGovernmental Activities (IN MILLIONS) 15 The City was able to meet its current year debt obligation in a timely manner. Bonds that were issued in prior years have been used to finance various capital projects. The City’s business-type activities debt increased $0.11 million from $1.49 million to $1.60 million. Debt in the business-type activities is for capital leasing of equipment. The City’s golf course uses leasing as an alternative to purchasing golf carts and maintenance equipment to maintain a cash flow to operate the day-to-day activities. The increase in the City’s business-type activities debt was directly related to entering a lease for new golf carts and GPS equipment in the amount of $0.74 million. The City’s business-type activities were able to meet their current year debt obligation in a timely manner. More detailed information about the City’s long-term liabilities is presented in Note 8 to the financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS In preparing the budget for fiscal year 2020, management focused three core principles: 1) maintain the level of service expected by residents, businesses, and visitors; 2) review standards of infrastructure maintenance and operation and adjust standards to provide quality City facilities including parks, roads and building in line with budget considerations; and 3) invest in infrastructure and technology to address deferred maintenance and outdated hardware/software that resulted from necessary cost-cutting measures in previous years. The following economic factors were considered by management:  Goals of the Strategic Plan as top priority.  Increase in healthcare and retirement costs.  Increase in the cost for police and fire protection services. The 2020 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. Copies of the City’s 2019-2020 Financial Plan can be obtained by contacting the City’s Finance Department or by visiting the City’s website at www.cityofpalmdesert.org. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our residents, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, please contact the Finance Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260-2578, or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perating Capital Governmental activities: General government 23,252,576$ 2,645,724$ 616,836$ 1,483,375$ Housing and redevelopment 9,067,858 8,180,354 - 196,259 Public safety 37,195,732 14,503,741 265,755 45,308 Parks, recreation and culture 8,284,914 829,557 2,633,976 622,660 Public works 14,836,332 2,762,045 6,909,830 1,668,591 Interest on long-term debt 231,228 - - - Total governmental activities 92,868,640 28,921,421 10,426,397 4,016,193 Business-type activities: Desert Willow Golf Course 8,700,514 8,743,654 - 504,217 Parkview Office Complex 874,753 1,298,066 - - Total Business-Type Activities 9,575,267 10,041,720 - 504,217 Total Primary Government 102,443,907$ 38,963,141$ 10,426,397$ 4,520,410$ Palm Desert Recreational Facilities Corp.2,769,750$ 2,869,768$ -$ -$ General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Investment earnings Miscellaneous Gain on sale of capital assets Transfers Total general revenues and transfers Change in net position Net position - beginning of year Net position - end of year Functions/Programs See Notes to Financial Statements 18 Net (Expenses) Revenues and Changes in Net Position Primary Government (18,506,641)$ -$ (18,506,641)$ -$ (691,245) - (691,245) - (22,380,928) - (22,380,928) - (4,198,721) - (4,198,721) - (3,495,866) - (3,495,866) - (231,228) - (231,228) - - 547,357 547,357 - - 423,313 423,313 - 11,905,039 - 11,905,039 - 17,476,636 - 17,476,636 - 21,434,387 - 21,434,387 - 3,078,855 - 3,078,855 - 3,170,693 181,310 3,352,003 - 1,396,514 87,365 1,483,879 - 7,452 - 7,452 - (7,530,000) - (7,530,000) - 300,000 (300,000) - - 1,734,947 939,345 2,674,292 100,018 718,588,141 74,721,640 793,309,781 (837,361) See Notes to Financial Statements 19 7+,63$*(,17(17,21$//</()7%/$1. 20 FUND FINANCIAL STATEMENTS 21 CITY OF PALM DESERT BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2019 General Pooled cash and investments 84,621,229$ 24,689,190$ 2,646,171$ 684,299$ Receivables: Accounts 1,932,214 - 372,545 - Assessments - - - - Notes 1,310,000 - - - Interest 2,872,324 - - 1,201,365 Allowance for interest on Successor Agency (118,524) - - (306,000) Loans 14,978 - - 6,419,855 Prepaid costs 1,021,418 - - 480 Deposits - 15,429,953 - - Due from other governments 4,517,893 543,124 599,348 - Due from other funds 3,344,000 - - 3,331,000 Inventories - - - - Property held for resale - - - 61,516 Due from component unit 228,000 - - - Restricted assets: Cash and investments with fiscal agent - - - 35,723,639 Advances to Successor Agency 9,236,000 - - 630,750 Allowance for Advances to Successor Agency (581,000) - - - Accounts payable 8,520,176$ 107,626$ 1,116,583$ 7,194$ Accrued liabilities 222,786 - - - Unearned revenues 3,268 15,429,953 - - Deposits payable - - - - Due to other funds 1,731,000 - - - TOTAL LIABILITIES 10,477,230 15,537,579 1,116,583 Unavailable revenue 4,878,232 - - 4,878,232 - - Nonspendable 10,559,396 - - 480 Restricted - 25,124,688 2,501,481 46,857,726 Committed 63,197,223 - - - Assigned 15,964,130 - - 3,322,321 - - Total Fund Balances 93,043,070 25,124,688 2,501,481 46,858,206 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 108,398,532$ 40,662,267$ 3,618,064$ 47,746,904$ Housing Asset Fund Prop A Fire Tax Measure A Special Revenue Funds See Notes to Financial Statements 22 CITY OF PALM DESERT BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Accounts Assessments Notes Interest Allowance for interest on Successor Agency Loans Prepaid costs Deposits Due from other governments Due from other funds Inventories Property held for resale Due from component unit Restricted assets: Cash and investments with fiscal agent Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources and Fund Balances LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES Unavailable revenue Nonspendable Restricted Committed Assigned Unassigned 17,284,042$ 19,338$ 40,059,961$ 170,004,230$ 3,932 - 697,837 3,006,528 - - 1,172,053 1,172,053 - - - 1,310,000 5 110,535 2,864,010 7,048,239 - - (1,105,476) (1,530,000) - - 2,689,160 9,123,993 188,076 - 4,633 1,214,607 - - - 15,429,953 - - 446,167 6,106,532 - - 500,000 7,175,000 - - 5,105 5,105 - - - 61,516 - - - 228,000 3,277,282 68,991,286 2,045,860 110,038,067 - - 13,419,000 23,285,750 - - (5,419,000) (6,000,000) 115,394$ 50,420$ 558,452$ 10,475,845$ 161,434 - 6,897 391,117 5,984 - 334,654 15,773,859 530,763 - 167,021 697,784 - - 3,444,000 5,175,000 813,575 50,420 4,511,024 - - 2,903,317 - - 2,903,317 188,076 - 4,633 10,752,585 7,876,198 69,070,739 24,349,901 175,780,733 11,875,488 - 4,372,164 79,444,875 - - 21,238,271 - - - 19,939,762 69,070,739 49,964,969 306,502,915 20,753,337$ 69,121,159$ 57,379,310$ 347,679,573$ Other Governmental Funds Total Governmental Funds Capital Properties Housing Authority See Notes to Financial Statements 23 7+,63$*(,17(17,21$//</()7%/$1. 24 CITY OF PALM DESERT RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30, 2019 Total fund balance for governmental funds 306,502,915$ Net Position of Governmental Activities 720,323,088$ See Notes to Financial Statements 25 CITY OF PALM DESERT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Taxes 56,642,570$ 2,928,433$ 6,036,130$ - - 2,730,402 1,204,652 - - 1,565,278 400,637 1,151,283 215,854 - - 1,880,072 - 2,121,193 2,672,643 650,593 36,209 267,205 - - 273,436 - 187,673 TOTAL REVENUES 64,721,710 3,979,663 12,262,890 938,812 EXPENDITURES: 22,649,196 - - 22,803,115 - 13,945,153 3,915,708 - - 2,946,581 - 11,323 TOTAL EXPENDITURES 57,900,932 824,994 13,956,476 195,902 OTHER FINANCING SOURCES (USES): 937,202 - 2,300,000 (4,620,658) - - TOTAL OTHER FINANCING SOURCES (USES)(3,683,456) - 2,300,000 - SPECIAL ITEM (NOTE 21)(464,800) - - (1,200,000) FUND BALANCES - BEGINNING OF YEAR 90,370,548 21,970,019 1,895,067 47,315,296 FUND BALANCES - END OF YEAR 93,043,070$ 25,124,688$ 2,501,481$ 46,858,206$ Special Revenue Funds Housing Asset Fund Prop A Fire Tax Measure A See Notes to Financial Statements 26 CITY OF PALM DESERT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 REVENUES: Taxes Special assessments collected Licenses and permits Intergovernmental revenues Rental income Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES EXPENDITURES: Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) SPECIAL ITEM (NOTE 21) NET CHANGE IN FUND BALANCES FUND BALANCES - BEGINNING OF YEAR FUND BALANCES - END OF YEAR - -$ 1,495,052$ $ - - 1,217,755 - - 212,177 156,385 - 2,920,569 6,684,062 - - - - 1,222,020 422,030 1,267,229 1,208,866 - - 6,229 - - 2,401,546 7,262,477 1,267,229 10,684,214 101,116,995 - 2,000 1,618,350 - - 153,015 - - 2,581,683 20,912 36,405 381,290 6,822,020 951,238 7,476,692 88,128,254 - - 2,082,246 (478,698) - (637,202) (478,698) - 1,445,044 (417,110) - - (4,335,200) (6,000,000) 19,939,762$ 69,070,739$ 49,964,969$ 306,502,915$ Capital Properties Housing Authority Other Governmental Funds Total Governmental Funds See Notes to Financial Statements 27 CITY OF PALM DESERT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2019 Net change in fund balances - total governmental funds 6,571,631$ 12,822 Net change in claims and judgments for the current period (224,202) 2,336,946 1,729,024 Change in Net Position of Governmental Activities 1,734,947$ See Notes to Financial Statements 28 CITY OF PALM DESERT STATEMENT OF NET POSITION PROPRIETARY FUNDS Major Fund Other Fund CURRENT ASSETS: Cash and investments 3,327,774 $ 5,315,475 $ 8,643,249$ 11,414,940 $ Receivables: Accounts 64,069 83,650 147,719 - Prepaid costs 60,427 - 60,427 25,118 Due from other governments - - - 25,000 Inventories 190,257 - 190,257 - Due from component unit (PDRFC)692,718 - 692,718 - CAPITAL ASSETS: Nondepreciable 53,304,965 - 53,304,965 32,414 Depreciable, net 11,078,701 6,282,462 17,361,163 CAPITAL ASSETS, NET 64,383,666 6,282,462 70,666,128 TOTAL ASSETS 68,718,911$ 11,681,587$ 80,400,498$ $ CURRENT LIABILITIES: Accounts payable 778,160$ 31,609$ 809,769$ 14,340$ Accrued liabilities 63,871 - 63,871 - Unearned revenues 237,104 8,910 246,014 - Deposits payable - 24,465 24,465 - Due to other funds 2,000,000 - 2,000,000 - Compensated absences - - - 300,000 Capital leases 450,382 - 450,382 - NONCURRENT LIABILITIES: Compensated absences - - - 2,328,215 Capital leases 1,145,012 - 1,145,012 - TOTAL LIABILITIES 4,674,529 64,984 4,739,513 Net investment in capital assets 62,788,272 6,282,462 69,070,734 1,947,093 Unrestricted 1,256,110 5,334,141 6,590,251 Total Net Position 64,044,382 11,616,603 75,660,985 See Notes to Financial Statements 29 CITY OF PALM DESERT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS Major Fund Other Fund Fees and rentals 7,432,817$ 1,298,066$ 8,730,883$ -$ Miscellaneous 87,242 123 87,365 - Merchandise sales 1,310,837 - 1,310,837 - General and administrative 2,333,512 201,303 2,534,815 272,430 Cost of merchandise 522,103 - 522,103 - Maintenance and operations 4,654,834 386,727 5,041,561 349,788 Depreciation and amortization 1,057,971 286,723 1,344,694 469,027 OPERATING INCOME (LOSS)262,476 423,436 685,912 (1,091,245) NONOPERATING REVENUES (EXPENSES) Intergovernmental - - - 25,000 Interest revenue 33,429 147,881 181,310 297,664 Interest expense (132,094) - (132,094) - Gain on disposal of capital assets - - - 7,452 INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS & TRANSFERS 163,811 571,317 735,128 (761,129) CAPITAL CONTRIBUTIONS 504,217 - 504,217 - TRANSFERS IN - - - 717,110 TRANSFERS OUT - (300,000) (300,000) - CHANGE IN NET POSITION 668,028 271,317 939,345 (44,019) NET POSITION - BEGINNING OF YEAR 63,376,354 11,345,286 74,721,640 NET POSITION - END OF YEAR 64,044,382$ 11,616,603$ 75,660,985$ 10,769,596$ Parkview Office Complex Business-Type Activities - Enterprise Funds Total Enterprise Funds Governmental Activities - Internal Service Funds Desert Willow Golf Course See Notes to Financial Statements 30 CITY OF PALM DESERT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Receipts from customers 8,838,625$ 1,265,392$ 10,104,017$ (7,435,018) (589,039) (8,024,057) - - - NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,403,607 676,353 2,079,960 Cash received from other funds - - - Cash paid to other funds - (300,000) (300,000) NET CASH PROVIDED (USED) BY NONCAPITAL AND RELATED FINANCING ACTIVITIES - (300,000) (300,000) Purchases of capital assets (143,923) (18,606) (162,529) Principal paid on leases (636,885) - (636,885) Interest paid on leases (132,094) - (132,094) Proceeds from sales of capital assets - - - NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (912,902) (18,606) (931,508) Interest and dividends 33,429 147,881 181,310 Net Cash Provided (Used) by Investing Activities 33,429 147,881 181,310 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 524,134 505,628 1,029,762 CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 2,803,640 4,809,847 7,613,487 CASH AND CASH EQUIVALENTS - END OF YEAR 3,327,774$ 5,315,475$ 8,643,249$ 11,414,940$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) 262,476$ 423,436$ 685,912$ $ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization 1,057,971 286,723 1,344,694 (15,950) (32,797) (48,747) 33,845 174 34,019 - - - 9,484 - 9,484 (83,771) - (83,771) 32,102 2,181 34,283 - (3,364) (3,364) 107,450 - 107,450 - - - Total Adjustments 1,141,131 252,917 1,394,048 NET CASH PROVIDED (USED) Capital Contributions 504,217$ -$ 504,217$ -$ Capital Lease 738,949 - 738,949 - See Notes to Financial Statements 31 CITY OF PALM DESERT STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2019 Private-Purpose Trust Fund Agency Funds Assets: Pooled cash and investments 12,973,591$ $ 52,002,794 20,615 - 90,380 4,722,788 - Total Assets 69,810,168$ 69,755,973 Deferred Outflows of Resources: Total Deferred Outflows of Resources 48,641 Liabilities: -$ 69,810,168 - - - - - Total Liabilities 69,810,168$ 263,193,940 Deferred Inflows of Resources: Total Deferred Inflows or Resources 565,770 Net Position: Total Net Position (193,955,096)$ Successor Agency to the Palm Desert Redevelopment Agency Private- Purpose Trust Fund See Notes to Financial Statements 32 CITY OF PALM DESERT STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2019 ADDITIONS: Taxes 31,389,409$ Investment income 230,527 Other 334,524 TOTAL ADDITIONS 31,954,460 DEDUCTIONS Housing and development 4,728,308 Interest 8,990,020 Depreciation 21,659 Loss on sale of capital assets 7,275,415 TOTAL DEDUCTIONS 21,015,402 Special item (Note 21)7,530,000 CHANGES IN NET POSITION 18,469,058 NET POSITION - BEGINNING OF YEAR (212,424,154) NET 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SURGXFW RI ILIW\ SHUFHQW RISDLG WUDQVLHQW RFFXSDQF\ WD[ UHYHQXHVSDLGWRWKH&LW\E\WKHKRWHO)RUWKHILVFDO\HDUHQGHG-XQHWKH&LW\DEDWHG WD[LQFUHPHQWWRWDOLQJXQGHUWKLVDJUHHPHQW 96 REQUIRED SUPPLEMENTARY INFORMATION 97 CITY OF PALM DESERT MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 2018 2019 TOTAL PENSION LIABILITY Service Cost 2,156,598$ 2,125,437$ 2,076,964$ 2,204,265$ 2,196,462$ Interest 7,991,591 8,223,320 8,327,823 8,558,529 8,797,867 Difference between Expected and Actual Experience - (2,378,254) (4,259,317) (1,895,482) (594,882) Changes in Assumptions - (2,091,348) - 7,367,723 (1,148,708) Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) (5,934,338) Net Change in Total Pension Liability 5,298,869 1,282,130 1,344,218 10,833,504 3,316,401 Total Pension Liability - Beginning 107,900,900 113,199,769 114,481,899 115,826,117 126,659,621 Total Pension Liability - Ending (a)113,199,769$ 114,481,899$ 115,826,117$ 126,659,621$ 129,976,022$ PLAN FIDUCIARY NET POSITION Contributions - Employer 3,320,450$ 4,065,411$ 4,257,322$ 5,303,371$ 5,407,412$ Contributions - Employee 995,504 878,171 870,981 828,467 812,447 Net Investment Income 11,290,314 1,682,498 448,184 8,800,663 7,555,653 Benefit Payments, Including Refunds of Employee Contributions (4,849,320) (4,597,025) (4,801,252) (5,401,531) (5,934,338) Administrative Expense - (87,279) (47,263) (115,573) (136,651) Net Plan to Plan Resource Movement - - - - (222) Other Miscellaneous Income/(Expense)- - - - (259,502) Net Change in Fiduciary Net Position 10,756,948 1,941,776 727,972 9,415,397 7,444,799 Plan Fiduciary Net Position - Beginning 64,851,550 75,608,498 77,550,274 78,278,246 87,693,643 Plan Fiduciary Net Position - Ending (b)75,608,498$ 77,550,274$ 78,278,246$ 87,693,643$ 95,138,442$ Plan Net Pension Liability/(Assets) - Ending (a) - (b)37,591,271$ 36,931,625$ 37,547,871$ 38,965,978$ 34,837,580$ 66.79%67.74%67.58% 69.24% 338.33%322.59%331.03% 364.71% Changes of Assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date.This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only five years are shown. See Notes to Required Supplementary Information 98 CITY OF PALM DESERT MISCELLANEOUS PLAN - AGENT MULTIPLE-EMPLOYER SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 2018 2019 Actuarially Determined Contribution 3,393,171$ 3,585,082$ 3,550,127$ 4,219,764$ $ (4,065,411) (4,257,322) (5,303,371) (5,396,908) (672,240)$ (672,240)$ (1,753,244)$ (1,177,144)$ $ 11,448,621$ 11,342,713$ 10,684,238$ 12,033,485$ $ 35.51%37.53% 49.64% 44.85% Note to Schedule: Investment rate of return Retirement age Mortality See Notes to Required Supplementary Information 99 CITY OF PALM DESERT SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 2019 Total OPEB Liability Service cost 346,417$ 357,675$ Interest on the total OPEB liability 1,144,106 1,199,747 Benefit payments (653,187) (696,845) Net change in total OPEB liability 837,336 860,577 Total OPEB liability - beginning 16,980,271 17,817,607 Total OPEB liability - ending (a)17,817,607$ 18,678,184$ Plan Fiduciary Net Position Contribution - employer 1,255,960$ 1,381,501$ Net investment income 902,331 843,319 Benefit payments (653,187) (696,845) Administrative expense (6,541) (7,371) Other Expenses - (18,115) Net change in plan fiduciary net position 1,498,563 1,502,489 Plan fiduciary net position - beginning 12,198,460 13,697,023 Plan fiduciary net position - ending (b)13,697,023$ 15,199,512$ Net OPEB Liability/(Assets) - ending (a) - (b)4,120,584$ 3,478,672$ Plan fiduciary net position as a percentage of the total OPEB liability 76.87% 81.38% Covered-Employee payroll 10,584,400$ 10,749,431$ Net OPEB liability as a percentage of covered-employee payroll 38.93% 32.36% (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. See Notes to Required Supplementary Information 100 CITY OF PALM DESERT SCHEDULE OF CONTRIBUTIONS - OPEB AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 2019 520,620$ 455,021$ (1,217,465) (2,211,778) (696,845)$ (1,756,757)$ 10,741,786$ 10,546,052$ 11.33%20.97% Notes to Schedule: Methods and assumptions used to determine contributions: Actuarial Cost Method Amortization Valuation Method/Period Asset Valuation Method Market value of assets Inflation 2.75% Payroll Growth 3.25% per annum, in aggregate Investment Rate of Return 6.73% per annum Healthcare cost-trend rates Retirement Age Mortality Change Since the Prior Valuation: None. The beginning of measurement period liabilities were developed based on a roll back of the July 2017 valuation results. This methodology produces no liability gains or losses between the beginning of the measurement period and the measurement date. Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered-Employee payroll Contributions as a percentage of covered-employee payroll Mortality rates used were those published by CalPERS, adjusted to back out 20 years of Scale BB to central year 2008, then projected using the MacLeod Watts Scale 2017 applied generationally. (1)Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2019 were from the July 1, 2017 actuarial valuation. Entry Age Normal Level percent of payroll over a closed rolling 30-year period 7.50%; Medical plan premiums and claims costs by age are assumed to increase once each year. The required PEMHCA minimum employer contribution (MEC) is assumed to increase annually by 4.5%. Tier 1 employees - 2.50% @55 and Tier 2 employees - 2.00% @62 The probabilities of Retirement are based on the 2014 CalPERS Experience Study for the period of 1997 to 2011. See Notes to Required Supplementary Information 101 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 90,370,548$ 90,370,548$ 90,370,548$ -$ Resources (Inflows): Taxes Property taxes 7,163,171 7,433,171 6,855,643 (577,528) Property transfer tax 600,000 600,000 727,978 127,978 Property tax in lieu 4,000,000 4,000,000 4,218,564 218,564 Timeshare mitigation fee 1,615,000 1,615,000 1,678,375 63,375 Sales tax 18,500,000 21,400,000 21,434,387 34,387 Business license tax 1,275,000 1,275,000 1,216,712 (58,288) Job valuation fees 12,000 12,000 27,670 15,670 Transient occupancy tax 14,920,000 17,250,000 17,250,843 843 Franchises 3,150,000 3,150,000 3,078,855 (71,145) Penalties and interest on taxes 35,000 35,000 153,543 118,543 Total Taxes 51,270,171 56,770,171 56,642,570 (127,601) Licenses and Permits Building permits 370,000 1,050,000 1,052,911 2,911 Grading permits 20,000 20,000 11,160 (8,840) Encroachment permits 90,000 90,000 108,321 18,321 Miscellaneous permits 1,500 1,500 1,795 295 Business regulatory permits 35,000 35,000 27,635 (7,365) Golf cart permits - - 2,280 2,280 Valet parking permits 500 500 550 50 Total Licenses and Permits 517,000 1,197,000 1,204,652 7,652 Intergovernmental State mandate cost - - 57,393 57,393 Motor vehicle in-lieu fees 21,000 21,000 25,329 4,329 Monthly parking bail 15,000 15,000 14,205 (795) Reimbursement RDA costs 750,000 750,000 829,498 79,498 Other reimbursements 905,000 905,000 638,853 (266,147) Total Intergovernmental 1,691,000 1,691,000 1,565,278 (125,722) Rental income 166,000 166,000 215,854 49,854 Charges for Services Subdivision fees 200,000 400,000 400,926 926 Zoning fees 175,000 175,000 75,850 (99,150) Plan check fees 271,000 611,000 619,763 8,763 Sale of maps and publications 3,500 3,500 3,604 104 Microfilm fees 5,000 5,000 7,996 2,996 Vehicle impact fee 480,000 617,000 617,023 23 Other fees 125,500 125,500 154,910 29,410 Total Charges for Services 1,260,000 1,937,000 1,880,072 (56,928) Investment Earnings Interest income 675,000 1,775,000 2,463,258 688,258 Interest on notes receivable 175,000 175,000 209,385 34,385 Total investment Earnings 850,000 1,950,000 2,672,643 722,643 Fines and Forfeitures Vehicle code fines 20,000 20,000 38,254 18,254 Municipal court fines 20,000 152,000 152,039 39 VICR fees 75,000 75,000 76,912 1,912 Total Fines and Forfeitures 115,000 247,000 267,205 20,205 Miscellaneous Code compliance 13,000 13,000 106,600 93,600 Strong motion instrument fee - - 35 35 Special investigation fee 3,500 3,500 - (3,500) Certificate of compliance fee 1,675 1,675 375 (1,300) Nuisance abatement tax 30,000 30,000 28,326 (1,674) Abandoned vehicle abatement 50,000 50,000 37,496 (12,504) Fire inspection service 225,000 225,000 666 (224,334) Other revenue 90,000 90,000 99,938 9,938 Total Miscellaneous 413,175 413,175 273,436 (139,739) Transfers in 1,730,050 940,050 937,202 (2,848) Amounts Available for Appropriations 148,382,944 155,681,944 156,029,460 347,516 See Notes to Required Supplementary Information 102 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Charges to Appropriation (Outflow): General Government City Council 281,205 281,205 249,690 31,515 City Clerk 884,220 884,220 874,941 9,279 Legislative Advocacy 36,200 36,200 36,180 20 Elections 75,000 82,100 82,036 64 City Attorney 267,800 271,100 271,006 94 Legal Special Services 280,000 349,200 349,143 57 City Manager 760,880 760,880 647,471 113,409 Community Services 451,145 92,102 87,390 4,712 Finance 1,711,250 1,727,650 1,727,485 165 Independent Audit 90,000 97,390 77,996 19,394 Human Resources 901,485 915,160 901,643 13,517 General Services 3,856,800 5,731,855 5,700,555 31,300 Information Technology 1,034,847 1,045,041 976,248 68,793 Unemployment Insurance 10,000 10,000 - 10,000 Insurance 698,000 660,000 539,297 120,703 Retiree Funding - 3,710,406 3,710,406 - Contributions to other Agencies 608,500 568,450 545,725 22,725 Community Promotions 1,245,000 1,249,700 1,249,674 26 Marketing 1,413,230 1,421,894 1,181,029 240,865 Visitors Information Center 181,190 190,290 190,241 49 Economic Development Center 777,150 783,596 752,128 31,468 Planning & Community Development 2,316,950 2,499,450 2,498,912 538 Total General Government 17,880,852 23,367,889 22,649,196 718,693 Public Safety Police Services 21,933,600 20,433,600 20,375,047 58,553 Animal Regulation 245,000 245,000 221,008 23,992 Traffic Safety 253,600 261,021 219,770 41,251 Building and Safety 1,715,500 1,828,416 1,828,083 333 Community Safety 404,000 404,000 159,207 244,793 Total Public Safety 24,551,700 23,172,037 22,803,115 368,922 Parks, Recreation and Culture Civic Center Park 1,187,860 1,219,073 1,191,822 27,251 Park Maintenance 1,025,200 1,031,248 844,697 186,551 Landscaping Service 2,001,500 1,969,316 1,802,109 167,207 Civic Center Park - Improvement 224,000 474,993 77,080 397,913 Total Parks, Recreation and Culture 4,438,560 4,694,630 3,915,708 778,922 Public Works Administration 2,499,600 2,178,998 2,149,715 29,283 Street Maintenance 2,216,850 2,216,850 2,185,648 31,202 Curb & Gutter 25,000 10,000 - 10,000 Parking Lot 50,000 50,000 11,316 38,684 Corporate Yard 81,500 105,800 105,770 30 Auto Fleet / Equipment 263,000 264,065 241,972 22,093 Public Bldg - Opr/Maint.715,300 715,300 712,753 2,547 Portola Community Center 75,000 133,000 132,936 64 Storm Water Permit 60,000 60,000 46,222 13,778 Total Public Works 5,986,250 5,734,013 5,586,332 147,681 Capital outlay - 2,948,000 2,946,581 1,419 Transfers out 5,152,251 4,620,845 4,620,658 187 Special Item - 464,800 464,800 - Total Charges to Appropriations 58,009,613 65,002,214 62,986,390 2,015,824 Budgetary Fund Balance, June 30 90,373,331$ 90,679,730$ 93,043,070$ 2,363,340$ See Notes to Required Supplementary Information 103 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE MEASURE A YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 21,970,019$ 21,970,019$ 21,970,019$ -$ Resources (Inflows): Taxes 2,798,000 2,798,000 2,928,433 130,433 Intergovernmental - - 400,637 400,637 Investment earnings 100,000 100,000 650,593 550,593 Amounts Available for Appropriations 24,868,019 24,868,019 25,949,682 1,081,663 Charges to Appropriation (Outflow): Public works 3,050,000 3,573,340 824,994 2,748,346 Capital outlay 400,000 24,539,081 - 24,539,081 Total Charges to Appropriations 3,450,000 28,112,421 824,994 27,287,427 Budgetary Fund Balance, June 30 21,418,019$ (3,244,402)$ 25,124,688$ 28,369,090$ See Notes to Required Supplementary Information 104 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PROP A FIRE TAX YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,895,067$ 1,895,067$ 1,895,067$ -$ Resources (Inflows): Taxes 5,909,280 5,909,280 6,036,130 126,850 Assessments 2,115,800 2,115,800 2,730,402 614,602 Intergovernmental 1,050,000 1,050,000 1,151,283 101,283 Charges for services 1,200,000 1,200,000 2,121,193 921,193 Investment earnings 10,000 10,000 36,209 26,209 Miscellaneous 15,500 15,500 187,673 172,173 Transfers in 2,300,000 2,300,000 2,300,000 - Amounts Available for Appropriations 14,495,647 14,495,647 16,457,957 Public safety 13,105,600 13,911,495 13,945,153 (33,658) Capital outlay 50,000 50,000 11,323 38,677 See Notes to Required Supplementary Information 105 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING ASSET FUND YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 47,315,296$ 47,315,296$ 47,315,296$ -$ Resources (Inflows): Investment earnings 180,000 180,000 908,527 728,527 Miscellaneous - - 30,285 30,285 Amounts Available for Appropriations 47,495,296 47,495,296 48,254,108 758,812 Charges to Appropriation (Outflow): Housing and redevelopment 449,800 170,800 195,902 (25,102) Capital outlay 25,500 25,500 - 25,500 Special item - 1,200,000 1,200,000 - Total Charges to Appropriations 475,300 1,396,300 1,395,902 398 Budgetary Fund Balance, June 30 47,019,996$ 46,098,996$ 46,858,206$ 759,210$ See Notes to Required Supplementary Information 106 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITY YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 19,978,003$ 19,978,003$ 19,978,003$ -$ Resources (Inflows): Rents 6,874,666 5,999,068 6,684,062 684,994 Intergovernmental - 875,598 156,385 (719,213) Investment earnings 100,000 100,000 422,030 322,030 Amounts Available for Appropriations 26,952,669 26,952,669 27,240,480 287,811 Charges to Appropriation (Outflow): Housing and redevelopment 10,741,934 12,741,934 6,801,108 5,940,826 Capital outlay - 1,772,248 20,912 1,751,336 Transfers out 544,170 544,170 478,698 65,472 Total Charges to Appropriations 11,286,104 15,058,352 7,300,718 7,757,634 Budgetary Fund Balance, June 30 15,666,565$ 11,894,317$ 19,939,762$ 8,045,445$ See Notes to Required Supplementary Information 107 CITY OF PALM DESERT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2019 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 effective budgetary control is achieved through debt indenture provisions. The following funds did not have legally adopted budgets during the current fiscal year: Other Governmental Funds Library Assessment District No. 94-3 Merano Silver Spur Ranch Highlands Undergrounding Assessment 29 108 OTHER GOVERNMENTAL FUNDS COMBINING STATEMENTS 109 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments 24,127,978$ 15,755,111$ 176,872$ 40,059,961$ Receivables: Accounts 697,737 100 - 697,837 Assessments - - 1,172,053 1,172,053 Loans 2,689,160 - - 2,689,160 Interest 232,680 2,631,330 - 2,864,010 Allowance for interest on Successor Agency (133,416) (972,060) - (1,105,476) Prepaid costs 33 4,600 - 4,633 Due from other governments 441,271 - 4,896 446,167 Due from other funds - 500,000 - 500,000 Inventories 5,105 - - 5,105 Restricted assets: Cash and investments with fiscal agents - 2,045,860 - 2,045,860 Advances to Successor Agency 654,000 12,765,000 - 13,419,000 Allowance for Advances to Successor Agency (654,000) (4,765,000) - (5,419,000) TOTAL ASSETS 28,060,548$ 27,964,941$ 1,353,821$ 57,379,310$ Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable 432,598$ 125,854$ -$ 558,452$ Accrued liabilities 6,897 - - 6,897 Unearned revenues 271,613 63,041 - 334,654 Deposits payable 33,495 24,000 109,526 167,021 Due to other funds 1,844,000 1,600,000 - 3,444,000 TOTAL LIABILITIES 2,588,603 1,812,895 109,526 4,511,024 DEFERRED INFLOWS OF RESOURCES: Unavailable revenues 99,264 1,632,000 1,172,053 2,903,317 Total Deferred Inflows of Resources 99,264 1,632,000 1,172,053 2,903,317 FUND BALANCES: Nonspendable: Prepaid costs 33 4,600 - 4,633 Restricted for: Public safety 1,590,742 - - 1,590,742 Capital Projects - 2,059,480 - 2,059,480 Debt service - - 72,242 72,242 Street related purposes 5,540,593 - - 5,540,593 Low income housing 3,026,646 - - 3,026,646 Public facilities 4,401,769 - - 4,401,769 Special programs 6,440,734 1,217,695 - 7,658,429 Committed to: Aquatic center 2,134,436 - - 2,134,436 Energy loan program 2,237,728 - - 2,237,728 Assigned to: Capital projects - 8,893,084 - 8,893,084 Property acquisition - 420,387 - 420,387 Public facilities - 9,117,365 - 9,117,365 Special programs - 670,576 - 670,576 Street related purposes - 2,136,859 - TOTAL FUND BALANCES 25,372,681 24,520,046 72,242 49,964,969 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 28,060,548$ 27,964,941$ 1,353,821$ 57,379,310$ Special Revenue Funds Total Other Governmental Funds Debt Service Fund Capital Projects Funds 110 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS Taxes 1,495,052$ -$ -$ 1,495,052$ Special assessments collected 1,103,533 - 114,222 1,217,755 Licenses and permits - 212,177 - 212,177 Intergovernmental revenues 2,817,715 102,854 - 2,920,569 Charges for services 1,222,020 - - 1,222,020 Investment earnings 735,251 469,240 4,375 1,208,866 Fines and forfeitures 6,229 - - 6,229 Miscellaneous 8,189 2,393,357 - 2,401,546 Current: General government 816,201 791,321 10,828 1,618,350 Public safety 97,386 55,629 - 153,015 Parks, recreation and culture 1,563,298 1,018,385 - 2,581,683 Public works 1,245,538 158,657 - 1,404,195 Housing and redevelopment 507,109 - - 507,109 Capital outlay 243,365 137,925 - 381,290 Debt service: Principal retirement 529,000 - 58,000 587,000 Interest and fiscal charges 175,155 - 68,895 244,050 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,210,937 1,015,711 (19,126) 3,207,522 OTHER FINANCING SOURCES (USES) Transfers in 1,282,246 800,000 - 2,082,246 Transfers out (480,958) (156,244) - (637,202) NET CHANGE IN FUND BALANCES 2,489,025 (2,152,533) (19,126) 317,366 FUND BALANCES - BEGINNING OF YEAR 22,883,656 26,672,579 91,368 49,647,603 111 7+,63$*(,17(17,21$//</()7%/$1. 112 27+(5*29(510(17$/)81'663(&,$/5(9(18( 6SHFLDO 5HYHQXH )XQGV DUH XVHG WR DFFRXQW IRU SURFHHGV RI VSHFLILF UHYHQXH VRXUFHV RWKHU WKDQ 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UHFHLSWVRISURSHUW\WD[HVDQGVHUYLFHIHHVOHYLHGWRWKHSURSHUW\RZQHUVLQWKHYDULRXVODQGVFDSLQJDQG OLJKWLQJGLVWULFWVZKLFKZHUHIRUPHGWRSURYLGHODQGVFDSLQJDQGVWUHHWOLJKWLQJPDLQWHQDQFH,QGLYLGXDO ODQGVFDSLQJDQGOLJKWLQJIXQGVDUHVHWXSIRU'LVWULFWV1RWKURXJK )RUPHU 5'$ /RZ ,QFRPH +RXVLQJ )XQG ± 7KLV IXQG LV XVHG WR DFFRXQW IRU WKH PDQDJHPHQW DQG RSHUDWLRQRIWKH&LW\¶VKRXVLQJDVVHWV 114 7+,63$*(,17(17,21$//</()7%/$1. 115 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments -$ 3,167,010$ 3,167,970$ 38,817$ Receivables: Accounts - - - 500 Loans - - - - Interest - - - - Allowance for interest on Successor Agency - - - - Prepaid costs - - - - Due from other governments 307 259,442 - 166,104 Inventories - - - - Advances to Successor Agency - - - - Allowance for Advances to Successor Agency - - - - TOTAL ASSETS 307$ 3,426,452$ 3,167,970$ 205,421$ Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable -$ -$ 316$ 166,104$ Accrued liabilities - - - - Unearned revenues - - 141,008 - Deposits payable - - - - Due to other funds - - - - TOTAL LIABILITIES - - 141,324 Unavailable revenues - - - - Nonspendable: Prepaid costs - - - - Public safety - - - - Street related purposes 307 3,426,452 - - Low income housing - - 3,026,646 - Public facilities - - - - Special programs - - - 39,317 Aquatic center - - - - Energy loan program - - - - TOTAL FUND BALANCES 307 3,426,452 3,026,646 TOTAL LIABILITIES, DEFERRED INFLOWS 116 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Accounts Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES Unavailable revenues Nonspendable: Prepaid costs Public safety Street related purposes Low income housing Public facilities Special programs Aquatic center Energy loan program TOTAL FUND BALANCES 1,396,599$ 91,196$ 1,342,716$ 1,617,656$ - - - - - - - - - - 133,416 - - - (133,416) - - - - - - - - - - - - - - - 654,000 - - - (654,000) - -$ 6,917$ -$ -$ - - - - - 73,471 - - - - - - - - - - - 80,388 - - - - - - - - - - 10,808 - - - - - 1,617,656 - - - - 1,396,599 - 1,342,716 - - - - - - - - - - - - - 1,396,599 10,808 1,342,716 117 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Accounts Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES Unavailable revenues Nonspendable: Prepaid costs Public safety Street related purposes Low income housing Public facilities Special programs Aquatic center Energy loan program TOTAL FUND BALANCES 1,664,030$ 498,038$ 1,153,479$ 2,625,358$ - - - 65,918 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,576$ 1,860$ -$ 39,632$ - - - - - - - 26,030 - - - - - - - - 1,576 1,860 - - - - - - - - - - - 1,153,479 - - 496,178 - - - - - - 1,662,454 - - - - - - 2,625,614 - - - - - - - - 1,662,454 496,178 1,153,479 118 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Accounts Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES Unavailable revenues Nonspendable: Prepaid costs Public safety Street related purposes Low income housing Public facilities Special programs Aquatic center Energy loan program TOTAL FUND BALANCES 1,392,568$ 133,206$ 1,846,324$ 301,150$ - 17,744 454,775 158,800 2,689,160 - - - 99,264 - - - - - - - - - - - - - - - - - 5,105 - - - - - - - - - -$ 13,308$ 140,664$ -$ - - - - - - 31,104 - - - - 33,495 1,844,000 - - - 1,844,000 13,308 171,768 99,264 - - - - - - - - - - 426,455 - - - - - - - - - - - - - 137,642 - - - - 2,134,436 - 2,237,728 - - - 2,237,728 137,642 2,134,436 119 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Accounts Loans Interest Allowance for interest on Successor Agency Prepaid costs Due from other governments Inventories Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS Liabilities, Deferred Inflows of Resources, and Fund Balances: LIABILITIES: Accounts payable Accrued liabilities Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES Unavailable revenues Nonspendable: Prepaid costs Public safety Street related purposes Low income housing Public facilities Special programs Aquatic center Energy loan program TOTAL FUND BALANCES 82,658$ 3,602,306$ 6,897$ 24,127,978$ - - - 697,737 - - - 2,689,160 - - - 232,680 - - - (133,416) 33 - - 33 - 15,418 - 441,271 - - - 5,105 - - - 654,000 - - - (654,000) 12,509$ 49,712$ -$ 432,598$ - - 6,897 6,897 - - - 271,613 - - - 33,495 - - - 1,844,000 12,509 49,712 6,897 - - - 99,264 33 - - 33 - - - 1,590,742 - - - 5,540,593 - - - 3,026,646 - - - 4,401,769 70,149 3,568,012 - 6,440,734 - - - 2,134,436 - - - 2,237,728 70,182 3,568,012 - 120 7+,63$*(,17(17,21$//</()7%/$1. 121 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS Taxes -$ -$ 113,651$ -$ Special assessments collected - - - - Intergovernmental revenues - 2,244,980 - 311,059 Charges for services - - - - Investment earnings 58 48,642 82,608 433 Fines and forfeitures 6,229 - - - Miscellaneous - - - 7,374 TOTAL REVENUES 6,287 2,293,622 196,259 Current: General government - - - 311,059 Public safety - - - - Parks, recreation and culture - - - - Public works - 443,274 - - Housing and redevelopment - - 28,411 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - TOTAL EXPENDITURES - 443,274 28,411 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 6,287 1,850,348 167,848 OTHER FINANCING SOURCES (USES) (6,644) - - TOTAL OTHER FINANCING SOURCES (USES)(6,644) - - NET CHANGE IN FUND BALANCES (357) 1,850,348 167,848 664 1,576,104 2,858,798 FUND BALANCES - END OF YEAR 307$ 3,426,452$ 3,026,646$ 39,317$ Traffic Safety Gas Tax Housing Mitigation Fee Community Development Block Grant 122 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019 Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - END OF YEAR 25,499$ -$ 174,981$ 38,855$ - - - - - 181,083 - - - - - - 38,272 2,428 34,415 44,607 - - - - - - - - 63,771 183,511 209,396 - - - - - 94,698 - - - - - - - - - 53,020 - - - - - 86,385 - 5,643 - - - - - - - - 181,083 - 63,771 2,428 209,396 - - - - - - 63,771 2,428 (313,804) 1,332,828 8,380 1,656,520 1,396,599$ 10,808$ 1,342,716$ 1,617,656$ Public Safety Police Grants New Construction Tax Planned Drainage Child Care Program 123 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019 Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - END OF YEAR 247,187$ 91,274$ 13,655$ -$ - - - - - - - 12,149 - - - 428,418 44,722 12,501 31,653 70,802 - - - - - - - 285 291,909 103,775 45,308 - - - 190,084 - - - - - - - 23,804 - 17,915 - 36,514 - - - - 45,862 - - 105,475 - - - - - - - 45,862 17,915 - 246,047 85,860 45,308 - - - - - - 246,047 85,860 45,308 1,416,407 410,318 1,108,171 1,662,454$ 496,178$ 1,153,479$ 2,625,614$ Fire Facilities Restoration Recycling Parks and Recreational Facilities Traffic Signals 124 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019 Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - END OF YEAR -$ -$ -$ 789,950$ - - - - - 68,444 - - - - 793,602 - 205,476 3,629 35,955 2,968 - - - - - - - - 205,476 72,073 829,557 5,490 61,773 - - - - - 2,688 - - 1,539,494 - - - - - - - - - - - - - 529,000 - - - 175,155 - - 709,645 61,773 1,539,494 (504,169) 10,300 (709,937) - - - - - 709,937 (504,169) 10,300 - 2,741,897 127,342 2,134,436 2,237,728$ 137,642$ 2,134,436$ 426,455$ Energy Independence Loan Air Quality Management Aquatic Center Cannabis Compliance 125 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2019 Taxes Special assessments collected Intergovernmental revenues Charges for services Investment earnings Fines and forfeitures Miscellaneous TOTAL REVENUES Current: General government Public safety Parks, recreation and culture Public works Housing and redevelopment Capital outlay Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - END OF YEAR -$ -$ -$ 1,495,052$ 251,258 852,275 - 1,103,533 - - - 2,817,715 - - - 1,222,020 1,883 74,199 - 735,251 - - - 6,229 - 530 - 8,189 253,141 927,004 - 247,795 - - 816,201 - - - 97,386 - - - 1,563,298 - 694,815 - 1,245,538 - - 478,698 507,109 - - - 243,365 - - - 529,000 - - - 247,795 694,815 478,698 5,346 232,189 (478,698) - - - - 93,611 478,698 5,346 325,800 - 64,836 3,242,212 - 70,182$ 3,568,012$ -$ 25,372,681$ Total Other Special Revenue Funds El Paseo Assessment District Landscape and Lighting Districts Nos. 1 - 17 Former RDA Low Income Housing 126 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE TRAFFIC SAFETY YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 664$ 664$ 664$ -$ Resources (Inflows): Investment earnings 50 50 58 8 Fines and forfeitures 30,000 30,000 6,229 (23,771) Amounts Available for Appropriations 30,714 30,714 6,951 (23,763) Charges to Appropriation (Outflow): Transfers out 30,050 30,050 6,644 23,406 Total Charges to Appropriations 30,050 30,050 6,644 23,406 Budgetary Fund Balance, June 30 664$ 664$ 307$ (357)$ 127 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE GAS TAX YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,576,104$ 1,576,104$ 1,576,104$ -$ Resources (Inflows): Intergovernmental 1,957,500 1,957,500 2,244,980 287,480 Investment earnings 10,000 10,000 48,642 38,642 Amounts Available for Appropriations 3,543,604 3,543,604 3,869,726 326,122 Charges to Appropriation (Outflow): Public works 1,000,000 2,812,068 443,274 2,368,794 Total Charges to Appropriations 1,000,000 2,812,068 443,274 2,368,794 Budgetary Fund Balance, June 30 2,543,604$ 731,536$ 3,426,452$ 2,694,916$ 128 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE HOUSING MITIGATION FEE YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,858,798$ 2,858,798$ 2,858,798$ -$ Resources (Inflows): Taxes 145,500 145,500 113,651 (31,849) Investment earnings 25,000 25,000 82,608 57,608 Amounts Available for Appropriations 3,029,298 3,029,298 3,055,057 25,759 Charges to Appropriation (Outflow): Housing and redevelopment 310,000 310,000 28,411 281,589 Total Charges to Appropriations 310,000 310,000 28,411 281,589 Budgetary Fund Balance, June 30 2,719,298$ 2,719,298$ 3,026,646$ 307,348$ 129 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 31,510$ 31,510$ 31,510$ -$ Resources (Inflows): Intergovernmental 325,000 325,000 311,059 (13,941) Investment earnings - - 433 433 Miscellaneous - - 7,374 7,374 Amounts Available for Appropriations 356,510 356,510 350,376 (6,134) Charges to Appropriation (Outflow): General government 325,000 402,890 311,059 91,831 Total Charges to Appropriations 325,000 402,890 311,059 91,831 Budgetary Fund Balance, June 30 31,510$ (46,380)$ 39,317$ 85,697$ 130 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CHILD CARE PROGRAM YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,332,828$ 1,332,828$ 1,332,828$ -$ Resources (Inflows): Taxes 116,000 116,000 25,499 (90,501) Investment earnings 10,000 10,000 38,272 28,272 Amounts Available for Appropriations 1,458,828 1,458,828 1,396,599 (62,229) Charges to Appropriation (Outflow): Capital outlay 195,560 1,275,000 - 1,275,000 Total Charges to Appropriations 195,560 1,275,000 - 1,275,000 Budgetary Fund Balance, June 30 1,263,268$ 183,828$ 1,396,599$ 1,212,771$ 131 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PUBLIC SAFETY POLICE GRANTS YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 8,380$ 8,380$ 8,380$ -$ Resources (Inflows): Intergovernmental 100,000 100,000 181,083 81,083 Investment earnings - - 2,428 2,428 Amounts Available for Appropriations 108,380 108,380 191,891 83,511 Charges to Appropriation (Outflow): Public safety 100,000 183,352 94,698 88,654 Capital outlay - - 86,385 (86,385) Total Charges to Appropriations 100,000 183,352 181,083 2,269 Budgetary Fund Balance, June 30 8,380$ (74,972)$ 10,808$ 85,780$ 132 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE NEW CONSTRUCTION TAX YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,656,520$ 1,656,520$ 1,656,520$ -$ Resources (Inflows): Taxes 239,000 239,000 174,981 (64,019) Investment earnings 10,000 10,000 34,415 24,415 Amounts Available for Appropriations 1,905,520 1,905,520 1,865,916 (39,604) Charges to Appropriation (Outflow): Special item - 523,200 523,200 - Total Charges to Appropriations - 523,200 523,200 - Budgetary Fund Balance, June 30 1,905,520$ 1,382,320$ 1,342,716$ (39,604)$ 133 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PLANNED DRAINAGE YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,592,857$ 1,592,857$ 1,592,857$ -$ Resources (Inflows): Taxes 50,000 50,000 38,855 (11,145) Intergovernmental 450,000 450,000 - (450,000) Investment earnings 10,000 10,000 44,607 34,607 Amounts Available for Appropriations 2,102,857 2,102,857 1,676,319 (426,538) Charges to Appropriation (Outflow): Public works - 1,530,676 53,020 1,477,656 Capital outlay 1,500,000 1,606,643 5,643 1,601,000 Total Charges to Appropriations 1,500,000 3,137,319 58,663 3,078,656 Budgetary Fund Balance, June 30 602,857$ (1,034,462)$ 1,617,656$ 2,652,118$ 134 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATIONAL FACILITIES YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,416,407$ 1,416,407$ 1,416,407$ -$ Resources (Inflows): Taxes 300,000 300,000 247,187 (52,813) Investment earnings 10,000 10,000 44,722 34,722 Amounts Available for Appropriations 1,726,407 1,726,407 1,708,316 (18,091) Charges to Appropriation (Outflow): Public works - 155,060 - 155,060 Capital outlay 100,000 350,000 45,862 304,138 Total Charges to Appropriations 100,000 505,060 45,862 459,198 Budgetary Fund Balance, June 30 1,626,407$ 1,221,347$ 1,662,454$ 441,107$ 135 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE TRAFFIC SIGNALS YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 410,318$ 410,318$ 410,318$ -$ Resources (Inflows): Taxes 30,000 30,000 91,274 61,274 Investment earnings 1,000 1,000 12,501 11,501 Amounts Available for Appropriations 441,318 441,318 514,093 72,775 Charges to Appropriation (Outflow): Public works - - 17,915 (17,915) Capital outlay 25,000 224,220 - 224,220 Total Charges to Appropriations 25,000 224,220 17,915 206,305 Budgetary Fund Balance, June 30 416,318$ 217,098$ 496,178$ 279,080$ 136 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE FIRE FACILITIES RESTORATION YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,108,171$ 1,108,171$ 1,108,171$ -$ Resources (Inflows): Taxes 94,500 94,500 13,655 (80,845) Investment earnings 9,000 9,000 31,653 22,653 Amounts Available for Appropriations 1,211,671 1,211,671 1,153,479 (58,192) Charges to Appropriation (Outflow): Capital outlay 75,000 1,075,171 - 1,075,171 Total Charges to Appropriations 75,000 1,075,171 - 1,075,171 Budgetary Fund Balance, June 30 1,136,671$ 136,500$ 1,153,479$ 1,016,979$ 137 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE RECYCLING YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,494,126$ 2,494,126$ 2,494,126$ -$ Resources (Inflows): Intergovernmental - - 12,149 12,149 Charges for services 115,000 115,000 428,418 313,418 Investment earnings 15,000 15,000 70,802 55,802 Miscellaneous - - 285 285 Amounts Available for Appropriations 2,624,126 2,624,126 3,005,780 381,654 Charges to Appropriation (Outflow): General government 494,875 542,925 190,084 352,841 Parks, recreation and culture 30,000 30,000 23,804 6,196 Public works 140,000 272,000 36,514 235,486 Capital outlay 185,000 205,000 105,475 99,525 Transfers out - - 24,289 (24,289) Total Charges to Appropriations 849,875 1,049,925 380,166 669,759 Budgetary Fund Balance, June 30 1,774,251$ 1,574,201$ 2,625,614$ 1,051,413$ 138 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ENERGY INDEPENDENCE LOAN YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,741,897$ 2,741,897$ 2,741,897$ -$ Resources (Inflows): Investment earnings 225,000 225,000 205,476 (19,524) Amounts Available for Appropriations 2,966,897 2,966,897 2,947,373 (19,524) Charges to Appropriation (Outflow): General government 15,000 15,000 5,490 9,510 Debt service: Principal retirement 107,000 510,000 529,000 (19,000) Interest and fiscal charges 185,320 185,320 175,155 10,165 Total Charges to Appropriations 307,320 710,320 709,645 675 Budgetary Fund Balance, June 30 2,659,577$ 2,256,577$ 2,237,728$ (18,849)$ 139 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE AIR QUALITY MANAGEMENT YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 127,342$ 127,342$ 127,342$ -$ Resources (Inflows): Intergovernmental 64,000 64,000 68,444 4,444 Investment earnings 300 300 3,629 3,329 Amounts Available for Appropriations 191,642 191,642 199,415 7,773 Charges to Appropriation (Outflow): General government 105,500 105,500 61,773 43,727 Total Charges to Appropriations 105,500 105,500 61,773 43,727 Budgetary Fund Balance, June 30 86,142$ 86,142$ 137,642$ 51,500$ 140 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE AQUATIC CENTER YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,134,436$ 2,134,436$ 2,134,436$ -$ Resources (Inflows): Charges for services 795,550 795,550 793,602 (1,948) Investment earnings 7,000 7,000 35,955 28,955 Transfers in 710,750 710,750 709,937 (813) Amounts Available for Appropriations 3,647,736 3,647,736 3,673,930 26,194 Charges to Appropriation (Outflow): Parks, recreation and culture 1,513,300 1,553,300 1,539,494 13,806 Total Charges to Appropriations 1,513,300 1,553,300 1,539,494 13,806 Budgetary Fund Balance, June 30 2,134,436$ 2,094,436$ 2,134,436$ 40,000$ 141 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CANNABIS COMPLIANCE YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 86,250$ 86,250$ 86,250$ -$ Resources (Inflows): Taxes - - 789,950 789,950 Charges for services 50,000 50,000 - (50,000) Investment earnings - - 2,968 2,968 Amounts Available for Appropriations 136,250 136,250 879,168 742,918 Charges to Appropriation (Outflow): Public safety 50,000 50,000 2,688 47,312 Transfers out - 450,000 450,025 (25) Total Charges to Appropriations 50,000 500,000 452,713 47,287 Budgetary Fund Balance, June 30 86,250$ (363,750)$ 426,455$ 790,205$ 142 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE EL PASEO ASSESSMENT DISTRICT YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 64,836$ 64,836$ 64,836$ -$ Resources (Inflows): Assessments 250,000 250,000 251,258 1,258 Use of money and property - - 1,883 1,883 Amounts Available for Appropriations 314,836 314,836 317,977 3,141 Charges to Appropriation (Outflow): General government 250,000 257,500 247,795 9,705 Total Charges to Appropriations 250,000 257,500 247,795 9,705 Budgetary Fund Balance, June 30 64,836$ 57,336$ 70,182$ 12,846$ 143 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE LANDSCAPE AND LIGHTING DISTRICTS NOS 1 -17 YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,242,212$ 3,242,212$ 3,242,212$ -$ Resources (Inflows): Assessments 850,007 850,007 852,275 2,268 Investment earnings 7,800 7,800 74,199 66,399 Miscellaneous - - 530 530 Transfers in 100,000 100,000 93,611 (6,389) Amounts Available for Appropriations 4,200,019 4,200,019 4,262,827 62,808 Charges to Appropriation (Outflow): Public works 892,928 898,029 694,815 203,214 Total Charges to Appropriations 892,928 898,029 694,815 203,214 Budgetary Fund Balance, June 30 3,307,091$ 3,301,990$ 3,568,012$ 266,022$ 144 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE FORMER RDA LOW INCOME HOUSING YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Transfers in 544,170 544,170 478,698 (65,472) Amounts Available for Appropriations 544,170 544,170 478,698 (65,472) Charges to Appropriation (Outflow): Housing and redevelopment 543,170 502,170 478,698 23,472 Capital outlay 1,000 1,000 - 1,000 Total Charges to Appropriations 544,170 503,170 478,698 24,472 Budgetary Fund Balance, June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o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ooled cash and investments 2,988,345$ 2,030,312$ 682,934$ 62,373$ Receivables: Accounts - - - - Interest 1,632,000 - - 972,060 Allowance for interest on Successor Agency - - - (972,060) Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Advances to Successor Agency 8,000,000 - - 4,765,000 Allowance for Advances to Successor Agency - - - (4,765,000) Accounts payable 11,833$ -$ 26,306$ 2,043$ Unearned revenues 63,041 - - - Deposits payable - - - - Due to other funds 1,600,000 - - - TOTAL LIABILITIES 1,674,874 - 26,306 Unavailable revenues 1,632,000 - - - Nonspendable: Prepaid costs - - - - Capital Projects - - - - Special programs - - - - Capital projects 8,893,084 - - - Property acquisition 420,387 - - - Public facilities - - 656,628 60,330 Special programs - - - - Street related purposes - 2,030,312 - TOTAL FUND BALANCES 9,313,471 2,030,312 656,628 TOTAL LIABILITIES, DEFERRED INFLOWS 148 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Accounts Interest Allowance for interest on Successor Agency Prepaid costs Due from other funds Restricted assets: Cash and investments with fiscal agents Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES Unavailable revenues Nonspendable: Prepaid costs Capital Projects Special programs Capital projects Property acquisition Public facilities Special programs Street related purposes TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS 1,256,938$ 106,547$ 4,855,093$ 3,100,684$ 100 - - - - - 14,959 - - - - - 4,600 - - - - - 500,000 - - - - - - - - - - - - - 15,343$ -$ 7,200$ 63,129$ - - - - 24,000 - - - - - - - 39,343 - 7,200 - - - - 4,600 - - - - - - - 1,217,695 - - - - - - - - - - - - - 5,362,852 3,037,555 - - - - - 106,547 - 1,222,295 106,547 5,362,852 149 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Accounts Interest Allowance for interest on Successor Agency Prepaid costs Due from other funds Restricted assets: Cash and investments with fiscal agents Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES Unavailable revenues Nonspendable: Prepaid costs Capital Projects Special programs Capital projects Property acquisition Public facilities Special programs Street related purposes TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS 670,576$ -$ 618$ 21$ - - - - - 350 - - - - - - - - - - - - - - - 185,922 - - - - - - - - - - -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - 186,272 618 21 - - - - - - - - - - - - - - - - 670,576 - - - - - - 670,576 186,272 618 150 CITY OF PALM DESERT COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS JUNE 30, 2019 ASSETS: Pooled cash and investments Receivables: Accounts Interest Allowance for interest on Successor Agency Prepaid costs Due from other funds Restricted assets: Cash and investments with fiscal agents Advances to Successor Agency Allowance for Advances to Successor Agency TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES: LIABILITIES: Accounts payable Unearned revenues Deposits payable Due to other funds TOTAL LIABILITIES Unavailable revenues Nonspendable: Prepaid costs Capital Projects Special programs Capital projects Property acquisition Public facilities Special programs Street related purposes TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS -$ 670$ 15,755,111$ - - 100 11,961 - 2,631,330 - - (972,060) - - 4,600 - - 500,000 1,859,938 - 2,045,860 - - 12,765,000 - - (4,765,000) -$ -$ 125,854$ - - 63,041 - - 24,000 - - 1,600,000 - - - - 1,632,000 - - 4,600 1,871,899 670 2,059,480 - - 1,217,695 - - 8,893,084 - - 420,387 - - 9,117,365 - - 670,576 - - 1,871,899 670 151 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS Licenses and permits -$ -$ -$ -$ Intergovernmental revenues - - 102,854 - Investment earnings 72,759 56,872 19,711 2,215 Miscellaneous - - - - TOTAL REVENUES 72,759 56,872 122,565 Current: General government 400,000 - 203,056 - Public safety 6,848 - - - Parks, recreation and culture 63,073 - - 27,265 Public works 653 83,365 - - Capital outlay 106,925 - - - TOTAL EXPENDITURES 577,499 83,365 203,056 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (504,740) (26,493) (80,491) OTHER FINANCING SOURCES (USES) - - - TOTAL OTHER FINANCING SOURCES (USES) 800,000 - - NET CHANGE IN FUND BALANCES 295,260 (26,493) (80,491) 9,018,211 2,056,805 737,119 FUND BALANCES - END OF YEAR 9,313,471$ 2,030,312$ 656,628$ 60,330$ Economic Development Parks and Recreational Facilities Capital Projects Reserve Drainage Facilities 152 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019 Licenses and permits Intergovernmental revenues Investment earnings Miscellaneous TOTAL REVENUES Current: General government Public safety Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - END OF YEAR 212,177$ -$ -$ -$ - - - - 38,898 2,938 128,720 88,198 4,676 - 2,388,681 - 255,751 2,938 2,517,401 - - - 188,265 - - - 48,781 246,090 - 657,435 24,522 - - - 47,873 15,000 - - 16,000 261,090 - 657,435 (5,339) 2,938 1,859,966 (156,244) - - (156,244) - - (161,583) 2,938 1,859,966 1,383,878 103,609 3,502,886 1,222,295$ 106,547$ 5,362,852$ 3,037,555$ Art in Public Places Signalization Capital Golf Buildings 153 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019 Licenses and permits Intergovernmental revenues Investment earnings Miscellaneous TOTAL REVENUES Current: General government Public safety Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - END OF YEAR -$ -$ -$ -$ - - - - 3,321 3,960 14 - - - - - 3,321 3,960 14 - - - - - - - - - - - - - - - - - - - - - - - 3,321 3,960 14 - - - - - - 3,321 3,960 14 667,255 182,312 604 670,576$ 186,272$ 618$ 21$ Library Assessment District No. 94- 3 Merano Silver Spur Ranch Highlands Undergrounding 154 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2019 Licenses and permits Intergovernmental revenues Investment earnings Miscellaneous TOTAL REVENUES Current: General government Public safety Parks, recreation and culture Public works Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES - END OF YEAR -$ -$ 212,177$ - - 102,854 51,619 15 469,240 - - 2,393,357 51,619 15 - - 791,321 - - 55,629 - - 1,018,385 26,766 - 158,657 - - 137,925 26,766 - 24,853 15 - - - - 24,853 15 1,847,046 655 1,871,899$ 670$ 24,520,046$ Total Other Capital Projects Fund CFD University Special Assessment District Assessment 29 155 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL PROPERTIES YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 68,754,748$ 68,754,748$ 68,754,748$ Resources (Inflows): 300,100 300,100 1,267,229 Amounts Available for Appropriations 69,054,848 69,054,848 70,021,977 967,129 Charges to Appropriation (Outflow): - - 2,000 - 250,000 - 5,850,000 28,654,133 912,833 - - 36,405 Total Charges to Appropriations 5,850,000 28,904,133 951,238 27,952,895 Budgetary Fund Balance, June 30 63,204,848$ 40,150,715$ 69,070,739$ 28,920,024$ 156 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS RESERVE YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 9,018,211$ 9,018,211$ 9,018,211$ Resources (Inflows): 1,912,000 1,912,000 - 14,000 14,000 72,759 200,000 200,000 800,000 Amounts Available for Appropriations 11,144,211 11,144,211 9,890,970 (1,253,241) Charges to Appropriation (Outflow): 400,000 400,000 400,000 - 75,000 6,848 475,000 475,000 63,073 100,000 1,111,701 653 50,000 1,963,119 106,925 Total Charges to Appropriations 1,025,000 4,024,820 577,499 3,447,321 Budgetary Fund Balance, June 30 10,119,211$ 7,119,391$ 9,313,471$ 2,194,080$ 157 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE DRAINAGE FACILITIES YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,056,805$ 2,056,805$ 2,056,805$ Resources (Inflows): 6,000 6,000 56,872 Amounts Available for Appropriations 2,062,805 2,062,805 2,113,677 50,872 Charges to Appropriation (Outflow): - 474,411 83,365 23,000 33,000 - Total Charges to Appropriations 23,000 507,411 83,365 424,046 Budgetary Fund Balance, June 30 2,039,805$ 1,555,394$ 2,030,312$ 474,918$ 158 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ECONOMIC DEVELOPMENT YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 737,119$ 737,119$ 737,119$ Resources (Inflows): - - 102,854 3,000 3,000 19,711 Amounts Available for Appropriations 740,119 740,119 859,684 119,565 Charges to Appropriation (Outflow): 464,000 464,000 203,056 Total Charges to Appropriations 464,000 464,000 203,056 260,944 Budgetary Fund Balance, June 30 276,119$ 276,119$ 656,628$ 380,509$ 159 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE PARKS AND RECREATIONAL FACILITIES YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,897,380$ 3,897,380$ 3,897,380$ Resources (Inflows): 200 200 2,215 Amounts Available for Appropriations 3,897,580 3,897,580 3,899,595 2,015 Charges to Appropriation (Outflow): 20,000 27,300 27,265 - 3,812,000 3,812,000 Total Charges to Appropriations 20,000 3,839,300 3,839,265 35 Budgetary Fund Balance, June 30 3,877,580$ 58,280$ 60,330$ 2,050$ 160 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE ART IN PUBLIC PLACES YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,383,878$ 1,383,878$ 1,383,878$ Resources (Inflows): 132,000 132,000 212,177 10,000 10,000 38,898 - - 4,676 Amounts Available for Appropriations 1,525,878 1,525,878 1,639,629 113,751 Charges to Appropriation (Outflow): 221,700 230,700 246,090 56,000 56,000 15,000 200,000 200,000 156,244 Total Charges to Appropriations 477,700 486,700 417,334 69,366 Budgetary Fund Balance, June 30 1,048,178$ 1,039,178$ 1,222,295$ 183,117$ 161 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE SIGNALIZATION YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 103,609$ 103,609$ 103,609$ Resources (Inflows): 300 300 2,938 Amounts Available for Appropriations 103,909 103,909 106,547 2,638 Charges to Appropriation (Outflow): - 35,000 - Total Charges to Appropriations - 35,000 - 35,000 Budgetary Fund Balance, June 30 103,909$ 68,909$ 106,547$ 37,638$ 162 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CAPITAL GOLF YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,502,886$ 3,502,886$ 3,502,886$ Resources (Inflows): 35,000 35,000 128,720 2,102,020 2,102,020 2,388,681 Amounts Available for Appropriations 5,639,906 5,639,906 6,020,287 380,381 Charges to Appropriation (Outflow): 837,961 844,737 657,435 1,200,000 - - Total Charges to Appropriations 2,037,961 844,737 657,435 187,302 Budgetary Fund Balance, June 30 3,601,945$ 4,795,169$ 5,362,852$ 567,683$ 163 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE BUILDINGS YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,274,798$ 3,274,798$ 3,274,798$ Resources (Inflows): 20,000 20,000 88,198 Amounts Available for Appropriations 3,294,798 3,294,798 3,362,996 68,198 Charges to Appropriation (Outflow): 549,100 1,059,661 188,265 80,000 195,288 48,781 200,000 200,000 24,522 35,000 35,000 47,873 - - 16,000 Total Charges to Appropriations 864,100 1,489,949 325,441 1,164,508 Budgetary Fund Balance, June 30 2,430,698$ 1,804,849$ 3,037,555$ 1,232,706$ 164 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CFD UNIVERSITY SPECIAL ASSESSMENT DISTRICT YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,847,046$ 1,847,046$ 1,847,046$ -$ Resources (Inflows): Investment earnings - - 51,619 51,619 Amounts Available for Appropriations 1,847,046 1,847,046 1,898,665 51,619 Charges to Appropriation (Outflow): Public works - 27,000 26,766 234 Total Charges to Appropriations - 27,000 26,766 234 Budgetary Fund Balance, June 30 1,847,046$ 1,820,046$ 1,871,899$ 51,853$ 165 7+,63$*(,17(17,21$//</()7%/$1. 166 27+(5*29(510(17$/)81'6±'(%76(59,&()81' &LW\+LJKODQGV8QGHUJURXQGLQJ)XQG±7KLVIXQGLVXVHGWRDFFRXQWIRUWKHUHVRXUFHVDQGSD\PHQWIRU GHEWUHODWHGWR+LJKODQGV8QGHUJURXQGLQJ 167 CITY OF PALM DESERT BALANCE SHEET OTHER DEBT SERVICE FUND Pooled cash and investments 176,872$ 176,872$ Receivables: Assessments 1,172,053 1,172,053 Due from other governments 4,896 4,896 Deposits payable 109,526$ 109,526$ TOTAL LIABILITIES 109,526 Unavailable revenues 1,172,053 1,172,053 Debt service 72,242 72,242 TOTAL FUND BALANCES 72,242 TOTAL LIABILITIES, DEFERRED INFLOWS 168 CITY OF PALM DESERT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OTHER DEBT SERVICE FUND Special assessments collected 114,222$ 114,222$ Investment earnings 4,375 4,375 TOTAL REVENUES 118,597 Current: General government 10,828 10,828 Debt service: Principal retirement 58,000 58,000 Interest and fiscal charges 68,895 TOTAL EXPENDITURES 137,723 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (19,126) 91,368 FUND BALANCES - END OF YEAR 72,242$ 72,242$ City Highlands Undergrounding 169 CITY OF PALM DESERT BUDGETARY COMPARISON SCHEDULE CITY HIGHLAND UNDERGROUNDING YEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 91,368$ 91,368$ 91,368$ Resources (Inflows): Assessments 131,453 131,453 114,222 600 600 4,375 Amounts Available for Appropriations 223,421 223,421 209,965 General government 17,800 17,800 10,828 44,000 58,000 58,000 68,896 68,896 68,895 Total Charges to Appropriations 130,696 144,696 137,723 170 ,17(51$/6(59,&()81'6 ,QWHUQDO6HUYLFH)XQGVDUHXVHGWRDFFRXQWIRUVHUYLFHVSURYLGHGWRRWKHUGHSDUWPHQWVRUDJHQFLHVRIWKH &LW\RQDFRVWUHLPEXUVHPHQWEDVLV (TXLSPHQW5HSODFHPHQW±7KLVIXQGLVXVHGWRDFFRXQWIRUILQDQFLDOWUDQVDFWLRQVUHODWHGWRUHSODFHPHQW RI&LW\RZQHGYHKLFOHVDQGHTXLSPHQW &RPSHQVDWLRQ%HQHILWV)XQG±7KLVIXQGLVXVHGWRDFFRXQWIRUIXQGLQJRIFRPSHQVDWHGDEVHQFHV 171 CITY OF PALM DESERT COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2019 Total ASSETS: CURRENT ASSETS: Cash and investments 8,685,778$ 2,729,162$ 11,414,940$ Prepaid costs 25,118 - 25,118 Due from other governments 25,000 - 25,000 TOTAL CURRENT ASSETS 8,735,896 2,729,162 11,465,058 CAPITAL ASSETS: Nondepreciable 32,414 - 32,414 Depreciable, net 1,914,679 - CAPITAL ASSETS, NET 1,947,093 - 1,947,093 TOTAL ASSETS 10,682,989 2,729,162 13,412,151 LIABILITIES: TOTAL CURRENT LIABILITIES 14,340 300,000 314,340 TOTAL NONCURRENT LIABILITIES:- 2,328,215 2,328,215 TOTAL LIABILITIES 14,340 2,628,215 2,642,555 NET POSITION: TOTAL NET POSITION 10,668,649$ 100,947$ 10,769,596$ Equipment Replacement Compensation Benefits 172 CITY OF PALM DESERT COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2019 Total OPERATING EXPENSES: General and administrative -$ 272,430$ 272,430$ Maintenance and operations 349,788 - TOTAL OPERATING EXPENSES 818,815 272,430 1,091,245 NONOPERATING REVENUES: TOTAL NONOPERATING REVENUES 261,354 68,762 330,116 NET POSITION - END OF YEAR 10,668,649$ 100,947$ 10,769,596$ Equipment Replacement Compensation Benefits 173 CITY OF PALM DESERT COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2019 Total Payments to suppliers (398,047)$ -$ $ - (30,987) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (398,047) (30,987) (429,034) CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES: 467,110 250,000 NET CASH PROVIDED (USED) BY NONCAPITAL AND RELATED FINANCING ACTIVITIES 467,110 250,000 717,110 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: (269,179) - 40,009 - NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (229,170) - (229,170) CASH FLOWS FROM INVESTING ACTIVITIES: 228,902 68,762 NET CASH PROVIDED BY INVESTING ACTIVITIES 228,902 68,762 297,664 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 68,795 287,775 356,570 CASH AND CASH EQUIVALENTS - 8,685,778$ 2,729,162$ 11,414,940$ END OF YEAR RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Adjustments to reconcile operating loss to net Depreciation and amortization 469,027 - 469,027 (Increase) decrease in due from other governments (25,000) - 11,831 - (35,090) - - 241,443 Total Adjustments 420,768 241,443 662,211 NET CASH PROVIDED (USED) 174 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. 175 7+,63$*(,17(17,21$//</()7%/$1. 176 CITY OF PALM DESERT COMBINING STATEMENT OF ASSETS AND LIABILITIES ALL AGENCY FUNDS JUNE 30, 2019 Totals Assets: Pooled cash and investments 1,933,099$ 268,804$ 2,853,798$ 7,917,890$ 12,973,591$ Receivables: Assessments - - - 52,002,794 52,002,794 Accrued interest - - - 20,615 20,615 Due from other governments 37,963 - - 52,417 90,380 Restricted assets: Cash and investments with fiscal agents - - - 4,722,788 4,722,788 Total Assets 1,971,062$ 268,804$ 2,853,798$ 64,716,504$ 69,810,168$ Liabilities: Deposits payable 1,971,062$ 268,804$ 2,853,798$ 64,716,504$ 69,810,168$ Total Liabilities 1,971,062 $ 268,804 $ 2,853,798 $ 64,716,504 $ 69,810,168 $ Agency Treasurers 1991 Bond Act Retiree Service Stipend Fund Special Assessment Funds 177 CITY OF PALM DESERT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2019 Balance Balance Pooled cash and investments 1,948,057$ 3,202,155$ 3,217,113$ $ Accounts 1,875 1,525 3,400 47,008 48,427 57,472 TOTAL ASSETS 1,996,940$ 3,252,107$ 3,277,985$ $ Deposits 1,996,940$ 3,252,107$ 3,277,985$ $ TOTAL LIABILITIES 1,996,940$ 3,252,107$ 3,277,985$ $ Pooled cash and investments 268,804$ -$ -$ $ TOTAL ASSETS 268,804$ -$ -$ 268,804$ LIABILITIES: 268,804$ -$ -$ $ TOTAL LIABILITIES 268,804$ -$ -$ $ Pooled cash and investments 1,325,341$ 3,742,556$ 2,214,099$ $ TOTAL ASSETS 1,325,341$ 3,742,556$ 2,214,099$ $ Deposits payable 1,325,341$ 3,742,556$ 2,214,099$ 2,853,798$ TOTAL LIABILITIES 1,325,341$ 3,742,556$ 2,214,099$ 2,853,798$ 178 CITY OF PALM DESERT COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2019 Balance Balance Pooled cash and investments 7,825,196$ 5,086,190$ 4,993,496$ $ Assessments 53,894,172 - 1,891,378 Accrued interest 15,197 23,099 17,681 22,460 52,417 22,460 Cash and investments with fiscal agents 4,682,972 122,431 82,615 TOTAL ASSETS 66,439,997$ 5,284,137$ 7,007,630$ $ Deposits payable 66,439,997$ 5,284,137$ 7,007,630$ $ TOTAL LIABILITIES 66,439,997$ 5,284,137$ 7,007,630$ $ Pooled cash and investments 11,367,398$ 12,030,901$ 10,424,708$ $ Accounts 1,875 1,525 3,400 Assessments 53,894,172 - 1,891,378 Accrued interest 15,197 23,099 17,681 69,468 100,844 79,932 Cash and investments with fiscal agents 4,682,972 122,431 82,615 TOTAL ASSETS 70,031,082$ 12,278,800$ 12,499,714$ $ Deposits payable 70,031,082$ 12,278,800$ 12,499,714$ 69,810,168$ TOTAL LIABILITIES 70,031,082$ 12,278,800$ 12,499,714$ 69,810,168$ 179 7+,63$*(,17(17,21$//</()7%/$1. 180 '(6&5,37,212)67$7,67,&$/6(&7,21&217(176 -XQH 7KLV SDUW RI WKH &LW\ RI 3DOP 'HVHUW¶V FRPSUHKHQVLYH DQQXDO ILQDQFLDO UHSRUW SUHVHQWV GHWDLOHG LQIRUPDWLRQ DV D FRQWH[W IRU XQGHUVWDQGLQJ ZKDW WKH LQIRUPDWLRQ LQ WKH ILQDQFLDO VWDWHPHQWV QRWH GLVFORVXUHVDQGUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQVD\DERXWWKHFLW\¶VRYHUDOOILQDQFLDOKHDOWK &RQWHQWV )LQDQFLDO7UHQGV 7KHVHVFKHGXOHVFRQWDLQWUHQGLQIRUPDWLRQWRKHOSWKHUHDGHUXQGHUVWDQGKRZWKH&LW\¶V ILQDQFLDOSHUIRUPDQFHDQGZHOOEHLQJKDYHFKDQJHGRYHUWLPH 5HYHQXH&DSDFLW\ 7KHVHVFKHGXOHVFRQWDLQLQIRUPDWLRQWRKHOSWKHUHDGHUDVVHVVWKH&LW\¶VPRVWVLJQLILFDQW ORFDOUHYHQXHVRXUFH 'HEW&DSDFLW\ 7KHVHVFKHGXOHVSUHVHQWLQIRUPDWLRQWRKHOSWKHUHDGHUDVVHVVWKHDIIRUGDELOLW\RIWKH&LW\¶V FXUUHQWOHYHOVRIRXWVWDQGLQJGHEWDQGWKH&LW\¶VDELOLW\WRLVVXHDGGLWLRQDOGHEWLQWKHIXWXUH 'HPRJUDSKLFDQG(FRQRPLF,QIRUPDWLRQ 7KHVHVFKHGXOHVRIIHUGHPRJUDSKLFDQGHFRQRPLFLQGLFDWRUVWRKHOSWKHUHDGHUXQGHUVWDQG WKHHQYLURQPHQWZLWKLQZKLFKWKH&LW\¶VILQDQFLDODFWLYLWLHVWDNHSODFH 2SHUDWLQJ,QIRUPDWLRQ 7KHVHVFKHGXOHVFRQWDLQVHUYLFHDQGLQIUDVWUXFWXUHGDWDWRKHOSWKHUHDGHUXQGHUVWDQGKRZ WKHLQIRUPDWLRQLQWKH&LW\¶VILQDQFLDOUHSRUWUHODWHVWRWKHVHUYLFHVWKH&LW\SURYLGHVDQG WKHDFWLYLWLHVLWSUHIRUPV 6RXUFHV8QOHVVRWKHUZLVHQRWHGWKHLQIRUPDWLRQLQWKHVHVVFKHGXOHVLVGHULYHGIURPWKHFRPSUHKHQVLYH DQQXDOILQDQFLDOUHSRUWVIRUWKHUHOHYDQW\HDU7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQWLQ VFKHGXOHVSUHVHQWLQJJRYHUQPHQWZLGHLQIRUPDWLRQLQFOXGHLQIRUPDWLRQEHJLQQLQJLQWKDW\HDU 181 7+,63$*(,17(17,21$//</()7%/$1. 182 City of Palm Desert Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities 2019 2018 2017 2016 2015 Net Investment in capital assets 429,729,549 438,184,070 449,037,170 459,644,720 473,722,694 90,057,306 83,054,707 87,091,894 78,812,066 71,530,456 Total Governmental Activities Net Position 720,323,088 718,588,141 733,953,668 731,755,217 (3) 681,153,670 - - Net Investment in capital assets 69,070,734 69,111,797 69,829,772 70,202,487 71,129,743 - - - - - 6,590,251 5,609,843 4,829,456 4,479,575 4,302,958 Total Business-type Activities Net Position 75,660,985 74,721,640 74,659,228 74,682,062 75,432,701 Net Investment in capital assets 498,800,283 507,295,867 518,866,942 529,847,207 544,852,437 200,536,233 197,349,364 197,824,604 193,298,431 135,900,520 96,647,557 88,664,550 91,921,350 83,291,641 75,833,414 Total Primary Government Net Position 795,984,073 793,309,781 808,612,896 806,437,279 756,586,371 2014 2013 2012 2011 2010 Net Investment in capital assets 466,246,732 465,756,172 475,457,375 302,757,128 304,702,414 Total Governmental Activities Net Position 712,245,092 702,101,685 702,816,051 (1) 557,719,554 559,015,339 Business-Type Activities Net Investment in capital assets 72,009,184 72,892,200 73,375,634 74,043,419 67,902,786 Restricted - - - - - Unrestricted 3,920,382 3,682,061 3,901,816 4,068,623 4,391,160 Total Business-type Activities Net Position 75,929,566 76,574,261 77,277,450 78,112,042 72,293,946 Primary Government Net Investment in capital assets 538,255,916 538,648,372 548,833,009 376,800,547 372,605,200 Restricted 140,460,575 132,741,798 119,736,419 147,648,424 143,394,780 Unrestricted 109,458,167 107,285,776 111,524,073 111,382,625 115,309,305 Total Primary Government Net Position 788,174,658 778,675,946 780,093,501 635,831,596 631,309,285 (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) The implementation of GASB Statement No. 68 and Statement No. 71 resulted in a prior year restatement decrease of $37.73 million in the governmental activities net positons. (3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. 183 City of Palm Desert Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities: General government 23,252,576 18,467,097 15,708,054 14,836,881 37,195,732 36,543,050 34,943,220 34,009,984 9,067,858 9,605,756 10,954,630 8,162,859 8,284,914 8,240,115 9,850,200 9,223,126 14,836,332 18,358,907 14,892,145 47,044,197 - - - - 231,228 259,250 271,603 289,000 Total Governmental activities Expenses 92,868,640 91,474,175 86,619,852 113,566,047 Business-Type Activities: Desert Willow Golf Course 8,700,514 8,763,220 8,243,515 8,165,183 874,753 930,815 893,125 1,005,918 Total Business-Type Activities 9,575,267 9,694,035 9,136,640 9,171,101 Total primary government expenses 102,443,907 101,168,210 95,756,492 122,737,148 Governmental Activities Charges for services General government 2,645,724 2,388,260 2,095,648 2,185,123 8,180,354 7,551,760 6,861,450 7,029,595 14,503,741 10,801,436 10,603,708 10,606,464 829,557 821,824 793,527 772,801 2,762,045 2,685,831 2,327,521 2,186,153 10,426,397 8,555,881 7,931,900 9,496,520 4,016,193 2,442,621 7,710,355 10,839,715 Total Governmental Activities Program Revenues 43,364,011 35,247,613 38,324,109 43,116,371 Business-Type Activities Charges for Service: Desert Willow Golf Course 8,743,654 8,432,273 7,497,664 7,240,866 1,298,066 1,250,456 1,284,462 1,280,230 - 167,670 605,186 111,942 Total Business-type activities program revenue 10,041,720 9,850,399 9,387,312 8,633,038 Total Primary Government program revenue 53,405,731 45,098,012 47,711,421 51,749,409 Governmental activities (49,504,629) (56,226,562) (48,295,743) (70,449,676) 970,670 156,364 250,672 (538,063) Total Primary Government Net Expense (48,533,959) (56,070,198) (48,045,071) (70,987,739) Governmental Activities: Taxes: (Combined/Net Pass-through)53,894,917 50,150,650 47,628,454 44,747,151 3,170,693 1,901,536 1,041,232 2,074,934 - - - - 7,452 17,274 2,145 24,292 1,396,514 1,573,106 1,522,363 1,828,677 (5)(7,530,000) - - - - (4)- - - 72,138,669 - Total Governmental activities Net Revenues 51,239,576 53,942,566 50,494,194 121,051,223 Business-Type Activities: Investment Earnings 181,310 74,873 26,494 24,924 87,365 131,175 - - (300,000) (300,000) (300,000) (237,500) Total Business-type activities (31,325) (93,952) (273,506) (212,576) (377,788) Total primary government 51,208,251 53,848,614 50,220,688 120,838,647 Governmental Activities: 1,734,947 (2,283,996) 2,198,451 50,601,547 939,345 62,412 (22,834) (750,639) Total primary government 2,674,292 (2,221,584) 2,175,617 49,850,908 (1)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment". (2) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397. (3) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (4) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (5) City established an allowance for advances owed by the Successor Agency (See Note 21). 2016 2015201720182019 184 City of Palm Desert Changes in Net Position Continued Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental Activities: General government 19,194,343 16,375,295 17,387,080 17,182,987 29,339,106 28,614,153 28,037,453 26,601,668 7,852,611 6,944,033 10,519,663 15,976,383 8,327,402 8,752,623 6,033,019 7,337,403 21,123,197 16,316,237 17,407,751 16,984,334 - - 16,994,265 39,418,936 237,053 253,381 10,971,707 18,989,167 Total Governmental Activities Expenses 86,073,712 77,255,722 107,350,938 142,490,878 Business-Type Activities: Desert Willow Golf Course 8,452,001 8,655,754 8,471,567 7,946,063 922,341 984,811 1,031,178 861,786 Total Business-Type Activities 9,374,342 9,640,565 9,502,745 8,807,849 Total primary government expenses 95,448,054 86,896,287 116,853,683 151,298,727 Governmental Activities Charges for services General government 2,152,280 1,833,823 1,805,442 1,921,573 6,851,603 5,308,858 5,034,002 4,935,422 10,239,886 11,147,297 9,041,801 9,825,352 729,076 898,222 728,721 768,786 2,180,877 768,775 826,251 762,015 9,745,609 5,876,028 7,411,902 5,675,777 21,086,051 7,733,439 2,309,678 2,255,393 Total Governmental Activities Program Revenues 52,985,382 33,566,442 27,157,797 26,144,318 Business-Type Activities Charges for Service: Desert Willow Golf Course 7,804,904 7,494,819 7,635,352 7,338,640 1,254,521 1,215,860 1,222,971 1,217,985 94,076 660,685 236,419 - Total Business-type activities program revenue 9,153,501 9,371,364 9,094,742 8,556,625 Total Primary Government program revenue 62,138,883 42,937,806 36,252,539 34,700,943 Governmental Activities (33,088,330) (43,689,280) (80,193,141) (116,346,560) (220,841) (269,201) (408,003) (251,224) Total Primary Government Net Expense (33,309,171) (43,958,481) (80,601,144) (116,597,784) Governmental Activities: Taxes: (Combined/Net Pass-through)39,952,738 38,742,060 73,105,614 114,880,586 358,674 318,996 1,102,309 2,158,556 - - 791,256 762,588 488,319 - - - 1,994,506 3,894,203 5,838,881 3,169,977 (5)- - - - - 437,500 437,500 440,000 (6,046,761) (4) - - 144,011,578 - - Total Governmental Activities Net Revenues 43,231,737 43,392,759 225,289,638 114,924,946 Business-Type Activities: Investment Earnings 13,646 3,512 13,411 22,559 - - - (437,500) (437,500) (440,000) 6,046,761 Total Business-type activities (423,854) (433,988) (426,589) 6,069,320 9,093 Total primary government 42,807,883 42,958,771 224,863,049 120,994,266 Governmental Activities: 10,143,407 (296,521) 145,096,497 (1,421,614) (644,695) (703,189) (834,592) 5,818,096 Total primary government 9,498,712 (999,710) 144,261,905 4,396,482 (1)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment". (2) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397. (3) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (4) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (5) City established an allowance for advances owed by the Successor Agency (See Note 21). 2011 (2)2010 (2)2012 (3)20132014 185 THIS PAGE INTENTIONALLY LEFT BLANK 186 City of Palm Desert Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) General Fund:2019 2018 2017 2016 2015 Nonspendable 10,559,396 10,509,094 9,067,979 9,528,630 10,312,261 - - - - - 63,197,223 59,666,638 - - - 15,964,130 15,492,508 658,817 991,853 1,771,278 3,322,321 4,702,308 74,259,748 71,842,172 67,727,130 Total General Fund 93,043,070 90,370,548 83,986,544 82,362,655 79,810,669 Nonspendable 193,189 1,726 1,276 3,052 348 175,780,733 169,549,126 171,044,474 165,411,544 (5) 106,261,212 16,247,652 16,751,821 16,771,055 16,873,834 16,952,887 21,238,271 23,258,063 23,250,337 24,172,531 - - - - - Total all other Governmental Funds 213,459,845 209,560,736 211,067,142 182,288,430 147,386,978 2014 2013 2012 2011 2010 Nonspendable 7,745,320 7,678,250 2,926,739 2,939,850 (1) 9,676,961 - - - - - - - - - - 4,425,423 3,224,761 3,297,152 4,501,159 4,044,421 66,203,203 65,311,919 69,438,971 66,776,414 63,847,586 Total General Fund 78,373,946 76,214,930 75,662,862 74,217,423 77,568,968 Nonspendable 6,713 (4) 49,319,200 39,525,247 40,925,918 41,050,481 Restricted 114,194,435 (4) 76,725,388 69,065,451 230,623,054 260,163,043 Committed 21,644,068 15,649,703 20,289,309 17,285,733 (2) 8,871,910 (2) Assigned 24,429,824 14,144,969 17,552,726 19,375,999 16,432,292 Unassigned - - - - - Total all other Governmental Funds 160,275,040 155,839,260 146,432,733 (3) 308,210,704 (3) 326,517,726 (3) (1) RDA made payment on advances from the city. (2) Housing Asset fund transfer for Capital Asset replacement to the Housing Authority. (3) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (4) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds. (5) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. 187 City of Palm Desert Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Revenues:2019 2018 2017 2016 2015 Taxes 67,102,185 61,906,859 59,466,545 56,735,503 3,948,157 3,445,246 3,318,114 3,296,705 1,416,829 1,326,049 1,678,709 2,057,843 6,194,152 5,682,704 7,249,515 15,429,238 6,899,916 6,675,632 6,439,458 5,896,480 5,223,285 2,894,821 2,356,363 2,082,843 7,166,097 3,626,892 2,086,224 1,837,319 273,434 162,370 135,276 295,269 2,892,940 2,886,542 2,594,433 2,317,499 - - 3,550,991 - - - - 7,868 Total Revenues 101,116,995 88,607,115 88,875,628 89,956,567 General government 24,269,546 19,281,102 16,887,293 15,783,955 7,504,119 8,522,801 9,239,680 6,438,849 - - - - 36,901,283 36,247,656 34,674,418 33,750,347 6,497,391 6,467,713 7,157,821 6,831,534 8,728,354 12,183,852 8,794,894 11,031,584 - - - 19,584,487 3,396,511 915,422 2,169,035 7,071,738 587,000 150,000 237,000 257,000 244,050 260,971 277,814 296,336 Total Expenditures 88,128,254 84,029,517 79,437,955 101,045,830 Excess(deficiency of Revenues over(under) expenditures 12,988,741 4,577,598 9,437,673 (11,089,263) 5,319,448 6,613,352 9,406,888 6,030,706 (5,736,558) (6,313,352) (12,218,428) (6,075,206) (6,000,000) - - - - - - - - - - 72,138,669 - - - 225,000 Net Change In Fund Balance 6,571,631 4,877,598 6,626,133 61,229,906 2014 2013 2012 (1) 2011 2010 Taxes 50,464,511 50,768,200 82,901,921 124,672,062 3,486,220 3,654,337 3,232,923 3,262,163 2,262,907 1,586,796 1,041,834 1,089,543 7,380,744 5,097,892 6,637,426 7,605,282 5,626,850 5,367,630 5,146,499 5,011,205 2,165,020 898,222 728,721 701,481 864,853 373,012 1,469,142 3,102,649 231,768 242,568 276,452 310,840 3,539,552 9,028,698 6,814,924 3,095,689 10,749,218 - - - 420,590 - - - Total Revenues 87,192,233 77,017,355 108,249,842 148,850,914 General government 17,070,816 14,028,252 15,851,883 15,273,085 6,650,178 5,650,666 8,942,097 18,033,576 - - 16,994,265 39,418,936 29,139,735 28,299,876 27,551,113 26,824,434 5,802,941 6,162,449 3,685,334 3,845,901 12,741,764 9,819,591 11,306,021 11,256,499 2,350,187 - - - 6,273,822 2,788,676 9,575,227 14,205,889 674,000 318,000 9,032,707 22,914,707 242,495 255,239 10,187,765 18,176,454 Total Expenditures 80,945,938 67,322,749 113,126,412 169,949,481 Excess(deficiency of Revenues over(under) expenditures 6,246,295 9,694,606 (4,876,570) (21,098,567) 4,861,551 11,274,539 24,453,724 69,995,597 (5,424,051) (11,010,550) (24,013,724) (70,555,597) - - - - - (155,895,962) - 911,001 - - - Net Change In Fund Balance 6,594,796 9,958,595 (160,332,532) (21,658,567) (18,319,129) 1.2%0.9% 18.6% 26.4% 19.6% (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see Note 16 and 17. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency (See Note 21). 0.6%6.4%0.7%0.5%1.0% 188 City of Palm Desert Graphs - Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (1) Combined Other is a combination of rental income, investment earnings, and charges for services. (2) Miscellaneous Other is a combination of fines and forfeitures, miscellaneous, contributions from other governments, and contributions from property owners. (3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement . (4) Public works is a combination of public works and contributions to property owners. Note: Graphs excludes Other financing sources and uses. $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 FY 2 0 1 9 FY 2 0 1 8 FY 2 0 1 7 FY 2 0 1 6 FY 2 0 1 5 FY 2 0 1 4 FY 2 0 1 3 FY 2 0 1 2 FY 2 0 1 1 FY 2 0 1 0 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 $300,000,000 FY 2 0 1 9 FY 2 0 1 8 FY 2 0 1 7 FY 2 0 1 6 FY 2 0 1 5 FY 2 0 1 4 FY 2 0 1 3 FY 2 0 1 2 FY 2 0 1 1 FY 2 0 1 0 Total Expenditures Parks, recreation & culture Pass-through-agreement Debt Expenditures (3) Capital outlay Public works (4) Public safety Housing & Redevelopment General Government -189 City of Palm Desert Supplemental - Historical General Fund Revenues (including Transfers In) Last Ten Fiscal Years FY 2019 2018 2017 2016 2015 Sales Tax 21,434,387$ 18,627,704$ 18,505,449$ 18,994,779$ 17,565,134$ Transient Occupancy Tax 17,250,843 17,019,034 15,054,259 11,252,997 10,799,680 Property Tax (3)11,074,207 10,777,998 10,157,813 10,461,595 9,710,990 Investment Earnings 2,672,643 1,237,562 644,341 725,015 416,656 Transfer In 937,202 1,610,830 1,472,852 1,390,258 2,179,472 Franchises 3,078,855 3,097,521 3,146,702 3,095,873 3,102,431 State Subventions (1) (3)82,722 38,876 23,101 59,317 155,049 Building & Grading Permits 1,064,071 1,048,973 1,247,390 1,216,115 1,279,706 Reimbursements (4)1,468,351 1,388,654 1,407,811 1,589,511 1,604,707 Business License Tax 1,216,712 1,154,275 1,118,183 1,269,082 1,160,207 Timeshare Mitigation Fee 1,678,375 1,543,762 1,467,028 1,500,683 1,483,158 Plan Check Fees 619,763 691,096 431,115 592,818 505,370 Property Transfer Tax 727,978 664,822 690,975 491,060 558,965 Other Revenues (2)2,352,803 1,951,122 2,185,703 2,189,063 1,713,758 65,658,912$ 60,852,229$ 57,552,722$ 54,828,166$ $ FY 2014 2013 2012 2011 2010 Sales Tax 17,258,958$ 16,764,808$ 15,836,953$ 14,680,578$ 13,273,793$ Transient Occupancy Tax 9,855,509 9,188,981 8,085,225 7,421,769 6,848,132 Property Tax (3)9,041,428 9,529,018 7,976,494 8,341,728 8,707,567 Investment Earnings 405,456 126,206 408,661 793,461 1,766,868 Transfer In 1,373,786 2,127,655 2,240,703 2,691,634 4,747,672 Franchises 3,007,215 2,892,805 2,856,679 2,771,594 2,705,902 State Subventions (1) (3)22,089 26,691 25,759 236,211 151,489 Building & Grading Permits 1,695,303 1,206,935 750,442 783,031 575,852 Reimbursements (4)1,809,323 1,868,804 2,535,977 1,971,505 2,488,378 Business License Tax 1,169,316 1,149,551 1,076,541 1,085,411 1,071,997 Timeshare Mitigation Fee 1,333,586 1,292,859 1,110,227 1,192,490 1,483,220 Plan Check Fees 662,893 500,698 275,728 317,332 224,325 Property Transfer Tax 530,556 520,393 485,040 399,280 455,580 Other Revenues (2)1,932,009 1,961,314 1,398,669 1,475,154 1,567,651 50,097,427$ 49,156,718$ 45,063,098$ 44,161,178$ $ (1) State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. (2) Other Revenues is any combination of miscellaneous penalties and interest, permits, grants, parking bails, fees, sales of maps and publications, vehicle and court fines, rental income and other revenues. (3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes. (4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement is limited and applies to existing projects. 190 City of Palm Desert Supplemental Graph - Historical General Fund Revenues (Including Transfers In) Last Ten Fiscal Years (1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants, incomes, penalties, permits, sales and taxes. *State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. $0 F Y 2 0 1 9 F Y 2 0 1 8 F Y 2 0 1 7 F Y 2 0 1 6 F Y 2 0 1 5 F Y 2 0 1 4 F Y 2 0 1 3 F Y 2 0 1 2 F Y 2 0 1 1 F Y 2 0 1 0 Combined Other (1) Interest Property Tax Transient Occupancy Tax Sales Tax 191 City of Palm Desert Supplemental - Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years FY 2019 2018 2017 2016 2015 Public Safety (1)20,975,032$ 21,088,867$ 20,424,249$ 20,151,237$ 18,784,117$ 12,521,081 11,460,325 8,238,228 7,971,706 7,561,255 2,149,715 2,333,897 2,637,630 2,664,871 2,645,443 1,249,674 1,179,305 1,062,611 791,565 749,631 2,185,648 2,020,797 2,418,451 2,709,328 2,631,590 1,828,083 1,579,734 1,849,442 1,888,290 1,847,798 - 2,760 25,326 1,083,919 998,463 1,250,969 1,133,007 970,877 1,004,989 1,067,837 20,826,188 13,669,533 18,302,019 14,010,275 14,512,426 Total Expenditures 62,986,390$ 54,468,225$ 55,928,833$ 52,276,180$ 50,798,560$ FY 2014 2013 2012 2011 2010 Public Safety (1)17,306,342$ 17,002,291$ 16,532,894$ 16,047,991$ 15,671,095$ 7,413,578 7,180,519 7,670,377 8,023,314 8,556,627 2,556,967 2,528,131 2,527,817 2,380,255 3,021,319 618,138 575,119 526,804 497,366 990,505 2,806,168 2,353,655 2,446,854 2,522,117 2,565,567 1,783,918 1,517,937 1,538,506 1,523,748 1,756,589 4,466 1,179,743 2,332,968 2,268,901 708,006 1,018,435 1,505,018 1,056,998 1,354,255 1,278,983 14,430,399 14,762,237 8,984,441 12,894,776 8,301,439 Total Expenditures 47,938,411$ 48,604,650$ 43,617,659$ 47,512,723$ 42,850,130$ (1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, captal outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard equipment building maintenance, Portola Community center, storm water permit. 192 City of Palm Desert Supplemental Graph- Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years (1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include the cost for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, captal outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard equipment building maintenance, Portola Community center, storm water permit. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 F Y 2 0 1 9 F Y 2 0 1 8 F Y 2 0 1 7 F Y 2 0 1 6 F Y 2 0 1 5 F Y 2 0 1 4 F Y 2 0 1 3 F Y 2 0 1 2 F Y 2 0 1 1 F Y 2 0 1 0 Combined Other (1) Community Promotions Public Works Administration City Administration (2) Public Safety (3) 193 7+,63$*(,17(17,21$//</()7%/$1. 194 City of Palm Desert Supplemental Historical General Revenue and Expenditures Per Capita Last Ten Fiscal Years FY 2019 2018 2017 2016 2015 Total General Revenue (2)64,721,710$ 59,241,399$ 56,079,870$ 53,437,908$ $ 53,625 52,769 50,740 49,335 General Revenue Per Capita 1,207 1,123 1,105 1,083 $ FY 2014 2013 2012 2011 2010 Total General Revenue (2)48,723,641$ 47,029,063$ 42,822,395$ 41,469,544$ $ 50,417 49,949 49,471 49,111 General Revenue Per Capita 966$ 942$ 866$ 844$ $ FY 2019 2018 2017 2016 2015 Total General Expenditures (2)57,900,932$ 49,992,388$ 48,427,111$ 48,134,252$ $ 53,625 52,769 50,740 49,335 General Expenditures Per Capita 1,080 947 954 976 $ FY 2014 2013 2012 2011 2010 Total General Expenditures (2)44,183,659$ 42,155,428$ 42,099,903$ 41,833,291$ $ 50,417 49,949 49,471 49,111 General Expenditures Per Capita 876$ 844$ 851$ 852$ $ (1) Population figures are as of January start of fiscal year. (2) Interfund Transfers In/Out, extraordinary loss (gain), and special item are not included in total. Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department 195 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 Exempt 2019 11,231,546,199 2,675,659,205 62,224,633 373,347,796 (326,679,322) 15,556,158,170 1.00000 2018 10,757,283,204 2,554,854,761 59,762,684 388,457,449 (313,754,093) 14,940,671,116 1.00000 2017 10,555,732,091 2,434,816,656 58,318,962 379,073,252 (306,174,550) 14,579,740,457 1.00000 2016 10,174,360,142 2,358,860,033 56,840,001 412,090,006 (312,620,004) 14,210,000,198 1.00000 2015 9,636,181,445 2,290,456,630 54,211,991 420,142,932 (298,165,952) 13,552,997,813 1.00000 2014 9,043,372,632 2,247,924,054 64,595,519 426,330,424 (297,139,386) 12,919,103,760 1.00000 2013 8,621,493,305 2,239,836,432 62,565,263 462,982,950 (300,313,265) 12,513,052,693 1.00000 2012 8,694,403,021 2,198,729,088 50,256,665 452,309,984 (288,975,823) 12,564,166,215 1.00000 2011 8,982,403,643 2,179,940,065 52,528,676 564,683,270 (288,907,720) 13,132,169,069 1.00000 2010 9,210,638,643 2,419,511,046 54,988,887 426,163,878 (274,944,437) 13,747,221,855 1.00000 (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 196 City of Palm Desert Historical Net Assessed Taxable Values Citywide Graph - Assessed Valuation Growth Last Ten Fiscal Years Historical Major Additions Annexations FY Cook Street Area 88/89 Town Center Mall 83/84 Country Club #28 93/94 Desert Springs Marriott 86/87 Price Club/Costco 93/94 One Eleven Town Ctr 88/89 Palm Desert CC #29 94/95 Mervyn's Center 92/93 Palm Desert Greens 04/05 Desert Crossing 95/96 Suncrest 04/05 Lucky's/Albertson Deep Canyon 96/97 Remodel 111 Town Ctr (Best Buy)97/98 Gardens on El Paseo 98/99 Remodel Westfield Mall (Sears, Barnes & Noble) 04/05 Sears Automotive 04/05 Lowes Home Improvement 05/06 Walmart / Sam's Supercenters 05/06 Kohl's 07/08 Golfsmith Extreme 08/09 El Paseo Village 09/10 Best Buy & Ulta 11/12 Remodel Westfield Mall (Dick's/H&M/Restaurants) 12/13 PGA Tour Superstore 12/13 Total Wine & More 13/14 Tesla Motors 15/16 Source: Riverside County Assessor thru HDL Coren & Cone -3.43%-4.70%-4.60% -0.49% 3.22% 5.08%5.02% 2.56%2.48%4.15% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Percent Increase in Assessed Valuation FY 2010 to FY 2019 $- $5,000 $10,000 $15,000 $20,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value in Millions Net Assessed Valuation - Historical Comparison FY 2010 to FY 2019 197 City of Palm Desert Supplemental FY 2019 and 2018 Breakdown of Basic 1% Property Tax Rate Not in Redevelopment Project Area Taxing Agency FY 2019 Rate FY 2018 Rate County General 28.177327% 2.728242% 5.873086% City of Palm Desert (1)0.000000% Desert Sands Unified School District 36.221587% 7.526714% 0.426231% 4.094919% 1.996808% 0.339927% 2.071624% 1.369698% 2.736607% 2.972906% 3.464324% General Purpose Basic 1%100.000000% (1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low Property Tax Cities. Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041. 198 City of Palm Desert Property Tax Rates Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Fiscal Year Basic County-wide Levy Total Direct Tax Rate Desert Sands Unified School District Desert Community College Dist. Coachella Valley Water District Coachella Valley Water District I.D. 58 2019 1.00000 1.00000 0.07418 0.03978 0.10000 0.00000 2018 1.00000 1.00000 0.07251 0.04030 0.10000 0.00000 2017 1.00000 1.00000 0.08599 0.02036 0.10000 0.00000 2016 1.00000 1.00000 0.10915 0.02087 0.10000 0.00000 2015 1.00000 1.00000 0.10984 0.02325 0.10000 0.00000 2014 1.00000 1.00000 0.10954 0.01995 0.10000 0.00000 2013 1.00000 1.00000 0.11156 0.01995 0.08000 0.00000 2012 1.00000 1.00000 0.11467 0.01995 0.08000 0.00000 2011 1.00000 1.00000 0.10036 0.01995 0.08000 0.00000 2010 1.00000 1.00000 0.08112 0.01995 0.06000 0.00000 Notes:Proposition 13 limits the ability of the city to raise the property tax rate. Source: CalMuni Statistics Inc City Direct Overlapping Rates 199 City of Palm Desert Principal Property Taxpayers Current and Ten Years Ago 2019 2010 Taxpayer of Tax Taxpayer of Tax Marriott Desert Springs 159,300,529$ 1.06% Marriott Desert Springs $211,183,579 1.58% WEA Palm Desert 156,347,145 1.04% WEA Palm Desert LP 138,765,071 1.04% Gardens on El Paseo LLC 136,659,663 0.91% Desert Crossing II 88,837,232 0.66% WVC Rancho Mirage Inc 129,981,784 0.86% Gardens SPE II 78,760,087 0.59% PRU Desert Crossing LLC 100,197,843 0.66% Elisabeth E. Stewart 67,483,248 0.50% Bighorn Golf Club 86,768,209 0.58% Monarch Sevilla Venture 64,358,476 0.48% CC Cimarron LP 66,605,500 0.44% Capri w/Canterra 60,136,516 0.45% First American Trust 56,373,930 0.37%57,174,952 0.43% 53,201,703 0.35% Time Warner Ent 55,354,986 0.41% Segovia Operations 51,675,739 0.34%47,461,794 0.35% 997,112,045$ 6.61%Total 869,515,941$ 6.50% 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 con tribute dissimilar amounts of total revenue to the City and Redevelopment Agency. Source: HdL Coren & Cone thru Riverside County Assessor 17/18 and HdL Coren & Cone thru Riverside County Assessor 08/09 200 City of Palm Desert Property Tax Levies and Collections Last Ten Fiscal Years Fiscal 2010 5,372,247 4,686,541 87.24%282,866 4,969,407$ 2011 5,312,856 4,560,417 87.24%486,495 4,776,795$ 2012 5,478,345 4,366,451 79.70% 1,111,894 5,478,345$ 2013 5,398,524 4,913,780 91.02%484,744 5,398,524$ 2014 5,623,740 5,048,787 89.78%574,953 5,623,740$ 2015 5,911,501 5,523,658 93.44%387,843 5,911,501$ 2016 6,212,993 5,943,252 95.66%269,741 6,212,993$ 2017 6,731,899 6,022,566 89.46%182,652 6,205,218$ 2018 6,729,952 6,553,297 97.38%173,642 6,726,940$ 2019 6,867,405 6,640,656 96.70%207,894 6,848,550$ (1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was received in the fiscal year 1993/94. (2) City of Palm Desert is a "No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973 which is when the City of Palm Desert incorporated and the Property Tax rates were zero. Based on current state law the County allocates 7% of the 1% assessed values within the City less the Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes. (3) Fiscal Year 1996/97 final total collected includes adjustments for No-Low property tax collections from prior years modified by the County of Riverside. The County adjusted the payment to the City of Palm Desert (FY 1995/96) for the annexation of Palm Desert Country Club. (4) Includes tax collections accrued as of June 30, 2019. (5) Includes amounts receivable for tax year 2018-2019 along with prior receivables due for prior tax years. Source: Riverside County Auditor Controller Office and City of Palm Desert Collected within the Fiscal Year of the Levy (1) (2) (3) Total Collections to Date 201 City of Palm Desert Supplemental Top 25 Sales Tax Generators Graph - Historical Sales Tax Trends June 30, 2019 Top 25 Sales Tax Generators (1) Primary Economic Category ALBERTSON'S FOOD CENTERS SUPERMARKETS APPLE STORES SPECIALTY STORES ARCO AM/PM SERVICE STATIONS ASHLEY FURNITURE HOME FURNISHINGS BEST BUY STORES LP APPLIANCE / ELECTRONICS CHEVRON SERVICE STATIONS SERVICE STATIONS COSTCO WHOLESALE COMPANY WHOLESALE GENERAL STORES J.C. PENNY COMPANY DEPARTMENT STORES JW MARRIOTT DESERT SPRINGS HOTEL / FOOD & BEVERAGE KOHL'S DEPARTMENT STORES DEPARTMENT STORES LOWE'S HOME CENTERS BLDG. MATLS-WHSLE MACY'S DEPARTMENT STORES DEPARTMENT STORES MOBIL SERVICE STATIONS SERVICE STATIONS NORDSTROM RACK DEPARTMENT STORES PGA TOUR SUPERSTORE GOLF & SPORTING GOODS SAKS FIFTH AVENUE DEPARTMENT STORES SAM'S CLUB WHOLESALE GENERAL STORES LEEDS & SONS JEWELERS SPECIALTY STORES CONSOLITED ELECTRICAL DISTRIBUTORS SPECIALTY WHOLESALE STORES SHELL SERVICE STATIONS SERVICE STATIONS SUPERIOR POOL PRODUCTS SPECIALTY WHOLESALE STORES TARGET STORES DEPARTMENT STORES TESLA MOTORS AUTOMOBILE DEALER TOTAL WINE & MORE SUPERMARKETS (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. $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 $19.0 $21.0 $23.0 $25.0 $27.0 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 Sales and Use Tax Trends FY 2010 - 2019 -2.57%.66%15.1% -8.3% 7.9%5.9% Amounts in Millions % = % Change from Prior Year 1.8% 8.1% 13.273 14.680 15.836 16.764 17.258 17.564 18.994 18.505 18.627 21.434 10.6% 2.9% 202 City of Palm Desert Ratios of Outstanding Debt by Type Last Ten Fiscal Years Business Type Activities Special Assessment/ Compensated Absences Total Percentage Total Debt Fiscal Local Obligation Claims and Judgments Note Capital Primary of Total Personal Per Year 2009 4,717,000 c 3,538,422 368,121 955,141 9,578,684 0.39% 200 2010 10,095,000 d,e 3,062,201 245,414 328,273 13,730,888 0.56% 287 2011 9,543,000 2,798,466 122,707 1,035,721 13,499,894 0.55% 2012 9,238,000 3,268,224 - 2,291,358 14,797,582 0.61% 2013 8,920,000 3,334,322 - 1,751,083 14,005,405 0.57% 2014 8,246,000 3,713,172 - 1,222,915 13,182,087 0.54% 2015 3,302,000 2,972,605 - 1,435,046 7,709,651 0.32% 2016 3,045,000 2,737,997 - 929,860 6,712,857 0.28% 2017 2,808,000 2,583,719 - 499,881 5,891,600 0.24% 2018 2,658,000 2,747,009 - 1,493,330 6,898,339 0.28% 2019 2,071,000 3,212,654 - 1,595,394 6,879,048 0.24% Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. a - Personal income, population and per capita information provided by California Department of Finance, and U.S. Census Bureau and/or estimated by City Finance using 1% growth rate. b - Special Assessment Government Activities includes Highlands Undergrounding AD No# 04-01, as of June 30, 2019 the balance was $1.310M. c - 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, 2019 the oustanding balance was $0.390M d - 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, 2019 the outstanding balance was $0.371M. e - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009(Federally Taxable). On September 2, 2014 the bonds were called in full. f - Personal income and Per Capita statistic includes government and business type activities combined. Governmental Activities 203 City of Palm Desert Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years General Bonded Debt Outstanding Percentage of Actual Special Assessment Taxable Value of Per Bonds Property Capita Note: There is no General Obligation Bonds from FY 2010 to FY 2019 204 City of Palm Desert Supplemental Special Assessment Information June 30, 2019 District Name\Description Utility 2006A Bond Issue Date 06/25/03 06/25/03 05/09/06 3/29/2007 Final Maturity Date 09/02/20 09/02/28 09/01/37 9/2/2037 Highest Interest Rate 5.25%5.375%5.424%5.100% Bond Issue Amount 1,153,000$ 2,340,000$ 67,915,000$ 29,430,000 Matured Principal 963,000$ 995,000$ 12,640,000$ 5,860,000 Called Principal 10,000$ 160,000$ 27,015,000$ 2,305,000 Outstanding Bonds (4)180,000$ 1,185,000$ 28,260,000$ 21,265,000 Redemption Premium 3.00%3.00%3.00%3.00% Original Parcels 121 201 78 859 Active Parcels 118 193 67 777 Reserve Requirement 69,180$ 164,381$ 2,465,700$ 1,755,979$ Reserve Balance 18/19 71,872$ 167,115$ 2,617,752$ 1,844,422$ Principal Due 19/20 (2)90,000$ 90,000$ 980,000$ 735,000 Principal Levied 18/19 (3)93,066$ 93,950$ 980,000$ 769,362 Interest Due 19/20 (2)7,065$ 60,671$ 1,485,625$ 1,054,885 Interest Levied 18/19 (3)9,468$ 64,185$ 1,510,125$ 1,174,384 18/19 Delinquency Rate 1.53%1.87%0.29%0.08% Arbitrage Installment Computation Date: 90% Rebate Due 06/25/23 06/25/23 05/08/21 (1) Reserve Balances are as of 6/30/19. (2) Amount represents principal and interest collected during the FY 18/19 tax roll for Debt Service Payment due in FY 19/20. (3) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments. (4) Outstanding bond balance at June 30, 2019. (5) The schedule presents the information for each individual local obligation bonded district. Assessment Districts 94-3 Merano and 01-01 Silver Spur were refunded and obligated to pay Debt Service to Series 2003 Assessment Revenue Bonds see note 16 for additional information. Source: Wildan Financial Annual Report 205 City of Palm Desert Direct and Overlapping Government Activities Debt June 30, 2019 City's Share of Total Debt 6/30/19 % Applicable (1) Debt 6/30/19 349,425,000$ 18.550% 64,818,338$ 381,670,000 34.051%129,962,452 386,308,048 4.381%16,924,156 City of Palm Desert 2003 Assessment Revenue Bonds 1,355,000 100.000% 1,355,000 City of Palm Desert Community Facilities District No. 2005-1 28,260,000 100.000%28,260,000 City of Palm Desert Limited Obligation Improvement Bonds, Series 2007 21,265,000 100.000%21,265,000 262,584,946$ OVERLAPPING GENERAL FUND OBLIGATION DEBT: Riverside County General Fund Obligations 760,133,611$ 5.367% 40,796,371$ 243,850,000 5.367%13,087,430 37,000,000 34.051%12,598,870 472,521 26.490%125,171 66,607,842$ Less:Riverside County Supported Obligations 93,230 66,514,612$ OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)504,773,028$ 0.237-100%234,568,584$ TOTAL CITY DIRECT DEBT 3,666,394$ (3) TOTAL GROSS OVERLAPPING DEBT 566,006,372$ TOTAL NET OVERLAPPING DEBT 565,913,142$ GROSS COMBINED TOTAL DEBT 569,672,766$ (2) NET COMBINED TOTAL DEBT 569,579,536$ (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. (3) Includes special assessment debt with government commitment, enterprise obligations with government commitment, and lease revenue bonds; if applicable. Ratios to 2018-2019 Adjusted Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.75% Total Direct Debt 0.02% Gross Combined Total Debt 3.79% Net Combined Total Debt 3.79% Ratios to Redevelopment Successor Agencies Incremental Valuation (9,770,869,697)$ Total Overlapping Tax Increment Debt 2.40% Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department 206 City of Palm Desert Legal Debt Margin Information Last Ten Fiscal Years Assessed Value 15,044,824,909$ Debt Limit (15% of Assessed Value) (1)2,256,723,736 Debt Applicable to Limit: General Obligation Bonds 1,310,000 Less: Amount set aside for repayment of general obligation debt - Total Debt Applicable to Limit - 2,255,413,736$ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1,999,731,410 1,969,825,360 1,884,624,932 1,811,620,824 1,869,699,132 1,963,741,235 2,059,815,120 2,114,442,742 2,167,115,649 (1) Section 43605 of the California Government Code. Source: California Municipal Statistic, Inc. San Francisco Legal Debt Margin Calculation for Fiscal Year 2019 FISCAL YEAR 207 City of Palm Desert Pledge-Revenue Coverage Last Ten Fiscal Years Special Special Fiscal Assessment Assessment Year Collections Principal Interest Coverage Collections Principal Interest Coverage 2009 a 8,486,467 2,816,000 5,666,827 1.0004 33,095,785 12,610,000 20,043,623 2010 c 6,304,563 3,793,000 5,515,677 0.6773 33,292,785 14,145,000 19,516,455 2011 9,695,868 3,452,000 5,595,543 1.0717 39,400,572 22,240,000 18,767,205 2012 8,822,163 3,332,000 4,897,651 1.0720 32,941,958 2013 9,524,786 3,786,896 5,255,558 1.0533 33,473,418 2014 2015 10,848,129 2016 8,537,227 25,401,000 2017 5,896,670 3,192,000 3,233,399 0.9177 37,535,680 2018 5,590,479 3,545,000 3,088,864 0.8427 23,428,001 2019 5,608,312 2,427,000 2,942,348 1.0445 25,986,960 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. a - The City issued $2.015 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection will commence during the fiscal year 2009-2010 with the first interest payment paid on March 2, 2010. b - Tax increment bonds are backed by property tax increment based on calculation provided by the Riverside County tax assessor office. Additional information on tax increment can be found in the notes to the financial statements. c - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection will commence during the fiscal year 2010-2011 In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2 The first principal payment was paid on September 2, 2010. d- A portion of the $50.51 (2007) and $17.915 (2008) million CFD 2005-1 (University Park) was prepaid in the amount of $6.269 Million. The prepaid $6.269M and $2.280 (2004-1) were called during on September 2, 2014. e- The total amount payable for the bonded obligations is disbursed by the State of California Department of Finance to the City of Palm Desert Successor Agency. The annual collection equal the annual obligations. f The City called the $5.225 Million Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable) in full on September 2, 2014 in the amount of $4.485 Million. The Energy Fund used the remaining $5.225 Bond Funds in the amount of $2.155 Million in addition to the $2.5 Million loan from the City General Fund as proceeds to call the bonds. g The City of Palm Desert loaned the Energy Fund $2.5 Million to call the $5.225 Million Energy Independence Program Lease Revenue Bonds, Series 2009 (Federally Taxable). The $2.5 Million is included as Special Assessment Collections. h- During the Fiscal Year 2015-16 the Communities Facilities District 2005-1 (University Park Series, Special Tax Bonds Series 2006A and Series 2007 defeased $20.885M of the original issued $67.715M. i- During the Fiscal Year 2016-17 the Successor Agency issued four series of bonds (1) the Tax Allocation Refunding Bonds, 2017 Series A ($52.39M), (ii) Taxable Tax Allocation Refunding Bonds, 2017 Series B ($140.130M), Tax allocation Refunding Bonds, 2017 Series H-A ($7.365M), and (iv) Taxable Tax Allocation Refunding Bonds, 2017 H-B ($45.815M). See Note 18 Tax Allocation Bonds. The 2017 Refunding Bonds refunded all of the tax allocation revenue bonds; with the exception of the Project Area No. 1 2007A Bonds, and the Project Area No. 2 2003 Bonds. Special Assessment Bonds Tax Increment b Debt Service Debt Service 208 City of Palm Desert Demographic and Economic Statistics Last Ten Calendar Years Calendar Percentage Per Capita City Riverside Percentage County Year City Increase Personal Personal Unemployment County Increase End Population (Decrease) a Income CY Rate b Population (Decrease) Rate b 2019 53,625 1.62% 2,873,512,560$ 53,585$ 4.90% 2,440,124 1.00% 4.40% 2018 52,769 4.00% 2,831,046,858$ 53,650$ 5.00% 2,415,955 1.31% 4.80% 2017 50,740 2.85% 2,789,208,727$ 54,971$ 4.00% 2,384,783 1.57% 5.70% 2016 49,335 -3.37% 2,747,988,894$ 55,701$ 4.20%2,347,828 1.71%6.70% 2015 51,053 1.26% 2,707,378,221$ 53,031$ 4.60%2,308,441 1.25%6.50% 2014 50,417 0.94% 2,667,367,705$ 52,906$ 4.90%2,279,967 1.10%8.40% 2013 49,949 0.97% 2,627,948,478$ 52,613$ 6.00%2,255,059 1.23% 10.20% 2012 49,471 0.73% 2,589,111,801$ 52,336$ 7.74%2,227,577 0.44% 11.99% 2011 49,111 -5.68% 2,550,849,065$ 51,940$ 8.67%2,217,778 3.66% 14.44% 2010 52,067 1.08% 2,513,151,788$ 48,268$ 8.80%2,139,535 1.51% 14.65% a - Personal Income estimated based on average growth rate of previous four years. The growth rate factor used was 1.5%. Income data will be updated once the actual data is available. b - Unemployment rate for fiscal year 18/19 is based on annual information from State of California Employment Development Department Labor Market Information Division (not seasonally adjusted) Sources: State Department of Finance, State Employment Development Department 209 City of Palm Desert Principal Employers Current and Ten Years Ago Employer Employees Rank Employer Employees Rank JW Marriot-Desert Springs Resort & DS Villas 2,304 1 9.80%2,000 1 6.08% Universal Protection Services Universal Protection Services Guthy Renker Corp. Organization of Legal Pro's Securitas-Security Service USA Sunshine Landscape Desert Arc Costco Wholesale WalMart Super Center Bighorn Golf Club Marriot Desert Springs Villas Whole Foods Market Macy's West Target Toscana Country Club Tommy Bahama Bighorn Golf Club Totals 6,425 27%Totals 6,930 21% Sources: Reference USA, CA Employment Development Department - Federal and State Government not included 2019 2010 210 City of Palm Desert Supplemental Miscellaneous Statistics June 30, 2019 City/ Municipal Government Form of Government:Council - City Manager/Charter City November 26, 1973 109 Full-time Employees 26.96 Square Miles Located 117 miles east of Los Angeles and 515 miles 170 paved street miles 7,657 active business licenses 17 hotels, 2,616 rooms CONTRACT SERVICES: Contract with Riverside County Sheriff - 75 positions plus 37 support staff Riverside County Animal Services Coachella Valley Water District Burrtec - Waste Management Southern California Edison Southern California Gas Verizon Palm Springs International Airport Public Education 4 1 1 1 1 1 Insurance Coverage Calif. Joint Powers Insurance Authority $50 Million/Event $2 Million up to $50 Million limit Calif. Joint Powers Insurance Authority $1 Million Calif. Joint Powers Insurance $10 Million Calif. Joint Powers Insurance Based on Prop. Value Health Insurance Source: City of Palm Desert 211 City of Palm Desert Full-time Equivalent City Government Employees by Function / Program Last Ten Fiscal Years Function / Program 2019 2018 2017 2016 2015 2014 City 31 31 32 32 34 34 33 26 31 31 28 29 29 28 26 25 24 24 25 26 172 179 170 163 169 173 157 162 155 39 39 39 40 40 40 38 40 47 49 Totals 281 288 281 276 282 285 264 269 282 (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. a - As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013. b - On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriff's Department 212 City of Palm Desert Operating Indicators by Function / Program Last Ten Fiscal Years Function / Program 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Business License Inspections * * * *24 33 196 477 515 473 Contracted Services - Burrtec Waste (1) 59,154 56,346 54,301 52,772 54,865 57,935 52,131 49,205 53,108 27,391 28,119 26,651 23,818 24,611 26,424 24,862 23,588 22,867 Public Safety 758 1,654 1,620 1,284 1,946 1,348 986 1,012 1,134 375 575 587 712 794 386 198 569 332 933 3,525 7,012 6,939 6,223 5,525 5,284 5,080 6,216 8,360 10,009 9,984 9,617 9,285 8,628 8,235 7,907 7,151 7,720 93 90 68 103 88 106 104 101 107 104 5,397 3,378 1,274 2,118 2,989 2,552 3,048 5,235 4,651 3,912 3,644 4,734 4,704 4,909 5,552 4,548 3,448 3,711 13,965 18,601 23,542 24,756 24,057 24,830 19,107 14,749 14,069 Public Works 31.6 7.3 25.8 2.9 8 34 23 60 5 8 Parks, recreation & culture Athletic Field Permits Issued 2,990 2,934 3,197 2,997 4,430 6,548 2,635 3,682 6,050 119 121 106 104 283 247 128 266 286 226 52,203 60,769 51,694 64,493 53,426 50,204 53,062 69,240 30,298 (2)52,102 53,739 58,023 60,359 64,103 43,545 48,663 45,909 4,329 - (1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals to provide services. Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services, legal services and landscape maintenance. (2) Aquatic Center operations began in June 2011, managed by the YMCA. (3) New methods of street resurfacing have improved efficiency, therefore equaling more miles resurfaced. (*)Per Building & Safety Department business license inspections are no longer done. Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste and The YMCA. 213 City of Palm Desert Capital Asset Statistics by Function / Program Last Ten Fiscal Years Function / Program 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Collection trucks 25 24 24 35 30 30 36 36 51 51 Public Safety - Police & Fire Police Stations 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 2 29 30 29 29 29 26 28 31 31 26 6 9 9 11 10 10 10 10 10 10 3 3 3 3 3 3 3 3 3 3 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Reserve 4 plus 1 Rsrvd 4 plus 1 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 2 Rsrvd 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Reserve 4 plus 3 Rsrvd 4 plus 3 Rsrvd 4 plus 1 Rsrvd 4 plus 1 Rsrvd 3 plus 1 Spprt 4 3 3 3 3 3 3 3 3 3 Public Works 170 170 170 170 170 170 170 174 159 159 99 99 99 98 98 98 98 98 97 99 Parks, recreation & culture 201 201 201 201 201 201 201 201 201 201 13 13 13 13 13 13 13 13 13 13 16 16 16 16 16 16 16 16 16 16 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 11 11 11 11 11 11 11 11 11 11 10 10 10 10 10 10 10 10 10 10 8 8 8 8 8 8 8 8 8 8 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 (2)1 1 1 1 1 1 1 1 1 Commercial Office Space 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 50,322 91%82%84%90%90%86%88%83%90% 97% 7 7 7 9 8 9 8 10 10 10 4 3 3 4 3 4 4 5 7 7 3 2 3 1 1 4 5 3 4 6 31,607 30,907 32,287 33,127 30,907 31,921 31,321 32,021 32,696 34,617 6,621 4,061 4,061 3,561 6,269 3,294 4,467 5,215 5,663 4,735 7,468 6,218 6,938 8,688 8,025 8,025 8,513 4,310 7,350 10,212 4,626 9,136 8,416 4,946 5,121 7,082 6,021 8,776 4,613 758 Municipal Golf Course 2 2 2 2 2 2 2 2 2 2 36 36 36 36 36 36 36 36 36 36 172 172 172 172 172 172 172 172 172 160 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 39,000 33,000 48,646 46,620 39,424 39,366 44,845 45,841 45,645 45,005 44,745 45,988 43,523 43,712 39,931 40,910 42,407 43,160 38,669 41,666 39,178 37,146 92,169 90,332 79,355 80,276 87,252 89,001 84,314 86,671 83,923 83,134 (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 Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste 214 Note: This section is not required by GASB No. 44, however, City believes that statistical information is beneficial to the reader. On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see note 19 and note 20. Supplemental Redevelopment Agency Statistical Section City of Palm Desert, California 215 Successor Agency Project Areas CO O K S T MO N T ER E Y A V E FRED WARING DR PORT OL A A V E HOVLEY LN E STATE HWY 111 STAT E H WY 7 4 FRANK SINATRA DR EL PASEO GERALD FORD DR WASHIN G TO N S T ELDO RA D O D R WARN E R T RL HOVLEY LN W OA S I S C L UB D R TAMARISK ROW DR CALIFORNIA AVE SAN P A B L O A VEPARK VIEW DR MESA VIEW DR DE E P C AN Y O N R D MAGNESIA FALLS DR DINAH SHORE DR CO O K S T HAYSTACK RD TO WN CE N T E R WAY MO N T ER E Y A V E PORTOLA AVE PORT OL A A V E GRAPEVINE ST SHADOW MOUNTAIN DR FAIRWAY DR HOVLEY LN EPORT OL A A V E FRED WARING DR COUNTRY CLUB DR FRANK SINATRA DR PORT OL A A V E COUNTRY CLUB DR MO N T ER E Y A V E CO O K S T INTER S T ATE H W Y 1 0 INTER S T ATE H W Y 1 0 Project Area No. 1Original1975 Project Area No. 1Added Territory1982 Project Area No. 31991 Project Area No. 21987 Project Area No. 41993 0 1 20.5 Miles Project Area No. 1 - Original (1975) Project Area No. 1 - Added Territory (1982) Project Area No. 2 (1987) Project Area No. 3 (1991) Project Area No. 4 (1993) City Limits City of Palm Desert July, 2004 216 City of Palm Desert Redevelopment Agency Tax Allocation Bond Issue Information June 30, 2019 DESCRIPTION $15,745,000 Tax Allocation Revenue Bond 03/26/23 DESCRIPTION Tax Allocation 1 Tax Allocation 2 01/31/22 DESCRIPTION Housing Tax Allocation 3 Tax Allocation 4 01/31/22 217 City of Palm Desert Historical Tax Increment/ Redevelopment Property Tax Trust Fund Summary All Project Areas Project Area No. 1 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Gross Tax Increment 51,298,203 53,437,088 56,610,029 58,222,677 59,842,517 62,844,689 Less: Housing Set-Aside*10,259,641 10,687,418 11,322,006 11,644,535 11,968,503 12,568,938 SB 2557 673,261 686,944 629,449 725,403 662,238 594,754 Gross Pass-Throughs 20,111,377 21,241,903 22,961,604 25,052,727 22,919,420 25,953,291 Net Tax Increment 20,253,925 20,820,823 21,696,970 20,800,012 24,292,356 23,727,706 RPTTF Amount Deposited 25,090,381 26,530,801 24,696,424 25,131,004 19,923,194 20,331,658 Project Area No. 2 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Gross Tax Increment 13,556,184 15,232,096 16,232,329 16,302,895 16,916,067 17,401,509 Less: Housing Set-Aside*2,711,237 3,046,419 3,246,466 3,260,579 3,383,213 3,480,302 SB 2557 179,214 192,900 180,457 202,348 187,481 165,500 Gross Pass-Throughs 4,967,602 5,665,961 6,078,194 6,103,481 6,372,798 6,609,645 Net Tax Increment 5,698,132 6,326,816 6,727,213 6,736,487 6,972,575 7,146,063 RPTTF Amount Deposited 7,017,531 5,441,721 5,547,427 5,887,814 5,516,674 5,629,776 Project Area No. 3 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Gross Tax Increment 3,760,421 3,754,999 4,039,902 4,360,574 4,364,606 4,487,719 Less: Housing Set-Aside*752,084 751,000 807,980 872,115 872,921 897,544 SB 2557 49,871 48,901 45,175 52,745 8,947 42,853 Gross Pass-Throughs 1,377,700 1,371,786 1,510,219 1,656,158 1,662,390 1,730,228 Net Tax Increment 1,580,766 1,583,312 1,676,528 1,779,556 1,820,347 1,817,094 RPTTF Amount Deposited 1,357,678 1,237,930 1,290,623 1,295,156 1,422,709 1,451,877 Project Area No. 4 FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 Gross Tax Increment 11,941,800 13,057,891 13,889,272 14,287,533 14,685,301 15,251,204 Less: Housing Set-Aside*2,388,360 2,611,578 2,777,854 2,857,507 2,937,060 3,050,241 SB 2557 156,818 166,634 154,976 178,812 162,715 145,017 Gross Pass-Throughs 7,901,830 8,381,422 8,866,804 9,433,947 9,943,062 10,454,725 Net Tax Increment 1,494,792 1,898,257 2,089,637 1,817,267 1,642,464 1,601,222 RPTTF Amount Deposited 3,675,440 3,071,966 2,443,507 2,610,660 4,834,978 4,934,105 *For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution. 218 &LW\RI3DOP'HVHUW )UHG:DULQJ'ULYH 3DOP'HVHUW&$ ZZZFLW\RISDOPGHVHUWRUJ