COMPREHENSIVE ANNUAL FINANCIAL

Transcription

COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
CITY OF PALM DESERT, CALIFORNIA
For the Fiscal Year ended
June 30, 2014
Prepared by the Finance Department
City Treasurer/Director of Finance
Paul S. Gibson, CCMT
Assistant Finance Director
Jose Luis Espinoza, CPA
Finance Staff
(in alphabetical order by positions and names)
ACCOUNTING TECHNICIAN II
James Bounds
DEPUTY CITY TREASURER
Thomas Jeffrey
MANAGEMENT ANALYST II
Jenny Barnes
Horacio Celaya
G.I.S. TECHNICIAN
John Urkov
OFFICE ASSISTANT II
Sylvia Carrasco
Sharon Christiansen
INFORMATION SYSTEMS MANAGER
Clayton von Helf
SENIOR FINANCIAL ANALYST
Anthony Hernandez
Diana Leal
INFORMATION SYSTEMS TECHNICIAN
Troy Kulas
SENIOR OFFICE ASSISTANT
Claudia Jaime
ADMINISTRATIVE SECRETARY
Niamh Ortega
INFORMATION SYSTEMS TECHNICIAN
Ray Santos
CITY OF PALM DESERT
TABLE OF CONTENTS
JUNE 30, 2014
Page
Number
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
GFOA Certificate of Achievement for Excellence in Financial Reporting
List of Principal Officials
Organization Chart
i
vii
xi
xiii
xiv
FINANCIAL SECTION
AUDITORS' REPORT
Independent Auditors' Report
1
MANAGEMENT’S DISCUSSION AND ANALYSIS
5
BASIC FINANCIAL STATEMENTS
Exhibit A - Statement of Net Position
17
Exhibit B - Statement of Activities
18
Exhibit C - Balance Sheet - Governmental Funds
22
Exhibit D - Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
25
Exhibit E - Statement of Revenues, Expenditures and Changes in Fund
Balances - Governmental Funds
26
Exhibit F - Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
28
Exhibit G - Statement of Net Position - Proprietary Funds
29
Exhibit H - Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds
30
i
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2014
Page
Number
BASIC FINANCIAL STATEMENTS (CONTINUED):
Exhibit I - Statement of Cash Flows - Proprietary Funds
31
Exhibit J - Statement of Net Position - Fiduciary Funds
33
Exhibit K - Statement of Changes in Net Position - Fiduciary Funds
34
Notes to Basic Financial Statements
35
REQUIRED SUPPLEMENTARY INFORMATION
Schedule 1 - Schedules of Funding Progress:
CalPERS Defined Benefit Plan
Other Post-Employment Benefit Plan
121
121
Schedule 2 - Budgetary Comparison Schedule - General Fund
123
Schedule 3 - Budgetary Comparison Schedule - Prop A Fire Tax
Special Revenue Fund
124
Note to Required Supplementary Information
125
SUPPLEMENTARY SCHEDULES
General Fund:
Schedule 4 - Budgetary Comparison Schedule by Department - General Fund
127
128
Other Governmental Funds - Combining Statements:
Schedule 5 - Combining Balance Sheet - Other Governmental Funds
133
134
Schedule 6 - Combining Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Governmental Funds
ii
135
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2014
Page
Number
SUPPLEMENTARY SCHEDULES (CONTINUED)
Other Governmental Funds - Other Special Revenue:
Schedule 7 - Combining Balance Sheet - Other Special Revenue Funds
in Fund Balances - Other Special Revenue Funds
Schedule 9 -
Schedules of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual - Special Revenue Funds:
A. Traffic Safety
B. Gas Tax
C. Housing Mitigation Fees
D. Community Development Block Grant
E. Public Safety Police Grants
F. El Paseo Assessment District
G. Landscape and Lighting Districts No. 1-17
Other Governmental Funds - Other Debt Service:
Schedule 10 - Balance Sheet - Other Debt Service Fund
Schedule 11 - Statement of Revenues, Expenditures and Changes
in Fund Balances - Other Debt Service Fund
Other Governmental Funds - Other Capital Projects:
Schedule 12 - Combining Balance Sheet - Other Capital Projects Funds
137
140
144
148
149
150
151
152
153
154
155
156
157
159
160
in Fund Balances - Other Capital Projects Funds
164
Agency Funds:
Schedule 14 - Combining Statement of Assets and Liabilities - All Agency Funds
169
170
Schedule 15 - Combining Statement of Changes in Assets and
Liabilities - All Agency Funds
iii
171
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2014
Page
Number
STATISTICAL SECTION
Description of Statistical Section
173
Financial Trends
Net Position by Component
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Graphs - Changes in Fund Balances of Governmental Funds
Supplemental Historical General Fund Revenues
Supplemental Graph - Historical General Fund Revenues
Supplemental Historical General Fund Expenditures
Supplemental Graph - Historical General Fund Expenditures
Supplemental Historical General Revenue and Expenditures Per Capita
174
175
177
178
179
180
181
182
183
185
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property
Historical Net Assessed Taxable Values Citywide and
Graph - Assessed Valuation Growth
Supplemental FY 2014 and 2013 Breakdown of Basic 1% Property
Tax Rate Not in Redevelopment Project Area
Property Tax Rates Direct and Overlapping Property Tax Rates
Principal Property Taxpayers
Property Tax Levies and Collections
Supplemental Top 25 Sales Tax Generators and
Graph - Historical Sales Tax Trends
Supplemental Taxable Sales by Category
Supplemental Principal Sales Tax Remitters
192
193
194
Debt Capacity
Ratios of Outstanding Debt by Type
Ratios of General Bonded Debt Outstanding
Supplemental Special Assessment Information
Direct and Overlapping Government Activities Debt
Legal Debt Margin Information
Pledged-Revenue Coverage
195
196
197
198
199
200
iv
186
187
188
189
190
191
CITY OF PALM DESERT
TABLE OF CONTENTS
(CONTINUED)
JUNE 30, 2014
Page
Number
STATISTICAL SECTION
(CONTINUED)
Demographic and Economic Information
Demographic and Economic Statistics
Principal Employers
Supplemental Miscellaneous Statistics
201
202
203
Operating Information
Full-time Equivalent City Government Employees by Function/Program
Operating Indicators by Function/Program
Capital Asset Statistics by Function/Program
204
205
206
SUPPLEMENTAL REDEVELOPMENT AGENCY
STATISTICAL SECTION
Redevelopment Agency Project Areas Map
Project Area Statistics
Tax Allocation Bond Issue Information
FY 2013/2014 Breakdown of Basic 1% Property Tax Levy Rates
Historical Net Assessed Taxable Values:
Redevelopment Project Area No. 1 - Original
Change in Taxable Values:
Redevelopment Project Area No. 1 - Original
Redevelopment Project Area No. 1 - Amended
Redevelopment Project Area No. 1 - Amended
Redevelopment Project Area No. 2
v
209
211
212
213
214
215
216
217
218
219
220
221
222
223
THIS PAGE INTENTIONALLY LEFT BLANK
vi
xi
xii
CITY OF PALM DESERT
List of Principal Officials
as of June 30, 2014
City Council - Manager Form of Government
CITY COUNCIL
VAN G. TANNER
Mayor
SUSAN MARIE WEBER
Mayor Pro-Tempore
JEAN M. BENSON
Council Member
JAN C. HARNIK
Council Member
ROBERT A. SPIEGEL
Council Member
CITY ADMINISTRATION
JOHN M. WOHLMUTH
City Manager
City Attorney - Best, Best & Krieger
Director of Finance/City Treasurer
David J. Erwin
Paul S. Gibson
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
JOHN M. WOHLMUTH
Executive Director
xiii
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and
Members of the City Council
City of Palm Desert, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund and the aggregate
remaining fund information of the City of Palm Desert, California, (the City) as of and for the year
ended June 30, 2014, and the related notes to the basic financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these basic financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the basic financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the basic financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the City’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the City’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
-12875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
Opinions
In our opinion, the basic financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information
of the City, as of June 30, 2014, 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 schedules of funding progress and budgetary comparison
schedules, as listed in the table of contents, be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the management’s discussion and
analysis and the schedules of funding progress in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during the audit of the basic financial statements. We do not express an opinion or provide
any assurance on the management’s discussion and analysis and the schedules of funding progress
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance. The budgetary comparison schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements of the City or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the budgetary comparison schedules are fairly stated
in all material respects in relation to the basic financial statements taken as a whole.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, supplementary
schedules and statistical section are presented for purposes of additional analysis and are not a required
part of the basic financial statements.
The supplementary schedules are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the supplementary schedules are fairly stated in all material respects in relation to the basic
financial statements as a whole.
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Other Matters (Continued)
Other Information (Continued)
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
November 17, 2014, on our consideration of the City’s internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal
control over financial reporting and compliance.
Irvine, California
November 17, 2014
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CITY OF PALM DESERT
MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Palm Desert’s financial performance for the fiscal year ended
June 30, 2014 provides: a comparison of current year to prior year ending results based on the
government-wide statements; an analysis of the City’s overall financial position and results of operations
to assist users in evaluating the City’s financial position; a discussion of significant changes that occurred
in funds; and significant budget variances. In addition, it describes the activities during the year for capital
assets and long-term debt. We end our discussion and analysis with a description of known facts,
decisions, and conditions that are expected to have a significant effect on the financial position or results
of operations. Please read it in conjunction with the transmittal letter and the City’s financial statements.
FINANCIAL HIGHLIGHTS







The City’s total assets exceeded its liabilities by $788.17 million (net position).
The City’s governmental activities net position increased $10.14 million, and the net position of
the business-type activities decreased $0.64 million.
During the year, the City’s revenues were $95.77 million and expenses were $86.07 million in its
governmental activities, excluding transfers, compared to fiscal year 2013, where expenses were
$0.74 million more than revenues.
In the City’s business-type activities, expenses were $0.20 million more than the $9.17 million
generated in green fees, merchandise sales, rental income and other revenues compared to the
prior year, where business-type activities revenues were $0.27 million less than its expenses.
The City’s governmental activities program revenues and general revenues increased by
$19.25 million, or 25.16 percent from prior year, while program expenses increased $8.81 million,
or 11.40 percent from prior year.
Business-type activities revenues decreased by $0.20 million, from $9.37 million to $9.17 million.
Expenses decreased by $0.27 million from the prior year.
The revenues available for expenditures were $1 million more than budgeted in the General
Fund. The City kept General Fund expenditures within spending limits by $2.23 million.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and
Statement of Activities (on Pages 17, 18 and 19) provide information about the activities of the City as a
whole and present a long-term view of the City’s finances. Fund financial statements start on Page 22.
For governmental activities, these fund statements tell how these services were financed in the short term
as well as what remains for future spending. Fund financial statements also report the City’s operation in
more detail than the government-wide statements by providing information about the City’s most
significant funds and other funds. The remaining fiduciary fund statement provides financial information
about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the
government.
See independent auditors’ report.
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REPORTING THE CITY AS A WHOLE
The Statement of Net Position and the Statement of Activities:
Our analysis of the City as a whole begins on Page 17. One of the most important questions asked about
the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?”
The Statement of Net Position and the Statement of Activities report information about the City as a whole
and about its activities in a way that answers this question. These statements include all assets and
liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most
private-sector companies. All of the current year’s revenues and expenses are taken into account
regardless of when cash is received or paid.
These two statements report the City’s net position and changes in them. Net position is the difference
between total assets and deferred outflows of resources less liabilities, which is one way to measure the
City’s financial health, or financial position. Over time, increases or decreases in the City’s net position
are an indication of whether its financial health is improving or deteriorating. Other non-financial factors
should be considered, however, such as changes in the economy that could cause a decrease in
consumer spending.
In the Statement of Net Position and the Statement of Activities, we separate City Activities as follows:
Governmental activities – Most of the City’s basic services are reported in this category, including
general administration (city manager, city clerk, finance, etc.), police and fire protection, public works,
parks & recreation, and culture departments. Property taxes, sales tax, transient occupancy tax, user
fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and
other revenues finance these activities.
Business-type activities – The City charges a fee to customers to cover all or most of the cost of certain
services it provides. The City’s municipal golf course, Desert Willow, and the City’s Parkview Office
Complex activities are reported in this category.
Component unit activities – The City includes one separate legal entity in its report – the Palm Desert
Recreation Facilities Corporation. Although legally separate, this “component unit” is important because
the City is financially accountable for it.
REPORTING THE CITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements:
The fund financial statements provide detailed information about the most significant funds and other
funds, not the City as a whole. Some funds are required to be established by State law and by bond
covenants. However, management established many other funds to help it control and manage money
for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants,
and other resources. The City has three types of funds: governmental, proprietary and fiduciary.
Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus
on how money flows in and out of those funds and the balances left at year-end that are available for
spending. These funds are reported using an accounting method called modified accrual accounting,
which measures cash and all other financial assets that can readily be converted to cash. The
governmental fund statements provide a detailed short-term view of the City’s general government
operations and the basic services it provides. Governmental fund information helps determine whether
there are more or fewer financial resources that can be spent in the near future to finance the City’s
programs. The differences of results in the Governmental Fund financial statements to those in the
Government-wide financial statements are explained in a reconciliation following each Governmental
Fund financial statement.
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Proprietary funds – When the City charges customers for the services it provides, these services are
generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities
are reported in the Statement of Net Position and the Statement of Activities. The City’s enterprise funds
are the same as the business-type activities we report in the government-wide statements, but provide
more detail and information such as a statement of cash flows.
Fiduciary funds – Used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statement because the resources of
those funds are not available to support the City of Palm Desert operations. The accounting used for
fiduciary funds is much like that used for proprietary funds.
THE CITY AS TRUSTEE
Reporting the City’s Fiduciary Responsibilities:
The City is the trustee, or fiduciary, for the Successor Agency to the Palm Desert Redevelopment Agency
private-purpose trust fund and certain agency funds held on behalf of developers and its employees’
retiree service stipend fund. The City’s fiduciary activities are reported in separate Statements of Net
Position, Statement of Changes in Net Position, Statement of Assets and Liabilities, and Statement of
Changes in Assets and Liabilities. We exclude these activities from the City’s other financial statements
because the City cannot use these assets to finance its operations. The City is responsible for ensuring
that the assets reported in these funds are used for their intended purposes.
THE CITY AS A WHOLE
The City’s combined net assets increased $9.50 million from $778.67 million to $788.17 million. A
separate review of the net change in the governmental and business-type activities is provided for the
reader. Our analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City’s
governmental and business-type activities.
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TABLE 1
NET POSITION
(IN MILLIONS)
As of June 30, 2014 and 2013
Governmental
Activities
2014
2013
Current and restricted assets
Capital assets
$
TOTAL ASSETS
Deferred outflows of resources
$
281.52
466.25
$ 258.23
465.76
747.77
723.99
0.02
Long-term liabilities
outstanding
Other liabilities
$
0.10
Business-Type
Activities
2014
2013
$
4.82
73.23
$
78.05
$
-
$
Total
2014
2013
4.78
74.64
$ 286.34
539.48
$ 263.01
540.40
79.42
825.82
803.41
-
$
0.02
$
0.10
11.96
23.59
12.25
9.74
1.22
0.90
1.75
1.10
13.18
24.49
14.00
10.84
TOTAL LIABILITIES
35.55
21.99
2.12
2.85
37.67
24.84
Net position:
Net investment in capital
assets
Restricted
Unrestricted
466.25
140.46
105.53
465.76
132.74
103.60
72.01
3.92
72.89
3.68
538.26
140.46
109.45
538.65
132.74
107.28
712.24
$ 702.10
$ 75.93
$ 76.57
$ 788.17
$ 778.67
TOTAL NET
POSITION
$
Dollars in Millions
Table 1 ‐ Graph Total Assets & Liabilities
1,200
1,000
800
600
400
200
‐
Total Assets
Total Liabilities
2014
2013
Governmental
Activities
2014
2013
Business‐Type
Activities
-8-
2014
2013
Total
The City’s governmental activities net position increased by 1.44 percent, or $10.14 million. The City’s net
position is made up of three components: Net investment in capital assets; restricted net position; and
unrestricted net position. For governmental activities, unrestricted net position, which represents the part
of net position that can be used to finance day-to-day operations, accounted for 14.82 percent of the
overall total net position. Unrestricted net position increased $1.93 million from $103.60 million in 2013 to
$105.53 million in 2014. This is an indication that the City’s Governmental Activities financial position
recognized an increase from prior year. The City has $1.93 million more of unrestricted funds that can be
used to finance its operations. The increase is attributable to a raise in sales sax and transient occupancy
tax.
The increase in restricted net position of $7.72 million was due to the following: restricted capital projects
decreased by $3.69 million due to capital projects expenses; restricted special projects increased by
$11.41 million. The majority of the increase is attributable to Low and Moderate Income Housing Asset
Fund held by the Palm Desert Housing Authority. On May 15, 1991 the County of Riverside Superior
Court entered final judgment on consolidated actions, Indio Case Nos. 51123 and 51143 (the Judgment),
requiring the former Redevelopment Agency to use at least 20% of its tax increment, if necessary, to
develop, rehabilitate or otherwise financially assist a certain number of affordable housing units and to
meet certain affordable housing needs of the City.
To implement the Judgment, the former
Redevelopment Agency and the Housing Authority entered into a Housing Cooperation Agreement in
2005, which was amended in 2008. Under the Housing Cooperation Agreement, former Redevelopment
Agency agreed to develop certain affordable housing units and the Housing Authority agreed to renovate,
rehabilitate and repair the designated affordable units, with the entire expense of the renovation,
rehabilitation, and repair of the affordable units to be borne by the former Redevelopment Agency. The
Successor Agency is required to continue to pay all enforceable obligations of the former Redevelopment
Agency that existed prior to dissolution. Accordingly, the Successor Agency has included the Judgment
as an enforceable obligation on all Recognized Obligation Payment Schedules. The current year
requirement for the Judgment and the corresponding amount deposited with the Housing Authority totaled
$9.16 million.
Investment in capital assets increased $0.49 million. The calculation of Investment in capital assets
includes outstanding debt used to purchase or construct the City’s capital assets. Major additions
included infrastructure projects that include street widening and traffic signals and a contribution of land
and buildings from the Successor Agency, which was approved by the State of California in the amount of
$6.39 million (see Note 5).
The net position of the business-type activities saw a decrease of $0.64 million, from $76.57 million to
$75.93 million. The main factors for the decrease in net position were the transfer out and depreciation
expense. Total liabilities decreased $0.73 million from $2.85 million in 2013 to $2.12 million in 2014.
The City’s governmental activities total assets and deferred outflow of resources increased from $724.09
million in 2013 to $747.79 million in 2014. The increase is attributable to $15 million of bond proceeds
transferred by the Successor Agency pursuant to a Bond Proceeds Funding Agreement Regarding
Portola Avenue/I-10 Interchange Project. The Agreement is by and among the Coachella Valley
Association of Governments, the City and the Successor Agency. Pursuant to the Agreement, $15 million
of bond proceeds was deposited into an account from which the City can make draws to pay the Local
Share of the Portola Avenue and Interstate 10 interchange project.
Total liabilities increased by $13.56 million. There was a $0.29 million reduction due to the retirement of
debt, and an increase of $13.85 million in other liabilities. The increase in other liabilities represents the
$15 million of unearned revenue for the future interchange at Portola and Interstate 10 that will be
recognized as the interchange is being constructed.
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TABLE 2
CHANGES IN NET POSITION
(IN MILLIONS)
As of June 30, 2014 and 2013
Governmental
Business-Type
Activities
Activities
2014
2013
2014
Total
2013
2014
2013
REVENUES:
Program Revenues:
Charges for services
$
22.15
$
19.96
$
9.06
$
8.71
$
31.21
$
28.67
Operating grants and
contributions
9.74
5.88
-
-
9.74
5.88
21.09
7.73
0.10
0.66
21.19
8.39
Capital grants and
contributions
General Revenues:
Property taxes
9.57
10.05
-
-
9.57
10.05
Transient occupancy tax
10.06
9.35
-
-
10.06
9.35
Sales tax
17.29
16.42
-
-
17.29
16.42
3.03
2.92
-
-
3.03
2.92
0.36
0.32
0.01
-
0.37
0.32
Other taxes
Investment earnings
Gain on sale of capital assets
Other revenues
TOTAL REVENUES
0.49
-
-
-
0.49
-
1.99
3.89
-
-
1.99
3.89
95.77
76.52
9.17
9.37
104.94
85.89
19.19
16.38
-
-
19.19
16.38
EXPENSES:
General government
Housing and redevelopment
Public safety
Parks, recreation and culture
Public works
7.85
6.95
-
-
7.85
6.95
29.34
28.61
-
-
29.34
28.61
8.33
8.75
-
-
8.33
8.75
21.12
16.32
-
-
21.12
16.32
Interest on long-term debt
0.24
0.25
-
-
0.24
0.25
Golf Course-Desert Willow
-
-
8.45
8.66
8.45
8.66
Office Complex-Parkview
-
-
0.92
0.98
0.92
0.98
86.07
77.26
9.37
9.64
95.44
86.90
9.70
(0.74)
(0.20)
(0.27)
9.50
(1.01)
0.44
0.44
(0.44)
(0.44)
-
-
-
-
-
-
-
-
10.14
(0.30)
(0.64)
(0.71)
9.50
(1.01)
702.10
702.40
76.57
77.28
778.67
779.68
TOTAL EXPENSES
INCREASE (DECREASE ) IN NET
ASSETS BEFORE TRANSFERS
Transfers
Gain on transfer to Successor Agency
INCREASE (DECREASE) IN NET POSITION
BEGINNING NET POSITION, AS RESTATED
ENDING NET POSITION
$
712.24
- 10 -
$
702.10
$
75.93
$
76.57
$
788.17
$
778.67
Table 2- Graph
Dollars in millions
800
90
700
80
600
70
Beginning Net
Position
60
500
Total Revenues
50
400
40
300
Ending Net Position
30
200
20
100
10
‐
Total Expenses
‐
2014
2013
Governmental Activities
2014
2013
Business‐Type Activities
Total revenue, excluding transfers increased from $76.52 million to $95.77 million, a 25.16 percent
increase. The increase is the result of a 172.83 percent increase in capital grants and contributions of
$13.36 million. Factors that contributed to the changes in revenues are as follows:


Capital contributions of lands and buildings representing government-use property transfers from
the Successor Agency to the City pursuant to the Long Range Property Management Plan, as
approved by the California State Department of Finance.
Deposit with Housing Authority in connection with the Judgment described on Page 9 increased
by $4.55 million, as compared to the deposit for the prior year (with the prior year amount being
lower because of the disruption to property tax revenue receipt caused by redevelopment agency
dissolution).
Total expenses increased from $77.26 million to $86.07 million, an 11.40 percent increase. General
government increased $2.81 million, Housing and Redevelopment increased $0.90 million, public safety
increased $0.73 million and public works increased $4.80 million. The City continues to find ways to
operate without the assistance of the former Redevelopment Agency. All transactions of the former
Redevelopment Agency are reflected on Pages 33 and 34 under the title of Successor Agency to the
Palm Desert Redevelopment Agency Private-Purpose Trust Fund.
- 11 -
The following schedule represents the net cost of providing services:
Net (Expense) Revenue
(In Millions)
2014
2013
General government
Public safety
Public works
Interest on long term debt
(8.59)
9.81
(18.67)
(5.48)
(9.92)
(.24)
($12.18)
4.11
(16.34)
(7.85)
(11.18)
(0.25)
Total
($33.09)
($43.69)
19%
2013
Net (Expense) Revenue
2014
Governmental Activities Net (Expense) Revenue
1%
17%
21%
General government
1%
Housing and
redevelopment
23%
Public safety
10%
‐19%
‐8%
16%
Parks, recreation &
culture
Public works
34%
31%
Interest on long term
debt
Business-type Activities
Business-type activities revenues saw a decrease of $0.20 million from $9.37 million to $9.17 million, a
2.13 percent decrease from the prior year. The overall decrease was directly related to the capital
contributions received during the prior fiscal year. Both the Desert Willow Golf Resort and the Parkview
Office Complex diligently focused on retaining the market share in their respective industries. The Desert
Willow Golf Resort utilized a strategic pricing structure which allowed the golf resort to retain the course
utilization with minimal impact to the overall average green fee. As a result, in a declining market, Desert
Willow recognized an increase in revenue from $7.49 million to $7.80 million, a 4.13 percent increase
from prior year. The golf resort management diligently marketed the platinum card program and offered a
discount during an introductory period, which motivated sales. The Parkview Office Complex revenues
increased slightly resulting from annual rental rate adjustments stipulated in the lease agreement with the
tenants.
Operating expenses for business-type activities decreased from $9.64 million to $9.37 million, a decrease
of 2.80 percent. Both the Desert Willow Golf Resort and the Parkview Office Complex staff worked on
controlling expenses.
- 12 -
THE CITY’S FUNDS
On Page 22, the governmental funds balance sheet is shown. The combined fund balance of
$238.65 million increased from $232.05 million, or 2.84 percent. This total includes the General Fund
balance of $78.37 million, which increased by $2.16 million from prior year. The City’s General Fund
balance has a nonspendable balance of $7.74 million, which includes advances, loans and notes, and
prepaid cost, $4.43 million in assigned fund balance, and $66.20 million of unassigned fund balance. The
change in the General Fund’s balance was due to growth in sales and transient occupancy tax, and an
increase in building permits and charges for services. Other major funds balance changes are noted
below:



The Prop A Fire Tax Special Revenue Fund: the fund balance decreased from $2.58 million to
$2.46 million, a $0.12 million decrease. The City transferred $1.55 million to cover part of the
shortage.
The Low Moderate Housing Asset Fund: Deposit in connection with the Judgment described on
Page 9 increased by $4.55 million, as compared to the deposit for the prior year (with the prior
year amount being lower because of the disruption to property tax revenue receipt caused by
redevelopment agency dissolution).
Measure A Special Revenue Fund: the fund balance decreased from $22.99 million to
$18.54 million, a 19.36 percent decrease. The decrease in the fund balance is due to construction
and maintenance increase of $6.82 million from the prior year.
More detailed information about the combined fund balance reserves is presented in Note 10 to the
financial statements.
General Fund Budgetary Highlights
Based upon recommendations from the staff, the City Council revised the budget several times during the
year. Adjustments were made on a monthly basis as City staff requested additional appropriations to
cover the cost of projects that either had change orders for additional work, or were underestimated. At
mid-year, adjustments were made as department heads were requested to adjust their budgets to meet
current demands. At year-end, budgets were adjusted for unanticipated expenditures. All amendments
that either increase or decrease appropriations are approved by the City Council.
For the City’s general fund, the actual ending revenues of $50.09 million were $1 million more than the
final budgeted revenues of $49.09 million. Sales and transient occupancy taxes continue to be the top
two revenue generators for the City totaling $27.11 million, or 54.12 percent of the General Fund budget.
The General Fund actual ending expenditures of $47.94 million were $2.23 million less than the final
budget of $50.17 million. There were changes in the original budget compared to the final budget during
the year. The original expenditure budget was $46.51 million compared to the final budget of
$50.17 million, a $3.66 million increase. The major change was due to the appropriations of an additional
$1.30 million in transfers to other funds and $2.70 million in retiree funding.
- 13 -
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of 2014, the City had $539.48 million invested in a broad range of capital assets, including
land, streets, bridges, drainage systems, traffic lights, parks, buildings, art work, vehicles, golf courses
and equipment (See Table 3). This amount represents a net decrease (including additions and
deductions) of $0.92 million over the prior year.
TABLE 3
CAPITAL ASSETS AT YEAR-END
(NET OF DEPRECIATION, IN MILLIONS)
For the years ended June 30, 2014 and 2013
Governmental
Activities
2014
2013
Land
Construction-in-progress
Buildings and improvements
other than buildings
Machinery and equipment
Infrastructure & right-of-way
TOTALS
$
78.44
8.24
$
106.03
2.03
271.51
$
466.25
$
Business-Type
Activities
2014
2013
73.78
6.83
$ 52.74
-
$ 53.15
-
110.44
2.15
272.56
18.89
1.60
-
19.35
2.14
-
465.76
$ 73.23
$ 74.64
Total
2014
$
2013
131.18
8.24
$
124.92
3.63
271.51
$
539.48
126.93
6.83
129.79
4.29
272.56
$
540.40
Table 3 ‐ Graph
Capital Assets at Year‐End
(Net of Depreciation in Millions)
Dollars in millions
700
600
500
Land
400
Construction in Progress
300
Buildings and Improvements
200
Equipment
100
Infrastructure
Totals
‐
2014
2013
2014
2013
Business‐Type Activities
- 14 -
2014
2013
Total
This year’s major additions included (in millions):
Street improvements
Traffic signals
Equipment purchases
Building improvements
Park improvements
Transfer of assets from Successor Agency
$
5.05
0.38
0.80
0.21
0.16
6.39
$ 12.99
The City’s fiscal year 2015 capital budget calls for it to spend an additional $30.43 million plus continuing
capital projects spending of $37.68 million from prior year, with the majority being spent on street
improvements and development of a low-income housing apartment project. Projects will be funded with
existing bond proceeds or funds that have been designated by an outside party for specific use. More
detailed information about the City’s capital assets is presented in Note 1g and Note 5 to the financial
statements.
Debt
At year-end, the City’s governmental activities had $11.96 million in bonds, claims, and compensated
absences versus $12.25 million last year, a decrease of $0.29 million as shown in Table 4. The major
cause for the decrease was the required payment of annual debt.
TABLE 4
OUTSTANDING DEBT, AT YEAR-END
(IN MILLIONS)
For the years ended June 30, 2014 and 2013
Governmental
Activities
2014
2013
Compensated absences payable
Capital leases
Claims and judgements payable
Special assessments debt with
government commitment
Limited Obligation Improvement
bonds
Lease revenue bond
TOTALS
$
$
2.69
1.02
$
2.59
0.74
Business-Type
Activities
2014
2013
$
1.22
-
$
1.75
-
Total
2014
$
2.69
1.22
1.02
2013
$
2.59
1.75
0.74
1.53
1.59
-
-
1.53
1.59
2.06
4.66
2.52
4.81
-
-
2.06
4.66
2.52
4.81
11.96
$
12.25
- 15 -
$
1.22
$
1.75
$
13.18
$
14.00
The City was able to meet its current year debt obligation in a timely manner. Debts issued in the prior
year have been used to finance various capital projects.
The City’s business-type activities debt decreased $0.53 million from $1.75 million to $1.22 million. Debt
in the business-type activities is for capital leasing of equipment. The City’s golf course uses leasing as
an alternative to purchasing maintenance equipment to maintain a cash flow to operate the day-to-day
activities. The decrease in the City’s business-type activities debt was directly related to the annual debt
payments for the leases of golf course maintenance equipment. More detailed information about the
City’s long-term liabilities is presented in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
In preparing the budget for fiscal year 2015, management focused on three core principles, in light of the
fact that the State of California dissolved the City’s Redevelopment Agency in fiscal year 2012:
1) minimize the impact of budget cuts to key services and maintain the level of service expected by
residents, businesses, and visitors; 2) minimize the number of tax and fee adjustments required to
maintain existing service levels; and 3) minimize the impact on the City’s employees and avoid position
reductions if possible. The following economic factors were considered by management:

In prior years, the City had unallocated reserves in its capital projects and special revenue funds.
In the five-year capital improvement program, all restricted capital funds have been allocated to
various projects. As a result, any additional projects would require a transfer from the general
fund, which would mean a decrease to the City’s unobligated general fund reserve. A detailed
analysis will be performed and a cost benefit approach will be employed before the general fund
reserves are decreased for capital improvements.

The increase in healthcare and retirement costs.
The 2015 budget is a reflection of the City’s commitment to the residents of Palm Desert. The City’s
conservative approach has provided for a consistently high level of services. The City has made a
commitment to allocate resources for public safety, cultural/social programs, and necessary infrastructure
improvements. A copy of the City’s 2014-2015 financial plan can be obtained by contacting the City’s
Finance Department or visit the City’s website at www.cityofpalmdesert.org.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors
with a general overview of the City’s finances and to show the City’s accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Finance Department at the City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California
92260-2578, or (760) 346-0611.
- 16 -
Exhibit A
CITY OF PALM DESERT
STATEMENT OF NET POSITION
June 30, 2014
Primary Government
Governmental
Activities
ASSETS:
Cash and investments
Receivables:
Accounts
Notes
Interest
Loans
Internal balances
Prepaid costs
Inventories
Deposits
Due from other governments
Property held for resale
Due from component unit
Advances to Succesor Agency
Restricted assets:
Cash with fiscal agent
Net OPEB asset
Capital assets, not being depreciated
Capital assets, net of depreciation
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES:
Deferred asset from derivative instruments
LIABILITIES:
Accounts payable
Accrued liabilities
Interest payable
Unearned revenues
Deposits payable
Due to primary government
Liability from derivative instruments
Long-term liabilities:
Due within one year
Due in more than one year
TOTAL LIABILITIES
NET POSITION:
Net investment in capital assets
Restricted for:
Special projects
Capital projects
Unrestricted (deficit)
TOTAL NET POSITION
$ 160,650,334
1,612,347
1,526,000
415,648
11,933,906
500,000
836,116
34,356
15,000,000
6,774,546
2,463,056
285,000
40,476,288
Business-type
Activities
$
3,746,776
86,159
(500,000)
30,770
220,804
1,232,275
-
Total
$ 164,397,110
Component
Unit
Palm Desert
Recreational
Facilities
Corporation
$
76,434
1,698,506
1,526,000
415,648
11,933,906
866,886
255,160
15,000,000
6,774,546
2,463,056
1,517,275
40,476,288
14,193
8,528
44,639
-
30,571,097
8,448,611
207,480,484
258,766,248
747,774,037
52,736,087
20,496,012
78,048,883
30,571,097
8,448,611
260,216,571
279,262,260
825,822,920
143,794
21,144
-
21,144
-
7,210,317
411,385
45,468
15,247,528
655,075
21,144
696,196
15,105
157,697
27,404
-
7,906,513
426,490
45,468
15,405,225
682,479
21,144
43,831
1,639
97,000
1,517,275
-
1,255,000
10,704,172
35,550,089
639,853
583,062
2,119,317
1,894,853
11,287,234
37,669,406
1,659,745
466,246,732
72,009,184
538,255,916
-
83,261,449
57,199,126
105,537,785
$ 712,245,092
3,920,382
$ 75,929,566
83,261,449
57,199,126
109,458,167
$ 788,174,658
See independent auditors' report and notes to basic financial statements.
- 17 -
$
(1,515,951)
(1,515,951)
CITY OF PALM DESERT
STATEMENT OF ACTIVITIES
For the year ended June 30, 2014
Program Revenue
Functions/Programs
Primary Government:
Governmental activities:
General government
Public safety
Public works
Total governmental activities
Expenses
Charges
for
Services
$ 19,194,343
7,852,611
29,339,106
8,327,402
21,123,197
237,053
86,073,712
$ 2,152,280
6,851,603
10,239,886
729,076
2,180,877
22,153,722
Business-type activities:
Desert Willow Golf Course
Office Complex - Parkview
Total business-type activities
8,452,001
922,341
9,374,342
7,804,904
1,254,521
9,059,425
-
94,076
94,076
$ 95,448,054
$ 31,213,147
$ 9,745,609
$ 21,180,127
$
$ 2,450,213
$
$
Total primary government
Component Unit:
Palm Desert Recreational Facilities Corp.
2,418,379
Operating
Grants and
Contributions
Capital
Grants and
Contributions
$
892,899
271,774
1,498,090
7,082,846
9,745,609
$ 7,558,849
10,812,911
157,272
623,411
1,933,608
21,086,051
-
General revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu
Investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues
Change in net position
Net position - beginning of year
Net position - end of year
- 18 -
-
Exhibit B
Net (Expenses) Revenues and Changes in Net Position
Component
Primary Government
Unit
Palm Desert
Recreational
Governmental
Business-type
Facilities
Activities
Activities
Total
Corporation
$
(8,590,315)
9,811,903
(18,670,174)
(5,476,825)
(9,925,866)
(237,053)
(33,088,330)
$
(33,088,330)
-
-
$
(8,590,315)
9,811,903
(18,670,174)
(5,476,825)
(9,925,866)
(237,053)
(33,088,330)
$
-
(553,021)
332,180
(220,841)
(553,021)
332,180
(220,841)
-
(220,841)
(33,309,171)
-
-
-
31,834
9,571,984
10,058,756
17,292,694
3,007,215
22,089
358,674
488,319
1,994,506
437,500
13,646
(437,500)
9,571,984
10,058,756
17,292,694
3,007,215
22,089
372,320
488,319
1,994,506
-
-
43,231,737
(423,854)
42,807,883
-
10,143,407
(644,695)
9,498,712
31,834
702,101,685
$ 712,245,092
$
76,574,261
778,675,946
75,929,566
$ 788,174,658
(1,547,785)
$
- 19 -
(1,515,951)
- 20 -
FUND FINANCIAL STATEMENTS
- 21 -
CITY OF PALM DESERT
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2014
Special Revenue Funds
Low Moderate
Prop A
Housing
Fire Tax
Asset
General
ASSETS:
Pooled cash and investments
Receivables:
Accounts
Assessments
Notes
Interest
Loans
Prepaid costs
Due from other funds
Deposits
Advances to Successor Agency
Inventories
Property held for resale
Due from component unit
Restricted assets:
Cash and investments with fiscal agent
TOTAL ASSETS
$ 68,056,389
$
1,085,979
1,526,000
169,011
56,117
829,403
2,921,730
62,561
9,236,000
30,321
285,000
$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
Deposits payable
TOTAL LIABILITIES
$
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
FUND BALANCES:
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
$
- 22 -
2,500,000
86,758,511
3,589,259
311,344
1,847,200
16,997
5,764,800
$
$
2,995,783
$ 10,898,417
5,640
406,525
-
72,053
33,938
6,802,636
1,152
4,531,000
17,821,288
2,463,056
-
3,407,948
$ 42,623,540
949,278
949,278
$
3,227
6,796
10,023
2,619,765
-
33,938
7,745,320
4,425,423
66,203,203
78,373,946
2,458,670
2,458,670
1,152
42,578,427
42,579,579
3,407,948
$ 42,623,540
86,758,511
$
Exhibit C
Special
Revenue
Funds
(Continued)
Other
Governmental
Funds
Total
Governmental
Funds
$
52,933,643
$ 154,115,381
2,584,712
15,000,000
-
448,675
1,382,905
212,699
5,075,153
5,561
861,579
501,512
13,419,000
4,035
-
1,612,347
1,382,905
1,526,000
415,648
11,933,906
836,116
6,774,546
5,095,073
15,000,000
40,476,288
34,356
2,463,056
285,000
46,950
36,862,811
28,024,147
$ 102,868,909
30,571,097
$ 272,521,719
1,703,642
15,000,000
16,703,642
$
$
Measure A
$
$
$
$
19,231,149
880,839
100,041
2,747,873
223,735
655,075
4,607,563
7,126,245
411,385
4,595,073
15,247,528
655,075
28,035,306
1,620,925
1,562,799
5,837,427
18,538,244
18,538,244
5,561
50,619,094
21,644,068
24,429,824
96,698,547
7,752,033
114,194,435
21,644,068
28,855,247
66,203,203
238,648,986
36,862,811
$ 102,868,909
$ 272,521,719
- 23 -
- 24 -
Exhibit D
CITY OF PALM DESERT
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
June 30, 2014
Total fund balance for governmental funds
$ 238,648,986
Amounts reported for governmental activities in the Statement of Net Position are
different because:
When capital assets (land, buildings, equipment, etc.) that are to be used in
governmental activities are purchased or constructed, the costs of those assets
are reported as expenditures in governmental funds. However, the Statement
of Net Position includes those capital assets and contribution among the assets
of the City as a whole:
Beginning Balance, net depreciation
Current year additions
Current year deletions
Current year depreciation
Contributions
Ending Balance, net depreciation
$ 464,667,676
6,333,739
(919,707)
(11,506,398)
6,390,263
464,965,573
Deferred outflows of resources from derivative instrument
21,144
Long-term debt activities and compensated absences have not been included
in the governmental fund activities:
Long-term debt
Compensated absences
(9,267,332)
(2,691,840)
(11,959,172)
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due.
(45,468)
Liability from derivative instruments
(21,144)
Because the focus of governmental funds is on short-term financing, some assets
will not be available to pay for current-period expenditures. Those assets (for
example, receivables) are offset by deferred inflows of resources in the governmental
funds and, thus, are not included in fund balance:
Palm Desert Recreational Facilities Corporation - relates to the amount of rent
owed by component unit to City's General Fund
Measure A Special Revenue Fund grants not received in available period
Interest that was not paid at year-end
Sales Tax
Successor Agency (former Redevelopment Agency) land purchase from City
285,000
1,620,925
247,434
246,163
2,055,000
4,454,522
Other post employment benefit asset is not available to fund current expenditures
for governmental funds and therefore is not reported as an asset in the
governmental funds.
8,448,611
Internal service fund are used by management to charge the costs of certain
activities, such as equipment to individual funds. The assets and liabilities
of the internal service fund must be added to the Statement of Net Position.
7,732,040
Net position of governmental activities
$ 712,245,092
- 25 -
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Low Moderate
Prop A
Housing
Fire Tax
Asset
General
REVENUES:
Taxes
Special assessments collected
Licenses and permits
Intergovernmental revenues
Rental income
Investment earnings
Fines and forfeitures
Contributions from other governments
Contributions from property owners
Miscellaneous
TOTAL REVENUES
$ 42,296,613
1,834,215
1,844,327
148,633
1,439,278
405,456
100,393
654,726
48,723,641
EXPENDITURES:
Current:
General government
Public safety
Public works
Contributions to property owners
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Sale of property
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
44,183,659
9,732,975
1,249,248
4,539,982
(1,676,985)
9,086,643
1,373,786
(3,754,752)
1,553,000
-
-
(2,380,966)
1,553,000
-
76,214,930
- 26 -
3,366
111,828
9,157,393
1,063,304
10,335,891
1,249,248
-
FUND BALANCES - BEGINNING OF YEAR
$
9,728,650
4,325
2,159,016
$
5,036,055
2,114,822
883,935
3,678
17,500
8,055,990
14,874,403
19,090,260
3,772,021
6,386,036
60,939
NET CHANGE IN FUND BALANCES
FUND BALANCES - END OF YEAR
$
78,373,946
(123,985)
$
9,086,643
2,582,655
33,492,936
2,458,670
$ 42,579,579
Exhibit E
Special
Revenue
Funds
(Continued)
Measure A
$
2,542,352
786,328
87,345
3,416,025
Other
Governmental
Funds
Total
Governmental
Funds
$
$
50,464,511
3,486,220
2,262,907
7,380,744
5,626,850
2,165,020
864,853
231,768
10,749,218
420,590
3,539,552
87,192,233
3,143,594
4,720,235
2,196,413
5,400,930
320,825
2,030,920
3,212,134
2,350,187
1,488,323
17,070,816
6,650,178
29,139,735
5,802,941
12,741,764
2,350,187
6,273,822
7,863,829
674,000
242,495
17,916,227
674,000
242,495
80,945,938
(4,447,804)
(1,255,541)
6,246,295
-
911,001
1,934,765
(1,669,299)
911,001
4,861,551
(5,424,051)
-
1,176,467
(4,447,804)
(79,074)
22,986,048
$
589,491
1,371,398
428,692
3,866,154
5,474,851
725,742
256,546
131,375
1,591,825
420,590
1,804,022
16,660,686
18,538,244
$
348,501
6,594,796
96,777,621
232,054,190
96,698,547
$ 238,648,986
- 27 -
Exhibit F
CITY OF PALM DESERT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Net change in fund balances - total governmental funds
$
6,594,796
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the
Statement of Activities, the costs of those assets are allocated over their
estimated useful lives as a depreciation expense. This is the amount by which
depreciation and deletions exceeded capital outlays in the current period:
Current year additions
Current year deletions
Current year depreciation
Contributions of property from Successor Agency
$
6,333,739
(919,707)
(11,506,398)
6,390,263
297,897
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Position.
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Net change in compensated absences for the current period
Net change in accrued interest for the current period
Net change in claims and judgments for the current period
674,000
(104,310)
5,442
(274,540)
(373,408)
Collection of unavailable revenues is reported as revenues in governmental funds
and thus has the effect of increasing fund balances. For the City as a whole,
however, the collection of these receipts reduces the net position in the Statement
of Net Position and does not result in revenues in the Statement of Activities:
Unavailable revenue
Revenues will not be collected within 60 days of the City's fiscal year-end and,
therefore, are not considered available in the governmental funds:
Interest on note issued by the City
Sales tax true-up from the State
1,614,815
(46,782)
33,736
(13,046)
Current year change for other post employment benefit asset.
479,640
Internal service funds are used by management to charge the costs of certain
activities, such as equipment. The net revenues (expenses) of the internal
service funds are reported with governmental activities.
868,713
Change in net position of governmental activities
$
- 28 -
10,143,407
Exhibit G
CITY OF PALM DESERT
PROPRIETARY FUNDS
June 30, 2014
Business-type ActivitiesEnterprise Funds
Major
Other
Fund
Fund
Desert
Parkview
Willow
Office
Golf Course
Complex
ASSETS:
CURRENT ASSETS:
Receivables:
Accounts
Prepaid costs
Inventories
Due from component unit (PDRFC)
TOTAL CURRENT ASSETS
$ 3,180,310
38,202
29,511
220,804
1,232,275
2,087,258
47,957
1,259
3,229,526
86,159
30,770
220,804
1,232,275
5,316,784
6,534,953
CAPITAL ASSETS:
Nondepreciable
Depreciable, net
CAPITAL ASSETS, NET
52,736,087
12,529,678
65,265,765
7,966,334
7,966,334
52,736,087
20,496,012
73,232,099
1,281,159
1,281,159
TOTAL ASSETS
67,353,023
11,195,860
78,548,883
7,816,112
665,547
15,105
157,697
500,000
639,853
1,978,202
30,649
27,404
58,053
696,196
15,105
27,404
157,697
500,000
639,853
2,036,255
84,072
84,072
583,062
583,062
-
583,062
583,062
-
2,561,264
58,053
2,619,317
84,072
64,042,850
748,909
7,966,334
3,171,473
72,009,184
3,920,382
1,281,159
6,450,881
$ 64,791,759
$ 11,137,807
$ 75,929,566
NONCURRENT LIABILITIES:
Capital leases
TOTAL NONCURRENT LIABILITIES
TOTAL LIABILITIES
NET POSITION:
Net investment in capital assets
Unrestricted
TOTAL NET POSITION
- 29 -
$
3,746,776
Governmental
ActivitiesInternal
Service Fund
566,466
LIABILITIES:
CURRENT LIABILITIES:
Accounts payable
Accrued liabilities
Deposits payable
Unearned revenues
Due to other funds
Current portion - capital leases
TOTAL CURRENT LIABILITIES
$
Total
Enterprise
Funds
$
$
6,534,953
7,732,040
Exhibit H
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
Major
Other
Fund
Fund
Desert
Parkview
Willow
Office
Golf Course
Complex
OPERATING REVENUES:
Fees and rentals
Merchandise sales
Miscellaneous
TOTAL OPERATING REVENUES
OPERATING EXPENSES:
Maintenance and operations
Cost of merchandise
General and administrative
Depreciation and amortization
TOTAL OPERATING EXPENSES
OPERATING INCOME (LOSS)
Total
Enterprise
Funds
Governmental
ActivitiesInternal
Service Fund
$ 6,650,446
1,086,044
68,414
$ 1,237,990
16,531
$ 7,888,436
1,086,044
84,945
$
44,314
7,804,904
1,254,521
9,059,425
44,314
4,320,398
425,092
2,293,493
1,299,803
283,738
204,242
434,361
4,604,136
425,092
2,497,735
1,734,164
21,546
251,522
8,338,786
922,341
9,261,127
273,068
(533,882)
332,180
(201,702)
(228,754)
697
(113,215)
-
12,949
-
13,646
(113,215)
-
22,159
34,746
TOTAL NONOPERATING
REVENUES (EXPENSES)
(112,518)
12,949
(99,569)
56,905
INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS
AND TRANSFERS
(646,400)
345,129
(301,271)
(171,849)
94,076
-
(437,500)
94,076
(437,500)
40,562
1,000,000
-
(552,324)
(92,371)
(644,695)
868,713
NONOPERATING REVENUES (EXPENSES):
Interest revenue
Interest expense
Gain on disposal of capital assets
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION - BEGINNING OF YEAR
NET POSITION - END OF YEAR
65,344,083
11,230,178
76,574,261
$ 64,791,759
$ 11,137,807
$ 75,929,566
- 30 -
6,863,327
$
7,732,040
Exhibit I
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Enterprise Funds
Major
Other
Fund
Fund
Desert
Parkview
Total
Governmental
Willow
Office
Enterprise
Internal
Golf Course
Complex
Funds
Service Fund
Activities-
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers
$
Payments to suppliers
7,833,961
$
(7,066,550)
1,239,339
$
9,073,300
$
44,314
(540,479)
(7,607,029)
(21,546)
698,860
1,466,271
22,768
NET CASH PROVIDED BY
OPERATING ACTIVITIES
767,411
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Interest paid on loan
(20,000)
Cash received from other funds
-
Cash paid to other funds
-
-
(20,000)
-
-
-
1,000,000
(437,500)
(437,500)
-
(20,000)
(437,500)
(457,500)
1,000,000
(29,481)
(199,423)
(228,904)
NET CASH PROVIDED (USED) BY
NONCAPITAL AND RELATED
ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases of capital assets
Proceeds from sale of assets
-
Principal paid on leases
Interest paid on leases
-
(349,960)
-
48,140
(528,168)
-
(528,168)
-
(93,215)
-
(93,215)
-
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES
(650,864)
(199,423)
(850,287)
(301,820)
697
12,949
13,646
22,159
97,244
74,886
172,130
743,107
469,222
3,105,424
3,574,646
5,791,846
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS END OF YEAR
$
566,466
- 31 -
$
3,180,310
$
3,746,776
$
6,534,953
(Continued)
Exhibit I
CITY OF PALM DESERT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
(CONTINUED)
Major
Other
Fund
Fund
Desert
Parkview
Total
Governmental
Willow
Office
Enterprise
Internal
Golf Course
Complex
Funds
Service Funds
Activities-
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Operating income (loss)
$
(533,882)
$
332,180
$
(201,702)
$
(228,754)
Adjustments to reconcile operating
income (loss) to net cash provided
by operating activities:
Depreciation and amortization
1,299,803
434,361
1,734,164
251,522
39,980
-
17,572
-
Changes in assets and liabilities:
(Increase) decrease in receivables, net
50,000
(Increase) decrease in prepaid costs
17,486
(Increase) decrease in inventories
(10,020)
86
(29,091)
-
(29,091)
-
112,288
-
112,288
-
(68,547)
-
(Increase) decrease in due
from component unit
Increase (decrease) in accounts payable
and accrued liabilities
(15,962)
(52,585)
Increase (decrease) in deposits payable
-
-
-
-
Increase (decrease) in due to other funds
-
-
-
-
Increase (decrease) in unearned revenues
NET CASH PROVIDED BY
OPERATING ACTIVITIES
(133,231)
$
767,411
(5,162)
$
698,860
(138,393)
$
NONCASH ITEMS:
Noncash items include $94,076 and $40,562 (net value) of capital assets contributed by the City of Palm Desert to Desert
Willow Golf Course and the internal service fund, respectively.
- 32 -
1,466,271
-
$
22,768
Exhibit J
CITY OF PALM DESERT
FIDUCIARY FUNDS
June 30, 2014
ASSETS:
Receivables (net of allowance for uncollectibles):
Assessments
Interest
Prepaid costs
Restricted assets:
Capital assets, not being depreciated
Capital assets, being depreciated
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES:
Deferred amount on refunding
Successor
Agency to the
Palm Desert
Redevelopment
Agency
Private-Purpose
Trust Fund
Agency
Funds
$ 22,184,265
$ 15,465,913
80,760
155,784
87,805,509
2,293
648,529
4,208
110,375,562
51,882,534
1,987,879
7,518,124
-
186,666,784
$ 111,444,576
874,570
LIABILITIES:
Accounts payable
Interest payable
Advances from City of Palm Desert
Advances from Housing Authority
Deposits
Bonds payable - due within one year
Bonds payable - due in more than one year
TOTAL LIABILITIES
NET POSITION:
Held in trust
282,592
4,011,238
22,655,000
17,821,288
18,295,000
304,419,042
$
367,484,160
$ 111,444,576
$ (179,942,806)
See independent auditors' report and notes to basic financial statements
- 33 -
111,444,576
-
Exhibit K
CITY OF PALM DESERT
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
Successor
Agency to the
Palm Desert
Redevelopment
Agency
Private-Purpose
Trust Fund
ADDITIONS:
Taxes
Investment income
Rental income
Other
$ 37,141,030
404,156
52,450
522,499
TOTAL ADDITIONS
38,120,135
DEDUCTIONS:
Housing and development
Interest
Depreciation
35,512,415
16,017,898
315,540
TOTAL DEDUCTIONS
51,845,853
CHANGE IN NET POSITION
(13,725,718)
NET POSITION - BEGINNING OF YEAR, AS RESTATED
NET POSITION - END OF YEAR
(166,217,088)
$ (179,942,806)
- 34 -
CITY OF PALM DESERT
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. Description of the Reporting Entity:
The City of Palm Desert was originally incorporated on November 26, 1973, as a General Law
City. In December 1997, Measure LL was enacted following a vote by Palm Desert residents,
which adopted a City Charter. The City operates under a Council-Manager form of government
and provides the following services: public safety (police and fire), highways and streets,
public improvements, community development (planning, building and zoning) and general
administrative services.
The City has defined its reporting entity in accordance with accounting principles generally
accepted in the United States of America which provides guidance for determining which
governmental activities, organizations and functions should be included in the reporting entity.
The Basic Financial Statements present information on the activities of the reporting entity,
which include the City of Palm Desert (the primary government) and its component units,
entities for which the government is considered financially accountable.
Accounting principles generally accepted in the United States of America require that the
component units be separated into blended or discretely presented units for reporting purposes.
The following criteria were used in determination of blended component units: appointment of
the governing board and fiscal dependence. Although legally separate entities, blended
component units are, in substance, part of the City's operations. Therefore, they are reported as
part of the primary government. Discretely presented component units are reported in a
separate column in the basic financial statements to emphasize that they are legally separate
from the City.
Blended Component Units
Following are descriptions of legally separate component units for which the City is financially
accountable that are blended with the Primary Government. The governing bodies of these
component units are substantially the same as the City.
The Palm Desert Housing Authority (Housing Authority) was established by the City Council
in January 1998, and is partly responsible for the administration of providing affordable
housing in the City. The Housing Authority transactions are reported in the other special
revenue funds combining financial statements as an other governmental fund.
- 35 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
a. Description of the Reporting Entity (Continued):
Blended Component Units (Continued)
The Palm Desert Financing Authority (Financing Authority) was formed on January 26, 1989.
The purpose of the Financing Authority is to issue debt and loan the proceeds to the City and
Agency. The Financing Authority's capital related transactions are reported in the governmental
fund financial statements in the capital projects funds, and the collection of assessments and
payments of debt service is recorded in the fiduciary funds.
The City Council of Palm Desert is the governing body for the Housing Authority and
Financing Authority.
Separate financial statements are not issued for the Housing Authority and Financing
Authority.
Discretely Presented Component Unit
The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on
February 25, 1997. The purpose of the Corporation is to lease, operate and manage a restaurant
and bar in the Desert Willow Golf Course in Palm Desert, California. The Board of Directors of
the Corporation appoints an executive director to administer operations.
The Corporation is in a separate column to emphasize that it is legally separate from the City
and is financially accountable to the City. The two-member board governing the Corporation is
appointed by the City Council, the City has authority to approve the Corporation's budget, and
the City must approve any debt issued.
Complete financial statements of the Component Unit can be obtained from the City's
administrative offices.
- 36 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
b. Basis of Presentation:
Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all of the nonfiduciary activities of the primary government
and its component units. For the most part, the effect of interfund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to
a significant extent on fees and charges for support. Likewise, the primary government is
reported separately from certain legally separate component units for which the primary
government is financially accountable.
The statement of activities demonstrates the degree to which the direct and indirect expenses of
a given function or segment are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include: 1) charges
to customers or applicants who purchase, use or directly benefit from goods, services or
privileges provided by a given function or segment, and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not properly included among program revenues are reported instead as
general revenues. Expenses reported for functional activities include allocated indirect
expenses.
Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
Fund Financial Statements
The accounting system of the City is organized and operated on the basis of separate funds,
each of which is considered to be a separate accounting entity. Each fund is accounted for by
providing a separate set of self-balancing accounts that constitute its assets, liabilities, deferred
inflows of resources, fund equity, revenues and expenditures/expenses. Funds are organized
into three major categories: governmental, proprietary and fiduciary. An emphasis is placed on
major funds within the governmental and proprietary categories.
- 37 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
b. Basis of Presentation (Continued):
Fund Financial Statements (Continued)
A fund is considered major if it is the primary operation fund of the City or meets the following
criteria:
a. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of
resources, revenues or expenditures/expenses of that individual governmental or enterprise
fund are at least 10% of the corresponding total for all funds of that category or type; and
b. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of
resources, revenues or expenditures/expenses of the individual governmental fund or
enterprise fund are at least 5% of the corresponding total for all governmental and
enterprise funds combined.
c. The government has determined that a fund is important to the financial statement user.
The funds of the financial reporting entity are described below:
Governmental Fund Types
General Fund - The General Fund is the general operating fund of the City. It is used to account
for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of
specific revenue resources (other than major capital projects) that are legally restricted to
expenditures for specified purposes.
Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources
for, and the payment of, general long-term obligation principal, interest and related costs.
Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be
used for the acquisition or construction of major capital facilities.
- 38 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
The funds of the financial reporting entity are described below (Continued):
Proprietary Fund Types
Enterprise Funds - The Enterprise Funds account for operations that are financed and operated
in a manner similar to private business enterprises, where the intent of the City Council is that
the costs (expenses including depreciation) of providing goods and services to the general
public on a continuing basis be financed or recovered primarily through user charges.
The Primary Government's Enterprise funds consist of the Parkview Office Complex and the
Desert Willow Golf Course. Desert Willow Golf Course is operated by a management
company. The Component Unit's Enterprise fund consists of the Palm Desert Recreational
Facilities Corporation, also operated by a management company.
Internal Service Funds - The Internal Service Fund accounts for financial transactions related to
replacement of City-owned vehicles and equipment. These services are provided to other
departments or agencies of the City on a cost reimbursement basis.
Fiduciary Fund Types
Private-Purpose Trust Fund
The Successor Agency to the Palm Desert Redevelopment Agency Private Purpose Trust Fund
is used to account for the activities of the Successor Agency to the Palm Desert Redevelopment
Agency.
Agency Funds
The Agency, Special Assessment and Treasurers 1911 Bond Act Funds are used to account for
assets held by the City in a custodial capacity as a trustee or as an agent. These assets include
deposits placed with the City by developers, individuals and groups to obtain future services, as
well as deposits from assessment district’s property owners. These deposits are reduced by
payments and/or refunds to individuals or entities at some future time. Agency funds are
custodial in nature and do not involve measurement of results of operations.
The City’s Retiree Service Stipend Fund is used to account for assets held to pay for the retiree
service stipend.
- 39 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
The major funds are as follows:
Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all
financial resources except those required to be accounted for in another fund.
The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax
collected within the City for upgrading fire protection and prevention. Its use is restricted to
obtaining, furnishing, operating and maintaining fire protection and prevention services
(currently under contract with Riverside County Fire Department) equipment or apparatus. This
fund is reported as a major fund because the tax collected is a voter approved measure.
The Low Moderate Housing Asset Special Revenue Fund is used to account for any funds
generated from housing assets of the former Redevelopment Agency to be used for projects that
benefit low and moderate income families.
The Measure A Special Revenue Fund - In 1988, Riverside County voters approved a half-cent
sales tax, known as Measure A, to fund a variety of highway improvements, local street and
road maintenance, commuter assistance and specialized transit projects. This fund is used to
collect this tax, and pursuant to the provision of Measure A (Ordinance No. 88-1 of the County
of Riverside) it is restricted for local street and road expenditures only.
Proprietary Fund
The Desert Willow Golf Course Fund is used to account for the fees collected and expenses
incurred in connection with operating the municipal golf course in the City of Palm Desert.
- 40 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
c. Measurement Focus and Basis of Accounting:
Measurement focus is a term used to describe which transactions are recorded within the
various financial statements. Basis of accounting refers to when transactions are recorded
regardless of the measurement focus applied.
Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, both
governmental and business-like activities are presented using the economic resources
measurement focus. The accounting objectives of the economic measurement focus are the
determination of operating income, changes in net position (or cost recovery), financial
position and cash flows. All assets, deferred outflows of resources, liabilities and deferred
inflows of resources (whether current or noncurrent) associated with their activities are
reported.
In the fund financial statements, the "current financial resources" measurement focus or the
"economic resources" measurement focus is used as appropriate:
1. All governmental funds utilize a "current financial resources" measurement focus. Only
current financial assets, deferred outflows of resources, current liabilities and deferred
inflows of resources are generally included on their balance sheets. Their operating
statements present sources and uses of available spendable financial resources during a
given period. These funds use fund balance as their measure of available spendable
financial resources at the end of the period.
2. The proprietary fund and private purpose trust fund utilize an "economic resources"
measurement focus. Proprietary fund and private purpose trust fund equity are classified as
net position.
3. Agency funds are not involved in the measurement of results of operations; therefore,
measurement focus is not applicable to them.
- 41 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both
governmental and business-like activities are presented using the accrual basis of accounting.
Under the accrual basis of accounting, revenues are recognized when earned and expenses are
recorded when the liability is incurred or economic asset used. Revenues, expenses, gains,
losses, assets and liabilities resulting from exchange and exchange-like transactions are
recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual
basis of accounting. Under this modified accrual basis of accounting, revenues are recognized
when "measurable and available." Measurable means knowing or being able to reasonably
estimate the amount. Available means collectible within the current period or soon enough
thereafter to pay current liabilities.
Revenues that are susceptible to accrual include property taxes and special assessments that are
levied for and due for the fiscal year and collected within 60 days after year-end. Licenses,
permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as
governmental fund type revenues when received in cash because they are not generally
measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes,
are recognized in the accounting period in which they became both measurable and available to
pay liabilities of the current period. Grants and similar items are recognized as soon as all
eligibility requirements imposed by the provider have been met. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However debt service
expenditures as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Interfund activity has been eliminated from the general government function for the
government-wide financial statements except for charges between the government's Desert
Willow Golf Course and Parkview Office Complex funds and various other functions of the
government. Elimination of these charges would distort the direct costs and program revenues
for the various functions considered.
The accrual basis of accounting is followed by the proprietary fund and private purpose trust
fund. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recorded when the liability is incurred or economic assets are used.
- 42 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
c. Measurement Focus and Basis of Accounting (Continued):
Basis of Accounting (Continued)
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing goods and services in
connection with a proprietary fund's principal ongoing operations. The principal revenue of the
Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges to
customers for use of the golf course and rental fees. Operating expenses for enterprise funds
include the cost of sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
d. New Accounting Pronouncements:
Current Year Standards
GASB 66 - “Technical Corrections, an amendment of GASB Statement No. 10 and Statement
No. 62”, required to be implemented in the current fiscal year did not impact the City.
GASB 70 - “Accounting and Financial Reporting for Nonexchange Financial Guarantees”,
required to be implemented in the current fiscal year did not impact the City.
Pending Accounting Standards
GASB has issued the following statements which may impact the City’s financial reporting
requirements in the future:
GASB 68 - “Accounting and Financial Reporting for Pensions, an amendment of GASB
Statement No. 27”, effective for the fiscal years beginning after June 15, 2014.
GASB 69 - “Government Combinations and Disposals of Government Operations”, effective
for periods beginning after December 15, 2013.
GASB 71 - “Pension Transition for Contributions Made Subsequent to the Measurement Date,
an Amendment of GASB Statement No. 68”, effective for periods beginning after June 30, 2014.
- 43 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
e. Deferred Outflows/Inflows of Resources:
In addition to assets, the statement of net position and the governmental funds balance sheet
will sometimes report a separate section for deferred outflows of resources. This separate
financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to future periods and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The City has two items that qualify for reporting in this
category: deferred asset from derivate instruments and the deferred amount on refunding.
In addition to liabilities, the statement of net position and the governmental funds balance sheet
will sometimes report a separate section for deferred inflows of resources. This separate
financial statement element, deferred inflows of resources, represents an acquisition of net
position that applies to future periods and will not be recognized as an inflow of resources
(revenue) until that time. The City has only one type of this item, which arises under a
modified accrual basis of accounting that qualifies for reporting in this category. Accordingly,
the item, unavailable revenues, is reported only in the governmental fund balance sheet. The
governmental funds report unavailable revenues from four sources: investment income, grants,
notes receivables collections and capital reimbursements from developers. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts become
available.
f. Net Position Flow Assumption:
Sometimes the City will fund outlays for a particular purpose from both restricted
(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the
amounts to report as restricted - net position and unrestricted - net position, a flow assumption
must be made about the order in which the resources are considered to be applied.
It is the City’s practice to consider restricted - net position to have been depleted before
unrestricted - net position is applied.
g. Capital Assets and Depreciation:
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads,
traffic signals, drainage systems and similar items), are reported in the applicable governmental
or business-type activities column in the government-wide financial statements. Capital assets
are defined by the City as assets with an initial cost of more than $500 and an estimated life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at
the date of donation.
- 44 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
g. Capital Assets and Depreciation (Continued):
The City has reported general infrastructure assets acquired in prior and current years.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Property, plant and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Buildings
Improvements other than buildings
Infrastructure
40 years
20 years
5 to 8 years
20 to 75 years
h. Appropriations Limit:
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative),
the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and
if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the
State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or
other refund arrangements. For the fiscal year ended June 30, 2014, proceeds of taxes did not
exceed appropriations.
i. Investments:
Investments are stated at fair value (quoted market price or the best available estimate thereof).
j. Cash and Investments:
For purposes of the statement of cash flows, the City has defined cash and investments to
include cash on hand, demand deposits, investments held in various instruments, and
investments held in the California Local Agency Investment Fund (LAIF), California Asset
Management Program (CAMP) and Riverside County Treasurer’s Pooled Investment Fund.
- 45 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
k. Employee Compensated Absences:
It is the government's policy to permit employees to accumulate earned but unused vacation
and sick leave (compensated absences). Vacation pay and sick leave, which are expected to be
liquidated with expendable available resources, are reported as expenditure and liability of the
governmental fund that will pay it only if they have matured, for example, as a result of
employee resignations or retirements. Compensated absences in the amount of $2,691,840,
which are not expected to be liquidated with expendable available financial resources, are
reported as long-term liabilities.
l. Property Held for Resale:
The land held for resale is recorded in the Low Moderate Housing Asset Special Revenue Fund
as property held for resale at the lower of acquisition cost or net realizable value. At
June 30, 2014, the cost of the property held for resale for various housing properties in Palm
Desert totaled $2,463,056.
m. Inventories, Prepaid Costs and Deposits:
Inventory in the amount of $220,804 and $44,639 for the Desert Willow Golf Course
Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities Corporation
(Component Unit), respectively, are stated at lower of cost or market with cost determined
using the weighted average cost method. Inventory in the amount of $34,356 in the general
fund and Other Governmental Funds are stated at cost. Inventory is recorded as an expenditure
when consumed rather than purchased.
Certain payments to vendors that reflect costs applicable to future accounting periods are
recorded as prepaid costs in the government-wide and fund financial statements.
n. Property Tax Calendar:
Property taxes are assessed and collected each fiscal year according to the following property
tax calendar:
Lien date:
Levy date:
Due date:
Delinquent date:
January 1
July 1 to June 30
November 1 - 1st Installment
March 1 - 2nd Installment
December 10 - 1st Installment
April 10 - 2nd Installment
- 46 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
n. Property Tax Calendar (Continued):
Under California law, property taxes are assessed and collected by the counties up to 1% of
assessed value, plus other increases approved by the voters. The property taxes go into a pool
and are then allocated to the cities based on complex formulas prescribed by state statutes. The
City accrues only those taxes, which are received within 60 days after the year-end. The City is
a participant in the Teeter Plan under the California Revenue and Taxation Code. The County
of Riverside has responsibility for the collection of delinquent taxes and the City receives
100% of the levy.
o. Restricted Assets:
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are
classified as restricted assets on the balance sheet because they are maintained in separate
trustee bank accounts and their use is limited to applicable bond covenants. In addition, funds
have been restricted for future capital improvements by City resolution.
p. Use of Estimates:
The financial statements are prepared in accordance with accounting principles generally
accepted in the United States of America and, accordingly, include amounts that are based on
management’s best estimates and judgments. The financial statements include estimates for
the value of the capital assets (infrastructure), depreciation expense, the fair value of
investments, the liability for derivative instruments (Note7), the amounts reported for the
schedule of funding progress for the Defined Benefit Plan (Note 9) and the actuarial accrued
liability for the other post-employment benefits (Note 13). Accordingly, actual results could
differ from the estimates.
2. CASH AND INVESTMENTS:
Cash and Investments
As of June 30, 2014, cash and investments were reported in the accompanying financial statements
as follows:
Governmental activities
Business-type activities
Component unit
Fiduciary funds
Total Cash and Investments
$ 191,221,431
3,746,776
76,434
155,543,864
$ 350,588,505
- 47 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
2. CASH AND INVESTMENTS (CONTINUED):
Cash and Investments (Continued)
Cash and investments at June 30, 2014 consisted of the following:
Primary Government
Demand accounts
Petty cash
Investments
Total Cash and Investments - Primary Government
(9,153,846)
21,850
204,100,203
$ 194,968,207
Component Unit
Demand accounts
$
Fiduciary Funds
Demand accounts
Pooled with Primary Government
Investments
Total Cash and Investments - Fiduciary Funds
$
76,434
$
1,722,724
15,465,913
138,355,227
$ 155,543,864
The City of Palm Desert maintains a cash and investment pool that is available for use for all
funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and
investments. The City has adopted an investment policy, which authorizes it to invest in various
investments.
Deposits
At June 30, 2014, the carrying amount of the deposits was $9,973,137, and the bank balance was
$8,111,225. The $1,861,912 difference represents outstanding checks and other reconciling items.
The California Government Code requires California banks and savings and loan associations to
secure an Entity's deposits by pledging government securities with a value of 110% of an Entity's
deposits. California law also allows financial institutions to secure deposits by pledging first trust
deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the
collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The
collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized
Agent of Depository recognized by the State of California Department of Banking. The collateral
for deposits with savings and loan associations is generally held in safekeeping by the Federal
Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are
physically held in an undivided pool for all California public agency depositors.
- 48 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Deposits (Continued)
Under Government Code Section 53655, the placement of securities by a bank or savings and loan
association with an Agent of Depository has the effect of perfecting the security interest in the
name of the local governmental agency. Accordingly, all collateral held by California Agents of
Depository are considered to be held for, and in the name of, the local governmental agency.
Investments
Under provision of the City’s investment policy and in accordance with the California Government
Code, the following investments are authorized:












United States Treasury bills, notes, bonds or certificates of indebtedness
United States government-sponsored agency obligations, participations or other instruments
Banker’s Acceptances issued by commercial banks
Commercial Paper issued by general corporations
Negotiable Certificates of Deposits, issued by a nationally or state-chartered bank, a savings
association, a federal association or by a state-licensed branch of a foreign bank
Time Certificates of Deposit issued by qualified public depositories.
Repurchase Agreements sold by authorized brokers
Medium-term Notes issued by corporations organized and operating in the United States, or by
depository institutions operating in the United States and licensed by the United States or by
any state
Money Market Mutual Funds that are registered with the SEC under the Investment Act
of 1940
State of California Local Agency Investment Fund (LAIF) that is managed by the State
Treasurer’s Office
Structured Notes in the form of callable securities or “STRIPS” issued by the United States
Treasury, Federal Agencies or government-sponsored enterprises
Local Government Investment Pools
GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31
establishes fair value standards for investments in participating interest earning investment
contracts, external investment pools, equity securities, option contracts, stock warrants and stock
rights that have readily determinable fair values.
- 49 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Credit Risk
The City Treasurer is authorized under state and municipal law to invest in various types of
securities that meet specified credit quality standards, based upon credit risk ratings assigned by
Standard and Poors (S&P) or by Moody’s Investor Services (Moody’s). Permissible City
investments include medium-term notes that are rated “A” or higher at time of purchase;
commercial paper that is rated “A-1” or the equivalent; money market mutual funds that are rated
“AAA”; and United States Government and Federal Agency securities (the quality of United States
Treasury securities is not analyzed since they are not deemed to have credit risk).
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating required, when
applicable, by the California Government Code, the City’s investment policy, or debt agreements,
and the rating by Standard and Poor’s, Fitch and Moody’s as of year-end for each investment type.
Primary Government
Minimum
Investment Type
Total as of
Legal
June 30, 2014
Rating
AAA
A1/P1
Unrated
California Local Agency
Investment Fund
$
61,170,870
N/A
3,739,833
N/A
102,518,141
$
-
$
-
$
61,170,870
California Asset
Management Program
-
-
3,739,833
Riverside County Treasurer's
Pooled Investment Fund
Medium-Term Corporate Notes
N/A
-
-
102,518,141
9,973,750
A
-
9,973,750
-
5,833,019
A
5,833,019
-
-
20,864,590
N/A
-
-
20,864,590
Held by Fiscal Agent:
Money market mutual funds
Investment Fund
Total
$
204,100,203
$
- 50 -
5,833,019
$
9,973,750
$
188,293,434
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Credit Risk (Continued)
Fiduciary Funds
Minimum
Investment Type
California Local Agency Investment Fund
$
Total as of
Legal
June 30, 2014
Rating
AAA
N/A
766,284
N/A
Riverside County Treasurer's Pooled Investment Fund
2,622,776
N/A
Investment in City Bonds - Successor Agency RDA
2,065,000
N/A
-
2,065,000
35,141,436
AAA
35,141,436
75,234,126
California Asset Management Program
$
Unrated
15,007,481
-
$
-
15,007,481
766,284
2,622,776
Money market mutual funds - Successor Agency RDA
California Local Agency Investment Fund 75,234,126
N/A
-
Money market mutual funds - Assessment District
Successor Agency RDA
3,360,142
AAA
3,360,142
-
California Local Agency Investment Fund - Assessment District
4,157,982
N/A
-
4,157,982
Total
$
138,355,227
$
38,501,578
$
99,853,649
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for the
investments is the risk that, in the event of the failure of the counterparty to a transaction, a
government will not be able to recover the value of investment or collateral securities that are in
the possession of an outside party.
As of June 30, 2014, none of the City’s deposits or investments were exposed to custodial credit
risk.
Concentration of Credit Risk
The City’s investment policy imposes restrictions on the percentage the City can invest in certain
types of investments, which the City is in compliance. As of June 30, 2014, in accordance with
GASB Statement no. 40, if the City has invested more than 5% of its total investments in any one
issuer then they are exposed to concentration of credit risk. The City is not invested in any one
issuer that is more than 5% of its total investments.
- 51 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Concentration of Credit Risk (Continued)
The City’s Investment policy imposes the following restrictions on the maximum percentage it can
invest in a single type of investment.
Issuer
United States Treasury Bills, Notes, Bonds
United States Government-Sponsored
Agency Securities
Banker’s Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Time Certificates of Deposit
Repurchase Agreements
Money Market Mutual Funds
Local Agency Investment Fund (LAIF)
Structured Notes (STRIPS)
Local Government Investment Pools
Portfolio
Maximum
100%
Single Issuer
Maximum
N/A
100%
40%
25%
30%
15%
20%
30%
20%
$50M/Acct
20%
50%
30%
30%
10%
N/A
N/A
N/A
5%
N/A
N/A
N/A
N/A
N/A - Not Applicable
The City’s policy is more conservative than state law, which has no issuer concentration limits on
federal agency debt. The federal agency debt that the City purchases have implied credit ratings of
“AA+/Aaa”.
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to
fair value losses arising from increasing interest rates. The City's investment policy states that the
City shall not invest in securities with maturities exceeding five years and the weighted-average
maturity of the City portfolio shall not exceed 540 days. The City has elected to use the segmented
time distribution method of disclosure for its interest rate risk.
- 52 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Interest Rate Risk (Continued)
As of June 30, 2014, the City had the following investments and maturities:
Primary Government
Investment Type
Investment Fund
California Asset
Management Program
Money market mutual funds
Investment Fund
Total
Investment Type
Investment Fund
California Asset
Management Program
Investment in City Bonds
Money market mutual funds Successor Agency RDA
LAIF - Successor Agency RDA
Money market mutual funds Assessment District
LAIF - Assessment District
Total
Less Than
6 months
$
61,170,870
6 months 1 year
$
-
$
Over
3 years
-
$
Fair
Value
-
$
61,170,870
3,739,833
-
-
-
3,739,833
102,518,141
-
9,973,750
-
-
102,518,141
9,973,750
5,833,019
-
-
-
5,833,019
20,864,590
-
-
-
20,864,590
-
$ 204,100,203
$ 194,126,453
$
Less Than
6 months
$
1 year 3 years
15,007,481
9,973,750
$
6 months 1 year
$
-
$
1 year 3 years
-
$
Over
3 years
-
$
Fair
Value
-
$
15,007,481
766,284
-
-
-
766,284
2,622,776
128,000
-
379,000
1,558,000
2,622,776
2,065,000
35,141,436
75,234,126
-
-
-
35,141,436
75,234,126
3,360,142
4,157,982
$ 136,418,227
-
379,000
1,558,000
3,360,142
4,157,982
$ 138,355,227
$
- 53 -
$
$
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated
by California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The fair value of the City’s investment in this pool is reported in the accompanying
financial statements at amounts based upon the City’s pro-rata share of the fair value provided by
LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance
available for withdrawal is based on the accounting records maintained by LAIF, which are
recorded on an amortized cost basis.
Investment in California Asset Management Program
The California Asset Management Program (CAMP) is a public joint powers authority which
provides California Public Agencies with investment management services for surplus funds and
comprehensive investment management, accounting and arbitrage rebate calculation services for
proceeds of tax-exempt financings. The CAMP currently offers the Cash Reserve Portfolio, a
short-term investment portfolio, as a means for Public Agencies to invest these funds. Public
Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants
may also establish individual, professionally managed investment accounts (Individual Portfolios)
by separate agreement with the Investment Advisor.
Investments in the Pools and Individual Portfolios are made only in investments in which Public
Agencies generally are permitted by California statute. The CAMP may reject any investment and
may limit the size of a Participant’s account. The Pool seeks to maintain, but does not guarantee, a
constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool
accounts at any time by check or wire transfers. Requests for same-day wire transfers must be
made by 11:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the
Pool’s underlying portfolio.
Investment in Riverside County Treasurer’s Pooled Investment Fund
The City is a voluntary participant in the Riverside County Treasurer’s Pooled Investment Fund
(Pooled Fund). The fair value of the City’s investment in this pool is reported in the accompanying
financial statements at amounts based upon the City’s pro-rata share of the fair value that the
Riverside County Treasurer’s Office has provided for the entire Pooled Fund (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based upon the
accounting records that the Riverside County Treasurer’s Office maintains, which are recorded on
an amortized cost basis.
- 54 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
3. RECEIVABLES:
Primary Government's Governmental Funds
Notes and Loans Receivable:
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds will be used to finance the construction of the utility undergrounding and
pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. Bond maturities began
September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from
3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and
reports a receivable in the general fund that corresponds to the outstanding principal on the bonds.
As of June 30, 2014, the receivable balance was $1,526,000.
The Low Moderate Housing Asset Special Revenue Fund has $15,007 in home improvement loans.
Payments of interest and principal are due monthly on these loans.
The City entered into several individual loan agreements with residents of the Highlands Utility
Undergrounding Assessment District No. 04-01. The loans were issued by the City to pay off the
principal of the respective properties assessment. In turn, the residents agreed to pay to the City the
full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the
loan along with all accrued interest is due and payable at the earliest of September 2, 2036 or any
change in ownership of the property. At June 30, 2014 the total receivable from the Highlands
Deferral Loan Program is $56,117.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been
transferred to the Low Moderate Housing Asset Special Revenue Fund as the successor housing
entity. The Low Moderate Housing Asset Special Revenue Fund has a loan receivable for the
construction of a multi-family affordable housing development dated June 14, 2001, with a balance
of $6,787,629 is due from the Palm Desert Development Company. The loan is secured by a Deed
of Trust with assignment to property, rent and fixtures on the housing development located in Palm
Desert. Interest is earned and due annually at a rate of 1% per annum from the date on which the
final certificate of occupancy is issued. Principal on the loan is based on the applicable agency’s
percentage of positive net cash flow derived from the operations of the Development.
- 55 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
On August 28, 2008 the City Council approved through resolution the Energy Independence
Program (EIP), which is supported by Assembly Bill AB811. The EIP program allowed the City to
create the funding mechanism to assist the residents and businesses entering into a loan agreement
with the City and providing the money for the borrowers to acquire and install energy efficient
improvements. Assembly Bill AB811 allows the City to lien the properties through annual property
tax assessments for a period not to exceed 20 years. To date, 168 residents and business owners
entered into loan agreements with the City and have completed their improvements through the
EIP program. The loans are payable in two annual installments for a period of 5 years to 20 years
at an interest rate of 7% annually. On June 30, 2014 the outstanding loans receivable through the
EIP Program was $5,075,153.
Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been
transferred to the Palm Desert Housing Authority as the successor housing entity. The Housing
Authority has loans for several other projects, all of which are secured by a deed of trust. A
valuation allowance equal to the loan balance has been recognized since there is a significant
possibility that these loans will either become uncollectible or forgiven by the Housing Authority
at a future date if all the terms of the loans have been met.
Detailed information for these loans is as follows:
Project Name
Self-Help
Housing Program
Home Improvement
Loans
Loan
Balance
Outstanding
$
429,000
380,076
Interest
Rate
7.25%
N/A
Maturity
Date
30 years
or 2024
N/A
- 56 -
Secured By
Deed of Trust
Deed of Trust
Special Provisions
of Loan
Loan balance and interest due
upon maturity, unpaid balance
of loan or interest will bear an
interest rate of 12%.
Loan is payable upon change
or transfer of title, refinancing
or upon the death of the
borrower.
Restrictive
covenants are placed against
property
to
maintain
affordability for up to 45 years
in exchange for favorable loan
terms.
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
3. RECEIVABLES (CONTINUED):
Primary Government's Governmental Funds (Continued)
Notes and Loans Receivable (Continued):
Detailed information for these loans (Continued):
Project Name
Portola Palms
Mobilehome Park
Loan
Balance
Outstanding
$
110,715
Interest
Rate
3.00%
Maturity
Date
30 years
from date
of loan
Secured By
Deed of Trust
Desert Rose
2,289,606
3.00% 30 - 45 years* Deed of Trust
from date
of loan
Falcon Crest
5,269,856
3.00%
30 - 45
borrower.
from date
of loan
190,510
Rehabilitation,
Resale
3.00%
30 - 45
years
from date
of loan
Loan will be forgiven at
maturity unless the debtor is in
violation of the unit regulatory
agreement or the deed of trust.
Deed of Trust
years
Acquisition,
Special Provisions
of Loan
Loan balance and interest will
be forgiven at maturity if
debtor does not breach the
terms and conditions of either
the unit regulatory agreement
or note.
Deed of Trust
Assignment
of Rent
borrower.
Restrictive
covenants are placed against
property
to
maintain
affordability for up to 45 years
in exchange for favorable loan
terms.
* All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive
covenant.
- 57 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS:
Due To/From Other Funds
The composition of interfund balances as of June 30, 2014, was as follows:
Due To
General Fund
Low Moderate Housing Asset
Other Governmental Funds
Due From
Amount
$
62,561
General Fund
1,847,200
2,683,800
500,000
1,512
5,095,073
$
The General Fund advanced money to cover the cash shortage in the Community Development
Block Grant Special Revenue Fund until payment from the County is received.
The Low Moderate Housing Asset Special Revenue Fund amounts are related to the advances due
from the Successor Agency (former Redevelopment Agency) per AB 1484.
The Capital Golf Capital Projects Fund advanced $500,000 to Desert Willow Golf Course for
operations during the construction phase of the clubhouse and kitchen expansion.
Due To/From Component Unit
Due From
Component
Unit
Major Funds:
General Fund
$
$
285,000
1,232,275
1,517,275
The receivable by the General Fund is for rent owed by the Palm Desert Recreational Facilities
Corporation (PDRFC), and the receivable by the Desert Willow Golf Course represents funds
loaned to PDRFC for operation.
- 58 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED):
Interfund Transfers
The composition of interfund transfers as of June 30, 2014, was as follows:
Transfers In
Transfers Out:
General Fund
Other
Governmental
Funds
Office Complex
Parkview
Enterprise Fund
Totals
-
Prop A
Fire Tax
Special
Revenue
Fund
$ 1,553,000
936,286
-
733,013
1,669,299
-
1,669,299
437,500
-
-
437,500
-
437,500
$ 1,373,786
$ 1,553,000
$ 1,934,765
$ 4,861,551
$ 1,000,000
$ 5,861,551
General
Fund
$
Other
Governmental
Funds
$ 1,201,752
Total
$ 2,754,752
Internal
Service
Fund
$ 1,000,000
Totals
$ 3,754,752
Transfers are used to:
1. Move receipts restricted to debt service from the funds collecting the receipts to the debt
service funds as debt service payments become due,
2. Transfer revenues to provide for capital projects,
3. Transfer revenues to provide for additional resources to pay for expenditures, and
4. Transfer to cover future cost of assets.
- 59 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
5. CAPITAL ASSETS:
A summary of changes in capital assets at June 30, 2014, was as follows:
Primary Government - Governmental Activities
Balance at
July 1, 2013
Capital assets, not
being depreciated:
Land
Right-of-way
Internal service fund Construction-in-progress
Total capital assets, not
being depreciated
$
Capital assets, being
depreciated:
Buildings
Improvements other
than buildings
Infrastructure
Equipment - Internal
service fund
Total capital assets,
being depreciated
73,776,684
120,708,066
6,618,288
5,049,138
(2,047,209)
$
Balance at
June 30, 2014
Deletions
87,610
3,383,466
$
(383,294)
(54,869)
$
-
78,442,528
120,795,676
7,899,676
-
131,183
201,314,459
3,001,929
3,602,259
(438,163)
207,480,484
127,283,761
1,575,588
-
(308,868)
128,550,481
54,761,549
9,442,224
234,055,687
37,010
(73,467)
2,010,199
159,192
442,547
2,260,924
(674,284)
(225,146)
(166,924)
54,283,467
9,586,158
238,159,886
342,604
5,513,795
73,467
285,834
(805,210)
5,067,886
431,057,016
3,622,797
3,148,497
(2,180,432)
435,647,878
depreciated, net
264,441,713
$
$
Additions
211,421
Less accumulated
depreciation for:
Buildings
Improvements other
than buildings
Infrastructure
Equipment - Internal
service fund
Total accumulated
depreciation
Capital assets, net Governmental Activities
Transfers
(48,115,577)
(234,463)
(3,072,788)
234,734
(51,188,094)
(23,490,616)
(8,167,630)
(82,204,760)
32,904
-
(2,661,248)
(444,664)
(5,327,698)
539,428
77,101
82,978
(25,612,436)
(8,502,289)
(87,449,480)
(4,636,720)
(32,904)
(251,522)
791,815
(4,129,331)
(166,615,303)
(234,463)
(11,757,920)
1,726,056
(176,881,630)
465,756,172
3,388,334
$
6,390,263
- 60 -
(8,609,423)
$
(5,007,164)
(454,376)
$
(892,539)
258,766,248
$
466,246,732
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
5. CAPITAL ASSETS (CONTINUED):
A summary of changes in capital assets at June 30, 2014, was as follows:
Primary Government - Business-type Activities
Balance at
July 1, 2013
Capital assets, not
being depreciated:
Land
$
53,150,057
Additions
$
48,219
not being depreciated
53,150,057
48,219
being depreciated:
Buildings and
improvements
26,695,746
6,165,981
146,418
128,343
being depreciated
32,861,727
Less accumulated
depreciation for:
Buildings and
improvements
Deletions
$
Balance at
June 30, 2014
Reclassification
-
$
$
52,736,087
(462,189)
52,736,087
(181,173)
(89,029)
357,209
104,980
27,018,200
6,310,275
274,761
(270,202)
462,189
33,328,475
(7,340,882)
(4,027,619)
(965,587)
(768,577)
181,173
89,029
-
(8,125,296)
(4,707,167)
Total accumulated
depreciation
(11,368,501)
(1,734,164)
270,202
-
(12,832,463)
depreciated, net
21,493,226
(1,459,403)
-
462,189
Capital assets, net Business-type Activities
$
74,643,283
$
(1,411,184)
- 61 -
-
(462,189)
$
-
$
-
20,496,012
$
73,232,099
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
5. CAPITAL ASSETS (CONTINUED):
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government
Public safety
Public works
Depreciation expenses for internal service funds is charged
to various functions based on usage of capital assets
Total depreciation expense - governmental activities
Business-type Activities:
Parkview Office complex
Total depreciation expense - business-type activities
- 62 -
$
2,002,837
1,182,482
138,420
5,797,069
2,385,590
251,522
$
11,757,920
$
1,299,803
434,361
$
1,734,164
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
6. LONG-TERM LIABILITIES:
The following is a summary of long-term liability transactions of the City for the year ended
June 30, 2014:
Primary Government - Governmental Activities
Balance
July 1, 2013
Additions
Reductions
Balance
Due Within
June 30, 2014
One Year
Special assessment debt
with government
commitment
$
1,589,000
$
-
$
(63,000)
$
1,526,000
$
37,000
Limited obligation
improvement bonds
2,521,000
-
(456,000)
2,065,000
128,000
Lease revenue bonds
4,810,000
-
(155,000)
4,655,000
170,000
746,792
668,906
(394,366)
1,021,332
320,000
2,587,530
1,622,498
(1,518,188)
2,691,840
600,000
Claims and judgments
payable
Compensated absences
payable
Total
$
12,254,322
$
2,291,404
$
(2,586,554)
$
11,959,172
$
1,255,000
Debt service payments for the special assessment debt with government commitment, tax
allocation bonds and notes payable are made from debt service funds and a special revenue fund.
Primary Government -Business-type Activities:
Balance
July 1, 2013
Capital leases
$
1,751,083
Additions
$
Reductions
-
- 63 -
$
(528,168)
$
Balance
Due Within
June 30, 2014
One Year
1,222,915
$
639,853
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
6. LONG-TERM LIABILITIES (CONTINUED):
Special Assessment Debt with Government Commitment
Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement
Bonds, Series 2006
On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The
proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay
the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the
property tax rolls of those properties benefiting from the improvements. In the event that
assessment collections are insufficient to pay the debt service, the City has a potential obligation to
provide additional funds to pay the debt service, therefore these bonds are reported as special
assessment debt with government commitment. Bond maturities begin September 2, 2007, and
continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The
City of Palm Desert is the only bondholder on record of the bonds.
The future debt service requirements on the Highlands Undergrounding Assessment District
No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2037
$
Principal
37,000
38,000
41,000
42,000
44,000
259,000
331,000
424,000
310,000
$ 1,526,000
- 64 -
$
Interest
76,624
74,871
72,994
70,991
68,894
307,889
233,125
136,576
24,514
$ 1,066,478
$
Total
113,624
112,871
113,994
112,991
112,894
566,889
564,125
560,576
334,514
$ 2,592,478
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Limited Obligation Bonds
Limited Obligation Improvement Bonds Series 2009A (Taxable)
On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds
Series 2009A (Taxable). The proceeds of the Bonds were used to fund the City’s Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond
purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to
par value.
The Series 2009A (Taxable) bonds consist of $2,015,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A
(Taxable) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
Principal
82,000
77,000
82,000
77,000
77,000
385,000
401,000
85,000
$ 1,266,000
$
- 65 -
$
$
Interest
36,750
34,365
31,980
29,595
27,285
101,895
43,185
1,275
306,330
$
$
Total
118,750
111,365
113,980
106,595
104,285
486,895
444,185
86,275
1,572,330
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Limited Obligation Bonds (Continued)
Limited Obligation Improvement Bonds Series 2009B (Taxable)
On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds
Series 2009B (Taxable). The proceeds of the Bonds were used to fund the City’s Energy
Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond
purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to
par value.
The Series 2009B (Taxable) bonds consist of $1,136,000 Serial Bonds with interest at 3% payable
semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and
continue annually through September 2, 2029.
The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B
(Taxable) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
Principal
$
46,000
46,000
48,000
49,000
50,000
258,000
249,000
53,000
$
799,000
- 66 -
$
$
Interest
23,280
21,900
20,490
19,035
17,550
64,950
26,415
795
194,415
$
$
Total
69,280
67,900
68,490
68,035
67,550
322,950
275,415
53,795
993,415
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Lease Revenue Bonds
EIP Series 2009
On August 31, 2009, the Palm Desert Financing Authority issued $5,225,000 Energy Independence
Program Variable Rate Demand lease Revenue Bonds, Series 2009 (Federally Taxable). The
proceeds of the bonds were used to partially pay off the General Fund EIP loan of $1,196,000
originally loaned to start up the Energy Loan Program, and the remaining bond funds were used to
fund the City’s Energy Independence Program.
The Series 2009 bonds consist of $5,225,000 Serial Variable Rate Bonds with interest payable on a
monthly basis based on a weekly rate period based on the USD-LIBOR-BBA 1-month interest rate.
The City has entered into a swap agreement to effectively fix the interest rate with a floor of 1.93%
and an interest rate cap of 5.25%. Principal payments are due on September 1 of each year. Bond
maturities commenced on September 1, 2010, and will continue annually through
September 1, 2029.
On June 14, 2012 the First Amendment to the Reimbursement Agreement between the City of
Palm Desert and Wells Fargo Bank, National Associations was executed. The first amendment of
the reimbursement agreement extended the letter of credit associated with the bonds for an
additional three (3) years; from August 30, 2012 to August 30, 2015. No other material changes
were executed with this first amendment.
The future debt service requirements computed at a variable rate of 0.15150% at June 30, 2014 on
the Lease Revenue Bonds Series 2009 are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
Principal
$
170,000
180,000
190,000
205,000
220,000
1,345,000
1,885,000
460,000
$ 4,655,000
$
$
Interest
6,839
6,568
6,283
5,976
5,647
22,450
10,060
118
63,941
The Lease Revenue Bonds Series 2009 were called in September 2014.
- 67 -
$
$
Total
176,839
186,568
196,283
210,976
225,647
1,367,450
1,895,060
460,118
4,718,941
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Claims and Judgments Payable
Estimates for all workers' compensation and general liabilities up to the self-insured levels have
been recorded as long-term liabilities. At June 30, 2014, total estimated workers' compensation and
general liability claims payable, including a provision for incurred but not reported claims, were
$411,477 and $609,855, respectively, for a total claims and judgments payable of $1,021,332.
Changes in claims liabilities during the past two years are as follows:
Claims payable - Beginning of Year
Incurred claims (including IBNR)
and changes in estimates
Claims payments
Claims payable - End of Year
June 30, 2013
$
980,758
$
46,639
(280,605)
746,792
June 30, 2014
$
746,792
$
669,366
(394,826)
1,021,332
Business-type Activities - Capital Leases
Obligations under capital leases are as follows:
PNCEF, LLC dba PNC Equipment Finance - The present value of the
minimum lease payment on the Toro Greens mowers and equipment
lift was capitalized at $78,329 using an interest rate of 4.60%. Lease is
payable in 48 monthly installments of $1,789 beginning December 15,
2010. There is a $1 bargain purchase option (Termination Amount)
which will be exercised upon the expiration of the lease.
De Lage Lande Public Finance LLC - The present value of the
minimum lease payment on the Club Car Golf Carts was capitalized at
$738,639 using an interest rate of 4.81%. Lease is payable in 48
monthly installments of $13,686 beginning December 15, 2010. A
balloon payment in the amount of $172,210 is due on January 1, 2015.
- 68 -
$
8,841
236,415
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Business-type Activities - Capital Leases (Continued)
GPSI Leasing, LLC - The present value of the minimum lease
payment on the GPSI Visage Golf Cart GPS System was capitalized at
$303,530 using an interest rate of 16.66%. On December 27, 2013 the
GPSI lease was amended to extend the agreement for an additional
31 months and lower the payment to $7,044. The amended lease is
payable in 48 monthly installments of $7,044 beginning January 1,
2014. .
$
126,028
Wells Fargo Financial Leasing, Inc. - The present value of the
minimum lease payment on the Toro golf course maintenance
equipment was capitalized at $1,547,296 using an interest rate of
2.63%. Lease is payable in 60 monthly installments of $27,489
beginning February, 28, 2012.
822,982
Wells Fargo Financial Leasing, Inc. - The present value of the
minimum lease payment on the TruTurf roller and Lely spreader were
capitalized at $41,440 using an interest rate of 2.63%. Lease is
payable in 60 monthly installments of $736 beginning
March 28, 2012.
22,727
Wells Fargo Financial Leasing Inc. - The present value of the
minimum lease payment on the JCB grapple bucket was capitalized at
$10,481 using an interest rate of 2.63%. Lease is payable in
60 monthly installments of $186 beginning April 28, 2012.
5,922
Present value of net minimum lease payments
Less: current portion
1,222,915
(639,853)
$
- 69 -
583,062
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Business-type Activities - Capital Leases (Continued)
The following is a schedule, by year, of future minimum lease payments and present value of the
net minimum lease payments for capital leases as of June 30, 2014:
Minimum
Lease
Payments
$
675,743
425,464
284,516
42,264
1,427,987
(205,072)
Year Ending
June 30,
2015
2016
2017
2018
Less: amounts representing interest
Present value of net minimum lease
payments
$
1,222,915
$
2,912,576
(1,917,322)
The assets acquired through capital lease are as follows:
Less: accumulated depreciation
$
995,254
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT:
Objective:
The Palm Desert Financing Authority executed an interest rate swap agreement on August 31, 2009
with swap provider Wells Fargo Bank, N.A (counterparty) in connection with the issuance of the
$5,225,000 Palm Desert Financing Authority Energy Independence Program Variable Rate
Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). The Swap Agreement is a five
year swap agreement scheduled to terminate on September 1, 2014. The swap establishes an
interest rate floor of 1.93% and an interest rate cap of 5.25% adjusted weekly every Thursday at the
one month USD-LIBOR-BBA rate for that period.
- 70 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT (CONTINUED):
Details on the swap agreement are as follows:
Original
Notional
Amount
$
5,225,000
Interest Rate
Range
1.93% - 5.25%
Issue
Wells Fargo
Termination
Date
09/01/2014
Initial
Effective
Date
08/31/2009
Terms:
Under the swap agreement, the City will make a monthly interest payment at the variable rate
between 1.93% and 5.25%. The City will receive a variable rate interest payment for those variable
interest rates in excess of the 5.25% cap and makes a payment if the variable rate is less than
1.93%. The rate is adjusted weekly every Thursday at the 1-Month USD-LIBOR-BBA rate. The
swap is for a total notional amount of $5,225,000 and will terminate on September 14, 2014.
Summary of Activities in Cash Flow Hedging Derivative Instrument:
Outstanding
Notional
Amount
$
4,655,000
Fair Value
at
June 30, 2013
$
98,150
Change in
Fair Value
$
(77,006)
Fair Value
at
June 30, 2014
$
21,144
As of June 30, 2014, the fair value of $21,144 is reported as a deferred asset from derivative
instruments and a liability from derivative instruments in the Statements of Net Position.
Credit Risk:
As of June 30, 2014, the City was exposed to credit risk because the swap had a negative fair
value. However, should interest rates change and the fair value of the swap become positive, the
City would not be exposed to credit risk in the amount of the derivative’s fair value.
The swaps counterparty, Wells Fargo Bank N.A., have the following credit ratings:
Standards
& Poor
AA-
Wells Fargo Bank N.A.
- 71 -
Moody’s
Aa3
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
7. DERIVATIVE INSTRUMENTS - INTEREST RATE SWAP AGREEMENT (CONTINUED):
Basis Risk:
The swaps do expose the City to basis risk, which refers to a mismatch between the interest rate
received from the swap contract and the interest paid on the variable rate payments to be made on
the debt. The City pays the counterparty a variable interest rate ranged between 1.93% and 5.25%
and receives a variable rate in excess of the 5.25% cap, based on the one month
UDS-LIBOR-BBA. The City is at risk that the variable interest rate calculated on the debt is less
than the floor of 1.93%.
Termination Risk:
The swaps may be terminated by the City or the counterparty if the other party fails to perform
under the terms of the swap agreements. In addition, the City has the option to terminate the swaps
upon proper notification to the counterparty. If the swaps are terminated, the City would
prospectively pay the variable rates on the portion of the outstanding bonds related to the swap
agreements. The termination of the swap agreements could therefore increase the City’s total debt
service. Also, if at the time of the termination, the swaps have a negative fair value, the City would
be liable to the counterparty for a payment equal to such negative fair value. As of June 30, 2014
the swap had a negative fair value of $21,144.
Swap Payments and Associated Debt:
Using a variable rate range between 1.93% and 5.25% the Series 2009 Financing Authority Energy
Independence Program Variable Rate Demand Lease Revenue Bonds, as of June 30, 2014, debt
service requirements of the Certificates and the swap payments through the termination date of
September 1, 2015, assuming a current interest rate of 1.93% are as follows. As rates vary, the
variable rate interest payments and net swap payments will vary.
Year Ending
June 30,
2015
Variable Rate Debt
Interest Rate
Fixed Debt
Principal
Interest
Total
Swap, Net
Service
$
170,000 $
6,839 $
176,839 $
15,261 $
185,261
- 72 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
8. DEFERRED COMPENSATION PLAN:
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a
portion of their salary until future years. The deferred compensation is not available to employees
until termination, retirement, death or unforeseeable emergency. Pursuant to changes in August
1996, of IRC Section 457, in January 1997, the City established a trust in which all assets held by
Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement Corporation (ICMA) were
placed. The City does not have fiduciary responsibility for the plan assets held by NRS and ICMA.
The assets, all property and rights purchased with such amounts and all income attributable to such
amounts are held in trust for the exclusive benefit of the participants and the beneficiaries. The
assets are no longer the property of the City, and as such, are no longer subject to the claims of the
City's general creditors. As a result, the assets in the amount of $11,833,005 held by NRS and
ICMA of the 457 Plan are not reflected in the City’s financial statements.
9. PENSION PLAN:
a. Plan Description:
The City of Palm Desert contributes to the California Public Employees Retirement System
(CalPERS), an agent multiple-employer public employee defined benefit pension plan.
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments and
death benefits to plan members and beneficiaries. CalPERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit
provisions and all other requirements are established by state statute and city ordinance. Copies
of CalPERS' annual financial report may be obtained from their executive office: 400 Q Street,
Sacramento, CA 95814.
b. Funding Policy:
Participants are required to contribute 8% of their annual covered salary. The Participants
contribute 100% of required CalPERS participant share. The City is required to contribute at an
actuarially determined rate; the rate for fiscal year 2013-2014, was 26.548% for non-safety
employees of annual covered payroll. The contribution requirements of plan members and the
City are established and may be amended by CalPERS.
- 73 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
9. PENSION PLAN (CONTINUED):
c. Annual Pension Cost:
For 2014, the City's annual pension cost of $3,994,594 for CalPERS was equal to the City's
required and actual contributions. The required contribution was determined as part of the
June 30, 2013, actuarial valuation using the entry age normal actuarial cost method. The
actuarial assumptions included: a) 7.5% investment rate of return (net of administrative
expenses), b) projected annual salary increases of 3.3% to 14.2% depending on age, service and
type of employment, and c) 3.0% per year cost-of-living adjustments. Both a) and b) included
an inflation component of 2.75%. The actuarial value of CalPERS’ assets was determined using
techniques that smooth the effects of short-term volatility in the market value of investments
over a three-year period (smoothed market value). CalPERS' unfunded actuarial accrued
liability is being amortized as a level percentage of projected payroll on a closed basis that
depends on the plan's entry into CalPERS. The remaining amortization period was 20 years.
d. Three-Year Trend Information for CalPERS:
Fiscal
Year
6/30/12
6/30/13
6/30/14
Annual Pension
Cost (APC)
$
3,527,962
3,470,633
3,994,594
Percentage
APC Contributed
100%
100%
100%
Net Pension
Obligation
$
-
e. Schedule of Funding Progress for CalPERS:
As of June 30, 2013, the most recent actuarial valuation date, the plan was 62.9% funded. The
actuarial accrued liability for benefits was $103.06 million, and the actuarial value of assets
was $64.82 million, resulting in an unfunded actuarial accrued liability (UAAL) of
$38.24 million. The covered payroll (annual payroll of active employees covered by the plan)
was $10.79 million, and the ratio of the UAAL to the covered payroll was 354.5%.
The schedule of funding progress, presented as required supplementary information following
the notes to basic financial statements, presents multi-year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
- 74 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
10. FUND BALANCES:
Fund Balances
In the fund financial statements, reserves segregate portions of fund balances that are either not
available or have been earmarked for specific purposes. The various reserves established as of
June 30, 2014, were as follows:
Prop A
Fire Tax
Special
Revenue
General
Fund
Nonspendable:
Advances
Loans and notes
receivables
Prepaid costs
Restricted for:
Capital projects
Debt service
Low income housing
Public facilities
Public safety
Special programs
Street related purposes
Committed to:
Aquatic center
Capital asset replacement
Energy loan program
Assigned to:
Capital projects
Property acquistion
Community contingency
Debt service
Public facilities
Special programs
Unassigned
Totals
$
Low
Moderate
Housing
Asset
Special
Revenue
5,333,800
$
-
$
Measure A
Special
Revenue
-
$
Other
Governmental
Funds
-
$
-
Total
$
5,333,800
1,582,117
829,403
-
1,152
-
5,561
1,582,117
836,116
-
2,458,670
-
42,578,427
-
18,538,244
21,973,168
105,952
11,401,415
3,867,580
941,462
8,436,491
3,893,026
21,973,168
105,952
53,979,842
3,867,580
3,400,132
8,436,491
22,431,270
-
-
-
-
2,135,692
11,875,488
7,632,888
2,135,692
11,875,488
7,632,888
455,000
2,691,840
121,188
77,974
1,079,421
66,203,203
$ 78,373,946
2,458,670
$ 42,579,579
$ 18,538,244
10,963,431
420,387
10,130,979
667,255
2,247,772
$ 96,698,547
10,963,431
420,387
455,000
2,691,840
10,252,167
745,229
3,327,193
66,203,203
$ 238,648,986
$
- 75 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
10. FUND BALANCES (CONTINUED):
Fund Balances (Continued)
The fund balances reported on the fund statements now consist of the following categories:
Nonspendable - This classification includes amounts that cannot be spent because they are either
(a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted - This classification includes amounts that can be spent only for specific purposes
stipulated by constitution, external resource providers or through enabling legislation.
Committed - This classification includes amounts that can be used only for the specific purposes
determined by a formal action of the City Council. The City considers the adoption of a resolution
to institute a formal action of City Council for the purpose of establishing, modifying or rescinding
committed fund balances.
Assigned - This classification includes amounts to be used by the government for specific purposes
but do not meet the criteria to be classified as restricted or committed. This includes amounts that
are assigned through adoption of a resolution by City Council. The Council may delegate the
ability of an employee or committee to assign uses of specific funds, for specific purposes. Such
delegation of authority has not yet been granted to persons or bodies other than the City Council.
Unassigned - This classification includes the residual balance for the government’s general fund
and includes all spendable amounts not contained in other classifications. In other funds, the
unassigned classification is used only to report a deficit balance resulting from overspending for
specific purposes for which amounts had been restricted, committed or assigned.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balances are available, the City’s policy is to apply restricted fund balance first.
When an expenditure is incurred for purposes for which committed, assigned or unassigned fund
balances are available, the City’s policy is to apply committed fund balance first, then assigned
fund balance, and finally unassigned fund balance.
- 76 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
11. RISK MANAGEMENT:
a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement:
The City of Palm Desert a member of the California Joint Powers Insurance Authority
(Authority). The Authority is composed of 119 California public entities and is organized
under a joint powers agreement pursuant to California Government Code §6500 et seq. The
purpose of the Authority is to arrange and administer programs for the pooling of self-insured
losses, to purchase excess insurance or reinsurance, and to arrange for group purchased
insurance for property and other lines of coverage. The Authority began covering claims of its
members in 1978. Each member government has an elected official as its representative on the
Board of Directors which operates through a 9-member Executive Committee.
b. Self-Insurance Programs of the Authority:
Each member pays an annual contribution to cover estimated losses for the coverage period.
This initial funding is paid at the beginning of the coverage period. After the close of the
coverage period, outstanding claims are valued. A retrospective deposit computation is then
conducted annually thereafter until all claims incurred during the coverage period are closed on
a pool-wide basis. This subsequent cost re-allocation among members based on actual claim
development can result in adjustments of either refunds or additional deposits required.
The total funding requirement for self-insurance programs is estimated using actuarial models
and pre-funded through the annual contribution. Costs are allocated to individual agencies
based on exposure (payroll) and experience (claims) relative to other members of the
risk-sharing pool. Additional information regarding the cost allocation methodology is
provided below.
Liability
In the liability program, claims are pooled separately between police and non-police exposures.
(1) The payroll of each member is evaluated relative to the payroll of other members. A variable
credibility factor is determined for each member, which establishes the weight applied to payroll
and the weight applied to losses within the formula. (2) The first layer of losses includes incurred
costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total
incurred costs within the first layer. (3) The second layer of losses includes incurred costs from
$30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total
incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up to the
reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation
within the first and second loss layers.
- 77 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
11. RISK MANAGEMENT (CONTINUED):
b. Self-Insurance Programs of the Authority (Continued):
Liability (Continued)
(5) Costs of covered claims for $5 million to $10 million are paid under a reinsurance contract
subject to a $2.5 million annual aggregate deductible. The $2.5 million annual aggregate
deductible is fully covered under a separate policy; as such no portion of it is retained by the
Authority. Costs of covered claims from $10 million to $15 million are paid under two reinsurance
contracts subject to a combined $3 million annual aggregate deductible. The $3 million annual
aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from
$15 million up to $20 million are paid under reinsurance agreements. (7) Costs of covered claims
from $20 million to $50 million are paid under excess insurance policies.
The overall coverage limit for each member including all layers of coverage is $50 million per
occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a
pooled sub-limit of $30 million per occurrence. This $30 million subsidence sub-limit is composed
of (a) $5 million retained within the pool’s SIR, (b) $15 million in reinsurance, subject to the same
annual aggregate deductibles previously stated, and (c) $10 million in excess insurance. The excess
insurance layer has a $10 million annual aggregate.
Workers’ Compensation
In the workers’ compensation program claims are pooled separately between public safety
(police and fire) and non public-safety exposures. (1) The payroll of each member is evaluated
relative to the payroll of other members. A variable credibility factor is determined for each
member, which establishes the weight applied to payroll and the weight applied to losses
within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first
layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each
occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second
layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of
$2 million are distributed based on the outcome of cost allocation within the first and second
loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a
reinsurance policy. Protection is provided per statutory liability under California Worker’s
Compensation Law.
Employer’s Liability losses are pooled among members to $2 million. Coverage from
$2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability
losses from $5 million to $10 million are pooled among members.
- 78 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
11. RISK MANAGEMENT (CONTINUED):
c. Purchased Insurance:
Property Insurance
The City of Palm Desert participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies. The City
of Palm Desert’s property is currently insured according to a schedule of covered property
submitted by the City of Palm Desert to the Authority. The City of Palm Desert’s property
currently has all-risk property insurance protection in the amount of $217,408,986. There is a
$5,000 deductible per occurrence except for non-emergency vehicle insurance, which has a
$1,000 deductible. Premiums for the coverage are paid annually and are not subject to
retrospective adjustments.
Crime Insurance
The City of Palm Desert purchases crime insurance coverage in the amount of $10,000,000
with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums
are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance
The City of Palm Desert further protects against liability damages by requiring tenant users of
certain property to purchase low-cost tenant user liability insurance for certain activities on
City property. The insurance premium is paid by the tenant user and is paid to the City of Palm
Desert according to a schedule. The City of Palm Desert then pays for the insurance. The
insurance is arranged by the Authority.
d. Adequacy of Protection:
During the past three fiscal years, none of the above programs of protection experienced
settlements or judgments that exceeded pooled or insured coverage. There were no significant
reductions in pooled or insured liability coverage in the fiscal year 2013-14.
- 79 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
12. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES:
Unearned Revenues
Major Governmental Funds
General Fund has received $16,997 in unearned revenues from the Successor Agency that are
deemed unearned until expenditures are incurred related to park improvements.
Low and Moderate Housing Asset Special Revenue Fund has other amounts reported as unearned
revenues include $6,796 for damages on purchased home.
Measure A Special Revenue Fund has $15,000,000 in funds received from the Successor Agency
that are deemed unearned until expenditures are incurred related to construction of interchange.
$3,607 of grant funds are deemed unearned until expenditures are incurred in the Recycling Fund.
$62,837 of grant funds are deemed unearned until expenditures are incurred in the Public Safety
Police Grants Fund.
$12,182 represents the unused portions of prepaid aquatic fees in the Aquatic Center Fund.
Housing Authority fund has other amounts reported as unearned revenues include $7,396 for
prepaid rents.
Capital Projects Fund
Capital Projects Reserve fund has $137,713 of unearned revenue represents deposits for street
improvements, as the funds have not been spent as of June 30, 2014.
Business-type Activities
The balance of $157,697 represents the unused portions of prepaid golf fees, value of unredeemed
gift certificates and unearned rent.
Component Unit
The balance of $97,000 represents the unused portions of prepaid banquets.
- 80 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
12. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES (CONTINUED):
Deferred Inflows of Resources
Major Governmental Funds
General Fund
On March 13, 1997, the former Redevelopment Agency (Agency) purchased land from the City for
the purpose of developing a second golf course financed by a note in the amount of $2,055,000.
The note has no specific due date. Recognition of the revenue from the sale has been reported as
deferred inflows of resources until it becomes available.
On March 13, 1997, the City entered into an agreement with subsequent amendments on
June 4, 1997, May 18, 2004, and May 12, 2009, with the Palm Desert Recreational Facilities
Corporation (Corporation) for the use of property at the City's Golf Resort (Desert Willow).
Payment is due when the Corporation's revenues exceed its expenses. At June 30, 2014, the
Corporation owed the City rent totaling $285,000, which will be recognized as revenue by the City
when the rent is paid by the Corporation.
The State of California collects taxes and fees for the City and makes payments to the City at
various times. Due to the City’s policy of recognizing revenue, the amount of $246,163 for sales
tax has been reported as unavailable.
The City entered into several individual loan agreements with residents of the Highlands Utility
Undergrounding Assessment District No. 04-01. The residents agreed to pay to the City the full
cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the loan
along with all accrued interest is due and payable at the earliest of September 2, 2036, or any
change in ownership of the property. As of June 30, 2014, $33,602 in interest has been accrued.
Recognition of the interest revenue has been reported as unavailable until it becomes due.
Low and Moderate Housing Asset Special Revenue Fund
Uncollected interest of $33,938 due from the Palm Desert Development Company has been
reported as unavailable.
Measure A Special Revenue Fund
Unavailable revenue of $1,620,925 is related to expenditures incurred through June 30, 2014 which
are to be reimbursed from other governments, but have not been received within the availability
period.
- 81 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
12. UNEARNED REVENUES AND DEFERRED INFLOWS OF RESOURCES (CONTINUED):
Deferred Inflows of Resources (Continued)
Interest accrued on loans of $179,894 on loans receivable through the City’s EIP Program is
reported as unavailable (see Note 3).
Debt Service Fund
Assessment receivables in the amount of $1,382,905 represent future assessments to be received
from property owners in Highlands Undergrounding Assessment Districts 04-1 to pay for longterm obligations incurred in making capital improvements in the Assessment District. Recognition
of the revenue from the assessments has been deferred until it becomes available. Once received,
the monies will be used to make annual debt service payments.
13. OTHER POST-EMPLOYMENT BENEFITS:
a. Plan Description:
In addition to the pension benefits described in Note 9, the City provides other
post-employment benefits (OPEB) through the California Employers’ Retiree Benefit Trust
Fund (CERBT), an agent multiple-employer defined benefit healthcare plan administered by
the California Public Employees’ Retirement System (CalPERS).
All full-time or part-time employees who meet the eligibility requirements for this program
may continue their medical coverage through the CalPERS Health Plan and receive
reimbursement from the City for a portion of the costs for the coverage. Separate financial
statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North, 400
Q Street, Sacramento, CA 95811, or by visiting the CalPERS website at www.calpers.ca.gov.
Employees Hired Prior to January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or
after age 50 with at least 10 consecutive years of service with the City. Eligible employees
must be covered under the CalPERS Health Plan at the time of retirement and elect to
participate in the stipend program within 30 days of retirement.
- 82 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
13. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
a. Plan Description (Continued):
Employees Hired Prior to January 1, 2008 (Continued)
The City’s contribution towards the coverage is based on years of service as follows:
Consecutive Years of Service
With the City at Retirement
10 years of service
11 years of service
12 years of service
13 years of service
14 years of service
15 or more years of service
City’s Contribution
Percentage
50%
55%
60%
65%
70%
75%
Employees Hired On or After January 1, 2008
Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or
after age 50 with at least 15 consecutive years of service with the City. Eligible employees
must be covered under the CalPERS Health Plan at the time of retirement and elect to
participate in the stipend program within 30 days of retirement. The stipend is discontinued
when the retiree reaches Medicare eligibility age. The City’s contribution towards the
coverage will be applied to the lowest cost plan and is based on age at retirement and
consecutive years of service with the City as outlined in the following table:
Age
50
51
52
53
54
55+
15
0%
10%
20%
30%
40%
50%
16
5%
15%
25%
35%
45%
50%
Consecutive Years of Service at Retirement
17
18
19
20
21
22
10%
15%
20%
25%
30%
35%
20%
25%
30%
35%
40%
45%
30%
35%
40%
45%
50%
50%
40%
45%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
50%
23
40%
50%
50%
50%
50%
50%
24
45%
50%
50%
50%
50%
50%
25+
50%
50%
50%
50%
50%
50%
Employees with at least 5 years of service, not meeting the eligibility requirements for the
stipend program, who retire simultaneously from the City and CalPERS are eligible to continue
medical coverage through the CalPERS Health Plan. The City is required to pay the CalPERS
minimum employer contribution ($115 in 2013 and $119 in 2014) for these employees.
- 83 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
b. Funding Policy:
The contribution requirements of plan members and the City are established and may be
amended by the City, City Council, and/or the employee associations. Currently, contributions
are not required from plan members. During the fiscal year ended June 30, 2014, the City
contributed $776,318 to the plan, which included $324,154 of the annual required contribution
and $452,164 pay-as-you-go premiums. The purpose of these contributions is to cover the
required City contribution rate of 2.96% of annual covered payroll (annual payroll of active
employees covered by the plan) and to prefund benefits. As a result, the City calculated and
recorded a Net OPEB Asset, representing the difference between the Annual Required
Contribution (ARC) and actual contributions, as presented below:
Annual required contribution (ARC)
Interest on Net OPEB obligation (asset)
Adjustment to ARC
Annual OPEB cost
Contribution made
Decrease in Net OPEB obligation (asset)
Net OPEB obligation (asset) at June 30, 2013
Net OPEB obligation (asset) at June 30, 2014
$
$
324,154
(562,609)
535,133
296,678
(776,318)
(479,640)
(7,968,971)
(8,448,611)
The contribution rate of 2.96% is based on the ARC of $324,154, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis is projected to cover the annual
normal cost and the amortization of unfunded actuarial accrued liabilities (or funding excess)
over a thirty year period.
c. Annual OPEB Cost and Net OPEB Obligation (Asset):
For fiscal year 2014, the City’s annual OPEB cost (expense) was $296,678. Information on the
annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation
(Asset) is available for June 30, 2014 and the two previous fiscal years, are presented below:
Fiscal
Year
Ended
6/30/2012
6/30/2013
6/30/2014
$
Annual
OPEB
Cost
261,307
380,816
296,678
Actual
Contribution
(Net of
Adjustments)
$
791,256
85,221
776,318
- 84 -
Percentage of
Annual
OPEB Cost
Contributed
303%
22%
262%
Net OPEB
Obligation
(Asset)
$
(8,264,566)
(7,968,971)
(8,448,611)
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
d. Funded Status and Funding Progress:
As of June 30, 2013, the most recent actuarial valuation date, the plan was 86% funded. The
actuarial accrued liability for benefits was $11.23 million, and the actuarial value of assets was
$9.71 million, resulting in an unfunded actuarial accrued liability (UAAL) of $1.52 million.
The covered payroll (annual payroll of active employees covered by the plan) was
$9.67 million, and the ratio of the UAAL to the covered payroll was 16%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
City are subject to continual revision as actual results are compared with past expectations and
new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to basic financial statements, presents
multi-year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits.
e. Actuarial Methods and Assumptions:
Projections of benefits for financial reporting purposes are based on the substantive plan and
include the types of benefits provided at the time of each valuation. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets consistent with the
long-term perspective of the calculations.
In the June 30, 2013 actuarial valuation, the entry age normal actuarial cost method was used.
The actuarial assumptions included a 7.06% investment rate of return (net of administrative
expenses) and an annual healthcare cost trend rate of 7.5% in 2015, reduced by decrements to
an ultimate rate of 5% in 2020. A 3.0% per annum in aggregate in future salaries is also
assumed in the valuation. The City’s unfunded actuarial accrued liability will be amortized as
a level percentage of projected covered payroll on a closed basis. The amortization period at
June 30, 2014, was 24 years.
- 85 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
14. SPECIAL ASSESSMENT DEBT:
Below is a summary of the changes in the special assessment bonds payable:
Balance at
July 1, 2013
2003 Assessment
Revenue Bonds
AD 98-1 Limited Obligation
Refunding Bonds
CFD 2005-1 Special Tax
Bonds Series 2006A
AD 2004-2 Limited Obligation
Improvement Bonds
2008 Special Tax
Refunding Bonds
$
$
2,460,000
Payments and
Reductions
Additions
$
-
$
(215,000)
Balance at
June 30, 2014
$
2,245,000
Due Within
One Year
$
230,000
475,000
-
(100,000)
375,000
70,000
62,145,000
-
(7,500,000)
54,645,000
1,285,000
27,260,000
-
(2,870,000)
24,390,000
615,000
5,695,000
98,035,000
-
$
$
(965,000)
(11,650,000)
$
4,730,000
86,385,000
$
1,000,000
3,200,000
The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special
Improvement Acts and the 1982 Mello-Roos Community Facilities Act (1982 Bonds). The City has
no liability to 1911 Act bondholders until assessments have been collected from the property
owner. Such liability is then recorded in the Agency Funds. Therefore, the 1911 Bonds are not
recorded as liabilities in the accompanying financial statements.
The City also has no liability to the 1915 Act bondholders or the bondholders of bonds issued
under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the tax
rolls. However, the City may take certain actions to assume secondary liability for all or part of
1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are consummated.
Special assessment bonds payable, as described below, and are not recorded as long-term
liabilities, as these obligations do not constitute a debt or obligation of the City.
2003 Assessment Revenue Bonds
In June 2003, the Palm Desert Financing Authority issued $4,423,000 in 2003 Assessment
Revenue Bonds. The proceeds were used to purchase three series of limited obligation
improvement bonds issued by the City in connection with the financing and refinancing of certain
improvements of benefit to property within the City’s Assessment District No. 94-2 (Sunterrace),
Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Undergrounding Assessment
District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide
funds for public improvements in the respective assessment districts.
- 86 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
14. SPECIAL ASSESSMENT DEBT (CONTINUED):
2003 Assessment Revenue Bonds (Continued)
Debt service requirements to maturity are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
Principal
$
230,000
155,000
160,000
170,000
175,000
680,000
675,000
$ 2,245,000
Interest
$
110,604
101,286
93,489
85,154
76,356
260,638
95,003
$
822,530
$
$
Total
340,604
256,286
253,489
255,154
251,356
940,638
770,003
3,067,530
As of June 30, 2014, the principal amounts to be repaid by each assessment district to pay off the
loans from the Financing Authority are as follows:
Assessment District 94-2
$
$
- 87 -
80,000
585,000
1,590,000
2,255,000
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Assessment District 98-1 Limited Obligation Refunding Improvement Bonds
The bonds were issued in an original amount of $2,955,000 in February 2004, to redeem and
defease the outstanding limited obligation improvement bonds of Assessment District No. 98-1,
which were issued in 1998. The bonds are secured by unpaid assessments on parcels within the
District.
Under the 1915 Act, annual assessments on the unpaid assessments sufficient to meet the
scheduled debt service requirements are to be included on the regular county tax bills for the
assessed parcels for which there are unpaid assessments. Interest rates vary from 1.5% to 5.1%
with interest payable semi-annually on March 2 and September 2, with principal maturing annually
on September 2.
Year Ending
June 30,
2015
2016
2017
2018
2019
Principal
$
70,000
70,000
75,000
80,000
80,000
$
375,000
Interest
$
16,680
13,399
9,908
6,080
2,040
$
48,107
$
$
Total
86,680
83,399
84,908
86,080
82,040
423,107
Community Facilities District No. 2005-1
The bonds were issued in an original amount of $50,000,000 in May 2006, to construct and acquire
certain public facilities of benefit to the District, provide for the establishment of a reserve account,
provide capitalized interest, and pay the costs of issuance of the bonds. The bonds are secured by
and payable from a pledge of net taxes derived from special taxes to be levied by the District on
real properties within the boundaries of the District from the net proceeds of any foreclosure
actions brought following delinquency in the payment of the special taxes, and from amounts held
in certain funds under the indenture. Interest rates vary from 4.0% to 5.5% with interest payable
semi-annually on March 1 and September 1, with principal maturing annually on September 1.
- 88 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Community Facilities District No. 2005-1 (Continued)
In May 2007, the 2007 Bonds were issued in the amount of $17,915,000 pursuant to the Bond
Indenture in May 2006, as supplemented by a First supplemental Indenture in May 2007, to
provide construct and acquire certain public facilities of benefit to the District, provide capitalized
interest, and pay the costs of issuance of the 2007 Bonds. The bonds are secured by and payable,
on parity with the bonds issued in May 2006 for $50,000,000, from a pledge of net taxes derived
from special taxes to be levied by the District on real properties within the boundaries of the
District from the net proceeds of any foreclosure actions brought following delinquency in the
payment of the special taxes, and from amounts held in certain funds under the indenture. Interest
rates vary from 3.875% to 5.20% with interest payable semi-annually on March 1 and September
1, with principal maturing annually on September 1.
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2038
Principal
$ 1,285,000
1,345,000
1,410,000
1,480,000
1,550,000
8,975,000
11,550,000
14,995,000
12,055,000
$ 54,645,000
- 89 -
Interest
$ 2,823,985
2,762,784
2,697,633
2,627,662
2,553,186
11,501,098
8,861,530
5,351,195
1,104,682
$ 40,283,755
Total
$ 4,108,985
4,107,784
4,107,633
4,107,662
4,103,186
20,476,098
20,411,530
20,346,195
13,159,682
$ 94,928,755
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds,
Series 2007
In March 2007, the City of Palm Desert issued $29,430,000 Limited Obligation Improvement
Bonds. The proceeds of the Bonds will be used to finance certain infrastructure improvements
within the City’s Section 29 Assessment District (No. 2004-02). The debt service on the bonds is
to be paid by assessments secured on the property tax rolls of those properties benefiting from the
improvements. The bonds consist of Serial Bonds in the amount of $6,870,000 with interest
ranging from 4.00% to 4.70% payable semiannually on March 2 and September 2. Bond maturities
begin September 2, 2009, and continue annually through 2019. Term bonds in the amount of
$2,525,000 carry an interest rate of 4.75% and mature September 2, 2022. Term bonds in the
amount of $5,110,000 carry an interest rate of 5.05% and mature September 2, 2027. Term bonds
in the amount of $14,925,000 carry an interest rate of 5.10% and mature September 2, 2037.
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2038
Principal
615,000
590,000
610,000
640,000
670,000
3,845,000
4,890,000
6,265,000
6,265,000
$ 24,390,000
$
- 90 -
Interest
$ 1,198,563
1,172,360
1,145,655
1,117,210
1,086,913
4,917,250
3,838,921
2,428,236
659,047
$ 17,564,155
Total
1,813,563
1,762,360
1,755,655
1,757,210
1,756,913
8,762,250
8,728,921
8,693,236
6,924,047
$ 41,954,155
$
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
2008 Special Tax Refunding Bonds
In December 2007, the City of Palm Desert Communities Facilities District No. 91-1 (Indian Ridge
Public Improvements) issued $10,935,000 of Special Tax Refunding Bonds, Series 2008 to refund
and defease all the outstanding $16,260,000 principal amount of the Palm Desert Financing
Authority 1997 Revenue Bonds. These bonds were issued pursuant to the provisions of the
Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2,
Title 5, of the Government Code of the State of California.
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2021
Principal
$ 1,000,000
1,030,000
1,070,000
1,105,000
170,000
355,000
$ 4,730,000
Interest
$
154,008
118,983
81,698
41,719
17,600
14,300
$
428,308
$
$
Total
1,154,008
1,148,983
1,151,698
1,146,719
187,600
369,300
5,158,308
Bond Reserve Requirements
At June 30, 2014, the fund balance reserve requirements and actual reserve balances were as
follows:
Requirement
$
37,500
224,500
4,108,985
1,813,563
921,126
2003 Financing Authority Revenue Bonds
CFD 2005-1 Special Tax Bonds
Assessment District 29
2008 Special Tax Refunding Bonds
- 91 -
$
Actual
88,299
313,626
4,157,185
1,944,103
1,001,822
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
15. CONDUIT DEBT OBLIGATIONS:
2003 Series A - $22,310,000 Lease Revenue Bonds
In December 2003, the Palm Desert Financing Authority (Authority) issued $22,310,000 in Lease
Revenue Bonds. The proceeds of the Bonds were used to: a) finance the construction of a County
animal shelter and related facilities located in the unincorporated area of Thousand Palms,
California; b) finance construction of certain County medical clinic facilities located in Mecca,
California; c) refund the Palm Desert Financing Authority Lease Revenue Bonds Series 1996;
d) acquire a debt service reserve insurance policy; e) fund capitalized interest on the bonds; and
f) pay costs of issuance of the bonds. The Authority will lease sites relating to each project from
the County of Riverside (County) pursuant to a Site Lease dated as of December 1, 2003, and will
lease back to the County the Sites and the Facilities pursuant to a Facilities Lease dated
December 1, 2003. Under the Lease, the County will pay to the Trustee Base Rental Payments in
the amount equal to the scheduled debt service of the Bonds. The Authority will assign its right to
receive the Base Rental Payments to the Trustee for the benefit of the owners of the bonds. The
debt service on the bonds is to be paid solely from lease payments made by the County. The
Authority has no obligation to make the debt service payments in the event that the County is not
able to make the required base rental payments. As of June 30, 2014, the outstanding amount was
$16,595,000.
2008 Series A - $72,445,000 Lease Revenue Bonds
In November 2008, the Palm Desert Financing Authority (Authority) issued $72,445,000 in Lease
Revenue Bonds. The proceeds of the Bonds were used to: a) finance the construction, installation,
acquisition, development and rehabilitation of certain public capital improvements within the
County, including the Palm Desert Sheriff’s Station Facilities (as described herein), community
centers, a multi-service center, park improvements and other various infrastructure improvements;
b) fund capitalized interest on the 2008 Series A Bonds related to the Palm Desert Sheriff Station
Facilities through August 31, 2010 and with respect to the Multi-Service Center Facilities (as
described herein) through December 31, 2009; c) fund a deposit into the Reserve Account as
additional security for the 2008 Series A Bonds; and d) pay certain costs associated with the
issuance and delivery of the 2008 Series A Bonds. Under the Lease, the County will pay to the
Trustee Base Rental Payments in the amount equal to the scheduled debt service of the Bonds. The
Authority will assign its right to receive the Base Rental Payments to the Trustee for the benefit of
the owners of the bonds. The debt service on the bonds is to be paid solely from lease payments
made by the County. The Authority has no obligation to make the debt service payments in the
event that the County is not able to make the required base rental payments. As of June 30, 2014,
the outstanding amount was $51,585,000.
- 92 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
16 OTHER DISCLOSURES:
The Palm Desert Recreational Facilities Corporation has a deficit of $1,515,951, which will be
eliminated by increasing revenues through banquet reservations and outings directly related to the
expansion of the outside dining terrace and the kitchen.
The Fiduciary Private-Purpose Trust Fund has a deficit of $179,942,806, which will be funded
through future property taxes collected by the County under the direction of the State. The State of
California is the responsible body for the elimination of this deficit.
17. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS:
Construction Commitments
Primary Government
Current
Year
Spent
Project
Parks and recreation
$
216,013
Low income housing
7,138
Street resurfacing
1,460,629
Street improvements
85,259
Freeway on-ramp improvements
2,411,392
Desert Willow capital improvements
48,219
Public safety building improvements
10,540
Recycle projects
11,830
Community development planning
52,128
CDBG
149,400
CV Link Public Outreach
133,576
96,918
Governmental Software Implementation
Tourism/E-Gov Websidte Design
4,683,042
Miscellaneous non construction
406
$ 4,683,448
- 93 -
Spent
to Date
$
107,661
52,415
1,656,969
17,010
173,480
2,007,535
$ 2,007,535
Remaining
Commitment
$
193,439
69,362
2,019,401
172,653
6,192,816
54,281
4,960
68,170
822,564
67,323
157,425
89,127
50,000
9,961,521
38,730
$ 10,000,251
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
17. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS (CONTINUED):
Construction Commitments (Continued)
Fiduciary Funds
Project
Low income housing
Street improvements
Residential street construction
Miscellaneous non construction
Current
Year
Spent
$
178,220
178,220
225,059
$
403,279
Spent
to Date
$
275,872
14,829
290,701
499,867
$
790,568
Remaining
Commitment
$
103,709
172,072
667,246
943,027
105,285
$ 1,048,312
18. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT
AGENCIES:
The 2011 Dissolution Act required each California redevelopment agency to suspend nearly all
activities except to implement existing contracts, meet already-incurred obligations, preserve its
assets and prepare for impending dissolution.
In 2012 AB 1484 made technical and substantive amendments to the Dissolution Act based on
experience to-date at the state and local level in implementing the Dissolution Act.
Under the Dissolution Act, each California redevelopment agency (each a “Dissolved RDA”) was
dissolved as of February 1, 2012, and the sponsoring community that formed the Dissolved RDA,
together with other designated entities, have initiated the process under the Dissolution Act to
unwind the affairs of the Dissolved RDA. A successor agency was created for each Dissolved RDA
which is the sponsoring community of the Dissolved RDA unless it elected not to serve as the
successor agency. On August 25, 2011, the City elected to serve as the Successor Agency to the
Palm Desert Redevelopment Agency (the Successor Agency).
On February 9, 2012, the City Council of the City, acting as the governing body of the Successor
Agency, established rules and regulations for the operations of the Successor Agency to assume
these successor functions pursuant to Resolution No. SA-RDA001. Although the Board of
Directors of the Successor Agency is comprised of the same individuals as the City Council of the
City, subdivision (g) of Section 34173 of the Dissolution Act, added by AB 1484, expressly
affirms that the Successor Agency is a separate public entity from the City, that the two entities
shall not merge, and that the liabilities of the former redevelopment agency will not be transferred
to the City nor will the assets of the former redevelopment agency become assets of the City.
- 94 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
AGENCIES (CONTINUED):
The Dissolution Act requires the establishment of an oversight board for each successor agency.
Under the Dissolution Act, certain successor agency actions must first be approved by the
oversight board, and the oversight board is also required to direct the successor agency to take
certain actions in connection with the wind down of the affairs of the Dissolved RDA. The role of
each successor agency and oversight boards is to administer the wind down of each Dissolved
RDA which includes making payments due on enforceable obligations, disposing of the assets
(other than housing assets) and remitting the unencumbered balances of the Dissolved RDAs to the
County Auditor-Controller for distribution to the affected taxing entities.
The Dissolution Act allowed the sponsoring community that formed the Dissolved RDA to elect to
assume the housing functions and take over the housing assets of the Dissolved RDA. If the
sponsoring community does not elect to become the Successor Housing Agency and assume the
Dissolved RDA’s housing functions, such housing functions and all related housing assets will be
transferred to the local housing authority in the jurisdiction. AB 1484 modified and provided some
clarifications on the treatment of housing assets under the Dissolution Act. The City of Palm
Desert elected on February 9, 2012 to transfer the responsibility to serve as the Housing Successor
Agency to the Palm Desert Housing Authority.
After the date of dissolution, the housing assets, obligations, and activities of the Dissolved RDA
were transferred and are reported in the Housing Authority Special Revenue Fund in fiscal
year 2011-2012. In fiscal year 2012-2013, the assets and obligations of the former low and
moderate income housing fund were transferred to the Low and Moderate Income Housing Asset
Special Revenue Fund. The transfer was reported as an extraordinary loss in the financial
statements of the City. All other assets, obligations, and activities of the Dissolved RDA have been
transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial
statements of the City.
The Dissolution Act and AB 1484 also establish roles for the County Auditor-Controller (the
“CAC”), the California Department of Finance (the “DOF”) and the California State Controller’s
office in the dissolution process and the satisfaction of enforceable obligations of the Dissolved
RDAs.
The County Auditor-Controller is charged with establishing a Redevelopment Property Tax Trust
Fund (the “RPTTF”) for each Successor Agency and depositing into the RPTTF for each sixmonth period the amount of property taxes that would have been redevelopment property tax
increment had the Dissolved RDA not been dissolved. The deposit in the RPTTF fund is to be used
to pay to the Successor Agency the amounts due on the Successor Agency’s enforceable
obligations received in January and June.
- 95 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
The Successor Agency is required to prepare a recognized obligation payment schedule (the
“ROPS”) approved by the oversight board setting forth the amounts due for each enforceable
obligation during each six month period. The ROPS is submitted to the CAC & DOF for
consideration. The CAC will make payments to the Successor Agency from the RPTTF fund based
on the ROPS amount approved by the DOF. The ROPS is prepared in advance for the enforceable
obligations due over the next six months.
As part of the dissolution process AB1484 required the Successor Agency to have due diligence
reviews of both the low and moderate income housing funds and all other funds to be completed by
October 15, 2012 and January 15, 2013 to compute the funds (cash) which were not needed by the
Successor Agency to be retained to pay for existing enforceable obligations. These funds were to
be remitted to the CAC after the DOF completed its review of the due diligence reviews. The
Successor Agency paid a total amount of $40,988,399 to the County of Riverside based on the final
determination by the Department of Finance.
The DOF issued a Finding of Completion on May 15, 2013 in which DOF concurred that the
Successor Agency has made full payments of any payments required as a result of the due
diligence reviews. The Finding of Completion allows the placement of loan agreements between
the former redevelopment agency and the City on the ROPS, as an enforceable obligation,
provided the oversight board makes a finding that the loan was for legitimate redevelopment
purposes. Loan repayments could begin in the 2014-15 fiscal year as governed by the criteria in the
health and code safety section. When the repayments begin, 20% of the repayments of the loan
agreement amounts are to be allocated to the Low Moderate Housing Asset Special Revenue Fund.
At June 30, 2013, the long-term advances totaled $22,655,000. In the financial statements
$9,236,000 is reported in the General Fund and $13,419,000 is reported in Other Governmental
Funds. An offset of 20% has been reported as due to other funds in the respective funds totaling
$4,531,000.
The State Controller of the State of California has been directed to review the propriety of any
transfers of assets between Dissolved RDA and other public bodies that occurred after
January 1, 2011. If the public body that received such transfers is not contractually committed to a
third party for the expenditure or encumbrance of those assets, the State Controller is required to
order the available assets to be transferred to the public body designated as the successor agency.
The State Controller’s completed its review on March 14, 2013 and did not identify any
unallowable transfers of assets that occurred during the audit between the former RDA, the City
and or other public agencies.
- 96 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
The Successor Agency’s use and disposition of all properties held (Long Range Property
Management Plan), (the LRPMP), was approved by the California Department of Finance on
June 2, 2014. The LRPMP allowed the Successor Agency to transfer property used for
government purposes with a cost basis of $6,390,263 to the City.
Management believes, in consultation with legal counsel, that the obligations of the Dissolved
RDA due to the City, with respect to loans, are valid enforceable obligations payable by the
Successor Agency under the requirements of the Dissolution Act and AB 1484 upon approval by
the oversight board and Department of Finance. It is reasonably possible that a legal determination
may be made at a later date by an appropriate judicial authority that would resolve this issue
unfavorably to the City.
19. SUCCESSOR AGENCY DISCLOSURES:
The assets and liabilities of the dissolved Redevelopment Agency were transferred to the Successor
Agency to the Palm Desert Redevelopment Agency on February 1, 2012 as a result of the
dissolution of the former Redevelopment Agency. The Successor Agency is acting in a fiduciary
capacity for the assets and liabilities. Disclosures related to these transactions are as follows:
Notes Receivable
On April 21, 2003, the Agency entered into a loan agreement with The Regents of the University
of California, on behalf of its Riverside Campus, to loan various amounts over a period of time, not
to exceed an aggregate amount of $2,000,000. Proceeds of the loan are to be used for capital
improvements at the University’s Riverside Campus. The outstanding principal balance and
interest on the note is due in five annual payments beginning on July 15, 2009. This note was paid
off during the fiscal year.
- 97 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
19. SUCCESSOR AGENCY DISCLOSURES (CONTINUED):
Advances To/From the City of Palm Desert
The composition of advances as of June 30, 2014, was as follows:
Advances From
General Fund
Advances To
Successor Agency
Successor Agency
Amount
$
9,236,000
13,419,000
22,655,000
Subtotal
Low Moderate Housing Asset
Successor Agency
17,821,288
Total
$
40,476,288
The advances from the General Fund, Capital Projects Reserve Fund and Other Governmental
Funds were made to the Successor Agency, (former Redevelopment Agency) for capital
improvements. The advances from the Housing Authority Special Revenue Fund to the Successor
Agency (former Redevelopment Agency) were made to cover the SERAF payment.
AB 1484 specifies the actions to be taken and the method of repayment for advances by the
Successor Agency (former Redevelopment Agency) to the various funds of the City. Upon
application and approval by the successor agency and approval by the oversight board, loan
agreements (advances) entered into by former redevelopment agency and the city shall be deemed
to be enforceable obligations provided that the oversight board makes a finding that the advances
were for legitimate redevelopment purposes. The accumulated interest on the remaining amount of
advances will be recalculated from origination at the interest rate earned by funds deposited into
the Local Agency Investment Fund.
The advances are to be repaid with a defined schedule over a reasonable term of years at an interest
rate not to exceed the interest rate earned by the funds deposited into the Local Agency Investment
Fund. The annual advances repayments are subject to certain limitations. Advance repayments
shall not be prior to the 2014-2015 fiscal year, are subject to a formula distribution, and have a
lower priority for repayment as described in AB 1484 (Health and Safety Code Section
34191.4(2)(A).
- 98 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Advances To/From the City of Palm Desert (Continued)
The advances related to the borrowing for the SERAF payment have a priority over repayment of
the other advances. 20% of the repayment of the other advances not related to the SERAF advances
shall be deducted and transferred to the Low and Moderate Income Housing Asset Fund (Housing
Authority). Management believes, in consultation with legal counsel, that the obligations of the
Dissolved RDA due to the City are valid enforceable obligations payable by the Successor Agency
under the requirements of the Dissolution Act and AB 1484 and has not recorded an allowance for
uncollectible advances. The City’s position on this issue is not a position of settled law and there is
considerable legal uncertainty regarding this issue. It is reasonably possible that a legal
determination may be made at a later date by an appropriate judicial authority that would not be in
favor of the City.
Capital Assets
Balance at
July 1, 2013
Capital assets, not
being depreciated:
Land
Total capital assets, not
being depreciated
$
depreciated:
Buildings
Improvements other
than buildings
being depreciated
$
277,772
$
(705,793)
-
$
277,772
2,525,364
(1,575,588)
-
-
949,776
-
-
5,048,117
-
-
5,997,893
(1,575,588)
(705,793)
51,390,191
492,343
(5,049,138)
51,882,534
(360,924)
234,463
(63,134)
-
(189,595)
(3,568,013)
-
(252,406)
-
(3,820,419)
(3,928,937)
234,463
(315,540)
-
(4,010,014)
(315,540)
-
1,987,879
3,644,544
$
$
Balance at
June 30, 2014
Deletions
57,359,693
7,573,481
depreciated, net
Additions
(5,049,138)
-
5,048,117
Less accumulated
depreciation for:
Buildings
Improvements other
than buildings
Total accumulated
depreciation
Capital assets, net Governmental Activities
57,145,122
214,571
Transfers
61,004,237
(1,341,125)
$
(6,390,263)
- 99 -
$
(37,768)
$
(705,793)
$
53,870,413
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Tax Allocation Bonds
A summary of changes in tax allocation bonds at June 30, 2014, was as follows:
Balance
July 1, 2013
Project Area No. 1
2002A TARRBs, $22,070,000
2003 TARBs, $19,000,000
2004A TARRBs, $24,945,000
2006 A & B TARBs, $62,320,000
2007A TARRBs, $32,600,000
Project Area No. 2
2002A TARRBs, $17,310,000
2003 TARBs, $15,745,000
2006 A-D TARBs, $67,618,213
Project Area No. 3
2003 TARBs, $4,745,000
2006 A-C TABs, $15,059,526
Project Area No. 4
1998 TARBs, $11,020,000
2001 TARBs, $15,695,000
2006A TARBs, $19,243,089
Combined Low and
Moderate Housing
2002 TARBs, $12,100,000
2007 TARBs, $86,155,000
Subtotal
Add: Unamortized
bond premium
Total
$ 22,070,000
19,000,000
16,495,000
46,505,000
16,970,000
Additions/
Accretion
$
-
Repayments/
Reductions
Balance
June 30, 2014
Due Within
One Year
$
(6,340,000)
(1,210,000)
(2,745,000)
(3,100,000)
$ 22,070,000
12,660,000
15,285,000
43,760,000
13,870,000
$
1,235,000
2,905,000
3,230,000
10,385,000
15,745,000
57,221,308
972,556
(835,000)
(2,125,000)
9,550,000
15,745,000
56,068,864
870,000
2,275,000
3,690,000
15,742,288
261,512
(120,000)
(285,000)
3,570,000
15,718,800
120,000
330,000
7,950,000
12,905,000
18,977,673
346,980
(145,000)
(365,000)
(825,000)
7,805,000
12,540,000
18,499,653
360,000
375,000
760,000
9,450,000
66,680,000
339,786,269
1,581,048
(320,000)
(5,235,000)
(23,650,000)
9,130,000
61,445,000
317,717,317
330,000
5,505,000
18,295,000
5,472,428
-
(475,703)
4,996,725
-
$ 345,258,697
$ 1,581,048
$ (24,125,703)
$ 322,714,042
$18,295,000
Tax Allocation bonds used for capital improvements are special obligations of the Agency and the
Financing Authority (a component unit of the Agency) and are secured by an irrevocable pledge of
tax revenues and other funds as provided under the Bond Resolution. The bonds and any interest
thereon are not a debt of the City, the State of California or any of its political subdivisions, and
neither the City, the State of California nor any of its political subdivisions is liable on the bonds,
nor in any event shall the bonds and interest thereon be payable out of any funds or properties other
than those provided under the Bond Resolution. The Agency purchased insurance from Ambac
Assurance Corporation (Ambac) and MBIA Insurance Corporation (MBIA) for the purpose of
enhancing the creditworthiness of the bonds.
- 100 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Tax Allocation Bonds (Continued)
There are unspent bond proceeds remaining with respect to each of the following series of tax
allocation bonds:








Project Area No. 1 Series 2006 A
Project Area No. 1 Series 2007
Project Area No. 2 Series 2006 A, B & D
Project Area No. 3 Series 2006 A B & C
Project Area No. 4 Series 2006 A & B
Housing Set Aside Series 2007
California Health and Safety Code Section 34177(i) requires successor agencies to use bond
proceeds for the purposes for which bonds were sold unless the purposes can no longer be
achieved, in which case the proceeds may be used to defease the bonds. Although the powers of
successor agencies are severely restricted under the Dissolution Act in terms of ability to enter into
new contracts, California Health and Safety Code Section 34191.4, added by AB 1484, appears to
provide additional guidance and authority. Pursuant to Section 34191.4, if the Successor Agency
receives a finding of completion from the California Department of Finance, which is predicated
upon completion of a number of required payments and transfer in furtherance of the wind down
process under the Dissolution Act, notwithstanding any other provision of law, bond proceeds
derived from bonds issued on or before December 31, 2010 that are in excess of the amounts
needed to satisfy approved enforceable obligations must thereafter be expended in a manner
consistent with the original bond covenants and may include the expenditure of funds to complete
the projects that are the subject of the enforceable obligations or the creation of reserves therefore.
Additionally, there is a statement in the Dissolution Act that expenditures made pursuant to this
provision shall constitute the creation of excess bond proceeds obligations to be paid from the
excess proceeds. As this is a new provision of law, there is considerable legal uncertainty
regarding the actual application of this provision. In any event, if remaining bond proceeds cannot
be spent in a manner consistent with the bond covenants, Section 34191.4 additionally provides
that the remaining bond proceeds must be used to defease the bonds or to purchase those same
outstanding bonds on the open market for cancellation. The Successor Agency received a finding
of completion in a letter dated May 15, 2013 from the California Department of Finance which
allowed the Successor Agency to utilize proceeds from bonds issued prior to January 1, 2011 in a
manner consistent with the original bond covenants.
- 101 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
On November 8, 2010, Ambac Financial Group, Inc. (“Ambac Group”), whose principal operating
subsidiary, Ambac Assurance Corporation, is a guarantor of public finance and structured finance
obligations, announced that it filed for a voluntary petition for relief under Chapter 11 of the United
States Bankruptcy Code (“Bankruptcy Code”) in the United States Bankruptcy Court for the Southern
District of New York (“Bankruptcy Court”). Ambac Group will continue to operate in the ordinary
course of business as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in
accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy
Court. On May 1, 2013, Ambac Group completed its financial restructuring and emerged from
Chapter 11 bankruptcy.
On February 18, 2009, MBIA announced the restructuring of its financial guaranty insurance
operations into two separately capitalized sister companies, with one entity (MBIA Illinois) assuming
the risk associated with its US municipal exposures, and the other (MBIA Corp) insuring the remainder
of the portfolio. Subsequent to the restructuring of MBIA, Moody’s Investor Service (Moody’s) assign
ratings to the reinsured municipal securities based on the higher of (a) the insurance financial strength
rating of MBIA Illinois, to ‘Baa1’; or (b) the published underlying rating. Subsequent to the
restructuring of MBIA, S&P assigned its insurance financial strength rating of MBIA Illinois to ‘AAminus’. Effective March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee
Corporation (“NPFGC”).
National Public Finance Guarantee Corporation (formerly MBIA Illinois), an insurance subsidiary of
MBIA, which assumes the risk associated with U.S. municipal exposures, financial strength credit
ratings was raised to A3 on May 31, 2014 by Moody’s.
The Redevelopment Plans for the Dissolved RDA’s project areas set forth certain limitations on the
maximum aggregate amount of tax increment that the Dissolved RDA could have received with
respect to each project area, or if applicable, each component area of the project area (each, a “TI
Cap”). Upon reaching the TI Cap, the Dissolved RDA would not be able to receive any additional
tax increment derived from the project area (or component area, as the case may be) to pay
outstanding debt. Based on projections done before the enactment of the Dissolution Act, the
Dissolved RDA expected that the TI Cap for the Amended Territory of Project Area No. 1 would
be reached around fiscal year 2021-22, before the final maturity date of the bonds issued for
Project Area No. 1. The Dissolved RDA planned and expected to use excess tax increment from
Project Area No. 1 to call bonds before reaching the TI Cap to avoid any bond defaults. After the
enactment of the Dissolution Act, it is uncertain whether the TI Cap is still in effect and, if so, how
to properly calculate whether the TI Cap has been reached. (For example, it is unclear if the
calculation should be based on the total deposit into the Redevelopment Property Tax Trust Fund
(“RPTTF”) or on the actual dollar received by the Successor Agency for enforceable obligations).
- 102 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
In light of the uncertainties regarding the TI Cap, the Successor Agency requested to retain moneys
on hand to enable it to pay or redeem Project Area No. 1 bonds, as part of the Other Funds and
Account Due Diligence Review (the “DDR”). The DDR was mandated by AB 1484 to determine
the amount of unencumbered funds that the Successor Agency had on hand to remit to the County
Auditor-Controller for distribution to taxing entities. In the DOF’s May 5, 2013 determination
letter regarding the DDR, the DOF denied the Successor Agency’s request to retain funds in light
of the TI Cap, stating that it is the DOF’s “expectation that ABx1 26/AB 1484 allow enforceable
obligations to be listed on the ROPS and payable out of available RPTTF until such obligation has
been satistied”.
Standard & Poor’s Ratings Services (“Standard & Poor’s”) has lowered its underlying rating from “A”
to “A-“ on the following issues of bonds issued by the Authority: (i) the Authority’s Tax Allocation
Revenue Bonds (Project Area No. 1, as Amended), 2006 Series A (the “2006A Authority Bonds”),
(ii) the Authority’s Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as Amended),
2006 Series B (Taxable) (the “2006B Authority Bonds”, and together with the 2006A Authority Bonds,
the “2006 Authority Bonds”), and (iii) the Authority’s Tax Allocation Refunding Revenue Bonds
(Project Area No. 1, as Amended), 2007 Series A (the “2007 Authority Bonds”).
2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
On March 13, 2002, the Palm Desert Financing Authority issued $22,070,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2002 Series A. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency. A portion of the proceeds of the
loan was used to prepay the prior loan, which affected the current refunding of a like portion of the
prior bonds. The remainder was used to fund various redevelopment capital projects of the Agency
in Project Area No. 1. The bonds consist of $10,905,000 term bonds at 5.00% due April 1, 2025,
and $11,165,000 term bonds at 5.10% due April 1, 2030. Interest is payable semi-annually on
April 1 and October 1. Mandatory sinking fund redemptions begin April 1, 2024.
The future debt service requirements on the 2002 Series A Tax Allocation Refunding Revenue
Bonds (Project Area No. 1, as amended) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
Principal
$
4,780,000
14,830,000
2,460,000
$ 22,070,000
- 103 -
Interest
1,114,665
1,114,665
1,114,665
1,114,665
1,114,665
5,573,325
2,515,060
125,460
$ 13,787,170
$
$
$
Total
1,114,665
1,114,665
1,114,665
1,114,665
1,114,665
10,353,325
17,345,060
2,585,460
35,857,170
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
2003 Series Tax Allocation Revenue Bonds (Project Area No. 1)
On August 5, 2003, the Financing Authority issued $19,000,000 Tax Allocation Revenue Bonds
(Project Area No. 1, as amended) 2003 Series. The proceeds of the bonds were disbursed to make a
loan to the Redevelopment Agency. The Agency used the proceeds of the loan to fund various
redevelopment capital projects of the Agency and to finance costs of issuance of the bonds. The
bonds bear interest at 5.0%. They consist of $7,050,000 serial bonds with principal payments due
in 2026 and 2027, and $11,950,000 term bonds due in 2030. Interest will be payable on April 1 and
October 1 of each year beginning April 1, 2004. Principal payments will be on April 1 of the years
stated above.
The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project
Area No. 1) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
Principal
$
9,875,000
2,785,000
$ 12,660,000
- 104 -
$
$
Interest
633,000
633,000
633,000
633,000
633,000
3,165,000
2,454,000
139,250
8,923,250
$
$
Total
633,000
633,000
633,000
633,000
633,000
3,165,000
12,329,000
2,924,250
21,583,250
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
2004 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended)
On June 24, 2004, the Palm Desert Financing Authority issued $24,945,000 of Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2004 Series A. The proceeds from the
bonds were loaned to the Palm Desert Redevelopment Agency to refinance a portion of the
Agency’s obligations from 1995, and to fund various redevelopment capital projects within or of
benefit to the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable
semi-annually on April 1 and October 1. Principal payments will be made annually beginning
April 1, 2005.
The future debt service requirements on the 2004 Series A Tax Allocation Revenue Bonds (Project
Area No. 1, as amended) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025
Principal
$ 1,235,000
1,280,000
1,335,000
1,460,000
1,420,000
7,295,000
1,260,000
$ 15,285,000
- 105 -
$
$
Interest
728,588
676,100
618,500
558,425
490,900
1,400,100
63,000
4,535,613
$
$
Total
1,963,588
1,956,100
1,953,500
2,018,425
1,910,900
8,695,100
1,323,000
19,820,613
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Tax Allocation Revenue Bonds (Project Area No. 1, as Amended) 2006 Series A and Series B
(Taxable)
On July 6, 2006, the Palm Desert Financing Authority issued $37,780,000 of Tax Allocation
Revenue Bonds (Project Area No. 1, as Amended) 2006 Series A and $24,540,000 of Tax
Allocation Refunding Revenue Bonds (Project Area No. 1, as Amended) 2006 Series B (Taxable).
The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment
Agency. The proceeds of the Series A loan will be used to assist the Agency to fund various
redevelopment capital projects within or of benefit to Project Area No. 1, as Amended, pay costs of
issuance and pay the premium on a Reserve Fund surety bond. The proceeds of the Series B loan
will be used to refinance the Agency’s obligations incurred under a loan agreement entered into in
1997, pay costs of issuance and pay the premium on a Reserve Fund surety bond. The Series A
bonds consist of $26,415,000 Serial Bonds with interest rates ranging from 4.70% to 5.25%
payable semiannually on October 1 and April 1. Bond maturities begin April 1, 2017, and continue
annually through 2030. Term bonds in the amount of $11,365,000 carry an interest rate of 5.00%
and mature April 1, 2022. The Series B bonds consist of $13,220,000 Serial Bonds with interest
rates ranging from 5.56% to 5.77% payable semiannually on October 1 and April 1. Bond
maturities began April 1, 2007, and continue annually through 2012. Term bonds in the amount of
$11,320,000 carry an interest rate of 5.82% and mature April 1, 2016.
The future debt service requirements on the 2006 Series A and Series B Tax Allocation Revenue
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030
Principal
$ 2,905,000
3,075,000
1,000,000
1,005,000
5,065,000
25,300,000
5,120,000
290,000
$ 43,760,000
- 106 -
Interest
$ 2,262,482
2,093,410
1,914,445
1,864,445
1,811,683
4,821,000
601,818
13,775
$ 15,383,058
$
$
Total
5,167,482
5,168,410
2,914,445
2,869,445
6,876,683
30,121,000
5,721,818
303,775
59,143,058
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Tax Allocation Refunding Revenue Bonds (Project Area No. 1, as amended) 2007 Series A
On January 9, 2007, the Palm Desert Financing Authority issued $32,600,000 Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, as amended) 2007 Series A. The Palm Desert
Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency. The
proceeds of the 2007 Loan will be used to refinance a portion of the outstanding obligations of the
Redevelopment Agency, fund various redevelopment capital projects within the Palm Desert
Redevelopment Agency Project Area No. 1, as amended, and pay the costs associated with the
issuance of the bonds. The Series A bonds consist of $32,600,000 Serial Bonds with interest rates
ranging from 3.50% to 5.00% payable semiannually on October 1 and April 1. Bond maturities
began April 1, 2008, and continue annually through 2018.
Year Ending
June 30,
2015
2016
2017
2018
Principal
$ 3,230,000
3,390,000
3,570,000
3,680,000
$ 13,870,000
- 107 -
Interest
$
686,000
532,000
362,500
184,000
$ 1,764,500
$
$
Total
3,916,000
3,922,000
3,932,500
3,864,000
15,634,500
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
2002 Series A Tax Allocation Refunding Revenue Bonds (Project Area No. 2)
Refunding Revenue Bonds (Project Area No. 2) 2002 Series A. The Palm Desert Financing
Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency to prepay
outstanding indebtedness and to fund various redevelopment capital projects within or of benefit to
the project area. Interest rates on the bonds vary from 3.0% to 5.0% per annum payable semiannually on February 1 and August 1.
Bonds (Project Area No. 2) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2023
Principal
870,000
910,000
955,000
995,000
1,050,000
4,770,000
$ 9,550,000
$
- 108 -
$
$
Interest
436,113
397,388
355,403
309,806
261,238
491,150
2,251,098
$
$
Total
1,306,113
1,307,388
1,310,403
1,304,806
1,311,238
5,261,150
11,801,098
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to fund various redevelopment capital
projects of the Agency in Project Area No. 2. Interest rates on the bonds vary from 4.5% to 5.0%
per annum payable semi-annually on February 1 and August 1, with principal maturing as follows:
$
875,000
910,000
2,485,000
11,475,000
Serial Bonds
Serial Bonds
Term Bonds
Term Bonds
August 1, 2023
August 1, 2024
August 1, 2026
August 1, 2033
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2029 - 2034
Principal
$
875,000
6,275,000
8,595,000
$ 15,745,000
- 109 -
Interest
769,006
769,006
769,006
769,006
769,006
3,825,344
2,981,347
1,117,625
$ 11,769,346
$
$
$
Total
769,006
769,006
769,006
769,006
769,006
4,700,344
9,256,347
9,712,625
27,514,346
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D
On July 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 2 $41,340,000
Tax Allocation Refunding Revenue Bonds 2006 Series A, $1,567,118 Tax Allocation Revenue
Capital Appreciation Bonds 2006 Series B, $7,775,000 Tax Allocation Revenue Bonds 2006
Series C and $16,936,095 Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006
Series D. The Palm Desert Financing Authority loaned the bond proceeds to the Palm Desert
Redevelopment Agency. The proceeds of the Series A, B and C Bonds will be used to make three
loans to refinance the Agency’s obligations incurred under a loan agreement entered into in 1995,
fund various redevelopment capital projects within or of benefit to its Project Area No. 2 Reserve
Fund surety and pay costs of issuance of the bonds. The Agency will use the proceeds of the
Series D Bonds to fund various redevelopment capital projects within or of benefit to the Project
Area, fund a debt service reserve fund and pay cost of issuance of the bonds.
The Series A bonds consist of $16,250,000 Serial Bonds with interest rates ranging from 4.00% to
5.00% payable semiannually on August 1 and February 1. Bond maturities begin August 1, 2007,
and continue annually through 2026. Term bonds in the amount of $8,225,000 carry an interest
rate of 4.90% and mature August 1, 2031. Term bonds in the amount of $16,865,000 carry an
interest rate of 5.125% and mature August 1, 2036. The Series B bonds consist of $1,567,118
Capital Appreciation Bonds with a reoffering yield ranging from 3.85% to 4.08%. Bond maturities
begin April 1, 2007, and continue annually through 2010. The Series C bonds were paid off during
the fiscal year. The Series D bonds consist of $16,936,095 Capital Appreciation Bonds with a
reoffering yield ranging from 4.65% to 6.10%. Bond maturities began August 1, 2007, and
continue annually through 2035. Each year the outstanding balance is increased for the accretion
of interest associated with the bonds. The accreted interest at June 30, 2014 is $6,336,203.
- 110 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Project Area No. 2 Tax Allocation Refunding Revenue Bonds 2006 Series A, Tax Allocation
Revenue Capital Appreciation Bonds 2006 Series B, Revenue Bonds 2006 Series C and
Subordinate Tax Allocation Revenue Capital Appreciation Bonds 2006 Series D (Continued)
The debt service requirements schedules on the 2006 Series A Tax Allocation Refunding Revenue
Bonds, Series B Tax Allocation Revenue Capital Appreciation Bonds, Series C Revenue Bonds
and Series D Subordinate Tax Allocation Revenue Capital Appreciation Bonds (Project Area
No. 2) do not agree to the liability for those bonds shown in the schedule of changes. These bond
issues include capital appreciation bonds, which are issued at a discount. The carrying amount of
these bonds accretes, or increases each year. The amount shown in the schedule of changes
include the accreted value to date. The future debt service requirements are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2037
Principal
1,759,238
1,108,312
1,208,650
1,299,414
1,362,179
8,275,330
10,334,204
10,745,785
13,639,549
$ 49,732,661
$
Interest
2,394,399
2,059,088
2,104,238
2,172,011
2,238,134
12,352,673
12,746,925
10,327,123
4,119,557
$ 50,514,148
$
Total
4,153,637
3,167,400
3,312,888
3,471,425
3,600,313
20,628,003
23,081,129
21,072,908
17,759,106
$ 100,246,809
$
On August 5, 2003, the Financing Authority issued $4,745,000 of Tax Allocation Revenue Bonds
(Project Area No. 3) 2003 Series. The proceeds of the bonds were disbursed to make a loan to the
Redevelopment Agency. The Agency will use the proceeds of the loan to fund various
redevelopment capital projects within or of benefit to the project area and to finance costs of
issuance of the bonds. The bonds bear interest at rates ranging from 3.000% to 5.125%. Principal
maturities for the serial bonds of $2,475,000 began April 1, 2004, and continue through
October 1, 2031. The term bonds in the amount of $2,270,000 are due in 2033.
- 111 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
2003 Series Tax Allocation Revenue Bonds (Project Area No. 3) (Continued)
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2033
Principal
$
120,000
125,000
130,000
140,000
145,000
820,000
1,050,000
1,040,000
$ 3,570,000
$
$
Interest
173,272
168,473
163,348
157,888
151,868
656,858
433,063
136,581
2,041,351
$
$
Total
293,272
293,473
293,348
297,888
296,868
1,476,858
1,483,063
1,176,581
5,611,351
Project Area No. 3 Tax Allocation Revenue Bonds 2006 Series A, Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital Appreciation
Bonds 2006 Series C
On July 25, 2006, the Palm Desert Financing Authority issued its Project Area No. 3 $11,915,000
Tax Allocation Revenue Bonds 2006 Series A, $383,660 Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and $2,760,866 Subordinate Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series C. The Palm Desert Financing Authority loaned the bond
proceeds to the Palm Desert Redevelopment Agency. The proceeds of the Series A and B Bonds
will be used to make two loans to fund various redevelopment capital projects within or of benefit
to its Project Area No. 3, purchase a Reserve Fund surety policy and pay the costs of issuance of
the bonds. The Agency will loan the proceeds of the Series C Bonds to fund various
redevelopment capital projects within or of benefit to the Project Area, fund a debt service reserve
fund and pay the costs of issuance of the bonds.
- 112 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Project Area No. 3 Tax Allocation Revenue Bonds 2006 Series A, Tax Allocation Revenue Capital
Appreciation Bonds 2006 Series B and Subordinate Tax Allocation Revenue Capital Appreciation
Bonds 2006 Series C (Continued)
The Series A bonds consist of $2,980,000 Serial Bonds with interest rates ranging from 4.00% to
4.75% payable semiannually on April 1 and October 1. Bond maturities begin April 1, 2007, and
continue annually through 2025. Term bonds in the amount of $4,465,000 carry an interest rate of
4.75% and mature April 1, 2036. Term bonds in the amount of $4,470,000 carry an interest rate of
5.00% and mature April 1, 2041. The Series B bonds consist of $383,660 Capital Appreciation
Bonds with a yield ranging from 5.31% to 5.54%. Bond maturities are April 1, 2020, 2021, 2027
and 2028. The Series C bonds consist of $2,760,866 Capital Appreciation Bonds with a yield
ranging from 4.80% to 6.10%. Bond maturities began April 1, 2009, and continue annually
through 2034. Each year the outstanding balance is increased for the accretion of interest
associated with the bonds. The accreted interest at June 30, 2014 is $1,690,085.
The future debt service requirements on the 2006 Series A Tax Allocation Revenue Bonds,
Series B Tax Allocation Revenue Capital Appreciation Bonds and Series C Subordinate Tax
Allocation Revenue Capital Appreciation Bonds (Project Area No. 3) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035 - 2039
2040 - 2041
Principal
$
285,721
309,731
329,787
344,954
369,116
1,750,563
1,901,982
2,761,861
4,055,000
1,920,000
$ 14,028,715
- 113 -
Interest
$
578,154
585,687
601,495
616,977
632,690
3,764,087
4,098,668
4,012,927
1,102,063
145,250
$ 16,137,998
$
$
Total
863,875
895,418
931,282
961,931
1,001,806
5,514,650
6,000,650
6,774,788
5,157,063
2,065,250
30,166,713
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Revenue Bonds (Project Area No. 4) 1998 Series. The proceeds from the bonds were loaned to the
Palm Desert Redevelopment Agency to fund various redevelopment capital projects of the Agency
in Project Area No. 4. Interest rates on the bonds vary from 4.0% to 5.2% per annum payable semiannually on April 1 and October 1, with principal maturing annually on October 1. In July 2006,
$1,785,000 of the outstanding balance was advance refunded by the issuance of Tax Allocation
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A.
Area No. 4) (after defeasance) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
Principal
$
360,000
375,000
400,000
410,000
430,000
2,545,000
3,285,000
$ 7,805,000
- 114 -
$
$
Interest
394,973
376,375
356,678
336,005
314,340
1,198,990
444,470
3,421,831
$
$
Total
754,973
751,375
756,678
746,005
744,340
3,743,990
3,729,470
11,226,831
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
On November 28, 2001, the Palm Desert Financing Authority issued $15,695,000 of Tax
Allocation Revenue Bonds (Project Area No. 4) 2001 Series. The proceeds from the bonds were
loaned to the Palm Desert Redevelopment Agency to fund various redevelopment capital projects
of the Agency in Project Area No. 4. Interest rates on the bonds vary from 3.5% to 4.8% per annum
payable semi-annually on April 1 and October 1, with principal maturing annually on October 1.
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2032
Principal
$
375,000
390,000
400,000
435,000
450,000
2,565,000
3,200,000
4,725,000
$ 12,540,000
- 115 -
$
$
Interest
584,038
567,322
549,825
531,073
510,940
2,214,740
1,533,120
347,160
6,838,218
$
$
Total
959,038
957,322
949,825
966,073
960,940
4,779,740
4,733,120
5,072,160
19,378,218
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Tax Allocation Refunding Revenue Bonds (Project Area No. 4) 2006 Series A and Tax Allocation
Revenue Capital Appreciation Bonds (Project Area No. 4) Series B
Refunding Revenue Bonds (Project Area No. 4) 2006 Series A and $4,633,089 of Tax Allocation
Revenue Capital Appreciation Bonds (Project Area No. 4) 2006 Series B. The Palm Desert
Financing Authority loaned the bond proceeds to the Palm Desert Redevelopment Agency. The
proceeds of the Series A and B Bonds will be used to make two loans to refinance a portion of the
outstanding obligations of the Redevelopment Agency under a loan agreement dated March 1, 1998,
fund various redevelopment capital projects within or of benefit to its Project Area No. 4, purchase
a Reserve Fund surety policy and pay the costs of issuance of the bonds. The Series A bonds
consist of $8,155,000 Serial Bonds with interest rates ranging from 4.40% to 5.00% payable
semiannually on October 1 and April 1. Bond maturities began October 1, 2008, and continue
annually through 2026. Term bonds in the amount of $2,200,000 carry an interest rate of 5.00%
and mature October 1, 2029. Term bonds in the amount of $4,255,000 carry an interest rate of
5.00% and mature October 1, 2034. The Series B bonds consist of $4,663,089 Capital Appreciation
Bonds with a yield ranging from 4.14% to 5.56%. Bond maturities begin October 1, 2009, and
continue annually through 2034. Each year the outstanding balance is increased for the accretion of
interest associated with the bonds. The accreted interest at June 30, 2014 is $2,290,665.
The future debt service requirements on the 2006 Series A Tax Allocation Refunding Bonds and
Series B Tax Allocation Revenue Capital Appreciation Bonds (Project Area No. 4) are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2034
2035
Principal
$
718,718
672,930
65,619
106,490
270,000
2,367,037
4,290,643
5,816,888
1,900,663
$ 16,208,988
- 116 -
Interest
$
599,477
543,641
549,951
589,080
504,630
2,891,481
3,288,956
7,561,987
2,102,837
$ 18,632,040
$
$
Total
1,318,195
1,216,571
615,570
695,570
774,630
5,258,518
7,579,599
13,378,875
4,003,500
34,841,028
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
2002 Series Tax Allocation (Housing Set-Aside) Revenue Bonds
On September 5, 2002, the Palm Desert Financing Authority issued $12,100,000 of Tax Allocation
(Housing Set-Aside) Revenue Bonds 2002 Series. The Palm Desert Financing Authority loaned the
bond proceeds to the Palm Desert Redevelopment Agency to fund various low and moderate
housing capital projects of the Agency and to finance costs of issuance of the bonds. Interest rates
on the $6,555,000 serial bonds vary from 2.0% to 4.9% per annum payable semi-annually on
March 1 and October 1. Annual principal payments began October 1, 2003. The $5,545,000 term
bonds bear an interest rate of 5.0% per annum and mature October 1, 2031.
The future debt service requirements on the 2002 Series Tax Allocation (Housing Set-Aside)
Revenue Bonds are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2029
2030 - 2032
Principal
$
330,000
345,000
360,000
375,000
395,000
2,280,000
2,915,000
2,130,000
$ 9,130,000
- 117 -
$
$
Interest
432,848
419,004
404,019
388,029
370,891
1,550,077
911,625
163,250
4,639,743
$
$
Total
762,848
764,004
764,019
763,029
765,891
3,830,077
3,826,625
2,293,250
13,769,743
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Tax Allocation (Housing Set-Aside) Refunding Revenue Bonds Series 2007
On February 7, 2007, the Palm Desert Financing Authority issued $86,155,000 Tax Allocation
(Housing Set-Aside) Refunding Revenue Bonds Series 2007. The Palm Desert Financing
Authority loaned the proceeds to the Palm Desert Redevelopment Agency. The proceeds of the
2007 Loan will be used to finance the development of low and moderate income housing by the
Redevelopment Agency, refinance a portion of the outstanding obligations of the Redevelopment
Agency, purchase a debt service surety bond for deposit in the Reserve Fund, and pay certain costs
associated with the issuance of the bonds. The Series 2007 bonds consist of $86,155,000 Serial
Bonds with interest ranging from 4.00% to 5.00% payable semiannually on October 1 and April 1.
Bond maturities began October 1, 2007, and continue annually through 2027.
The future debt service requirements on the Tax Allocation (Housing Set-Aside) Refunding
Revenue Bonds Series 2007 are as follows:
Year Ending
June 30,
2015
2016
2017
2018
2019
2020 - 2024
2025 - 2028
Principal
$ 5,505,000
5,785,000
6,085,000
6,395,000
6,720,000
17,905,000
13,050,000
$ 61,445,000
- 118 -
Interest
$ 2,813,563
2,531,313
2,234,563
1,922,563
1,594,688
4,549,031
1,139,000
$ 16,784,721
$
$
Total
8,318,563
8,316,313
8,319,563
8,317,563
8,314,688
22,454,031
14,189,000
78,229,721
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
20. SUBSEQUENT EVENTS:
On September 2, 2014, the EIP Series 2009 Lease Revenue Bonds outstanding in the amount of
$4,655,000 were called for redemption.
Events occurring after June 30, 2014 have been evaluated for possible adjustments to the financial
statements or disclosure as of November 17, 2014, which is the date these financial statements
were available to be issued.
- 119 -
- 120 -
Schedule 1
CITY OF PALM DESERT
SCHEDULES OF FUNDING PROGRESS
CalPERS DEFINED BENEFIT PLAN
Actuarial
Valuation
Date
Entry Age
Normal
Accrued
Liability
(AAL)
(a)
Actuarial Value
of Assets
(AVA)
(b)
Unfunded
AAL
(UAAL)
(a) - (b)
06/30/06
06/30/07
06/30/08
06/30/09
06/30/10
06/30/11
06/30/12
06/30/13
$ 52,739,452
61,535,809
67,979,926
79,133,393
87,876,959
92,858,742
99,232,017
103,058,158
$ 40,523,105
46,180,367
51,813,257
57,022,230
61,203,162
65,483,444
69,236,481
64,819,620
$ 12,216,347
15,355,442
16,166,669
22,111,163
26,673,797
27,375,298
29,995,536
38,238,538
Funded
Ratio
(b)/(a)
76.84%
75.05%
76.22%
72.06%
69.65%
70.52%
69.77%
62.90%
Covered
Payroll
(c)
$ 11,845,746
13,263,198
14,608,384
15,212,102
13,489,043
12,255,086
10,754,242
10,787,145
UAAL as a
% of Covered
Payroll
[(a)-(b)]/(c)
103.13%
115.77%
110.67%
145.35%
197.74%
223.38%
278.92%
354.48%
OTHER POST-EMPLOYMENT BENEFIT PLAN
Actuarial
Valuation
Date
Actuarial
Accrued
Liability
(AAL)
(a)
07/01/07
07/01/09
06/30/11
06/30/13
$ 6,481,631
8,230,029
9,854,151
11,234,217
Actuarial Value
of Assets
(AVA)
(b)
$
6,916,360
8,986,749
9,709,457
Unfunded
AAL
(UAAL)
(a) - (b)
$
6,481,631
1,313,669
867,402
1,524,760
See independent auditors' report.
- 121 -
Funded
Ratio
(b)/(a)
0.00%
84.04%
91.20%
86.43%
Covered
Payroll
(c)
$ 13,800,864
12,449,000
11,416,000
9,667,000
UAAL as a
% of Covered
Payroll
[(a)-(b)]/(c)
46.97%
10.55%
7.60%
15.77%
- 122 -
Schedule 2
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Budgeted Amounts
Original
Final
Fund balance, July 1
Resources (inflows):
Taxes
Rental income
Charges of services
Investment earnings
Miscellaneous
Transfers from other funds
Total resources
Charges to appropriations (outflows):
Current:
General government
Public safety
Public works
Capital outlay
Transfers to other funds
Total charges to appropriations
Excess of resources over (under)
charges to appropriations
Fund balance, June 30
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 76,214,930
$ 76,214,930
$ 76,214,930
40,938,000
1,185,000
660,000
165,000
705,000
110,000
170,000
347,000
2,237,500
42,213,000
1,785,000
660,000
165,000
1,405,000
110,000
170,000
347,000
2,237,500
42,296,613
1,834,215
1,844,327
148,633
1,439,278
100,393
405,456
654,726
1,373,786
83,613
49,215
1,184,327
(16,367)
34,278
(9,607)
235,456
307,726
(863,714)
46,517,500
49,092,500
50,097,427
1,004,927
12,760,222
19,532,418
7,761,327
3,708,493
2,746,234
15,446,849
19,172,422
7,567,229
3,849,242
90,000
4,046,234
14,874,403
19,090,260
6,386,036
3,772,021
60,939
3,754,752
572,446
82,162
1,181,193
77,221
29,061
291,482
46,508,694
50,171,976
47,938,411
2,233,565
(1,079,476)
2,159,016
3,238,492
8,806
$ 76,223,736
$ 75,135,454
See independent auditors' report and note to required supplementary information.
- 123 -
$ 78,373,946
$
$
-
3,238,492
Schedule 3
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE
PROP A FIRE TAX SPECIAL REVENUE FUND
Actual
Amounts
Budgeted Amounts
Original
Final
$
Taxes
Investment earnings
Miscellaneous
Transfers in
Total resources
Current:
Public safety
Capital outlay
2,582,655
$
$
2,582,655
$
-
4,800,000
2,200,000
820,000
2,000
10,000
1,553,000
4,800,000
2,200,000
820,000
2,000
10,000
1,553,000
5,036,055
2,114,822
883,935
3,678
17,500
1,553,000
236,055
(85,178)
63,935
1,678
7,500
-
9,385,000
9,385,000
9,608,990
223,990
9,858,359
14,450
9,866,845
14,450
9,728,650
4,325
138,195
10,125
9,872,809
9,881,295
9,732,975
148,320
(487,809)
$
2,582,655
Variance with
Final Budget
Positive
(Negative)
2,094,846
(496,295)
$
2,086,360
See independent auditors' report and note to required supplementary information.
- 124 -
(123,985)
$
2,458,670
372,310
$
372,310
CITY OF PALM DESERT
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2014
BUDGETS AND BUDGETARY ACCOUNTING:
The City used the following procedures in establishing the budgetary data reported in the financial
statements:
1. Before the beginning of the fiscal year, the City Manager submits to the City Council a
proposed budget for the year commencing the following July 1.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is subsequently adopted through passage of a resolution.
4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level,
which is the legal level of control.
For other funds, expenditures cannot exceed the total amount budgeted for each fund, which is
the legal level of control. The City Manager is authorized to transfer appropriations (without
council approval) between an object of a General Fund Department. The City Council
approves all other changes. Annual appropriation amounts lapse at year-end.
5. Encumbrances and continuing appropriations are rebudgeted as of July 1, by Council action.
6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted
in the United States of America for all governmental funds except for certain special revenue
funds and capital projects funds, which adopt project length budgets and debt service funds that
are not budgeted as effectively budgetary control is achieved through debt indenture provisions.
The following special revenue funds had legally adopted budgets during the current fiscal year:
Major Fund
Prop A Fire Tax
Traffic Safety
Gas Tax
Housing Mitigation Fees
Community Development Block Grant
Public Safety Police Grants
El Paseo Assessment District
Landscape and Lighting District No. 1-17
- 125 -
- 126 -
GENERAL FUND
The General Fund is used to account for all financial resources traditionally associated with
government, except those required to be accounted for in another fund. It is the primary operating fund
that includes the operating budgets for all the departments and the majority of the City’s tax revenues.
- 127 -
Schedule 4
CITY OF PALM DESERT
BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT
GENERAL FUND
Budgeted Amounts
Original
Final
Taxes:
Property taxes
Property transfer tax
Property tax in lieu
Timeshare mitigation fee
Sales tax
Business license tax
Job valuation fees
Transient occupancy tax
Franchises
Penalties and interest on taxes
Total Taxes
Licenses and Permits:
Building permits
Grading permits
Encroachment permits
Miscellaneous permits
Business regulatory permits
Valet parking permits
Total Licenses and Permits
Intergovernmental Revenues:
Grants
Motor vehicle in-lieu fees
Monthly parking ball
Reimbursement RDA costs
Other reimbursements
Total Intergovernmental Revenues
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 76,214,930
$ 76,214,930
$ 76,214,930
5,573,000
500,000
3,490,000
1,265,000
17,500,000
1,250,000
20,000
8,425,000
2,900,000
15,000
5,773,000
500,000
3,490,000
1,265,000
17,200,000
1,250,000
20,000
9,800,000
2,900,000
15,000
5,546,341
530,556
3,495,087
1,333,586
17,258,958
1,169,316
37,141
9,855,509
3,007,215
62,904
(226,659)
30,556
5,087
68,586
58,958
(80,684)
17,141
55,509
107,215
47,904
40,938,000
42,213,000
42,296,613
83,613
1,030,000
4,500
100,000
50,000
500
1,630,000
4,500
100,000
50,000
500
1,676,654
18,649
98,728
2,215
37,444
525
46,654
14,149
(1,272)
2,215
(12,556)
25
1,185,000
1,785,000
1,834,215
49,215
30,000
20,000
610,000
30,000
20,000
610,000
133
22,089
12,782
1,056,116
753,207
133
(7,911)
(7,218)
1,056,116
143,207
660,000
660,000
1,844,327
1,184,327
$
-
(Continued)
- 128 -
Schedule 4
CITY OF PALM DESERT
GENERAL FUND
(CONTINUED)
Budgeted Amounts
Original
Final
Resources (inflows) (Continued):
Rental income
Charges for Services:
Subdivision fees
Zoning fees
Plan check fees
Sale of maps and publications
Microfilm fees
Other fees
Total Charges for Services
Fines and Forfeitures:
Vehicle code fines
Municipal court fines
VICR fees
Total Fines and Forfeitures
Investment Earnings:
Interest income
Interest on notes receivable
Total Investment Earnings
Miscellaneous Revenues:
Code compliance
Strong motion instrument fee
Special investigation fee
Certificate of compliance fee
Nuisance abatement tax
Abandoned vehicle abatement
Fire inspection service
Other revenue
Total Miscellaneous Revenues
Transfers from other funds
Amounts Available for Appropriation
$
165,000
$
165,000
Actual
Amounts
$
148,633
Variance with
Final Budget
Positive
(Negative)
$
(16,367)
200,000
120,000
300,000
15,000
15,000
55,000
400,000
270,000
650,000
15,000
15,000
55,000
421,237
237,876
662,893
12,677
8,940
95,655
705,000
1,405,000
1,439,278
15,000
25,000
70,000
15,000
25,000
70,000
21,790
10,283
68,320
6,790
(14,717)
(1,680)
110,000
110,000
100,393
(9,607)
90,000
80,000
90,000
80,000
301,487
103,969
211,487
23,969
170,000
170,000
405,456
235,456
1,000
5,000
5,000
1,000
60,000
40,000
115,000
120,000
1,000
5,000
5,000
1,000
60,000
40,000
115,000
120,000
10,985
11,422
7,719
1,175
28,097
73,686
293,349
228,293
9,985
6,422
2,719
175
(31,903)
33,686
178,349
108,293
347,000
347,000
654,726
307,726
2,237,500
2,237,500
1,373,786
46,517,500
49,092,500
50,097,427
21,237
(32,124)
12,893
(2,323)
(6,060)
40,655
34,278
(863,714)
1,004,927
(Continued)
- 129 -
Schedule 4
CITY OF PALM DESERT
GENERAL FUND
(CONTINUED)
Budgeted Amounts
Original
Final
General Government - Departmental:
City council
City clerk
Legislative advocacy
City attorney
Legal special services
City manager
Community services
Finance
Auditing
Human resources
General services
Information technology
Unemployment insurance
Insurance
Community promotions
Community development
Economic development center
Marketing
Total General Government - Departmental
General Government - Nondepartmental:
Retiree funding
Contributions to other agencies
Total General Government - Non departmental
Total General Government
Public Safety:
Police services
Animal regulation
Traffic safety
Building and safety
Total Public Safety
$
238,653
940,496
36,500
244,000
335,000
1,058,555
417,517
1,952,219
63,000
502,011
587,000
818,917
50,000
539,000
655,125
1,979,935
755,417
956,877
12,130,222
$
258,653
952,496
36,500
244,000
335,000
1,139,799
439,117
1,981,219
69,400
502,011
484,000
843,917
25,000
461,000
685,125
1,903,668
780,417
906,877
12,048,199
Actual
Amounts
$
230,464
936,942
36,180
237,984
264,358
1,014,562
438,902
1,980,230
69,311
476,529
472,167
773,899
21,215
460,835
618,138
1,876,415
779,996
873,033
11,561,160
Variance with
Final Budget
Positive
(Negative)
$
28,189
15,554
320
6,016
70,642
125,237
215
989
89
25,482
11,833
70,018
3,785
165
66,987
27,253
421
33,844
487,039
630,000
630,000
2,700,000
698,650
3,398,650
2,700,000
613,243
3,313,243
85,407
85,407
12,760,222
15,446,849
14,874,403
572,446
17,392,606
250,606
263,380
1,625,826
16,873,909
250,606
263,380
1,784,527
16,830,999
220,640
254,703
1,783,918
42,910
29,966
8,677
609
19,532,418
19,172,422
19,090,260
82,162
(Continued)
- 130 -
Schedule 4
CITY OF PALM DESERT
GENERAL FUND
(CONTINUED)
Budgeted Amounts
Original
Final
Charges to appropriations (outflows) (Continued):
Public Works:
Administration
Street maintenance
Street resurfacing
Curb and gutter
Parking lot
Stripping
Corporate yard
Building maintenance
Portola community center
Auto equipment
Storm water permit
Total Public Works
$
2,665,593
2,624,295
1,000,000
25,000
250,000
67,755
593,184
65,500
410,000
60,000
$
2,605,593
2,807,878
1,055,257
25,000
47,062
5,000
65,500
473,184
67,755
350,000
65,000
Actual
Amounts
$
2,556,967
2,806,168
4,466
25,000
8,117
1,605
53,316
469,728
55,909
340,708
64,052
Variance with
Final Budget
Positive
(Negative)
$
48,626
1,710
1,050,791
38,945
3,395
12,184
3,456
11,846
9,292
948
7,761,327
7,567,229
6,386,036
1,181,193
743,000
926,710
1,671,624
367,159
762,115
943,451
1,840,517
303,159
748,878
933,373
1,796,672
293,098
13,237
10,078
43,845
10,061
3,708,493
3,849,242
3,772,021
77,221
-
90,000
60,939
29,061
2,746,234
4,046,234
3,754,752
291,482
Amounts Charged to Appropriation
46,508,694
50,171,976
47,938,411
2,233,565
8,806
(1,079,476)
2,159,016
3,238,492
Parks, Recreation and Culture:
Park maintenance
Civic center park
Landscape service
Visitors center
Total Parks, Recreation and Culture
Capital Outlay - Departmental
Transfers to other funds
$ 76,223,736
- 131 -
$ 75,135,454
$ 78,373,946
$
3,238,492
- 132 -
OTHER GOVERNMENTAL FUNDS
COMBINING STATEMENTS
- 133 -
Schedule 5
CITY OF PALM DESERT
COMBINING BALANCE SHEET
June 30, 2014
ASSETS:
Receivables:
Accounts
Assessments
Interest
Loans
Prepaid costs
Inventories
Restricted assets:
TOTAL ASSETS
$
Special
Revenue
Funds
37,465,378
$
Debt
Service
Fund
100,227
$
Capital
Projects
Funds
15,368,038
Total
Other
Governmental
Funds
$
52,933,643
431,751
186,227
5,075,153
3,168
4,035
612,841
1,512
654,000
1,382,905
5,955
-
16,924
26,472
2,393
242,783
500,000
12,765,000
448,675
1,382,905
212,699
5,075,153
5,561
4,035
861,579
501,512
13,419,000
6,063,736
-
21,960,411
28,024,147
$
50,497,801
$
1,489,087
$
50,882,021
$
102,868,909
$
698,449
99,094
194,873
86,022
487,492
$
230
-
$
182,160
947
2,553,000
137,713
167,583
$
880,839
100,041
2,747,873
223,735
655,075
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
Deposits payable
TOTAL LIABILITIES
Unavailable revenue
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Capital projects
Debt service
Low income housing
Public facilities
Public safety
Special programs
Committed to:
Aquatic center
Energy loan program
Assigned to:
Capital projects
Property acquisition
Public facilities
Special programs
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES
$
1,565,930
230
3,041,403
4,607,563
179,894
1,382,905
-
1,562,799
3,168
-
2,393
5,561
11,401,415
3,867,580
941,462
7,001,258
3,893,026
105,952
-
21,973,168
1,435,233
21,973,168
105,952
11,401,415
3,867,580
941,462
8,436,491
3,893,026
2,135,692
11,875,488
7,632,888
-
-
2,135,692
11,875,488
7,632,888
-
-
10,963,431
420,387
10,130,979
667,255
2,247,772
10,963,431
420,387
10,130,979
667,255
2,247,772
48,751,977
105,952
47,840,618
96,698,547
50,497,801
- 134 -
$
1,489,087
$
50,882,021
$
102,868,909
Schedule 6
CITY OF PALM DESERT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Special
Revenue
Funds
REVENUES:
Taxes
Rental income
Investment earnings
Contribution from property owners
Miscellaneous
TOTAL REVENUES
$
EXPENDITURES:
Current:
General government
Public safety
Public works
Contribution to property owners
Capital outlay
Debt service:
TOTAL EXPENDITURES
Sale of property
Transfers in
Transfers out
SOURCES (USES)
589,491
1,254,030
3,431,271
5,474,851
725,742
121,189
131,375
1,591,825
219,753
13,539,527
Debt
Service
Fund
$
Capital
Projects
Funds
117,368
466
117,834
$
428,692
434,883
134,891
420,590
1,584,269
3,003,325
589,491
1,371,398
428,692
3,866,154
5,474,851
725,742
256,546
131,375
1,591,825
420,590
1,804,022
16,660,686
12,904
-
884,542
710,994
863,308
2,350,187
618,172
2,196,413
5,400,930
320,825
2,030,920
3,212,134
2,350,187
1,488,323
611,000
162,818
12,333,443
63,000
79,677
155,581
5,427,203
674,000
242,495
17,916,227
1,206,084
(37,747)
(2,423,878)
(1,255,541)
1,418,765
(893,299)
-
911,001
516,000
(776,000)
911,001
1,934,765
(1,669,299)
525,466
-
651,001
1,176,467
1,731,550
(37,747)
(1,772,877)
47,020,427
143,699
49,613,495
105,952
$ 47,840,618
$
$
1,298,967
5,400,930
320,825
1,319,926
2,348,826
870,151
Total
Other
Governmental
Funds
48,751,977
- 135 -
$
(79,074)
96,777,621
$
96,698,547
- 136 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
Special Revenue Funds are used to account for proceeds of specific revenue sources other than
expendable trust that are legally restricted to expenditures for specific purposes.
Traffic Safety Fund - Traffic and court fines are collected in these funds. A transfer from this Fund to
the General Fund is made at the end of the fiscal year by council action to be applied toward the
eligible expenditures permitted by law.
Gas Tax Fund - Portions of the tax rate per gallon levied by the State of California on all gasoline
purchases are allocated to cities throughout the State. These funds are restricted to expenditure for
transit and street-related purposes.
Housing Mitigation Fee Fund - This fund is used to account for fees collected from construction of
commercial and office buildings for low and moderate income mitigation purposes to be used strictly
for projects and programs that benefit the low and moderate income households.
Community Development Block Grant Fund - This fund is used to account for the receipts and
expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development.
New Construction Tax Fund - This fund is used to account for tax collected upon application to the
City for a building permit from every person/entity for the construction of any new building, addition
or trailer space in the city according to a fee schedule. Its use is restricted for the acquisition and
development of public facilities such as parks, playgrounds and public structures.
Planned Drainage Fund - This fund is used to account for off-site drainage fees based on an established
fee schedule collected prior to approval of the final map in the case of land being subdivided or prior to
the issuance of a building permit in the case of construction or improvement of subdivided land.
Park and Recreation Facilities Fund - This fund is used to account for fees collected for residential and
subdivision developments collected either at the time grading permits are paid or prior to the approval
of the final map. Its use is restricted for expenditures related to park development, maintenance and
equipment.
Traffic Signals Fund - This fund is used to account for fees collected for residential, commercial and
industrial developments either at the time grading permits are paid or prior to the approval of the final
map. Its use is restricted for expenditures related to the acquisition and maintenance of traffic signals.
Recycling Fund - This fund is used to account for resources resulting from lower landfill tipping fees
which have been reduced to zero in 2013, and State grant funds. Funds will be utilized for purposes of
promoting recycling and recycling related activities.
- 137 -
- 138 -
OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE
(CONTINUED)
Public Safety Police Grants Fund - This fund is used to account for grants received from the U.S.
Department of Justice under the Local Law Enforcement Block Grants Program for the purpose of
purchasing equipment related to public safety.
El Paseo Assessment District Fund - This fund is used to collect assessments on all business
establishments located within the boundaries set for the El Paseo parking and business improvement
area based on a fee schedule established for the various types of businesses. Proceeds from all charges
are used for the promotion of business activities in the area.
Air Quality Management Fund - This fund accounts for receipts from South Coast Air Quality
Management District, one hundred percent of which is disbursed to the Coachella Valley Association
of Governments.
Various Landscape and Lighting District Funds - These funds are used to account for expenditures and
receipts of property taxes and service fees levied to the property owners in the various landscaping and
lighting districts, which were formed to provide landscaping and street lighting maintenance.
Individual landscaping and lighting funds are set up for Districts No. 1 through 17.
Child Care Program Fund - This fund is used to collect funds from developers for the purpose of
providing child care programs.
Fire Facilities Restoration Fund - This fund is used to collect funds from developers for the purpose of
construction, restoration and purchase of equipment for fire stations within the City.
Energy Independence Loan Fund - This fund is used to provide funding for the AB811 Energy Loans
and collect assessments from those AB811 loans through property tax collections. The assessments
collected will be used to service debt issued and to provide additional funding for the AB811 loans.
Aquatic Center Fund - This fund is used to account for revenues and expenditures of the City’s aquatic
facility.
RDA Low Income Housing Fund - This fund is used to account for the management and operation of
the City’s housing assets.
Housing Authority Fund - This fund is used to account for revenues and expenditures related to rental
units owned by the Housing Authority, established in January, 1998.
- 139 -
CITY OF PALM DESERT
OTHER SPECIAL REVENUE FUNDS
June 30, 2014
Gas Tax
Housing
Mitigation
Fee
-
$ 1,508,933
$ 2,423,612
10,327
-
155,586
-
-
-
-
-
$
10,327
$ 1,664,519
$ 2,423,612
$
-
$
$
Traffic
Safety
ASSETS:
Receivables:
Accounts
Interest
Loans
Prepaid costs
Inventories
Restricted assets:
$
TOTAL ASSETS
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
Deposits payable
TOTAL LIABILITIES
Unavailable revenue
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Low income housing
Public facilities
Public safety
Special programs
Committed to:
Aquatic center
Energy loan program
TOTAL FUND BALANCES
OF RESOURCES AND FUND BALANCES
$
- 140 -
-
-
-
-
-
-
-
-
10,327
1,664,519
2,423,612
-
10,327
1,664,519
2,423,612
10,327
$ 1,664,519
$ 2,423,612
Schedule 7
Community
Development
Block Grant
New
Construction
Tax
Planned
Drainage
Park and
Recreation
Facilities
Traffic
Signals
$
Recycling
$
679,742
$ 1,910,752
$ 1,129,627
$ 307,428
$ 4,195,534
819
143,886
-
654,000
-
79,375
-
-
5
1,735
134,012
-
1,100
56,947
-
-
-
-
-
-
-
-
-
-
$
144,705
$ 1,333,742
$ 1,910,752
$ 1,209,002
$ 307,428
$ 4,331,286
$ 129,197
$
43,721
$
63,319
62,561
125,880
$
$
$
$
$
$
$
9,432
9,432
$
-
32,037
130,800
162,837
-
3,872
3,872
-
Public
Safety Police
Grants
38,804
875
3,607
43,286
$
71,150
59,461
62,837
122,298
El Paseo
Assessment
District
$
43,721
-
-
-
-
-
-
-
-
-
-
-
-
-
1,735
1,100
-
18,825
-
1,170,905
-
1,910,752
1,205,130
-
307,428
4,286,265
-
5,799
-
34,289
-
18,825
1,170,905
1,910,752
1,205,130
307,428
4,288,000
6,899
34,289
144,705
$ 1,333,742
$ 1,910,752
$ 1,209,002
$ 307,428
$ 4,331,286
$ 129,197
$
43,721
(Continued)
- 141 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Landscape
and Lighting
Districts
Nos. 1 - 17
Air
Quality
Management
ASSETS:
Receivables:
Accounts
Interest
Loans
Prepaid costs
Inventories
Restricted assets:
TOTAL ASSETS
$
348,835
$
Fire
Facilities
Restoration
Child Care
Program
2,337,604
$ 1,491,545
16,092
16,616
-
-
-
-
-
-
-
-
-
-
$ 1,491,545
$
935,663
$
$
-
$
364,927
$
2,354,220
$
19,197
19,197
$
38,071
38,071
$
935,663
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
Deposits payable
TOTAL LIABILITIES
Unavailable revenue
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Low income housing
Public facilities
Public safety
Special programs
Committed to:
Aquatic center
Energy loan program
TOTAL FUND BALANCES
OF RESOURCES AND FUND BALANCES $
-
-
-
-
-
-
-
-
-
345,730
-
2,316,149
-
1,491,545
-
935,663
-
345,730
2,316,149
1,491,545
935,663
2,354,220
$ 1,491,545
364,927
- 142 -
$
$
935,663
Schedule 7
Energy
Independence
Loan
$
373,447
Aquatic
Center
$
Housing
Authority
Total
Other
Special Revenue
Funds
-
$ 17,756,325
$ 37,465,378
431,751
186,227
5,075,153
3,168
4,035
612,841
1,512
654,000
RDA
Low Income
Housing
1,951,460
$
18,439
179,894
5,075,153
333
-
404,322
4,035
-
3,786
-
-
-
-
4,380
6,333
1,512
-
2,190,249
-
-
3,873,487
6,063,736
$
7,837,515
$
2,359,817
$
3,786
$ 21,642,037
$ 50,497,801
$
24,400
24,400
$
211,943
12,182
224,125
$
2,274
1,512
3,786
$
$
$
197,913
95,945
7,396
487,492
788,746
698,449
99,094
194,873
86,022
487,492
1,565,930
179,894
-
-
-
179,894
333
-
-
-
3,168
-
-
-
8,977,803
-
11,401,415
3,867,580
941,462
7,001,258
3,893,026
7,632,888
7,633,221
2,135,692
2,135,692
-
11,875,488
20,853,291
2,135,692
11,875,488
7,632,888
48,751,977
3,786
$ 21,642,037
$ 50,497,801
7,837,515
$
2,359,817
$
- 143 -
CITY OF PALM DESERT
Traffic
Safety
REVENUES:
Taxes
Rental income
Investment earnings
Miscellaneous
TOTAL REVENUES
$
EXPENDITURES:
Current:
General government
Public safety
Public works
Capital outlay
Debt service:
TOTAL EXPENDITURES
Transfers in
Transfers out
SOURCES (USES)
FUND BALANCES BEGINNING OF YEAR
Gas Tax
142
131,375
131,517
$
$
- 144 -
2,362,462
1,667
2,364,129
$
53,954
9,739
63,693
-
1,304,800
-
125,849
-
-
1,304,800
125,849
131,517
1,059,329
(62,156)
(139,568)
-
-
(139,568)
-
-
(8,051)
1,059,329
18,378
Housing
Mitigation
Fee
10,327
$
(62,156)
605,190
2,485,768
1,664,519
$ 2,423,612
Schedule 8
Community
Development
Block Grant
New
Construction
Tax
$
$
$
359,345
4,998
364,343
275,579
1,807
7,951
285,337
Park and
Recreation
Facilities
Planned
Drainage
$
12,740
8,573
21,313
$
100,611
4,751
83,003
188,365
Traffic
Signals
$
Recycling
18,991
1,761
112,626
133,378
$
181,908
18,529
671
201,108
Public
Safety Police
Grants
El Paseo
Assessment
District
$
$
320,638
88
320,726
246,105
246,105
359,344
-
44,086
-
6,627
334,084
71,981
99,421
266,967
111,755
542,585
22,300
179,670
-
320,825
-
248,100
-
359,344
44,086
340,711
171,402
378,722
744,555
320,825
248,100
4,999
241,251
(319,398)
16,963
(245,344)
(543,447)
-
-
-
-
-
(20,718)
-
-
-
-
-
-
-
(20,718)
-
-
4,999
241,251
13,826
929,654
2,230,150
1,188,167
552,772
4,852,165
18,825
$ 1,170,905
$ 1,910,752
$ 1,205,130
$ 307,428
$ 4,288,000
(319,398)
16,963
(245,344)
(99)
(564,165)
(1,995)
(99)
(1,995)
6,998
$
6,899
36,284
$
34,289
(Continued)
- 145 -
CITY OF PALM DESERT
(CONTINUED)
Landscape
and Lighting
Districts
Nos. 1 - 17
Air
Quality
Management
REVENUES:
Taxes
Rental income
Investment earnings
Miscellaneous
TOTAL REVENUES
$
EXPENDITURES:
Current:
General government
Public safety
Public works
Capital outlay
Debt service:
TOTAL EXPENDITURES
61,772
1,275
-
FUND BALANCES BEGINNING OF YEAR
$
591,731
4,220
-
$
23,373
5,763
-
$
104,243
3,327
-
19
63,066
595,951
29,136
107,570
38,671
-
546,676
-
-
-
38,671
546,676
-
-
24,395
49,275
29,136
107,570
-
75,867
-
-
-
-
75,867
-
-
24,395
125,142
29,136
107,570
321,335
2,191,007
1,462,409
828,093
2,316,149
$ 1,491,545
Transfers in
Transfers out
SOURCES (USES)
$
Fire
Facilities
Restoration
Child Care
Program
345,730
- 146 -
$
$
935,663
Schedule 8
Energy
Independence
Loan
$
416,194
5,905
-
Aquatic
Center
$
725,742
3,334
-
$
Housing
Authority
-
$
$
589,491
1,254,030
3,431,271
5,474,851
725,742
121,189
131,375
1,591,825
219,753
13,539,527
7,685
429,784
729,076
-
110,267
-
1,225,645
113,316
733,013
-
4,542,068
211,575
1,298,967
5,400,930
320,825
1,319,926
2,348,826
870,151
611,000
162,818
884,085
1,338,961
733,013
4,753,643
611,000
162,818
12,333,443
(609,885)
(733,013)
2,511,287
1,206,084
-
609,885
-
733,013
-
(733,013)
1,418,765
(893,299)
-
609,885
733,013
(733,013)
525,466
-
-
1,778,274
1,731,550
2,135,692
-
19,075,017
47,020,427
20,853,291
$ 48,751,977
(454,301)
8,087,522
7,633,221
$
2,135,692
-
145,146
5,474,851
Total
Other
Special Revenue
Funds
50,308
1,591,825
2,800
7,264,930
(454,301)
$
RDA
Low Income
Housing
$
-
$
- 147 -
Schedule 9-A
CITY OF PALM DESERT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC SAFETY
Budgeted Amounts
Original
Final
$
Investment earnings
Total resources
Transfers out
$
18,378
$
Actual
Amounts
18,378
$
18,378
Variance with
Final Budget
Positive
(Negative)
$
-
1,000
174,000
1,000
174,000
142
131,375
(858)
(42,625)
175,000
175,000
131,517
(43,483)
175,000
175,000
139,568
35,432
175,000
175,000
139,568
35,432
-
-
18,378
- 148 -
$
18,378
(8,051)
$
10,327
(8,051)
$
(8,051)
Schedule 9-B
CITY OF PALM DESERT
GAS TAX
Budgeted Amounts
Original
Final
$
Investment earnings
Total resources
Current:
Public works
Transfers out
605,190
$
$
605,190
$
-
1,383,800
11,200
1,383,800
11,200
2,362,462
1,667
978,662
(9,533)
1,395,000
1,395,000
2,364,129
969,129
565,000
830,000
1,869,800
830,000
1,304,800
-
565,000
830,000
1,395,000
2,699,800
1,304,800
1,395,000
(1,304,800)
1,059,329
2,364,129
$
605,190
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
605,190
- 149 -
$
(699,610)
$
1,664,519
$
2,364,129
Schedule 9-C
CITY OF PALM DESERT
HOUSING MITIGATION FEES
Budgeted Amounts
Original
Final
$
Taxes
Investment earnings
Miscellaneous
Total resources
Current:
$
2,485,768
$
2,485,768
Actual
Amounts
$
2,485,768
Variance with
Final Budget
Positive
(Negative)
$
-
56,000
3,000
120,000
56,000
3,000
120,000
53,954
9,739
-
(2,046)
6,739
(120,000)
179,000
179,000
63,693
(115,307)
500,000
500,000
125,849
374,151
500,000
500,000
125,849
374,151
(321,000)
(321,000)
(62,156)
258,844
2,164,768
- 150 -
$
2,164,768
$
2,423,612
$
258,844
Schedule 9-D
CITY OF PALM DESERT
COMMUNITY DEVELOPMENT BLOCK GRANT
Budgeted Amounts
Original
Final
Fund balance (deficit), July 1
$
Investment earnings
Miscellaneous
13,826
$
13,826
Actual
Amounts
$
13,826
Variance with
Final Budget
Positive
(Negative)
$
-
321,200
300
-
321,200
300
-
359,345
4,998
38,145
(300)
4,998
321,500
321,500
364,343
42,843
332,000
501,187
359,344
141,843
332,000
501,187
359,344
141,843
(10,500)
(179,687)
4,999
184,686
Total resources
Current:
General government
$
3,326
- 151 -
$
(165,861)
$
18,825
$
184,686
Schedule 9-E
CITY OF PALM DESERT
PUBLIC SAFETY POLICE GRANTS
Budgeted Amounts
Original
Final
$
Investment earnings
Total resources
Current:
Public safety
6,998
$
$
6,998
$
-
100,000
300,000
-
320,638
88
20,638
88
100,000
300,000
320,726
20,726
101,500
326,500
320,825
5,675
101,500
326,500
320,825
5,675
(1,500)
$
6,998
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
5,498
- 152 -
(26,500)
$
(19,502)
(99)
$
6,899
26,401
$
26,401
Schedule 9-F
CITY OF PALM DESERT
EL PASEO ASSESSMENT DISTRICT
Budgeted Amounts
Original
Final
$
Total resources
Current:
General government
$
36,284
$
Actual
Amounts
36,284
$
36,284
Variance with
Final Budget
Positive
(Negative)
$
-
250,000
250,000
246,105
(3,895)
250,000
250,000
246,105
(3,895)
250,000
250,000
248,100
1,900
250,000
250,000
248,100
1,900
-
-
36,284
- 153 -
$
36,284
(1,995)
$
34,289
(1,995)
$
(1,995)
Schedule 9-G
CITY OF PALM DESERT
LANDSCAPE AND LIGHTING DISTRICTS NOS. 1 - 17
Budgeted Amounts
Original
Final
$
Investment earnings
Transfers in
2,191,007
$
2,191,007
Actual
Amounts
$
2,191,007
Variance with
Final Budget
Positive
(Negative)
$
-
805,696
77,000
805,696
77,000
591,731
4,220
75,867
(213,965)
4,220
(1,133)
882,696
882,696
671,818
(210,878)
753,723
770,146
546,676
223,470
753,723
770,146
546,676
223,470
128,973
112,550
125,142
12,592
Total resources
Current:
Public works
$
2,319,980
- 154 -
$
2,303,557
$
2,316,149
$
12,592
OTHER GOVERNMENTAL FUNDS - DEBT SERVICE FUND
City Highlands Undergrounding Fund - This fund is used to account for the resources and payment for
debt related to Highlands Undergrounding.
- 155 -
Schedule 10
CITY OF PALM DESERT
BALANCE SHEET
OTHER DEBT SERVICE FUND
June 30, 2014
City
Highlands
Undergrounding
ASSETS:
Receivables:
Assessments
$
100,227
Total
Other
Debt Service
Fund
$
1,382,905
5,955
TOTAL ASSETS
100,227
1,382,905
5,955
$
1,489,087
$
1,489,087
$
230
$
230
RESOURCESAND FUND BALANCES
LIABILITIES:
Accounts payable
TOTAL LIABILITIES
Unavailable revenue
TOTAL DEFERRED INFLOWS
OF RESOURCES
FUND BALANCE:
Restricted for:
Debt service
TOTAL FUND BALANCE
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES AND
FUND BALANCE
$
- 156 -
230
230
1,382,905
1,382,905
1,382,905
1,382,905
105,952
105,952
105,952
105,952
1,489,087
$
1,489,087
Schedule 11
CITY OF PALM DESERT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
OTHER DEBT SERVICE FUND
City
Highlands
Undergrounding
REVENUES:
Investment earnings
$
TOTAL REVENUES
117,368
466
Total
Other
Debt Service
Fund
$
117,368
466
117,834
117,834
12,904
12,904
63,000
79,677
63,000
79,677
TOTAL EXPENDITURES
155,581
155,581
(37,747)
(37,747)
143,699
143,699
EXPENDITURES:
Current:
General government
Debt service:
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
- 157 -
105,952
$
105,952
- 158 -
OTHER GOVERNMENTAL FUNDS - CAPITAL PROJECTS
Capital Projects Funds are used to account for the acquisition and construction of major capital
facilities, except for those financed by certain Special Revenue and Enterprise funds.
Arts in Public Places Fund - This fund is used to account for fees collected from residential,
commercial and public facilities development except for street and drainage projects. Its use is
restricted for acquisition, installation, improvement and maintenance of artwork to be displayed in the
City, the administration of the program and community public art education programs.
Drainage Facilities Fund - This fund is used to account for resources and expenditures for planned
capital improvement projects that are under the Master Drainage Plan.
Parks and Recreational Facilities Fund - This fund is used to account for resources and expenditures
for capital improvement projects that are related to park development, maintenance and equipment.
Signalization Fund - This fund is used to account for resources and expenditures for capital
improvement projects that are related to the acquisition and maintenance of traffic signals.
Buildings Fund - This fund is used to account for resources and expenditures for capital improvement
projects that are related to the improvement and maintenance of public facilities and structures.
Library Fund - This fund is used to account for resources and expenditures for capital improvement
projects that are related to the purchase of library resources for the Multi-Agency Library.
Special Assessment District Funds - This fund is used to account for the construction of public
improvements from proceeds resulting from the creation of various assessment Districts.
Assessment District No. 94-3 Merano
Silver Spur Ranch
Highlands Undergrounding
CFD University
Assessment 29
Capital Golf Fund - This fund is used to offset the cost of capital improvements, equipment purchases,
perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of
Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are
collections from the IROC and Standard Vacation Ownership, Inc. time-share project.
Capital Properties - This fund is used to account for the cost of city owned properties that will either be
sold or for the construction of public facilities.
Capital Projects Reserve - This fund is used to account for resources and expenditures for capital
improvement projects that are related to the acquisition and development of public facilities,
infrastructure and equipment.
Economic Development - This fund is used to account for façade enhancement projects for Palm
Desert businesses utilizing funds from the sales of certain City-owned properties.
- 159 -
CITY OF PALM DESERT
OTHER CAPITAL PROJECTS FUNDS
June 30, 2014
Arts in
Public Places
ASSETS:
Receivables:
Accounts
Interest
Prepaid costs
Restricted assets:
$
TOTAL ASSETS
1,612,655
Drainage
Facilities
$
2,118,470
-
-
-
-
$
1,612,655
$
2,118,470
$
8,892
947
167,583
177,422
$
-
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
Deposits payable
TOTAL LIABILITIES
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Capital projects
Special programs
Assigned to:
Capital projects
Public facilities
Special programs
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
$
- 160 -
-
-
1,435,233
-
1,435,233
2,118,470
2,118,470
1,612,655
$
2,118,470
Schedule 12
Parks and
Recreation
Facilities
$
Signalization
246,249
$
129,302
Buildings
$
Assessment
District No. 94-3
Merano
Library
2,751,996
$
667,255
$
-
Silver Spur
Ranch
$
588
4,765,000
-
-
-
-
-
-
-
-
-
178,922
-
$
5,011,249
$
129,302
$
2,751,996
$
667,255
$
178,922
$
588
$
953,000
953,000
$
-
$
-
$
-
$
-
$
-
$
-
-
-
-
-
-
-
-
-
-
178,922
-
588
-
4,058,249
4,058,249
129,302
129,302
2,751,996
2,751,996
667,255
667,255
178,922
588
5,011,249
$
129,302
$
2,751,996
$
667,255
$
178,922
$
588
(Continued)
- 161 -
CITY OF PALM DESERT
(CONTINUED)
June 30, 2014
Highlands
Undergrounding
ASSETS:
Receivables:
Accounts
Interest
Prepaid costs
Restricted assets:
$
TOTAL ASSETS
20
CFD
University
$
-
-
11,513
-
-
21,279,414
$
20
$ 21,290,927
$
-
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenues
Deposits payable
TOTAL LIABILITIES
FUND BALANCES:
Nonspendable:
Prepaid costs
Restricted for:
Capital projects
Special programs
Assigned to:
Capital projects
Public facilities
Special programs
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
$
- 162 -
$
-
-
-
20
-
21,290,927
-
20
21,290,927
20
$ 21,290,927
Schedule 12
Assessment
29
$
Capital
Golf
636
$
Capital
Projects
Reserve
Capital
Properties
2,001,227
$
14,402
4,993,818
$
831,420
$
15,368,038
-
16,924
14,959
2,393
500,000
-
-
242,783
8,000,000
-
16,924
26,472
2,393
242,783
500,000
12,765,000
502,075
-
-
-
-
21,960,411
$ 13,236,601
$
831,420
$
50,882,021
$
$
-
$
182,160
947
2,553,000
137,713
167,583
3,041,403
$
502,711
$
2,535,503
$
14,402
$
-
$
58,198
58,198
$
-
$
$
Economic
Development
Total
Other
Capital Projects
Funds
115,070
1,600,000
137,713
1,852,783
-
2,393
-
-
-
2,393
502,711
-
-
-
-
-
21,973,168
1,435,233
502,711
2,474,912
2,477,305
14,402
14,402
10,963,431
420,387
11,383,818
-
10,963,431
420,387
10,130,979
667,255
2,247,772
47,840,618
14,402
$ 13,236,601
502,711
$
2,535,503
$
- 163 -
831,420
831,420
$
831,420
$
50,882,021
CITY OF PALM DESERT
Arts in
Public Places
REVENUES:
Investment earnings
Miscellaneous
$
428,692
6,138
216
Drainage
Facilities
$
8,356
-
TOTAL REVENUES
435,046
8,356
EXPENDITURES:
Current:
General government
Public works
Capital outlay
361,617
-
22,435
-
361,617
22,435
73,429
(14,079)
TOTAL EXPENDITURES
Sale of property
Transfers in
Transfers out
SOURCES (USES)
-
-
-
-
73,429
1,361,804
$
- 164 -
1,435,233
(14,079)
2,132,549
$
2,118,470
Schedule 13
Parks and
Recreation
Facilities
$
Signalization
1,126
-
$
$
Library
10,584
15,837
$
-
$
2
-
Silver Spur
Ranch
$
3
-
1,126
745
26,421
-
2
3
35,031
3,259
41,920
-
334,447
-
960
-
-
-
38,290
41,920
334,447
960
-
-
(37,164)
(41,175)
(308,026)
(960)
2
3
-
-
391,000
-
125,000
-
-
-
-
-
391,000
125,000
-
-
82,974
124,040
2
3
2,669,022
543,215
178,920
585
(37,164)
(41,175)
4,095,413
$
745
-
Buildings
Assessment
District No. 94-3
Merano
4,058,249
170,477
$
129,302
$
2,751,996
$
667,255
$
178,922
$
588
(Continued)
- 165 -
CITY OF PALM DESERT
(CONTINUED)
Highlands
Undergrounding
REVENUES:
Investment earnings
Miscellaneous
$
-
CFD
University
$
49,574
420,590
-
TOTAL REVENUES
-
470,164
EXPENDITURES:
Current:
General government
Public works
Capital outlay
-
46,820
-
TOTAL EXPENDITURES
-
46,820
-
423,344
-
-
SOURCES (USES)
-
-
-
423,344
20
20,867,583
20
$ 21,290,927
Sale of property
Transfers in
Transfers out
$
- 166 -
Schedule 13
Assessment
29
$
Capital
Golf
5,900
-
$
Capital
Properties
$
56
-
$
Economic
Development
434,883
23,888
98,957
$
814
-
Total
Other
Capital Projects
Funds
$
428,692
434,883
134,891
420,590
1,584,269
5,900
1,496,964
56
557,728
814
3,003,325
2,350,187
-
313,386
-
-
804,147
417,686
614,913
80,395
-
884,542
710,994
863,308
2,350,187
618,172
2,350,187
313,386
-
1,836,746
80,395
5,427,203
1,183,578
56
(1,279,018)
(79,581)
(2,423,878)
(2,344,287)
-
(776,000)
-
-
911,001
-
911,001
516,000
(776,000)
-
(776,000)
-
-
911,001
651,001
(2,344,287)
2,846,998
$
27,705
1,469,259
Capital
Projects
Reserve
502,711
$
407,578
56
2,069,727
14,346
12,662,836
14,402
$ 11,383,818
2,477,305
$
(1,279,018)
- 167 -
831,420
(1,772,877)
$
831,420
49,613,495
$
47,840,618
- 168 -
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.
- 169 -
Schedule 14
CITY OF PALM DESERT
COMBINING STATEMENT OF ASSETS AND LIABILITIES
ALL AGENCY FUNDS
June 30, 2014
Agency
ASSETS
Receivables (net of allowance
for uncollectibles):
Assessments
Interest
Prepaid costs
Restricted assets:
TOTAL ASSETS
$
1,784,444
Treasurers
1991 Bond Act
Retiree Service
Stipend Fund
$
$
270,664
4,385,268
Special
Assessment
Funds
$
9,025,537
Totals
$
15,465,913
-
-
456,102
-
87,805,509
2,293
192,427
4,208
87,805,509
2,293
648,529
4,208
-
-
-
7,518,124
7,518,124
$
1,784,444
$
270,664
$
4,841,370
$ 104,548,098
$ 111,444,576
$
1,784,444
$
270,664
$
4,841,370
$ 104,548,098
$ 111,444,576
$
1,784,444
$
270,664
$
4,841,370
$ 104,548,098
$ 111,444,576
LIABILITIES
Deposits
TOTAL LIABILITIES
- 170 -
Schedule 15
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
Balance
July 1,
2013
Additions
Balance
June 30,
2014
Deletions
AGENCY
ASSETS:
$
1,921,644
$
1,183,813
$
1,321,013
$
1,784,444
TOTAL ASSETS
$
1,921,644
$
1,183,813
$
1,321,013
$
1,784,444
$
1,921,644
$
1,183,813
$
1,321,013
$
1,784,444
$
1,921,644
$
1,183,813
$
1,321,013
$
1,784,444
ASSETS:
$
270,664
$
-
$
-
$
270,664
TOTAL ASSETS
$
270,664
$
-
$
-
$
270,664
$
270,664
$
-
$
-
$
270,664
$
270,664
$
-
$
-
$
270,664
ASSETS:
$
2,459,072
-
$
2,704,520
456,102
$
778,324
-
$
4,385,268
456,102
TOTAL ASSETS
$
2,459,072
$
3,160,622
$
778,324
$
4,841,370
$
2,459,072
$
3,160,622
$
778,324
$
4,841,370
$
2,459,072
$
3,160,622
$
778,324
$
4,841,370
LIABILITIES:
Deposits
TOTAL LIABILITIES
TREASURERS 1911 BOND ACT
LIABILITIES:
Deposits
TOTAL LIABILITIES
RETIREE SERVICES STIPEND FUND
LIABILITIES:
Deposits
TOTAL LIABILITIES
See independent auditors' report
(Continued)
- 171 -
Schedule 15
CITY OF PALM DESERT
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
(CONTINUED)
Balance
July 1,
2013
Balance
June 30,
2014
Additions
Deletions
$ 14,013,029
$ 14,320,733
2,293
192,427
4,208
9,410,786
2,801
144,654
4,467
87,805,509
2,293
192,427
4,208
8,679,604
9,195,165
7,518,124
$ 114,735,143
$ 22,891,561
$ 33,078,606
$ 104,548,098
$ 114,735,143
$ 22,891,561
$ 33,078,606
$ 104,548,098
$ 114,735,143
$ 22,891,561
$ 33,078,606
$ 104,548,098
$ 17,901,362
$ 16,420,070
$ 15,465,913
2,293
648,529
4,208
9,410,786
2,801
144,654
4,467
87,805,509
2,293
648,529
4,208
8,679,604
9,195,165
7,518,124
$ 119,386,523
$ 27,235,996
$ 35,177,943
$ 111,444,576
$ 119,386,523
$ 27,235,996
$ 35,177,943
$ 111,444,576
$ 119,386,523
$ 27,235,996
$ 35,177,943
$ 111,444,576
SPECIAL ASSESSMENT FUNDS
ASSETS:
$ 9,333,241
Assessements
97,216,295
Interest
2,801
144,654
Prepaid costs
4,467
Restricted assets:
8,033,685
TOTAL ASSETS
LIABILITIES:
Deposits
TOTAL LIABILTIES
TOTAL - ALL AGENCY FUNDS
ASSETS:
$ 13,984,621
Accounts
97,216,295
Interest
2,801
Due from other governmets
144,654
Prepaid costs
4,467
Restricted assets:
8,033,685
TOTAL ASSETS
LIABILITIES:
Deposits
TOTAL LIABILITIES
- 172 -
$
9,025,537
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2014
This part of the City of Palm Desert’s comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the City’s overall financial health.
Contents
Financial Trends
Theses schedules contain trend information to help the reader understand how the City’s
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant
local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt in
the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City’s financial report relates to the services the City
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
The City implemented
GASB Statement 34 in 2001; schedules presenting government-wide information include information
beginning in that year.
- 173 -
City of Palm Desert
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014
2013
2012
2011
2010
Net Investment in capital assets
Restricted
Unrestricted
466,246,732
140,460,575
105,537,785
465,756,172
132,741,798
103,603,715
475,457,375
119,736,419
107,622,257
302,757,128
147,648,424
107,314,002
304,702,414
143,394,780
110,918,145
Total Governmental Activities Net Position
Business-Type Activities
Restricted
Unrestricted
Total Business-type Activities Net Position
Primary Government
Restricted
Unrestricted
712,245,092
702,101,685
702,816,051
557,719,554
559,015,339
72,009,184
3,920,382
75,929,566
72,892,200
3,682,061
76,574,261
73,375,634
3,901,816
77,277,450
74,043,419
4,068,623
78,112,042
67,902,786
4,391,160
72,293,946
538,255,916
140,460,575
109,458,167
538,648,372
132,741,798
107,285,776
548,833,009
119,736,419
111,524,073
376,800,547
147,648,424
111,382,625
372,605,200
143,394,780
115,309,305
Total Primary Government Net Position
788,174,658
778,675,946
780,093,501
635,831,596
631,309,285
2009
2008
2007
2006
2005
302,507,877
159,157,317
113,883,303
575,548,497
287,536,477
161,360,654
120,089,399
568,986,530
213,685,471
173,335,615
111,386,996
498,408,082
166,229,783
153,342,045
108,077,101
427,648,929
147,410,323
103,701,569
96,445,212
347,557,104
68,263,719
4,686,899
72,950,618
62,814,656
5,211,985
68,026,641
62,956,911
5,294,980
68,251,891
63,233,079
4,459,840
67,692,919
63,588,616
2,948,910
66,537,526
370,771,596
159,157,317
118,570,202
648,499,115
350,351,133
161,360,654
125,301,384
637,013,171
276,642,382
173,335,615
116,681,976
566,659,973
229,462,862
153,342,045
112,536,941
495,341,848
210,998,939
103,701,569
99,394,122
414,094,630
Restricted
Unrestricted
Total Governmental Activities Net Position
Restricted
Unrestricted
Total Business-type Activities Net Position
Primary Government
Restricted
Unrestricted
Total Primary Government Net Position
(3)
(4)
(2)
(1)
(1)The increase for FY 2006 is due to issuance of District Bond, see note #14.
(2)The increase for FY 2007 is due to issuance of District Bond, see note #14.
(3) The increase for FY 2008 is due to Capital Contribution of Hwy 111 & Hwy 74 infastructure totalling $30.19 million from the State of California.
(4) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert.
For more information on the dissolution of the RDA please see note 18 and note 19.
174
City of Palm Desert
2013
2012
19,194,343
29,339,106
7,852,611
8,327,402
21,123,197
237,053
86,073,712
16,375,295
28,614,153
6,944,033
8,752,623
16,316,237
253,381
77,255,722
17,387,080
28,037,453
10,519,663
6,033,019
17,407,751
16,994,265
10,971,707
107,350,938
17,182,987
26,601,668
15,976,383
7,337,403
16,984,334
39,418,936
18,989,167
142,490,878
16,701,292
27,027,643
16,220,066
7,312,679
19,900,937
63,320,650
20,069,813
170,553,080
8,452,001
922,341
9,374,342
8,655,754
984,811
9,640,565
8,471,567
1,031,178
9,502,745
7,946,063
861,786
8,807,849
7,832,690
875,394
8,708,084
95,448,054
86,896,287
116,853,683
151,298,727
179,261,164
Program Revenues
General government
Housing & Redevelopment
Public safety
Public works
Operating grants & contributions
Capital grants & contributions
Total Governmental Activites Program Revenues
2,152,280
6,851,603
10,239,886
729,076
2,180,877
9,745,609
21,086,051
52,985,382
1,833,823
5,308,858
11,147,297
898,222
768,775
5,876,028
7,733,439
33,566,442
1,805,442
5,034,002
9,041,801
728,721
826,251
7,411,902
2,309,678
27,157,797
1,921,573
4,935,422
9,825,352
768,786
762,015
5,675,777
2,255,393
26,144,318
2,127,138
4,986,066
9,431,478
618,440
706,374
6,558,892
2,722,312
27,150,700
Charges for Service:
Total Business-type activites program revenue
7,804,904
1,254,521
94,076
9,153,501
7,494,819
1,215,860
660,685
9,371,364
7,635,352
1,222,971
236,419
9,094,742
7,338,640
1,217,985
8,556,625
7,054,263
988,056
8,042,319
Total Primary Government program revenue
62,138,883
42,937,806
36,252,539
34,700,943
35,193,019
(33,088,330)
(220,841)
(33,309,171)
(43,689,280)
(269,201)
(43,958,481)
(80,193,141)
(408,003)
(80,601,144)
(116,346,560)
(251,224)
(116,597,784)
(143,402,380)
(665,765)
(144,068,145)
39,952,738
358,674
488,319
1,994,506
437,500
-
38,742,060
318,996
3,894,203
437,500
-
73,105,614
1,102,309
791,256
5,838,881
440,000
144,011,578
114,880,586
2,158,556
762,588
3,169,977
(6,046,761)
-
120,872,421
2,916,753
644,603
2,382,208
53,237
-
Expenses
General government
Public safety
(2)
Public works
Payments to other agencies
Total Governmental Activites Expenses
Business-Type Activities:
Total Business-Type Activities
Total primary government expenses
Net (Expense) / Revenue
Governmental Activites
Business-type activites
Total Primary Government Net Expense
General Revenues & Other Changes in Net Assets
Taxes: (Combined/Net Pass-through)
Investment Earnings
Contributions not restricted for specific purpose
Gain(loss) on sales of assets
Miscellaneous
Refunding of special assessment debt
Transfers In / (Out)
Gain on Transfer to Successor Agency
2014
(4)
2011
(3)
2010
(3)
Total Governmental Activites Net Revenues
Investment Earnings
Transfers Out
Total Business-type activites
43,231,737
43,392,759
225,289,638
114,924,946
126,869,222
13,646
(437,500)
(423,854)
42,807,883
3,512
(437,500)
(433,988)
42,958,771
13,411
(440,000)
(426,589)
224,863,049
22,559
6,046,761
6,069,320
120,994,266
62,330
(53,237)
9,093
126,878,315
Change in Net Position
10,143,407
(644,695)
(296,521)
(703,189)
145,096,497
(834,592)
(1,421,614)
5,818,096
(16,533,158)
(656,672)
9,498,712
(999,710)
144,261,905
4,396,482
(17,189,830)
(1) The Increase for FY 2006 is due to Bond Funds received for capital improvement at the District known as University Park and Assessment 29. See note #14.
(2)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(3) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397.
175
City of Palm Desert
Continued
Expenses
General government
Public safety
(2)
Public works
Payments to other agencies
Total Governmental Activites Expenses
Total Business-Type Activities
2009
2008
2007
2006 (1)
2005
17,328,291
27,670,237
16,760,877
7,210,706
22,036,017
39,085,940
20,128,441
150,220,509
21,953,229
26,855,060
24,095,414
8,013,211
27,245,937
38,993,445
20,706,514
167,862,810
11,659,965
24,674,424
28,296,802
4,996,692
37,091,512
35,719,075
20,097,198
162,535,668
13,276,549
21,856,311
21,086,301
4,243,119
13,894,980
36,844,061
12,526,964
123,728,285
13,159,370
18,743,083
13,984,668
4,043,034
10,428,219
30,183,408
12,749,188
103,290,970
7,804,265
852,746
8,657,011
8,167,682
649,548
8,817,230
7,989,321
716,592
8,705,913
6,913,517
646,769
7,560,286
6,636,889
609,298
7,246,187
158,877,520
176,680,040
171,241,581
131,288,571
110,537,157
Program Revenues
General government
Public safety
Public works
Operating grants & contributions
Total Governmental Activites Program Revenues
7,574,059
9,396,435
803,218
701,125
5,582,470
5,048,666
29,105,973
8,454,683
8,808,300
1,190,725
762,440
5,843,010
42,545,033
67,604,191
8,225,112
9,078,214
1,822,685
514,838
7,951,650
57,132,742
84,725,241
8,318,175
7,059,609
8,376,981
1,994,163
491,179
4,930,120
51,780,221
75,890,839
3,945,395
1,442,098
540,028
4,800,413
5,166,856
22,954,399
Charges for Service:
Total Business-type activites program revenue
Total Primary Government program revenue
6,872,935
958,942
7,831,877
36,937,850
8,182,741
934,833
206,609
9,324,183
76,928,374
7,830,863
915,975
278,757
9,025,595
93,750,836
7,442,330
864,447
295,304
8,602,081
84,492,920
6,814,638
898,884
338,478
8,052,000
31,006,399
(121,114,536)
(825,134)
(121,939,670)
(100,258,619)
506,953
(99,751,666)
(77,810,427)
319,682
(77,490,745)
(47,837,446)
1,041,795
(46,795,651)
(80,336,571)
805,813
(79,530,758)
123,650,887
6,161,309
613,648
2,912,180
(5,661,521)
-
129,521,410
15,309,271
7,240,770
6,369,028
1,000,000
-
122,485,939
17,521,600
10,790,417
-
114,826,387
6,197,595
7,025,216
-
96,926,134
4,240,360
17,459
6,347,396
-
127,676,503
159,440,479
150,797,956
128,049,198
107,531,349
87,590
5,661,521
5,749,111
133,425,614
267,797
(1,000,000)
(732,203)
158,708,276
239,290
239,290
151,037,246
113,598
113,598
128,162,796
43,831
254
44,085
107,575,434
6,561,967
59,181,860
72,987,529
80,211,752
27,194,778
4,923,977
11,485,944
(225,250)
58,956,610
558,972
73,546,501
1,155,393
81,367,145
849,898
28,044,676
Total primary government expenses
Net (Expense) / Revenue
Governmental Activites
Business-type activites
Total Primary Government Net Expense
General Revenues & Other Changes in Net Assets
Taxes: (Combined/Net Pass-through)
Investment Earnings
Contributions not restricted for specific purpose
Gain(loss) on sales of assets
Miscellaneous
Refunding of special assessment debt
Transfers In / (Out)
Gain on Transfer to Successor Agency
Total Governmental Activites Net Revenues
Investment Earnings
Transfers Out
Total Business-type activites
Change in Net Position
(1) The Increase for FY 2006 is due to Bond Funds received for capital improvement at the District known as University Park and Assessment 29. See note #14.
(2)City has changed the manner in which it reports RDA expenditures. RDA and Housing expenditures are being reported under "Housing & Redevelopment".
(3) Required payment made to the State of California. For FY 2010 was $25,526,215 and FY 2011 was $5,255,397.
176
City of Palm Desert
Fund Balances of Governmental Funds
(Modified Accrual Basis of Accounting)
General Fund:
2014
2013
2012
2011
2010
9,676,961
4,044,421
63,847,586
Nonspendable
Restricted
Committed
Assigned
Unassigned
7,745,320
4,425,423
66,203,203
7,678,250
3,224,761
65,311,919
2,926,739
3,297,152
69,438,971
2,939,850
4,501,159
66,776,414
Total General Fund
78,373,946
76,214,930
75,662,862
74,217,423
77,568,968
49,319,200
76,725,388
15,649,703
14,144,969
-
39,525,247
69,065,451
20,289,309
17,552,726
-
40,925,918
230,623,054
17,285,733
19,375,999
-
41,050,481
260,163,043
8,871,910
16,432,292
-
All other Governmental Funds:
Nonspendable
Restricted
Committed
Assigned
Unassigned
6,713
114,194,435
21,644,068
24,429,824
-
Total all other Governmental Funds
160,275,040
155,839,260
146,432,733
2009
2008
2007
General Fund:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total General Fund
(5)
(5)
(4)
(1)
(3)
308,210,704
326,517,726
2006
2005
11,629,384
3,654,300
59,066,988
74,350,672
11,897,843
4,406,391
63,515,054
79,819,288
22,199,914
2,998,204
50,916,281
76,114,399
21,231,046
5,114,813
48,004,509
74,350,368
22,039,893
4,465,521
36,793,370
63,298,784
All other Governmental Funds:
Nonspendable
Restricted
Committed
Assigned
Unassigned
23,361,744
296,323,735
4,559,739
23,812,325
(2,392)
23,141,729
299,960,611
18,487
26,512,084
-
35,511,735
318,529,973
9,000
27,344,381
(55,684)
29,781,061
147,669,565
24,509,173
-
25,955,789
114,913,358
24,098,104
-
Total all other Governmental Funds
348,055,151
349,632,911
381,339,405
201,959,799
164,967,251
(2)
(1) RDA made payment on advances from the city.
(2) Start of new Energy program that loans residents funds for energy efficiency.
(3) RDA Low Income Housing fund transfer for Capital Asset replacement to the Housing Authority.
(5) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds. For more informations please
note 10 and 19.
177
City of Palm Desert
Changes in Fund Balances of Governmental Funds
Revenues:
Taxes
Licenses & permits
Rental income
Investment Earnings
Fines & forfeitures
Miscellaneous
Contributions from other government
2014
(4)
Total Revenues
2013
2012
(3)
2011
2010
50,464,511
3,486,220
2,262,907
7,380,744
5,626,850
2,165,020
864,853
231,768
3,539,552
10,749,218
420,590
50,768,200
3,654,337
1,586,796
5,097,892
5,367,630
898,222
373,012
242,568
9,028,698
-
82,901,921
3,232,923
1,041,834
6,637,426
5,146,499
728,721
1,469,142
276,452
6,814,924
-
124,672,062
3,262,163
1,089,543
7,605,282
5,011,205
701,481
3,102,649
310,840
3,095,689
-
130,655,949
3,182,549
782,271
8,700,234
5,023,770
618,440
4,681,243
343,054
3,374,309
-
87,192,233
77,017,355
108,249,842
148,850,914
157,361,819
17,070,816
6,650,178
29,139,735
5,802,941
12,741,764
2,350,187
6,273,822
14,028,252
5,650,666
28,299,876
6,162,449
9,819,591
2,788,676
15,851,883
8,942,097
16,994,265
27,551,113
3,685,334
11,306,021
9,575,227
15,273,085
18,033,576
39,418,936
26,824,434
3,845,901
11,256,499
14,205,889
19,294,744
13,612,720
63,320,650
26,882,787
4,534,505
13,971,797
6,333,521
674,000
242,495
318,000
255,239
9,032,707
10,187,765
22,914,707
18,176,454
15,250,707
19,280,517
80,945,938
67,322,749
113,126,412
169,949,481
182,481,948
6,246,295
9,694,606
(4,876,570)
(21,098,567)
(25,120,129)
4,861,551
(5,424,051)
911,001
11,274,539
(11,010,550)
-
24,453,724
(24,013,724)
(155,895,962)
-
69,995,597
(70,555,597)
-
59,960,402
(59,520,402)
6,361,000
-
Expenditures:
General government
Housing & redevelopment
Pass-through-agreement
Public safety
Parks, recreation & culture
Public works
Contributions to property owners
Capital outlay
Debt service:
Total Expenditures
Excess(deficiency of Revenues
over(under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Extraordinary Gain / (Loss)
Bonds issued/Capital Accreation on bonds (2)
Sale of property
Total Other financing sources (uses)
348,501
263,989
(155,455,962)
(560,000)
6,594,796
9,958,595
(160,332,532)
(21,658,567)
Debt service as a percentage of noncapital
expenditures
1.2%
0.9%
18.6%
26.4%
19.6%
Revenues:
2009
2008
2007
2006
2005
Net Change In Fund Balance
Taxes
Licenses & permits
Rental income
Investment Earnings
Fines & forfeitures
Miscellaneous
Total Revenues
6,801,000
(18,319,129)
134,060,681
2,759,444
1,383,778
9,543,551
5,050,479
803,218
8,322,808
315,284
3,479,370
165,718,613
140,331,466
2,060,791
1,453,177
18,996,692
4,789,421
1,190,725
22,592,392
254,857
20,164,099
211,833,620
138,272,454
929,348
2,691,486
23,499,937
4,513,146
1,822,685
23,985,001
274,365
2,847,802
46,006,292
244,842,516
131,303,483
269,036
2,685,415
11,095,613
4,737,861
1,994,163
9,351,716
310,868
2,470,623
42,979,973
207,198,751
102,020,742
227,848
2,056,554
11,064,037
4,430,915
1,463,850
5,654,986
323,775
3,232,825
130,475,532
General government
Housing & redevelopment
Public safety
Public works
Capital outlay
18,950,675
14,359,340
39,085,941
26,906,123
5,122,900
16,241,963
22,348,953
24,776,785
38,018,819
38,993,445
26,677,743
4,572,695
22,936,721
52,256,552
18,231,351
26,356,634
35,719,075
24,550,431
3,921,063
33,925,623
85,604,515
15,111,294
19,395,693
36,844,061
21,715,373
3,304,867
11,103,943
35,359,139
13,886,346
12,225,779
30,183,408
18,567,736
2,889,789
7,306,791
22,409,057
Debt service:
Total Expenditures
12,778,707
19,424,623
175,219,225
10,767,707
23,376,564
242,377,031
8,209,707
25,814,526
262,332,925
5,607,707
14,072,572
162,514,649
9,788,423
13,537,219
130,794,548
(9,500,612)
(30,543,411)
(17,490,409)
44,684,102
68,088,670
(67,649,434)
59,723,636
(58,723,636)
2,015,000
2,454,236
1,484,806
47,000
2,531,806
249,249,847
(249,249,847)
7,785,375
287,534,894
(101,656,501)
5,230,000
198,893,768
50,225,747
(50,225,747)
3,360,030
3,360,030
48,697,604
(48,697,604)
3,356,369
3,356,369
(7,046,376)
(28,011,605)
181,403,359
48,044,132
3,037,353
15.5%
21.5%
(1)
Expenditures:
Excess(deficiency of Revenues
over(under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Bond Premiums
Bonds issued/Capital Accreation on bonds (2)
Payment refunded bond escrow agent
Sale of property
Total Other financing sources (uses)
Net Change In Fund Balance
Debt service as a percentage of noncapital
expenditures
21.1%
18.0%
19.3%
(319,016)
(1)Bond was issued in FY 2006 and FY 2007. See note #14 for further explanation.
(2) See Note #19 of the Financial Statement, included Capital Accreation of Bonds.
(4) In prior years, City recorded contributions from other governments as miscellaneous revenue.
178
City of Palm Desert
Graphs - Changes in Fund Balances of Governmentals Funds
Total Revenues
$300,000,000
Combined other (1)
$250,000,000
Miscellaneous other (2)
$200,000,000
$150,000,000
$100,000,000
Licenses & permits
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
$0
FY 2014
$50,000,000
Taxes & Special Assessments
Total Expenditures
$300,000,000
$250,000,000
$200,000,000
Debt Expenditures (3)
$150,000,000
Capital outlay
$100,000,000
Public works (4)
Public safety
$50,000,000
(1) Combined Other is a combination of rental income, investment earnings, and charges for services.
(2) Miscellaneous Other is a combination of fines and forefeitures, miscellaneous, contributions from other governments, and contributions from property owners.
(3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement .
(4) Public works is a combination of public works and contributions to property owners.
179
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
$0
General Government
City of Palm Desert
Supplemental - Historical General Fund Revenues
(Including Transfers In)
FY
Revenue Type:
Sales Tax
2014
$
17,258,958
2013
$
16,764,808
2012
$
15,836,953
2011
$
14,680,578
2010
$
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
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
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
Reimbursments
(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
1,932,009
1,961,314
1,398,669
1,475,154
1,567,651
Investment Earnings
State Subventions (1) (3)
Other Revenues (2)
Total General Revenue
$
FY
Revenue Type:
Sales Tax
50,097,427
$
2009
$
14,474,933
49,156,718
$
2008
$
17,195,743
45,063,098
$
2007
$
17,918,375
44,161,178
$
2005
2006 (3)
$
17,776,928
46,068,426
$
15,453,148
7,030,048
8,605,714
8,627,221
8,026,101
7,715,624
Property Tax (3)
8,776,917
9,333,842
8,714,568
8,261,944
4,003,585
Investment Earnings
2,142,915
4,571,147
4,890,891
2,636,050
1,486,830
Transfer In
2,684,568
1,101,610
1,122,224
1,083,589
1,130,231
Franchises
2,818,729
2,887,727
2,907,062
2,580,917
2,439,134
State Subventions (1) (3)
173,448
220,785
267,595
358,954
3,712,256
Building & Grading Permits
950,805
975,296
1,476,290
1,963,733
1,446,524
(4)
3,263,247
4,933,807
2,465,685
1,982,846
1,830,295
Business License Tax
1,258,688
1,311,090
1,231,587
1,242,721
1,154,143
Timeshare Mitigation Fee
949,871
881,350
782,739
661,187
526,271
Plan Check Fees
389,770
562,930
617,999
702,857
701,215
Property Transfer Tax
324,817
604,236
671,806
1,030,412
1,099,665
1,601,947
1,900,529
2,436,664
2,606,760
2,019,035
Reimbursments
Other Revenues (2)
Total General Revenue
$
46,840,703
$
55,085,806
$
54,130,706
$
50,914,999
$
44,717,956
(1) State Subventions is any combination of motor vehicle and off-highway in-lieus, and subventions from state.
(2) Other Revenues is any combination of miscellaneous penalties and interest, permits, grants, parking bails, fees,
sales of maps and publications, vehicle and court fines, rental income and other revenues.
(3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes.
(4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement
will no longer apply.
180
City of Palm Desert
Supplemental Graph - Historical General Fund Revenues
(Including Transfers In)
$70,000,000
$60,000,000
Combined Other (1)
$50,000,000
Interest
Property Tax
$40,000,000
Sales Tax
$30,000,000
$20,000,000
$10,000,000
(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading
permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property
transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants,
incomes, penalties, permits, sales and taxes.
*State Subventions is any combination of trailer coach fees, motor vehicle and off-highway in-lieus, and
subventions from state.
181
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
$0
City of Palm Desert
Supplemental - Historical General Fund Expenditures
(Including Transfers Out)
FY
2014
2013
2012
2011
2010
$ 17,306,342
$ 17,002,291
$ 16,532,894
$ 16,047,991
City Administration (2)
7,413,578
7,180,519
7,670,377
8,023,314
8,556,627
Public Works Administration
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
Street Maintenance
2,806,168
2,353,655
2,446,854
2,522,117
2,565,567
Building Safety
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
$ 47,938,411
$ 48,604,650
$ 43,617,659
$ 47,512,723
2009
2008
2007
2006
$ 16,266,052
$ 14,413,196
$ 13,404,056
$ 12,323,448
10,076,543
9,861,106
8,588,341
8,410,706
7,196,081
3,720,106
3,329,792
3,014,583
2,823,359
2,506,688
Community Promotions
1,798,860
2,532,637
2,402,435
1,687,148
1,616,071
Street Maintenance
2,183,445
2,133,448
1,968,849
1,681,583
1,558,970
Building Safety
2,082,996
3,260,855
3,084,015
2,695,889
2,297,814
Street Resurfacing
1,115,721
3,342,542
1,192,629
1,277,554
1,375,409
Public Works (4)
1,552,242
1,348,012
1,204,079
1,117,417
934,821
13,513,354
11,159,329
17,989,005
7,846,311
7,256,066
$ 52,309,319
$ 51,380,917
$ 52,847,992
$ 39,863,415
Expenditure:
Public Safety (1)
Street Resurfacing
Public Works (4)
Other Expenditures (3)
Total Expenditures
FY
$
$
15,671,095
42,850,130
2005
Expenditure:
Public Safety (1)
Other Expenditures (3)
Total Expenditures
$
$
12,135,671
36,877,591
(1) Public Safety is any combination of animal regulation, police services, and traffic safety expenditures.
(2) City Administration is any combination of community services, auditing, City attorney, City clerk, City council and
City manager, information technology, elections, finance, general services, human resources, insurance, legal special services,
legistlative advocacy, retiree health and unemployment insurance expenditures.
(3) Other Expenditures is any combination of aquisitions, committees, contributions, community
development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center.
(4) Public Works is a combination of curb & gutter,parking lot, storm drain, stripping,corporate yard
equipment, building maintenance, Portola Community center, storm water permit.
182
City of Palm Desert
Supplemental Graph - Historical General Fund Expenditures
(Including Transfers Out)
$60,000,000
Combined Other (1)
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
Public Safety (3)
(1) "Combined Other" is any combination of street maintenance, building safety, street resurfacing and public
works. It may also be aquisitions, centers, committees, contributions, community development,
marketing, interfund transfers, parks, recreation and culture, visitor center.
(2) City Administration is any combination of community services, auditing, City attorney, City clerk, City council and
City manager, information technology, elections, finance, general services, human resources, insurance, legal special services,
legistlative advocacy, retiree health and unemployment insurance expenditures.
(3) Other Expenditures is any combination of aquisitions, committees, contributions, community
development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center.
(4) Public Works is a combination of curb & gutter,parking lot, storm drain, stripping,corporate yard
equipment, building maintenance, Portola Community center, storm water permit.
183
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
$0
184
City of Palm Desert
Supplemental Historical General Revenue and Expenditures Per Capita
FY
Total General Revenue (2)
2014
$
Population (1)
$
FY
Total General Revenue (2)
$
966
$
FY
Total General Expenditures (2)
$
Population (1)
857
$
FY
$
Population (1)
876
1,060
$
945
866
$
844
$
$
50,907
967
42,099,903
$
851
49,831,410
$
1,006
$
876
852
$
52,067
$
$
49,539
(2) Interfund Transfers In/Out and extraordinary loss are not included in total.
Sources: Population figures from State Department of Finance, City of Palm Desert Finance Department
42,499,812
816
2005
38,488,367
$
884
2010
41,833,291
$
43,587,725
49,280
49,111
$
794
2005
(1) Population figures are as of January start of fiscal year.
185
$
2006
43,565,108
41,320,754
52,067
2011
49,752
$
844
$
49,471
$
$
49,539
2007
49,238,257
$
1,065
$
41,469,544
2006
53,008,482
$
2010
49,111
49,752
2008
48,696,321
$
2012
42,155,428
$
51,509
$
$
49,949
2009
$
$
2013
44,183,659
42,822,395
2007
53,984,196
$
50,417
General Expenditures Per
Capita
942
2011
49,471
50,907
2014
$
$
2008
44,156,135
$
47,029,063
$
51,509
General Revenue Per Capita
2012
49,949
2009
Population (1)
General Expenditures Per
Capita
48,723,641
50,417
General Revenue Per Capita
Total General Expenditures (2)
2013
777
35,426,268
49,280
$
719
City of Palm Desert
Assessed Value and Estimated Actual Value of Taxable Property
Fiscal Year
Ended June 30
Residential
Property
Commercial
Industrial
Property
Institutional
Property
Vacant Land
Less: Tax
Exempt
Total Taxable
Assessed Value
Total Direct
Tax Rate
Estimated Actual
Taxable Value (1)
2014
9,043,372,632
2,247,924,054
64,595,519
426,330,424
(297,139,386)
12,919,103,760
1.00000
12,453,921,285
2013
8,621,493,305
2,239,836,432
62,565,263
462,982,950
(300,313,265)
12,513,052,693
1.00000
12,064,845,537
2012
8,694,403,021
2,198,729,088
50,256,665
452,309,984
(288,975,823)
12,564,166,215
1.00000
12,123,771,853
2011
8,982,403,643
2,179,940,065
52,528,676
564,683,270
(288,907,720)
13,132,169,069
1.00000
12,707,884,566
2010
9,210,638,643
2,419,511,046
54,988,887
426,163,878
(274,944,437)
13,747,221,855
1.00000
13,334,233,975
2009
9,376,213,348
2,130,957,579
127,857,455
667,700,041
(255,714,909)
14,206,383,860
1.00000
13,808,181,235
2008
9,160,443,514
1,929,224,481
134,910,803
688,045,095
(242,839,445)
13,491,080,286
1.00000
13,114,105,220
2007
8,931,447,910
1,684,439,737
143,634,396
639,825,947
(248,095,775)
13,057,672,383
1.00000
11,853,797,089
2006
7,913,843,803
1,368,116,067
165,117,456
483,558,265
(247,676,185)
11,794,104,029
1.00000
10,503,193,237
2005
6,775,427,147
1,084,068,343
135,508,543
385,678,161
(239,745,884)
10,423,734,072
1.00000
9,281,846,679
(1) Estimated Actual Taxable Value = Net Taxable Value
Notes: Property Taxes in Riverside County are subject to the State of California's Proposition 13, Jarvis-Gann Initiative which allows reappraisals of real property only
when there is a change in ownership or new construction takes place. Further, the proposition limits property assessment increase to no more than two(2%) percent
annually. Property is assessed at one hundred percent (100%) of its fair market value at the time of new construction or change in ownership.
The tax rate is one (1%) percent of the assessed value.
Source: Riverside County Assessor thru HDL Coren & Cone
186
City of Palm Desert
Historical Net Assessed Taxable Values Citywide
Graph - Assessed Valuation Growth
Net Assessed Valuation - Historical Comparison
FY 2005 to FY 2014
Value in Millions
$20,000
$15,000
$10,000
$5,000
$2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Percent Increase in Assessed Valuation
FY 2005 to FY 2014
20.00%
11.63%
15.00%
12.86%
10.63%
10.00% 6.64%
5.29%
3.22%
5.00%
-0.49%
0.00%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
-5.00%
-3.43%
-4.70%
-4.60%
Historical Major Additions
Annexations
Cook Street Area
Country Club #28
Price Club/Costco
Palm Desert CC #29
Palm Desert Greens
Suncrest
FY
88/89
93/94
93/94
94/95
04/05
04/05
Retail Centers
Town Center Mall
Desert Springs Marriott
One Eleven Town Ctr
Mervyn's Center
Desert Crossing
Lucky's/Albertson Deep Canyon
Remodel 111 Town Ctr (Best Buy)
Gardens on El Paseo
Remodel Westfield Mall (Sears, Barnes & Noble)
Sears Automotive
Lowes Home Improvement
Walmart / Sams Supercenters
Kohls
Golfsmith Extreme
El Paseo Village
Best Buy & Ulta
Remodel Westfield Mall (Dick's/H&M/Restaurants)
PGA Tour Superstore
Source: Riverside County Assessor thru HDL Coren & Cone
187
FY
83/84
86/87
88/89
92/93
95/96
96/97
97/98
98/99
04/05
04/05
05/06
05/06
07/08
08/09
09/10
11/12
12/13
12/13
City of Palm Desert
Supplemental FY 2014 and 2013 Breakdown of Basic 1% Property Tax Rate
Not In Redevelopment Project Area
Taxing Agency
FY 2014 Rate
County General
FY 2013 Rate
28.177327%
28.177327%
County Free Library
2.728242%
2.728242%
County Structure Fire Protection
5.873086%
5.873086%
City of Palm Desert (1)
0.000000%
0.000000%
36.221587%
36.221587%
Desert Community College
7.526714%
7.526714%
Riverside County Reg. Park & Open Space
0.426231%
0.426231%
Riverside County Office of Education
4.094919%
4.094919%
Desert Hospital
1.996808%
1.996808%
Coachella Valley Public Cemetary
0.339927%
0.339927%
Coachella Valley Recreation & Park
2.071624%
2.071624%
Coachella Valley Mosquito & Vector Control
1.369698%
1.369698%
Coachella Valley County Water
2.736607%
2.736607%
Coachella Valley County Water Imp. District 80
2.972906%
2.972906%
Coachella Valley County Water Storm Water Unit
3.464324%
3.464324%
100.000000%
100.000000%
Desert Sands Unified School District
General Purpose Basic 1%
(1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low Property
Tax Cities.
Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041.
188
City of Palm Desert
Property Tax Rates
Direct and Overlapping Property Tax Rates
City Direct
Overlapping Rates
Desert Sands
Unified School
District
Fiscal
Year
Basic
County-wide
Levy
Total
Direct Tax
Rate
Desert
Community
College Dist.
2014
1.00000
1.00000
0.10954
0.01995
0.10000
0.00000
2013
1.00000
1.00000
0.11156
0.01995
0.80000
0.00000
2012
1.00000
1.00000
0.11467
0.01995
0.08000
0.00000
2011
1.00000
1.00000
0.10036
0.01995
0.08000
0.00000
2010
1.00000
1.00000
0.08112
0.01995
0.06000
0.00000
2009
1.00000
1.00000
0.07990
0.01995
0.04000
0.00000
2008
1.00000
1.00000
0.07561
0.01995
0.04000
0.00230
2007
1.00000
1.00000
0.07613
0.01995
0.02080
0.01560
2006
1.00000
1.00000
0.07674
0.01995
0.02080
0.02520
2005
1.00000
1.00000
0.09581
0.01994
0.02080
0.02690
Notes: Proposition 13 limits the ability of the city to raise the property tax rate.
Source: CalMuni Statistics Inc
189
Coachella
Valley Water
District
Coachella
Valley Water
District I.D. 58
City of Palm Desert
Principal Property Taxpayers
Current Year and Ten Years Ago
2014
Taxpayer
WEA Palm Desert
2005
Percentage of Total
Taxable
City Tax Assessed
Assessed Value
Value
Taxpayer
$ 144,890,985
1.16%
Marriott Desert Springs
Marriott Desert Springs
136,022,554
1.09%
Gardens on El Paseo LLC
100,463,843
WVC Rancho Mirage
Percentage of Total
Taxable
City Tax Assessed
Assessed Value
Value
$213,586,558
2.33%
Elisabeth E. Stewart
72,968,401
0.80%
0.80%
Desert Crossing II
66,824,744
0.73%
84,971,489
0.68%
Gardens SPE II
53,836,747
0.59%
Pru Desert Crossing II
LLC
81,024,967
0.65%
Marriott Ownership
Resorts-Timeshares
41,796,910
0.46%
Sinatra and Cook Project
54,874,399
0.44%
Big Horn Development
40,737,303
0.44%
Walmart Real Estate
Business Trust
48,324,981
0.39%
J H Palm Desert
40,106,920
0.44%
Segovia Operations
47,715,576
0.38%
PR XIV
30,507,068
0.33%
Monarch Sevilla Venture
47,671,183
0.38%
CNL Hospitality Partners
L.P
29,674,017
0.32%
Sunrise Spectrum
46,907,800
0.38%
Ashford Park Holdings
26,742,879
0.29%
$ 792,867,777
6.35%
Total
616,781,547
6.73%
Total
$
Note: The estimated property tax revenue stated above is based upon net taxable values, tax ratios and base year values that impact the revenue
calculation. As a result, parcels with the same assessed value that are assigned to different tax rate areas may contribute dissimilar amounts
of total revenue to the City and Redevelopment Agency.
Source: HdL Coren & Cone thru Riverside County Assessor 13/14 and HdL Coren & Cone thru Riverside County Assessor 04/05
190
City of Palm Desert
Property Tax Levies and Collections
Fiscal
Year
Ended
June 30,
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Collected within the
Fiscal Year of the Levy (1) (2) (3)
Taxes Levied
for the
Fiscal Year
3,768,896
4,318,880
4,820,583
5,206,384
5,697,181
5,372,247
5,312,856
5,478,345
5,398,524
5,623,740
Amount
3,501,718
4,243,595
4,575,158
4,734,970
4,760,806
4,686,541
4,560,417
4,366,451
4,913,780
5,048,787
Collections
in Subsequent
(4)
Years
Percentage
of Levy
92.91%
98.26%
94.91%
90.95%
83.56%
87.24%
87.24%
79.70%
91.02%
89.78%
267,178
75,285
245,425
471,414
135,057
282,866
216,378
188,685
1,228,718
497,554
Total Collections to Date
Percentage
(4)(5)
of Levy
Amount
$
$
$
$
$
$
$
$
$
$
3,768,896
4,318,880
4,820,583
5,206,384
4,895,863
4,969,407
4,776,795
4,555,136
6,142,498
5,546,341
(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, 2014.
(5) Includes amounts receivable for tax year 2013-2014 along with prior receivables due for prior tax years.
Source: Riverside County Auditor Controller Office and City of Palm Desert
191
100.00%
100.00%
100.00%
100.00%
85.93%
92.50%
89.91%
83.15%
113.78%
98.62%
City of Palm Desert
Supplemental Top 25 Sales Tax Generators
Graph - Historical Sales Tax Trends
June 30, 2014
Top 25 Sales Tax Generators (1)
Primary Economic Category
ALBERTSON'S FOOD CENTERS
SUPERMARKETS
APPLE STORES
SPECIALTY STORES
ARCO AM/PM MINI MARTS
SERVICE STATIONS
BEST BUY STORES LP
APPLIANCE / ELECTRONICS
CIRCLE K FOOD STORES
SERVICE STATIONS
CONSOLIDATED ELECTRICAL DISTRIBUTORS
BLDG.MATLS-WHSLE
COSTCO WHOLESALE COMPANY
GENERAL STORES
J.C.PENNY COMPANY INC
DEPARTMENT STORES
JW MARRIOTT DESERT SPRINGS
HOTEL / FOOD & BEVERAGE
KOHLS DEPARTMENT STORES
DEPARTMENT STORES
LOWE'S HOME CENTERS
BLDG.MATLS-WHSLE
MACY'S DEPARTMENT STORES
DEPARTMENT STORES
MARSHALL'S STORES
APPAREL STORES
PETE CARLSONS GOLF & TENNIS
SPORTING GOODS
SAKS FIFTH AVENUE
DEPARTMENT STORES
SAM'S CLUB
DEPARTMENT STORES
SEARS-ROEBUCK AND CO
DEPARTMENT STORES
SIMPLOT PARTNERS
SPECIALTY WHOLESALE STORES
STONELEDGE FURNITURE
HOME FURNISHINGS
SUPERIOR POOL PRODUCTS
SPECIALTY WHOLESALE STORES
TARGET STORES
DEPARTMENT STORES
TOMMY BAHAMA
APPAREL STORES/RESTAURANT
TOTAL WINE & MORE
SUPERMARKETS
USA SERVICE STATIONS
SERVICE STATIONS
WAL-MART SUPERCENTER
DEPARTMENT STORES
(1) Listed in Alphabetical Order
Sales and Use Tax Trends FY 2005 - 2014
Millions
% = % Change from Prior Year
$21.0
$19.0
$17.0
15.0%
0.8%
-4.0%
2.9%
5.9%
7.9%
2.1%
-15.8%
$15.0
10.6%
-8.3%
-In Lieu *
$13.0
$11.0
$9.0
14.680
15.836
2014
13.273
2013
14.474
2012
17.195
2011
17.918
2010
17.776
2009
2008
15.453
2007
Amounts
2006
2005
$7.0
16.764
17.258
Note : Current California law prohibits production of individual tax information as an effort not to infringe on proprietary
information, therefore confidential information which is protected by law is not disclosed.
*
The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged.
Source: SBOE Data, MuniServices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert
192
City of Palm Desert
Supplemental Taxable Sales by Category
Last Ten Calendar Years
Sector
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
$ 1,956,390
$ 1,884,720
$ 1,738,840
$ 1,682,350
$ 1,341,860
$ 1,424,880
$ 1,592,070
$ 1,558,590
$ 1,415,100
$ 1,328,310
3,809,305
3,783,700
3,667,800
3,210,230
3,043,960
3,266,730
3,885,830
3,927,380
3,625,120
3,402,770
807,438
767,770
507,340
468,900
405,730
448,800
493,980
538,700
505,560
474,550
2,561,784
2,377,780
2,276,530
1,520,430
1,374,750
1,459,070
1,817,310
1,849,540
1,782,480
1,673,150
988,716
996,960
973,270
971,710
974,150
1,061,660
1,357,750
1,619,970
1,661,090
1,559,210
1,113,345
984,810
882,170
730,230
582,410
865,640
956,330
697,730
732,280
687,370
Automotive
201,898
198,570
182,640
150,940
113,140
103,010
85,960
61,210
62,450
58,620
Service Stations
624,849
638,490
866,370
607,640
664,160
649,120
639,690
594,010
485,640
455,850
Other Retail
1,769,914
1,586,330
1,489,210
1,414,080
1,857,220
2,180,050
2,829,730
2,958,300
2,813,880
2,641,290
Non-Retail (1)
1,498,793
1,455,190
1,262,170
1,822,270
1,856,550
1,822,230
2,194,110
2,221,770
2,185,910
2,051,840
Totals $ 15,332,432
$ 14,674,320
$ 13,846,340
$ 12,578,780
$ 12,213,930
$ 13,281,190
$ 15,852,760
$ 16,027,200
$ 15,269,510
$ 14,332,960
Apparel Stores
General Merchandise
Food Markets
Restaurants
Furniture/Appliance
Bldg.Matls-Wholesale
City Sales Tax Rate
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
(1) Non-retail are a mix of manufacturers, distributors, builders and professionals selling direct to consumers.
Note: The combined sales tax rate for the City of Palm Desert is 7.75%, which represents the State of California mandated tax rate
of 7.25% and 0.5% additional sales tax imposed by the County of Riverside.
The City of Palm Desert receives 1% of all sales tax generated within the city limits.
Source: Muniservices LLC via California State Board of Equalization
193
1.00%
1.00%
1.00%
1.00%
City of Palm Desert
Supplemental Prinicipal Sales Tax Remitters
Current and Ten Calendar Years Ago
2013
Industry
Tax Amount
2004
Percentage
Tax Amount
Percentage
General Merchandise
3,809,305
24.84%
$
3,402,770
23.74%
Other Retail
1,769,914
11.54%
$
2,641,290
18.43%
Non-Retail (1)
1,498,793
9.78%
$
2,051,840
14.32%
Restaurants
2,561,784
16.71%
$
1,673,150
11.67%
Apparel Stores
1,956,390
12.76%
$
1,328,310
9.27%
Furniture/Appliance
988,716
6.45%
$
1,559,210
10.88%
Service Stations
624,849
4.08%
$
455,850
3.18%
1,113,345
7.26%
$
687,370
4.80%
Food Markets
807,438
5.27%
$
474,550
3.31%
Automotive
201,898
1.32%
$
58,620
0.41%
$
14,332,960
Bldg.Matls-Wholesale
Totals $
15,332,432
(1) Non-retail are a mix of manufacturers, distributors, builders and professionals selling direct to consumers.
Note: Current California law prohibits production of individual tax information as an effort not to infringe on proprietary
information, therefore confidential information which is protected by law is not disclosed.
Source: Muniservices LLC via California State Board of Equalization
194
City of Palm Desert
Ratios of Outstanding Debt by Type
Successor Agency
Redevelopment
Bonds
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
a
d
e,f
g
250,485,000
245,000,000
421,819,894
412,694,700
401,601,475
388,972,156
368,261,367
354,527,796
339,786,269
317,717,317
Special
Assessment
Bonds c
26,050,000
73,855,000
122,393,000
115,398,000
114,597,000
117,165,000
113,713,000
110,393,000
106,955,000
94,631,000
Business Type Activities
Note
Payable
858,949
736,242
613,535
490,828
368,121
245,414
122,707
-
Capital
Leases
509,755
170,493
2,181,546
1,582,782
955,141
328,273
1,035,721
2,291,358
1,751,083
1,222,915
Total
Primary
Government
Percentage
of Personal
Income b
277,903,704
319,025,493
547,007,975
530,166,310
517,521,737
506,710,843
483,132,795
112,684,358
108,706,083
95,853,915
Per
Capita b
13.45%
15.21%
25.65%
21.49%
29.80%
20.46%
24.17%
5.86%
4.14%
3.59%
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
a
- The city issued $50.51 million of special assessment bonds in fiscal year end 2007 allocated to three separate assessment districts. In addition the City's
Redevelopment Agency issued $284.37 in bonds of which $183.15 was new debt.
b
- Personal income, population and per capita information provided by John E. Husing, Ph.D. Economics & Politics, Inc ., California Department of Finance,
and U.S Census Bureau.
c
- Special Assessment includes Highlands Undergrounding AD No# 04-01, as of June 30, 2014 the balance was $1.526M.
d
- Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million to fund the
Energy Independence Loan Program. The actual Bond Issuance was for $2.015M. At June 30,2014 the outstanding balance was $1.266M.
e - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011. At June 30, 2014 the outstanding balance was $0.799M.
f - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variiable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
at June 30, 2014 the outstanding Balance was $4.655M.
g -On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies.
which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see note 18
and note 19. This debt is not the City's obligation.
195
5,639
6,440
10,995
10,414
10,047
9,732
9,838
2,278
2,176
1,901
City of Palm Desert
Ratios of General Bonded Debt Outstanding
General Bonded Debt Outstanding
Fiscal
Year
Successor Agency
Redevelopment
Bonds
Special Assessment
Bonds
Percentage of Actual
Taxable Value of
Property
Note: There is no General Obligation Bonds from FY2005 to FY 2014
196
Per
Capita
City of Palm Desert
Supplemental Special Assesment Information
June 30, 2014
District Name\Description
2003 01-01
2003 01-01 Revenue
Revenue Bonds 94Bonds 94-2 Sunterrace
3 Merano
2003 01-01
Revenue Bonds Silver
Spur Ranch
Utility Undergrounding
Community Facilities
District No. 2005-1
(University Park) Special
Tax Bonds Series 2006A
2004 R-Bonds
98-1
Canyons @ Bighorn
Bond Issue Date
06/25/03
06/25/03
06/25/03
02/19/04
05/09/06
Final Maturity Date
09/02/14
09/02/20
09/02/28
09/02/18
09/01/37
4.80%
5.25%
5.375%
5.100%
5.424%
Highest Interest Rate
Bond Issue Amount
$
930,000 $
Matured Principal
$
775,000
Called Principal
$
155,000
Outstanding Bonds (4)
$
Redemption Premium
-
1,153,000
$
2,340,000
$
2,955,000
$
67,915,000
$
708,000
$
665,000
$
1,360,000
$
8,425,000
$
5,000
$
160,000
$
1,305,000
$
6,130,000
$
440,000
$
1,515,000
$
290,000
$
53,360,000
3.00%
Original Parcels
71
Active Parcels
$
-
Reserve Requirement (5)
$
-
Reserve Balance 13/14 (1)
3.00%
3.00%
3.00%
3.00%
121
201
97
37
120
193
12
68
$
51,000
$
151,500
$
30,500
$
4,107,784
$
83,840 $
69,181
$
160,858
$
88,299
$
4,162,013
Principal Due 15/16 (2)
$
80,000 $
75,000
$
80,000
$
65,000
$
1,345,000
Principal Levied 15/16 (3)
$
$
73,982
$
79,857
$
68,642
$
1,345,000
Interest Due 15/16 (2)
$
1,920 $
24,167
$
77,642
$
12,786
$
2,762,784
Interest Levied 15/16 (3)
$
25,909
$
80,955
$
14,659
$
2,794,290
13/14 Delinquency Rate
-
-
$
1.80%
3.06%
1.41%
0.00%
1.30%
Arbitrage Installment Computation Date:
90% Rebate Due
09/02/19
09/02/19
12/17/18
12/16/18
05/08/16
Arbitrage Yield Rate
7.9769%
6.672%
5.1577%
5.8386%
5.3599%
Arbitrage-Amount Owed
-
Continuing Disclosure Last Report
Issued:
-
12/13/2013
2004-2 Section 29
Assessment District
Limited Obligation
Improvement Bonds
District Name\Description
Bond Issue Date
Final Maturity Date
Bond Issue Amount
-
12/13/2013
-
12/13/2013
Series 2008
2004-1 Palm Desert
Community Facilities
Highlands
District No. 91-1
Undergrounding
Special Tax Refunding
Series 2006
Bonds
-
12/13/2013
12/13/2013
Series 2009A (Taxable)
Series 2009B (Taxable)
Energy Independence
Energy Independence
Program Limited
Program Limited
Obligation Improvement Obligation Improvement
Bonds
Bonds
3/29/2007
8/8/2006
12/19/2007
5/31/2009
9/2/2009
9/2/2037
9/2/2036
10/1/2020
9/2/2029
9/2/2029
5.100%
5.150%
4.000%
3.000%
3.000%
29,430,000
3,165,000
10,935,000
2,015,000
1,136,000
Matured Principal
3,350,000
303,000
7,235,000
433,000
204,000
Called Principal
2,305,000
1,373,000
398,000
179,000
23,775,000
1,489,000
1,184,000
753,000
Outstanding Bonds (4)
Redemption Premium
3,700,000
3.00%
3.00%
3.00%
3.00%
3.00%
Original Parcels (Parcels in District)
707
172
1,153
61
49
Active Parcels
626
131
1,060
48
42
$
1,762,360
N/A
$
727,286
N/A
N/A
Reserve Balance 12/13 (1)
$
1,826,785
N/A
$
1,001,822
N/A
N/A
Principal Due 15/16 (2)
590,000
38,000
1,030,000
77,000
46,000
Principal Levied 15/16 (3)
644,466
35,721
1,030,000
77,000
46,000
Interest Due 15/16 (2)
1,172,360
74,871
118,983
34,365
21,900
Interest Levied 15/16 (3)
1,299,188
70,364
137,007
34,365
21,900
13/14 Delinquency Rate
1.75%
7.28%
0.70%
Arbitrage Installment Computation Date:
90% Rebate Due
04/11/17
08/08/16
08/08/16
NA
NA
Arbitrage Yield Rate
5.0134%
5.0691%
3.8681%
NA
NA
Arbitrage-Amount Owed
Continuing Disclosure Last Report
Issued:
12/13/2013
NA
12/13/2013
(1) Reserve Balances are as of 9/30/14.
(2) Amount represents principal and interest to be collected on the FY 14/15 tax roll for Debt Service Payment due in FY 15/16.
(3) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments.
(4) Represents Outstanding Bonds after September 2, 2014 principal payment.
(5) Reserve Requirement as of 9/2/14
Source: Wildan Financial Annual Report
197
1.04%
1.04%
NA
NA
City of Palm Desert
Direct and Overlapping Government Activities Debt
June 30, 2014
2013/14 Assessed Valuation:
DIRECT AND OVERLAPPING TAX ASSESSEMENT DEBT:
Desert Community College District
Palm Springs Unified School District
$
Total Debt 6/30/14
$
316,283,162
282,295,470
317,527,895
% Applicable (1)
19.366%
34.875%
4.107%
4,730,000
54,645,000
28,531,000
100.000%
100.000%
100.000%
City of Palm Desert Community Facilities District No. 91-1
City of Palm Desert Community Facilities District No. 2005-1
City of Palm Desert 1915 Act Bonds
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Riverside County General Fund Obligations
Riverside County Pensions Obligations
Riverside County Board of Education Certificate of Participation
Desert Sands Unified School District Certificates of Participation
City of Palm Desert General Fund Obligation
Coachella Valley Recreation and Park District Certificates of Participation
Coachella Valley County Water District, ID No. 71 Certificate of Participation
12,464,660,882
City's Share of
Debt 6/30/14
$
61,251,397
98,450,545
15,258,651
$
$
692,656,315
334,515,000
2,700,000
66,445,000
4,655,000
2,150,000
0
5.947%
5.947%
5.947%
34.875%
100.000%
27.561%
0.000%
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
4,730,000
54,645,000
28,531,000
262,866,593
$
41,192,271
19,893,607
160,569
23,172,694
4,655,000
592,562
-
$
89,666,703
Less: Riverside County Supported Obligations
552,081
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
$
89,114,622
$
315,105,111
TOTAL CITY DIRECT DEBT
$
4,655,000
TOTAL GROSS OVERLAPPING DEBT
$
662,983,407
TOTAL NET OVERLAPPING DEBT
$
662,431,326
$
$
667,638,407 (2)
667,086,326
OVERLAPPING TAX INCREMENT DEBT:(SUCCESSOR AGENCIES)
$
625,519,706
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
.288-100%
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided
by the district's total taxable assessed value.
(2) Excludes tax revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
Ratios to 2013-14 Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt
Total Direct Debt ($4,810,000)
Gross Combined Total Debt
2.11%
0.04%
5.36%
Net Combined Total Debt
5.35%
Ratios to Successor Agencies Redevelopment Incremental Valuation
Total Overlapping Tax Increment Debt
$
Source: California Municipal Statistics, Inc., San Francisco
198
(7,852,083,610)
4.01%
City of Palm Desert
Legal Debt Margin Information
Legal Debt Margin Calculation for Fiscal Year 2014
Assessed Value
Debt Limit (15% of Assessed Value) (1)
Debt Applicable to Limit:
$ 12,464,660,882
1,869,699,132
General Obligation Bonds
Less: Amount set aside for
repayment of general obligation
debt
1,526,000
-
Total Debt Applicable to Limit
1,526,000
Legal debt margin
$
1,868,173,132
FISCAL YEAR
2005
Debt Limit
1,397,304,489
Total Net debt applicable to limit
Legal debt margin
2006
1,582,592,579
-
1,397,304,489
Total net debt applicable to the limit
as a percentage of debt limit
2007
0%
1,582,592,579
0%
2008
2009
2010
2011
2012
2013
2014
1,783,572,979
1,971,408,152
2,076,172,690
1,999,731,410
1,969,825,360
1,884,624,932
1,811,620,824
1,869,699,132
2,783,000
2,748,000
2,702,000
1,719,000
1,658,000
1,624,000
1,589,000
1,526,000
1,780,789,979
1,968,660,152
2,073,470,690
1,998,012,410
1,968,167,360
1,883,000,932
1,810,031,824
1,868,173,132
0.16%
0.14%
0.13%
(1) Section 43605 of the California Government Code.
Source: California Municipal Statistic, Inc. San Francisco
199
0.09%
0.08%
0.09%
0.09%
0.08%
City of Palm Desert
Pledged-Revenue Coverage
Special Assessment Bonds
Special
Assessment
Collections
Fiscal
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
a
a
d
e
f
2,878,134
2,788,698
4,444,967
6,245,888
8,486,467
6,304,563
9,695,868
8,822,163
9,524,786
14,895,214
Tax Increment
Debt Service
Principal
2,073,000
1,645,000
1,972,000
1,635,000
2,816,000
3,793,000
3,452,000
3,332,000
3,786,896
12,324,000
Interest
c
f
1,483,245
1,378,548
3,464,355
5,414,793
5,666,827
5,515,677
5,595,543
4,897,651
5,255,558
4,954,432
Coverage
Debt Service
Special
Assessment
Collections
0.8093
0.9223
0.8176
0.8860
1.0004
0.6773
1.0717
1.0720
1.0533
0.8621
23,585,980
24,065,285
28,675,094
41,978,187
33,095,785
33,292,785
39,400,572
32,941,958
33,473,418
38,444,447
b
Principal
g
g
g
5,260,000
5,485,000
7,704,000
10,610,000
12,610,000
14,145,000
22,240,000
15,290,000
16,315,000
23,650,000
Interest
12,366,733
12,409,968
16,434,841
21,402,246
20,043,623
19,516,455
18,767,205
17,651,958
17,158,418
14,794,447
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
a
- The city issued $50.51 million of special assessment bonds in fiscal year end 2007, and an additional $17.915 in fiscal year end 2008 from the same district.
The RDA issued $284.37 million of debt of which $183.15 was new debt.
b
- Tax increment bonds are backed by property tax increment based on calculation provided by the Riverside County tax assessor office.
Additional information on tax increment can be found in the notes to the financial statements.
c -
The 1997 91-1 Bonds was refunded in full on April 1, 2008, with Communities Facilities District no. 91-1 Improvement Special Tax Refunding Bonds
Additional principal on note 14 reflects the total principal paid along with the refunded portion.
d - The City issued $2.015 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2009-2010 with the first interest payment paid on March 2, 2010.
e - The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable)
The special assessment collection will commence during the fiscal year 2010-2011
In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease
Revenue Bonds, Series 2009(Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2
The first principal payment was paid on September 2, 2010.
f
g-
-
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 caled during on September 2, 2014.
The total amount payable for the bonded obligations is disbursed by the State of Califonia Department of Finance to the City of Palm Desert Successor Agency.
The annual collection equal the annual obligations.
200
Coverage
1.338
1.345
1.188
1.311
1.013
0.989
0.961
1.000
1.000
1.000
City of Palm Desert
Demographic & Economic Statistics
Last Ten Calendar Years
Calendar
Year
End
City
Population
Percentage
Increase
(Decrease)
Personal
Income CY a b
Per Capita
City
Riverside
County
Personal Unemployment
Income CY
Rate c
Population
Percentage
Increase
(Decrease)
County
Unemployment
Rate c
1.10%
8.40%
2014
50,417
2013
49,949
1.0%
$
2,627,948,478
$
52,613
6.00%
2,255,059
1.23%
10.20%
2012
49,471
0.7%
$
2,589,111,801
$
52,336
7.74%
2,227,577
0.44%
11.99%
2011
49,111
-5.7%
2,550,849,065
51,940
8.67%
2,217,778
3.66%
14.44%
2010
52,067
1.1%
2,513,151,788
48,268
8.8%
2,139,535
1.51%
14.65%
2009
51,509
1.2%
2,476,011,613
48,069
6.8%
2,107,653
0.93%
11.46%
2008
50,907
2.3%
2,439,420,309
47,919
4.1%
2,088,322
6.91%
8.6%
2007
49,752
0.4%
2,132,710,348
42,867
3.6%
2,031,625
4.01%
6.0%
2006
49,539
0.5%
2,097,434,084
42,339
2.9%
1,953,330
4.07%
5.0%
2005
49,280
10.0%
2,066,437,521
41,933
3.1%
1,877,000
5.64%
5.4%
0.9%
$
2,667,367,705
$
52,906
4.90%
2,279,967
a - Personal income, population and per capita information provided by John E. Husing, Ph.D. Economics & Politics Inc .,
Californa Department of Finance., and U.S. Census Bureau.
b - Personal Income estimated based on average growth rate of previous four years. The growth rate factor used was 1.5%. Income data will be
updated once the actual data is available.
c - Unemployment rate for fiscal year 12/13 is based on annual information from State of California Employment Development Department
Labor Market Information Division (not seasonally adjusted)
Sources: State Department of Finance, U.S. Dept of Labor, John E. Husing, PhD, Economics & Politics, Inc, State Employment Development Department
201
City of Palm Desert
Principal Employers
Current and Ten Years Ago
2013 2
Percentage of
Total City
Employees Rank
Employment 3
Employer
JW Marriot-Desert Springs
Resort & DS Villas
Universal Protection Services
Securitas-Security Service
USA
Avida Caregivers-P.Desert
Sunshine Landscape
Bighorn Golf Club
Costco
Westin-Desert Willow
Time Warner Cable
Marriott Shadow Ridge
Totals
2,304
1
8.15%
1,500
2
5.31%
700
3
2.48%
550
4
8.15%
500
5
1.77%
250
6
0.88%
250
7
0.88%
248
8
0.88%
236
9
0.83%
208
10
0.74%
6,746
30%
Employer
Totals
2004 1
Percentage of
Total City
Employees Rank
Employment
-
(1) The information for 2004 is not available, tracking for this data began in 2006
(2) As of June 30, 2013
(3) Percentage of Total City Employment data used was Calendar Year end 2013
Sources: InfoUSA.com - Federal and State Government not included, John E. Husing, PhD, Economics & Politics, Inc,
202
0%
City of Palm Desert
Supplemental Miscellaneous Statistics
1-Jun
City/ Municipal Government
June 30, 2014
Form of Government:
Council - City Manager/Charter City
Date of Incorporation:
November 26, 1973
Number of Employees:
112 Full-time Employees
Size of City:
25.5 Square Miles
Geographic Location:
Located 117 miles east of Los Angeles and 515 miles
south of San Francisco.
Streets:
170 paved street miles
Number of Business Licenses:
8,582 active business licenses
Number of Hotels & Rooms:
15 hotels, 2,202 rooms
CONTRACT SERVICES:
Police Department
Contract with Riverside County Sheriff - 74 positions plus 31 support staff
Fire Department
Contract with Riverside County/State Fire 62 positions plus 6 Fire Prevention staff
Animal Control
Water & Sewer
Riverside County Animal Services
Coachella Valley Water District
Trash Collection
Burrtec - Waste Management
Electric
Southern California Edison
Gas
Southern California Gas
Telephone
Verizon
Airport
Palm Springs International Airport
Public Education
Elementary School (grades K - 5)
Middle School
(grades 6 - 8)
High School
(grades 9 - 12)
Community College - College of the Desert
CSUSB - Palm Desert Campus
UCR - Palm Desert Graduate Center
4
1
1
1
1
1
Insurance Coverage
General Liability Coverage
(Excludes Earthquake & Flood)
Special Events
Worker's Compensation
Property Insurance
Calif. Joint Powers Insurance Authority $50 Million/Event
Excess Coverage: American Guarantee & Liab. Insurance
Calif. Joint Powers Insurance Authority $1 Million
Calif. Joint Powers Insurance
Robert Driver
$5 Million
Based on Prop. Value
Health Insurance
Medical
California PERS; choice of PPO, HMO, Kaiser
Dental
Delta Dental
Vision
Disability Insurance
Vision Service Plan
Disability - Standard Insurance Company
Life
Retirement
Standard Insurance Company
California PERS - Public Employees' Retirement System
Source: City of Palm Desert
203
City of Palm Desert
Full-time Equivalent City Government Employees by Function / Program
2014*
Function / Program
General Government
City
#
2013*
#
2012*
#
2011*
2010
2009
2008
2007
2006
2005
34
33
26
31
31
49
49
51
53
52
Economic Dev & Housing #
13
12
17
24
25
19
19
19
19
19
Public Safety
Police & Fire (1)
25
173
24
157
24
162
25
155
26
151
35
148
35
146
35
143
28
129
28
123
Public Works
40
38
40
47
49
53
52
44
49
39
285
264
271
284
284
318
315
310
289
277
Totals
(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals
to provide services.
Contracted services include: Police and Fire protection through the County of Riverside, Cal-Fire, animal control, health services,
legal services and landscape maintenance.
* As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013.
#
On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all
Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriff's Department
204
City of Palm Desert
Operating Indicators by Function / Program
Last Nine Fiscal Years
Function / Program
2014
2013
2012
2011
2010
2009
2008
2007
2006
33
196
477
515
473
617
489
447
420
57,935
26,424
52,131
24,862
49,205
23,588
53,108
22,867
51,483
20,591
58,198
22,155
67,940
23,798
73,467
24,089
71,820
24,359
1,348
386
5,284
8,235
106
2,552
5,552
24,830
986
198
5,080
7,907
104
3,048
4,548
19,107
1,012
569
6,216
7,151
101
5,235
3,448
14,749
1,134
332
8,360
7,720
107
4,651
3,711
14,069
1,342
933
10,200
7,772
104
4,825
3,230
14,080
1,446
1,278
9,162
7,149
119
8,248
3,637
18,040
1,550
770
5,929
6,908
154
4,267
4,012
26,401
1,430
694
6,875
6,785
241
5,934
5,813
33,215
543
1,374
4,527
6,600
928
1,845
5,683
29,925
34
23
60
5
8
13
17
9
11
6,548
247
50,204
43,545
2,635
128
53,062
48,663
3,682
266
69,240
45,909
6,050
286
30,298
4,329
6,281
226
59,986
6,149
133
55,954
5,949
133
112,540
4,510
84
97,339
2,967
81
92,083
General Government
Business License Inspections
Contracted Services - Burrtec Waste
(1)
Refuse Collected (tons)
Recyclables Collected
Public Safety
Physical Arrests
Parking Violations
Traffic Violations
Emergency Responses-Fire Department
Fires Extinguished
Fire Inspections
Building Permits Issued
Building Inspections Conducted
Public Works
Street Resurfacing (miles)
(3)
Athletic Field Permits Issued
Amphitheater / Pavilions Permits Issued
Community Center Admissions
Aquatic Center Admissions
(2)
-
Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services,
(2) Aquatic Center operations began in June 2011, managed by the YMCA.
(3) New methods of street resurfacing have improved efficiency, therefore equaling more miles resurfaced.
Note: The City of Palm Desert chose to implement this schedule retroactively.
Governments are encouraged, but not required, to implement retroactively. Ultimately, this schedule will include ten years.
Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste and The YMCA.
205
-
-
-
-
City of Palm Desert
Capital Asset Statistics by Function / Program
Last Nine Fiscal Years
Function / Program
2014
2013
2012
2011
2010
2009
2008
2007
2006
30
36
36
51
51
54
69
61
71
1
1
26
10
1
1
28
10
1
0
31
10
1
0
31
10
1
2
26
10
1
2
30
10
1
2
29
7
1
2
29
5
1
2
28
4
General Government
Contracted Services (1)
Collection trucks
Public Safety - Police & Fire
Police Stations
Police Sub Stations
Patrol Units-Cars
Patrol Units-Motorcycles
3
3
3
3
3
3
3
3
3
4 plus 1 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved 4 plus 2 Reserved
4 plus 3 Reserved 4 plus 1 Reserved 4 plus 1 Reserved 3 plus 1 Support 3 plus 1 Support 3 plus 1 Support 3 plus 1 Support 3 plus 1 Support 3 plus 1 Support
3
3
3
3
3
3
3
3
3
Fire Stations
Fire Trucks
Ambulance
Fire Prevention Pick-ups
Public Works
Streets (miles)
Traffic Signals
170
98
170
98
174
98
159
97
159
99
159
99
159
99
154.11
87
154.11
85
201
13
16
8
9
11
10
8
2
2
1
201
13
16
8
9
11
10
8
2
2
1
201
13
16
8
9
11
10
8
2
2
1
201
13
16
8
9
11
10
8
2
2
1
201
13
16
8
9
11
10
8
2
2
212
14
16
9
9
11
10
8
2
2
200
13
9
11
7
9
10
10
2
2
200
13
8
11
7
9
10
10
2
2
200
11
7
8
5
6
8
6
2
1
50,322
86%
50,322
88%
50,322
83%
50,322
90%
50,322
97%
50,322
98%
50,322
100%
50,322
100%
50,322
100%
9
4
4
8
4
5
10
5
3
10
7
4
10
7
6
11
5
7
11
7
6
10
6
8
9
6
8
31,921
3,294
8,025
7,082
31,321
4,467
8,513
6,021
32,021
5,215
4,310
8,776
32,696
5,663
7,350
4,613
34,617
4,735
10,212
758
34,617
4,735
10,212
758
34,402
6,188
9,732
0
33,298
5,708
11,316
0
32,457
5,708
10,836
1,321
2
36
172
39,000
2
36
172
39,000
2
36
172
39,000
2
36
172
39,000
2
36
160
33,000
2
36
160
33,000
2
36
160
33,000
2
36
160
33,000
2
36
160
33,000
45,841
43,160
45,645
38,669
45,005
41,666
44,745
39,178
45,988
37,146
46,041
34,899
46,688
43,898
47,263
41,182
46,602
43,725
89,001
84,314
86,671
83,923
83,134
80,940
90,586
88,445
90,327
Acreage
Total Parks
Playgrounds
Baseball/softball diamonds
Soccer/football fields
Basketball Courts
Tennis Courts
Volleyball Courts
Community Centers
Skateboard Parks
Aquatic Center
(2)
Commercial Office Space
(Parkview Office Complex)
Leaseable Space (square feet)
Occupancy Rate
Number of Tenants by Type
Government (State, local regional)
Non-Profit
Private
Square Footage lease by tenant
Government (State, local regional)
Non-Profit
Private
Vacant
Municipal Golf Course
(Desert Willow Golf Resort)
Courses - Fire Cliff and Mountain View
Holes
Golf Carts
Clubhouse square footage
Rounds per Course
Fire Cliff
Mountain View
Total Annual Rounds
Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services,
(2) Aquatic Center operations began in June 2011
Note: The City of Palm Desert chose to implement this schedule retroactively.
Governments are encouraged, but not required, to implement retroactively. Ultimately, this schedule will include ten years.
Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection,
City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste
206
Supplemental Successor Agency to Redevelopment Statistical Section
City of Palm Desert, California
Note: This section is not required by GASB No. 44, however, City believes that statistical
information is beneficial to the reader.
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.
207
208
City of Palm Desert
Y
10
MONTEREY AVE
DINAH SHORE DR
HW
Redevelopment
Agency
Project Areas
IN
TE
RS
T
COOK ST
PORTOLA AVE
GERALD FORD DR
AT
E
HW
Y
FRANK SINATRA DR
FRANK SINATRA DR
10
TA
M
AR
ELDORADO DR
COOK ST
PORTOLA AVE
Project Area No. 3
1991
HOVLEY LN E
Project Area No. 4
1993
A
VE
COOK ST
DEEP CANYON RD
PORTOLA AVE
SAN PABLO AVE
Project Area No. 1
Original
1975
MONTEREY AVE
TOWN
CENTER
WAY
PARK VIEW DR
OASIS CLUB DR
MONTEREY AVE
HOVLEY LN E
MAGNESIA FALLS DR
RO
W
COUNTRY CLUB DR
COUNTRY CLUB DR
HOVLEY LN W
IS
K
DR
Project Area No. 2
1987
WASHINGTON ST
AT
E
WARNER TRL
IN
TE
RS
T
CALIFO RN I A
FRED WARING DR
FRED WARING DR
STATE HWY 111
EL PASEO
PORTOLA AVE
SH A
DO
W
MOUNTAIN DR
GRAPEVINE ST
FAIRWAY DR
Project Area No. 1 - Original (1975)
HAYSTACK RD
Project Area No. 1 - Added Territory (1982)
VE
Project Area No. 2 (1987)
A
TO L A
POR
Project Area No. 1
Added Territory
1982
City Limits
STA
TE H
WY
74
ME SA VIEW D R
0
0.5
1
Miles
January
July, 2004 2014
209
2
City of Palm Desert
Project Area Statistics
June 30, 2014
Description
Date Project Area was Established
Most Recent Amendment Date
Redevelopment Plan Limitations:
Effectiveness of Plan
(Project Duration)
Repayment of Indebtedness
Last Date to incur indebtedness
Eminent Domain
Tax Increment Limit (1,2)
Bonded Debt Limits (1)
Types of Area in Project
Acreage Size of Project Area
$
RDA 1
Original
RDA 1
Annex
RDA 2
RDA 3
RDA 4
July 16, 1975
November 25, 1981
July 15, 1987
July 17, 1991
July 19, 1993
December 9, 2004
December 9, 2004
December 9, 2004
December 9, 2004
December 9, 2004
July 16, 2016
November 25, 2022
July 15, 2028
July 17, 2032
July 19, 2034
July 16, 2026
November 25, 2032
July 15, 2038
July 17, 2042
July 19, 2044
Eliminated
Eliminated
Eliminated
Eliminated
Eliminated
July 16, 1987
November 25, 1993
July 15, 1999
July 17, 2003
July 19, 2005
758,000,000
$
500,000,000
none
$
200,000,000
R, C, P
R, C, P
580
$
800,000,000
$
1,639,897,172
$
150,000,000
$
307,480,720
R, C, P, O
5,240
$
360,000,000
$
600,000,000
$
100,000,000
$
135,000,000
R, I, C, P
2,927
R, I, C, P
764
R = Residential, C= Commercial, P= Public Facilities, I= Industrial, O= Other
(1) Top figures are unadjusted limits and bottom figures are adjusted limits per Consumers Price Index set by the Bureau of Labor Statistics for RDA 2.
(2) Uncertainty exists with regards to TI Limit relative to Dissolution Law.
Source: Successor Agency to the Palm Desert Redevelopment Agency
210
2,260
City of Palm Desert
Redevelopment Agency
Tax Allocation Bond Issue Information
June 30, 2014
PROJECT AREA #1
DESCRIPTION
Years
Bond Issue Date
Final Maturity Date
Bond Issue Amount
Outstanding Bond Amount
Call Premium
Bond Insurer
Reserve Balance (1)
Called Bonds
Principle due 14/15
Interest Due 14/15
Arbritage Yield Rate
Arbritage-Amount Owed
Arbritage Five Year Due Date:
DESCRIPTION
Years
Bond Issue Date
Final Maturity Date
Bond Issue Amount
Call Premium
Bond Insurer
Reserve Balance (1)
Called Bonds
Principle due 14/15
Interest Due 14/15
DESCRIPTION
Years
Bond Issue Date
Final Maturity Date
Bond Issue Amount
Call Premium
Bond Insurer
Reserve Balance (1)
Called Bonds
Principle due 14/15
Interest Due 14/15
$22,070,000
$
$
$
$19,000,000
28
03/13/02
04/01/30
5.100%
22,070,000 $
22,070,000 $
0 - 2.00%
MBIA
2,804,344
(1)
$
1,114,665
5.2939%
-
$24,945,000
27
08/05/03
04/01/30
5.000%
19,000,000 $
12,660,000 $
0.00%
MBIA
950,000
(1)
$
0
633,000
4.8571%
-
21
06/24/04
04/01/25
5.000%
24,945,000 $
15,285,000 $
0.00%
AMBAC
2,430,750
(1)
$
1,235,000
728,588
4.7961%
-
04/13/17
08/05/18
$17,310,000
Tax Allocation Revenue
Bonds
20
07/17/02
08/01/22
5.000%
$
17,310,000
$
9,550,000
0 - 2.00%
MBIA
1,324,750
(1)
$
870,000
436,113
4.7043%
-
PROJECT AREA #2
$15,745,000
Bonds
30
03/26/03
08/01/33
5.00%
$
15,745,000
$
15,745,000
1 - 2.00%
MBIA
769,006
(1)
$
769,006
4.9502%
-
$67,600,000
Bonds
30
07/25/06
08/01/36
6.10%
$
67,618,213
$
49,732,661
0.00%
AMBAC
5,309,825
(1)
$
1,759,239
2,394,399
5.2580%
-
07/17/17
03/26/18
07/25/16
$11,020,000
Bonds
30
03/01/98
10/01/28
5.00%
$
11,020,000
$
7,805,000
0 - 2.00%
MBIA
768,020
(1)
$
360,000
394,973
5.2271%
-
06/24/19
PROJECT AREA #4
$15,695,000
Tax Allocation
Revenue Bonds
30
11/28/01
10/01/31
4.80%
$
15,695,000 $
$
12,540,000 $
0 - 2.00%
MBIA
482,890
(1)
$
$
375,000
584,038
4.9464%
-
10/01/17
11/28/16
(1) A surety bond was issued by MBIA Insurance, future reserve balance's will be zero.
Source: City of Palm Desert and Successor Agency to the Palm Desert Redevelopment Agency
211
$62,300,000
Tax Allocation
Revenue
$19,273,089
Tax Allocation
Revenue
28
07/25/06
10/01/34
5.56%
19,273,089
16,208,988
0.00%
MBIA
3,740,843
(1)
718,718
599,477
5.1111%
07/25/16
24
07/06/06
04/01/30
5.820%
62,320,000 $
43,760,000 $
0.00%
MBIA
13,117,662
(1)
$
2,905,000
2,262,482
4.7182%
07/06/16
$32,600,000
Tax Allocation
Revenue
Bond
11
01/09/07
04/01/18
5.000%
32,600,000
13,870,000
0.00%
MBIA
13,116,979
(1)
3,230,000
686,000
3.8374%
01/09/17
PROJECT AREA #3
$15,050,000
$4,745,000
Tax Allocation
Revenue
30
35
08/05/03
07/25/06
04/01/33
04/01/41
5.13%
6.10%
$
4,745,000 $
15,059,526
$
3,570,000 $
14,028,715
2.00%
0.00%
MBIA
MBIA
297,953
1,034,250
(1)
(1)
$
120,000
285,721
173,272
578,154
4.9358%
5.3626%
08/05/18
07/25/16
HOUSING FUND
$12,100,000
$86,155,000
Tax Allocation
Revenue
Bonds
30
20
09/05/02
02/07/07
10/01/31
10/01/27
4.90%
5.00%
$
12,100,000 $
86,155,000
$
9,130,000 $
61,445,000
1 - 2.00%
0.00%
MBIA
MBIA
767,625
7,887,224
(1)
(1)
$
$
330,000
5,505,000
432,848
2,813,563
4.8290%
4.1830%
09/05/17
02/07/17
City of Palm Desert
FY 2013/2014
Breakdown of Basic 1% Property Tax Levy Rates
Redevelopment Project Areas
Rate
Taxing Agency
County General
County Library
County Fire
City of Indian Wells Annex
Supervisor Road District 4
City of Palm Desert
Rancho Mirage Library
Rancho Mirage Fire Asmt.
Palm Springs Unified School District
Desert Community College
County Superintendent of Schools
Riverside County Reg Park & Open
Space
Coachella Valley Public Cemetary
Palm Springs Public Cemetary
Desert Hospital
Coachella Valley Mosquito & Vector
Control
Coachella Valley Recreation & Park
Coachella Valley Water District
Coachella Valley Resource Cons.
Coachella Valley Imp District 80
Coachella Valley Water District Storm
Water Unit
ERAF RDV
General Purpose Basic 1% Rate
PA 1 Original
PA 1 Annex
PA 2
PA 3
PA 4
28.39555017%
28.30636343%
26.07500477%
25.3381733%
21.91559782%
2.74936671%
2.89344072%
2.94849765%
2.8164746%
2.82910937%
5.91856279%
6.22871398%
6.34723228%
6.0630303%
6.09022556%
0.00000000%
0.00000646%
0.00000000%
0.00000000%
0.00000000%
0.00000000%
-0.00028715%
0.00000000%
0.00000000%
0.00000000%
0.00000000%
2.26269285%
5.41874681%
4.54131998%
8.68225230%
0.00000000%
0.01391895%
0.00000000%
0.00000000%
0.00000000%
0.00000000%
0.02996333%
0.00000000%
0.00000000%
0.00000000%
36.50206473%
36.97242097%
22.83126163%
37.39307364%
37.56077766%
0.00000000%
0.00000000%
11.87710358%
0.00000000%
0.00000000%
7.58499545%
8.05201960%
8.13436162%
7.77014204%
7.80499182%
4.12662663%
4.38071178%
4.42550982%
4.22735351%
4.24631734%
0.42951122%
0.42814638%
0.39442809%
0.38327628%
0.44198776%
0.34255805%
0.30233281%
0.21426261%
0.35091592%
0.35249265%
0.00000000%
0.000282067
0.07043009%
0.00000000%
0.00000000%
2.01226892%
1.26036077%
1.73763754%
1.06447601%
0.00000000%
1.38030289%
1.46529084%
1.48027487%
1.41399102%
1.42033627%
2.08766459%
1.84251927%
1.30578954%
2.13862054%
2.14821440%
2.75779659%
2.92825561%
2.95753818%
2.82511143%
2.87534753%
0.00000000%
0.02171665%
0.03791597%
0.03110480%
0.03637874%
2.22158244%
0.97420925%
0.00000000%
0.06657408%
0.00356502%
3.49114882%
1.60899686%
3.74400496%
3.57636253%
3.59240576%
0.00000000%
0.00000000%
0.00000000%
0.00000000%
0.00000000%
100.00000000%
100.00000000%
100.00000000%
100.00000000%
100.00000000%
Source: Successor Agency to the Palm Desert Redevelopment Agency, Tax Increment Calculations & County of Riverside
212
213
City of Palm Desert
Historical Net Assessed Taxable Values
Redevelopment Project Area # 1 - Original
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
Less Home Owner Value
Less B Inv. Value
$
Total Net Assessed Taxable Secured Value
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
2012
2011
2010
248,856,920 $
616,377,829
4,011,017
0
(2,880,165)
(42,000)
249,394,404 $
627,764,488
3,908,602
0
(1,999,569)
(42,000)
244,450,814 $
626,574,093
2,933,226
0
(1,960,491)
(56,000)
0
246,861,736 $
610,067,877
3,127,559
0
(895,957)
(61,600)
0
249,715,896
613,769,221
3,399,575
0
(898,089)
(49,000)
0
866,323,601
879,025,925
871,941,642
859,099,615
865,937,603
99
63,729,112
43,573,580
0
(223,222)
121,431,345
Total Net Assessed Taxable Value
$
FY
$
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
987,754,946
$
986,105,494
99
57,617,429
48,607,315
0
(63,954)
108,413,963
$
980,355,605
99
63,627,182
53,892,307
0
(68,471)
106,160,889
$
965,260,504
117,451,117
$
983,388,720
2009
2008
2007
2006
2005
241,759,729 $
610,061,698
5,000,717
0
(455,200)
(70,000)
0
233,208,647 $
584,395,005
4,856,393
0
(1,570,949)
(63,000)
0
216,759,847 $
552,604,613
6,825,265
0
(760,295)
(70,000)
0
209,051,600 $
515,092,610
7,420,696
0
(610,338)
(70,000)
0
193,066,855
468,555,559
4,909,559
0
(730,777)
(70,000)
0
856,296,944
820,826,096
775,359,430
730,884,568
665,731,196
1,245
60,185,535
57,684,012
0
(56,785)
129,735,443
$
99
60,147,367
48,331,227
0
(64,730)
107,079,569
1,267
69,008,584
60,792,341
0
(66,749)
Total Net Assessed Taxable Unsecured Value
2013
1,386
65,066,506
56,574,308
0
(210,855)
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
Less B Inv. Value
2014
986,032,387
1,220
56,536,963
57,404,440
0
(32,652)
117,814,007
$
(1) Secured values include State assessed data.
Source: County of Riverside, County Auditor Controller, Assessed Valuations
214
938,640,103
396
48,736,306
47,480,402
0
(32,573)
113,909,971
$
889,269,401
156,701
51,133,704
51,093,465
0
(39,043)
96,184,531
$
827,069,099
102,344,827
$
768,076,023
City of Palm Desert
Change in Taxable Values
Redevelopment Project Area # 1 - Original
2014 versus 2013
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
2014
2013
% Change
$
248,856,920
$
249,394,404
-0.2%
$
616,377,829
$
627,764,488
-1.8%
$
4,011,017
$
3,908,602
2.6%
$
0
$
0
0.0%
$
(2,880,165) $
(1,999,569)
44.0%
$
(42,000) $
(42,000)
0.0%
$
866,323,601
$
879,025,925
-1.4%
$
1,386
$
99
$
65,066,506
$
63,729,112
2.1%
$
56,574,308
$
43,573,580
29.8%
$
0
$
0
0.0%
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
$
$
121,431,345
$
107,079,569
13.4%
$
987,754,946
$
986,105,494
0.2%
(210,855) $
215
(223,222)
1300.0%
-5.5%
City of Palm Desert
Redevelopment Project Area # 1 - Amended
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
Less B Inv. Value
2014
$
1,541,217,133
3,162,274,409
2,716,205
2013
$
1,498,607,642
2,993,556,770
2,686,088
2012
$
1,485,119,173
2,972,294,294
2,902,053
0
(103,135,553)
0
(93,807,367)
0
(92,647,477)
(26,742,256)
(27,231,015)
(28,318,713)
4,576,329,938
4,373,812,118
2011
$
1,520,035,284
3,064,294,006
3,304,016
2010
$
0
(89,778,462)
(29,088,641)
4,339,349,330
1,556,322,273
3,138,650,280
2,462,676
0
(86,825,212)
(29,699,188)
4,468,766,203
4,580,910,829
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
0
32,637,340
53,241,720
(8,199,594)
0
266,702
20,144,944
50,154,674
(8,269,749)
7,000
547
30,038,023
56,942,231
(4,784,840)
28,000
262,619
31,662,152
64,035,933
0
(3,119,713)
623
33,207,261
59,544,019
0
77,679,466
62,303,571
82,223,961
92,840,991
84,876,977
$
4,654,009,404
$
4,436,115,689
2009
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
Less B Inv. Value
$
2008
$
1,548,363,317
3,098,549,660
4,850,231
0
(86,439,305)
(30,414,878)
0
$
4,421,573,291
$
2007
$
0
(84,042,297)
(30,606,235)
0
4,750,608,897
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
1,646,837,956
3,216,329,372
4,295,752
$
1,404,883,142
2,848,708,294
5,159,912
$
2006
$
0
(71,117,424)
(30,941,142)
0
4,537,114,676
4,561,607,194
(7,874,926)
1,221,817,819
2,548,978,946
5,081,062
2005
$
0
(75,212,626)
(30,902,546)
0
4,156,692,782
4,665,787,806
1,099,974,404
2,322,285,503
4,080,748
0
(72,356,678)
(31,114,156)
0
3,669,762,655
3,322,869,821
56,456
37,501,662
67,485,677
0
(11,366,822)
714
36,438,840
62,971,014
0
(7,990,591)
781
38,277,529
57,326,123
0
(3,164,410)
0
33,710,842
51,779,049
0
(6,306,859)
1,449
33,165,394
53,234,502
0
(6,430,836)
93,676,973
91,419,977
92,440,023
79,183,032
79,970,509
4,844,285,870
$
4,628,534,653
216
$
4,249,132,805
$
3,748,945,687
$
3,402,840,330
City of Palm Desert
Change in Taxable Value
Redevelopment Project Area # 1 - Amended
2014 versus 2013
FY
2014
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
$
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
2013
% Change
$
1,541,217,133
$
1,498,607,642
2.8%
$
3,162,274,409
$
2,993,556,770
5.6%
$
2,716,205
$
2,686,088
1.1%
$
0
$
0
0.0%
$
(103,135,553) $
(93,807,367)
9.9%
$
(26,742,256) $
(27,231,015)
-1.8%
4,576,329,938
$
4,373,812,118
4.6%
$
0
$
266,702
0.0%
$
32,637,340
$
20,144,944
62.0%
$
53,241,720
$
50,154,674
6.2%
$
(8,199,594) $
(8,269,749)
-0.8%
$
0
$
7,000
$
77,679,466
$
62,303,571
24.7%
$
4,654,009,404
$
4,436,115,689
4.9%
217
-100.0%
City of Palm Desert
Redevelopment Project Area # 2
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty (2)
Less Other Exempt
Less B Inv. Value
2014
$
2013
395,513,442 $
999,188,490
1,753,772
0
(4,985,384)
(3,733,800)
1,387,736,520
2012
2011
2010
403,779,647 $
1,012,458,943
2,127,081
0
(11,014,472)
(3,662,400)
404,539,856 $
1,031,878,423
580,087
0
(11,276,866)
(3,697,400)
516,275,626 $
1,075,692,278
2,702,362
0
(10,401,200)
(3,750,600)
566,073,734
1,268,066,132
670,711
0
(8,919,361)
(3,673,600)
1,403,688,799
1,422,024,100
1,580,518,466
1,822,217,616
Unsecured:
Land
Improvements
Personal Property
Penalty
0
15,098,894
28,706,626
(20,639)
7,777
11,308,677
26,904,564
(20,089)
4,719
18,513,172
38,744,588
0
0
9,474,802
28,314,673
0
0
14,071,375
34,842,003
0
43,784,881
38,200,929
57,262,479
37,789,475
48,913,378
$
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty (2)
Less Other Exempt
Less B Inv. Value
1,431,521,401
$
2009
1,441,889,728
$
2008
1,479,286,579
$
2007
1,618,307,941
$
2006
1,871,130,994
2005
633,335,921 $
1,367,855,491
866,004
0
(7,964,045)
(3,724,000)
0
587,058,715 $
1,276,315,674
590,836
0
(9,550,463)
(3,735,200)
0
521,340,003 $
1,137,488,315
6,592,802
0
(7,655,384)
(3,752,000)
0
414,088,670 $
1,043,768,419
6,930,907
0
(3,292,024)
(3,752,000)
0
1,990,369,371
1,850,679,562
1,654,013,736
1,457,743,972
1,343,719,182
Unsecured:
Land
Improvements
Personal Property
Penalty
2,542
18,201,638
29,865,376
0
0
5,343,621
20,391,298
0
0
6,215,099
19,806,418
0
0
4,187,472
12,129,847
0
0
3,853,947
13,891,105
0
48,069,556
25,734,919
26,021,517
16,317,319
17,745,052
$
$
2,038,438,927
$
218
1,876,414,481
$
1,680,035,253
$
1,474,061,291
$
377,500,739
964,730,831
8,309,969
0
(3,133,357)
(3,689,000)
0
1,361,464,234
City of Palm Desert
Change in Taxable Value
2014 versus 2013
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
Less B Inv. Value
2014
395,513,442
$
403,779,647
-2.0%
$
999,188,490
$
1,012,458,943
-1.3%
$
1,753,772
$
2,127,081
-17.6%
$
0
$
0
0.0%
$
(4,985,384) $
(11,014,472)
-54.7%
$
(3,733,800) $
(3,662,400)
1.9%
$
0
$
1,387,736,520
0
0.0%
1,403,688,799
-1.1%
$
0
$
7,777
$
15,098,894
$
11,308,677
33.5%
$
28,706,626
$
26,904,564
6.7%
$
% Change
$
Unsecured:
Land
Improvements
Personal Property
Penalty
2013
(20,639) $
43,784,881
$
1,431,521,401
219
$
(20,089)
-100.0%
2.7%
38,200,929
14.6%
1,441,889,728
-0.7%
City of Palm Desert
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
$
2014
2013
2012
2011
2010
121,112,327 $
376,571,063
3,866,036
0
(22,949,942)
(2,009,000)
117,624,411 $
367,800,719
3,626,212
0
(22,250,710)
(2,041,200)
119,303,599 $
379,322,839
3,461,707
0
(19,890,920)
(2,170,000)
123,088,378 $
392,221,646
3,523,812
0
(20,749,611)
(2,303,000)
125,790,120
424,745,043
5,011,721
0
(20,847,823)
(2,371,600)
476,590,484
464,759,432
480,027,225
495,781,225
532,327,461
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
0
15,830,833
27,963,384
0
(683,569)
0
7,241,041
31,467,777
0
(721,058)
0
7,844,983
45,527,343
0
(753,726)
0
8,768,007
70,315,349
0
(419,433)
0
14,220,568
54,874,036
0
(534,431)
43,110,648
37,987,760
52,618,600
78,663,923
68,560,173
$
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
$
519,701,132
$
502,747,192
$
532,645,825
$
574,445,148
$
600,887,634
2009
2008
2007
2006
2005
134,147,217 $
418,977,238
3,308,454
0
(20,782,445)
(2,331,000)
119,422,958 $
375,240,496
3,629,771
0
(19,251,214)
(2,203,600)
114,253,170 $
333,347,161
3,893,071
0
(19,311,510)
(2,206,400)
103,496,559 $
298,197,384
3,890,560
0
(20,251,190)
(2,046,800)
91,523,675
243,139,587
3,152,374
0
(19,430,222)
(1,974,000)
533,319,464
476,838,411
429,975,492
383,286,513
316,411,414
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
0
18,796,505
45,622,109
0
(549,632)
0
17,795,034
45,542,975
0
(402,531)
0
13,109,332
44,899,884
0
(437,726)
370
12,424,085
38,091,911
0
(434,582)
2,138
9,635,015
35,730,772
0
(455,101)
63,868,982
62,935,478
57,571,490
50,081,784
44,912,824
$
597,188,446
$
220
539,773,889
$
487,546,982
$
433,368,297
$
361,324,238
City of Palm Desert
2014 versus 2013
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
2014
121,112,327
$
117,624,411
3.0%
$
376,571,063
$
367,800,719
2.4%
$
3,866,036
$
3,626,212
6.6%
$
0
$
0
0.0%
$
(22,949,942) $
(22,250,710)
3.1%
$
(2,009,000) $
(2,041,200)
-1.6%
476,590,484
464,759,432
2.5%
$
0
$
0
$
15,830,833
$
7,241,041
118.6%
$
27,963,384
$
31,467,777
-11.1%
$
0
$
0
$
% Change
$
Unsecured:
Land
Improvements
Personal Property
Penalty
Less Other Exempt
2013
(683,569) $
43,110,648
$
519,701,132
221
$
(721,058)
0.0%
0.0%
-5.2%
37,987,760
13.5%
502,747,192
3.4%
City of Palm Desert
FY
2013
2012
527,295,299 $
1,223,955,322
3,546,358
0
(3,893,679)
(13,491,800)
505,988,799 $
1,179,416,036
3,507,587
0
(3,542,096)
(13,911,800)
506,713,567 $
1,199,159,939
3,132,280
0
(3,098,791)
(14,345,800)
535,851,149 $
1,239,148,331
3,145,190
0
(3,156,884)
(14,840,000)
571,851,472
1,299,807,730
3,272,357
0
(3,073,279)
(14,991,200)
1,737,411,500
1,671,458,526
1,691,561,195
1,760,147,786
1,856,867,080
Unsecured:
Land
Improvements
Personal Property
Penalty (2)
0
1,037,216
4,670,967
0
26,524
803,594
2,594,779
0
34,446
948,280
2,347,964
0
0
971,923
3,219,710
0
0
1,383,594
6,284,727
0
5,708,183
3,424,897
3,330,690
4,191,633
7,668,321
Secured: (1)
Land
Improvements
Personal Property
Penalty (2)
Less Other Exempt
Less B Inv. Value
2014
$
$
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty (2)
Less Other Exempt
Less B Inv. Value
Unsecured:
Land
Improvements
Personal Property
Penalty (2)
$
2009
$
1,743,119,683
$
1,674,883,423
$
1,694,891,885
2011
$
1,764,339,419
2010
$
2008
2007
612,342,380 $
1,338,202,248
3,221,691
0
(3,034,308)
(15,250,200)
589,549,492 $
1,340,102,309
4,306,781
0
(3,046,149)
(15,577,800)
538,079,392 $
1,253,230,590
895,558
0
(2,814,993)
(15,797,600)
480,264,736 $
1,145,343,698
1,037,306
0
(2,988,924)
(15,874,600)
423,136,913
1,060,291,261
1,039,548
0
(2,213,136)
(16,083,200)
1,935,481,811
1,915,334,633
1,773,592,947
1,607,782,216
1,466,171,386
0
1,404,311
6,296,641
0
0
1,372,786
6,712,170
0
0
1,581,231
7,973,923
0
0
1,606,970
10,276,814
0
0
2,043,627
4,639,732
0
7,700,952
8,084,956
9,555,154
11,883,784
6,683,359
1,943,182,763
$
222
1,923,419,589
$
1,783,148,101
2006
1,864,535,401
$
1,619,666,000
2005
$
1,472,854,745
City of Palm Desert
2014 versus 2013
FY
Secured: (1)
Land
Improvements
Personal Property
Penalty
Less Other Exempt
Less B Inv. Value
2014
527,295,299
$
505,988,799
4.2%
$
1,223,955,322
$
1,179,416,036
3.8%
$
3,546,358
$
3,507,587
1.1%
$
0
$
0
0.0%
$
(3,893,679) $
(3,542,096)
9.9%
$
(13,491,800) $
(13,911,800)
-3.0%
$
0
$
1,737,411,500
0
0.0%
1,671,458,526
3.9%
$
0
$
26,524
-100.0%
$
1,037,216
$
803,594
29.1%
$
4,670,967
$
2,594,779
80.0%
$
0
$
0
0.0%
% Change
$
Unsecured:
Land
Improvements
Personal Property
Penalty
2013
5,708,183
$
1,743,119,683
223
$
3,424,897
66.7%
1,674,883,423
4.1%
224

COMPREHENSIVE ANNUAL FINANCIAL

Transcription

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